Document:

Amendment No. 1 to Revolving Credit Agreement.

 Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the
information subject to the confidentiality request. Omissions are designated as [***]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission. 

EXHIBIT 10.1 

AMENDMENT NO. 1 TO REVOLVING CREDIT AGREEMENT 

THIS AMENDMENT NO. 1 TO REVOLVING CREDIT AGREEMENT dated as of July 1, 2009 (this “Amendment”) is
made among WATSCO, INC., a Florida corporation (the “Borrower”), each of the Subsidiary Loan Parties (as defined in the Credit Agreement described below), BANK OF AMERICA, N.A. (“Bank of
America”), in its capacity as administrative agent for the Lenders (in such capacity, the “Administrative Agent”), and each of the Lenders signatory hereto. Capitalized terms used but not otherwise defined herein
have the respective meanings ascribed to them in the Credit Agreement (as defined in Recital A below). 
 RECITALS:

 A. The Borrower, Bank of America, as Administrative Agent, Swingline Lender and Issuing Bank, and the Lenders party
thereto have entered into a Revolving Credit Agreement, dated as of August 3, 2007 (as in effect on the date hereof, the “Credit Agreement”), pursuant to which the Lenders have made available to the Borrower a revolving
credit facility with a swing line sublimit and a letter of credit sublimit. 
 B. The Borrower has advised the Administrative
Agent that it intends to acquire, either directly or indirectly, (such transaction, the “Carrier Enterprise Acquisition”) a sixty percent (60%) interest in Carrier Sales and Distribution, LLC, a Delaware limited
liability company to be renamed “Carrier Enterprise, LLC” (“Carrier Enterprise”), and in connection therewith intends to contribute substantially all of the assets and liabilities of Comfort Products Distributing
LLC, a Delaware limited liability company, having a book value as of December 31, 2008 of approximately $33,400,000, pursuant to a Purchase and Contribution Agreement (the “Purchase and Contribution Agreement”), dated as
of May 3, 2009 between the Borrower and Carrier Corporation, a Delaware corporation (“Carrier”), with such contribution to be effected in accordance with the terms set forth in Section 1.03 of the Purchase
and Contribution Agreement, and, to fulfill the conditions to the consummation of the transactions contemplated by the Purchase and Contribution Agreement, has requested, among other things, that Carrier Enterprise be exempted from the Events of
Default contained in the Credit Agreement, the requirement to become a Subsidiary Loan Party under the Credit Agreement and from compliance with certain other covenants contained in the Credit Agreement and applicable to Subsidiaries of the
Borrower. 
 C. The Borrower delivered to the Administrative Agent on or prior to May 4, 2009, pursuant to (i) a
certificate signed by a Responsible Officer of the Borrower attaching true and complete copies of (a) previously provided historical pro forma consolidated financial statements of the Borrower and its Subsidiaries giving effect to the Carrier
Enterprise Acquisition as of and for the fiscal year ended December 31, 2008 (the “FYE 08 Pro Formas”), (b) previously provided projections giving effect to the Carrier Enterprise Acquisition as of and for the
fiscal years ending December 31, 2009, December 31, 2010 and December 31, 2011 (the “Projections”), and (c) the financial statements with respect to Carrier Enterprise contained in
Section 3.08 of the Seller Disclosure Letter (as defined in the Purchase and Contribution Agreement), it being understood and agreed that such FYE 08 Pro Formas, Projections and financial statements are, in each case, deemed to be in
form and substance acceptable to the Administrative Agent and the Required Lenders, and (ii) a certificate signed by a Responsible Officer of the Borrower attaching true and complete copies of (a) the Purchase and Contribution Agreement;
(b) the form of Operating Agreement (Amended and Restated) of Carrier Enterprise, attached as an Exhibit to the Purchase and Contribution Agreement; (c) the form of Distributor Agreement, between Carrier and Carrier Enterprise, attached as
an Exhibit to the Purchase and Contribution Agreement, and (d) the form of Shareholder Agreement, between Carrier and the Borrower, attached as an Exhibit to the Purchase and Contribution Agreement (the documents in clauses
(b) through (d) collectively referred to herein as the “Other Carrier Enterprise Acquisition Documents”, and together with the Purchase and Contribution Agreement, collectively, the “Carrier
Enterprise Acquisition Documents”), it being understood and agreed that the Purchase and Contribution Agreement and the Other Carrier Enterprise Acquisition Documents so delivered to the Administrative Agent are, in each case, deemed to
be in form and substance acceptable to the Administrative Agent and the Required Lenders. 

 D. The Administrative Agent and the Lenders signatory hereto are willing to grant the
Borrower’s request and effect the amendments to the Credit Agreement contained in the Amended Credit Agreement (as defined in Section 1 hereof) on the terms and conditions contained in this Amendment. 

In consideration of the premises and further valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows: 
 1. Amendments to the Credit Agreement. Subject to the terms and conditions set forth
herein, the Credit Agreement is hereby amended such that, after giving effect to all such amendments, it shall read in its entirety as attached hereto as Exhibit A. The Credit Agreement, as so amended, is referred to herein as the
“Amended Credit Agreement”. 
 2. Effectiveness; Conditions Precedent to Amendment. The
effectiveness of the Amendment and the amendments to the Credit Agreement herein provided are subject to the satisfaction of the following conditions precedent (the first date all such conditions have been satisfied, the “First Amendment
Effective Date”): 
  

	 	(a)	the Administrative Agent shall have received counterparts of this Amendment, duly executed by the Borrower, each of the Subsidiary Loan Parties, the Administrative
Agent, and the Required Lenders; 

  

	 	(b)	the Administrative Agent shall have received each of the following in form and substance reasonably acceptable to it: 

 

	 	(i)	(A) a Pledge Agreement substantially in the form attached hereto as Exhibit B, duly executed by the Borrower and/or each Subsidiary that acquires any interest in
Carrier Enterprise in connection with the Carrier Enterprise Acquisition, sufficient in number for distribution to the Administrative Agent, each Lender and the Borrower, and (B) all certificates evidencing Pledged Interests (as defined in the
Pledge Agreement), accompanied in each case by duly executed stock powers (or other appropriate transfer documents) in blank affixed thereto; 

  

	 	(ii)	if a Subsidiary of the Borrower that is not a Subsidiary Loan Party as of the date of the Carrier Enterprise Acquisition acquires an interest in Carrier Enterprise on
the First Amendment Effective Date, each of the documents required by Section 5.10(a) of the Amended Credit Agreement to cause such Subsidiary to become a Subsidiary Loan Party; 

 

 2 

	 	(iii)	a certificate signed by a Responsible Officer of the Borrower attaching true and complete copies of each of the Carrier Enterprise Acquisition Documents and certifying
that: (A) neither the Purchase and Contribution Agreement (including any condition to the consummation of the Carrier Enterprise Acquisition) nor any of the Other Carrier Enterprise Acquisition Documents has been altered, amended, waived or
otherwise changed or supplemented from the applicable form thereof delivered to the Administrative Agent as indicated in Recital C above, in a manner that, in the aggregate, is materially adverse to the Lenders in their capacities as lenders,
except to the extent agreed to by prior written consent of the Administrative Agent and the Required Lenders; and (B) the Carrier Enterprise Acquisition is being consummated substantially simultaneously with the First Amendment Effective Date,
in accordance with the terms of the Purchase and Contribution Agreement and any such other material agreements, instruments, and documents relating to the Carrier Enterprise Acquisition (only as altered, amended, waived or otherwise changed or
supplemented in compliance with subpart (A) of this clause (iii)), including, to the extent required by the Purchase and Contribution Agreement, in compliance with applicable Laws and regulatory approvals;

  

	 	(iv)	pro forma historical consolidated financial statements of the Borrower and its Subsidiaries giving effect to the Carrier Enterprise Acquisition as of and for the
twelve-month period most recently ended prior to the consummation of the Carrier Enterprise Acquisition for which results are available (the “Closing Date Pro Formas”), which pro forma historical consolidated financial
statements reflect aggregate results (after giving effect to the Carrier Enterprise Acquisition) that do not materially differ from those contained in the historical FYE 08 Pro Formas and the Projections, as applicable, or otherwise satisfactory to
the Administrative Agent and the Required Lenders; provided, it is understood that the Closing Date Pro Formas will exclude certain portions of the historic Carrier Enterprise business that had been included in the Pro Formas and the
Projections because those excluded portions are not included in the Carrier Enterprise Acquisition; 

  

	 	(v)	a certificate signed by a Responsible Officer of the Borrower certifying that the Carrier Enterprise Acquisition shall be consummated for a purchase consideration of
not more than approximately $270,000,000, subject to adjustment as provided in the Purchase and Contribution Agreement (only as altered, amended, waived or otherwise changed or supplemented in compliance with subpart (A) of
Section 2(b)(iii) hereof), consisting of between 3,000,000 and 4,500,000 million shares of capital stock of the Borrower, the contribution of the assets of Comfort Products Distributing LLC to, and the assumption of liabilities of
Comfort Products Distributing LLC by, Carrier Enterprise, and the remainder in cash; 

  

	 	(vi)	a written opinion of Moore & Van Allen PLLC, counsel the to Loan Parties, addressed to the Administrative Agent and each of the Lenders, in the form attached
hereto as Exhibit C; 

  

	 	(vii)	such other customary certificates, instruments and documents as the Administrative Agent may reasonably request; 

 

	 	(c)	the First Amendment Effective Date shall have occurred on or prior to March 1, 2010, it being understood that this Amendment shall be effective, if at all, only if
the Carrier Enterprise Acquisition shall have occurred on or before such date; and 

  

 3 

	 	(d)	by not later than August 3, 2009 (but subject in all respects to the proviso to this Section 2(d) and the final sentence hereof), the Borrower shall
have paid to the Administrative Agent for the benefit of each Lender that has delivered its executed signature page to this Amendment to the Administrative Agent on or before 5:00 p.m. May 4, 2009 a fee in an amount equal to 1.50% times such
Lender’s Commitment, which fee shall be fully earned and due on such payment date and shall be nonrefundable; provided, notwithstanding the foregoing, no Lender shall be eligible for the payment of such fee (and such fee shall not be
earned, due or payable) unless (i) such Lender has authorized the release of its respective signature page (without condition other than the payment of such fee) prior to the earlier of August 3, 2009 and the First Amendment Effective Date
and (ii) Lenders constituting Required Lenders have authorized such release described in clause (i) above. For the purposes of clarification, if the Borrower does not consummate the Carrier Enterprise Acquisition, it shall not be
obligated to pay the fees referred to in this Section 2(d); and 

  

	 	(e)	all fees and expenses of the Administrative Agent (including any outstanding fees and expenses of counsel to the Administrative Agent to the extent invoiced prior to
the First Amendment Effective Date) estimated to date in connection with this Amendment to the extent not previously paid shall have been paid in full (without prejudice to final settling of accounts for such fees and expenses).

 For the avoidance of doubt, the conditions to any credit extension under the Credit Agreement on the First Amendment Effective
Date for the purpose of consummating the Carrier Enterprise Acquisition shall be as set forth in the Amended Credit Agreement; provided that all conditions set forth in this Section 2 have been satisfied other than those to result
from the funding of any such credit extension. 
 3. Consent and Confirmation of the Subsidiary Loan Parties. Each of the
Subsidiary Loan Parties hereby consents, acknowledges and agrees to the amendments set forth herein and hereby confirms and ratifies in all respects the Subsidiary Guarantee Agreement (including without limitation the continuation of each such
Subsidiary Loan Party’s payment and performance obligations thereunder upon and after the effectiveness of this Amendment and the amendments contemplated hereby) and the enforceability of the Subsidiary Guarantee Agreement against each
Subsidiary Loan Party in accordance with its terms. 
 4. Representations and Warranties. In order to induce the
Administrative Agent and the Lenders to enter into this Amendment, the Borrower represents and warrants to the Administrative Agent and the Lenders as follows: 
  

	 	(a)	The representations and warranties of the Borrower contained in the Amended Credit Agreement and in the other Loan Documents are true and correct on and as of the date
hereof, except (i) to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct as of such earlier date and except that the representations and warranties contained in
Sections 4.4(a) and (b) of the Amended Credit Agreement shall be deemed to refer to the most recent statements furnished pursuant to Sections 5.1(a) and (b), respectively, of the Amended Credit Agreement. and
(ii) for the purposes of the representation and warranty contained in Section 4.4(c) of the Amended Credit Agreement, “the Borrower and its Subsidiaries” shall not include Carrier Enterprise. 

 

	 	(b)	The Persons appearing as Subsidiary Loan Parties on the signature pages to this Amendment constitute all Persons who are required to be Subsidiary Loan Parties pursuant
to the terms of the Credit Agreement and the other Loan Documents, including without limitation all Persons who became Subsidiaries or were otherwise required to become Subsidiary Loan Parties after the Closing Date, and each of such Persons has
become and remains a party to a Subsidiary Guarantee Agreement as a Subsidiary Loan Party. 

  

 4 

	 	(c)	This Amendment has been duly authorized, executed and delivered by, and constitutes a legal, valid and binding obligation of, the Borrower and each Subsidiary Loan
Party, except as may be limited by general principles of equity or by the effect of any applicable bankruptcy, insolvency, reorganization, moratorium or similar law affecting creditors’ rights generally. 

 

	 	(d)	No Default or Event of Default has occurred and is continuing. 

5. Entire Agreement. This Amendment, together with the Loan Documents (collectively, the “Relevant
Documents”), sets forth the entire understanding and agreement of the parties hereto in relation to the subject matter hereof and supersedes any prior negotiations and agreements among the parties relating to such subject matter. No
promise, condition, representation or warranty, express or implied, not set forth in the Relevant Documents shall bind any party hereto, and no such party has relied on any such promise, condition, representation or warranty. Each of the parties
hereto acknowledges that, except as otherwise expressly stated in the Relevant Documents, no representations, warranties or commitments, express or implied, have been made by any party to the other in relation to the subject matter hereof or
thereof. None of the terms or conditions of this Amendment may be changed, modified, waived or canceled orally or otherwise, except in writing and in accordance with Section 10.2 of the Credit Agreement. 

6. Full Force and Effect of Amendment. Except as hereby specifically amended, modified or supplemented, the Credit Agreement and
all other Loan Documents are hereby confirmed and ratified in all respects and shall be and remain in full force and effect according to their respective terms. 

7. Counterparts. This Amendment may be executed in any number of counterparts, each of which shall be deemed an original as
against any party whose signature appears thereon, and all of which shall together constitute one and the same instrument. Delivery of an executed counterpart of a signature page of this Amendment by telecopy, facsimile or other electronic
transmission (including .PDF) shall be effective as delivery of a manually executed counterpart of this Amendment. 
 8.
Governing Law. This Amendment shall in all respects be governed by, and construed in accordance with, the laws of the State of North Carolina. 

9. Enforceability. Should any one or more of the provisions of this Amendment be determined to be illegal or unenforceable as to
one or more of the parties hereto, all other provisions nevertheless shall remain effective and binding on the parties hereto. 

10. References. All references in any of the Loan Documents to the “Credit Agreement” shall mean the Credit Agreement,
as amended hereby. 
 11. Successors and Assigns. This Amendment shall be binding upon and inure to the benefit of the
Borrower, the Subsidiary Loan Parties, the Administrative Agent, the Lenders and their respective successors and assignees to the extent such assignees are permitted assignees as provided in Section 10.4 of the Credit Agreement.

 [Signature pages follow.] 
  

 5 

 IN WITNESS WHEREOF, the parties hereto have caused this instrument to be made,
executed and delivered by their duly authorized officers as of the day and year first above written. 
  

			
	BORROWER:
	
	WATSCO, INC.
		
	By:	 	 /s/ Ana M. Menendez

	Name:	 	Ana M. Menendez
	Title:	 	Treasurer and Chief Financial Officer

			
	SUBSIDIARY LOAN PARTIES:
	
	AIR SYSTEMS DISTRIBUTORS LLC
	TRADEWINDS FLIGHT SERVICES LLC
	ATLANTIC SERVICE & SUPPLY LLC
	BAKER DISTRIBUTING COMPANY LLC
	COMFORT SUPPLY, INC.
	COMFORT PRODUCTS DISTRIBUTING LLC
	EAST COAST METAL DISTRIBUTORS LLC
	GEMAIRE DISTRIBUTORS LLC
	HBA DISTRIBUTORS LLC
	HEAT INCORPORATED LLC
	HEATING & COOLING SUPPLY LLC
	HOMANS ASSOCIATES LLC
	THE FLORIDA AD COMPANY
	THREE STATES SUPPLY COMPANY LLC
	TRADEWINDS DISTRIBUTING COMPANY LLC
	WATSCO HOLDINGS, INC.
	WATSCO INVESTMENTS LLC
	NSI SUPPLY, INC.
	ACR SUPPLY, LLC
	FLORIDA COOLING SUPPLY, INC.
	CONTRACTORS HEATING & SUPPLY, LLC
	ACH SUPPLY LLC (f/k/a West Coast HVAC Supply, Inc.)
	WATSCO HOLDINGS II, INC.
		
	By:	 	 /s/ Ana M. Menendez

	Name:	 	Ana M. Menendez
	Title:	 	Vice President
	
	COOL HOLDINGS LLC
		
	By:	 	 /s/ Ana M. Menendez

	Name:	 	Ana M. Menendez
	Title:	 	Treasurer

  

			
	BANK OF AMERICA, N.A., as Administrative Agent
		
	By:	 	 /s/ Anne M. Zeschke

	Name:	 	 Anne M. Zeschke

	Title:	 	 Vice President

 

			
	 BANK OF AMERICA, N.A., as Issuing Bank, Swing

Line Lender and as a Lender

		
	By:	 	 /s/ Julia Rocawich

	Name:	 	 Julia Rocawich

	Title:	 	 Senior Vice President

			
	JPMORGAN CHASE BANK, N.A.
		
	By:	 	 /s/ Robert P. Carswell

	Name:	 	 Robert P. Carswell

	Title:	 	 Vice President

			
	 WELLS FARGO BANK, NATIONAL

ASSOCIATION

		
	By:	 	 /s/ Don A. Byers

	Name:	 	 Don A. Byers

	Title:	 	 Vice President

			
	SUNTRUST BANK
		
	By:	 	 /s/ Bradley J. Staples

	Name:	 	 Bradley J. Staples

	Title:	 	 Managing Director

			
	MIZUHO CORPORATE BANK (USA)
		
	By:	 	 /s/ Robert Gallagher

	Name:	 	 Robert Gallagher

	Title:	 	 Senior Vice President

			
	COMERICA BANK
		
	By:	 	 /s/ Gerald R. Finney, Jr.

	Name:	 	 Gerald R. Finney, Jr.

	Title:	 	 Vice President

			
	THE NORTHERN TRUST COMPANY
		
	By:	 	 /s/ Rick J. Gomez

	Name:	 	 Rick J. Gomez

	Title:	 	 Second Vice President

			
	U.S. BANK NATIONAL ASSOCIATION
		
	By:	 	 /s/ Christine L. Wagner

	Name:	 	 Christine L. Wagner

	Title:	 	 Vice President

 EXHIBIT A 

AMENDED CREDIT AGREEMENT 

See attached. 

 REVOLVING CREDIT AGREEMENT 

dated as of August 3, 2007 

as amended by 

Amendment No. 1 to Revolving Credit Agreement dated July 1, 2009 

among 

WATSCO, INC., 

as Borrower, 

THE LENDERS FROM TIME TO TIME PARTY HERETO, 

BANK OF AMERICA, N.A., 

as Administrative Agent, 

Swingline Lender and Issuing Bank, 

J.P. MORGAN SECURITIES, INC., 

as Syndication Agent, 

and 

MIZUHO CORPORATE BANK (USA), 

SUNTRUST BANK, 

WELLS FARGO BANK, NATIONAL ASSOCIATION, 

as Co-Documentation Agents 
  

 
 BANC OF AMERICA SECURITIES, LLC,

 as Sole Lead Arranger and Sole Book Manager 

 TABLE OF CONTENTS 

 

					
	 	  	 	  	Page
		
	 ARTICLE I        DEFINITIONS; CONSTRUCTION
	  	1
			
	 Section 1.1
	  	Definitions	  	1
			
	 Section 1.2
	  	Classifications of Loans and Borrowings	  	22
			
	 Section 1.3
	  	Accounting Terms and Determination	  	22
			
	 Section 1.4
	  	Accounting for Acquisitions and Divestures	  	22
			
	 Section 1.5
	  	Terms Generally	  	23
		
	 ARTICLE II        AMOUNT AND TERMS OF THE COMMITMENTS
	  	23
			
	 Section 2.1
	  	General Description of Facilities	  	23
			
	 Section 2.2
	  	Revolving Loans	  	23
			
	 Section 2.3
	  	Procedure for Revolving Borrowings	  	23
			
	 Section 2.4
	  	Swingline Loans	  	24
			
	 Section 2.5
	  	Procedure for Swingline Borrowing; Etc	  	24
			
	 Section 2.6
	  	Funding of Borrowings	  	26
			
	 Section 2.7
	  	Interest Elections	  	27
			
	 Section 2.8
	  	Optional Reduction and Termination of Commitments; Extension of Commitments; Increase of Aggregate Revolving Commitments; Additional Lenders	  	28
			
	 Section 2.9
	  	Repayment of Loans	  	29
			
	 Section 2.10
	  	Evidence of Indebtedness	  	29
			
	 Section 2.11
	  	Prepayments	  	30
			
	 Section 2.12
	  	Interest on Loans	  	30
			
	 Section 2.13
	  	Fees	  	31
			
	 Section 2.14
	  	Computation of Interest and Fees	  	32
			
	 Section 2.15
	  	Inability to Determine Interest Rates	  	32
			
	 Section 2.16
	  	Illegality	  	32
			
	 Section 2.17
	  	Increased Costs	  	33
			
	 Section 2.18
	  	Funding Indemnity	  	34
			
	 Section 2.19
	  	Taxes	  	34
			
	 Section 2.20
	  	Payments Generally; Pro Rata Treatment; Sharing of Set-offs	  	35
			
	 Section 2.21
	  	Mitigation of Obligations; Replacement of Lenders	  	36
			
	 Section 2.22
	  	Letters of Credit	  	37

  

 -i- 

 TABLE OF CONTENTS 

(continued) 
  

					
	 	  	 	  	Page
			
	 Section 2.23
	  	Extension of Scheduled Commitment Termination Date	  	42
		
	 ARTICLE III        CONDITIONS PRECEDENT TO LOANS AND LETTERS OF
CREDIT
	  	43
			
	 Section 3.1
	  	Conditions To Effectiveness	  	43
			
	 Section 3.2
	  	Each Credit Event	  	45
			
	 Section 3.3
	  	Delivery of Documents	  	45
		
	 ARTICLE IV        REPRESENTATIONS AND WARRANTIES
	  	45
			
	 Section 4.1
	  	Existence; Power	  	45
			
	 Section 4.2
	  	Organizational Power; Authorization	  	46
			
	 Section 4.3
	  	Governmental Approvals; No Conflicts	  	46
			
	 Section 4.4
	  	Financial Statements	  	46
			
	 Section 4.5
	  	Litigation and Environmental Matters	  	47
			
	 Section 4.6
	  	Compliance with Laws and Agreements	  	47
			
	 Section 4.7
	  	Investment Company Act, Etc	  	47
			
	 Section 4.8
	  	Taxes	  	47
			
	 Section 4.9
	  	Margin Regulations	  	47
			
	 Section 4.10
	  	ERISA	  	48
			
	 Section 4.11
	  	Ownership of Property	  	48
			
	 Section 4.12
	  	Disclosure	  	48
			
	 Section 4.13
	  	Labor Relations	  	48
			
	 Section 4.14
	  	Binding Effect	  	48
			
	 Section 4.15
	  	No Default	  	48
			
	 Section 4.16
	  	Solvency	  	49
			
	 Section 4.17
	  	Senior Debt	  	49
			
	 Section 4.18
	  	Principal Places of Business and Subsidiaries	  	49
			
	 Section 4.19
	  	Insurance	  	49
		
	 ARTICLE V        AFFIRMATIVE COVENANTS
	  	49
			
	 Section 5.1
	  	Financial Statements and Other Information	  	49
			
	 Section 5.2
	  	Notices of Material Events	  	51
			
	 Section 5.3
	  	Existence; Conduct of Business	  	52

  

 -ii- 

 TABLE OF CONTENTS 

(continued) 
  

					
	 	  	 	  	Page
			
	 Section 5.4
	  	Compliance with Laws, Etc	  	52
			
	 Section 5.5
	  	Payment of Obligations	  	52
			
	 Section 5.6
	  	Books and Records	  	52
			
	 Section 5.7
	  	Visitation, Inspection, Etc	  	52
			
	 Section 5.8
	  	Maintenance of Properties; Insurance	  	53
			
	 Section 5.9
	  	Use of Proceeds and Letters of Credit	  	53
			
	 Section 5.10
	  	Additional Subsidiaries	  	53
			
	 Section 5.11
	  	Environmental Laws	  	53
			
	 Section 5.12
	  	Gemaire Caribe	  	54
		
	 ARTICLE VI        FINANCIAL COVENANTS
	  	54
			
	 Section 6.1
	  	Leverage Ratio	  	54
			
	 Section 6.2
	  	Interest Coverage Ratio	  	54
		
	 ARTICLE VII        NEGATIVE COVENANTS
	  	54
			
	 Section 7.1
	  	Indebtedness	  	54
			
	 Section 7.2
	  	Negative Pledge	  	55
			
	 Section 7.3
	  	Fundamental Changes	  	56
			
	 Section 7.4
	  	Investments, Loans, Capital Expenditures, Etc	  	57
			
	 Section 7.5
	  	Restricted Payments	  	59
			
	 Section 7.6
	  	Sale of Assets	  	59
			
	 Section 7.7
	  	Transactions with Affiliates	  	60
			
	 Section 7.8
	  	Restrictive Agreements	  	60
			
	 Section 7.9
	  	Sale and Leaseback Transactions	  	61
			
	 Section 7.10
	  	Hedging Agreements	  	61
			
	 Section 7.11
	  	Amendment to Material Documents	  	61
			
	 Section 7.12
	  	Accounting Changes	  	61
			
	 Section 7.13
	  	[Reserved]	  	62
			
	 Section 7.14
	  	Use of Proceeds	  	62
			
	 Section 7.15
	  	Prepayments	  	62
			
	 Section 7.16
	  	Amendments to Material Indebtedness Agreements	  	62
		
	 ARTICLE VIII         EVENTS OF DEFAULT
	  	62

  

 -iii- 

 TABLE OF CONTENTS 

(continued) 
  

					
	 	  	 	  	Page
			
	 Section 8.1
	  	Events of Default	  	62
		
	 ARTICLE IX        THE ADMINISTRATIVE AGENT
	  	65
			
	 Section 9.1
	  	Appointment and Authority	  	65
			
	 Section 9.2
	  	Delegation of Duties	  	65
			
	 Section 9.3
	  	Non-Reliance on Administrative Agent and Other Lenders	  	65
			
	 Section 9.4
	  	Exculpatory Provisions	  	65
			
	 Section 9.5
	  	Reliance by Administrative Agent	  	66
			
	 Section 9.6
	  	The Administrative Agent in its Individual Capacity	  	67
			
	 Section 9.7
	  	Resignation of Administrative Agent	  	67
			
	 Section 9.8
	  	No Other Duties, etc	  	67
		
	 ARTICLE X        MISCELLANEOUS
	  	68
			
	 Section 10.1
	  	Notices; Electronic Communications	  	68
			
	 Section 10.2
	  	Waiver; Amendments	  	70
			
	 Section 10.3
	  	Expenses; Indemnification	  	71
			
	 Section 10.4
	  	Successors and Assigns	  	72
			
	 Section 10.5
	  	Governing Law; Jurisdiction; Consent to Service of Process	  	76
			
	 Section 10.6
	  	Waiver of Jury Trial	  	76
			
	 Section 10.7
	  	Right of Setoff	  	77
			
	 Section 10.8
	  	Counterparts; Effectiveness of Agreement; Integration	  	77
			
	 Section 10.9
	  	Survival	  	77
			
	 Section 10.10
	  	Severability	  	78
			
	 Section 10.11
	  	Confidentiality	  	78
			
	 Section 10.12
	  	Interest Rate Limitation	  	78
			
	 Section 10.13
	  	PATRIOT Act Notice	  	78
			
	 Section 10.14
	  	No Advisory or Fiduciary Responsibility	  	78
			
	 Section 10.15
	  	Defaulting Lenders	  	79
			
	 Section 10.16
	  	Treatment of Carrier Enterprise	  	81

  

 -iv- 

 TABLE OF CONTENTS 

(continued) 
  

							
	 	 	  	    	 	    	Page
		
	Schedules	    	
				
	 Schedule I
	 	-	    	Pricing Grid	    	
	 Schedule 2.22
	 	-	    	Existing Letters of Credit	    	
	 Schedule 4.5 (a)
	 	-	    	Pending Litigation	    	
	 Schedule 4.5 (b)
	 	-	    	Environmental Matters	    	
	 Schedule 4.18
	 	-	    	Principal Places of Business and Subsidiaries	    	
	 Schedule 7.1
	 	-	    	Outstanding Indebtedness	    	
	 Schedule 7.2
	 	-	    	Existing Liens	    	
	 Schedule 7.4
	 	-	    	Existing Investments	    	
	 Schedule 7.8
	 	-	    	Restrictive Agreements	    	
				
	Exhibits	 		    		    	
				
	 Exhibit A
	 	-	    	Revolving Credit Note	    	
	 Exhibit B
	 	-	    	Swingline Note	    	
	 Exhibit C
	 	-	    	Form of Assignment and Assumption	    	
	 Exhibit D
	 	-	    	Form of Subsidiary Guarantee Agreement	    	
	Annex I-D	 	-	    	To the Subsidiary Guarantee Agreement	    	
	 Exhibit E
	 	-	    	Form of Indemnity, Subrogation and Contribution Agreement	    	
	 Annex I-E
	 	-	    	To the Indemnity, Subrogation and Contribution Agreement	    	
	 Exhibit F
	 	-	    	Form of Pledge Agreement	    	
		 		    		    	
	Exhibit 2.3	 	-	    	Notice of Revolving Borrowing	    	
	 Exhibit 2.5
	 	-	    	Notice of Swingline Borrowing	    	
	 Exhibit 2.7
	 	-	    	Form of Continuation/Conversion	    	
	 Exhibit 3.1(b) (iv)
	 	-	    	Form of Secretary’s Certificate	    	
	 Exhibit 3.1(b) (vii)
	 	-	    	Form of Officer’s Certificate	    	
	 Exhibit 5.1(c)
	 	-	    	Form of Covenant Compliance Certificate	    	

  

 -v- 

 REVOLVING CREDIT AGREEMENT 

THIS REVOLVING CREDIT AGREEMENT (this “Agreement”) is made and entered into as of August 3, 2007, by
and among WATSCO, INC., a Florida corporation (the “Borrower”), the several banks and other financial institutions from time to time party hereto (the “Lenders”), and BANK OF AMERICA, N.A., a
national banking association, in its capacity as Administrative Agent for the Lenders (the “Administrative Agent”). 

W I T N E S S E T H: 

WHEREAS, the Borrower has requested that the Lenders establish a $300,000,000 senior revolving credit facility with a $25,000,000
swingline and a $50,000,000 letter of credit sub-facility thereunder for the Borrower; 
 WHEREAS, subject to the terms
and conditions of this Agreement, the Lenders severally, to the extent of their respective Commitments, are willing to establish the requested revolving credit facility for the Borrower. 

NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, the Borrower, the Lenders and the
Administrative Agent agree as follows: 
 ARTICLE I 

DEFINITIONS; CONSTRUCTION 

Section 1.1 Definitions. In addition to the other terms defined herein, the following terms used herein shall have the
meanings herein specified (to be equally applicable to both the singular and plural forms of the terms defined): 

“Act” shall mean the USA PATRIOT Act (Pub. L. No. 107-56, 115 Stat. 272 (2001)). 

“Additional Commitment Lender” shall have the meaning assigned to such term in Section 2.23.

 “Additional Lender” shall have the meaning assigned to such term in Section 2.8.

 “Additional Revolving Commitment Amount” shall have the meaning assigned to such term in
Section 2.8. 
 “Adjusted Consolidated EBIT” shall mean, with respect to any period,
Consolidated EBIT for such period, adjusted so as to exclude from such computation (a) the results of Carrier Enterprise and (b) any deduction from Consolidated Net Income for minority interests in Carrier Enterprise, as reflected on the
Borrower’s audited financial statements delivered pursuant to Section 5.1(a). 
 “Adjusted
Consolidated EBITDA” shall mean, with respect to any period, Consolidated EBITDA for such period, adjusted so as to exclude from such computation (a) the results of Carrier Enterprise and (b) any deduction from Consolidated
Net Income for minority interests in Carrier Enterprise, as reflected on the Borrower’s audited financial statements delivered pursuant to Section 5.1(a). 

 “Adjusted LIBO Rate” shall mean, with respect to each Interest
Period for a Eurodollar Borrowing, the rate per annum obtained by dividing (a) LIBOR for such Interest Period by (b) a percentage equal to 1.00 minus the Eurodollar Reserve Percentage. 

“Administrative Agent” shall have the meaning assigned to such term in the opening paragraph hereof. 

“Administrative Agent’s Office” shall mean the Administrative Agent’s address and, as appropriate,
account as set forth in Section 10.1, or such other address or account as the Administrative Agent may from time to time notify to the Borrower and the Lenders. 

“Administrative Questionnaire” shall mean, with respect to each Lender, an administrative questionnaire in the
form prepared by the Administrative Agent and submitted to the Administrative Agent duly completed by such Lender. 

“Affiliate” shall mean, as to any Person, any other Person that directly, or indirectly through one or more
intermediaries, Controls, is Controlled by, or is under common Control with, such Person; provided that for all purposes of this Agreement (other than Section 10.4), Carrier shall be deemed not to be an Affiliate of the Borrower or any of its
Subsidiaries. 
 “Aggregate Revolving Commitments” shall mean the sum of the Revolving Commitments of
all Lenders at any time outstanding. On the Closing Date, the Aggregate Revolving Commitments (including the Swingline Commitment) equal $300,000,000. 

“Amendment No. 1” shall mean Amendment No. 1 to this Agreement dated as of July 1, 2009, among the
Borrower, the Administrative Agent and the Lenders party thereto. 
 “Applicable Lending Office” shall
mean, for each Lender and for each Type of Loan, the “Lending Office” of such Lender (or an Affiliate of such Lender) designated for such Type of Loan in the Administrative Questionnaire submitted by such Lender or such other office of
such Lender (or an Affiliate of such Lender) as such Lender may from time to time specify to the Administrative Agent and the Borrower as the office by which its Loans of such Type are to be made and maintained. 

“Applicable Margin” shall mean, as of any date, with respect to all Eurodollar Borrowings and Base Rate
Borrowings outstanding on such date, the percentage per annum designated in the “Pricing Grid” attached hereto as Schedule I as applicable to Eurodollar Borrowings or Base Rate Borrowings, as the case may be, based on the
Borrower’s Leverage Ratio. The Applicable Margin for Eurodollar Borrowings shall initially be 0.5000% and the Applicable Margin for Base Rate Borrowings shall initially be 0.000%; provided, however, that upon delivery to the
Administrative Agent of the financial statements required by Section 5.1(a) or (b) and the Compliance Certificate required by Section 5.1(c) for the fiscal quarter ended September 30, 2007 and for each fiscal
quarter thereafter, the Applicable Margin shall be reset to the percentage designated in Schedule I based on the Borrower’s Leverage Ratio for the preceding four fiscal quarter period then ending, measured quarterly, such Applicable
Margin being effective as of the second Business Day following the date that the Administrative Agent receives such financial statements and certificate; provided further, however, that if at any time the Borrower shall have failed
timely to deliver such financial statements and Compliance Certificate, the Applicable Margin for Eurodollar Borrowings shall be 1.125% and the Applicable Margin for Base Rate Borrowings shall be 0.125% until such time as such financial statements
and Compliance Certificate are delivered, at which time the Applicable Margin shall be determined as provided above. 
  

 - 2 - 

 “Applicable Percentage” shall mean, as of any date, with respect to
the commitment fee, the percentage per annum designated in the “Pricing Grid” attached hereto as Schedule I based on the Borrower’s Leverage Ratio. The Applicable Percentage shall initially be 0.1000%; provided,
however, that upon delivery to the Administrative Agent of the financial statements required by Section 5.1(a) or (b) and the Compliance Certificate required by Section 5.1(c) for the fiscal quarter
September 30, 2007 and for each fiscal quarter thereafter, the Applicable Percentage shall be reset to the percentage designated in Schedule I based on the Borrower’s Leverage Ratio for the preceding four fiscal quarter period then
ending, measured quarterly, such Applicable Percentage being effective as of the second Business Day following the date that the Administrative Agent receives such financial statements and certificate; provided further, however,
that if at any time the Borrower shall have failed timely to deliver such financial statements and Compliance Certificate, the Applicable Percentage shall be 0.2000% until such time as such financial statements and Compliance Certificate are
delivered, at which time the Applicable Percentage shall be determined as provided above. 
 “Approved
Fund” means any Fund that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender. 

“Assignment and Assumption” shall mean an Assignment and Assumption entered into by a Lender and an assignee
(with the consent of any party whose consent is required by Section 10.4(b)) and accepted by the Administrative Agent, in the form of Exhibit C attached hereto or any other form approved by the Administrative Agent. 

“Availability Period” shall mean (a) in case of Revolving Borrowings, the period from the Closing Date to
the Commitment Termination Date, and (b) in case of Swingline Borrowings, the period from the Closing Date to the Swingline Termination Date. 

“Base Rate” shall mean the highest of (a) the per annum rate which the Administrative Agent publicly
announces from time to time to be its prime lending rate, as in effect from time to time, (b) the Federal Funds Rate, as in effect from time to time, plus one-half of one percent (0.50%), and (c) LIBOR plus 1.50%. The Administrative
Agent’s prime lending rate is a reference rate and does not necessarily represent the lowest or best rate charged to customers. The Administrative Agent may make commercial loans or other loans at rates of interest at, above or below the
Administrative Agent’s prime lending rate. Any change in the Base Rate due to a change in the “prime rate” or the Federal Funds Rate shall take effect at the opening of business on the day specified in the public announcement of such
change in the “prime rate” or the Federal Funds Rate, respectively. For the purposes of clause (c) above, LIBOR shall be determined daily in accordance with clause (b) of the definition thereof, and any change shall take
effect on the day of such change. 
 “Borrower” shall have the meaning assigned to such term in the
introductory paragraph hereof. 
 “Borrowing” shall mean a borrowing consisting of (a) Loans of the
same Class and Type, made, converted or continued on the same date and, in case of Eurodollar Loans, as to which a single Interest Period is in effect, or (b) a Swingline Loan. 

“Business Day” shall mean (a) any day other than a Saturday, Sunday or other day on which commercial banks
are authorized to close under the laws of, or are in fact closed in, the state where the Administrative Agent’s Office is located and (b) if such day relates to a Borrowing of, a payment or prepayment of principal or interest on, a
conversion of or into, or an Interest Period for, a Eurodollar Loan or a notice with respect to any of the foregoing, any day on which dealings in Dollars are carried on in the London interbank market. 

 

 - 3 - 

 “Capital Expenditures” shall mean for any period, without
duplication, (a) the additions to property, plant and equipment and other capital expenditures of the Borrower and its Subsidiaries that are (or would be) set forth on a consolidated statement of cash flows of the Borrower and its Subsidiaries
for such period prepared in accordance with GAAP and (b) Capital Lease Obligations incurred by the Borrower and its Subsidiaries during such period. 

“Capital Lease Obligations” of any Person shall mean all obligations of such Person to pay rent or other amounts
under any lease (or other arrangement conveying the right to use) real or personal property, or a combination thereof, which obligations are required to be classified and accounted for as capital leases on a balance sheet of such Person under GAAP,
and the amount of such obligations shall be the capitalized amount thereof determined in accordance with GAAP. 

“Capital Stock” shall mean (a) in the case of a corporation, capital stock, (b) in the case of an
association or business entity, any and all shares, interests, participations, rights or other equivalents (however designated) of capital stock, (c) in the case of a partnership, partnership interests (whether general or limited), (d) in
the case of a limited liability company, membership interests and (e) 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, the issuing Person.

 “Carrier” shall mean Carrier Corporation, a Delaware corporation. 

“Carrier Enterprise” shall mean (a) Carrier Enterprise, LLC, a Delaware limited liability company in which
the Borrower shall own, directly or indirectly, a 60% membership interest as of the First Amendment Effective Date and (b) all Subsidiaries of Carrier Enterprise, LLC. 

“Cash Collateralize” means to pledge and deposit with or deliver to the Administrative Agent, for the benefit of
the Issuing Bank or Swingline Lender (as applicable) and the Lenders, as collateral for LC Exposure, Swingline Loans, or obligations of Lenders to fund participations in respect of either thereof (as the context may require), cash or deposit account
balances pursuant to documentation in form and substance satisfactory to (a) the Administrative Agent and (b) the Issuing Bank or Swingline Lender (as applicable). “Cash Collateral” shall have a meaning correlative
to the foregoing. 
 “Change in Control” shall mean, at any time: 

 

	 	(a)	With respect to the Borrower, 

(i) any “person” or “group” (each as used in Sections 13(d)(3) and 14(d)(2) of the Securities Exchange
Act of 1934) other than Albert Nahmad, Alna Capital Associates or a trust or other entity controlled by either of them or one of their Affiliates (each an “Existing Control Group”) either (A) becomes the “beneficial
owner” (as defined in Rule 13d-3 of the Securities Exchange Act of 1934), directly or indirectly, of Voting Stock of the Borrower (or securities convertible into or exchangeable for such Voting Stock) representing twenty-five percent
(25%) or more of the combined voting power of all Voting Stock of the Borrower (on a fully diluted basis) or (B) otherwise has the ability, directly or indirectly, to elect a majority of the board of directors of the Borrower (provided,
that if an event described in this clause (i) shall occur solely by reason of the death of one or more members of the Existing Control Group, then a “Change of Control” shall not be deemed to have occurred so long as the Voting
Stock of the decedent is owned of record by the estate or immediate family of such decedent); 
  

 - 4 - 

 (ii) during any period of up to twenty-four (24) consecutive months,
commencing on the Closing Date, individuals who at the beginning of such twenty-four (24)-month period were directors of the Borrower shall cease for any reason (other than the death, disability or retirement of a director or of an officer of the
Borrower that is serving as a director at such time so long as another officer of the Borrower replaces such Person as a director) to constitute a majority of the board of directors of the Borrower; or 

(iii) any Person or two or more Persons acting in concert other than the Existing Control Group shall have acquired by
contract or otherwise, or shall have consummated a contract or arrangement that results in its or their acquisition of the power to exercise, directly or indirectly, a controlling influence on the management or policies of the Borrower; or

  

	 	(b)	with respect to any Major Subsidiary, 

(i) the Borrower shall cease to own, directly or indirectly, at least 100% of the Voting Stock of each currently existing
Major Subsidiary or any other Subsidiary that is or becomes a Major Subsidiary after the date hereof; or 
 (ii)
any Person or two or more Persons acting in concert other than the Borrower shall have acquired by contract or otherwise, or shall have consummated a contract or arrangement that results in its or their acquisition of the power to exercise, directly
or indirectly, a controlling influence on the management or policies of such Major Subsidiary. 
 “Change in
Law” shall mean (a) the adoption of any applicable law, rule or regulation after the date of this Agreement, (b) any change in any applicable law, rule or regulation, or any change in the interpretation or application thereof,
by any Governmental Authority after the date of this Agreement, or (c) compliance by any Lender (or its Applicable Lending Office) or the Issuing Bank (or for purposes of Section 2.17(b), by such Lender’s or the Issuing
Bank’s holding company, if applicable) with any request, guideline or directive (whether or not having the force of law) of any Governmental Authority made or issued after the date of this Agreement. 

“Class”, when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising
such Borrowing, are Revolving Loans or Swingline Loans and when used in reference to any Commitment, refers to whether such Commitment is a Revolving Commitment or a Swingline Commitment. 

“Closing Date” shall mean the date on which the conditions precedent set forth in Section 3.1 and
Section 3.2 have been satisfied or waived in accordance with Section 10.2. 

“Code” shall mean the Internal Revenue Code of 1986, as amended and in effect from time to time. 

“Commitment” shall mean a Revolving Commitment or a Swingline Commitment or any combination thereof (as the
context shall permit or require). 
 “Commitment Termination Date” shall mean the earliest of
(a) the Scheduled Commitment Termination Date (as the same may be extended by Section 2.23), (b) the date on which the Revolving Commitments are terminated pursuant to Section 2.8 or (c) the date on which all
amounts outstanding under this Agreement have been declared or have automatically become due and payable (whether by acceleration or otherwise); provided, however, that with respect to any Non-Extending Lender, the Commitment
Termination Date of such Non-Extending Lender’s Commitment shall be the Existing Scheduled Commitment Termination Date notwithstanding the extension of Commitments by any other Lender pursuant to Section 2.23. 

 

 - 5 - 

 “Compliance Certificate” shall have the meaning assigned to such
term in Section 5.1(c). 
 “Consolidated EBIT” shall mean, for the Borrower and its
Subsidiaries for any four-quarter period ending on the date of computation thereof, an amount equal to the sum of (a) Consolidated Net Income for such period plus (b) to the extent deducted in determining Consolidated Net Income for
such period, (i) Consolidated Interest Expense, (ii) income tax expense and (iii) plus losses (or minus gains) related to discontinued operations of Dunhill. 

“Consolidated EBITDA” shall mean, for the Borrower and its Subsidiaries for any four-quarter period ending on the
date of computation thereof, an amount equal to the sum of (a) Consolidated Net Income for such period plus (b) to the extent deducted in determining Consolidated Net Income for such period, (i) Consolidated Interest Expense,
(ii) income tax expense, (iii) depreciation and amortization (including non-cash, stock based compensation), and (iv) plus losses (or minus gains) related to discontinued operations of Dunhill. 

“Consolidated Interest Expense” shall mean, for the Borrower and its Subsidiaries (other than Carrier Enterprise)
for any period ending on the date of computation thereof, determined on a consolidated basis in accordance with GAAP, the sum of (a) total cash interest expense, including without limitation, the interest component of any payments in respect of
Capital Lease Obligations during such period (whether or not actually paid during such period), (b) interest expense with respect to any Guaranteed Carrier Debt, plus (c) the net amount payable (or minus the net amount
receivable) under Hedging Agreements during such period (whether or not actually paid or received during such period). 

“Consolidated Net Income” shall mean, for any period, the net income (or loss) of the Borrower and its
Subsidiaries for such period determined on a consolidated basis in accordance with GAAP, but excluding therefrom (to the extent otherwise included therein) (a) any extraordinary gains or losses, (b) any gains attributable to write-ups of
assets, (c) any equity interest of the Borrower or any Subsidiary in the unremitted earnings of any Person that is not a Subsidiary and (d) any income (or loss) of any Person accrued prior to the date it becomes a Subsidiary or is merged
into or consolidated with the Borrower or any Subsidiary on the date that such Person’s assets are acquired by the Borrower or any Subsidiary. 

“Consolidated Tangible Assets” shall mean, on any date of computation, Consolidated Total Assets minus intangible
assets of the Borrower and its Subsidiaries (excluding Carrier Enterprise) on that date. 
 “Consolidated Total
Assets” shall mean, for the Borrower and its Subsidiaries for any period ending on the date of computation thereof, determined on a consolidated basis in accordance with GAAP, the aggregate book value of the assets of the Borrower and
its Subsidiaries (excluding Carrier Enterprise) for such period. 
 “Consolidated Total Debt” shall
mean, as of any date of determination, without duplication, all Indebtedness of the Borrower and its Subsidiaries (other than as described in subsection (k) under the definition of “Indebtedness” herein), determined on a
consolidated basis in accordance with GAAP, including, but not limited to, all of the Obligations, but excluding Indebtedness of Carrier Enterprise other than Guaranteed Carrier Debt. For purposes of determining “Consolidated Total
Debt”, the principal amount of any Synthetic Lease Obligation shall be deemed to be the amount that would be reflected on the balance sheet of the Borrower and its Subsidiaries if such Synthetic Lease Obligation were characterized as a
capital lease rather than an operating lease. 
  

 - 6 - 

 “Consolidated Total Revenues” shall mean, for the Borrower and its
Subsidiaries for any period ending on the date of computation thereof, determined on a consolidated basis in accordance with GAAP, the total revenues of the Borrower and its Subsidiaries (excluding Carrier Enterprise) for such period. 

“Contractual Obligation” shall mean, as to any Person, any provision of any security issued by such Person or of
any agreement, instrument or other undertaking to which such Person is a party or by which it or any of its property is bound. 

“Control” shall mean the power, directly or indirectly, either to (a) vote five percent (5%) or more of
securities having ordinary voting power for the election of directors (or persons performing similar functions) of a Person or (b) direct or cause the direction of the management and policies of a Person, whether through the ability to exercise
voting power, by contract or otherwise. The terms “Controlling”, “Controlled by”, and “under common Control with” have meanings correlative thereto. 

“Default” shall mean any condition or event that, with the giving of notice or the lapse of time or both, would
constitute an Event of Default. 
 “Default Excess” has the meaning specified in
Section 10.15(b). 
 “Default Interest” shall have the meaning assigned to such term in
Section 2.12(c). 
 “Default Period” has the meaning specified in
Section 10.15(b). 
 “Defaulting Lender” has the meaning specified in
Section 10.15(b). 
 “Distress Event” has the meaning specified in
Section 10.15(b). 
 “Distressed Person” has the meaning specified in
Section 10.15(b). 
 “Dollar(s)” and the sign “$” shall mean lawful
money of the United States of America. 
 “Dunhill” shall mean Dunhill Staffing Systems, Inc., a
Delaware corporation and Dunhill Temporary Systems, Inc., a New York corporation. 
 “Eligible Assignee”
means any Person that meets the requirements to be an assignee under Section 10.4(b)(iii), (v) and (vi) (subject to such consents, if any, as may be required under Section 10.4(b)(iii)). 

“Environmental Laws” shall mean all laws, rules, regulations, codes, ordinances, orders, decrees, judgments,
injunctions, notices or binding agreements issued, promulgated or entered into by or with any Governmental Authority, relating in any way to the environment, preservation or reclamation of natural resources, the management, Release or threatened
Release of any Hazardous Material or to health and safety matters. 
 “Environmental Liability” shall
mean any liability, contingent or otherwise (including any liability for damages, costs of environmental investigation and remediation, costs of administrative oversight, fines, natural resource damages, penalties or indemnities), of the Borrower or
any Subsidiary directly or indirectly resulting from or based upon (a) any actual or alleged violation of any Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials,
(c) any actual or alleged exposure to any Hazardous Materials, (d) the Release or threatened Release of any Hazardous Materials or (e) any contract, agreement or other consensual arrangement pursuant to which liability is assumed or
imposed with respect to any of the foregoing. 
  

 - 7 - 

 “ERISA” shall mean the Employee Retirement Income Security Act of
1974, as amended from time to time, and any successor statute. 
 “ERISA Affiliate” shall mean any trade
or business (whether or not incorporated), which, together with the Borrower, is treated as a single employer under Section 414(b) or (c) of the Code or, solely for the purposes of Section 302 of ERISA and Section 412 of the
Code, is treated as a single employer under Section 414 of the Code. 
 “ERISA Event” shall mean
(a) any “reportable event”, as defined in Section 4043 of ERISA or the regulations issued thereunder with respect to a Plan (other than an event for which the 30-day notice period is waived); (b) the existence with respect
to any Plan of an “accumulated funding deficiency” (as defined in Section 412 of the Code or Section 302 of ERISA), whether or not waived; (c) the filing pursuant to Section 412(d) of the Code or Section 303(d) of
ERISA of an application for a waiver of the minimum funding standard with respect to any Plan; (d) the incurrence by the Borrower or any of its ERISA Affiliates of any liability under Title IV of ERISA with respect to the termination of any
Plan; (e) the receipt by the Borrower or any ERISA Affiliate from the PBGC or a plan administrator appointed by the PBGC of any notice relating to an intention to terminate any Plan or Plans or to appoint a trustee to administer any Plan;
(f) the incurrence by the Borrower or any of its ERISA Affiliates of any liability with respect to the withdrawal or partial withdrawal from any Plan or Multiemployer Plan; or (g) the receipt by the Borrower or any ERISA Affiliate of any
notice, or the receipt by any Multiemployer Plan from the Borrower or any ERISA Affiliate of any notice, concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected to be, insolvent or in
reorganization, within the meaning of Title IV of ERISA. 
 “Eurodollar” when used in reference to any
Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, bears interest at a rate determined by reference to the Adjusted LIBO Rate. 

“Eurodollar Reserve Percentage” shall mean the aggregate of the maximum reserve percentages
(including, without limitation, any emergency, supplemental, special or other marginal reserves) expressed as a decimal (rounded upwards to the next  1
/100th of 1%) in effect on any day to which the Administrative Agent is subject with respect to the Adjusted LIBO Rate pursuant to regulations
issued by the Board of Governors of the Federal Reserve System (or any Governmental Authority succeeding to any of its principal functions) with respect to eurocurrency funding (currently referred to as “eurocurrency liabilities” under
Regulation D). Eurodollar Loans shall be deemed to constitute eurocurrency funding and to be subject to such reserve requirements without benefit of or credit for proration, exemptions or offsets that may be available from time to time to any Lender
under Regulation D. The Eurodollar Reserve Percentage shall be adjusted automatically on and as of the effective date of any change in any reserve percentage. 

“Event of Default” shall have the meaning assigned to such term in Article VIII. 

“Excluded Taxes” shall mean with respect to the Administrative Agent, any Lender, the Issuing Bank or any other
recipient of any payment to be made by or on account of any obligation of the Borrower hereunder, (a) income or franchise taxes imposed on (or measured by) its net income by the United States of America, or by the jurisdiction under the laws of
which such recipient is organized or in which its principal office is located or, in the case of any Lender, in which its applicable lending office is located, (b) any branch profits taxes imposed by the United States of America or any similar
tax imposed by any other jurisdiction in which the Borrower is located, and (c) in the case of a Foreign Lender (other than an assignee pursuant to a request by the Borrower under Section 2.21(b)), any withholding tax that is
imposed on amounts payable to such Foreign Lender at the time such Foreign Lender becomes a party to this Agreement (or designates a new lending office) or is attributable to such Foreign Lender’s failure to comply with
Section 2.19(e), except to the extent that such Foreign Lender (or its assignor, if any) was entitled, at the time of designation of a new lending office (or assignment), to receive additional amounts from the Borrower with respect to
such withholding tax pursuant to Section 2.19(a). 
  

 - 8 - 

 “Existing Letter of Credit” shall mean each outstanding letter of
credit issued prior to the date hereof for the account of the Borrower as set forth on Schedule 2.22 and continued after the date hereof pursuant to Section 2.22. Each “Existing Letter of Credit” shall be a
“Letter of Credit” for purposes of this Agreement and deemed to have been issued hereunder. 

“Existing Scheduled Commitment Termination Date” shall have the meaning assigned to such term in
Section 2.23. 
 “Federal Funds Rate” shall mean, for any day, the rate
per annum (rounded upwards, if necessary, to the next
 1/100th of 1%) equal to the weighted average of the
rates on overnight Federal funds transactions with member banks of the Federal Reserve System arranged by Federal funds brokers, as published by the Federal Reserve Bank of New York on the next succeeding Business Day or if such rate is not so
published for any Business Day, the Federal Funds Rate for such day shall be the average rounded upwards, if necessary, to the next
 1/100th of 1% of the quotations for such day on
such transactions received by the Administrative Agent from three Federal funds brokers of recognized standing selected by the Administrative Agent. 

“First Amendment Effective Date” has the definition specified in Amendment No. 1. 

“Foreign Lender” means any Lender that is organized under the laws of a jurisdiction other than that in which the
Borrower is resident for tax purposes. For purposes of this definition, the United States, each State thereof and the District of Columbia shall be deemed to constitute a single jurisdiction. 

“Fund” means any Person (other than a natural person) that is (or will be) engaged in making, purchasing, holding
or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its activities. 

“GAAP” shall mean generally accepted accounting principles in the United States applied on a consistent basis and
subject to the terms of Section 1.3. 
 “Gemaire Caribe” shall mean Gemaire Caribe, Inc., a
Puerto Rico corporation. 
 “Governmental Authority” shall mean the government of the United States of
America, any other nation or any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory
or administrative powers or functions of or pertaining to government. 
  

 - 9 - 

 “Guarantee” of or by any Person (the
“guarantor”) shall mean any obligation, contingent or otherwise, of the guarantor guaranteeing or having the economic effect of guaranteeing any Indebtedness or other obligation of any other Person (the “primary
obligor”) in any manner, whether directly or indirectly and including any obligation, direct or indirect, of the guarantor (a) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or
other obligation or to purchase (or to advance or supply funds for the purchase of) any security for the payment thereof, (b) to purchase or lease property, securities or services for the purpose of assuring the owner of such Indebtedness or
other obligation of the payment thereof, (c) to maintain working capital, equity capital or any other financial statement condition or liquidity of the primary obligor so as to enable the primary obligor to pay such Indebtedness of other
obligation or (d) as an account party in respect of any letter of credit or letter of guaranty issued in support of such Indebtedness or obligation; provided, that the term “Guarantee” shall not include endorsements for
collection of deposits in the ordinary course of business. The amount of any Guarantee shall be deemed to be an amount equal to the stated or determinable amount of the primary obligation in respect of which Guarantee is made or, if not so stated or
determinable, the maximum reasonably anticipated liability in respect thereof (assuming such Person is required to perform thereunder) as determined by such Person in good faith. The term “Guarantee” used as a verb has a corresponding
meaning. 
 “Guaranteed Carrier Debt” shall mean that portion of any Indebtedness of Carrier Enterprise
that is guaranteed by the Borrower or any of its Subsidiaries (other than a Subsidiary of Carrier Enterprise, LLC). 

“Hazardous Materials” shall mean all explosive or radioactive substances or wastes and all hazardous or toxic
substances, wastes or other pollutants, including petroleum or petroleum distillates, asbestos or asbestos containing materials, polychlorinated biphenyls, radon gas, infectious or medical wastes and all other substances or wastes of any nature
regulated pursuant to any Environmental Law. 
 “Hedge Bank” means any Person that, at the time it
enters into a Secured Hedging Agreement, is a Lender or an Affiliate of a Lender, in its capacity as a party to such Secured Hedging Agreement. 

“Hedging Agreements” shall mean interest rate swap, cap or collar agreements, interest rate future or option
contracts, currency swap agreements, currency future or option contracts, foreign exchange agreements, commodity agreements and other similar agreements or arrangements designed to protect against fluctuations in interest rates, currency values or
commodity values. 
 “Indebtedness” of any Person shall mean, without duplication (a) all
obligations of such Person for borrowed money, (b) all obligations of such Person evidenced by bonds, debentures, notes or other similar instruments, (c) all obligations of such Person in respect of the deferred purchase price of property
or services (other than trade payables incurred in the ordinary course of business), (d) all obligations of such Person under any conditional sale or other title retention agreement(s) relating to property acquired by such Person, (e) all
Capital Lease Obligations of such Person, (f) all obligations, contingent or otherwise, of such Person in respect of letters of credit, acceptances or similar extensions of credit, (g) all Guarantees of such Person of the type of
Indebtedness described in clauses (a) through (f) above, (h) all Indebtedness of a third party secured by any Lien on property owned by such Person, whether or not such Indebtedness has been assumed by such Person,
(i) all obligations of such Person, contingent or otherwise, to purchase, redeem, retire or otherwise acquire for value any common stock of such Person, (j) Off-Balance Sheet Liabilities, (k) obligations under any Hedging Agreements,
and (l) all Securitization Transactions of such Person. The Indebtedness of any Person shall include the Indebtedness of any other entity (including any partnership in which such Person is a general partner) to the extent such Person is liable
therefor as a result of such Person’s ownership interest in or other relationship with such entity, except to the extent the terms of such Indebtedness provide that such Person is not liable therefor. 

 

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 “Indemnified Taxes” shall mean Taxes other than Excluded Taxes.

 “Indemnity and Contribution Agreement” shall mean the Indemnity, Subrogation and Contribution
Agreement, substantially in the form of Exhibit E, among the Borrower, the Subsidiary Loan Parties and the Administrative Agent. 

“Interest Coverage Ratio” shall mean as of any date of determination with respect to the Borrower, the ratio of
(a) the sum of Adjusted Consolidated EBIT plus the JV EBIT Amount as of such date to (b) Consolidated Interest Expense as of such date. 

“Interest Period” shall mean (a) with respect to any Eurodollar Borrowing, a period of one, two, three or
six months, selected by the Borrower pursuant to Section 2.3 and subject to customary adjustments in duration; and (b) with respect to a Swingline Loan, a period of such duration not to exceed 5 days, as the Borrower may request and
the Swingline Lender may agree in accordance with Section 2.5; provided, that: 
 (i) the
initial Interest Period for such Borrowing shall commence on the date of such Borrowing (including the date of any conversion from a Borrowing of another Type) and each Interest Period occurring thereafter in respect of such Borrowing shall commence
on the day on which the next preceding Interest Period expires; 
 (ii) if any Interest Period would otherwise
end on a day other than a Business Day, such Interest Period shall be extended to the next succeeding Business Day, unless, in the case of a Eurodollar Borrowing, such Business Day falls in another calendar month, in which case such Interest Period
would end on the next preceding Business Day; 
 (iii) any Interest Period in respect of a Eurodollar Borrowing
which begins on the last Business Day of a calendar month or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period shall end on the last Business Day of such calendar month; and

 (iv) no Interest Period may extend beyond the Commitment Termination Date or the Swingline Termination Date,
as the case may be. 
 “Investment” shall have the meaning assigned to such term in
Section 7.4. 
 “Issuing Bank” shall mean Bank of America, N.A. or any other Lender, each in
its capacity as an issuer of Letters of Credit pursuant to Section 2.22. 
 “JV EBIT Amount”
shall mean, for Carrier Enterprise for any four-quarter period ending on the date of computation thereof, an amount equal to the sum of (a) consolidated net income (calculated in the manner set forth in the definition of Consolidated Net Income
with respect to Carrier Enterprise rather than the Borrower and its Subsidiaries) for such period plus (b) to the extent deducted in determining such consolidated net income for such period, (i) consolidated interest expense for
such entities (calculated in the manner set forth in the definition of Consolidated Interest Expense with respect to Carrier Enterprise rather than the Borrower and its Subsidiaries), and (ii) income tax expense times the Watsco
Ownership Percentage; provided however that in no event shall the JV EBIT Amount for any such period exceed the aggregate amount of cash actually distributed by Carrier Enterprise to the Borrower during such period. 

 

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 “JV EBITDA Amount” shall mean, for Carrier Enterprise for any
four-quarter period ending on the date of computation thereof, an amount equal to the sum of (a) consolidated net income for such entities (calculated in the manner set forth in the definition of Consolidated Net Income with respect to Carrier
Enterprise rather than the Borrower and its Subsidiaries) for such period plus (b) to the extent deducted in determining such consolidated net income for such period, (i) consolidated interest expense for such entities (calculated
in the manner set forth in the definition of Consolidated Interest Expense with respect to Carrier and its Subsidiaries rather than the Borrower and its Subsidiaries), (ii) income tax expense, and (iii) depreciation and amortization
(including non-cash, stock based compensation) times the Watsco Ownership Percentage; provided however that in no event shall the JV EBITDA Amount for any period exceed the aggregate amount of cash actually distributed by
Carrier Enterprise to the Borrower during such period. 
 “JV Operating Agreement” shall mean the
Operating Agreement of Carrier Enterprise, LLC (Amended and Restated) dated July 1, 2009. 
 “LC
Commitment” shall mean that portion of the Aggregate Revolving Commitments that may be used by the Borrower for the issuance of Letters of Credit in an aggregate face amount not to exceed $50,000,000. 

“LC Disbursement” shall mean a payment made by the Issuing Bank pursuant to a Letter of Credit. 

“LC Documents” shall mean the Letters of Credit and all applications, agreements and instruments relating to the
Letters of Credit. 
 “LC Exposure” shall mean, at any time, the sum of (a) the aggregate undrawn
amount of all outstanding Letters of Credit at such time, plus (b) the aggregate amount of all LC Disbursements that have not been reimbursed by or on behalf of the Borrower at such time. The LC Exposure of any Lender shall be its Pro Rata
Share of the total LC Exposure at such time. 
 “Lenders” shall have the meaning assigned to such term
in the opening paragraph of this Agreement and shall include, where appropriate, the Swingline Lender. 
 “Letter of
Credit” shall mean each Existing Letter of Credit and any other letter of credit hereafter issued pursuant to Section 2.22 by the Issuing Bank for the account of the Borrower or any Subsidiary Loan Party pursuant to the LC
Commitment. 
 “Leverage Ratio” shall mean as of any date of determination with respect to the Borrower,
the ratio of (a) Consolidated Total Debt as of such date to (b) the sum of Adjusted Consolidated EBITDA plus the JV EBITDA Amount as of such date. 

“LIBOR” shall mean, 

(a) for any applicable Interest Period with respect to any Eurodollar Loan, the rate per annum equal to the British
Bankers Association LIBOR Rate (“BBA LIBOR”), as published by Reuters (or other commercially available source providing quotations of BBA LIBOR as designated by the Administrative Agent from time to time) at approximately
11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period, for Dollar deposits (for delivery on the first day of such Interest Period) with a term equivalent to such Interest Period. If such rate is not available
at such time for any reason, then the “LIBOR” for such Interest Period shall be the rate per annum determined by the Administrative Agent to be the rate at which deposits in Dollars for delivery on the first day of such Interest Period in
same day funds in the approximate amount of the Eurodollar Loan being made, continued or converted by Bank of America and with a term equivalent to such Interest Period would be offered by Bank of America’s London Branch to major banks in the
London interbank eurodollar market at their request at approximately 11:00 a.m. (London time) two Business Days prior to the commencement of such Interest Period; and 

 

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 (b) for any interest calculation with respect to a Base Rate Loan, the rate
per annum equal to (i) BBA LIBOR, at approximately 11:00 a.m., London time two Business Days prior to the date of determination (provided that if such day is not a Business Day, the next preceding Business Day) for Dollar deposits being
delivered in the London interbank market for a term of one month commencing that day or (ii) if such published rate is not available at such time for any reason, the rate per annum determined by the Administrative Agent to be the rate at which
deposits in dollars for delivery on the date of determination in same day funds in the approximate amount of the Base Rate Loan being made or maintained by Bank of America and with a term equal to one month would be offered by Bank of America’s
London Branch to major banks in the London interbank eurodollar market at their request two Business Days prior to the date and time of determination. 

“Lien” shall mean any mortgage, pledge, security interest, lien (statutory or otherwise), charge, encumbrance,
hypothecation, assignment, deposit arrangement, or other arrangement having the practical effect of the foregoing or any preference, priority or other security agreement or preferential arrangement of any kind or nature whatsoever (including any
conditional sale or other title retention agreement and any capital lease having the same economic effect as any of the foregoing). 

“Loan Documents” shall mean, collectively, this Agreement, the Notes (if any), the LC Documents, all Notices of
Borrowing, the Subsidiary Guarantee Agreement, the Indemnity and Contribution Agreement, the Pledge Agreement (and any Pledge Joinder Agreement) and any and all other instruments, agreements, documents and writings executed in connection with any of
the foregoing, excluding any such documents not expressly referenced in the definition of “Loan Documents” to the extent relating to the Project Orange Investment. 

“Loan Parties” shall mean the Borrower and the Subsidiary Loan Parties. 

“Loans” shall mean all Revolving Loans and Swingline Loans in the aggregate or any of them, as the context shall
require. 
 “Major Subsidiary” shall mean, collectively, (a) Baker Distributing Company LLC,
Gemaire Distributors LLC, East Coast Distributors LLC and Heating & Cooling Supply LLC, and (b) any other direct or indirect Subsidiary of the Borrower (other than Carrier Enterprise) having at any time: (i) assets in an amount
equal to at least 10% of the Consolidated Total Assets of the Borrower and its Subsidiaries determined as of the last day of the most recent fiscal quarter of the Borrower as reflected in the Borrower’s most recent financial statements required
by Section 5.1(a) or (b); or (ii) revenues or net income in an amount equal to at least 10% of the Consolidated Total Revenues or Consolidated Net Income of the Borrower and its Subsidiaries for the 12-month period ending on
the last day of the most recent fiscal quarter of the Borrower as reflected in the Borrower’s most recent financial statements required by Section 5.1(a) or (b). 

 

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 “Material Adverse Effect” shall mean, with respect to any event,
act, condition or occurrence of whatever nature (including any adverse determination in any litigation, arbitration, or governmental investigation or proceeding), whether singly or in conjunction with any other event or events, act or acts,
condition or conditions, occurrence or occurrences whether or not related, a material adverse change in, or a material adverse effect on, (a) the business, results of operations, financial condition, assets, liabilities or prospects of the
Borrower or of the Borrower and its Subsidiaries, taken as a whole, or of the Loan Parties taken as a whole, (b) the ability of the Loan Parties to perform any of their respective obligations under the Loan Documents, (c) the rights and
remedies of the Administrative Agent, the Issuing Bank and the Lenders under any of the Loan Documents or (d) the legality, validity or enforceability of any of the Loan Documents. 

“Material Agreement” shall mean any agreement filed pursuant to Item 601(b)(10) of Regulation S-K (17 C.F.R.
229, et seq.) with the Borrower’s most recent Annual Report on Form 10-K. 
 “Material
Indebtedness” shall mean Indebtedness (other than the Loans and Letters of Credit) or obligations in respect of one or more Hedging Agreements, to a single Person and such Person’s Affiliates of an aggregate principal amount
exceeding $10,000,000. For purposes of determining “Material Indebtedness,” the “principal amount” of the obligations of the Borrower or any Subsidiary in respect to any Hedging Agreement at any time shall be the maximum
aggregate amount (giving effect to any netting agreements) that the Borrower or such Subsidiary would be required to pay if such Hedging Agreement were terminated at such time. 

“Material Indebtedness Agreements” shall mean each of the Prudential Shelf Agreement, any agreement or instrument
evidencing Private Placement Debt, any agreement relating to a Securitization Transaction, or any other agreement relating to Material Indebtedness of the Borrower or any Subsidiary Loan Party. 

“Modification Date” shall have the meaning assigned to such term in Section 2.23. 

“Moody’s” shall mean Moody’s Investors Service, Inc., or any successor. 

“Multiemployer Plan” shall have the meaning set forth in Section 4001(a)(3) of ERISA. 

“Non-Extending Lender” shall have the meaning assigned to such term in Section 2.23. 

“Notes” shall mean, collectively, the Revolving Credit Notes and the Swingline Note. 

“Notices of Borrowing” shall mean, collectively, the Notices of Revolving Borrowing and the Notices of Swingline
Borrowing. 
 “Notice of Conversion/Continuation” shall mean the notice given by the Borrower to the
Administrative Agent in respect of the conversion or continuation of an outstanding Borrowing as provided in Section 2.7(b) hereof. 

“Notice of Revolving Borrowing” shall have the meaning assigned to such term in Section 2.3.

 “Notice of Swingline Borrowing” shall have the meaning assigned to such term in
Section 2.5. 
  

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 “Obligations” shall mean (a) all amounts owing by the Borrower
or any Subsidiary (other than Carrier Enterprise) to the Administrative Agent, the Issuing Bank or any Lender (including the Swingline Lender) pursuant to or in connection with this Agreement or any other Loan Document, including without limitation,
all principal, interest (including any interest accruing after the filing of any petition in bankruptcy or the commencement of any insolvency, reorganization or like proceeding relating to the Borrower, whether or not a claim for post-filing or
post-petition interest is allowed in such proceeding), all reimbursement obligations, fees, expenses, indemnification and reimbursement payments, costs and expenses (including all fees and expenses of counsel to the Administrative Agent and any
Lender (including the Swingline Lender) incurred pursuant to this Agreement or any other Loan Document), whether direct or indirect, absolute or contingent, liquidated or unliquidated, now existing or hereafter arising hereunder or thereunder,
together with all renewals, extensions, modifications or refinancings thereof, and (b) all obligations of the Borrower or any Subsidiary (other than Carrier Enterprise), monetary or otherwise, under each interest rate Hedging Agreement relating
to Obligations referred to in the preceding clause (a) entered into with any counterparty that was a Lender (or an Affiliate thereof) at the time such Hedging Agreement was entered into. 

“OFAC” shall mean the U.S. Department of Treasury’s Office of Foreign Assets Control. 

“Off-Balance Sheet Liabilities” of any Person shall mean (a) any repurchase obligation or liability of such
Person with respect to accounts or notes receivable sold by such Person, (b) any liability of such Person under any sale and leaseback transactions which do not create a liability on the balance sheet of such Person, (c) any Synthetic
Lease Obligation or (d) any obligation arising with respect to any other transaction which is the functional equivalent of or takes the place of borrowing but which does not constitute a liability on the balance sheet of such Person.

 “Other Taxes” shall mean any and all present or future stamp or documentary taxes or any other excise
or property taxes, charges or similar levies arising from any payment made hereunder or from the execution, delivery or enforcement of, or otherwise with respect to, this Agreement or any other Loan Document. 

“Participant” shall have the meaning set forth in Section 10.4(c). 

“Payment Office” shall mean the office of the Administrative Agent located at 101 North Tryon Street,
NC1-001-04-39, Charlotte, North Carolina 28255, or such other location as to which the Administrative Agent shall have given written notice to the Borrower and the other Lenders. 

“PBGC” shall mean the Pension Benefit Guaranty Corporation referred to and defined in ERISA, and any successor
entity performing similar functions. 
 “Permitted Encumbrances” shall mean: 

(a) Liens imposed by law for taxes, governmental assessments or similar governmental charges not yet due or which are
being contested in good faith by appropriate proceedings and with respect to which adequate reserves are being maintained in accordance with GAAP; 

(b) statutory Liens of landlords and Liens of carriers, warehousemen, mechanics, materialmen and other Liens imposed by
law created in the ordinary course of business for amounts not yet due or which are being contested in good faith by appropriate proceedings and with respect to which adequate reserves are being maintained in accordance with GAAP; 

 

 - 15 - 

 (c) pledges and deposits made in the ordinary course of business in
compliance with workers’ compensation, unemployment insurance and other social security laws or regulations; 

(d) deposits to secure the performance of bids, trade contracts, leases, statutory obligations, surety and appeal bonds,
performance bonds and other obligations of a like nature, in each case in the ordinary course of business; 
 (e)
judgment and attachment liens not giving rise to an Event of Default or Liens created by or existing from any litigation or legal proceeding that are currently being contested in good faith by appropriate proceedings and with respect to which
adequate reserves are being maintained in accordance with GAAP; 
 (f) easements, zoning restrictions,
rights-of-way and similar encumbrances on real property imposed by law or arising in the ordinary course of business that do not secure any monetary obligations and do not materially detract from the value of the affected property or materially
interfere with the ordinary conduct of business of the Borrower and its Subsidiaries taken as a whole; 
 (g)
bank liens with respect to collection of deposits in the ordinary course of business; and 
 (h) Liens pursuant
to any Loan Document; 
 provided, that the term “Permitted Encumbrances” shall not include any Lien securing Indebtedness,
except as specifically provided in clause (h). 
 “Permitted Investments” shall mean: 

(a) direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the
United States (or by any agency thereof to the extent such obligations are backed by the full faith and credit of the United States), in each case maturing within one (1) year from the date of acquisition thereof; 

(b) commercial paper having the highest rating, at the time of acquisition thereof, of Standard &
Poor’s or Moody’s and in either case maturing within six (6) months from the date of acquisition thereof; 

(c) certificates of deposit, bankers’ acceptances and time deposits maturing within one-hundred eighty
(180) days of the date of acquisition thereof issued or guaranteed by or placed with, and money market deposit accounts issued or offered by, any domestic office of any commercial bank organized under the laws of the United States or any state
thereof which has a combined capital and surplus and undivided profits of not less than $500,000,000; 
 (d)
fully collateralized repurchase agreements with a term of not more than thirty (30) days for securities described in clause (a) above and entered into with a financial institution satisfying the criteria described in clause
(c) above; 
 (e) mutual funds investing solely in any one or more of the Permitted Investments
described in clauses (a) through (d) above; 
  

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 (f) debt securities with a maturity of no greater than 365 days and rated at
least “A-” by Standard & Poor’s or at least “A3” by Moody’s; and 

(g) subject to the restriction set forth in Section 4.9, other debt or equity securities which are listed on a
national securities exchange or freely traded in the over-the-counter market so long as the cost of such securities does not exceed at any time in the aggregate an amount equal to 2% of Consolidated Tangible Assets as of the most recent fiscal year
end. 
 “Person” shall mean any individual, partnership, firm, corporation, association, joint venture,
limited liability company, trust or other entity, or any Governmental Authority. 
 “Plan” shall mean
any employee pension benefit plan (other than a Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA, and in respect of which the Borrower or any ERISA Affiliate is (or, if
such plan were terminated, would under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of ERISA. 

“Pledge Agreement” shall mean the Securities Pledge Agreement dated as of the First Amendment Effective Date
executed by the Borrower and/or each Subsidiary owning membership interests in Carrier Enterprise from time to time party thereto in favor of the Administrative Agent for the ratable benefit of itself and the Secured Parties, substantially in the
form of Exhibit F attached hereto, as supplemented from time to time by the execution and delivery of Pledge Joinder Agreements pursuant to Section 5.10(b) or otherwise. 

“Pledge Agreement Supplement” means, with respect to the Pledge Agreement, the Pledge Agreement Supplement in the
form affixed as an Exhibit to the Pledge Agreement. 
 “Pledge Joinder Agreement” means each
Pledge Joinder Agreement, substantially in the form thereof attached to the Pledge Agreement, executed and delivered by a Subsidiary to the Administrative Agent pursuant to Section 5.10(b) or otherwise. 

“Private Placement Debt” shall mean unsecured Indebtedness for borrowed money issued by the Borrower in a private
placement transaction; provided, that all of the following conditions shall be satisfied: 
 (a) except as
set forth on Schedule II hereof, no portion of principal thereof shall be payable or required to be purchased (whether by scheduled installment, mandatory prepayment or redemption, or the exercise of any put right) prior to the Scheduled Commitment
Termination Date; 
 (b) the instruments and agreements evidencing such Indebtedness, and any agreement under
which such Indebtedness, and any agreement under which such Indebtedness is created, shall provide that the right to payment of the holders or owners of Private Placement Debt (including any trustee or agent action on behalf of such holders or
owners, collectively “Private Placement Debt Holders”) shall either be subordinate to or rank pari passu in all respects with the rights of the Lenders and the Administrative Agent to payment and performance of the
Obligations on terms reasonably acceptable to the Administrative Agent; 
 (c) both immediately prior to and
immediately after giving effect to the issuance of such Indebtedness, there shall not have occurred and be continuing any Default or Event of Default; 
  

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 (d) the Borrower shall furnish to the Administrative Agent, not later than
the earliest date of delivery thereof to any actual or prospective Private Placement Debt Holder, copies of (i) all preliminary placement memoranda and final placement memoranda relating to such Indebtedness and (ii) drafts of all
documents and agreements under which such Indebtedness is to be created or governed; and 
 (e) not later than
ten (10) days prior to the issuance of such Indebtedness, the Borrower shall deliver to the Administrative Agent a certificate in the form of Exhibit 5.1(c), executed by a Responsible Officer and containing calculations giving historical
pro forma effect to the issuance of such Indebtedness as of and for the four consecutive fiscal quarter period ending at the end of most recent fiscal quarter of the Borrower preceding the date of such issuance (assuming for such purpose that the
initial rate or rates of interest provided for therein (and giving effect to any increase in rates of interest therein provided) remained in effect for such four fiscal quarter period), which certificate shall demonstrate that the issuance of such
Indebtedness does not cause, create or result in a Default or Event of Default on a historical pro forma basis. 

“Pro Rata Share” shall mean, with respect to any Lender at any time, a percentage, the numerator of which shall
be such Lender’s Revolving Commitment and the denominator of which shall be the sum of all Lenders’ Revolving Commitments; or if the Revolving Commitments have been terminated or expired or if the Loans have been declared to be due and
payable, a percentage, the numerator of which shall be the sum of such Lender’s Revolving Credit Exposure and the denominator of which shall be the sum of the aggregate Revolving Credit Exposure of all Lenders. 

“Project Orange Investment” shall mean the purchase by the Borrower and/or any Subsidiary of a sixty percent
(60%) membership interest in Carrier Enterprise pursuant to the Purchase and Contribution Agreement. 

“Prudential Shelf Agreement” shall mean that certain Second Amended and Restated Private Shelf Agreement dated
December 10, 2004 between The Prudential Insurance Company of America, Inc, the Borrower and the purchasers named therein. 

“Purchase and Contribution Agreement” shall mean that certain Purchase and Contribution Agreement dated
May 3, 2009, as amended by Amendment to Purchase and Contribution Agreement dated June 29, 2009 between Carrier and the Borrower. 

“Receivables” shall mean accounts receivable (including, without limitation, all rights to payment created or
arising from the sales of goods, leases of goods or the rendition of services, no matter how evidenced and whether or not earned by performance). 

“Regulation D” shall mean Regulation D of the Board of Governors of the Federal Reserve System, as the same may
be in effect from time to time, and any successor regulations. 
 “Related Parties” shall mean, with
respect to any specified Person, such Person’s Affiliates and the respective directors, officers, employees, agents and advisors of such Person and such Person’s Affiliates. 

“Release” shall mean any release, spill, emission, leaking, dumping, injection, pouring, deposit, disposal,
discharge, dispersal, leaching or migration into the environment (including ambient air, surface water, groundwater, land surface or subsurface strata) or within any building, structure, facility or fixture. 

 

 - 18 - 

 “Required Lenders” shall mean, at any time, Lenders holding
fifty-one percent (51%) or more of the aggregate outstanding Revolving Credit Exposures at such time or if the Lenders have no Revolving Credit Exposure outstanding, then Lenders holding fifty-one percent (51%) or more of the Aggregate
Revolving Commitments; provided that, as set forth in Section 10.15, the unused Revolving Commitment of, and the portion of the Revolving Credit Exposure outstanding, held or deemed held by, any Defaulting Lender shall be excluded
for purposes of making a determination of Required Lenders. 
 “Responsible Officer” shall mean any of
the president, the chief executive officer, the chief operating officer, the chief financial officer, the treasurer or a vice president of the Borrower or such other representative of the Borrower (or, with respect to any request for the issuance of
a Letter of Credit for the account of a Subsidiary, such officer of the applicable Subsidiary), as may be designated in writing by any one of the foregoing with the consent of the Administrative Agent; and, with respect to the financial covenants
only, the chief financial officer or the treasurer of the Borrower. 
 “Restricted Payment” shall have
the meaning assigned to such term in Section 7.5. 
 “Revolving Commitment” shall mean, with
respect to each Lender, the obligation of such Lender to make Revolving Loans to the Borrower and to participate in Letters of Credit and Swingline Loans in an aggregate principal amount not exceeding the amount set forth with respect to such Lender
on the signature pages to this Agreement, or in the case of a Person becoming a Lender after the Closing Date, the amount of the assigned “Revolving Commitment” as provided in the Assignment and Assumption Agreement executed by such Person
as an assignee, as the same may be changed pursuant to terms hereof. 
 “Revolving Credit Exposure”
shall mean, with respect to any Lender at any time, the sum of the outstanding principal amount of such Lender’s Revolving Loans, such Lender’s LC Exposure and such Lender’s Swingline Exposure. 

“Revolving Credit Note” shall mean a promissory note of the Borrower payable to the order of a requesting Lender
in the principal amount of such Lender’s Revolving Commitment, in substantially the form of Exhibit A. 

“Revolving Loan” shall mean a loan made by a Lender (other than the Swingline Lender) to the Borrower under its
Revolving Commitment, which may either be a Base Rate Loan or a Eurodollar Loan. 
 “Scheduled Commitment Termination
Date” shall mean August 3, 2012. 
 “Secured Hedging Agreement” means any interest
rate Hedging Agreement permitted under Section 7.10 that is entered into by and between any Loan Party and any Hedge Bank. 

“Secured Parties” means, collectively, the Administrative Agent, the Lenders, the Issuing Bank, the Hedge Banks,
each co-agent or sub-agent appointed by the Administrative Agent from time to time pursuant to Section 9.2, and each other Person to which any Obligation is owing from time to time. 

“Securitization Transaction” shall mean (a) any transfer by the Borrower or any Subsidiary of Receivables or
interests therein and all collateral securing such Receivables, all contracts and contract rights and all guarantees or other obligations in respect of such Receivables, all other assets that are customarily transferred or in respect of which
security interests are customarily granted in connection with asset securitization transactions involving such Receivables and all proceeds of any of the foregoing (i) to a trust, partnership, corporation or other entity (other than the
Borrower or a Subsidiary other than a SPE Subsidiary), which transfer is funded in whole or in part, directly or indirectly, by the incurrence or issuance by the transferee or any successor transferee of indebtedness or other securities that are to
receive payments from, or that represent interests in, the cash flow derived from such Receivables or interests in Receivables, or (ii) directly to one or more investors or other purchasers (other than the Borrower or any Subsidiary), or
(b) any transaction in which the Borrower or a Subsidiary incurs Indebtedness or other obligations secured by Liens on Receivables. The “amount” or “principal amount” of any Securitization Transaction shall be deemed
at any time to be (x) in the case of a transaction described in clause (a) of the preceding sentence, the aggregate principal or stated amount of the Indebtedness or other securities referred to in such clause or, if there shall be
no such principal or stated amount, the uncollected amount of the Receivables transferred pursuant to such Securitization Transaction net of any such Receivables that have been written off as uncollectible, and (y) in the case of a transaction
described in clause (b) of the preceding sentence, the aggregate outstanding principal amount of the Indebtedness secured by Liens on the subject Receivables. 
  

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 “Solvent” or “Solvency” shall mean, with
respect to any Person as of a particular date, that on such date (a) such Person is able to realize upon its assets and pay its debts and other liabilities, contingent obligations and other commitments as they mature in the normal course of
business, (b) 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 in their ordinary course, (c) such Person is not
engaged in a business or a transaction, and is not about to engage in a business or a transaction, for which such Person’s properties and assets would constitute unreasonably small capital after giving due consideration to the prevailing
practice in the industry in which such Person is engaged or is to engage, (d) the fair value of the properties and assets of such Person is greater than the total amount of liabilities, including, without limitation, contingent liabilities, of
such Person and (e) the present fair saleable value of the properties and 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. In
computing the amount of contingent liabilities at any time, it is intended that such liabilities will be computed at the amount that, in light of all the facts and circumstances existing at such time, represents the amount that can reasonably be
expected to become an actual or matured liability. 
 “SPE Subsidiary” shall mean any Subsidiary formed
solely for the purpose of, and that engages only in, one or more Securitization Transactions. 
 “Standard &
Poor’s” shall mean Standard & Poor’s, a division of the McGraw-Hill Companies. 

“Subsidiary” shall mean, with respect to any Person (the “parent”), any corporation,
partnership, joint venture, limited liability company, association or other entity the accounts of which would be consolidated with those of the parent in the parent’s consolidated financial statements if such financial statements were prepared
in accordance with GAAP as of such date, as well as any other corporation, partnership, joint venture, limited liability company, association or other entity (a) of which securities or other ownership interests representing more than fifty
percent (50%) of the equity or more than fifty percent (50%) of the ordinary voting power, or in the case of a partnership, more than fifty percent (50%) of the general partnership interests are, as of such date, owned, controlled or
held, or (b) that is, as of such date, otherwise controlled, by the parent or one or more subsidiaries of the parent or by the parent and one or more subsidiaries of the parent. Unless otherwise indicated, all references to
“Subsidiary” hereunder shall mean a Subsidiary of the Borrower. 
  

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 “Subsidiary Guarantee Agreement” shall mean the Subsidiary Guarantee
Agreement, substantially in the form of Exhibit D, made by the Subsidiary Loan Parties in favor of the Administrative Agent for the benefit of the Lenders. 

“Subsidiary Loan Party” shall mean any direct or indirect Subsidiary (other than Gemaire Caribe, unless it
becomes a Subsidiary Loan Party pursuant to Section 5.12 and other than Carrier Enterprise, unless it becomes a Subsidiary Loan Party pursuant to Section 5.10(a). 

“Swingline Commitment” shall mean the commitment of the Swingline Lender to make Swingline Loans in an aggregate
principal amount at any time outstanding not to exceed $25,000,000. 
 “Swingline Exposure” shall mean,
with respect to each Lender, the principal amount of the Swingline Loans in which such Lender is legally obligated either to make a Base Rate Loan or to purchase a participation in accordance with Section 2.5, which shall equal such
Lender’s Pro Rata Share of all outstanding Swingline Loans. 
 “Swingline Lender” shall mean Bank
of America, N.A., or any other Lender that may agree to make Swingline Loans hereunder. 
 “Swingline
Loan” shall mean a loan made to the Borrower by the Swingline Lender under the Swingline Commitment. 

“Swingline Note” shall mean the promissory note of the Borrower payable to the order of the Swingline Lender in
the principal amount of the Swingline Commitment, in substantially the form of Exhibit B. 
 “Swingline
Rate” shall mean, for any Interest Period, the rate as offered by the Administrative Agent and accepted by the Borrower. The Borrower is under no obligation to accept this rate and the Administrative Agent is under no obligation to
provide it. 
 “Swingline Termination Date” shall mean the Commitment Termination Date. 

“Synthetic Lease” shall mean a lease transaction under which the parties intend that (a) the lease will be
treated as an “operating lease” by the lessee pursuant to Statement of Financial Accounting Standards No. 13, as amended, and (b) the lessee will be entitled to various tax and other benefits ordinarily available to owners (as
opposed to lessees) of like property. 
 “Synthetic Lease Obligations” shall mean, with respect to any
Person, the sum of (a) all remaining rental obligations of such Person as lessee under Synthetic Leases that are attributable to principal and, without duplication, (b) all rental and purchase price payment obligations of such Person under
such Synthetic Leases assuming such Person exercises the option to purchase the lease property at the end of the lease term. 

“Taxes” shall mean any and all present or future taxes, levies, imposts, duties, deductions, charges or
withholdings imposed by any Governmental Authority. 
 “Type”, when used in reference to a Loan or
Borrowing, refers to whether the rate of interest on such Loan, or on the Loans comprising such Borrowing, is determined by reference to the Adjusted LIBO Rate or the Base Rate. 

 

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 “Voting Stock” shall mean, with respect to any Person, Capital Stock
issued by such Person the holders of which are ordinarily, in the absence of contingencies, entitled to vote for the election of directors (or persons performing similar functions) of such Person, even though the right to vote has been suspended by
the happening of such a contingency. 
 “Watsco Ownership Percentage” shall mean, with respect to any
period, the weighted average percentage ownership interest of Watsco and its Subsidiaries in Carrier Enterprise during such period. 

“Withdrawal Liability” shall mean liability to a Multiemployer Plan as a result of a complete or partial
withdrawal from such Multiemployer Plan, as such terms are defined in Part I of Subtitle E of Title IV of ERISA. 

Section 1.2 Classifications of Loans and Borrowings. For purposes of this Agreement, Loans may be classified and
referred to by Class (e.g. a “Revolving Loan” or “Swingline Loan”) or by Type (e.g. a “Eurodollar Loan” or “Base Rate Loan”) or by Class and Type (e.g. “Revolving Eurodollar Loan”). Borrowings also
may be classified and referred to by Class (e.g. “Revolving Borrowing”) or by Type (e.g. “Eurodollar Borrowing”) or by Class and Type (e.g. “ Revolving Eurodollar Borrowing”). 

Section 1.3 Accounting Terms and Determination. Unless otherwise defined or specified herein, all accounting terms
used herein shall be interpreted, all accounting determinations hereunder shall be made, and all financial statements required to be delivered hereunder shall be prepared, in accordance with GAAP as in effect from time to time, applied on a basis
consistent (except for such changes approved by the Borrower’s independent public accountants) with the most recent audited consolidated financial statement of the Borrower delivered pursuant to Section 5.1(a); provided, that
if the Borrower notifies the Administrative Agent that the Borrower wishes to amend any covenant in Article VI to eliminate the effect of any change in GAAP on the operation of such covenant (or if the Administrative Agent notifies the
Borrower that the Required Lenders wish to amend Article VI for such purpose), then the Borrower’s compliance with such covenant shall be determined on the basis of GAAP in effect immediately before the relevant change in GAAP became
effective, until either such notice is withdrawn or such covenant is amended in a manner satisfactory to the Borrower and the Required Lenders. 

Section 1.4 Accounting for Acquisitions and Divestures. 

(a) Covenant Acquisition Adjustment. For purposes of calculating the financial covenants in Sections 6.1 and 6.2 for any period
(or a portion of a period) of measurement that includes the date of the Acquisition or the consummation of any Investment permitted by Section 7.4(a)(vii), references to “Borrower and its Subsidiaries” shall include each
acquired Person, or lines of business, as applicable, and references to (i) “Consolidated EBITDA” or “JV EBITDA Amount” shall include the “EBITDA” of such acquired Person or line of business (such EBITDA to be
formulated on the basis of the definition of Consolidated EBITDA or JV EBITDA Amount, as applicable, set forth herein) and (ii) “Consolidated EBIT” or “JV EBIT Amount” shall include the “EBIT” of such acquired
Person or line of business (such EBIT to be formulated on the basis of the definition of Consolidated EBIT or JV EBIT Amount, as applicable, set forth herein), as if such Acquisition or Investment had been consummated on the first day of any such
period of measurement. 
 (b) Covenant Disposition Adjustment. For purposes of calculating the financial covenants in
Sections 6.1 and 6.2 for any period of measurement (or a portion of a period) that includes the date of any Disposition of a Subsidiary or line of business, as applicable, Consolidated EBITDA shall be determined on a historical
pro forma basis to exclude the results of operations of such Subsidiary or line of business, as applicable, so disposed. 
  

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 Section 1.5 Terms Generally. The definitions of terms herein shall apply
equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include’, “includes” and
“including” shall be deemed to be followed by the phrase “without limitation”. The word “will” shall be construed to have the same meaning and effect as the word “shall”. In the computation of periods of time
from a specified date to a later specified date, the word “from” means “from and including” and the word “to” means “to but excluding”. Unless the context requires otherwise (i) any definition of or
reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as it was originally executed or as it may from time to time be amended, supplemented or otherwise
modified (subject to any restrictions on such amendments, supplements or modifications set forth herein), (ii) any reference herein to any Person shall be construed to include such Person’s successors and permitted assigns, (iii) the
words “hereof”, “herein” and “hereunder” and words of similar import shall be construed to refer to this Agreement as a whole and not to any particular provision hereof, (iv) all references to Articles, Sections,
Exhibits and Schedules shall be construed to refer to Articles, Sections, Exhibits and Schedules to this Agreement and (v) all references to a specific time shall be construed to refer to the time in the city and state of the Administrative
Agent’s principal office, unless otherwise indicated. 
 ARTICLE II 

AMOUNT AND TERMS OF THE COMMITMENTS 

Section 2.1 General Description of Facilities. Subject to and upon the terms and conditions herein set forth,
(a) the Lenders hereby establish in favor of the Borrower a revolving credit facility pursuant to which the Lenders severally agree (to the extent of each Lender’s Pro Rata Share up to such Lender’s Revolving Commitment) to make
Revolving Loans to the Borrower in accordance with Section 2.2), (b) the Issuing Bank agrees to issue Letters of Credit in accordance with Section 2.22, (c) the Swingline Lender agrees to make Swingline Loans in
accordance with Section 2.4, and (d) each Lender agrees to purchase a participation interest in the Letters of Credit and the Swingline Loans pursuant to the terms and conditions hereof; provided, that in no event shall the
sum of the aggregate outstanding Revolving Credit Exposures of all Lenders exceed at any time the Aggregate Revolving Commitments then in effect. 

Section 2.2 Revolving Loans. Subject to the terms and conditions set forth herein, each Lender severally agrees to
make Revolving Loans to the Borrower, from time to time during the Availability Period, in an aggregate principal amount outstanding at any time that will not result in (i) such Lender’s Revolving Credit Exposure exceeding such
Lender’s Revolving Commitment or (ii) the sum of the aggregate Revolving Credit Exposures of all Lenders exceeding the Aggregate Revolving Commitments. During the Availability Period, the Borrower shall be entitled to borrow, prepay and
reborrow Revolving Loans in accordance with the terms and conditions of this Agreement; provided, that the Borrower may not borrow or reborrow should there exist a Default or Event of Default. 

Section 2.3 Procedure for Revolving Borrowings. The Borrower shall give the Administrative Agent written notice (or
telephonic notice promptly confirmed in writing) of each Revolving Borrowing, substantially in the form of Exhibit 2.3 attached hereto (a “Notice of Revolving Borrowing”), (a) prior to 12:00 noon on the requested
date of each Base Rate Borrowing and (b) prior to 12:00 noon three (3) Business Days prior to the requested date of each Eurodollar Borrowing. Each Notice of Revolving Borrowing shall be irrevocable and shall specify: (i) the
aggregate principal amount of such Borrowing, (ii) the date of such Borrowing (which shall be a Business Day), (iii) the Type of such Revolving Loan comprising such Borrowing and (iv) in the case of a Eurodollar Borrowing, the
duration of the initial Interest Period applicable thereto (subject to the provisions of the definition of Interest Period). Each Revolving Borrowing shall consist entirely of Base Rate Loans or Eurodollar Loans, as the Borrower may request. The
aggregate principal amount of each Eurodollar Borrowing shall be not less than $5,000,000 or a larger multiple of $1,000,000, and the aggregate principal amount of each Base Rate Borrowing shall not be less than $1,000,000 or a larger multiple of
$100,000; provided, that Base Rate Loans made pursuant to Section 2.5 or Section 2.22(d) may be made in lesser amounts as provided therein. At no time shall the total number of Eurodollar Borrowings outstanding at any
time exceed ten (10). Promptly following the receipt of a Notice of Revolving Borrowing in accordance herewith, the Administrative Agent shall advise each Lender of the details thereof and the amount of such Lender’s Revolving Loan to be made
as part of the requested Revolving Borrowing. 
  

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 Section 2.4 Swingline Loans. Subject to the terms and conditions set
forth herein, the Swingline Lender may, in its sole and absolute discretion, make Swingline Loans to the Borrower, from time to time from the Closing Date to the Swingline Termination Date, in an aggregate principal amount outstanding at any time
not to exceed the lesser of (a) the Swingline Commitment then in effect and (b) the difference between the Aggregate Revolving Commitments and the aggregate outstanding Revolving Credit Exposures of all Lenders; provided, that the
Swingline Lender shall not be required to make a Swingline Loan to refinance an outstanding Swingline Loan. The Borrower shall be entitled to borrow, repay and reborrow Swingline Loans in accordance with the terms and conditions of this Agreement.

 Section 2.5 Procedure for Swingline Borrowing; Etc. 

(a) The Borrower shall give the Administrative Agent written notice (or telephonic notice promptly confirmed in writing) of each
Swingline Borrowing (“Notice of Swingline Borrowing”) prior to 12:00 noon on the requested date of each Swingline Borrowing. Each Notice of Swingline Borrowing shall be irrevocable and shall specify: (i) the principal
amount of such Swingline Loan, (ii) the date of such Swingline Loan (which shall be a Business Day) and (iii) the account of the Borrower to which the proceeds of such Swingline Loan should be credited. The Administrative Agent will
promptly advise the Swingline Lender of each Notice of Swingline Borrowing. Each Swingline Loan shall accrue interest at the rate specified in Section 2.12(b) and shall have an Interest Period (subject to the definition thereof) as
agreed between the Borrower and the Swingline Lender. The aggregate principal amount of each Swingline Loan shall be not less than $100,000 or a larger multiple of $50,000, or such other minimum amounts agreed to by the Swingline Lender and the
Borrower. The Swingline Lender will make the proceeds of each Swingline Loan available to the Borrower in Dollars in immediately available funds at the account specified by the Borrower in the applicable Notice of Swingline Borrowing not later than
1:00 p.m. on the requested date of such Swingline Loan. The Administrative Agent will notify the Lenders on a quarterly basis if any Swingline Loans occurred during such quarter. 

(b) The Swingline Lender, at any time and from time to time in its sole discretion, may, on behalf of the Borrower (which hereby
irrevocably authorizes and directs the Swingline Lender to act on its behalf), give a Notice of Revolving Borrowing to the Administrative Agent requesting the Lenders (including the Swingline Lender) to make Base Rate Loans in an amount equal to the
unpaid principal amount of any Swingline Loan. Each Lender will make the proceeds of its Base Rate Loan included in such Borrowing available to the Administrative Agent for the account of the Swingline Lender in accordance with
Section 2.6, which will be used solely for the repayment of such Swingline Loan. 
  

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 (c) If for any reason a Base Rate Borrowing may not be (as determined in the sole discretion
of the Administrative Agent), or is not, made in accordance with the foregoing provisions, then each Lender (other than the Swingline Lender) shall purchase an undivided participating interest in such Swingline Loan in an amount equal to its Pro
Rata Share thereof on the date that such Base Rate Borrowing should have occurred. On the date of such required purchase, each Lender shall promptly transfer, in immediately available funds, the amount of its participating interest to the
Administrative Agent for the account of the Swingline Lender. If such Swingline Loan bears interest at a rate other than the Base Rate, such Swingline Loan shall automatically become a Base Rate Loan on the effective date of any such participation
and interest shall become payable on demand. 
 (d) Each Lender’s obligation to make a Base Rate Loan pursuant to
Section 2.5(b) or to purchase the participating interests pursuant to Section 2.5(c) shall be absolute and unconditional and shall not be affected by any circumstance, including without limitation (i) any setoff,
counterclaim, recoupment, defense or other right that such Lender or any other Person may have or claim against the Swingline Lender, the Borrower or any other Person for any reason whatsoever, (ii) the existence of a Default or an Event of
Default (other than an Event of Default in existence at the time of the making of any Swingline Loan by the Swingline Lender of which the Swingline Lender had actual knowledge) or the termination of any Lender’s Revolving Commitment,
(iii) the existence (or alleged existence) of any event or condition which has had or could reasonably be expected to have a Material Adverse Effect, (iv) any breach of this Agreement or any other Loan Document by the Borrower, the
Administrative Agent or any Lender or (v) any other circumstance, happening or event whatsoever, whether or not similar to any of the foregoing. If such amount is not in fact made available to the Swingline Lender by any Lender, the Swingline
Lender shall be entitled to recover such amount on demand from such Lender, together with accrued interest thereon for each day from the date of demand thereof at the Federal Funds Rate. Until such time as such Lender makes its required payment, the
Swingline Lender shall be deemed to continue to have outstanding Swingline Loans in the amount of the unpaid participation for all purposes of the Loan Documents. In addition, such Lender shall be deemed to have assigned any and all payments made of
principal and interest on its Loans and any other amounts due to it hereunder, to the Swingline Lender to fund the amount of such Lender’s participation interest in such Swingline Loans that such Lender failed to fund pursuant to this
Section 2.5, until such amount has been purchased in full. 
 (e) In the event that the Swingline Lender, in the
exercise of its discretion, requires as a condition to the making of any Swingline Loan that a Lender (as a result of (x) its status as a Defaulting Lender or (y) any Person that Controls such Lender being a Distressed Person) or the
Borrower enter into arrangements satisfactory to the Swingline Lender for the provision of sufficient Cash Collateral or other credit support acceptable to the Administrative Agent and the Swingline Lender, to eliminate the Swingline Lender’s
actual or potential risk with respect to any such Lender, then: 
 (i) The Borrower, and to the extent provided
by any Lender pursuant to this Section 2.5, such Lender, hereby grants to the Administrative Agent, for the benefit of the Administrative Agent, the Swingline Lender and the Lenders, a security interest in all Cash Collateral and all
other property provided as Cash Collateral under this Section 2.5, and all proceeds of the foregoing. Cash Collateral shall be maintained in blocked, non-interest bearing deposit accounts at Bank of America; provided that if the
Borrower requests that any such account bear interest and Bank of America has the operational capacity, in its reasonable determination, to set up such an account, Bank of America shall hold such deposit in an interest-bearing deposit account.

 (ii) Notwithstanding anything to the contrary contained in this Agreement, (A) Cash Collateral or other
credit support (and proceeds thereof) provided by any Lender pursuant to this Section 2.5 to support the obligations of such Lender in respect of Swingline Loans shall be held and applied, first, to fund, as applicable, the
participations of such Lender arising from, or Base Rate Loans issued to repay, Swingline Loans with respect to which such Cash Collateral or other credit support was provided, as contemplated in the foregoing provisions of this
Section 2.5, and, second, to fund (x) as applicable, the participations of such Lender arising from, or Base Rate Loans issued to repay, Swingline Loans arising from any other Swingline Loans, as contemplated in the foregoing
provisions of this Section 2.5, and (y) any interest accrued for the benefit of the Swingline Lender pursuant to Section 2.5(d) allocable to such Lender, and (B) Cash Collateral (and proceeds thereof) otherwise
provided by or on behalf of the Borrower under this Section 2.5 to support Swingline Loans (or participations therein) pursuant to the terms and conditions of this Agreement shall be held and applied, first, to the satisfaction of
the specific Swingline Loans so Cash Collateralized and, second, if remedies under Section 8.1 shall have been exercised, to the application of such Cash Collateral or proceeds thereof to any other Obligations in accordance with
Section 8.1. 
  

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 (iii) Cash Collateral and other credit support provided under this
Section 2.5 in connection with (x) any Lender’s status as a Defaulting Lender or (y) the status of any Person that Controls such Lender as a Distressed Person shall be released (except as the Swingline Lender and the
Person providing such Cash Collateral or other credit support may agree otherwise) promptly following the earlier to occur of (A) the termination of the Default Period with respect to such Defaulting Lender or (B) such Person that Controls
the Lender ceases to be a Distressed Person; subject, however, to the additional condition that, as to any such Cash Collateral or other credit support provided by or on behalf of the Borrower, no Default or Event of Default shall then
have occurred and be continuing. 
 Section 2.6 Funding of Borrowings. 

(a) Each Lender will make available each Loan to be made by it hereunder on the proposed date thereof by wire transfer in immediately
available funds by 1:00 p.m. to the Administrative Agent at the Payment Office; provided, that the Swingline Loans will be made as set forth in Section 2.5. The Administrative Agent will make such Loans available to the Borrower
by promptly crediting the amounts that it receives, in like funds by the close of business on such proposed date, to an account maintained by the Borrower with the Administrative Agent or at the Borrower’s option, by effecting a wire transfer
of such amounts to an account designated by the Borrower to the Administrative Agent. 
 (b) Unless the Administrative Agent
shall have been notified by any Lender prior to 5:00 p.m. one (1) Business Day prior to the date of a Borrowing in which such Lender is participating that such Lender will not make available to the Administrative Agent such Lender’s share
of such Borrowing, the Administrative Agent may assume that such Lender has made such amount available to the Administrative Agent on such date, and the Administrative Agent, in reliance on such assumption, may make available to the Borrower on such
date a corresponding amount. If such corresponding amount is not in fact made available to the Administrative Agent by such Lender on the date of such Borrowing, the Administrative Agent shall be entitled to recover such corresponding amount on
demand from such Lender together with interest at the Federal Funds Rate for up to two (2) days and thereafter at the rate specified for such Borrowing. If the Administrative Agent has made available to the Borrower any Lender’s share of
such Borrowing and such Lender does not pay such corresponding amount forthwith upon the Administrative Agent’s demand therefor, the Administrative Agent shall promptly notify the Borrower, and the Borrower shall immediately pay such
corresponding amount to the Administrative Agent together with interest at the rate specified for such Borrowing. Nothing in this subsection shall be deemed to relieve any Lender from its obligation to fund its Pro Rata Share of any Borrowing
hereunder or to prejudice any rights which the Borrower may have against any Lender as a result of any default by such Lender hereunder. 
  

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 (c) All Revolving Borrowings shall be made by the Lenders on the basis of their respective
Pro Rata Shares. No Lender shall be responsible for any default by any other Lender in its obligations hereunder, and each Lender shall be obligated to make its Loans provided to be made by it hereunder, regardless of the failure of any other Lender
to make its Loans hereunder. 
 Section 2.7 Interest Elections. 

(a) Each Borrowing initially shall be of the Type specified in the applicable Notice of Borrowing, and in the case of a Eurodollar
Borrowing, shall have an initial Interest Period as specified in such Notice of Borrowing. Thereafter, the Borrower may elect to convert such Borrowing into a different Type or to continue such Borrowing, and in the case of a Eurodollar Borrowing,
may elect Interest Periods therefor, all as provided in this Section 2.7. The Borrower may elect different options with respect to different portions of the affected Borrowing, in which case each such portion shall be allocated ratably
among the Lenders holding Loans comprising such Borrowing, and the Loans comprising each such portion shall be considered a separate Borrowing. This Section 2.7 shall not apply to Swingline Borrowings, which may not be converted
or continued. 
 (b) To make an election pursuant to this Section 2.7, the Borrower shall give the Administrative
Agent prior written notice (or telephonic notice promptly confirmed in writing) of each Borrowing (a “Notice of Conversion/Continuation”) that is to be converted or continued, as the case may be, (x) prior to 12:00 noon
on the Business Day of the requested date of a conversion into a Base Rate Borrowing and (y) prior to 12:00 noon three (3) Business Days prior to a continuation of or conversion into a Eurodollar Borrowing. Each such Notice of
Conversion/Continuation shall be irrevocable and shall specify (i) the Borrowing to which such Notice of Continuation/Conversion applies and if different options are being elected with respect to different portions thereof, the portions thereof
that are to be allocated to each resulting Borrowing (in which case the information to be specified pursuant to clauses (iii) and (iv) shall be specified for each resulting Borrowing); (ii) the effective date of the
election made pursuant to such Notice of Continuation/Conversion, which shall be a Business Day, (iii) whether the resulting Borrowing is to be a Base Rate Borrowing or a Eurodollar Borrowing; and (iv) if the resulting Borrowing is to be a
Eurodollar Borrowing, the Interest Period applicable thereto after giving effect to such election, which shall be a period contemplated by the definition of “Interest Period”. If any such Notice of Continuation/Conversion requests a
Eurodollar Borrowing but does not specify an Interest Period, the Borrower shall be deemed to have selected an Interest Period of one month. The principal amount of any resulting Borrowing shall satisfy the minimum borrowing amount for Eurodollar
Borrowings and Base Rate Borrowings set forth in Section 2.3. 
 (c) If, on the expiration of any Interest Period in
respect of any Eurodollar Borrowing, the Borrower shall have failed to deliver a Notice of Conversion/Continuation, then, unless such Borrowing is repaid as provided herein, the Borrower shall be deemed to have elected to convert such Borrowing to a
Base Rate Borrowing. No Borrowing may be converted into, or continued as, a Eurodollar Borrowing if a Default or an Event of Default exists, unless the Administrative Agent and each of the Lenders shall have otherwise consented in writing. No
conversion of any Eurodollar Loans shall be permitted except on the last day of the Interest Period in respect thereof. 
 (d)
Upon receipt of any Notice of Conversion/Continuation, the Administrative Agent shall promptly notify each Lender of the details thereof and of such Lender’s portion of each resulting Borrowing. 

 

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 Section 2.8 Optional Reduction and Termination of Commitments; Extension of
Commitments; Increase of Aggregate Revolving Commitments; Additional Lenders. 
 (a) Unless previously terminated, all
Revolving Commitments shall terminate on the Commitment Termination Date, except that the Swingline Commitment shall terminate on the Swingline Termination Date. 

(b) Upon at least three (3) Business Days’ prior written notice (or telephonic notice promptly confirmed in writing) to the
Administrative Agent (which notice shall be irrevocable), the Borrower may reduce the Aggregate Revolving Commitments in part or terminate the Aggregate Revolving Commitments in whole; provided, that (i) any partial reduction shall apply
to reduce proportionately and permanently the Revolving Commitment of each Lender, (ii) any partial reduction pursuant to this Section 2.8(b) shall be in an amount of at least $5,000,000 and any larger multiple of $1,000,000, and
(iii) no such reduction shall be permitted which would reduce the Aggregate Revolving Commitments to an amount less than the sum of the aggregate outstanding Revolving Credit Exposures of all Lenders. Any such reduction in the Aggregate
Revolving Commitments shall result in a proportionate and permanent reduction (rounded to the next lowest integral multiple of $100,000) in the Swingline Commitment and the LC Commitment. 

(c) So long as no Event of Default has occurred and is continuing, from time to time after the Closing Date, Borrower may, upon at least
30 days’ written notice to the Administrative Agent, who shall promptly notify the Lenders, propose to increase the Aggregate Revolving Commitments up to an amount not to exceed $150,000,000 less the amount of any permanent reductions in the
Aggregate Revolving Commitments pursuant to Section 2.8(b) (the amount of any such increase, the “Additional Revolving Commitment Amount”). Each Lender shall have the right for a period of fifteen (15) days
following receipt of such notice to elect by written notice to the Borrower and the Administrative Agent to increase its Revolving Commitment by a principal amount equal to its Pro Rata Share of the Additional Revolving Commitment Amount. No Lender
(or any successor thereto) shall have any obligation to increase its Revolving Commitment or its other obligations under this Agreement and the other Loan Documents, and any decision by a Lender to increase its Revolving Commitment shall be made in
its sole discretion independently from any other Lender. 
 (d) If any Lender shall not elect to increase its Revolving
Commitment pursuant to subsection (c) of this Section 2.8, the Borrower may, to the extent necessary to increase the Aggregate Revolving Commitments by the then unsubscribed Additional Revolving Commitment Amount, designate
another bank or other financial institution (which may be, but need not be, one or more of the existing Lenders) which at the time agrees to, in the case of any such Person that is an existing Lender, increase its Revolving Commitment and in the
case of any other such Person (an “Additional Lender”), become a party to this Agreement; provided, however, that each Additional Lender must be acceptable to the Administrative Agent in its sole discretion,
which acceptance will not be unreasonably withheld. The sum of the increases in the Revolving Commitments of the existing Lenders plus the Revolving Commitments of the Additional Lenders shall not in the aggregate exceed the Additional Revolving
Commitment Amount. 
 (e) An increase in the aggregate amount of the Revolving Commitments pursuant to this
Section 2.8 shall become effective upon the receipt by the Administrative Agent of an agreement in form and substance satisfactory to the Administrative Agent signed by the Borrower, by each Additional Lender and by each other Lender
whose Revolving Commitment is to be increased, setting forth the new Revolving Commitments of such Lenders and setting forth the agreement of each Additional Lender to become a party to this Agreement and to be bound by all the terms and provisions
hereof, together with a replacement or additional Revolving Credit Note, as applicable, evidencing the new Revolving Commitment of each affected Lender, duly executed and delivered by the Borrower, and such evidence of appropriate corporate
authorization on the part of the Borrower with respect to the increase in the Aggregate Revolving Commitments and other documents with respect to the increase in the Revolving Commitments as the Administrative Agent may reasonably request.

  

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 (f) Upon any increase in the Aggregate Revolving Commitments pursuant to this
Section 2.8 that is not pro rata among all Lenders, (i) within five Business Days in the case of any Base Rate Loans then outstanding, and at the end of the then applicable Interest Period in the case of any Eurodollar Loans then
outstanding, the Borrower shall prepay such Loans in their entirety and, to the extent the Borrower elects to do so and subject to the conditions specified in Article III hereof, the Borrower shall reborrow Loans from the Lenders in proportion to
their Pro Rata Share after giving effect to such increase, until such time as all outstanding Loans are held by the Lenders in such proportion and (ii) effective upon such increase, the amount of the participations held by each Lender in each
Letter of Credit then outstanding shall be deemed adjusted such that, after giving effect to such adjustments, the Lenders shall hold participations in each such Letter of Credit in the proportion its respective Revolving Commitment bears to the
Aggregate Revolving Commitments after giving effect to such increase. 
 Section 2.9 Repayment of Loans.

 (a) The outstanding principal amount of all Revolving Loans shall be due and payable on the Commitment Termination Date.
Interest on all Revolving Loans shall be payable as set forth in Section 2.12(d). 
 (b) The principal amount of
each Swingline Loan shall be due and payable on the earlier of (i) the date ten Business Days after such Loan is made and (ii) the Swingline Termination Date. Interest on all Swingline Loans shall be payable as set forth in
Section 2.12(d). 
 Section 2.10 Evidence of Indebtedness. 

(a) Each Lender shall maintain in accordance with its usual practice appropriate records evidencing the indebtedness of the Borrower to
such Lender resulting from each Loan made by such Lender from time to time, including the amounts of principal and interest payable thereon and paid to such Lender from time to time under this Agreement. The Administrative Agent shall maintain
appropriate records in which shall be recorded (i) the Revolving Commitment of each Lender, (ii) the amount of each Loan made hereunder by each Lender, the Class and Type thereof and the Interest Period applicable thereto, (iii) the
date of each continuation thereof pursuant to Section 2.7, (iv) the date of each conversion of all or a portion thereof to another Type pursuant to Section 2.7, (v) the date and amount of any principal or interest
due and payable or to become due and payable from the Borrower to each Lender hereunder in respect of such Loans and (vi) both the date and amount of any sum received by the Administrative Agent hereunder from the Borrower in respect of the
Loans and each Lender’s Pro Rata Share thereof. The entries made in such records shall be prima facie evidence of the existence and amounts of the obligations of the Borrower therein recorded; provided, that the failure or delay
of any Lender or the Administrative Agent in maintaining or making entries into any such record or any error therein shall not in any manner affect the obligation of the Borrower to repay the Loans (both principal and unpaid accrued interest) of
such Lender in accordance with the terms of this Agreement. 
 (b) At the request of any Lender (including the Swingline Lender)
at any time, the Borrower agrees that it will execute and deliver to such Lender a Revolving Credit Note, and, in the case of the Swingline Lender only, a Swingline Note, payable to the order of such Lender. At the request of the Borrower, any such
Revolving Credit Note or Swingline Note may be executed and delivered by the Borrower outside of the State of Florida in such location within the continental United States as may reasonably be acceptable to the Administrative Agent. 

 

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 Section 2.11 Prepayments. 

(a) Mandatory Prepayments. The Borrower shall be required to make mandatory principal prepayments to the Administrative Agent
without the Administrative Agent’s further demand therefor if, as of any fiscal quarter end of the Borrower, the sum of the aggregate outstanding Revolving Credit Exposures of all Lenders exceed the aggregate amount that the Borrower would then
have been entitled to borrow or retain under the applicable provisions of Section 2.1. Such mandatory principal prepayment shall be in the amount necessary to reduce the sum of the aggregate outstanding Revolving Credit Exposures of all
Lenders to the maximum amount that the Borrower then would be entitled to borrow or retain hereunder and shall be made, in any event, within ten (10) days after the end of the applicable fiscal quarter end of Borrower. 

(b) Optional Prepayments. The Borrower shall have the right at any time and from time to time to prepay any Borrowing, in whole or
in part, without premium or penalty, by giving irrevocable written notice (or telephonic notice promptly confirmed in writing) to the Administrative Agent no later than 12:00 noon, (i) in the case of prepayment of any Eurodollar Borrowing, not
less than three (3) Business Days prior to any such prepayment, (ii) in the case of any prepayment of any Base Rate Borrowing, on the Business Day of such prepayment, and (iii) in the case of Swingline Borrowings, on the date of such
prepayment. Each such notice shall be irrevocable and shall specify the proposed date of such prepayment and the principal amount of each Borrowing or portion thereof to be prepaid. Upon receipt of any such notice, the Administrative Agent shall
promptly notify each affected Lender of the contents thereof and of such Lender’s Pro Rata Share of any such prepayment. If such notice is given, the aggregate amount specified in such notice shall be due and payable on the date designated in
such notice, together with accrued interest to such date on the amount so prepaid in accordance with Section 2.12(d); provided, that if a Eurodollar Borrowing is prepaid on a date other than the last day of an Interest Period
applicable thereto, the Borrower shall also pay all amounts required pursuant to Section 2.18. Each partial prepayment of any Loan (other than a Swingline Loan) shall be in an amount that would be permitted in the case of an advance of a
Revolving Borrowing of the same Type pursuant to Section 2.3 or in the case of a Swingline Loan pursuant to Section 2.5. Each prepayment of a Borrowing shall be applied ratably to the Loans comprising such Borrowing.

 Section 2.12 Interest on Loans. 

(a) The Borrower shall pay interest on each Base Rate Loan at the Base Rate in effect from time to time and on each Eurodollar Loan at
the Adjusted LIBO Rate for the applicable Interest Period in effect for such Loan, plus, in each case, the Applicable Margin in effect from time to time but, in no event, to exceed the Maximum Rate. 

(b) The Borrower shall pay interest on each Swingline Loan at the Swingline Rate in effect from time to time but, in no event, to exceed
the Maximum Rate. 
 (c) While an Event of Default exists or after acceleration, at the option of the Required Lenders, the
Borrower shall pay interest (“Default Interest”) with respect to all Eurodollar Loans at the rate otherwise applicable for the then-current Interest Period plus an additional two percent (2%) per annum until the last day
of such Interest Period, and thereafter, and with respect to all Base Rate Loans (including all Swingline Loans) and all other Obligations hereunder (other than Loans), at an all-in rate in effect for Base Rate Loans (i.e., including Applicable
Margin), plus an additional 2% per annum. 
  

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 (d) Interest on the principal amount of all Loans shall accrue from and including the date
such Loans are made to but excluding the date of any repayment thereof. Interest on all outstanding Base Rate Loans shall be payable quarterly in arrears on the last Business Day of each fiscal quarter of the Borrower and on the Commitment
Termination Date. Interest on all outstanding Eurodollar Loans shall be payable on the last day of each Interest Period applicable thereto, and, in the case of any Eurodollar Loans having an Interest Period in excess of three months, on each day
which occurs every three months after the initial date of such Interest Period, and on the Commitment Termination Date. Interest on each Swingline Loan shall be payable quarterly in arrears on the last Business Day of each fiscal quarter of the
Borrower and on the Swingline Termination Date. Interest on any Loan which is converted into a Loan of another Type or which is repaid or prepaid shall be payable on the date of such conversion or on the date of any such repayment or prepayment (on
the amount repaid or prepaid) thereof. All Default Interest shall be payable on demand. 
 (e) The Administrative Agent shall
determine each interest rate applicable to the Loans hereunder and shall promptly notify the Borrower and the Lenders of such rate in writing (or by telephone, promptly confirmed in writing). Any such determination shall be conclusive and binding
for all purposes, absent manifest error. 
 Section 2.13 Fees. 

(a) Administrative Agent Fees. The Borrower shall pay to the Administrative Agent for its own account fees in the amounts and at
the times previously agreed upon the Borrower and the Administrative Agent. 
 (b) Commitment Fees. The Borrower agrees
to pay to the Administrative Agent for the account of each Lender a commitment fee, which shall accrue at the Applicable Percentage (determined quarterly in accordance with Schedule I) on the average daily amount of the unused Revolving
Commitment of such Lender during the Availability Period; provided, that if such Lender continues to have any Revolving Credit Exposure after the Commitment Termination Date, then the commitment fee shall continue to accrue on the average
daily amount of such Lender’s unused Revolving Commitment from and after the Commitment Termination Date to the date that all of such Lender’s Revolving Credit Exposure has been paid in full; provided further that, as
set forth in Section 10.15, no such fee shall be payable for the account of any Defaulting Lender during the applicable Default Period. The Applicable Percentage shall initially be 0.100%, but shall be reset from time to time as provided
in the definition of “Applicable Percentage” herein. Accrued commitment fees shall be payable in arrears on the last Business Day of each fiscal quarter of the Borrower and on the Commitment Termination Date, commencing on the first such
date after the Closing Date; provided that any commitment fees accruing after the Commitment Termination Date shall be payable on demand. For purposes of computing commitment fees with respect to the Revolving Commitments, the Revolving
Commitment of each Lender shall be deemed used to the extent of the outstanding Revolving Loans and LC Exposure of such Lender (but outstanding Swingline Loans shall not be deemed usage of the Revolving Commitment of each Lender). 

(c) Letter of Credit Fees. The Borrower agrees to pay (i) to the Administrative Agent, for the account of each Lender, a
letter of credit fee with respect to its participation in each Letter of Credit, which shall accrue at the Applicable Margin then in effect for Eurodollar Borrowings on the average daily amount of such Lender’s LC Exposure (excluding any
portion thereof attributable to unreimbursed LC Disbursements) attributable to such Letter of Credit during the period from and including the date of issuance of such Letter of Credit to but excluding the date on which such Letter expires or is
drawn in full (including without limitation any LC Exposure that remains outstanding after the Commitment Termination Date); provided, however, as set forth in Section 10.15, any letter of credit fees otherwise payable for
the account of a Defaulting Lender with respect to any Letter of Credit as to which such Defaulting Lender has not provided Cash Collateral or other credit support arrangements satisfactory pursuant to Section 2.22 shall be payable for
the account of the Issuing Bank, and (ii) to the Issuing Bank for its own account a fronting fee, which shall accrue at the rate of 0.125% per annum on the average daily amount of the LC Exposure (excluding any portion thereof attributable
to unreimbursed LC Disbursements) during the Availability Period (or until the date that such Letter of Credit is irrevocably cancelled, whichever is later), as well as the Issuing Bank’s standard fees with respect to issuance, amendment,
renewal or extension of any Letter of Credit or processing of drawings thereunder. 
  

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 (d) Payments. Accrued fees shall be payable quarterly in arrears on the last Business
Day of each fiscal quarter of the Borrower, commencing on September 30, 2007 and on the Commitment Termination Date (and if later, the date the Loans and LC Exposure shall be repaid in their entirety). 

Section 2.14 Computation of Interest and Fees. All computations of interest for Base Rate Loans shall be made on the
basis of a year of 365 or 366 days, as the case may be, and actual days elapsed. All other computations of fees and interest shall be made on the basis of a 360-day year and actual days elapsed (which results in more fees or interest, as applicable,
being paid than if computed on the basis of a 365-day year). Interest shall accrue on each Loan for the day on which the Loan is made, and shall not accrue on a Loan, or any portion thereof, for the day on which the Loan or such portion is paid,
provided that any Loan that is repaid on the same day on which it is made shall, subject to Section 2.20, bear interest for one day. Each determination by the Administrative Agent of an interest rate or fee hereunder shall be
conclusive and binding for all purposes, absent manifest error. 
 Section 2.15 Inability to Determine Interest
Rates. If prior to the commencement of any Interest Period for any Eurodollar Borrowing: 
 (a) the Administrative Agent
shall have determined (which determination shall be conclusive and binding upon the Borrower) that, by reason of circumstances affecting the relevant interbank market, adequate means do not exist for ascertaining LIBOR for such Interest Period; or

 (b) the Administrative Agent shall have received notice from the Required Lenders that the Adjusted LIBO Rate does not
adequately and fairly reflect the cost to such Lenders (or Lender, as the case may be) of making, funding or maintaining their (or its, as the case may be) Eurodollar Loans for such Interest Period; 

then the Administrative Agent shall give written notice (or telephonic notice, promptly confirmed in writing) to the Borrower and to the Lenders as soon
as practicable thereafter. In the case of Eurodollar Loans, until the Administrative Agent shall notify the Borrower and the Lenders that the circumstances giving rise to such notice no longer exist, (i) the obligations of the Lenders to make
Eurodollar Revolving Loans or to continue or convert outstanding Loans as or into Eurodollar Loans shall be suspended and (ii) all such affected Loans shall be converted into Base Rate Loans on the last day of the then current Interest Period
applicable thereto unless the Borrower prepays such Loans in accordance with this Agreement. Unless the Borrower notifies the Administrative Agent at least one (1) Business Day before the date of any Eurodollar Revolving Borrowing for which a
Notice of Revolving Borrowing has previously been given that it elects not to borrow on such date, then such Revolving Borrowing shall be made as a Base Rate Borrowing. 

Section 2.16 Illegality. If any Change in Law shall make it unlawful or impossible for any Lender to make, maintain or
fund any Eurodollar Loan and such Lender shall so notify the Administrative Agent, the Administrative Agent shall promptly give notice thereof to the Borrower and the other Lenders, whereupon until such Lender notifies the Administrative Agent and
the Borrower that the circumstances giving rise to such suspension no longer exist, the obligation of such Lender to make Eurodollar Revolving Loans, or to continue or convert outstanding Loans as or into Eurodollar Loans, shall be suspended. In the
case of the making of a Eurodollar Revolving Borrowing, such Lender’s Revolving Loan shall be made as a Base Rate Loan as part of the same Revolving Borrowing for the same Interest Period and if the affected Eurodollar Loan is then outstanding,
such Loan shall be converted to a Base Rate Loan either (a) on the last day of the then current Interest Period applicable to such Eurodollar Loan if such Lender may lawfully continue to maintain such Loan to such date or (b) immediately
if such Lender shall determine that it may not lawfully continue to maintain such Eurodollar Loan to such date. Notwithstanding the foregoing, the affected Lender shall, prior to giving such notice to the Administrative Agent, designate a different
Applicable Lending Office if such designation would avoid the need for giving such notice and if such designation would not otherwise be disadvantageous to such Lender in the good faith exercise of its discretion. 

 

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 Section 2.17 Increased Costs. 

(a) If any Change in Law shall: 

(i) impose, modify or deem applicable any reserve, special deposit or similar requirement that is not otherwise included
in the determination of the Adjusted LIBO Rate hereunder against assets of, deposits with or for the account of, or credit extended by, any Lender (except any such reserve requirement reflected in the Adjusted LIBO Rate) or the Issuing Bank; or

 (ii) impose on any Lender or on the Issuing Bank or the eurodollar interbank market any other condition
affecting this Agreement or any Eurodollar Loans made by such Lender or any Letter of Credit or any participation therein; 
 and the result of
the foregoing is to increase the cost to such Lender of making, converting into, continuing or maintaining a Eurodollar Loan or to increase the cost to such Lender or the Issuing Bank of participating in or issuing any Letter of Credit or to reduce
the amount received or receivable by such Lender or the Issuing Bank hereunder (whether of principal, interest or any other amount), then the Borrower shall promptly pay, upon written notice from and demand by such Lender on the Borrower (with a
copy of such notice and demand to the Administrative Agent), to the Administrative Agent for the account of such Lender, within five (5) Business Days after the date of such notice and demand, additional amount or amounts sufficient to
compensate such Lender or the Issuing Bank, as the case may be, for such additional costs incurred or reduction suffered. 
 (b)
If any Lender or the Issuing Bank shall have determined that on or after the date of this Agreement any Change in Law regarding capital requirements has or would have the effect of reducing the rate of return on such Lender’s or the Issuing
Bank’s capital (or on the capital of such Lender’s or the Issuing Bank’s parent corporation) as a consequence of its obligations hereunder or under or in respect of any Letter of Credit to a level below that which such Lender or the
Issuing Bank or such Lender’s or the Issuing Bank’s parent corporation could have achieved but for such Change in Law, then, from time to time, within five (5) Business Days after receipt by the Borrower of written demand by such
Lender (with a copy thereof to the Administrative Agent), the Borrower shall pay to such Lender such additional amounts as will compensate such Lender or the Issuing Bank or such Lender’s or the Issuing Bank’s parent corporation for any
such reduction suffered. 
 (c) A certificate of a Lender or the Issuing Bank setting forth the amount or amounts necessary to
compensate such Lender or the Issuing Bank or such Lender’s or the Issuing Bank’s parent corporation, as the case may be, specified in paragraph (a) or (b) of this Section 2.17 shall be delivered to the Borrower (with
a copy to the Administrative Agent) and shall be conclusive, absent manifest error. The Borrower shall pay any such Lender or the Issuing Bank, as the case may be, such amount or amounts within ten (10) days after receipt thereof. 

 

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 (d) Failure or delay on the part of any Lender or the Issuing Bank to demand compensation
pursuant to this Section 2.17 shall not constitute a waiver of such Lender’s or the Issuing Bank’s right to demand such compensation. 

Section 2.18 Funding Indemnity. In the event of (a) the payment of any principal of a Eurodollar Loan other than
on the last day of the Interest Period applicable thereto (including as a result of an Event of Default), (b) the conversion or continuation of a Eurodollar Loan other than on the last day of the Interest Period applicable thereto, or
(c) the failure by the Borrower to borrow, prepay, convert or continue any Eurodollar Loan on the date specified in any applicable notice (regardless of whether such notice is withdrawn or revoked), then, in any such event, the Borrower shall
compensate each Lender, within five (5) Business Days after written demand from such Lender, for any loss, cost or expense attributable to such event. In the case of a Eurodollar Loan, such loss, cost or expense shall be deemed to include an
amount determined by such Lender to be the excess, if any, of (i) the amount of interest that would have accrued on the principal amount of such Eurodollar Loan if such event had not occurred at the Adjusted LIBO Rate applicable to such
Eurodollar Loan for the period from the date of such event to the last day of the then current Interest Period therefor (or in the case of a failure to borrow, convert or continue, for the period that would have been the Interest Period for such
Eurodollar Loan) over (ii) the amount of interest that would accrue on the principal amount of such Eurodollar Loan for the same period if the Adjusted LIBO Rate were set on the date such Eurodollar Loan was prepaid or converted or the date on
which the Borrower failed to borrow, convert or continue such Eurodollar Loan. A certificate as to any additional amount payable under this Section 2.18 submitted to the Borrower by any Lender shall be conclusive, absent manifest error.

 Section 2.19 Taxes. 

(a) Any and all payments by or on account of any obligation of the Borrower hereunder shall be made free and clear of and without
deduction for any Indemnified Taxes or Other Taxes; provided, that if the Borrower shall be required to deduct any Indemnified Taxes or Other Taxes from such payments, then (i) the sum payable shall be increased as necessary so that
after making all required deductions (including deductions applicable to additional sums payable under this Section 2.19) the Administrative Agent, any Lender or the Issuing Bank (as the case may be) shall receive an amount equal to the
sum it would have received had no such deductions been made, (ii) the Borrower shall make such deductions and (iii) the Borrower shall pay the full amount deducted to the relevant Governmental Authority in accordance with applicable law.

 (b) In addition, the Borrower shall pay any Other Taxes to the relevant Governmental Authority in accordance with applicable
law. 
 (c) The Borrower shall indemnify the Administrative Agent, each Lender and the Issuing Bank, within five
(5) Business Days after written demand therefor, for the full amount of any Indemnified Taxes or Other Taxes paid by the Administrative Agent, such Lender or the Issuing Bank, as the case may be, on or with respect to any payment by or on
account of any obligation of the Borrower hereunder (including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts payable under this Section 2.19) and any penalties, interest and reasonable expenses
arising therefrom or with respect thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability
delivered to the Borrower by a Lender or the Issuing Bank, or by the Administrative Agent on its own behalf or on behalf of a Lender or the Issuing Bank, shall be conclusive absent manifest error. 

 

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 (d) As soon as practicable after any payment of Indemnified Taxes or Other Taxes by the
Borrower to a Governmental Authority, the Borrower shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or
other evidence of such payment reasonably satisfactory to the Administrative Agent. 
 (e) Any Foreign Lender that is entitled
to an exemption from or reduction of withholding tax under the law of the jurisdiction in which the Borrower is located, or any treaty to which such jurisdiction is a party, with respect to payments under this Agreement shall deliver to the Borrower
(with a copy to the Administrative Agent), at the time or times prescribed by applicable law, such properly completed and executed documentation prescribed by applicable law or reasonably requested by the Borrower as will permit such payments to be
made without withholding or at a reduced rate. Without limiting the generality of the foregoing, each Foreign Lender agrees that it will deliver to the Administrative Agent and the Borrower (or in the case of a Participant, to the Lender from which
the related participation shall have been purchased) (i) two (2) duly completed copies of Internal Revenue Service Form 1001 or 4224, or any successor form thereto, as the case may be, certifying in each case that such Foreign Lender is
entitled to receive payments made by the Borrower hereunder and under the Notes payable to it, without deduction or withholding of any United States federal income taxes and (ii) a duly completed Internal Revenue Service Form W-8 or W-9, or any
successor form thereto, as the case may be, to establish an exemption from United State backup withholding tax. Each such Foreign Lender shall deliver to the Borrower and the Administrative Agent such forms on or before the date that it becomes a
party to this Agreement (or in the case of a Participant, on or before the date such Participant purchases the related participation). In addition, each such Lender shall deliver such forms promptly upon the obsolescence or invalidity of any form
previously delivered by such Lender. Each such Lender shall promptly notify the Borrower and the Administrative Agent at any time that it determines that it is no longer in a position to provide any previously delivered certificate to the Borrower
(or any other form of certification adopted by the U.S. taxing authorities for such purpose). 
 Section 2.20
Payments Generally; Pro Rata Treatment; Sharing of Set-offs. 
 (a) The Borrower shall make each payment required to
be made by it hereunder (whether of principal, interest, fees or reimbursement of LC Disbursements, or of amounts payable under Section 2.17, 2.18, 2.19, or 10.3, or otherwise) and each optional prepayment permitted
by Section 2.11(b) prior to 12:00 noon, on the date when due, in immediately available funds, without set-off or counterclaim. Any amounts received after such time on any date may, in the discretion of the Administrative Agent, be deemed
to have been received on the next succeeding Business Day for purposes of calculating interest thereon. All such payments shall be made to the Administrative Agent at the Payment Office, except payments to be made directly to the Issuing Bank or
Swingline Lender as expressly provided herein and except that payments pursuant to Sections 2.17, 2.18, 2.19 and 10.3 shall be made directly to the Persons entitled thereto. The Administrative Agent shall distribute any
such payments received by it for the account of any other Person to the appropriate recipient promptly following receipt thereof. If any payment hereunder shall be due on a day that is not a Business Day, the date for payment shall be extended to
the next succeeding Business Day, and, in the case of any payment accruing interest, interest thereon shall be made payable for the period of such extension. All payments hereunder shall be made in Dollars. 

(b) If at any time insufficient funds are received by and available to the Administrative Agent to pay fully all amounts of principal,
unreimbursed LC Disbursements, interest and fees then due hereunder, such funds shall be applied (i) first, towards payment of interest and fees then due hereunder, ratably among the parties entitled thereto in accordance with the
amounts of interest and fees then due to such parties, and (ii) second, towards payment of principal and unreimbursed LC Disbursements then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of
principal and unreimbursed LC Disbursements then due to such parties. 
  

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 (c) If any Lender shall, by exercising any right of set-of or counterclaim or otherwise,
obtain payment in respect of any principal of or interest on any of its Revolving Loans or participations in LC Disbursements or Swingline Loans that would result in such Lender receiving payment of a greater proportion of the aggregate amount of
its Revolving Loans and participations in LC Disbursements and Swingline Loans and accrued interest thereon than the proportion received by any other Lender, then the Lender receiving such greater proportion shall purchase (for cash at face value)
participations in the Revolving Loans and participations in LC Disbursements and Swingline Loans of other Lenders to the extent necessary so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the
aggregate amount of principal of and accrued interest on their respective Revolving Loans and participations in LC Disbursements and Swingline Loans; provided, that (i) if any such participations are purchased and all or any portion of
the payment giving rise thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest, and (ii) the provisions of this paragraph shall not be construed to apply to
any payment made by the Borrower pursuant to and in accordance with the express terms of this Agreement or any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans or participations in LC
Disbursements or Swingline Loans to any assignee or participant, other than to the Borrower or any Subsidiary or Affiliate thereof (as to which the provisions of this paragraph shall apply). The Borrower consents to the foregoing and agrees, to the
extent it may effectively do so under applicable law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against the Borrower rights of set-off and counterclaim with respect to such participation as fully
as if such Lender were a direct creditor of the Borrower in the amount of such participation. 
 (d) Unless the Administrative
Agent shall have received notice from the Borrower prior to the date on which any payment is due to the Administrative Agent for the account of the Lenders or the Issuing Bank hereunder that the Borrower will not make such payment, the
Administrative Agent may assume that the Borrower has made such payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the Lenders or the Issuing Bank, as the case may be, the amount or amounts due. In
such event, if the Borrower has not in fact made such payment, then each of the Lenders or the Issuing Bank, as the case may be, severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender or
Issuing Bank with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to the Administrative Agent, at the greater of the Federal Funds Rate and a rate determined by the
Administrative Agent in accordance with banking industry rules on interbank compensation. 
 (e) If any Lender shall fail to
make any payment required to be made by it pursuant to Sections 2.5(b), 2.6(b), 2.20(d), 2.22(d) or (e) or 10.3(d), then the Administrative Agent may, in its discretion (notwithstanding any contrary
provision hereof), apply any amounts thereafter received by the Administrative Agent for the account of such Lender to satisfy such Lender’s obligations under such Sections until all such unsatisfied obligations are fully paid. 

Section 2.21 Mitigation of Obligations; Replacement of Lenders. 

(a) If any Lender requests compensation under Section 2.17, or if the Borrower is required to pay any additional amount to
any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.19, then such Lender shall use reasonable efforts to designate a different lending office for funding or booking its Loans hereunder or to
assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the sole judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable under Section 2.17
or Section 2.19, as the case may be, in the future and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender. The Borrower hereby agrees to pay all costs and
expenses incurred by any Lender in connection with such designation or assignment. 
  

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 (b) If any Lender requests compensation under Section 2.17, or if the Borrower
is required to pay any additional amount to any Lender or any Governmental Authority of the account of any Lender pursuant to Section 2.19, or if any Lender is a Defaulting Lender, then the Borrower may, at its sole expense and effort,
upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions set forth in Section 10.4(b) all its interests, rights and
obligations under this Agreement to an assignee that shall assume such obligations (which assignee may be another Lender); provided, that (i) the Borrower shall have received the prior written consent of the Administrative Agent, which
consent shall not be unreasonably withheld, (ii) such Lender shall have received payment of an amount equal to the outstanding principal amount of all Loans owed to it, accrued interest thereon, accrued fees and all other amounts payable to it
hereunder, from the assignee (in the case of such outstanding principal and accrued interest) and from the Borrower (in the case of all other amounts) and (iii) in the case of a claim for compensation under Section 2.17 or payments
required to be made pursuant to Section 2.19, such assignment will result in a reduction in such compensation or payments. A Lender shall not be required to make any such assignment and delegation if, prior thereto, as a result of a
waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply. 

Section 2.22 Letters of Credit. 

(a) On the Closing Date, SunTrust Bank, as the Issuing Bank of the Existing Letters of Credit, in reliance upon the agreements of the
other Lenders pursuant to Section 2.22(d), agrees to continue the prior issuance of the Existing Letters of Credit on the terms and conditions set forth therein. All Existing Letters of Credit shall be deemed to have been issued pursuant
hereto, and from and after the Closing Date shall be subject to and governed by the terms and conditions hereof. Thereafter during the Availability Period, the Issuing Bank, in reliance upon said agreements of the other Lenders pursuant to
Section 2.22(d), agrees to issue, at the request of the Borrower, Letters of Credit for the account of the Borrower or any Subsidiary Loan Party on the terms and conditions hereinafter set forth; provided, that (i) each
Letter of Credit shall expire on the earlier of (A) the date one year after the date of issuance of such Letter of Credit (or in the case of any renewal or extension thereof, one year after such renewal or extension) and (B) the date that
is five (5) Business Days prior to the Commitment Termination Date; (ii) each Letter of Credit may be in any stated amount subject, however, to the provisions of clause (iii) hereof; (iii) neither the Borrower nor
any Subsidiary Loan Party may request any Letter of Credit, if, after giving effect to such issuance (A) the aggregate LC Exposure would exceed the LC Commitment or (B) the sum of the aggregate outstanding Revolving Credit Exposures of all
Lenders would exceed the Aggregate Revolving Commitments; and (iv) if at the time of such request any Lender is a Defaulting Lender or any Person that Controls such Lender is a Distressed Person, the Issuing Bank shall have entered into
arrangements satisfactory to the Issuing Bank (in its sole discretion) with the Borrower or such Lender to eliminate the Issuing Bank’s actual or potential risk with respect to such Lender. Upon the issuance of each Letter of Credit (which, as
set forth in the definition thereof, includes each Existing Letter of Credit set forth on Schedule 2.22), each Lender shall be deemed to, and hereby irrevocably and unconditionally agrees to, purchase from the Issuing Bank without recourse a
participation in such Letter of Credit equal to such Lender’s Pro Rata Share of the aggregate amount available to be drawn under such Letter of Credit. Each issuance of a Letter of Credit shall be deemed to utilize the Revolving Commitment of
each Lender by an amount equal to the amount of such participation. 
  

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 (b) To request the issuance of a Letter of Credit (or any amendment, renewal or extension of
an outstanding Letter of Credit), the Borrower shall give the Issuing Bank and the Administrative Agent irrevocable written notice at least three (3) Business Days prior to the requested date of such issuance specifying the date (which shall be
a Business Day) such Letter of Credit is to be issued (or amended, extended or renewed, as the case may be), the expiration date of such Letter of Credit, the amount of such Letter of Credit, the name and address of the beneficiary thereof and such
other information as shall be necessary to prepare, amend, renew or extend such Letter of Credit. In addition to the satisfaction of the conditions in Article III, the issuance of such Letter of Credit (or any amendment which increases the
amount of such Letter of Credit) will be subject to the further conditions that such Letter of Credit shall be in such form and contain such terms as the Issuing Bank shall approve and that the Borrower shall have executed and delivered any
additional applications, agreements and instruments relating to such Letter of Credit as the Issuing Bank shall reasonably require; provided, that in the event of any conflict between such applications, agreements or instruments and this
Agreement, the terms of this Agreement shall control. 
 (c) At least two (2) Business Days prior to the issuance of any
Letter of Credit, the Issuing Bank will confirm with the Administrative Agent (by telephone or in writing) that the Administrative Agent has received such notice and if not, the Issuing Bank will provide the Administrative Agent with a copy thereof.
Unless the Issuing Bank has received notice from the Administrative Agent on or before the Business Day immediately preceding the date the Issuing Bank is to issue the requested Letter of Credit directing the Issuing Bank not to issue the Letter of
Credit because such issuance is not then permitted hereunder because of the limitations set forth in Section 2.22(a) or that one or more conditions specified in Article III are not then satisfied, then, subject to the terms and
conditions hereof, the Issuing Bank shall, on the requested date, issue such Letter of Credit in accordance with the Issuing Bank’s usual and customary business practices. 

(d) The Issuing Bank shall examine all documents purporting to represent a demand for payment under a Letter of Credit promptly following
its receipt thereof. The Issuing Bank shall notify the Borrower and the Administrative Agent of such demand for payment and whether the Issuing Bank has made or will make a LC Disbursement thereunder; provided, that any failure to give or
delay in giving such notice shall not relieve the Borrower of its obligation to reimburse the Issuing Bank and the Lenders with respect to such LC Disbursement. The Borrower shall be irrevocably and unconditionally obligated to reimburse the Issuing
Bank for any LC Disbursements paid by the Issuing Bank in respect of such drawing, without presentment, demand or other formalities of any kind. Unless the Borrower shall have notified the Issuing Bank and the Administrative Agent prior to 12:00
noon on the Business Day immediately prior to the date on which such drawing is honored that the Borrower intends to reimburse the Issuing Bank for the amount of such drawing in funds other than from the proceeds of Revolving Loans, the Borrower
shall be deemed to have timely given a Notice of Revolving Borrowing to the Administrative Agent requesting the Lenders to make a Base Rate Borrowing on the date on which such drawing is honored in an exact amount due to the Issuing Bank;
provided, that for purposes solely of such Borrowing, the conditions precedents set forth in Section 3.2 hereof shall not be applicable. The Administrative Agent shall notify the Lenders of such Borrowing in accordance with
Section 2.3, and each Lender shall make the proceeds of its Base Rate Loan included in such Borrowing available to the Administrative Agent for the account of the Issuing Bank in accordance with Section 2.6. The proceeds of
such Borrowing shall be applied directly by the Administrative Agent to reimburse the Issuing Bank for such LC Disbursement. 
  

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 (e) If for any reason a Base Rate Borrowing may not be (as determined in the sole discretion
of the Administrative Agent), or is not, made in accordance with the foregoing provisions, then each Lender (other than the Issuing Bank) shall be obligated to fund the participation that such Lender purchased pursuant to subsection
(a) in an amount equal to its Pro Rata Share of such LC Disbursement on and as of the date which such Base Rate Borrowing should have occurred. Each Lender’s obligation to fund its participation shall be absolute and unconditional and
shall not be affected by any circumstance, including without limitation (i) any setoff, counterclaim, recoupment, defense or other right that such Lender or any other Person may have against the Issuing Bank or any other Person for any reason
whatsoever, (ii) the existence of a Default or an Event of Default (other than an Event of Default in existence at the time of the issuance of any Letter of Credit by the Issuing Bank of which the Issuing Bank had actual knowledge) or the
termination of the Aggregate Revolving Commitments, (iii) any adverse change in the condition (financial or otherwise) of the Borrower or any of its Subsidiaries, (iv) any breach of this Agreement by the Borrower or any other Lender,
(v) any amendment, renewal or extension of any Letter of Credit or (vi) any other circumstance, happening or event whatsoever, whether or not similar to any of the foregoing. On the date that such participation is required to be funded,
each Lender shall promptly transfer, in immediately available funds, the amount of its participation to the Administrative Agent for the account of the Issuing Bank. Whenever, at any time after the Issuing Bank has received from any such Lender the
funds for its participation in a LC Disbursement, the Issuing Bank (or the Administrative Agent on its behalf) receives any payment on account thereof, the Administrative Agent or the Issuing Bank, as the case may be, will distribute to such Lender
its Pro Rata Share of such payment; provided, that if such payment is required to be returned for any reason to the Borrower or to a trustee, receiver, liquidator, custodian or similar official in any bankruptcy proceeding, such Lender will
return to the Administrative Agent or the Issuing Bank any portion thereof previously distributed by the Administrative Agent or the Issuing Bank to it. 

(f) To the extent that any Lender shall fail to pay any amount required to be paid pursuant to paragraph (d) of this
Section 2.22 on the due date therefor, such Lender shall pay interest to the Issuing Bank (through the Administrative Agent) on such amount from such due date to the date such payment is made at a rate per annum equal to the Federal
Funds Rate; provided, that if such Lender shall fail to make such payment to the Issuing Bank within three (3) Business Days of such due date, then, retroactively to the due date, such Lender shall be obligated to pay Default Interest on
such amount. 
 (g) If any Event of Default shall occur and be continuing, on the Business Day that the Borrower receives notice
from the Administrative Agent or the Required Lenders demanding the deposit of Cash Collateral pursuant to this paragraph, the Borrower shall deposit in an account with the Administrative Agent, in the name of the Administrative Agent and for the
benefit of the Lenders, an amount in cash equal to the LC Exposure as of such date plus any accrued and unpaid interest thereon; provided, that the obligation to deposit such Cash Collateral shall become effective immediately, and such
deposit shall become immediately due and payable, without demand or notice of any kind, upon the occurrence of any Event of Default with respect to the Borrower described in clause (g) or (h) of Section 8.1. Such
deposit shall be held by the Administrative Agent as collateral for the payment and performance of the obligations of the Borrower under this Agreement. The Administrative Agent shall have exclusive dominion and control, including the exclusive
right of withdrawal, over such account. At the request of the Borrower, the Administrative Agent shall hold such deposit in an interest-bearing money market demand deposit account at the Borrower’s risk and expense; otherwise, such deposit
shall not bear interest. Interest and profits, if any, on such investments shall accumulate in such account. Moneys in such account shall applied by the Administrative Agent to reimburse the Issuing Bank for LC Disbursements for which it had not
been reimbursed and to the extent so applied, shall be held for the satisfaction of the reimbursement obligations of the Borrower for the LC Exposure at such time or, if the maturity of the Loans has been accelerated, with the consent of the
Required Lenders, be applied to satisfy other obligations of the Borrower under this Agreement. If the Borrower is required to provide an amount of Cash Collateral hereunder as a result of the occurrence of an Event of Default, such amount (to the
extent not so applied as aforesaid) shall be returned to the Borrower with three (3) Business Days after all Events of Default have been cured or waived. 
  

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 Notwithstanding anything to the contrary contained in this Agreement, (A) Cash
Collateral or other credit support (and proceeds thereof) provided by any Lender pursuant to Section 2.22(g) to support the obligations of such Lender in respect of Letters of Credit shall be held and applied, first, to fund the
LC Disbursements of such Lender or such Lender’s Pro Rata Share of Base Rate Loans arising from Letters of Credit with respect to which such Cash Collateral or other credit support was provided, as contemplated by the foregoing provisions of
this Section 2.22, and, second, to fund (x) the LC Disbursements of such Lender or such Lender’s Pro Rata Share of Base Rate Loans arising from any other Letters of Credit, as contemplated by the foregoing provisions of
this Section 2.22, and (y) any interest accrued for the benefit of the Issuing Bank pursuant to Section 2.22(f) allocable to such Lender, and (B) Cash Collateral and other credit support (and proceeds thereof)
otherwise provided by or on behalf of the Borrower under Section 2.22 to support LC Exposure shall be held and applied, first, to the satisfaction of the specific LC Exposure so supported and, second, if remedies under
Section 8.1 shall have been exercised, to the application of such Cash Collateral or other credit support (or proceeds thereof) to any other Obligations in accordance with Section 8.1. 

Cash Collateral and other credit support provided under this Section 2.22(g) in connection with (x) any Lender’s
status as a Defaulting Lender or (y) the status of any Person that Controls such Lender as a Distressed Person shall be released (except as the Issuing Bank and the Person providing such Cash Collateral or other credit support may agree
otherwise) promptly following the earlier to occur of (A) the termination of the Default Period with respect to such Defaulting Lender or (B) such Person that Controls the Lender ceases to be a Distressed Person; subject,
however, to the additional condition that, as to any such Cash Collateral or other credit support provided by or on behalf of the Borrower, no Default or Event of Default shall then have occurred and be continuing. 

(h) Promptly following the end of each fiscal quarter, the Issuing Bank shall deliver (through the Administrative Agent) to each Lender
and the Borrower a report describing the aggregate Letters of Credit outstanding at the end of such fiscal quarter. Upon the request of any Lender from time to time, the Issuing Bank shall deliver to such Lender any other information reasonably
requested by such Lender with respect to each Letter of Credit then outstanding. 
 (i) The Borrower’s obligation to
reimburse LC Disbursements hereunder shall be absolute, unconditional and irrevocable and shall be performed strictly in accordance with the terms of this Agreement under all circumstances whatsoever and irrespective of any of the following
circumstances: 
 (i) Any lack of validity or enforceability of any Letter of Credit or this Agreement;

 (ii) The existence of any claim, set-off, defense or other right which the Borrower or any Subsidiary or
Affiliate of the Borrower may have at any time against a beneficiary or any transferee of any Letter of Credit (or any Persons or entities for whom any such beneficiary or transferee may be acting), any Lender (including the Issuing Bank) or any
other Person, whether in connection with this Agreement or the Letter of Credit or any document related hereto or thereto or any unrelated transaction; 
  

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 (iii) Any draft or other document presented under a Letter of Credit proving
to be forged, fraudulent or invalid in any respect or any statement therein being untrue or inaccurate in any respect; 

(iv) Payment by the Issuing Bank under a Letter of Credit against presentation of a draft or other document to the Issuing
Bank that does not comply with the terms of such Letter of Credit; 
 (v) Any other event or circumstance
whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions of this Section 2.22, constitute a legal or equitable discharge of, or provide a right of setoff against, the Borrower’s obligations
hereunder; or 
 (vi) The existence of a Default or an Event of Default. 

Neither the Administrative Agent, the Issuing Bank, the Lenders nor any Related Party of any of the foregoing shall have any liability or responsibility
by reason of or in connection with the issuance or transfer of any Letter of Credit or any payment or failure to make any payment thereunder (irrespective of any of the circumstances referred to above), or any error, omission, interruption, loss or
delay in transmission or delivery of any draft, notice or other communication under or relating to any Letter of Credit (including any document required to make a drawing thereunder), any error in interpretation of technical terms or any consequence
arising from causes beyond the control of the Issuing Bank; provided, that the foregoing shall not be construed to excuse the Issuing Bank from liability to the Borrower to the extent of any direct damages (as opposed to consequential
damages, claims in respect of which are hereby waived by the Borrower to the extent permitted by applicable law) suffered by the Borrower that are caused by the Issuing Bank’s failure to exercise care when determining whether drafts or other
documents presented under a Letter of Credit comply with the terms thereof. The parties hereto expressly agree, that in the absence of gross negligence or willful misconduct on the part of the Issuing Bank (as finally determined by a court of
competent jurisdiction), the Issuing Bank shall be deemed to have exercised care in each such determination. In furtherance of the foregoing and without limiting the generality thereof, the parties agree that, with respect to documents presented
that appear on their face to be in substantial compliance with the terms of a Letter of Credit, the Issuing Bank may, in its sole discretion, either accept and make payment upon such documents without responsibility for further investigation,
regardless of any notice or information to the contrary, or refuse to accept and make payment upon such documents if such documents are not in strict compliance with the terms of such Letter of Credit. 

(j)(i) Each standby Letter of Credit shall be subject to the International Standby Practices (ISP98 – International Chamber of
Commerce Publication Number 590), as the same may be amended from time to time, and (ii) each commercial Letter of Credit shall be subject to the rules of the Uniform Customs and Practice for Documentary Credits, as most recently published by
the International Chamber of Commerce at the time of issuance, and (iii) each Letter of Credit, to the extent not inconsistent therewith, shall be subject to the governing law of this Agreement set forth in Section 10.5. 

(k) Letters of Credit Issued for Subsidiaries. Notwithstanding that a Letter of Credit issued or outstanding hereunder is in support of
any obligations of, or is for the account of, a Subsidiary Loan Party, the Borrower shall be obligated to reimburse the Issuing Bank hereunder for any and all drawings under such Letter of Credit. The Borrower hereby acknowledges that the issuance
of Letters of Credit for the account of Subsidiaries inures to the benefit of the Borrower, and that the Borrower’s business derives substantial benefits from the businesses of such Subsidiary Loan Parties. 

 

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 Section 2.23 Extension of Scheduled Commitment Termination Date.

 (a) The Borrower may, by notice to the Administrative Agent (who shall promptly notify the Lenders) not earlier than ninety
(90) days and not later than thirty-five (35) days prior to the first and/or second anniversaries of this Agreement (each such anniversary being a “Modification Date”) request that each Lender extend such
Lender’s Scheduled Commitment Termination Date for an additional year from the Scheduled Commitment Termination Date then in effect hereunder (the “Existing Scheduled Commitment Termination Date”). 

(b) Each Lender, acting in its sole and individual discretion, shall, by notice to the Administrative Agent given not later than the date
specified in the notice from the Administrative Agent (the “Notice Date”), which date shall not be earlier than ten (10) Business Days after the date of such notice and not later than twenty (20) days prior to the
applicable Modification Date, advise the Administrative Agent whether or not such Lender agrees to such extension (and each Lender that determines not to so extend its Maturity Date (a “Non-Extending Lender”) shall notify the
Administrative Agent of such fact promptly after such determination (but in any event no later than the Notice Date) and any Lender that does not so advise the Administrative Agent on or before the Notice Date shall be deemed to be a Non-Extending
Lender). The election of any Lender to agree to such extension shall not obligate any other Lender to so agree. 
 (c) The
Administrative Agent shall notify the Borrower of each Lender’s determination under this Section no later than the date fifteen (15) days prior to the Modification Date (or, if such date is not a Business Day, on the next preceding
Business Day). 
 (d) The Borrower shall have the right (but not the obligation) on or before the Modification Date to replace
each Non-Extending Lender with, and add as “Lenders” under this Agreement in place thereof, one or more Eligible Assignees (each, an “Additional Commitment Lender”) as provided in Section 2.21, each of
which Additional Commitment Lenders shall have entered into an Assignment and Assumption pursuant to which such Additional Commitment Lender shall, effective as of the Modification Date, undertake a Commitment (and, if any such Additional Commitment
Lender is already a Lender, its Commitment shall be in addition to such Lender’s Commitment hereunder on such date). 
 (e)
If (and only if) the total of the Commitments of the Lenders that have agreed to so extend their Scheduled Commitment Termination Date and the additional Commitments of the Additional Commitment Lenders shall be more than 50% of the aggregate amount
of the Commitments in effect immediately prior to the Modification Date, then, effective as of the Modification Date, the Scheduled Commitment Termination Date of each Extending Lender and of each Additional Commitment Lender shall be extended to
the date falling one year after the Existing Scheduled Commitment Termination Date (except that, if such date is not a Business Day, such Scheduled Commitment Termination Date as so extended shall be the next preceding Business Day) and each
Additional Commitment Lender shall thereupon become a “Lender” for all purposes of this Agreement. 
 (f)
Notwithstanding the foregoing, the extension of the Scheduled Commitment Termination Date pursuant to this Section shall not be effective with respect to any Lender unless the Borrower shall deliver to the Administrative Agent a certificate of each
Loan Party dated as of the Modification Date signed by a Responsible Officer of such Loan Party certifying: 

(i) no Default shall have occurred and be continuing on the date of such extension and after giving effect thereto;

  

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 (ii) the representations and warranties contained in this Agreement are true
and correct in all material respects on and as of the date of such extension and after giving effect thereto, as though made on and as of such date (except to the extent that such representations and warranties specifically refer to an earlier date,
in which case they are true and correct in all material respects as of such earlier date); and 
 (iii) on the
Scheduled Commitment Termination Date of each Non-Extending Lender, the Borrower shall prepay any Loans outstanding on such date (and pay any additional amounts required pursuant to Section 2.18) to the extent necessary to keep
outstanding Loans ratable with any revised Pro Rata Share of the respective Lenders effective as of such date. 
 (g) This
Section shall supersede any provisions in Section 2.20 or 10.2 to the contrary. 
 ARTICLE III

 CONDITIONS PRECEDENT TO LOANS AND LETTERS OF CREDIT 

Section 3.1 Conditions To Effectiveness. The obligations of the Lenders (including the Swingline Lender) initially to
make Loans and the obligation of the Issuing Bank initially to issue any Letter of Credit hereunder shall not become effective until the date on which each of the following conditions is satisfied (or waived in accordance with
Section 10.2). 
 (a) The Administrative Agent shall have received all fees and other amounts due and payable on or
prior to the Closing Date, including reimbursement or payment of all out-of-pocket expenses (including reasonable fees, charges and disbursements of counsel to the Administrative Agent) required to be reimbursed or paid by the Borrower hereunder,
under any other Loan Document and under any agreement with the Administrative Agent or Banc of America Securities, LLC, as Arranger. 

(b) The Administrative Agent (or its counsel) shall have received the following: 

(i) a counterpart of this Agreement signed by or on behalf of each party thereto or written evidence satisfactory to the
Administrative Agent (which may include telecopy transmission of a signed signature page of this Agreement) that such party has signed a counterpart of this Agreement; 

(ii) if requested by any Lender, duly executed Notes payable to such Lender; 

(iii) a duly executed Subsidiary Guarantee Agreement and Indemnity and Contribution Agreement; 

(iv) a certificate of the Secretary or Assistant Secretary, or manager or member, as applicable, of each Loan Party,
attaching and certifying copies of its bylaws and of the resolutions of its boards of directors, or partnership agreement or limited liability company operating agreement, or comparable organizational documents and authorizations, authorizing the
execution, delivery and performance of the Loan Documents to which it is a party and certifying the name, title and true signature of each officer of such Loan Party executing the Loan Documents to which it is a party; 

 

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 (v) certified copies of the articles of incorporation or other charter
documents of each Loan Party, together with certificates of good standing or existence, as may be available from the Secretary of State of the jurisdiction of incorporation or organization of such Loan Party and each other jurisdiction where such
Loan Party is required to be qualified to do business as a foreign corporation; 
 (vi) a favorable written
opinion of Moore & Van Allen PLLC, counsel to the Loan Parties, addressed to the Administrative Agent and each of the Lenders, and covering such matters relating to the Loan Parties, the Loan Documents and the transactions contemplated
therein as the Administrative Agent or the Lenders shall reasonably request; 
 (vii) a certificate in the form
of Exhibit 3.1(b)(vii), dated the Closing Date and signed by a Responsible Officer, confirming compliance with the conditions set forth in paragraphs (a), (b) and (c) of Section 3.2 and, further, demonstrating compliance
with Sections 6.1 and 6.2 as of the most recent fiscal quarter ended; 
 (viii) a certificate dated
the Closing Date and signed by a Responsible Officer certifying (A) that since March 31, 2007 there has been no event or condition which has had or could reasonably be expected to have, either individually or in the aggregate, a Material
Adverse Effect, and (B) as to the absence of any action, suit, investigation or proceeding pending or, to the knowledge of the Borrower, threatened in any court or before any arbitrator or governmental authority that could reasonably be
expected to have a Material Adverse Effect; 
 (ix) certified copies of all consents, approvals, authorizations,
registrations or filings required to be made or obtained by each Loan Party in connection with the Loans and any transaction being financed with the proceeds of the Loans; 

(x) duly executed payoff letters, in form and substance satisfactory to the Administrative Agent, executed by each lender
holding Indebtedness to be refinanced at closing, including but not limited to Indebtedness under the Borrower’s $100,000,000 Revolving Credit Agreement dated December 10, 2004, together with evidence satisfactory to the Administrative
Agent as to the termination of the Commitments thereunder, the payment in full of all obligations owing thereunder and the release of any and all liens and security interests securing such obligations; 

(xi) UCC, judgment and tax lien searches in the jurisdiction of the chief executive office and jurisdiction of
incorporation or organization of each Loan Party, together with copies of all financing statements on file in such jurisdictions (with all attachments) and evidence that no Liens exist on any assets or properties of any such Loan Party (other than
Liens permitted by Section 7.2); 
 (xii) a certificate of insurance issued on behalf of insurers of
each Loan Party, describing in reasonable detail the types and amounts of insurance (property and liability) maintained by such Loan Party, naming the Administrative Agent as additional insured under all liability insurance; 

(xiii) duly executed Notices of Borrowing, if applicable; and 

 

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 (xiv) a duly executed funds disbursement agreement. 

Section 3.2 Each Credit Event. The obligation of each Lender to make a Loan on the occasion of any Borrowing and of
the Issuing Bank to issue, amend, renew or extend any Letter of Credit, and the agreement of any Lender to extend the Stated Commitment Termination Date pursuant to Section 2.8 is, in each case subject to the satisfaction of the
following conditions: 
 (a) at the time of and immediately after giving effect to such Borrowing, the issuance, amendment,
renewal or extension of such Letter of Credit or the extension of the Scheduled Commitment Termination Date, as applicable, no Default or Event of Default shall exist; 

(b) all representations and warranties of each Loan Party set forth in the Loan Documents shall be true and correct in all material
respects on and as of the date of such Borrowing, the date of issuance, amendment, extension or renewal of such Letter of Credit or the date of extension of the Scheduled Commitment Termination Date, as applicable, in each case before and after
giving effect thereto, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct as of such earlier date and except that for the purposes of this
Section 3.2 the representations and warranties contained in Sections 4.4(a) and (b) shall be deemed to refer to the most recent statements furnished pursuant to Sections 5.1(a) and (b), respectively;

 (c) since the date of the most recent financial statements of the Borrower described in Section 5.1(a) (or as to
Loans and issuances on the Closing Date, since March 31, 2007), there shall have been no change which has had or could reasonably be expected to have a Material Adverse Effect; 

(d) the Borrower shall have paid all fees payable under this Agreement to the extent then due and payable; and 

(e) the Administrative Agent shall have received such other documents, certificates, information or legal opinions as the Administrative
Agent or the Required Lenders may reasonably request, all in form and substance reasonably satisfactory to the Administrative Agent or the Required Lenders. 

Each Borrowing, each issuance, amendment, extension or renewal of any Letter of Credit and any extension of the Scheduled Commitment
Termination Date shall be deemed to constitute a representation and warranty by the Borrower on the date thereof as to the matters specified in paragraphs (a), (b) and (c) of this Section 3.2. 

Section 3.3 Delivery of Documents. All of the Loan Documents, certificates, legal opinions and other documents and
papers referred to in this Article III, unless otherwise specified, shall be delivered to the Administrative Agent for the account of each of the Lenders and, except for the Notes, in sufficient counterparts or copies for each of the Lenders
and shall be in form and substance satisfactory in all respects to the Administrative Agent. 
 ARTICLE IV 

REPRESENTATIONS AND WARRANTIES 

The Borrower represents and warrants to the Administrative Agent and each Lender as follows: 

Section 4.1 Existence; Power. The Borrower and each of its Subsidiaries (i) is duly organized, validly existing
and in good standing as a corporation or other legally organized entity under the laws of the jurisdiction of its organization, (ii) has all requisite power and authority to carry on its business as now conducted, and (iii) is duly
qualified to do business, and is in good standing, in each jurisdiction where such qualification is required, except where a failure to be so qualified could not reasonably be expected to result in a Material Adverse Effect. 

 

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 Section 4.2 Organizational Power; Authorization. The execution, delivery
and performance by each Loan Party of the Loan Documents to which it is a party are within such Loan Party’s organizational powers and have been duly authorized by all necessary organizational, and if required, stockholder or other equity
owner, action. This Agreement has been duly executed and delivered by the Borrower, and constitutes, and each other Loan Document to which any Loan Party is a party, when executed and delivered by such Loan Party, will constitute, valid and binding
obligations of the Borrower or such Loan Party (as the case may be), enforceable against it in accordance with their respective terms, except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws
affecting the enforcement of creditors’ rights generally and by general principles of equity. 
 Section 4.3
Governmental Approvals; No Conflicts. The execution, delivery and performance by the Borrower of this Agreement, and by each Loan Party of the other Loan Documents to which it is a party (a) do not require any consent or approval of,
registration or filing with, or any action by, any Governmental Authority, except those as have been obtained or made and are in full force and effect or where the failure to do so, individually or in the aggregate, could not reasonably be expected
to have a Material Adverse Effect, (b) will not violate any applicable law or regulation or the charter, by-laws or other organizational documents of the Borrower or any of its Subsidiaries or any order of any Governmental Authority,
(c) will not violate or result in a default under any indenture, material agreement or other material instrument binding on the Borrower or any of its Subsidiaries or any of its assets (other than the Prudential Shelf Agreement) or give rise to
a right thereunder to require any payment to be made by the Borrower or any of its Subsidiaries and (d) will not result in the creation or imposition of any Lien on any asset of the Borrower or any of its Subsidiaries, except Liens (if any)
created under the Loan Documents. 
 Section 4.4 Financial Statements. 

(a) The Borrower has furnished to each Lender the audited consolidated balance sheet of the Borrower and its Subsidiaries as of
December 31, 2006 and the related consolidated statements of income, shareholders’ equity and comprehensive income and cash flows for the fiscal year then ended reported on by Grant Thornton LLP, independent certified public accountants.

 (b) The Borrower has furnished to each Lender the unaudited consolidated balance sheets of the Borrower and its Subsidiaries
as of the most recently ended fiscal quarter and the related unaudited consolidated statements of income and cash flows for the Borrower and its Subsidiaries for such fiscal quarter and the then elapsed portion of such fiscal year. 

In the case of each of clauses (a) and (b), such financial statements fairly present the consolidated financial condition of the
Borrower and its Subsidiaries as of such date and the consolidated results of operations for such period in conformity with GAAP consistently applied. 

(c) Since December 31, 2006, there have been no changes with respect to the Borrower and its Subsidiaries which have had or could
reasonably be expected to have, singly or in the aggregate, a Material Adverse Effect. 
  

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 Section 4.5 Litigation and Environmental Matters. 

(a) Schedule 4.5(a) sets forth certain litigation which is pending against Borrower as of the Closing Date (the “Pending
Litigation”). No litigation (including the Pending Litigation), investigation or proceeding of or before any arbitrators or Governmental Authorities is pending against or, to the knowledge of the Borrower, threatened against or
affecting the Borrower or any of its Subsidiaries (i) as to which there is a reasonable possibility of an adverse determination that could reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect or
(ii) which in any manner draws into question the validity or enforceability of this Loan Agreement or any other Loan Document. 

(b) Except for the matters set forth on Schedule 4.5(b), neither the Borrower nor any of its Subsidiaries (i) has failed to
comply with any Environmental Law or to obtain, maintain or comply with any permit, license or other approval required under any Environmental Law that could reasonably be expected to have, either individually or in the aggregate, a Material Adverse
Effect, (ii) has become subject to any Environmental Liability that could reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect, (iii) has received notice of any claim with respect to any
Environmental Liability that could reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect or (iv) knows of any basis for any Environmental Liability that could reasonably be expected to have, either
individually or in the aggregate, a Material Adverse Effect. 
 Section 4.6 Compliance with Laws and
Agreements. The Borrower and each Subsidiary is in compliance with (a) all applicable laws, rules, regulations and orders of any Governmental Authority, and (b) all indentures, agreements or other instruments binding upon it or its
properties, except, in either case, where non-compliance, either singly or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect. 

Section 4.7 Investment Company Act, Etc. Neither the Borrower nor any of its Subsidiaries is (a) an
“investment company”, as defined in, or subject to regulation under, the Investment Company Act of 1940, as amended, or (b) otherwise subject to any other regulatory scheme limiting its ability to incur debt. 

Section 4.8 Taxes. The Borrower and its Subsidiaries and each other Person for whose taxes the Borrower or any
Subsidiary could become liable have timely filed or caused to be filed all Federal income tax returns and all other material tax returns that are required to be filed by them, and have paid all taxes shown to be due and payable on such returns or on
any assessments made against it or its property and all other taxes, fees or other charges imposed on it or any of its property by any Governmental Authority, except (i) to the extent the failure to do so would not have a Material Adverse
Effect or (ii) where the same are currently being contested in good faith by appropriate proceedings and for which the Borrower or such Subsidiary, as the case may be, has set aside on its books adequate reserves. The charges, accruals and
reserves on the books of the Borrower and its Subsidiaries in respect of such taxes are adequate, and no tax liabilities that could be materially in excess of the amount so provided are anticipated. 

Section 4.9 Margin Regulations. The Borrower is not engaged and will not engage, principally or as one of its
important activities, in the business of purchasing or carrying margin stock (within the meaning of Regulation U issued by the FRB), or extending credit for the purpose of purchasing or carrying margin stock. Following the application of the
proceeds of each Borrowing or drawing under each Letter of Credit, not more than 25% of the value of the assets (either of the Borrower only or of the Borrower and its Subsidiaries on a consolidated basis) will be margin stock. 

 

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 Section 4.10 ERISA. No ERISA Event has occurred or is reasonably expected
to occur that, when taken together with all other such ERISA Events for which liability is reasonably expected to occur, could reasonably be expected to result in a Material Adverse Effect. 

Section 4.11 Ownership of Property. 

(a) Each of the Borrower and its Subsidiaries has good title to, or valid leasehold interests in, all of its real and personal property
material to the operation of its business. 
 (b) Each of the Borrower and its Subsidiaries owns, or is licensed, or otherwise
has the right, to use, all patents, trademarks, service marks, trade names, copyrights and other intellectual property material to its business, and the use thereof by the Borrower and its Subsidiaries does not infringe on the rights of any other
Person, except for any such infringements that, individually or in the aggregate, would not have a Material Adverse Effect. 

Section 4.12 Disclosure. The Borrower has disclosed to the Lenders all agreements, instruments, and corporate or other
restrictions to which the Borrower or any of its Subsidiaries is subject, and all other matters known to any of them, that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect. No documents, reports
(including without limitation all reports that the Borrower is required to file with the Securities and Exchange Commission), financial statements, certificates or other information furnished by or on behalf of the Borrower to the Administrative
Agent or any Lender in connection with the negotiation or syndication of this Agreement or any other Loan Document or delivered hereunder or thereunder (as modified or supplemented by any other information so furnished) contains any material
misstatement of fact or omits to state any material fact necessary to make the statements therein, taken as a whole, in light of the circumstances under which they were made, not misleading. 

Section 4.13 Labor Relations. There are no strikes, lockouts or other material labor disputes or grievances against
the Borrower or any of its Subsidiaries (other than Carrier Enterprise), or, to the Borrower’s knowledge, threatened against or affecting the Borrower or any of its Subsidiaries (other than Carrier Enterprise), and no significant unfair labor
practice, charges or grievances are pending against the Borrower or any of its Subsidiaries (other than Carrier Enterprise), or to the Borrower’s knowledge, threatened against any of them before any Governmental Authority. All payments due from
the Borrower or any of its Subsidiaries (other than Carrier Enterprise) pursuant to the provisions of any collective bargaining agreement have been paid or accrued as a liability on the books of the Borrower or any such Subsidiary, except where the
failure to do so could not reasonably be expected to have a Material Adverse Effect. 
 Section 4.14 Binding
Effect. This Agreement has been, and each other Loan Document, when delivered hereunder, will have been, duly executed and delivered by each Loan Party that is party thereto. This Agreement constitutes, and each other Loan Document when so
delivered will constitute, a legal, valid and binding obligation of such Loan Party, enforceable against each Loan Party that is party thereto in accordance with its terms. 

Section 4.15 No Default. Neither any Loan Party nor any Subsidiary thereof is in default under or with respect to any
Contractual Obligation that could, either individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. No Default has occurred and is continuing or would result from the consummation of the transactions contemplated by
this Agreement or any other Loan Document. 
  

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 Section 4.16 Solvency. Each of the Loan Parties and Carrier Enterprise is
Solvent and, in executing the Loan Documents and consummating the transactions contemplated thereby, none of the Loan Parties intends to hinder, delay or defraud either present or future creditors or other Persons to which one or more of the Loan
Parties is or will become indebted. 
 Section 4.17 Senior Debt. The Obligations constitute senior debt for
purposes of all subordinated debt facilities, if any. 
 Section 4.18 Principal Places of Business and
Subsidiaries. Schedule 4.18 sets forth the name of, the chief executive office of, the principal place of business of, the ownership interest of the Borrower in, the jurisdiction of organization of, and the type of, each Subsidiary,
in each case as of the Closing Date, and the chief executive office and principal place of business of the Borrower. 

Section 4.19 Insurance. The properties of the Borrower and its Subsidiaries are insured with financially sound and
reputable insurance companies not Affiliates of the Borrower, in such amounts (after giving effect to any self-insurance compatible with the following standards), with such deductibles and covering such risks as are customarily carried by companies
engaged in similar businesses and owning similar properties in localities where the Borrower or the applicable Subsidiary operates. 

ARTICLE V 

AFFIRMATIVE COVENANTS 

The Borrower covenants and agrees that so long as any Lender has a Commitment hereunder or the principal of and interest on any Loan or
any fee or any LC Disbursement remains unpaid or any Letter of Credit remains outstanding: 
 Section 5.1 Financial
Statements and Other Information. The Borrower will deliver to the Administrative Agent: 
 (a) as soon as available and
in any event within seventy-five (75) days after the end of each fiscal year of Borrower, a copy of the annual audited report for such fiscal year for the Borrower and its Subsidiaries, containing a consolidated balance sheet of the Borrower
and its Subsidiaries as of the end of such fiscal year and the related consolidated statements of income, stockholders’ equity and cash flows (together with all footnotes thereto) of the Borrower and its Subsidiaries for such fiscal year,
setting forth in each case in comparative form the figures for the previous fiscal year, all in reasonable detail and reported on by independent public accountants of nationally recognized standing (without a “going concern” or like
qualification or exception, and without any qualification or exception not acceptable to Lenders in their sole discretion) to the effect that such financial statements present fairly in all material respects the financial condition and the results
of operations of the Borrower and its Subsidiaries for such fiscal year on a consolidated basis in accordance with GAAP and that the examination by such accountants in connection with such consolidated financial statements has been made in
accordance with generally accepted auditing standards; 
 (b) as soon as available and in any event within forty (40) days
after the end of each of the first three (3) fiscal quarters of each fiscal year of the Borrower, an unaudited consolidated balance sheet of the Borrower and its Subsidiaries as of the end of such fiscal quarter and the related unaudited
consolidated statements of income and cash flows of the Borrower and its Subsidiaries for such fiscal quarter and the then elapsed portion of such fiscal year, setting forth in each case in comparative form the figures for the corresponding quarter
and the corresponding portion of Borrower’s previous fiscal year, all certified by the chief financial officer or treasurer of the Borrower as presenting fairly in all material respects the financial condition and results of operations of the
Borrower and its Subsidiaries on a consolidated basis in accordance with GAAP, subject to normal year-end audit adjustments and the absence of footnotes; 
  

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 (c) concurrently with the delivery of the financial statements referred to in clauses
(a) and (b) above, (i) a certificate of a Responsible Officer, (A) certifying as to whether there exists a Default or Event of Default on the date of such certificate, and if a Default or an Event of Default then
exists, specifying the details thereof and the action which the Borrower has taken or proposes to take with respect thereto and (B) stating whether any change in GAAP or the application thereof has occurred since the date of the Borrower’s
audited financial statements referred to in Section 4.4 and, if any change has occurred, specifying the effect of such change on the financial statements accompanying such certificate, and (ii) a certificate of a Responsible Officer
in the form of Exhibit 5.1(c) (the “Compliance Certificate”) setting forth in reasonable detail calculations demonstrating compliance with Article VI; 

(d) as soon as available and in any event within seventy-five (75) days after the end of each fiscal year of Carrier Enterprise, a
copy of the annual audited report for such fiscal year for Carrier Enterprise, containing a consolidated balance sheet of Carrier Enterprise as of the end of such fiscal year and the related consolidated statements of income, stockholders’
equity and cash flows (together with all footnotes thereto) of Carrier Enterprise for such fiscal year, setting forth in each case in comparative form the figures for the previous fiscal year, all in reasonable detail and reported on by independent
public accountants of nationally recognized standing (without a “going concern” or like qualification or exception, and without any qualification or exception not acceptable to Lenders in their sole discretion) to the effect that such
financial statements present fairly in all material respects the financial condition and the results of operations of Carrier Enterprise for such fiscal year on a consolidated basis in accordance with GAAP and that the examination by such
accountants in connection with such consolidated financial statements has been made in accordance with generally accepted auditing standards; 

(e) as soon as available and in any event within forty (40) days after the end of each of the first three (3) fiscal quarters
of each fiscal year of Carrier Enterprise, an unaudited consolidated balance sheet of Carrier Enterprise as of the end of such fiscal quarter and the related unaudited consolidated statements of income and cash flows of Carrier Enterprise for such
fiscal quarter and the then elapsed portion of such fiscal year, setting forth in each case in comparative form the figures for the corresponding quarter and the corresponding portion of Carrier Enterprise’s previous fiscal year, all certified
by the chief financial officer or treasurer of Carrier Enterprise as presenting fairly in all material respects the financial condition and results of operations of Carrier Enterprise on a consolidated basis in accordance with GAAP, subject to
normal year-end audit adjustments and the absence of footnotes; 
 (f) promptly following any request therefor, copies of all
periodic and other reports, proxy statements and other materials filed with the Securities and Exchange Commission, or any Governmental Authority succeeding to any or all functions of said Commission, or with any national securities exchange, or
distributed by the Borrower to its shareholders generally, as the case may be; and 
 (g) promptly following any request
therefor, such other information regarding the results of operations, business affairs and financial condition of the Borrower or any Subsidiary as the Administrative Agent or any Lender may reasonably request. 

Documents required to be delivered pursuant to Section 5.1(a) or (b) or Section 5.2(d) (to the extent
any such documents are included in materials otherwise filed with the SEC) may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date (i) on which the Borrower posts such documents, or provides a
link thereto on the Borrower’s website on the Internet at the website address listed in Section 10.1; or (ii) on which such documents are posted on the Borrower’s behalf on an Internet or intranet website, if any, to which
each Lender and the Administrative Agent have access (whether a commercial, third-party website or whether sponsored by the Administrative Agent); provided that: (i) the Borrower shall deliver paper copies of such documents to the
Administrative Agent or any Lender that requests the Borrower to deliver such paper copies until a written request to cease delivering paper copies is given by the Administrative Agent or such Lender and (ii) the Borrower shall notify the
Administrative Agent and each Lender (by telecopier or electronic mail) of the posting of any such documents and provide to the Administrative Agent by electronic mail electronic versions (i.e., soft copies) of such documents. Notwithstanding
anything contained herein, in every instance the Borrower shall be required to provide paper copies of the Compliance Certificates required by Section 5.1(c) to the Administrative Agent. Except for such Compliance Certificates, the
Administrative Agent shall have no obligation to request the delivery or to maintain copies of the documents referred to above, and in any event shall have no responsibility to monitor compliance by the Borrower with any such request for delivery,
and each Lender shall be solely responsible for requesting delivery to it or maintaining its copies of such documents. 
  

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 The Borrower hereby acknowledges that (a) the Administrative Agent and/or the Arranger
will make available to the Lenders and the Issuing Bank materials and/or information provided by or on behalf of the Borrower hereunder (collectively, “Borrower Materials”) by posting the Borrower Materials on IntraLinks or
another similar electronic system (the “Platform”) and (b) certain of the Lenders (each, a “Public Lender”) may have personnel who do not wish to receive material non-public information with
respect to the Borrower or its Affiliates, or the respective securities of any of the foregoing, and who may be engaged in investment and other market-related activities with respect to such Persons’ securities. The Borrower hereby agrees that
(w) all Borrower Materials that are to be made available to Public Lenders shall be clearly and conspicuously marked “PUBLIC” which, at a minimum, shall mean that the word “PUBLIC” shall appear prominently on the first page
thereof; (x) by marking Borrower Materials “PUBLIC”, the Borrower shall be deemed to have authorized the Administrative Agent, the Arranger, the Issuing Bank and the Lenders to treat such Borrower Materials as not containing any
material non-public information with respect to the Borrower or its securities for purposes of United States Federal and state securities laws (provided, however, that to the extent such Borrower Materials constitute Information, they
shall be treated as set forth in Section 10.11); (y) all Borrower Materials marked “PUBLIC” are permitted to be made available through a portion of the Platform designated “Public Investor”; and (z) the
Administrative Agent and the Arranger shall be entitled to treat any Borrower Materials that are not marked “PUBLIC” as being suitable only for posting on a portion of the Platform not designated “Public Investor”. 

Section 5.2 Notices of Material Events. The Borrower will furnish to the Administrative Agent and each Lender prompt
written notice of the following: 
 (a) the occurrence of any Default or Event of Default or the occurrence of any event or
condition that would, or would with the giving of notice or the lapse of time or both, constitute an Event of Default if the provisions of Section 8.1 did not exclude Carrier Enterprise; 

(b) the filing or commencement of any action, suit or proceeding by or before any arbitrator or Governmental Authority against or, to the
knowledge of the Borrower, affecting the Borrower or any Subsidiary which, if adversely determined, could reasonably be expected to result in a Material Adverse Effect; 

(c) the occurrence of any event or any other development by which the Borrower or any of its Subsidiaries (i) fails to comply with
any Environmental Law or to obtain, maintain or comply with any permit, license or other approval required under any Environmental Law, (ii) becomes subject to any Environmental Liability, (iii) receives notice of any claim with respect to
any Environmental Liability, or (iv) becomes aware of any basis for any Environmental Liability and in each of the preceding clauses (i) through (iv), which individually or in the aggregate, could reasonably be expected to
result in a Material Adverse Effect; 
  

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 (d) the occurrence of any ERISA Event that alone, or together with any other ERISA Events
that have occurred, could reasonably be expected to result in liability of the Borrower and its Subsidiaries in an aggregate amount exceeding $1,000,000; 

(e) any change in the fiscal year of the Borrower or any Subsidiary, except to change the fiscal year of a Subsidiary to conform its
fiscal year to that of the Borrower; and 
 (f) any other development that results in, or could reasonably be expected to result
in, a Material Adverse Effect. 
 Each notice delivered under this Section 5.2 shall be accompanied by a written
statement of a Responsible Officer setting forth the details of the event or development requiring such notice and any action taken or proposed to be taken with respect thereto. 

Section 5.3 Existence; Conduct of Business. The Borrower will, and will cause each of its Subsidiaries to, do or cause
to be done all things necessary to preserve, renew and maintain in full force and effect its legal existence and its respective rights, licenses, permits, privileges, franchises, patents, copyrights, trademarks and trade names material to the
conduct of its business and will continue to engage in the same business as presently conducted or such other businesses that are reasonably related thereto; provided, that nothing in this Section 5.3 shall prohibit any merger,
consolidation, liquidation or dissolution permitted under Section 7.3. 
 Section 5.4 Compliance with
Laws, Etc. The Borrower will, and will cause each of its Subsidiaries to, comply with all laws, rules, regulations and requirements of any Governmental Authority applicable to its properties, except where the failure to do so, either
individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect. 

Section 5.5 Payment of Obligations. The Borrower will, and will cause each of its Subsidiaries (other than Carrier
Enterprise) to, pay and discharge at or before maturity, all of its obligations and liabilities (including without limitation all tax liabilities and claims that could result in a statutory Lien) before the same shall become delinquent or in
default, except where (a) the validity or amount thereof is being contested in good faith by appropriate proceedings, (b) the Borrower or such Subsidiary has set aside on its books adequate reserves with respect thereto in accordance with
GAAP and (c) the failure to make payment pending such contest could not reasonably be expected to result in a Material Adverse Effect. 

Section 5.6 Books and Records. The Borrower will, and will cause each of its Subsidiaries to, keep proper books of
record and account in which full, true and correct entries shall be made of all dealings and transactions in relation to its business and activities to the extent necessary to prepare the consolidated financial statements of Borrower in conformity
with GAAP. 
 Section 5.7 Visitation, Inspection, Etc. The Borrower will, and will cause each of its
Subsidiaries (other than Carrier Enterprise) to, permit any representative of the Administrative Agent or any Lender, to visit and inspect its properties, to examine its books and records and to make copies and take extracts therefrom, and to
discuss its affairs, finances and accounts with any of its officers and with its independent certified public accountants, all at such reasonable times and as often as the Administrative Agent or any Lender may reasonably request after reasonable
prior notice to the Borrower. 
  

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 Section 5.8 Maintenance of Properties; Insurance. The Borrower will, and
will cause each of its Subsidiaries (other than Carrier Enterprise) to, (a) keep and maintain all property material to the conduct of its business in good working order and condition, ordinary wear and tear except where the failure to do so,
either individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect and (b) maintain with financially sound and reputable insurance companies, insurance with respect to its properties and business,
and the properties and business of its Subsidiaries, in amounts and against loss or damage of the kinds customarily insured against by companies in the same or similar businesses operating in the same or similar locations, in each instance,
reasonably acceptable to the Administrative Agent. 
 Section 5.9 Use of Proceeds and Letters of Credit. The
Borrower will use the proceeds of all Loans to refinance existing Indebtedness on the Closing Date and thereafter to finance working capital needs, Capital Expenditures, acquisitions and for other general corporate purposes of the Borrower and its
Subsidiaries (other than Carrier Enterprise, except as otherwise permitted in this Agreement). No part of the proceeds of any Loan will be used, whether directly or indirectly, for any purpose that would violate any rule or regulation of the Board
of Governors of the Federal Reserve System, including Regulations T, U or X. All Letters of Credit will be used for general corporate purposes. 

Section 5.10 Additional Subsidiaries. 

(a) Except as to any Subsidiary formed by the Borrower after the Closing Date and having assets with a total value of less than $500,000
and except as to Carrier Enterprise (except as set forth in Sections 7.4(a)(x) and 10.16(b)), if any additional Subsidiary is acquired or formed by the Borrower after the Closing Date, the Borrower will, within thirty (30) Business Days
after such Subsidiary is acquired or formed or acquires or maintains assets with a total value of $500,000 or more, notify the Administrative Agent and the Lenders thereof and will cause such Subsidiary to become a Subsidiary Loan Party by executing
agreements in the form of Annex I to Exhibit D and Annex I to Exhibit E in form and substance satisfactory to the Administrative Agent and the Required Lenders and will cause such Subsidiary to deliver simultaneously
therewith similar documents applicable to such Subsidiary required under Section 3.1(b)(iv), (v), (vi), (viii), (xi) and (xii) as reasonably requested by the Administrative Agent. 

(b) If at any time a Subsidiary acquires an ownership interest in Carrier Enterprise, the Borrower shall (i) promptly notify the
Administrative Agent of such Subsidiary’s acquisition of such ownership interest and (ii) within 30 days after such Subsidiary’s acquisition of such ownership interest, cause to be delivered to the Administrative Agent for the benefit
of the Secured Parties a Pledge Agreement Supplement or Pledge Joinder Agreement, as applicable, executed by such Subsidiary. 

Section 5.11 Environmental Laws. 

(a) The Borrower shall, and shall cause each of its Subsidiaries (other than Carrier Enterprise) to, conduct its operations and keep and
maintain its property in compliance in all material respects with all Environmental Laws, except to the extent that the failure to comply therewith could not reasonably be expected to have a Material Adverse Effect. 

 

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 (b) Upon written request of the Administrative Agent or any Lender, the Borrower shall
submit and cause each of its Subsidiaries (other than Carrier Enterprise) to submit, to the Administrative Agent and such Lender, at the Borrower’s sole cost and expense and at reasonable intervals, a report providing an update of the status
any environmental, health or safety compliance obligation, remedial obligation or liability, that could, individually or in the aggregate, result in liability in excess of $5,000,000. 

Section 5.12 Gemaire Caribe. If after the Closing Date, Gemaire Caribe (a) obtains assets, (b) commences
business operations, or (c) receives any Investment from the Borrower or any other Subsidiary, such that if Gemaire Caribe were a newly formed or acquired Subsidiary it would be required to become a Subsidiary Loan Party pursuant to
Section 5.10(a), the Borrower will, within thirty (30) Business Days after the occurrence of any event described in clauses (a), (b) or (c) above, notify the Administrative Agent and the Lenders
thereof and will cause Gemaire Caribe to become a Subsidiary Loan Party by executing agreements in the form of Annex I to Exhibit D and Annex I to Exhibit E in form and substance satisfactory to the Administrative Agent
and the Required Lenders and will cause Gemaire Caribe to deliver simultaneously therewith similar documents applicable to Gemaire Caribe required under Section 3.1(b)(iv), (v), (vi), (viii), (xi) and
(xii) as reasonably requested by the Administrative Agent. 
 ARTICLE VI 

FINANCIAL COVENANTS 

The Borrower covenants and agrees that so long as any Lender has a Commitment hereunder or the principal of or interest on or any Loan
remains unpaid or any fee or any LC Disbursement remains unpaid or any Letter of Credit remains outstanding: 

Section 6.1 Leverage Ratio. The Borrower and its Subsidiaries will have, as of the end of each fiscal quarter of the
Borrower, commencing with the fiscal quarter ended June 30, 2007, a Leverage Ratio of not greater than 3.50:1.00, calculated on a rolling four-quarter basis. 

Section 6.2 Interest Coverage Ratio. The Borrower and it Subsidiaries will have, as of the end of each fiscal quarter
of the Borrower, commencing with the fiscal quarter ended June 30, 2007, an Interest Coverage Ratio of not less than 3.00:1.00, calculated on a rolling four-quarter basis. 

ARTICLE VII 

NEGATIVE COVENANTS 

Subject to Section 10.16, the Borrower covenants and agrees that so long as any Lender has a Commitment hereunder or the principal
of or interest on any Loan remains unpaid or any fee or any LC Disbursement remains unpaid or any Letter of Credit remains outstanding: 

Section 7.1 Indebtedness. The Borrower will not, and will not permit any of its Subsidiaries (other than Carrier
Enterprise) to, create, incur, assume or suffer to exist any Indebtedness, except: 
 (a) Indebtedness created pursuant to the
Loan Documents; 
 (b) Indebtedness existing on the date hereof and set forth on Schedule 7.1 and extensions, renewals
and replacements of any such Indebtedness that do not increase the outstanding principal amount thereof (immediately prior to giving effect to such extension, renewal or replacement) or shorten the maturity or the weighted average life thereof;

  

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 (c) Indebtedness of the Borrower owing to any Subsidiary Loan Party and of any Subsidiary
Loan Party owing to the Borrower or any other Subsidiary Loan Party; 
 (d) Private Placement Debt or other Indebtedness
incurred after the date hereof in an aggregate principal amount not to exceed $200,000,000 at any time outstanding; provided, however, that no Indebtedness may be incurred under the Prudential Shelf Agreement until such agreement has
been amended to the Administrative Agent’s satisfaction to eliminate any negative covenants in conflict with or more restrictive than those contained herein; 

(e) Indebtedness in respect of obligations under Hedging Agreements permitted by Section 7.10; and 

(f) Indebtedness in respect of any Securitization Transaction permitted by Section 7.6(c). 

Section 7.2 Negative Pledge. The Borrower will not, and will not permit any of its Subsidiaries (other than Carrier
Enterprise) to, create, incur, assume or suffer to exist any Lien on any of its assets or property now owned or hereafter acquired, except: 

(a) Liens, if any, created in favor of the Administrative Agent for the benefit of the Lenders pursuant to the Loan Documents;

 (b) Permitted Encumbrances; 

(c) any Liens on any property or asset of the Borrower or any such Subsidiary existing on the Closing Date set forth on Schedule
7.2; provided, that such Lien shall not apply to any other property or asset of the Borrower or any such Subsidiary; 

(d) purchase money Liens upon or in any fixed or capital assets to secure the purchase price or the cost of construction or improvement
of such fixed or capital assets or to secure Indebtedness incurred solely for the purpose of financing the acquisition, construction or improvement of such fixed or capital assets (including Liens securing any Capital Lease Obligations);
provided, that (i) the principal amount of the Indebtedness secured by such Liens does not exceed $20,000,000 in the aggregate at any time outstanding, (ii) such Liens attach to such assets concurrently or within ninety
(90) days after the acquisition, improvement or completion of the construction thereof; (iii) such Liens do not extend to any other assets; and (iv) the Indebtedness secured thereby does not exceed the cost of acquiring, constructing
or improving such fixed or capital assets; 
 (e) any Lien (i) existing on any asset of any Person at the time such Person
becomes such a Subsidiary of the Borrower, (ii) existing on any asset of any Person at the time such Person is merged with or into the Borrower or any such Subsidiary of the Borrower or (iii) existing on any asset prior to the acquisition
thereof by the Borrower or any such Subsidiary of the Borrower; provided, that any such Lien was not created in the contemplation of any of the foregoing and any such Lien secures only those obligations which it secures on the date that such
Person becomes such a Subsidiary or the date of such merger or the date of such acquisition; 
  

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 (f) any Lien arising out of any Securitization Transaction permitted by
Section 7.6(c); 
 (g) extensions, renewals, or replacements of any Lien referred to in paragraphs (a) through
(f) of this Section 7.2; provided, that the principal amount of the Indebtedness secured thereby is not increased and that any such extension, renewal or replacement is limited to the assets originally encumbered thereby; and

 (h) other Liens arising in the ordinary course of business of the Borrower or such Subsidiary of the Borrower, as applicable;
provided, that the principal amount of the Indebtedness secured by such Liens shall not exceed $20,000,000 in the aggregate at any time outstanding. 

For purposes of this Section, the entry by the Borrower or any such Subsidiary into a true lease or true bailment arrangement which contains a provision
purporting to grant a lien in the event that such arrangement is determined not to constitute a true lease or true bailment and the filing of a precautionary UCC financing statement in connection therewith shall not constitute the creation,
incurrence, assumption or sufference of a Lien unless, under applicable law, such arrangement is determined not to constitute a true lease or true bailment arrangement and a security interest or other interest in or lien on property or assets of the
Borrower or any such Subsidiary has in fact been granted or deemed to have been granted. 
 Section 7.3 Fundamental
Changes. 
 (a) The Borrower will not, and will not permit any Subsidiary (other than Carrier Enterprise) to, merge into
or consolidate into any other Person, or permit any other Person to merge into or consolidate with it, or sell, lease, transfer or otherwise dispose of (in a single transaction or a series of transactions) all or substantially all of its assets (in
each case, whether now owned or hereafter acquired) or all or substantially all of the stock of any such Subsidiary (in each case, whether now owned or hereafter acquired) or liquidate or dissolve; provided, that if at the time thereof and
immediately after giving effect thereto, no Default or Event of Default shall have occurred and be continuing (i) the Borrower or any such Subsidiary may merge with a Person if the Borrower (or such Subsidiary if the Borrower is not a party to
such merger) is the surviving Person (provided that in the case of an Acquisition permitted by Section 7.4 by a Subsidiary Loan Party, the acquired company may be the surviving Person so long as such acquired company becomes a
Subsidiary Loan Party as required by Section 5.10(a)), (ii) any such Subsidiary may merge into another Subsidiary; provided, that (A) if any party to such merger is a Subsidiary Loan Party, the Subsidiary Loan Party
shall be the surviving Person (and if the non-surviving Subsidiary was also a Subsidiary Loan Party, the Administrative Agent, upon such event and at the request and expense of the Borrower and/or the surviving Subsidiary Loan Party, will execute
such documents as shall be acceptable to the Administrative Agent and its counsel releasing the non-surviving Subsidiary Loan Party from its obligations under the Subsidiary Guarantee Agreement) or (B) if any party to such merger is not a
Subsidiary Loan Party, the surviving Person (including Carrier Enterprise, if applicable) shall execute and deliver to the Administrative Agent an agreement guaranteeing payment of the Obligations in form and substance satisfactory to the
Administrative Agent and the Required Lenders, (iii) any such Subsidiary may sell, transfer, lease or otherwise dispose of all or substantially all of its assets to the Borrower or to a Subsidiary Loan Party, and (iv) any such Subsidiary
(other than a Subsidiary Loan Party) may liquidate or dissolve if the Borrower determines in good faith that such liquidation or dissolution is in the best interests of the Borrower and is not materially disadvantageous to the Lenders;
provided, that any such merger involving a Person that is not a wholly-owned Subsidiary (other than Carrier Enterprise) immediately prior to such merger shall not be permitted unless also permitted by Section 7.4. 

 

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 (b) The Borrower will not, and will not permit any of its Subsidiaries (other than Carrier
Enterprise) to, engage to any material extent in any business other than businesses of the type conducted by the Borrower and its Subsidiaries on the date hereof and businesses reasonably related thereto. 

Section 7.4 Investments, Loans, Capital Expenditures, Etc. 

(a) The Borrower will not, and will not permit any of its Subsidiaries (other than Carrier Enterprise) to, purchase, hold or acquire
(including pursuant to any merger with any Person that was not a wholly-owned Subsidiary prior to such merger), any common stock, evidence of indebtedness or other securities (including any option, warrant, or other right to acquire any of the
foregoing) of, make or permit to exist any loans or advances to, Guarantee any obligations of, or make or permit to exist any investment or any other interest in, any other Person (all of the foregoing (but excluding in all cases, any portion of any
of the foregoing by the Borrower in Carrier Enterprise or by the Borrower to purchase additional interests in Carrier Enterprise, in either case, to the extent such is funded by equity in the Borrower) being collectively called
“Investments”), or purchase or otherwise acquire (in one transaction or a series of transactions) any assets of any other Person that constitute a business unit, except: 

(i) Investments (other than Permitted Investments) existing on the date hereof and set forth on Schedule 7.4
(including Investments in such Subsidiaries); 
 (ii) Permitted Investments; 

(iii) Guarantees constituting Indebtedness permitted by Section 7.1; 

(iv) Investments in Subsidiary Loan Parties and in repurchases of the capital stock of the Borrower to the extent
otherwise permitted hereunder; 
 (v) Loans or advances to employees, officers or directors of the Borrower or
any Subsidiary Loan Party in the ordinary course of business for travel, relocation and related expenses; 
 (vi)
Hedging Agreements permitted by Section 7.10; 
 (vii) the purchase or other acquisition of a
controlling equity interest in another Person (other than Carrier Enterprise) (including the purchase of an option, warrant, convertible or similar type security to acquire such a controlling interest at the time it becomes exercisable by the holder
thereof), whether by purchase of such equity interest or upon exercise of an option or warrant for, or conversions of securities into, such equity interest, or the purchase or other acquisition (in one transaction or a series of transactions) of any
assets of any such other Person that constitute a business unit (each, an “Acquisition”), provided, that: (i) the Person to be (or whose assets are to be) so purchased or acquired does not oppose such Acquisition,
(ii) the line or lines of business of the Person to be (or whose assets are to be) so purchased or acquired are substantially the same as the Major Subsidiaries and their lines of business, (iii) prior to and immediately after giving
effect to such Acquisition, no Default or Event of Default shall have occurred and be continuing, (iv) if the costs of such Acquisition exceed $50,000,000, the Borrower shall have furnished to the Administrative Agent pro forma historical
financial statements as of the end of the most recently completed fiscal period of the Borrower (whether quarterly or year end) giving effect to such Acquisition and assuming that any Indebtedness incurred to effect such Acquisition shall be deemed
to have been outstanding during the four full consecutive fiscal quarter period of the Borrower preceding such Acquisition and to have borne a rate of interest during such period equal to that rate in existence at the date of determination, together
with a certificate of a Responsible Officer, in the form of Exhibit 5.1(c), prepared on a historical pro forma basis giving effect to such Acquisition as of the most recent fiscal quarter of the Borrower then ended, which certificate shall
demonstrate that no Default or Event of Default would exist immediately after giving effect thereto, and (vi) the Person acquired shall be a Subsidiary (other than Carrier Enterprise), or be merged into or with the Borrower or one of its
Subsidiaries (other than Carrier Enterprise), immediately upon consummation of the Acquisition (or if assets are being purchased or acquired, the acquirer shall be the Borrower or one of its Subsidiaries (other than Carrier Enterprise)); 

 

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 (viii) Investments of any Person acquired in an Acquisition permitted under
Section 7.4(a)(vii); 
 (ix) the Project Orange Investment; 

(x) additional direct or indirect Investments by the Borrower in Carrier Enterprise made pursuant to and in accordance
with the JV Operating Agreement; provided, that (i) the Guarantee by the Borrower of Indebtedness of Carrier Enterprise shall not be deemed to be an Investment for purposes of this Section 7.4, (ii) no such direct or
indirect Investment may be made after the occurrence of any event or condition which would, or would with the giving of notice and lapse of time or both, constitute an Event of Default if the provisions of Section 8.1 did not exclude
Carrier Enterprise, for so long as such event or condition exists, (iii) no such Investment may be made for the purpose of the acquisition of margin stock by Carrier Enterprise, (iv) the aggregate costs incurred in making such Investments
shall not exceed $50,000,000 in the aggregate unless the Borrower has delivered a pro forma Compliance Certificate evidencing a Leverage Ratio of not greater than 2.00 to 1.00 after giving effect to such Investments in excess of $50,000,000 and
(v) prior to and immediately after giving effect to such Investment, no Default or Event of Default shall have occurred and be continuing; provided that the aggregate costs incurred in making such Investments shall not exceed the lesser of
(x) $100,000,000 in the aggregate at any time less the aggregate amount of all sales and dispositions of assets to Carrier Enterprise made after the First Amendment Effective Date under Section 7.6(g) or (y) the amount that
would cause the Borrower’s ownership interest (direct or indirect) in Carrier Enterprise to exceed 80% of the total ownership interests, unless the Borrower has caused Carrier Enterprise to become party to a Subsidiary Guarantee Agreement and
deliver to the Administrative Agent all other items required by Section 5.10(a) to cause Carrier Enterprise to become a Subsidiary Loan Party; and 

(xi) additional Investments (other than in Carrier Enterprise); provided that the aggregate costs incurred in
making such Investments shall not exceed $15,000,000 in the aggregate any time. 
 (b) The Borrower will not, and will not
permit any of its Subsidiaries (other than Carrier Enterprise) to, make Capital Expenditures in the aggregate (excluding Capital Expenditures made by Carrier Enterprise) in excess of $60,000,000 during any fiscal year of the Borrower. 

 

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 Section 7.5 Restricted Payments. The Borrower will not, and will not
permit its Subsidiaries (other than Carrier Enterprise) to, declare or make, or agree to pay or make, directly or indirectly, any dividend on any class of its stock, or make any payment on account of, or set apart assets for a sinking or other
analogous fund for, the purchase, redemption, retirement, defeasance or other acquisition of, any shares of common stock or Indebtedness subordinated to the Obligations of the Borrower or any options, warrants, or other rights to purchase such
common stock or such Indebtedness, whether now or hereafter outstanding (each, a “Restricted Payment”), except: 

(a) the Borrower and such Subsidiaries may make Restricted Payments, if (i) both before and after giving effect to such Restricted
Payment no Default shall have occurred or be continuing and (ii) after giving pro forma effect to such Restricted Payment, the Borrower’s Leverage Ratio is less than 2.00 to 1.00; 

(b) if after giving pro forma effect to a Restricted Payment, the Borrower’s Leverage Ratio is greater than or equal to 2.00 to
1.00, the Borrower and such Subsidiaries may make the following Restricted Payments: (1) dividends payable by the Borrower solely in shares of any class of its common stock, (2) Restricted Payments made by any such Subsidiary to the
Borrower or to another Subsidiary Loan Party, (3) dividends paid by any such Subsidiary to Borrower or to another such Subsidiary that is its direct parent and (4) cash dividends paid on, and cash redemptions of, the common stock of the
Borrower provided, that (i) no Default or Event of Default has occurred and is continuing at the time such dividend is paid or redemption is made, and (ii) the aggregate amount of all such Restricted Payments does not exceed the sum
of (A) $100,000,000 plus (B) fifty percent (50%) of Consolidated Net Income (if greater than $0) earned year to date as of the most recently ended fiscal quarter (except that in the case of the third and fourth fiscal quarters of
2007, such calculation of Consolidated Net Income shall run from July 1, 2007 rather than the prior year end), and further, provided, if such Restricted Payments in any fiscal year are less than hereby permitted for such fiscal
year, the excess permitted amount for such fiscal year may be carried forward to any succeeding fiscal period; and 
 (c) each
such Subsidiary may make Restricted Payments to the Borrower, the Subsidiary Loan Parties and any other Person that owns an equity interest in such Subsidiary, ratably according to their respective holdings of the type of equity interest in respect
of which such Restricted Payment is being made. 
 Section 7.6 Sale of Assets. The Borrower will not, and
will not permit any of its Subsidiaries (other than Carrier Enterprise) to, convey, sell, lease, assign, transfer or otherwise dispose of, any of its assets, business or property, whether now owned or hereafter acquired, or, in the case of any such
Subsidiary, issue or sell any shares of such Subsidiary’s common stock to any Person other than the Borrower or a Subsidiary Loan Party (or to qualify directors if required by applicable law), except: 

(a) the sale or other disposition for fair market value of obsolete or worn out property or other property not necessary for the
principal business operations disposed of in the ordinary course of business; 
 (b) the sale of inventory and Permitted
Investments in the ordinary course of business; 
 (c) the sale or other disposition of such assets in connection with any
Securitization Transaction in an aggregate (excluding such sales or other dispositions by Carrier Enterprise) amount not to exceed $100,000,000 at any time during the term of this Agreement; 

 

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 (d) [Reserved]; 

(e) the sale, without recourse, other than for misrepresentation, by any such Subsidiary of the Borrower of accounts receivable having a
value, net of all allowances and discounts, not to exceed during any fiscal year of the Borrower an aggregate Dollar value of $25,000,000 for all such sales, which receivables shall be payable by Persons who are not United States citizens or
organized and existing under the laws of the United States or a state or territory thereof; 
 (f) the sale or disposition of
any interest in Carrier Enterprise; provided that any sale or other disposition of the Borrower’s direct or indirect interests in Carrier Enterprise pursuant to this clause (f) shall not be made unless the Borrower shall have
furnished to the Administrative Agent pro forma historical financial statements as of the end of the most recently completed fiscal period of the Borrower (whether quarterly or year end) giving effect to such disposition, together with a certificate
of a Responsible Officer, in the form of Exhibit 5.1(c), prepared on a historical pro forma basis giving effect to such disposition as of the most recent fiscal quarter of the Borrower then ended, which certificate shall demonstrate that no
Default or Event of Default would exist immediately after giving effect thereto; 
 (g) the sale or other disposition of such
other assets in an aggregate amount not to exceed $50,000,000 in any fiscal year of the Borrower, less, in the case of the Borrower’s fiscal year ending December 31, 2009, the book value of the Comfort Products Distributing LLC assets
disposed of as part of the Project Orange Investment (provided that no such sale or disposition may be made after the occurrence or during the continuance of any event or condition which would, or would with the giving of notice or the lapse
of time or both, constitute an Event of Default if the provisions of Section 8.1 did not exclude Carrier Enterprise). 

Section 7.7 Transactions with Affiliates. The Borrower will not, and will not permit any of its Subsidiaries (other
than Carrier Enterprise) to, sell, lease or otherwise transfer any property or assets to, or purchase, lease or otherwise acquire any property or assets from, or otherwise engage in any other transactions with, any of its Affiliates, except
(a) in the ordinary course of business at prices and on terms and conditions not less favorable to the Borrower or such Subsidiary than could be obtained on an arm’s-length basis from unrelated third parties (provided that no such
transaction (other than transactions consisting of typical and customary administrative functions of a corporate parent) may be consummated by the Borrower or any such Subsidiary with Carrier Enterprise if at the time of such transaction any event
or condition exists which would, or would with the giving of notice or the lapse of time or both, constitute an Event of Default if the provisions of Section 8.1 did not exclude Carrier Enterprise), (b) transactions between or among
the Borrower and Subsidiary Loan Parties not involving any other Affiliates, (c) transactions between or among the Borrower and Subsidiary Loan Parties, on the one hand, and Carrier Enterprise, on the other hand (provided that at the
time of such transaction no event or condition exists which would, or would with the giving of notice or the lapse of time or both, constitute an Event of Default if the provisions of Section 8.1 did not exclude Carrier Enterprise) not
involving any other Affiliates, and (d) any Restricted Payment permitted by Section 7.5. 
 Section 7.8
Restrictive Agreements. The Borrower will not, and will not permit any Subsidiary (other than Carrier Enterprise) to, directly or indirectly, enter into, incur or permit to exist any agreement that prohibits, restricts or imposes any
condition upon (a) the ability of the Borrower or any Subsidiary (other than Carrier Enterprise) to create, incur or permit any Lien upon any of its assets or properties, whether now owned or hereafter acquired, or (b) the ability of any
Subsidiary (other than Carrier Enterprise) to pay dividends or other distributions with respect to its common stock, to make or repay loans or advances to the Borrower or any other Subsidiary (other than Carrier Enterprise), to Guarantee
Indebtedness of the Borrower or any other Subsidiary (other than Carrier Enterprise) or to transfer any of its property or assets to the Borrower or any Subsidiary (other than Carrier Enterprise) of the Borrower; provided, that (i) the
foregoing shall not apply to restrictions or conditions imposed (A) by law, (B) by this Agreement or any other Loan Document, (C) by the documents governing the Private Placement Debt, (D) by documents listed on Schedule
7.8 hereto or (E) by any documents creating a Permitted Lien, (ii) the foregoing shall not apply to customary restrictions and conditions contained in agreements relating to the sale of a Subsidiary (other than Carrier Enterprise)
pending such sale, provided such restrictions and conditions apply only to the Subsidiary (other than Carrier Enterprise) that is sold and such sale is permitted hereunder, (iii) clause (a) shall not apply to restrictions or
conditions imposed by any agreement relating to secured Indebtedness permitted by this Agreement if such restrictions and conditions apply only to the property or assets securing such Indebtedness, and (iv) clause (a) shall not
apply to customary provisions in leases and other contracts restricting the assignment thereof. 
  

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 Section 7.9 Sale and Leaseback Transactions. The Borrower will not, and
will not permit any of its Subsidiaries (other than Carrier Enterprise) to, enter into any arrangement, directly or indirectly, whereby it shall sell or transfer any property, real or personal, used or useful in its business, whether now owned or
hereinafter acquired, and thereafter rent or lease such property or other property that it intends to use for substantially the same purpose or purposes as the property sold or transferred, except for the sale and leaseback of properties in an
aggregate amount not to exceed $30,000,000 in any fiscal year of the Borrower. 
 Section 7.10 Hedging
Agreements. The Borrower will not, and will not permit any of its Subsidiaries (other than Carrier Enterprise) to, enter into any Hedging Agreement, other than Hedging Agreements which are non-speculative in purpose and nature and are
entered into in the ordinary course of business to hedge or mitigate risks to which the Borrower or any such Subsidiary is exposed in the conduct of its business or the management of its liabilities. Solely for the avoidance of doubt, the Borrower
acknowledges that a Hedging Agreement entered into for speculative purposes or of a speculative nature (which shall be deemed to include any Hedging Agreement under which the Borrower or any of such Subsidiaries is or may become obliged to make any
payment (i) in connection with the purchase by any third party of any common stock or any Indebtedness or (ii) as a result of changes in the market value of any common stock or any Indebtedness) is not a Hedging Agreement entered into in
the ordinary course of business to hedge or mitigate risks. 
 Section 7.11 Amendment to Material Documents.
The Borrower will not, and will not permit any Subsidiary (including Carrier Enterprise) to, amend, modify or waive any of its rights under (a) its certificate of incorporation, bylaws or other organizational documents (including but not
limited to the JV Operating Agreement) in a manner that in the aggregate are materially adverse to the interests of the Lenders in their capacities as lenders, or (b) any Material Agreement in a manner that results in, or could reasonably be
expected to result in, a Material Adverse Effect. 
 Section 7.12 Accounting Changes. (a) The Borrower
will not, and will not permit any Subsidiary (other than Carrier Enterprise) to, make any significant change in accounting treatment or reporting practices, except as required or, with the approval of the Required Lenders, as permitted, by GAAP.

 (b) The Borrower shall not permit Carrier Enterprise to make any significant change in accounting treatment or reporting
practices, except as required or as permitted by GAAP, provided that in the event Carrier Enterprise makes any such significant change in accounting treatment or reporting practices, then (i) the Borrower shall remain obligated to provide
financial reporting for Carrier Enterprise (as contemplated by Sections 5.1(d) and 5.1(e) to the Administrative Agent using the same GAAP methodology and principles as are then utilized for the financial reporting for the Borrower (as
contemplated by Sections 5.1(a) and 5.1(b)) and (ii) calculations of the Leverage Ratio and the Interest Coverage Ratio, to the extent relating to Carrier Enterprise, shall be made using the same GAAP methodology and principles
then being utilized for such calculations regarding the Borrower and not using the modified GAAP methodology and principles then adopted by Carrier Enterprise. 
  

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 (c) The Borrower will not, and will not permit any Subsidiary (including Carrier Enterprise)
to, change the fiscal year of the Borrower or any Subsidiary, except to change the fiscal year of a Subsidiary to conform its fiscal year to that of the Borrower. 

Section 7.13 [Reserved] 

Section 7.14 Use of Proceeds. The Borrower will not, and will not permit any Subsidiary (other than Carrier
Enterprise) to, use the proceeds of any credit extension hereunder, whether directly or indirectly, and whether immediately, incidentally or ultimately, to purchase or carry margin stock (within the meaning of Regulation U of the FRB) or to extend
credit to others for the purpose of purchasing or carrying margin stock or to refund indebtedness originally incurred for such purpose, other than the purchase of the capital stock of ACR Group, Inc. pursuant to the Borrower’s tender offer made
on July 9, 2007. 
 Section 7.15 Prepayments. The Borrower will not, and will not permit any Subsidiary
(other than Carrier Enterprise) to make any prepayment, redemption, defeasance, purchase, acquisition or other payment in violation of any subordination terms of any Indebtedness which is subject to an intercreditor and/or subordination agreement,
except in connection with payment of the Obligations in accordance with the Loan Documents. 
 Section 7.16
Amendments to Material Indebtedness Agreements. The Borrower will not, and will not permit any Subsidiary (other than Carrier Enterprise) to enter into or suffer to exist any amendment or modification (a) to the amortization schedule
or prepayment provisions (excluding the waiver of any prepayment premium or penalty) of the Indebtedness created under the Material Indebtedness Agreements or (b) to any other terms or conditions contained in the Material Indebtedness
Agreements if such modification (i) would conflict with or be more restrictive than the terms or provisions of this Agreement in any material respect, (ii) would provide for collateral security for such Indebtedness in excess of that
provided under such agreements as of the Closing Date, (iii) would expand any negative pledge provision provided for therein, or (iv) would alter any provision of the events of default under those agreements. 

ARTICLE VIII 

EVENTS OF DEFAULT 

Section 8.1 Events of Default. If any of the following events (each an “Event of Default”)
shall occur: 
 (a) the Borrower shall fail to pay any principal of any Loan or of any reimbursement obligation in respect of
any LC Disbursement when and as the same shall become due and payable, whether at the due date thereof or at a date fixed for prepayment or otherwise; or 

(b) the Borrower shall fail to pay any interest on any Loan or any fee or any other amount (other than an amount payable under clause
(a) of this Article VIII) payable under this Agreement or any other Loan Document, when and as the same shall become due and payable, and such failure shall continue unremedied for a period of three (3) Business Days; or

  

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 (c) any representation or warranty made or deemed made by or on behalf of the Borrower or
any Subsidiary (other than Carrier Enterprise) in or in connection with this Agreement or any other Loan Document (including the Schedules attached thereto) and any amendments or modifications hereof or waivers hereunder, or in any certificate,
report, financial statement or other document submitted to the Administrative Agent or the Lenders by any Loan Party or any representative of any Loan Party pursuant to or in connection with this Agreement or any other Loan Document shall prove to
be incorrect in any material respect when made or deemed made or submitted; or 
 (d) the Borrower shall fail to observe or
perform any covenant or agreement contained in Sections 5.1(a), (b), (c), (d), and (e), 5.2, 5.3 (with respect to the Borrower’s legal existence unless, in the case of any involuntary
administrative dissolution of the Borrower, such failure to preserve, renew or maintain its legal existence is remedied within ten (10) days after the earlier of (i) any Responsible Officer of the Borrower becomes aware of such failure, or
(ii) notice thereof shall have been given to the Borrower by the Administrative Agent or any Lender, provided, that until the Borrower’s legal existence is lawfully reinstated by the appropriate Governmental Authority, the Lenders
or the Issuing Bank, as applicable, may withhold any further Borrowing or issuance of any additional Letter of Credit), 5.7, 5.9, 5.10, 5.11 or Articles VI or VII; or 

(e) any Loan Party shall fail to observe or perform any covenant or agreement contained in this Agreement (other than those referred to
in clauses (a), (b) and (d) above), and such failure shall remain unremedied for thirty (30) days after the earlier of (i) any Responsible Officer of the Borrower becomes aware of such failure, or
(ii) notice thereof shall have been given to the Borrower by the Administrative Agent or any Lender; 
 (f) the Borrower or
any of its Subsidiaries (other than Carrier Enterprise) shall default in the performance or observance of any term, condition or provision of any Material Agreement that results in, or could reasonably be expected to result in, a Material Adverse
Effect; or 
 (g) the Borrower or any Subsidiary (other than Carrier Enterprise) (whether as primary obligor or as guarantor or
other surety) shall fail to pay any principal of or premium or interest on any Material Indebtedness that is outstanding, when and as the same shall become due and payable (whether at 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 evidencing such Indebtedness; or any other event shall occur or condition shall exist under any agreement or instrument
relating to such Indebtedness and shall continue after the applicable grace period, if any, specified in such agreement or instrument, if the effect of such event or condition is to accelerate, or permit the acceleration of, the maturity of such
Indebtedness; or any such Indebtedness shall be declared to be due and payable, required to be prepaid or redeemed (other than by a regularly scheduled required prepayment or redemption), purchased or defeased, or any offer to prepay, redeem,
purchase or defease such Indebtedness shall be required to be made, in each case prior to the stated maturity thereof; or 
 (h)
the Borrower or any Subsidiary (other than Carrier Enterprise) shall (i) commence a voluntary case or other proceeding or file any petition seeking liquidation, reorganization or other relief under any federal, state or foreign bankruptcy,
insolvency or other similar law now or hereafter in effect or seeking the appointment of a custodian, trustee, receiver, liquidator or other similar official of it or any substantial part of its property, (ii) consent to the institution of, or
fail to contest in a timely and appropriate manner, any proceeding or petition described in clause (i) of this Section 8.1(h), (iii) apply for or consent to the appointment of a custodian, trustee, receiver, liquidator
or other similar official for the Borrower or any such Subsidiary or for a substantial part of its assets, (iv) file an answer admitting the material allegations of a petition filed against it in any such proceeding, (v) make a general
assignment for the benefit of creditors, or (vi) take any action for the purpose of effecting any of the foregoing; or 
  

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 (i) an involuntary proceeding shall be commenced or an involuntary petition shall be filed
seeking (i) liquidation, reorganization or other relief in respect of the Borrower or any Subsidiary (other than Carrier Enterprise) or its debts, or any substantial part of its assets, under any federal, state or foreign bankruptcy, insolvency
or other similar law now or hereafter in effect or (ii) the appointment of a custodian, trustee, receiver, liquidator or other similar official for the Borrower or any Subsidiary (other than Carrier Enterprise) or for a substantial part of its
assets, and in any such case, such proceeding or petition shall remain undismissed for a period of sixty (60) days or an order or decree approving or ordering any of the foregoing shall be entered; or 

(j) the Borrower or any Subsidiary (other than Carrier Enterprise) shall become unable to pay, shall admit in writing its inability to
pay, or shall fail to pay, its debts as they become due; or 
 (k) an ERISA Event shall have occurred that, in the opinion of
the Required Lenders, when taken together with other ERISA Events that have occurred, could reasonably be expected to result in liability to the Borrower and the Subsidiaries (other than Carrier Enterprise) in an aggregate amount exceeding
$1,000,000; or 
 (l) any judgment or order for the payment of money where the amount not covered by insurance exceeds
$5,000,000 individually or in the aggregate shall be rendered against the Borrower or any Subsidiary (other than Carrier Enterprise), and either (i) enforcement proceedings shall have been commenced by any creditor upon such judgment or order
or (ii) there shall be a period of thirty (30) consecutive days during which a stay of enforcement of such judgment or order, by reason of a pending appeal or otherwise, shall not be in effect; or 

(m) any non-monetary judgment or order shall be rendered against the Borrower or any Subsidiary (other than Carrier Enterprise) that
could reasonably be expected to have a Material Adverse Effect, and there shall be a period of thirty (30) consecutive days during which a stay of enforcement of such judgment or order, by reason of a pending appeal or otherwise, shall not be
in effect; or 
 (n) a Change in Control shall occur or exist; or 

(o) any provision of any Subsidiary Guarantee Agreement shall for any reason cease to be valid and binding on, or enforceable against,
any Subsidiary Loan Party, or any Subsidiary Loan Party shall so state in writing, or any Subsidiary Loan Party shall seek to terminate its Subsidiary Guarantee Agreement; or 

(p) any provision of any other Loan Document, at any time after its execution and delivery and for any reason other than as expressly
permitted hereunder or thereunder or satisfaction in full of all the Obligations, ceases to be in full force and effect; or any Loan Party contests in any manner the validity or enforceability of any Loan Document; or any Loan Party denies that it
has any or further liability or obligation under any Loan Document, or purports to revoke, terminate or rescind any Loan Document; or 

(q) an event of default shall have occurred under any other Loan Document; 

 

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 then, and in every such event (other than an event with respect to the Borrower described in clause
(h) or (i) of this Section 8.1) and at any time thereafter during the continuance of such event, the Administrative Agent may, and upon the written request of the Required Lenders shall, by notice to the Borrower,
take any or all of the following actions, at the same or different times: (i) terminate the Commitments, whereupon the Commitment of each Lender shall terminate immediately; (ii) declare the principal of and any accrued interest on the
Loans, and all other Obligations (except obligations in respect of any interest rate Hedging Agreement to which a Lender is a counterparty and such Lender has requested otherwise in writing to the Administrative Agent) owing hereunder, to be,
whereupon the same shall become, due and payable immediately, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrower and (iii) exercise all remedies contained in any other Loan Document;
and that, if an Event of Default specified in either clause (h) or (i) shall occur, the Commitments shall automatically terminate and the principal of the Loans then outstanding, together with accrued interest thereon, and
all fees, and all other Obligations shall automatically become due and payable, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrower. 

ARTICLE IX 

THE ADMINISTRATIVE AGENT 

Section 9.1 Appointment and Authority. Each of the Lenders and the Issuing Bank hereby irrevocably appoints Bank of
America to act on its behalf as the Administrative Agent hereunder and under the other Loan Documents and authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to the Administrative Agent
by the terms hereof or thereof, together with such actions and powers as are reasonably incidental thereto. The provisions of this Article are solely for the benefit of the Administrative Agent, the Lenders and the Issuing Bank, and the Borrower
shall not have rights as a third party beneficiary of any of such provisions. 
 Section 9.2 Delegation of
Duties. The Administrative Agent may perform any and all of its duties and exercise its rights and powers hereunder or under any other Loan Document by or through any one or more sub-agents appointed by the Administrative Agent. The
Administrative Agent and any such sub-agent may perform any and all of its duties and exercise its rights and powers by or through their respective Related Parties. The exculpatory provisions of this Article shall apply to any such sub-agent and to
the Related Parties of the Administrative Agent and any such sub-agent, and shall apply to their respective activities in connection with the syndication of the credit facilities provided for herein as well as activities as Administrative Agent.

 Section 9.3 Non-Reliance on Administrative Agent and Other Lenders. Each Lender and the Issuing Bank
acknowledges that it has, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Agreement. Each Lender and the Issuing Bank also acknowledges that it will, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents
and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Loan Document or any related agreement or any document furnished
hereunder or thereunder. 
 Section 9.4 Exculpatory Provisions. Administrative Agent shall not have any
duties or obligations except those expressly set forth herein and in the other Loan Documents. Without limiting the generality of the foregoing, the Administrative Agent: 

(a) shall not be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing;

  

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 (b) shall not have any duty to take any discretionary action or exercise any discretionary
powers, except discretionary rights and powers expressly contemplated hereby or by the other Loan Documents that the Administrative Agent is required to exercise as directed in writing by the Required Lenders (or such other number or percentage of
the Lenders as shall be expressly provided for herein or in the other Loan Documents), provided that the Administrative Agent shall not be required to take any action that, in its opinion or the opinion of its counsel, may expose the
Administrative Agent to liability or that is contrary to any Loan Document or applicable law; and 
 (c) shall not, except as
expressly set forth herein and in the other Loan Documents, have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to the Borrower or any of its Affiliates that is communicated to or obtained by the
Person serving as the Administrative Agent or any of its Affiliates in any capacity. 
 The Administrative Agent shall not be
liable for any action taken or not taken by it (i) with the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary, or as the Administrative Agent shall believe in good faith
shall be necessary, under the circumstances as provided in Sections 10.2 and 8.1) or (ii) in the absence of its own gross negligence or willful misconduct. The Administrative Agent shall be deemed not to have knowledge of any
Default unless and until notice describing such Default is given to the Administrative Agent by the Borrower, a Lender or the Issuing Bank. 

The Administrative Agent shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or
representation made in or in connection with this Agreement or any other Loan Document, (ii) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith, (iii) the
performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any Default, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any
other Loan Document or any other agreement, instrument or document or (v) the satisfaction of any condition set forth in Article III or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the
Administrative Agent. 
 Section 9.5 Reliance by Administrative Agent. The Administrative Agent shall be
entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message, Internet or intranet website posting or other
distribution) believed by it to be genuine and to have been signed, sent or otherwise authenticated by the proper Person. The Administrative Agent also may rely upon any statement made to it orally or by telephone and believed by it to have been
made by the proper Person, and shall not incur any liability for relying thereon. In determining compliance with any condition hereunder to the making of a Loan, or the issuance of a Letter of Credit, that by its terms must be fulfilled to the
satisfaction of a Lender or the Issuing Bank, the Administrative Agent may presume that such condition is satisfactory to such Lender or the Issuing Bank unless the Administrative Agent shall have received notice to the contrary from such Lender or
the Issuing Bank prior to the making of such Loan or the issuance of such Letter of Credit. The Administrative Agent may consult with legal counsel (who may be counsel for the Borrower), independent accountants and other experts selected by it, and
shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts. 
  

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 Section 9.6 The Administrative Agent in its Individual Capacity. The
Person serving as the Administrative Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not the Administrative Agent and the term “Lender” or
“Lenders” shall, unless otherwise expressly indicated or unless the context otherwise requires, include the Person serving as the Administrative Agent hereunder in its individual capacity. Such Person and its Affiliates may accept deposits
from, lend money to, act as the financial advisor or in any other advisory capacity for and generally engage in any kind of business with the Borrower or any Subsidiary or other Affiliate thereof as if such Person were not the Administrative Agent
hereunder and without any duty to account therefor to the Lenders. 
 Section 9.7 Resignation of Administrative
Agent. Administrative Agent may at any time give notice of its resignation to the Lenders, the Issuing Bank and the Borrower. Upon receipt of any such notice of resignation, the Required Lenders shall have the right, in consultation with the
Borrower, to appoint a successor, which shall be a bank with an office in the United States, or an Affiliate of any such bank with an office in the United States. If no such successor shall have been so appointed by the Required Lenders and shall
have accepted such appointment within 30 days after the retiring Administrative Agent gives notice of its resignation, then the retiring Administrative Agent may on behalf of the Lenders and the Issuing Bank, appoint a successor Administrative Agent
meeting the qualifications set forth above; provided that if the Administrative Agent shall notify the Borrower and the Lenders that no qualifying Person has accepted such appointment, then such resignation shall nonetheless become effective
in accordance with such notice and (1) the retiring Administrative Agent shall be discharged from its duties and obligations hereunder and under the other Loan Documents and (2) all payments, communications and determinations provided to
be made by, to or through the Administrative Agent shall instead be made by or to each Lender and the Issuing Bank directly, until such time as the Required Lenders appoint a successor Administrative Agent as provided for above in this Section. Upon
the acceptance of a successor’s appointment as Administrative Agent hereunder, such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring (or retired) Administrative Agent, and the
retiring Administrative Agent shall be discharged from all of its duties and obligations hereunder or under the other Loan Documents (if not already discharged therefrom as provided above in this Section). The fees payable by the Borrower to a
successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrower and such successor. After the retiring Administrative Agent’s resignation hereunder and under the other Loan
Documents, the provisions of this Article and Section 10.3 shall continue in effect for the benefit of such retiring Administrative Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to
be taken by any of them while the retiring Administrative Agent was acting as Administrative Agent. 
 Any resignation by Bank
of America as Administrative Agent pursuant to this Section shall also constitute its resignation as Issuing Bank and Swingline Lender. Upon the acceptance of a successor’s appointment as Administrative Agent hereunder, (a) such successor
shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring Issuing Bank and Swingline Lender, (b) the retiring Issuing Bank and Swingline Lender shall be discharged from all of their respective
duties and obligations hereunder or under the other Loan Documents, and (c) the successor Issuing Bank shall issue letters of credit in substitution for the Letters of Credit, if any, outstanding at the time of such succession or make other
arrangements satisfactory to the retiring Issuing Bank to effectively assume the obligations of the retiring Issuing Bank with respect to such Letters of Credit. 

Section 9.8 No Other Duties, etc. Anything herein to the contrary notwithstanding, the Sole Book Manager, Sole Lead
Arranger, Syndication Agent or Co-Documentation Agents listed on the cover page hereof shall have any powers, duties or responsibilities under this Agreement or any of the other Loan Documents, except in its capacity, as applicable, as the
Administrative Agent, a Lender or the Issuing Bank hereunder. 
  

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 ARTICLE X 

MISCELLANEOUS 

Section 10.1 Notices; Electronic Communications. 

(a) Except in the case of notices and other communications expressly permitted to be given by telephone, all notices and other
communications to any party herein to be effective shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by telecopy, as follows: 

 

			
	To the Borrower:	 	Watsco, Inc.
		 	2665 South Bayshore Drive, Suite 901
		 	Coconut Grove, Florida 33133
		 	Attention: Ana M. Menendez
		 	Chief Financial Officer
		 	Facsimile: (305) 858-6898
		 	Website: www.watsco.com
		 	
	With a copy to:	 	Moore & Van Allen PLLC
		 	100 North Tryon Street, Suite 4700
		 	Charlotte, North Carolina 28202
		 	Attention: Stephen Hope, Esquire
		 	Facsimile: (704) 378-2036
		 	
	To the Administrative Agent or the	 	
	Swingline Bank:	 	Bank of America, N.A.
		 	100 N. Tryon Street
		 	Mail Code: NC1-001-04-39
		 	Charlotte, North Carolina 28255
		 	Attention:
		 	Sabrina D. Miles
		 	Telephone: (704) 388-1043
		 	Facsimile: (704) 719-8762
		 	Email: sabrina.d.miles@bankofamerica.com
		 	
	With a copy in each case to:	 	Bank of America, N.A.
		 	Agency Management
		 	231 S. LaSalle Street
		 	Mail Code: IL1-231-10-41
		 	Chicago, Illinois 60604
		 	Attention: Felicia Brinson
		 	Telephone: (312) 828-7299
		 	Facsimile: (877) 216-2432
		 	Email: felicia.brinson@bankofamerica.com
		 	
	 To the Issuing Bank:
	 	Bank of America, N.A.
		 	Trade Operations
		 	1 Fleet Way
		 	Mail Code: PA6-580-02-30
		 	Scranton, Pennsylvania
		 	Attention: Alfonso Malave
		 	Telephone: (570) 330-4212
		 	Facsimile: (570) 330-4186
		 	Email: alfonso.malave@bankofamerica.com
		 	
	To any other Lender:	 	the address set forth in the Administrative
		 	Questionnaire

  

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 Any party hereto may change its address or telecopy number for notices and other communications hereunder by
notice to the other parties hereto. All such notices and other communications shall, when transmitted by overnight delivery, or faxed, be effective when delivered for overnight (next-day) delivery, or transmitted in legible form by facsimile
machine, respectively, or if mailed, upon the fifth Business Day after the date deposited into the mails or if delivered, upon delivery; provided, that notices delivered to the Administrative Agent, the Issuing Bank or the Swingline Bank
shall not be effective until actually received by such Person at its address specified in this Section 10.1. 
 (b)
Any agreement of the Administrative Agent and the Lenders herein to receive certain notices by telephone or facsimile is solely for the convenience and at the request of the Borrower. The Administrative Agent and the Lenders shall be entitled to
rely on the authority of any Person purporting to be a Person authorized by the Borrower to give such notice and the Administrative Agent and Lenders shall not have any liability to the Borrower or other Person on account of any action taken or not
taken by the Administrative Agent or the Lenders in reliance upon such telephonic or facsimile notice. The obligation of the Borrower to repay the Loans and all other Obligations hereunder shall not be affected in any way or to any extent by any
failure of the Administrative Agent and the Lenders to receive written confirmation of any telephonic or facsimile notice or the receipt by the Administrative Agent and the Lenders of a confirmation which is at variance with the terms understood by
the Administrative Agent and the Lenders to be contained in any such telephonic or facsimile notice. 
 (c) Electronic
Communications. Notices and other communications to the Lenders and the Issuing Bank hereunder may be delivered or furnished by electronic communication (including e mail and Internet or intranet websites) pursuant to procedures approved by the
Administrative Agent, provided that the foregoing shall not apply to notices to any Lender or the Issuing Bank pursuant to Article II if such Lender or the Issuing Bank, as applicable, has notified the Administrative Agent that it is
incapable of receiving notices under such Article by electronic communication. The Administrative Agent or the Borrower may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to
procedures approved by it, provided that approval of such procedures may be limited to particular notices or communications. 

Unless the Administrative Agent otherwise prescribes, (i) notices and other communications sent to an e-mail address shall be deemed
received upon the sender’s receipt of an acknowledgement from the intended recipient (such as by the “return receipt requested” function, as available, return e-mail or other written acknowledgement), provided that if such
notice or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next business day for the recipient, and (ii) notices
or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as described in the foregoing clause (i) of notification that such notice or
communication is available and identifying the website address therefor. 
  

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 (d) The Platform. THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE.”
THE AGENT PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE BORROWER MATERIALS OR THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE BORROWER MATERIALS. NO WARRANTY OF ANY
KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY ANY AGENT PARTY IN CONNECTION WITH THE
BORROWER MATERIALS OR THE PLATFORM. In no event shall the Administrative Agent or any of its Related Parties (collectively, the “Agent Parties”) have any liability to the Borrower, any Lender, the Issuing Bank or any other
Person for losses, claims, damages, liabilities or expenses of any kind (whether in tort, contract or otherwise) arising out of the Borrower’s or the Administrative Agent’s transmission of Borrower Materials through the Internet, except to
the extent that such losses, claims, damages, liabilities or expenses are determined by a court of competent jurisdiction by a final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Agent Party;
provided, however, that in no event shall any Agent Party have any liability to the Borrower, any Lender, the Issuing Bank or any other Person for indirect, special, incidental, consequential or punitive damages (as opposed to direct
or actual damages). 
 Section 10.2 Waiver; Amendments. 

(a) No failure or delay by the Administrative Agent, the Issuing Bank or any Lender in exercising any right or power hereunder or any
other Loan Document, and no course of dealing between the Borrower and the Administrative Agent or any Lender, shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power or any abandonment or
discontinuance of steps to enforce such right or power, preclude any other or further exercise thereof or the exercise of any other right or power hereunder or thereunder. The rights and remedies of the Administrative Agent, the Issuing Bank and the
Lenders hereunder and under the other Loan Documents are cumulative and are not exclusive of any rights or remedies provided by law. No waiver of any provision of this Agreement or any other Loan Document or consent to any departure by the Borrower
therefrom shall in any event be effective unless the same shall be permitted by paragraph (b) of this Section 10.2, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which
given. Without limiting the generality of the foregoing, the making of a Loan or the issuance of a Letter of Credit shall not be construed as a waiver of any Default or Event of Default, regardless of whether the Administrative Agent, any Lender or
the Issuing Bank may have had notice or knowledge of such Default or Event of Default at the time. 
 (b) No amendment or waiver
of any provision of this Agreement or the other Loan Documents, nor consent to any departure by the Borrower therefrom, shall in any event be effective unless the same shall be in writing and signed by the Borrower and the Required Lenders or the
Borrower and the Administrative Agent with the consent of the Required Lenders (and, if the Administrative Agent executes and delivers any such amendment, waiver or consent which states that it is being provided by the Administrative Agent in its
capacity as such with the consent of the Required Lenders, the Borrower shall be entitled to rely thereon) and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given;
provided, that no amendment or waiver shall: (i) increase the Commitment of any Lender without the written consent of such Lender, (ii) reduce the principal amount of any Loan or LC Disbursement or reduce the rate of interest
thereon, or reduce any fees payable hereunder, without the written consent of each Lender affected thereby, (iii) postpone the date fixed for any payment of any principal of, or interest on, any Loan or LC Disbursement or interest thereon or
any fees hereunder or reduce the amount of, waive or excuse any such payment, or postpone the scheduled date for the termination or reduction of any Commitment, without the written consent of each Lender affected thereby, (iv) change
Section 2.20(b) or (c) in a manner that would alter the pro rata sharing of payments required thereby, without the written consent of each Lender, (v) change any of the provisions of this Section 10.2 or the
definition of “Required Lenders” or any other provision hereof specifying the number or percentage of Lenders which are required to waive, amend or modify any rights hereunder or make any determination or grant any consent hereunder,
without the written consent of each Lender; (vi) release any guarantor or limit the liability of any such guarantor under any guaranty agreement, without the written consent of each Lender; (vii) release all or substantially all of the
collateral (if any) securing any of the Obligations, without the written consent of each Lender; (viii) waive any condition set forth in Section 3.2(a), without the written consent of each Lender; provided further,
that no such agreement shall amend, modify or otherwise affect the rights, duties or obligations of the Administrative Agent, the Swingline Bank or the Issuing Bank without the prior written consent of such Person. Notwithstanding anything to the
contrary herein, no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent hereunder (and any amendment, waiver or consent which by its terms requires the consent of all Lenders may be effected with the
consent of all Lenders other than Defaulting Lenders), except that (i) the Commitment of such Defaulting Lender may not be increased or extended without the consent of such Defaulting Lender and (ii) any amendment, waiver or consent
requiring the consent of all Lenders or each affected Lender that by its terms affects any Defaulting Lender more adversely than other affected Lenders shall require the consent of such Defaulting Lender. 

 

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 Section 10.3 Expenses; Indemnification. 

(a) The Borrower shall pay (i) all reasonable, out-of-pocket costs and expenses of the Administrative Agent and its Affiliates,
including the reasonable fees, charges and disbursements of counsel for the Administrative Agent and its Affiliates, in connection with the syndication of the credit facilities provided for herein, the preparation and administration of the Loan
Documents and any amendments, modifications or waivers thereof (whether or not the transactions contemplated in this Agreement or any other Loan Document shall be consummated), (ii) all reasonable out-of-pocket expenses incurred by the Issuing
Bank in connection with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder and (iii) all out-of-pocket costs and expenses (including, without limitation, the reasonable fees, charges and
disbursements of outside counsel and the allocated cost of inside counsel) incurred by the Administrative Agent, the Issuing Bank or any Lender in connection with the enforcement or protection of its rights in connection with this Agreement,
including its rights under this Section 10.3, or in connection with the Loans made or any Letters of Credit issued hereunder, including all such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect
of such Loans or Letters of Credit. 
 (b) The Borrower shall indemnify the Administrative Agent, the Issuing Bank and each
Lender, and each Related Party of any of the foregoing (each, an “Indemnitee”) against, and hold each of them harmless from, any and all costs, losses, liabilities, claims, damages and related expenses, including the fees,
charges and disbursements of any counsel for any Indemnitee, which may be incurred by or asserted against any Indemnitee arising out of, in connection with or as a result of (i) the execution or delivery of this Agreement or any other agreement
or instrument contemplated hereby, the performance by the parties hereto of their respective obligations hereunder or the consummation of any of the transactions contemplated hereby, (ii) any Loan or Letter of Credit or any actual or proposed
use of the proceeds therefrom (including any refusal by the Issuing Bank to honor a demand for payment under a Letter of Credit if the documents presented in connection with such demand do not strictly comply with the terms of such Letter of
Credit), (iii) any actual or alleged presence or release of Hazardous Materials on or from any property owned by the Borrower or any Subsidiary or any Environmental Liability related in any way to the Borrower or any Subsidiary, (iv) any
actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory and regardless of whether any Indemnitee is a party thereto or (v) any civil penalty or
fine assessed by OFAC against any Lender, the Issuing Bank or the Administrative Agent and all reasonable costs and expenses (including counsel fees and disbursements) incurred in connection with defense thereof, as a result of the funding of Loans,
the issuance of Letters of Credit, or the acceptance of payments under the Loan Documents; provided, that the Borrower shall not be obligated to indemnify any Indemnitee for any of the foregoing arising out of such Indemnitee’s gross
negligence or willful misconduct as determined by a court of competent jurisdiction in a final and nonappealable judgment. 
  

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 (c) The Borrower shall pay, and hold the Administrative Agent and each of the Lenders
harmless from and against, any and all present and future stamp, documentary, and other similar taxes with respect to this Agreement and any other Loan Documents, any collateral described therein, or any payments due thereunder, and save the
Administrative Agent and each Lender harmless from and against any and all liabilities with respect to or resulting from any delay or omission to pay such taxes. 

(d) To the extent that the Borrower fails to pay any amount required to be paid to the Administrative Agent, the Issuing Bank or the
Swingline Lender under clauses (a), (b) or (c) hereof, each Lender severally agrees to pay to the Administrative Agent, the Issuing Bank or the Swingline Lender, as the case may be, such Lender’s Pro Rata Share
(determined as of the time that the unreimbursed expense or indemnity payment is sought) of such unpaid amount; provided, that the unreimbursed expense or indemnified payment, claim, damage, liability or related expense, as the case may be,
was incurred by or asserted against the Administrative Agent, the Issuing Bank or the Swingline Lender in its capacity as such. 

(e) To the extent permitted by applicable law, the Borrower shall not assert, and hereby waives, any claim against any Indemnitee, on any
theory of liability, for special, indirect, consequential or punitive damages (as opposed to actual or direct damages) arising out of, in connection with or as a result of, this Agreement or any agreement or instrument contemplated hereby, the
transactions contemplated therein, any Loan or any Letter of Credit or the use of proceeds thereof. No Indemnitee referred to in subsection (b) above shall be liable for any damages arising from the use by unintended recipients of any
information or other materials distributed to such unintended recipients by such Indemnitee through telecommunications, electronic or other information transmission systems in connection with this Agreement or the other Loan Documents or the
transactions contemplated hereby or thereby other than for direct or actual damages resulting from the gross negligence of willful misconduct of such Indemnitee as determined by a final and nonappealable judgment of a court of competent
jurisdiction. 
 (f) All amounts due under this Section 10.3 shall be payable promptly after written demand
therefor. 
 (g) The agreements in this Section shall survive the resignation of the Administrative Agent, the Issuing Bank and
the Swingline Lender, the replacement of any Lender, the termination of the Aggregate Commitments and the repayment, satisfaction or discharge of all the other Obligations. 

Section 10.4 Successors and Assigns. 

(a) Successors and Assigns Generally. The provisions of this Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns permitted hereby, except that neither the Borrower nor any other Loan Party may assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of
the Administrative Agent and each Lender and no Lender may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an assignee in accordance with the provisions of subsection (b) of this Section,
(ii) by way of participation in accordance with the provisions of subsection (d) of this Section, or (iii) by way of pledge or assignment of a security interest subject to the restrictions of subsection (f) of this
Section (and any other attempted assignment or transfer by any party hereto shall be null and void). Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective
successors and assigns permitted hereby, Participants to the extent provided in subsection (d) of this Section and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent, the Issuing Bank
and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement. 
  

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 (b) Assignments by Lenders. Any Lender may at any time assign to one or more
assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans (including for purposes of this subsection (b), participations in LC Exposure and in Swingline Loans) at
the time owing to it); provided that any such assignment shall be subject to the following conditions: 

(i) Minimum Amounts. 

(A) in the case of an assignment of the entire remaining amount of the assigning Lender’s Commitment and the Loans at
the time owing to it or in the case of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no minimum amount need be assigned; and 

(B) in any case not described in subsection (b)(i)(A) of this Section, the aggregate amount of the Commitment
(which for this purpose includes Loans outstanding thereunder) or, if the Commitment is not then in effect, the principal outstanding balance of the Loans of the assigning Lender subject to each such assignment, determined as of the date the
Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent or, if “Trade Date” is specified in the Assignment and Assumption, as of the Trade Date, shall not be less than $5,000,000, unless each of
the Administrative Agent and, so long as no Event of Default has occurred and is continuing, the Borrower otherwise consents (each such consent not to be unreasonably withheld or delayed); provided, however, that concurrent assignments
to members of an Assignee Group and concurrent assignments from members of an Assignee Group to a single Eligible Assignee (or to an Eligible Assignee and members of its Assignee Group) will be treated as a single assignment for purposes of
determining whether such minimum amount has been met. 
 (ii) Proportionate Amounts. Each partial
assignment shall be made as an assignment of a proportionate part of all the assigning Lender’s rights and obligations under this Agreement with respect to the Loans or the Commitment assigned, except that this clause (ii) shall not
apply to the Swingline Lender’s rights and obligations in respect of Swingline Loans. 
 (iii) Required
Consents. No consent shall be required for any assignment except to the extent required by subsection (b)(i)(B) of this Section and, in addition: 

(A) the consent of the Borrower (such consent not to be unreasonably withheld or delayed) shall be required unless
(1) an Event of Default has occurred and is continuing at the time of such assignment or (2) such assignment is to a Lender, an Affiliate of a Lender or an Approved Fund; 

 

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 (B) the consent of the Administrative Agent (such consent not to be
unreasonably withheld or delayed) shall be required if such assignment is to be a Person that is not a Lender, an Affiliate of such Lender or an Approved Fund with respect to such Lender; 

(C) the consent of the Issuing Bank (such consent not to be unreasonably withheld or delayed) shall be required for any
assignment that increases the obligation of the assignee to participate in exposure under one or more Letters of Credit (whether or not then outstanding); and 

(D) the consent of the Swingline Lender (such consent not to be unreasonably withheld or delayed) shall be required for
any assignment. 
 (iv) Assignment and Assumption. The parties to each assignment shall execute and
deliver to the Administrative Agent an Assignment and Assumption, together with a processing and recordation fee in the amount of $3,500; provided, however, that the Administrative Agent may, in its sole discretion, elect to waive such
processing and recordation fee in the case of any assignment. The assignee, if it is not a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire. 

(v) No Assignment to Certain Persons. No such assignment shall be made to (A) the Borrower or any of the
Borrower’s Affiliates or Subsidiaries, (B) any Defaulting Lender or its Subsidiaries or Affiliates that are Distressed Persons, or (C) to a natural Person. 

Subject to acceptance and recording thereof by the Administrative Agent pursuant to subsection (c) of this Section, from and
after the effective date specified in each Assignment and Assumption, the assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a
Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption
covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits of Sections 2.17, 2.18, 2.19, and
10.3 with respect to facts and circumstances occurring prior to the effective date of such assignment. Upon request, the Borrower (at its expense) shall execute and deliver a Note to the assignee Lender. Any assignment or transfer by a Lender
of rights or obligations under this Agreement that does not comply with this subsection shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with subsection
(d) of this Section. 
 (c) Register. The Administrative Agent, acting solely for this purpose as an agent of
the Borrower, shall maintain at the Administrative Agent’s Office a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitments of, and principal
amounts of the Loans and LC Exposure owing to, each Lender pursuant to the terms hereof from time to time (the “Register”). The entries in the Register shall be conclusive, and the Borrower, the Administrative Agent and the
Lenders may treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. In addition, the Administrative Agent shall maintain
on the Register the designation, and revocation of designation, of any Lender as a Defaulting Lender of which it has received notice. The Register shall be available for inspection by the Borrower and any Lender, at any reasonable time and from time
to time upon reasonable prior notice. 
  

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 (d) Participations. Any Lender may at any time, without the consent of, or notice to,
the Borrower or the Administrative Agent, sell participations to any Person (other than a natural person or the Borrower or any of the Borrower’s Affiliates or Subsidiaries) (each, a “Participant”) in all or a portion of
such Lender’s rights and/or obligations under this Agreement (including all or a portion of its Commitment and/or the Loans (including such Lender’s participations in LC Exposure and/or Swingline Loans) owing to it); provided that
(i) such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations and (iii) the Borrower, the
Administrative Agent, the Lenders and the Issuing Bank shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement. 

Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole
right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided that such agreement or instrument may provide that such Lender will not, without the consent of the Participant,
agree to any amendment, waiver or other modification described in the first proviso to Section 10.2 that affects such Participant. Subject to subsection (e) of this Section, the Borrower agrees that each Participant shall be
entitled to the benefits of Sections 2.17, 2.18 and 2.19 to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to subsection (b) of this Section. To the extent permitted by
law, each Participant also shall be entitled to the benefits of Section 10.7 as though it were a Lender, provided such Participant agrees to be subject to Section 2.20 as though it were a Lender. 

(e) Limitations upon Participant Rights. A Participant shall not be entitled to receive any greater payment under
Section 2.17 or 2.19 than the applicable Lender would have been entitled to receive with respect to the participation sold to such Participant, unless the sale of the participation to such Participant is made with the
Borrower’s prior written consent. A Participant that would be a Foreign Lender if it were a Lender shall not be entitled to the benefits of Section 2.19 unless the Borrower is notified of the participation sold to such Participant
and such Participant agrees, for the benefit of the Borrower, to comply with Section 2.19(e) as though it were a Lender. 

(f) Certain Pledges. Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under
this Agreement (including under its Note, if any) to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank; provided that no such pledge or assignment shall release such Lender
from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto. 
 (g)
Electronic Execution of Assignments. The words “execution,” “signed,” “signature,” and words of like import in any Assignment and Assumption shall be deemed to include electronic signatures or the keeping of
records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any
applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act. 

(h) Resignation as Issuing Bank or Swingline Lender after Assignment. Notwithstanding anything to the contrary contained herein,
if at any time Bank of America assigns all of its Commitment and Loans pursuant to subsection (b) above, Bank of America may, (i) upon 30 days’ notice to the Borrower and the Lenders, resign as Issuing Bank and/or
(ii) upon 30 days’ notice to the Borrower, resign as Swingline Lender. In the event of any such resignation as Issuing Bank or Swingline Lender, the Borrower shall be entitled to appoint from among the Lenders a successor Issuing Bank or
Swingline Lender hereunder; provided, however, that no failure by the Borrower to appoint any such successor shall affect the resignation of Bank of America as Issuing Bank or Swingline Lender, as the case may be. If Bank of America
resigns as Issuing Bank, it shall retain all the rights, powers, privileges and duties of the Issuing Bank hereunder with respect to all Letters of Credit outstanding as of the effective date of its resignation as Issuing Bank and all LC Exposure
with respect thereto. If Bank of America resigns as Swingline Lender, it shall retain all the rights of the Swingline Lender provided for hereunder with respect to Swingline Loans made by it and outstanding as of the effective date of such
resignation, including the right to require the Lenders to make Base Rate Loans or fund risk participations in outstanding Swingline Loans pursuant to Section 2.5. Upon the appointment of a successor Issuing Bank and/or Swingline Lender,
(a) such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring Issuing Bank or Swingline Lender, as the case may be, and (b) the successor Issuing Bank shall issue letters of
credit in substitution for the Letters of Credit, if any, outstanding at the time of such successor or make other arrangements satisfactory to Bank of America to effectively assume the obligations of Bank of America with respect to such Letters of
Credit. 
  

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 Section 10.5 Governing Law; Jurisdiction; Consent to Service of Process.

 (a) This Agreement and the other Loan Documents shall be construed in accordance with and be governed by the law (without
giving effect to the conflict of law principles thereof) of the State of North Carolina. 
 (b) The Borrower hereby irrevocably
and unconditionally submits, for itself and its property, to the non-exclusive jurisdiction of the United States District Court of the Western District of North Carolina, and of any state court of the State of North Carolina sitting in Mecklenburg
County and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement or any other Loan Document or the transactions contemplated hereby or thereby, or for recognition or enforcement of any
judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in such North Carolina state court or, to the extent permitted by
applicable law, such Federal court. Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by
law. Nothing in this Agreement or any other Loan Document shall affect any right that the Administrative Agent, the Issuing Bank or any Lender may otherwise have to bring any action or proceeding relating to this Agreement or any other Loan Document
against the Borrower or its properties in the courts of any jurisdiction. 
 (c) The Borrower irrevocably and unconditionally
waives any objection which it may now or hereafter have to the laying of venue of any such suit, action or proceeding described in paragraph (b) of this Section 10.5 and brought in any court referred to in paragraph (b) of this
Section 10.5. Each of the parties hereto irrevocably waives, to the fullest extent permitted by applicable law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court. 

(d) Each party to this Agreement irrevocably consents to the service of process in the manner provided for notices in
Section 10.1. Nothing in this Agreement or in any other Loan Document will affect the right of any party hereto to serve process in any other manner permitted by law. 

Section 10.6 Waiver of Jury Trial. EACH PARTY HERETO IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER
THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER,
AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 10.6. 

 

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 Section 10.7 Right of Setoff. In addition to any rights now or hereafter
granted under applicable law and not by way of limitation of any such rights, each Lender and the Issuing Bank shall have the right, at any time or from time to time upon the occurrence and during the continuance of an Event of Default, without
prior notice to the Borrower, any such notice being expressly waived by the Borrower to the extent permitted by applicable law, to set off and apply against all deposits (general or special, time or demand, provisional or final) of the Borrower at
any time held or other obligations at any time owing by such Lender and the Issuing Bank to or for the credit or the account of the Borrower against any and all Obligations held by such Lender or the Issuing Bank, as the case may be, irrespective of
whether such Lender or the Issuing Bank shall have made demand hereunder and although such Obligations may be unmatured. Each Lender and the Issuing Bank agree promptly to notify the Administrative Agent and the Borrower after any such set-off and
any application made by such Lender and the Issuing Bank, as the case may be; provided, that the failure to give such notice shall not affect the validity of such set-off and application. 

Section 10.8 Counterparts; Effectiveness of Agreement; Integration. This Agreement may be executed by one or more of
the parties to this Agreement in any number of separate counterparts (including by telecopy), and all of said counterparts taken together shall be deemed to constitute one and the same instrument. Notwithstanding execution of this Agreement by the
Borrower and each of the Lenders party hereto and satisfaction (or waiver) of each of the conditions set forth in Section 3.1, this Agreement shall not be or become effective and binding upon the parties until executed and accepted by
the Administrative Agent in its capacity as such on behalf of the Lenders. This Agreement, the other Loan Documents, and any separate letter agreement(s) relating to any fees payable to the Administrative Agent constitute the entire agreement among
the parties hereto and thereto regarding the subject matters hereof and thereof and supersede all prior agreements and understandings, oral or written, regarding such subject matters. 

Section 10.9 Survival. All covenants, agreements, representations and warranties made by the Borrower herein and in
the certificates or other instruments delivered in connection with or pursuant to this Agreement shall be considered to have been relied upon by the other parties hereto and shall survive the execution and delivery of this Agreement and the making
of any Loans and issuance of any Letters of Credit, regardless of any investigation made by any such other party or on its behalf and notwithstanding that the Administrative Agent, the Issuing Bank or any Lender may have had notice or knowledge of
any Default or incorrect representation or warranty at the time any credit is extended hereunder, and shall continue in full force and effect as long as the principal of or any accrued interest on any Loan or any fee or any other amount payable
under this Agreement is outstanding and unpaid or any Letter of Credit is outstanding and so long as the Commitments have not expired or terminated. The provisions of Sections 2.17, 2.18, 2.19, and 10.3 and Article
IX shall survive and remain in full force and effect regardless of the consummation of the transactions contemplated hereby, the repayment of the Loans, the expiration or termination of the Letters of Credit and the Commitments or the
termination of this Agreement or any provision hereof. All representations and warranties made herein, in the certificates, reports, notices, and other documents delivered pursuant to this Agreement shall survive the execution and delivery of this
Agreement and the other Loan Documents, and the making of the Loans and the issuance of the Letters of Credit. 
  

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 Section 10.10 Severability. Any provision of this Agreement or any other
Loan Document held to be illegal, invalid or unenforceable in any jurisdiction, shall, as to such jurisdiction, be ineffective to the extent of such illegality, invalidity or unenforceability without affecting the legality, validity or
enforceability of the remaining provisions hereof or thereof; and the illegality, invalidity or unenforceability of a particular provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other
jurisdiction. 
 Section 10.11 Confidentiality. Each of the Administrative Agent, the Issuing Bank and each
Lender agrees to take normal and reasonable precautions to maintain the confidentiality of any information designated in writing as confidential and provided to it by the Borrower or any Subsidiary, except that, subject to taking such normal and
reasonable precautions to maintain the confidentiality thereof, such information may be disclosed by the Administrative Agent, the Issuing Bank and any Lender (i) to any Related Party of the Administrative Agent, the Issuing Bank or any such
Lender, including without limitation accountants, legal counsel and other advisors, provided, that such Related Party agrees to be bound by the provisions of this Section 10.11, (ii) to the extent required by applicable laws
or regulations or by any subpoena or similar legal process, (iii) to the extent requested by any regulatory agency or authority, (iv) to the extent that such information becomes publicly available other than as a result of a breach of this
Section 10.11, or which becomes available to the Administrative Agent, the Issuing Bank, any Lender or any Related Party of any of the foregoing on a nonconfidential basis from a source other than the Borrower, (v) in connection
with the exercise of any remedy hereunder or any suit, action or proceeding relating to this Agreement or the enforcement of rights hereunder, and (vi) subject to provisions substantially similar to this Section 10.11, to any actual
or prospective assignee or Participant, or (vii) with the consent of the Borrower. Any Person required to maintain the confidentiality of any information as provided for in this Section 10.11 shall be considered to have complied
with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such information as such Person would accord its own confidential information. 

Section 10.12 Interest Rate Limitation. Notwithstanding anything herein to the contrary, if at any time the interest
rate applicable to any Loan, together with all fees, charges and other amounts which may be treated as interest on such Loan under applicable law (collectively, the “Charges”), shall exceed the maximum lawful rate of interest
(the “Maximum Rate”) which may be contracted for, charged, taken, received or reserved by a Lender holding such Loan in accordance with applicable law, the rate of interest payable in respect of such Loan hereunder, together
with all Charges payable in respect thereof, shall be limited to the Maximum Rate and, to the extent lawful, the interest and Charges that would have been payable in respect of such Loan but were not payable as a result of the operation of this
Section 10.12 shall be cumulated and the interest and Charges payable to such Lender in respect of other Loans or periods shall be increased (but not above the Maximum Rate therefor) until such cumulated amount, together with interest
thereon at the Federal Funds Rate to the date of repayment, shall have been received by such Lender. 
 Section 10.13
PATRIOT Act Notice. Each Lender subject to the Act hereby notifies the Borrower that pursuant to the requirements of the Act, it is required to obtain, verify and record information that identifies the Borrower, which information includes
the name and address of the Borrower and other information that will allow such Lender to identify the Borrower in accordance with the Act. 

Section 10.14 No Advisory or Fiduciary Responsibility. In connection with all aspects of each transaction contemplated
hereby (including in connection with any amendment, waiver or other modification hereof or of any other Loan Document), the Borrower acknowledges and agrees, and acknowledges its Affiliates’ understanding, that: (i) (A) the arranging
and other services regarding this Agreement provided by the Administrative Agent and the Arranger, are arm’s-length commercial transactions between the Borrower and its Affiliates, on the one hand, and the Administrative Agent and the Arranger,
on the other hand, (B) the Borrower has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate, and (C) the Borrower is capable of evaluating, and understands and accepts, the terms, risks
and conditions of the transactions contemplated hereby and by the other Loan Documents; (ii) (A) the Administrative Agent and the Arranger each is and has been acting solely as a principal and, except as expressly agreed in writing by the
relevant parties, has not been, is not, and will not be acting as an advisor, agent or fiduciary for the Borrower or any of its Affiliates or any other Person and (B) neither the Administrative Agent nor the Arranger has any obligation to the
Borrower or any of its Affiliates with respect to the transactions contemplated hereby except those obligations expressly set forth herein and in the other Loan Documents and (iii) the Administrative Agent and the Arranger and their respective
Affiliates may be engaged in a board range of transactions that involve interests that differ from those of the Borrower and its Affiliates, and neither the Administrative Agent nor the Arranger has any obligation to disclose any of such interests
to the Borrower or its Affiliates. To the fullest extent permitted by law, the Borrower hereby waives and releases any claims that it may have against the Administrative Agent and the Arranger with respect to any breach or alleged breach of agency
or fiduciary duty in connection with any aspect of any transaction contemplated hereby. 
  

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 Section 10.15 Defaulting Lenders. (a) Notwithstanding anything
contained in this Agreement, if any Lender becomes a Defaulting Lender (defined below), then to the extent permitted by applicable Law, 

(i) during any Default Period (defined below) with respect to such Defaulting Lender, such Defaulting Lender’s right
to approve or disapprove any amendment, waiver or consent with respect to this Agreement shall be restricted as set forth in Section 10.2; 

(ii) until such time as the Default Excess (defined below) with respect to such Defaulting Lender shall have been reduced
to zero, any prepayment of Loans shall, if the Borrower so directs at the time of making such prepayment, be applied to the Loans of other Lenders as if such Defaulting Lender had no Loans outstanding; 

(iii) until such time as all Defaulted Payments (defined below) with respect to such Defaulting Lender shall have been
paid, the Administrative Agent may (in its sole discretion) apply any amounts thereafter received by the Administrative Agent for the account of such Defaulting Lender to satisfy such Defaulting Lender’s obligations to make such Defaulted
Payments until such Defaulted Payments have been fully paid; 
 (iv) with respect to any Defaulting Lender with
one or more Defaulted Loans, such Defaulting Lender shall not be entitled to receive any commitment fee pursuant to Section 2.13(b), for any Default Period with respect to such Defaulting Lender (and any such fee that would have
otherwise have been required to have been paid to such Defaulting Lender shall not be required to be paid by the Borrower); 

(v) such Defaulting Lender shall not be entitled to receive its portion of any letter of credit fee pursuant to
Section 2.13(c) for any Default Period with respect to such Defaulting Lender (and any such fee that would have otherwise have been required to have been paid to such Defaulting Lender shall be required to be paid to the Issuing Bank);

 (vi) at the request of the Borrower, such Defaulting Lender may be replaced in accordance with
Section 2.21; and 
  

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 (vii) no assignment otherwise permitted by Section 10.4 shall be
made to such Defaulting Lender or any of its Subsidiaries or Affiliates that are Distressed Persons. 
 (b) As used in this
Agreement, 
 “Default Excess” means, with respect to any Defaulting Lender, the excess,
if any, of (A) such Defaulting Lender’s Pro Rata Share multiplied by the aggregate Revolving Credit Exposure of all Lenders (calculated as if all Defaulting Lenders had funded all of their respective Defaulted Loans) over
(B) the aggregate Revolving Credit Exposure of such Defaulting Lender. 
 “Default
Period” means, with respect to any Defaulting Lender, 
 (i) in the case of any Defaulted Loan, the
period commencing on the date of the applicable Defaulted Loan was required to be extended to the Borrower under this Agreement and ending on the earlier of the following dates: (x) the date on which (A) the Default Excess with respect to
such Defaulting Lender has been reduced to zero (whether by the funding of any Defaulted Loan by such Defaulting Lender or by the non-pro-rata application of any prepayment pursuant to Section 10.15(a)(ii)) and (B) such Defaulting
Lender shall have delivered to the Borrower and the Administrative Agent a written reaffirmation of its intention to honor its obligations hereunder with respect to its Commitment; and (y) the date on which the Borrower, the Administrative
Agent and the Required Lenders (and not including such Defaulting Lender in any such determination, in accordance with Section 10.15(a)(i)) waive the application of this Section 10.15 with respect to such Defaulted Loans of
such Defaulting Lender in writing; 
 (ii) in the case of any Defaulted Payment, the period commencing on the
date of the applicable Defaulted Payment was required to have been paid to the Administrative Agent, the Issuing Bank or other Lender under this Agreement and ending on the earlier of the following dates: (x) the date on which (A) such
Defaulted Payment has been paid to the Administrative Agent, the Issuing Bank or other Lender, as applicable, together with (to the extent that such Person has not otherwise been compensated by the Borrower for such Defaulted Payment) interest
thereon for each day from and including the date such amount is paid but excluding the date of payment, at the greater of the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank
compensation (whether by the funding of any Defaulted Payment by such Defaulting Lender or by the application of any amount pursuant to Section 10.15(a)(iii)) and (B) such Defaulting Lender shall have delivered to the Administrative
Agent, Issuing Bank and any other such Lender, as applicable, a written reaffirmation of its intention to honor its obligations hereunder with respect to such payments; and (y) the date on which the Administrative Agent, the Issuing Bank and
any such other Lender, as applicable, waive the application of this Section 10.15 with respect to such Defaulted Payments of such Defaulting Lender in writing; and 

(iii) in the case of any Distress Event determined by the Administrative Agent (in its good faith judgment) or the
Required Lenders (in their respective good faith judgment) to exist, the period commencing on the date of the applicable Distress Event was so determined to exist and ending on the earlier of the following dates: (x) the date on which
(A) such Distress Event is determined by the Administrative Agent (in its good faith judgment) or the Required Lenders (in their respective good faith judgment) to no longer exist and (B) the applicable Lender shall have delivered to the
Borrower and the Administrative Agent a written reaffirmation of its intention to honor its obligations hereunder with respect to its Commitment; and (y) such date as the Borrower and the Administrative Agent mutually agree, in their sole
discretion, to waive the application of this Section 10.15 with respect to such Distress Event of such Defaulting Lender. 
  

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 “Defaulted Loan” has the meaning specified in the
definition of “Defaulting Lender” below. 
 “Defaulted Payment” has the meaning
specified in the definition of “Defaulting Lender” below. 
 “Defaulting
Lender” means any Lender that (i) has failed to fund any portion of the Loans required to be funded by it hereunder (each such portion that has not been funded, a “Defaulted Loan”) within three Business Days
of the date required to be funded by it hereunder, (ii) has otherwise failed to pay over to Administrative Agent, the Issuing Bank or any other Lender any other amount required to be paid by it hereunder (each such payment, a
“Defaulted Payment”) within three Business Days of the date when due, unless the subject of a good faith dispute, or (iii) as to which a Distress Event has occurred, in each case for so long as the applicable Default
Period is in effect. 
 “Distress Event” means, with respect to any Person (each, a
“Distressed Person”), (i) a voluntary or involuntary case (or comparable proceeding) has been commenced with respect to such Person under any federal, state or foreign bankruptcy, insolvency or other similar law now or
hereafter in effect, (ii) a custodian, conservator, receiver or similar official has been appointed for such Person or for any substantial part of such Person’s assets, (iii) after the date hereof, such Person has consummated or
entered into a commitment to consummate a forced (in the good faith judgment of the Administrative Agent) liquidation, merger, sale of assets or other transaction resulting, in the good faith judgment of the Administrative Agent, in a change of
ownership or operating control of such Person supported in whole or in part by guaranties, assumption of liabilities or other comparable credit support of (including without limitation the nationalization or assumption of ownership or operating
control by) any Governmental Authority and the Administrative Agent believes (in its good faith judgment) or the Required Lenders believe (in their respective good faith judgment) that such event increases the risk that such Person could default in
performing its obligations hereunder for so long as the Administrative Agent (in its good faith judgment) or the Required Lenders (in their respective good faith judgment) believe such risk to exist, or (iv) such Person has made a general
assignment for the benefit of creditors or is otherwise adjudicated as, or determined by any Governmental Authority having regulatory authority over such Person or its assets to be, insolvent, bankrupt, or deficient in meeting any capital adequacy
or liquidity requirement of any Governmental Authority applicable to such Person. 
 “Distressed
Person” has the meaning specified in the definition of “Distress Event” above. 
 Section 10.16
Treatment of Carrier Enterprise. 
 (a) So long as Carrier Enterprise is not a Subsidiary Loan Party, as a
clarification and not in limitation of the other provisions of Article VII hereof, Sections 7.1 through 7.10, 7.12(a), 7.14, 7.15 and 7.16 shall not limit or restrict the transactions or operations of
Carrier Enterprise other than as a result of any restriction imposed upon the Borrower or any Subsidiary (without including for this purpose Carrier Enterprise) in respect of its transactions with Carrier Enterprise. So long as Carrier Enterprise is
not a Subsidiary Loan Party, as a clarification and not in limitation of Article VIII, no provision of Article VIII shall limit or restrict the transactions or operations of Carrier Enterprise other than as a result of any restriction
imposed upon the Borrower or any Subsidiary (without including for this purpose Carrier Enterprise) in respect of its transactions with Carrier Enterprise. 
  

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 (b) Notwithstanding any provision in this Agreement to the contrary, in the event that
Carrier Enterprise shall become a Subsidiary Loan Party and deliver to the Administrative Agent all of the items required by Section 5.10 hereof, then automatically, and without the need for any additional modification of this Agreement
or any other Loan Document, (i) all references to “Adjusted Consolidated EBIT” and “Adjusted Consolidated EBITDA” shall be deemed to mean “Consolidated EBIT” and “Consolidated EBITDA”, respectively, and
the definitions for “Adjusted Consolidated EBIT” and “Adjusted Consolidated EBITDA” shall be deemed null and void, (ii) the definition of “Consolidated Total Debt” shall be amended to delete the phrase “but
excluding Indebtedness of Carrier Enterprise other than Guaranteed Carrier Debt”, (iii) the definitions for “Guaranteed Carrier Debt”, “JV EBIT Amount” and “JV EBITDA Amount” and all references and
calculations with respect to such terms shall be deemed null and void, (iv) the definition of “Subsidiary Loan Party” shall be deemed to include Carrier Enterprise, (v) all references to “(other than Carrier
Enterprise)”, to “(excluding Carrier Enterprise)”, to “(other than in Carrier Enterprise)”, to “(other than Carrier Enterprise, except as otherwise permitted by this Agreement)” or to “(including Carrier
Enterprise)” shall be deemed null and void, (vi) all exceptions for Carrier Enterprise in Articles IV and V (other than such exceptions that apply to the other Subsidiary Loan Parties) hereof shall be deemed null and void,
(vii) the requirements of Sections 5.1(d) and 5.1(e) hereof shall be deemed null and void, (viii) Sections 7.1 through 7.10, 7.12(a), 7.14, 7.15 and 7.16 and Article VIII shall
be deemed to apply to and to limit and restrict the transactions and operations of Carrier Enterprise to the same extent that such sections apply to, limit and restrict the other Subsidiary Loan Parties, (ix) Section 7.3(a) shall be
amended to delete the phrase “(including Carrier Enterprise, if applicable)”, (x) Section 7.4(a) shall be amended to delete the phrase “(but excluding in all cases, any portion of any of the foregoing by the Borrower
in Carrier Enterprise or by the Borrower to purchase additional interests in Carrier Enterprise, in either case, to the extent such is funded by equity in the Borrower)”, (xi) Section 7.4(a)(x) shall be deleted in its entirety,
(xii) Section 7.4(b) shall be amended to delete the phrase “(excluding Capital Expenditures made by Carrier Enterprise)”, (xiii) Section 7.6 shall be amended to delete “Section 7.6(f)”,
(xiv) Section 7.6(c) shall be amended to delete the phrase “(excluding such sales or other dispositions by Carrier Enterprise)”, (xv) Section 7.7 shall be amended to eliminate the proviso to clause
(a) thereof and to eliminate clause (c) thereof, and (xvi) the pledge of membership interests in Carrier Enterprise pursuant to the Pledge Agreement shall be deemed to be released and the Pledge Agreement shall be terminated and the
Administrative Agent shall promptly return to the Borrower any and all certificates evidencing a membership interest in Carrier Enterprise, to the extent any such certificates are in the possession or control of the Administrative Agent. 

[Balance of page left intentionally blank] 
  

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 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed
under seal in the case of the Borrower by their respective authorized officers as of the day and year first above written. 
  

			
	WATSCO, INC.
		
	By:	 	 /s/ Ana M. Menendez

	Name:	 	Ana M. Menendez
	Title:	 	Vice President

			
	BANK OF AMERICA, N.A., as Administrative Agent
		
	By:	 	 /s/ Tamisha U. Eason

	Name:	 	Tamisha U. Eason
	Title:	 	Vice President

			
	BANK OF AMERICA, N.A., as Issuing Bank, as Swingline Lender and as a Lender
		
	By:	 	 /s/ Adam Kaplan

	Name:	 	 Adam Kaplan

	Title:	 	 Senior Vice President

 

			
	 Revolving Commitment:
	 	$60,000,000
		
	 Swingline Commitment:
	 	$25,000,000

			
	JPMORGAN CHASE BANK, N.A.
		
	By:	 	 /s/ Robert P. Carswell

	Name:	 	 Robert P. Carswell

	Title:	 	 Vice President

 

			
	 Revolving Commitment:
	 	$45,000,000

			
	WELLS FARGO BANK, NATIONAL ASSOCIATION
		
	By:	 	 /s/ David S. Matter

	Name:	 	 David S. Matter

	Title:	 	 Regional Vice President

 

			
	Revolving Commitment:	 	$40,000,000

			
	SUNTRUST BANK
		
	By:	 	 /s/ Robert Maddox

	Name:	 	 Robert Maddox

	Title:	 	 Vice President

 

			
	 Revolving Commitment:
	 	$40,000,000

			
	MIZUHO CORPORATE BANK (USA)
		
	By:	 	 /s/ Robert Gallagher

	Name:	 	 Robert Gallagher

	Title:	 	 Senior Vice President

 

			
	 Revolving Commitment:
	 	$40,000,000

			
	COMERICA BANK
		
	By:	 	 /s/ Gerald R. Finney, Jr.

	Name:	 	 Gerald R. Finney, Jr.

	Title:	 	 Vice President

 

			
	 Revolving Commitment:
	 	$25,000,000

			
	 THE NORTHERN TRUST COMPANY

		
	By:	 	 /s/ Rick J. Gomez

	Name:	 	 Rick J. Gomez

	Title:	 	 Commercial Banking Officer

 

			
	 Revolving Commitment:
	 	$25,000,000

			
	U.S. BANK NATIONAL ASSOCIATION
		
	By:	 	 /s/ Frances W. Josephic

	Name:	 	 Frances W. Josephic

	Title:	 	 Vice President

 

			
	 Revolving Commitment:
	 	$25,000,000

 SCHEDULE I 

PRICING GRID 
  

							
	 CONSOLIDATED TOTAL

LEVERAGE RATIO
	  	APPLICABLE MARGIN FOR
LIBOR
LOANS/
Letter of Credit Fees	 	APPLICABLE MARGIN
FOR BASE
RATE
LOANS	 	COMMITMENT
FEE

	Greater than or equal to 3.0:1.00	  	1.125%	 	0.125%	 	0.200%
	Greater than or equal to 2.5:1.00 but less than 3.0:1.00	  	1.000%	 	0.000%	 	0.175%
	Greater than or equal to 2.0:1.00 but less than 2.5:1.00	  	0.750%	 	0.000%	 	0.150%
	Greater than or equal to 1.5:1.00 but less than 2.0:1.00	  	0.625%	 	0.000%	 	0.125%
	Greater than or equal to 1.0:1.00 but less than 1.5:1.00	  	0.500%	 	0.000%	 	0.100%
	Greater than or equal to 0.5:1.00 but less than 1.0:1.00	  	0.400%	 	0.000%	 	0.080%
	Less than 0.50:1.00	  	0.375%	 	0.000%	 	0.075%

  

 Schedule I 

 SCHEDULE II 

PERMITTED PRINCIPAL PAYMENT ON PRIVATE PLACEMENT DEBT 

$125,000,000 SECOND AMENDED AND RESTATED PRIVATE SHELF AGREEMENT dated as of December 10, 2004 by and among WATSCO, INC. and THE PRUDENTIAL
INSURANCE COMPANY OF AMERICA and other purchasers party thereto. 
  

 Schedule 2.22 

 SCHEDULE 2.22 

EXISTING LETTERS OF CREDIT 
  

													
	 Issuer
	  	 Beneficiary
	  	Number	  	Inception
Date	  	Expiration
Date	  	Outstanding
Issue Amount	 
	 SunTrust Bank
	  	UBS Cayman Island	  	Standby	  	01/02/03	  	02/02/09	  	$	443,816.00	  
	 SunTrust Bank
	  	Royal Bank of Canada	  	Standby	  	01/01/03	  	01/02/08	  	$	509,226.00	* 
	 SunTrust Bank
	  	Park Central Industrial LLP	  	Standby	  	08/01/02	  	02/28/08	  	$	38,999.98	  
	 SunTrust Bank
	  	UBS Cayman Island	  	Standby	  	07/01/06	  	06/30/08	  	$	 2,895,990.00	  
	 SunTrust Bank
	  	PSBP Industrial, LLC	  	Standby	  	02/20/04	  	02/01/08	  	$	77,612.72	  
	 SunTrust Bank
	  	Prologis	  	Standby	  	08/18/06	  	08/16/07	  	$	100,000.00	  
	 Bank of America, N.A.
	  	Keentech International	  	64495788	  	07/13/07	  	08/20/07	  	$	33,790.09	  
	 Bank of America, N.A.
	  	Keentech International	  	64495786	  	07/13/07	  	08/20/07	  	$	41,587.92	  
	 Bank of America, N.A.
	  	Keentech International	  	64495787	  	07/13/07	  	08/24/07	  	$	44,471.46	  
	 Bank of America, N.A.
	  	Golden Power Manufacturing	  	68019234	  	06/15/07	  	09/21/07	  	$	187,478.95	  
	 Bank of America, N.A.
	  	Keentech International	  		  	07/26/07	  	10/29/07	  	$	40,499.80	  
		  	Total Letters of Credit	  		  		  		  	$	4,413,472.92	  

  

	*	Not to be renewed as of effective date of Revolving Credit Agreement. 

 

 Schedule 2.22 

 [***] Certain information on this page has been omitted and filed separately with the Securities and
Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
 SCHEDULE 4.5(a)

 PENDING LITIGATION 
  

	1.	Robert Cormier, et al. vs 3M Corp, et al 

[***] 
  

	2.	Ronald Sutera v ADC Supply Co. Ann Elder, et al v Cummings Insulation, et al 

[***] 
  

	3.	Ann Elder, et al v. Cummings Insulation, et al 

[***] 
  

	4.	Kronk, Doris, et al vs. Homans Associates, Inc. et al. 

[***] 
  

	5.	Springer, Peter, et al vs. Homans Associates, Inc. et al. 

[***] 
  

 Schedule 4.5(a) 

 [***] Certain information on this page has been omitted and filed separately with the Securities and
Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

 

	6.	Jane Sneider, et al v. ADC Supply Corp., et al 

[***] 
  

	7.	Lowell Jolley and Crystal Jolley vs. CRG Holdings LLC and Atlantic Service & Supply, LLC. 

[***] 
  

	8.	Ron Carney and Marilyn Carney v Tanglewood Investors Limited Partnership v Atlantic Service and Supply, LLC. 

[***] 
  

	9.	The Waldinger Corporation v. Zero Zone, Inc.; Zero Zone Refrigeration, LLC; Baker Distributing Company LLC; and Minus 40 Sales, Inc. 

[***] 
  

	10.	Farmer, Inc. d/b/a Express Personnel Services v. East Coast Metal, LLC 

[***] 
  

	11.	Gregory S. Keatley and Karen K. Keatley vs. Goodman Holding Company and East Coast Metal Distributors, LLC. 

[***] 
  

	12.	Dunhill Staffing Systems, Inc. v. Dunhill Franchisee Trust and Willie Miska, Case No. 13 181 Y 01674 04 

 

 Schedule 4.5(a) 

 [***] Certain information on this page has been omitted and filed separately with the Securities and
Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

[***] 
 The Borrower and its
subsidiaries vigorously defend all matters in which they are named defendant and, for insurable losses, maintains significant levels of insurance to protect against adverse judgments, claims or assessments that may affect it. In management’s
opinion, although the outcome of any legal proceeding or the adequacy of existing insurance coverage cannot be predicted with certainty, items 1. through 12. above and including other litigation, which is covered by insurance policies, the ultimate
liability associated with such litigation will not materially affect the Borrower’s financial condition or results of operations. 
 None
of the above-referenced matters are class action lawsuits. 
  

 Schedule 4.5(a) 

 SCHEDULE 4.5(b) 

ENVIRONMENTAL MATTERS 

The Borrower performs certain monitoring of groundwater contamination at its facility located at 666 E. H. Crump Boulevard, Memphis, Tennessee. All
testing and monitoring is being done pursuant to and in compliance with applicable laws and regulations. 
  

 Schedule 4.5(b) 

 SCHEDULE 4.18 

PRINCIPAL PLACES OF BUSINESS AND SUBSIDIARIES 

 

					
	 Name of Entity and Principal Places of Business
	  	 Incorporated
	  	 100% Ownership

	 Watsco, Inc.
 2665 S. Bayshore
Drive, Suite 901
 Coconut Grove, Florida 33133
	  	Florida	  	
			
	 Air Systems Distributors LLC

2151 W. Hillsboro Blvd., Suite 400
 Deerfield
Beach, Florida 33442
	  	Delaware	  	Watsco Holdings, Inc.
			
	 Tradewinds Flight Services LLC

2665 South Bayshore Drive, Suite 901
 Coconut
Grove, Florida 33133
	  	Delaware	  	Watsco Holdings, Inc.
			
	 Atlantic Service & Supply LLC

6525 Baker Blvd.
 Fort Worth, Texas
76118
	  	Delaware	  	Watsco Holdings, Inc.
			
	 Baker Distributing Company LLC

14610 Breakers Drive
 Jacksonville, Florida 32258

	  	Delaware	  	Watsco Holdings, Inc.
			
	 Comfort Supply, Inc.
 407
Garden Oaks
 Houston, Texas 77018
	  	Delaware	  	Watsco, Inc.
			
	 Comfort Products Distributing LLC

13202 “I” Street
 Omaha, Nebraska 68137

	  	Delaware	  	Watsco Holdings, Inc.
			
	 Cool Holdings LLC
 2665 South
Bayshore Drive, Suite 901
 Coconut Grove, Florida 33133
	  	Delaware	  	Watsco, Inc.
			
	 East Coast Metal Distributors LLC

1313 South Briggs Avenue
 Durham, North Carolina
27703
	  	Delaware	  	Watsco Holdings, Inc.
			
	 Gemaire Caribe, Inc.
 2151 W.
Hillsboro Blvd., Suite 400
 Deerfield Beach, Florida 33442
	  	Puerto Rico	  	Gemaire Distributors LLC
			
	 Gemaire Distributors LLC
 2151
W. Hillsboro Blvd., Suite 400
 Deerfield Beach, Florida 33442
	  	Delaware	  	Watsco Holdings, Inc.

  

 Schedule 4.18 

					
			
	 HBA Distributors LLC
 2151 W.
Hillsboro Blvd., Suite 400
 Deerfield Beach, Florida 33442
	  	Delaware	  	Watsco Holdings, Inc.
			
	 Heat Incorporated LLC
 9
Flagstone Drive
 Hudson, New Hamsphire 03051
	  	New Hampshire	  	Watsco Holdings, Inc.
			
	 Heating & Cooling Supply LLC

3980 Home Avenue
 San Diego, California 92105

	  	California	  	Watsco, Inc.
			
	 Homans Associates LLC
 250
Ballardvale Street
 Wilmington, Massachusetts 01887
	  	Delaware	  	Watsco Holdings, Inc.
			
	 The Florida Ad Company
 2151 W.
Hillsboro Blvd, Suite 400
 Deerfield Beach, Florida 33442
	  	Florida	  	Gemaire Distributors LLC
			
	 Three States Supply Company LLC

666 E. H. Crump Blvd.
 Memphis, Tennessee 38126

	  	Tennessee	  	Watsco Holdings, Inc.
			
	 Tradewinds Distributing Company LLC

14610 Breakers Drive
 Jacksonville, Florida 32258

	  	Delaware	  	Watsco Holdings, Inc.
			
	 Watsco Holdings, Inc.
 2665
South Bayshore Drive, Suite 901
 Coconut Grove, Florida 33133
	  	Delaware	  	Watsco, Inc.
			
	 Watsco Investments LLC
 2665
South Bayshore Drive, Suite 901
 Coconut Grove, Florida 33133
	  	Delaware	  	Watsco, Inc.
			
	 NSI Supply, Inc.
 3980 Home
Avenue
 San Diego, California 92105
	  	Nevada	  	Watsco, Inc.
			
	 Coconut Grove Holdings, Inc.

701 Brazos Street, Suite 1050
 Austin, TX 78701

	  	Texas	  	Watsco Holdings, Inc.

  

 Schedule 4.18 

 SCHEDULE 7.1 

OUTSTANDING INDEBTEDNESS 
  

			
	 Description
	  	Outstanding Amount
	 Other
	  	
	Watsco, Inc. and subsidiaries in the ordinary course of business enter into various capital leases, equipment and vehicle notes, with principal amounts outstanding payable at
varying maturities	  	$160,000

  

 Schedule 7.1 

 SCHEDULE 7.2 

EXISTING LIENS 
  

	•	 	 Liens and security interests in favor of suppliers, lessors, landlords or lenders with respect to certain items of real property or equipment,
including forklifts, office equipment, telephone systems, computer software and hardware equipment, machinery and vehicles 

  

	•	 	 Consignment arrangements with Nordyne Inc. relating to heating and cooling equipment sold by Borrower and certain Subsidiaries

  

	•	 	 Consignment arrangements with Goodman Manufacturing Corporation relating to heating and cooling equipment sold by Borrower and certain Subsidiaries

  

	•	 	 Aircraft Lease 

  

	•	 	 Blanket lien and security interest in NationsBank export receivables agreement between NationsBanc Commercial Corporation and Gemaire Distributors,
Inc. as permitted under Section 7.6(e) assigned to GMAC Commercial Credit LLC. There are no amounts currently outstanding under this agreement. 

 

 Schedule 7.2 

 [***] Certain information on this page has been omitted and filed separately with the Securities and
Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
 SCHEDULE 7.4 

EXISTING INVESTMENTS 
  

							
	 Description
	  	Physical
Location	  	Bank
Acct #	  	# shares
	 [***]
	  	E*Trade	  	[***]	  	25,200
	 [***]
	  	E*Trade	  	[***]	  	20,000

  

 Schedule 7.4 

 SCHEDULE 7.8 

RESTRICTIVE AGREEMENTS 

Aircraft Lease (S/N) dated as of September 14, 2004 between Suntrust Leasing Corporation as Lessor and Watsco Holdings, Inc. as Lessee 

 

 Schedule 7.8 

 EXHIBIT A 

REVOLVING CREDIT NOTE 
  

			
	[$                        ]	  	[Date]

 FOR VALUE RECEIVED,
the undersigned, Watsco, Inc., a Florida corporation (the “Borrower”), hereby promises to pay to [name of Lender] (the “Lender”) or its registered assigns, at the office of Bank of America,
N.A., as administrative agent (the “Administrative Agent”), on the Commitment Termination Date (as defined in the Revolving Credit Agreement dated as of August 3, 2007, as the same may be amended, supplemented or
otherwise modified from time to time, the “Credit Agreement”), among the Borrower, the lenders from time to time party thereto and Bank of America, N.A., as administrative agent for the lenders, the lesser of the principal
sum of amount of such Lender’s Revolving Commitment and the aggregate unpaid principal amount of all Revolving Loans made by the Lender to the Borrower pursuant to the Credit Agreement, in lawful money of the United States of America in
immediately available funds, and to pay interest from the date hereof on the principal amount thereof from time to time outstanding, in like funds, at said office, at the rate or rates per annum and payable on such dates as provided in the Credit
Agreement. In addition, should legal action or an attorney-at-law be utilized to collect any amount due hereunder, the Borrower further promises to pay all costs of collection, including the reasonable attorneys’ fees of the Lender. 

The Borrower promises to pay interest, on demand, on any overdue principal and, to the extent permitted by law, overdue interest from
their due dates at a rate or rates provided in the Credit Agreement. 
 All borrowings evidenced by this Revolving Credit Note
and all payments and prepayments of the principal hereof and the date thereof shall be endorsed by the holder hereof on the schedule attached hereto and made a part hereof or on a continuation thereof which shall be attached hereto and made a part
hereof, or otherwise recorded by such holder in its internal records; provided, that the failure of the holder hereof to make such a notation or any error in such notation shall not affect the obligations of the Borrower to make the payments
of principal and interest in accordance with the terms of this Revolving Credit Note and the Credit Agreement. 
 This Revolving
Credit Note is issued in connection with, and is entitled to the benefits of, the Credit Agreement which, among other things, contains provisions for the acceleration of the maturity hereof upon the happening of certain events, for prepayment of the
principal hereof prior to the maturity hereof and for the amendment or waiver of certain provisions of the Credit Agreement, all upon the terms and conditions therein specified. THIS REVOLVING CREDIT NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND
GOVERNED BY THE LAWS OF THE STATE OF NORTH CAROLINA AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA. 
  

			
	WATSCO, INC.
		
	 By:
	 	  

	 Name:
	 	
	 Title:
	 	

  

 Exhibit A-1 

 LOANS AND PAYMENTS 

 

									
	 Date
	  	Amount and Type of Loan	  	Payments of Principal	  	Unpaid Principal Balance of
Note
	  	Name of Person Making
Notation
	  
	  	  
	  	  
	  	  
	  	  

	  
	  	  
	  	  
	  	  
	  	  

  

 Exhibit A-2 

 EXHIBIT B 

SWINGLINE NOTE 
  

			
	$25,000,000	  	[Date]

 FOR VALUE RECEIVED,
the undersigned, Watsco, Inc., a Florida corporation (the “Borrower”), hereby promises to pay to BANK OF AMERICA, N.A. (the “Swingline Lender”) or its registered assigns, at the office of Bank
of America, N.A. (“Bank of America”), on the Swingline Termination Date (as defined in the Revolving Credit Agreement dated as of August 3, 2007, as the same may be amended, supplemented or otherwise modified from time
to time, the “Credit Agreement”), among the Borrower, the lenders from time to time party thereto and Bank of America, N.A., as administrative agent for the lenders, the lesser of the principal sum of Twenty-five Million
Dollars ($25,000,000) and the aggregate unpaid principal amount of all Swingline Loans made by the Swingline Lender to the Borrower pursuant to the Credit Agreement, in lawful money of the United States of America in immediately available funds, and
to pay interest from the date hereof on the principal amount thereof from time to time outstanding, in like funds, at said office, at the rate or rates per annum and payable on such dates as provided in the Credit Agreement. In addition, should
legal action or an attorney-at-law be utilized to collect any amount due hereunder, the Borrower further promises to pay all costs of collection, including the reasonable attorneys’ fees of the Swingline Lender. 

The Borrower promises to pay interest, on demand, on any overdue principal and, to the extent permitted by law, overdue interest from
their due dates at a rate or rates provided in the Credit Agreement. 
 All borrowings evidenced by this Swingline Note and all
payments and prepayments of the principal hereof and the date thereof shall be endorsed by the holder hereof on the schedule attached hereto and made a part hereof or on a continuation thereof which shall be attached hereto and made a part hereof,
or otherwise recorded by such holder in its internal records; provided, that the failure of the holder hereof to make such a notation or any error in such notation shall not affect the obligations of the Borrower to make the payments of
principal and interest in accordance with the terms of this Swingline Note and the Credit Agreement. 
 This Swingline Note is
issued in connection with, and is entitled to the benefits of, the Credit Agreement which, among other things, contains provisions for the acceleration of the maturity hereof upon the happening of certain events, for optional and mandatory
prepayment of the principal hereof prior to the maturity hereof and for the amendment or waiver of certain provisions of the Credit Agreement, all upon the terms and conditions therein specified. THIS SWINGLINE NOTE SHALL BE CONSTRUED IN ACCORDANCE
WITH AND GOVERNED BY THE LAWS OF THE STATE OF NORTH CAROLINA AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA. 
  

			
	WATSCO, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	

  

 Exhibit B-1 

 LOANS AND PAYMENTS 

 

									
	 Date
	  	Amount and Type of Loan	  	Payments of Principal	  	Unpaid Principal Balance of
Note
	  	Name of Person Making
Notation
	  
	  	  
	  	  
	  	  
	  	  

	  
	  	  
	  	  
	  	  
	  	  

  

 Exhibit B-2 

 EXHIBIT C 

[FORM OF] 

ASSIGNMENT AND ASSUMPTION 

This Assignment and Assumption (this “Assignment and Assumption”) is dated as of the Effective Date set forth
below and is entered into by and between [the] [each] Assignor identified in item 1 below ([the] [each, an] “Assignor”) and [the] [each] Assignee identified in item 2 below ([the] [each, an]
“Assignee”). [It is understood and agreed that the rights and obligations of [the Assignors] [the Assignees] hereunder are several and not joint.] Capitalized terms used but not defined herein shall have the meanings
given to them in the Credit Agreement identified below (the “Credit Agreement”), receipt of a copy of which is hereby acknowledged by the Assignee. The Standard Terms and Conditions set forth in Annex 1 attached hereto are
hereby agreed to and incorporated herein by reference and made a part of this Assignment and Assumption as if set forth herein in full. 

For an agreed consideration, [the] [each] Assignor hereby irrevocably sells and assigns to [the Assignee] [the respective
Assignees], and [the] [each] Assignee hereby irrevocably purchases and assumes from [the Assignor] [the respective Assignors], subject to and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the
Effective Date inserted by the Administrative Agent as contemplated below (i) all of [the Assignor’s] [the respective Assignors’] rights and obligations in [its capacity as a Lender] [their respective capacities as
Lenders] under the Credit Agreement and any other documents or instruments delivered pursuant thereto to the extent related to the amount and percentage interest identified below of all of such outstanding rights and obligations of [the
Assignor] [the respective Assignors] under the respective facilities identified below (including, without limitation, the Letters of Credit and the Swingline Loans included in such facilities) and (ii) to the extent permitted to be assigned
under applicable law, all claims, suits, causes of action and any other right of [the Assignor (in its capacity as a Lender)] [the respective Assignors (in their respective capacities as Lenders)] against any Person, whether known or
unknown, arising under or in connection with the Credit Agreement, any other documents or instruments delivered pursuant thereto or the loan transactions governed thereby or in any way based on or related to any of the foregoing, including, but not
limited to, contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity related to the rights and obligations sold and assigned by [the] [any] Assignor to [the] [any] Assignee pursuant to
clause (i) above (the rights and obligations sold and assigned pursuant to clauses (i) and (ii) above being referred to herein collectively as [the] [an] “Assigned Interest”). Each such sale and
assignment is without recourse to [the] [any] Assignor and, except as expressly provided in this Assignment and Assumption, without representation or warranty by [the] [any] Assignor. 

 

	1.	Assignor[s]:
                                         
                    

  

	2.	Assignee[s]:
                                         
                    [for each Assignee, indicate [Affiliate] [Approved Fund] of [identify Lender]] 

 

	3.	Borrower: Watsco, Inc. 

  

	4.	Administrative Agent: Bank of America, N.A., as the administrative agent under the Credit Agreement 

 

 C-1 

	5.	Credit Agreement: Credit Agreement, dated as of August 3, 2007, among Watsco, Inc., the Lenders from time to time party thereto, and Bank of America, N.A.,
as Administrative Agent, Issuing Bank and Swingline Lender 

  

	6.	Assigned Interest: 

  

															
	 Assignor[s]
	  	Assignee[s]	  	Facility Assigned	  	Aggregate Amount
of Commitment/
Loans for all
Lenders	  	Amount
of
Commitment/
Loans
Assigned	  	Percentage
Assigned of
Commitment/
Loans	  	CUSIP
Number
	  
	  	  
	  	  
	  	$	                        	  	$	                    	  	                    %	  	  

	  
	  	  
	  	  
	  	$	                        	  	$	                    	  	                    %	  	  

	  
	  	  
	  	  
	  	$	                        	  	$	                    	  	                    %	  	  

  

	[7.	Trade Date:
                                         
       ] 

 Effective Date:
                                        ,
20     [TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.] 

The terms set forth in this Assignment and Assumption are hereby agreed to: 

 

			
	ASSIGNOR
	[NAME OF ASSIGNOR]
		
	By:	 	  

	Title:	 	
	
	ASSIGNEE
	[NAME OF ASSIGNEE]
		
	By:	 	  

	Title:	 	

  

 C-2 

 [Consented to and] Accepted: 

 

			
	 BANK OF AMERICA, N.A., as
Administrative Agent

		
	By:	 	  

	Title:	 	

 [Consented to:] 
  

			
	WATSCO, INC.
		
	By:	 	  

	Title:	 	

  

 C-3 

 ANNEX 1 TO ASSIGNMENT AND ASSUMPTION 

STANDARD TERMS AND CONDITIONS FOR 

ASSIGNMENT AND ASSUMPTION 

1. Representations and Warranties. 

1.1. Assignor. [The] [Each] Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of
[the] [the relevant] Assigned Interest, (ii) [the] [such] Assigned Interest is free and clear of any lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken all action necessary, to
execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any statements, warranties or representations made in or in connection with
the Credit Agreement or any other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the financial condition of the Borrower,
any of its Subsidiaries or Affiliates or any other Person obligated in respect of any Loan Document or (iv) the performance or observance by the Borrower, any of its Subsidiaries or Affiliates or any other Person of any of their respective
obligations under any Loan Document. 
 1.2. Assignee. [The] [Each] Assignee (a) represents and warrants that
(i) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby and to become a Lender under the Credit Agreement,
(ii) it meets all the requirements to be an assignee under Section 10.4(b)(iii), (v) and (vi) of the Credit Agreement (subject to receipt of such consents as may be required under the Credit Agreement),
(iii) from and after the Effective Date, it shall be bound by the provisions of the Credit Agreement as a Lender thereunder and, to the extent of [the] [the relevant] Assigned Interest, shall have the obligations of a Lender thereunder,
(iv) it is sophisticated with respect to decisions to acquire assets of the type presented by [the] [such] Assigned Interest and either it, or the Person exercising discretion in making its decision to acquire [the] [such]
Assigned Interest, is experienced in acquiring assets of such type, (v) it has received a copy of the Credit Agreement and has received or has been accorded the opportunity to receive copies of the most recent financial statements delivered
pursuant to Section 5.1 thereof, as applicable, and such other documents and information as it deems appropriate to make its own credit analysis and decision to enter into this Assignment and Assumption and to purchase [the]
[such] Assigned Interest, (vi) it has independently and without reliance upon the Administrative Agent or any other Lender and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision
to enter into this Assignment and Assumption and to purchase [the] [such] Assigned Interest, and (vii) if it is a Foreign Lender, attached hereto is any documentation required to be delivered by it pursuant to the terms of the Credit
Agreement, duly completed and executed by [the] [such] Assignee; and (b) agrees that (i) it will, independently and without reliance upon the Administrative Agent, [the] [any] Assignor or any other Lender, 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 the Loan Documents, and (ii) it will perform in accordance with their terms all of the
obligations which by the terms of the Loan Documents are required to be performed by it as a Lender. 
 2. Payments. From
and after the Effective Date, the Administrative Agent shall make all payments in respect of [the] [each] Assigned Interest (including payments of principal, interest, fees and other amounts) to [the] [the relevant] Assignor for
amounts which have accrued to but excluding the Effective Date and to [the] [relevant] Assignee for amounts which have accrued from and after the Effective Date. 
  

 C-4 

 3. General Provisions. This Assignment and Assumption shall be binding upon, and
inure to the benefit of, the parties hereto and their respective successors and assigns. This Assignment and Assumption may be executed in any number of counterparts, which together shall constitute one instrument. Delivery of an executed
counterpart of a signature page of this Assignment and Assumption by telecopy shall be effective as delivery of a manually executed counterpart of this Assignment and Assumption. This Assignment and Assumption shall be governed by, and construed in
accordance with, the law of the State of North Carolina. 
  

 C-5 

 EXHIBIT D 

[FORM OF] 

SUBSIDIARY GUARANTY AGREEMENT 

SUBSIDIARY GUARANTEE AGREEMENT dated as of August 3, 2007, among each of the Subsidiaries listed on Schedule I hereto (each
such subsidiary individually, a “Guarantor” and collectively, the “Guarantors”) of WATSCO, INC., a Florida corporation (the “Borrower”), and BANK OF AMERICA, N.A., as
administrative agent (the “Administrative Agent”) for the Lenders (as defined in the Credit Agreement referred to below). 

Reference is made to the Revolving Credit Agreement dated as of August 3, 2007 (as amended, supplemented or otherwise modified from
time to time, the “Credit Agreement”), among the Borrower, the lenders from time to time party thereto (the “Lenders”) and Bank of America, N.A., as Administrative Agent for the Lenders, swingline
lender and issuing bank (in such capacity, the “Issuing Bank”). Capitalized terms used herein and not defined herein shall have the meanings assigned to such terms in the Credit Agreement. 

The Lenders have agreed to make Loans to the Borrower, and the Issuing Bank has agreed to issue Letters of Credit for the account of the
Borrower, pursuant to, and upon the terms and subject to the conditions specified in, the Credit Agreement. Each of the Guarantors is a direct or indirect Subsidiary of the Borrower and acknowledges that it will derive substantial benefit from the
making of the Loans by the Lenders, and the issuance of the Letters of Credit by the Issuing Bank. The obligations of the Lenders to make Loans and of the Issuing Bank to issue Letters of Credit are conditioned on, among other things, the execution
and delivery by the Guarantors of a Subsidiary Guarantee Agreement in the form hereof. As consideration therefor and in order to induce the Lenders to make Loans and the Issuing Bank to issue Letters of Credit, the Guarantors are willing to execute
this Subsidiary Guarantee Agreement. 
 Accordingly, the parties hereto agree as follows: 

SECTION 1. Guarantee. Each Guarantor unconditionally guarantees, jointly with the other Guarantors and severally, as a primary
obligor and not merely as a surety, the due and punctual payment and performance of all Obligations of the Borrower, monetary or otherwise, under the Loan Documents. Each Guarantor further agrees that the Obligations may be extended or renewed, in
whole or in part, without notice to or further assent from it, and that it will remain bound upon its guarantee notwithstanding any extension or renewal of any Obligation. 

SECTION 2. Obligations Not Waived. To the fullest extent permitted by applicable law, each Guarantor waives presentment to, demand
of payment from and protest to the Borrower of any of the Obligations, and also waives notice of acceptance of its guarantee and notice of protest for nonpayment. To the fullest extent permitted by applicable law, the obligations of each Guarantor
hereunder shall not be affected by (a) the failure of the Administrative Agent or any Lender to assert any claim or demand or to enforce or exercise any right or remedy against the Borrower or any other Guarantor under the provisions of the
Credit Agreement, any other Loan Document or otherwise, (b) any rescission, waiver, amendment or modification of, or any release from any of the terms or provisions of, this Agreement, any other Loan Document, any Guarantee or any other
agreement, including with respect to any other Guarantor under this Agreement, or (c) the failure to perfect any security interest in, or the release of, any of the security held by or on behalf of the Administrative Agent or any Lender.

  

 Exhibit D-1 

 SECTION 3. Security. Each of the Guarantors authorizes the Administrative Agent and
each of the Lenders to (a) take and hold such security, if any, for payment of this Guarantee and the Obligations as may be required by the Credit Agreement, and exchange, enforce, waive and release any such security, (b) apply such
security and direct the order or manner of sale thereof as they in their sole discretion may determine and (c) release or substitute any one or more endorsees, other guarantors or other obligors. 

SECTION 4. Guarantee of Payment. Each Guarantor further agrees that its guarantee constitutes a guarantee of payment when due and
not of collection, and waives any right to require that any resort be had by the Administrative Agent or any Lender to any of the security held for payment of the Obligations or to any balance of any deposit account or credit on the books of the
Administrative Agent or any Lender in favor of the Borrower or any other person. 
 SECTION 5. No Discharge or Diminishment
of Guarantee. The obligations of each Guarantor hereunder shall not be subject to any reduction, limitation, impairment or termination for any reason (other than the indefeasible payment in full in cash of the Obligations), including any claim
of waiver, release, surrender, alteration or compromise of any of the Obligations, and shall not be subject to any defense or setoff, counterclaim, recoupment or termination whatsoever by reason of the invalidity, illegality or unenforceability of
the Obligations or otherwise. Without limiting the generality of the foregoing, the obligations of each Guarantor hereunder shall not be discharged or impaired or otherwise affected by the failure of the Administrative Agent or any Lender to assert
any claim or demand or to enforce any remedy under the Credit Agreement, any other Loan Document or any other agreement, by any waiver or modification of any provision of any thereof, by any default, failure or delay, willful or otherwise, in the
performance of the Obligations, or by any other act or omission that may or might in any manner or to the extent vary the risk of any Guarantor or that would otherwise operate as a discharge of each Guarantor as a matter of law or equity (other than
the indefeasible payment in full in cash of all the Obligations). 
 SECTION 6. Defenses of Borrower Waived. To the
fullest extent permitted by applicable law, each Guarantor waives any defense based on or arising out of any defense of the Borrower or the unenforceability of the Obligations or any part thereof from any cause, or the cessation from any cause of
the liability of the Borrower, other than the final and indefeasible payment in full in cash of the Obligations. The Administrative Agent and the Lenders may, at their election, foreclose on any security held by one or more of them by one or more
judicial or nonjudicial sales, accept an assignment of any such security in lieu of foreclosure, compromise or adjust any part of the Obligations, make any other accommodation with the Borrower or any other guarantor, without affecting or impairing
in any way the liability of any Guarantor hereunder except to the extent the Obligations have been fully, finally and indefeasibly paid in cash. Pursuant to applicable law, each Guarantor waives any defense arising out of any such election even
though such election operates, pursuant to applicable law, to impair or to extinguish any right of reimbursement or subrogation or other right or remedy of such Guarantor against the Borrower or any other Guarantor or guarantor, as the case may be,
or any security. 
 SECTION 7. Agreement to Pay; Subordination. In furtherance of the foregoing and not in limitation of
any other right that the Administrative Agent or any Lender has at law or in equity against any Guarantor by virtue hereof, upon the failure of the Borrower or any other Loan Party to pay any Obligation when and as the same shall become due, whether
at maturity, by acceleration, after notice of prepayment or otherwise, each Guarantor hereby promises to and will forthwith pay, or cause to be paid, to the Administrative Agent for the benefit of the Lenders in cash the amount of such unpaid
Obligations. Upon payment by any Guarantor of any sums to the Administrative Agent, all rights of such Guarantor against the Borrower arising as a result thereof by way of right of subrogation, contribution, reimbursement, indemnity or otherwise
shall in all respects be subordinate and junior in right of payment to the prior indefeasible payment in full in cash of all the Obligations. In addition, any indebtedness of the 

 

 Exhibit D-2 

 
Borrower now or hereafter held by any Guarantor is hereby subordinated in right of payment to the prior payment in full in cash of the Obligations. If any amount shall erroneously be paid to any
Guarantor after the occurrence and during the continuance of a Default on account of (i) such subrogation, contribution, reimbursement, indemnity or similar right or (ii) any such indebtedness of the Borrower, such amount shall be held in
trust for the benefit of the Administrative Agent and the Lenders and shall forthwith be paid to the Administrative Agent to be credited against the payment of the Obligations, whether matured or unmatured, in accordance with the terms of the Loan
Documents. 
 SECTION 8. Information. Each Guarantor assumes all responsibility for being and keeping itself informed of
the Borrower’s financial condition and assets, and of all other circumstances bearing upon the risk of nonpayment of the Obligations and the nature, scope and extent of the risks that such Guarantor assumes and incurs hereunder, and agrees that
none of the Administrative Agent or the Lenders will have any duty to advise any of the Guarantors of information known to it or any of them regarding such circumstances or risks. 

SECTION 9. Representations and Warranties. Each Guarantor represents and warrants as to itself that all representations and
warranties relating to it (as a Subsidiary of the Borrower) contained in the Credit Agreement are true and correct. 
 SECTION
10. Termination. The guarantees made hereunder (a) shall terminate when all the Obligations have been paid in full in cash and the Lenders have no further commitment to lend under the Credit Agreement, the LC Exposure has been reduced to
zero and the Issuing Bank has no further obligation to issue Letters of Credit under the Credit Agreement and (b) shall continue to be effective or be reinstated, as the case may be, if at any time payment, or any part thereof, of any
Obligation is rescinded or must otherwise be restored by any Lender or any Guarantor upon the bankruptcy or reorganization of the Borrower, any Guarantor or otherwise. In connection with the foregoing, the Administrative Agent shall execute and
deliver to such Guarantor or Guarantor’s designee, at such Guarantor’s expense, any documents or instruments which such Guarantor shall reasonably request from time to time to evidence such termination and release. 

SECTION 11. Binding Effect; Several Agreement; Assignments. Whenever in this Agreement any of the parties hereto is referred to,
such reference shall be deemed to include the successors and assigns of such party; and all covenants, promises and agreements by or on behalf of the Guarantors that are contained in this Agreement shall bind and inure to the benefit of each party
hereto and their respective successors and assigns. This Agreement shall become effective as to any Guarantor when a counterpart hereof executed on behalf of such Guarantor shall have been delivered to the Administrative Agent, and a counterpart
hereof shall have been executed on behalf of the Administrative Agent, and thereafter shall be binding upon such Guarantor and the Administrative Agent and their respective successors and assigns, and shall inure to the benefit of such Guarantor,
the Administrative Agent and the Lenders, and their respective successors and assigns, except that no Guarantor shall have the right to assign its rights or obligations hereunder or any interest herein (and any such attempted assignment shall be
void). If all of the capital stock of a Guarantor is sold, transferred or otherwise disposed of pursuant to a transaction permitted by the Credit Agreement, such Guarantor shall be released from its obligations under this Agreement without further
action. This Agreement shall be construed as a separate agreement with respect to each Guarantor and may be amended, modified, supplemented, waived or released with respect to any Guarantor without the approval of any other Guarantor and without
affecting the obligations of any other Guarantor hereunder. 
  

 Exhibit D-3 

 SECTION 12. Waivers; Amendment. 

(a) No failure or delay of the Administrative Agent of any in exercising any power or right hereunder shall operate as a waiver thereof,
nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power. The
rights and of the Administrative Agent hereunder and of the Lenders under the other Loan Documents are cumulative and are not exclusive of any rights or remedies that they would otherwise have. No waiver of any provision of this Agreement or consent
to any departure by any Guarantor therefrom shall in any event be effective unless the same shall be permitted by paragraph (b) below, and then such waiver and consent shall be effective only in the specific instance and for the purpose for
which given. No notice or demand on any Guarantor in any case shall entitle such Guarantor to any other or further notice in similar or other circumstances. 

(b) Neither this Agreement nor any provision hereof may be waived, amended or modified except pursuant to a written agreement entered
into between the Guarantors with respect to which such waiver, amendment or modification relates and the Administrative Agent, with the prior written consent of the Required Lenders (except as otherwise provided in the Credit Agreement). 

SECTION 13. Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NORTH
CAROLINA. 
 SECTION 14. Notices. All communications and notices hereunder shall be in writing and given as provided in
Section 10.1 of the Credit Agreement. All communications and notices hereunder to each Guarantor shall be given to it at its address set forth on Schedule I attached hereto. 

SECTION 15. Survival of Agreement; Severability. 

(a) All covenants, agreements representations and warranties made by the Guarantors herein and in the certificates or other instruments
prepared or delivered in connection with or pursuant to this Agreement or the other Loan Document shall be considered to have been relied upon by the Administrative Agent and the Lenders and shall survive the making by the Lenders of the Loans and
the issuance of the Letters of Credit by the Issuing Bank regardless of any investigation made by any of them or on their behalf, and shall continue in full force and effect as long as the principal of or any accrued interest on any Loan or any
other fee or amount payable under this Agreement or any other Loan Document is outstanding and unpaid or the LC Exposure does not equal zero and as long as the Commitments have not been terminated. 

(b) In the event one or more of the provisions contained in this Agreement or in any other Loan Document should be held invalid, illegal
or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein and therein shall not in any way be affected or impaired thereby (it being understood that the invalidity of a particular
provision in a particular jurisdiction shall not in and of itself affect the validity of such provision in any other jurisdiction). The parties shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions
with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions. 

SECTION 16. Counterparts. This Agreement may be executed in counterparts, each of which shall constitute an original, but all of
which when taken together shall constitute a single contract (subject to Section 11), and shall become effective as provided in Section 11. Delivery of an executed signature page to this Agreement by facsimile transmission
shall be as effective as delivery of a manually executed counterpart of this Agreement. 
  

 Exhibit D-4 

 SECTION 17. Rules of Interpretation. The rules of interpretation specified in
Section 1.3 of the Credit Agreement shall be applicable to this Agreement. 
 SECTION 18. Jurisdiction; Consent
to Service of Process. 
 (a) Each Guarantor hereby irrevocably and unconditionally submits, for itself and its property, to
the nonexclusive jurisdiction of any North Carolina State court or Federal court of the United States of America sitting in North Carolina, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this
Agreement or the other Loan Documents, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and
determined in such North Carolina State court or, to the extent permitted by law, in such Federal court. Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Agreement shall affect any right that the Administrative Agent, the Issuing Bank or any Lender may otherwise have to bring any action or proceeding
relating to this Agreement or the other Loan Documents against any Guarantor or its properties in the courts of any jurisdiction. 

(b) Each Guarantor hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any
objection that it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement or the other Loan Documents in any North Carolina State or Federal court. Each of the parties hereto
hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court. 

(c) Each party to this Agreement irrevocably consents to service of process in the manner provided for notices in Section 14.
Nothing in this Agreement will affect the right of any party to this Agreement to serve process in any other manner permitted by law. 

SECTION 19. Waiver of Jury Trial. EACH PARTY HERETO HERBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT
MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS. EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF
ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO
THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 19. 

SECTION 20. Additional Guarantors. Pursuant to Section 5.10 of the Credit Agreement, each Subsidiary Loan Party that
was not in existence on the date of the Credit Agreement is required to enter into this Agreement as a Guarantor upon becoming Subsidiary Loan Party. Upon execution and delivery after the date hereof by the Administrative Agent and such Subsidiary
of an instrument in the form of Annex 1, such Subsidiary shall become a Guarantor hereunder with the same force and effect as if originally named as a Guarantor herein. The execution and delivery of any instrument adding an additional
Guarantor as a party to this Agreement shall not require the consent of any other Guarantor hereunder. The rights and obligations of each Guarantor hereunder shall remain in full force and effect notwithstanding the addition of any new Guarantor as
a party to this Agreement. 
  

 Exhibit D-5 

 SECTION 21. Right of Setoff. If an Event of Default shall have occurred and be
continuing, each Lender and the Issuing Bank are hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any
time held and other Indebtedness at any time owing by such Lender or the Issuing Bank to or for the credit or the account of any Guarantor against any or all the obligations of such Guarantor now or hereafter existing under this Agreement and the
other Loan Documents held by such Lender or the Issuing Bank, irrespective of whether or not such Person shall have made any demand under this Agreement or any other Loan Document and although such obligations may be unmatured. The rights of each
Lender and the Issuing Bank under this Section 21 are in addition to other rights and remedies (including other rights of setoff) which such Lender or the Issuing Bank, as the case may be, may have. 

[Balance of page intentionally left blank] 
  

 Exhibit D-6 

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

			
	EACH OF THE SUBSIDIARIES LISTED ON
SCHEDULE I HERETO
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	BANK OF AMERICA, N.A., as Administrative Agent
		
	By:	 	  

	Name:	 	
	Title:	 	

  

 Exhibit D-7 

 SCHEDULE I TO THE 

SUBSIDIARY GUARANTEE AGREEMENT 
  

							
	  	 	 Guarantor(s)
	  	 Address
	  	 

  

 Schedule I-D 

 ANNEX 1 TO THE 

SUBSIDIARY GUARANTEE AGREEMENT 

SUPPLEMENT NO. [    ] dated as of [            ], to the
Subsidiary Guarantee Agreement (the “Guarantee Agreement”) dated as of August 3, 2007 among each of the subsidiaries listed on Schedule I thereto (each such Subsidiary individually, a
“Guarantor” and collectively, the “Guarantors”) of WATSCO, INC., a Florida corporation (the “Borrower”), and BANK OF AMERICA, N.A., as Administrative Agent (the
“Administrative Agent”) for the Lenders (as defined in the Credit Agreement referred to below). 
 A.
Reference is made to the Revolving Credit Agreement dated as of August 3, 2007 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among the Borrower, the lenders from time to time
party thereto (the “Lenders”) and Bank of America, N.A., as Administrative Agent, swingline lender and issuing bank (in such capacity, the “Issuing Bank”). Capitalized terms used herein and not
otherwise defined herein shall have the meanings assigned to such terms in the Credit Agreement. 
 B. Capitalized terms used
herein and not otherwise defined herein shall have the meanings assigned to such terms in the Guarantee Agreement and the Credit Agreement. 

C. The Guarantors have entered into the Guarantee Agreement in order to induce the Lenders to make Loans and the Issuing Bank to issue
Letters of Credit. Pursuant to Section 5.10 of the Credit Agreement, each Subsidiary Loan Party that was not in existence or not a Subsidiary Loan Party on the date of the Credit Agreement is required to enter into the Guarantee
Agreement as a Guarantor upon becoming a Subsidiary Loan Party. Section 20 of the Guarantee Agreement provides that additional Subsidiaries of the Borrower may become Guarantors under the Guarantee Agreement by execution and delivery of
an instrument in the form of this Supplement. The undersigned Subsidiary of the Borrower (the “New Guarantor”) is executing this Supplement in accordance with the requirements of the Credit Agreement to become a Guarantor
under the Guarantee Agreement in order to induce the Lenders to make additional Loans and the Issuing Bank to issue additional Letters of Credit and as consideration for Loans previously made and Letters of Credit previously issued. 

Accordingly, the Administrative Agent and the New Guarantor agree as follows: 

SECTION 1. In accordance with Section 20 of the Guarantee Agreement, the New Guarantor by its signature below becomes a
Guarantor under the Guarantee Agreement with the same force and effect as if originally named therein as a Guarantor and the New Guarantor hereby (a) agrees to all the terms and provisions of the Guarantee Agreement applicable to it as
Guarantor thereunder and (b) represents and warrants that the representations and warranties made by it as a Guarantor thereunder are true and correct on and as of the date hereof. Each reference to a Guarantor in the Guarantee Agreement shall
be deemed to include the New Guarantor. The Guarantee Agreement is hereby incorporated herein by reference. 
 SECTION 2. The
New Guarantor represents and warrants to the Administrative Agent and the Lenders that this Supplement has been duly authorized, executed and delivered by it and constitutes its legal, valid and binding obligation, enforceable against it in
accordance with its terms. 
 SECTION 3. This Supplement may be executed in counterparts each of which shall constitute an
original, but all of which when taken together shall constitute a single contract. This Supplement shall become effective when the Administrative Agent shall have received counterparts of this Supplement that, when taken together, bear the
signatures of the New Guarantor and the Administrative Agent. Delivery of an executed signature page to this Supplement by facsimile transmission shall be as effective as delivery of a manually signed counterpart of this Supplement. 

 

 Annex I-D-1 

 SECTION 4. Except as expressly supplemented hereby, the Guarantee Agreement shall remain in
full force and effect. 
 SECTION 5. THIS SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE
STATE OF NORTH CAROLINA. 
 SECTION 6. In case any one or more of the provisions contained in this Supplement should be held
invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein and in the Guarantee Agreement shall not in any way be affected or impaired thereby (it being understood that
the invalidity of a particular provision hereof in a particular jurisdiction shall not in and of itself affect the validity of such provision in any other jurisdiction). The parties hereto shall endeavor in good-faith negotiations to replace the
invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions. 

SECTION 7. All communications and notices hereunder shall be in writing and given as provided in Section 14 of the Guarantee
Agreement. All communications and notices hereunder to the New Guarantor shall be given to it at the address set forth under its signature below, with a copy to the Borrower. 

SECTION 8. The New Guarantor agrees to reimburse the Administrative Agent for its out-of-pocket expenses in connection with this
Supplement, including the fees, disbursements and other charges of counsel for the Administrative Agent. 
 IN WITNESS WHEREOF,
the New Guarantor and the Administrative Agent have duly executed this Supplement to the Guarantee Agreement as of the day and year first above written. 

 

			
	[Name of New Guarantor]
		
	By:	 	  

	Name:	 	
	Title:	 	
	Address:	 	
	
	BANK OF AMERICA, N.A., as Administrative Agent
		
	By:	 	  

	Name:	 	
	Title:	 	

  

 Annex I-D-2 

 SCHEDULE I 

TO SUPPLEMENT NO.      TO THE SUBSIDIARY 

GUARANTEE AGREEMENT 

Guarantors 
  

							
	  	 	 Name
	  	 Address
	  	 

  

 Schedule I-D-1 

 EXHIBIT E 

[FORM OF] 

INDEMNITY, SUBROGATION and CONTRIBUTION AGREEMENT dated as of August 3, 2007, among WATSCO, INC., a Florida corporation (the
“Borrower”), each Subsidiary listed on Schedule I hereto (the “Guarantors”), BANK OF AMERICA, N.A., as administrative agent (in such capacity, the “Administrative Agent”)
for the Lenders (as defined in the Credit Agreement referred to below). 
 Reference is made to (a) the Revolving Credit
Agreement dated as of August 3, 2007 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among the Borrower, the lenders from time to time party thereto (the
“Lenders”) and Bank of America, N.A., as Administrative Agent, swingline lender and issuing bank (in such capacity, the “Issuing Bank”), and (b) the Subsidiary Guarantee Agreement dated as
August 3, 2007, among the Guarantors and the Administrative Agent (as amended, supplemented or otherwise modified from time to time, the “Guarantee Agreement”). Capitalized terms used herein and not defined herein shall
have the meanings assigned to such terms in the Credit Agreement. 
 The Lenders have agreed to make Loans to the Borrower, and
the Issuing Bank has agreed to issue Letters of Credit for the account of the Borrower, pursuant to, and upon the terms and subject to the conditions specified in, the Credit Agreement. The Guarantors have guaranteed such Loans and the other
Obligations (as defined in the Guarantee Agreement) of the Borrower under the Credit Agreement pursuant to the Guarantee Agreement. The obligations of the Lenders to make Loans and of the Issuing Bank to issue Letters of Credit are conditioned on,
among other things, the execution and delivery by the Borrower and the Guarantors of an agreement in the form hereof. 

Accordingly, the Borrower, each Guarantor and the Administrative Agent agree as follows: 

SECTION 1. Indemnity and Subrogation. In addition to all such rights of indemnity and subrogation as the Guarantors may have under
applicable law (but subject to Section 3), the Borrower agrees that in the event a payment shall be made by any Guarantor under the Guarantee Agreement, the Borrower shall indemnify such Guarantor for the full amount of such payment and
such Guarantor shall be subrogated to the rights of the person to whom such payment shall have been made to the extent of such payment. 

SECTION 2. Contribution and Subrogation. Each Guarantor (a “Contributing Guarantor”) agrees (subject to
Section 3) that, in the event a payment shall be made by any other Guarantor under the Guarantee Agreement and such other Guarantor (the “Claiming Guarantor”) shall not have been fully indemnified by the Borrower
as provided in Section 1, the Contributing Guarantor shall indemnify the Claiming Guarantor in an amount equal to the amount of such payment multiplied by a fraction of which the numerator shall be the net worth of the Contributing
Guarantor on the date hereof and the denominator shall be the aggregate net worth of all the Guarantors on the date hereof (or, in the case of any Guarantor becoming a party hereto pursuant to Section 12, the date of the Supplement
hereto executed and delivered by such Guarantor). Any Contributing Guarantor making any payment to a Claiming Guarantor pursuant to this Section 2 shall be subrogated to the rights of such Claiming Guarantor under Section 1
to the extent of such payment. 
 SECTION 3. Subordination. Notwithstanding any provision of this Agreement to the
contrary, all rights of the Guarantors under Sections 1 and 2 and all other rights of indemnity, contribution or subrogation under applicable law or otherwise shall be fully 

 

 Exhibit E-1 

 
subordinated to the indefeasible payment in full in cash of the Obligations. No failure on the part of the Borrower or any Guarantor to make the payments required under applicable law or
otherwise shall in any respect limit the obligations and liabilities of any Guarantor with respect to its obligations hereunder, and each Guarantor shall remain liable for the full amount of the obligations of such Guarantor hereunder. 

SECTION 4. Termination. This Agreement shall survive and be in full force and effect so long as any Obligation is outstanding and
has not been indefeasibly paid in full in cash, and so long as the LC Exposure has not been reduced to zero or any of the Commitments under the Credit Agreement have not been terminated, and shall continue to be effective or be reinstated, as the
case may be, if at any time payment, or any part thereof, of any Obligation is rescinded or must otherwise be restored by any Lender or any Guarantor upon the bankruptcy or reorganization of the Borrower, any Guarantor or otherwise. 

SECTION 5. Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NORTH
CAROLINA. 
 SECTION 6. No Waiver; Amendment. 

(a) No failure on the part of the Administrative Agent or any Guarantor to exercise, and no delay in exercising, any right, power or
remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power or remedy by the Administrative Agent or any Guarantor preclude any other or further exercise thereof or the exercise of any other
right, power or remedy. All remedies hereunder are cumulative and are not exclusive of any other remedies provided by law. None of the Administrative Agent and the Guarantors shall be deemed to have waived any rights hereunder unless such waiver
shall be in writing and signed by such parties. 
 (b) Neither this Agreement nor any provision hereof may be waived, amended or
modified except pursuant to a written agreement entered into between the Borrower, the Guarantors and the Administrative Agent, with the prior written consent of the Required Lenders (except as otherwise provided in the Credit Agreement).

 SECTION 7. Notices. All communications and notices hereunder shall be in writing and given as provided in the
Guarantee Agreement and addressed as specified therein. 
 SECTION 8. Binding Agreement; Assignments. Whenever in this
Agreement any of the parties hereto is referred to, such reference shall be deemed to include the successors and assigns of such party; and all covenants, promises and agreements by or on behalf of the parties that are contained in this Agreement
shall bind and inure to the benefit of their respective successors and assigns. Neither the Borrower nor any Guarantor may assign or transfer any of its rights or obligations hereunder (and any such attempted assignment or transfer shall be void)
without the prior written consent of the Required Lenders. Notwithstanding the foregoing, at the time any Guarantor is released from its obligations under the Guarantee Agreement in accordance with such Guarantee Agreement and the Credit Agreement,
such Guarantor will cease to have any rights or obligations under this Agreement. 
 SECTION 9. Survival of Agreement;
Severability. 
 (a) All covenants and agreements made by the Borrower and each Guarantor herein and in the certificates or
other instruments prepared or delivered in connection with this Agreement or the other Loan Documents shall be considered to have been relied upon by the Administrative Agent, the Lenders and each Guarantor and shall survive the making by the
Lenders of the 
  

 Exhibit E-2 

 
Loans and the issuance of the Letters of Credit by the Issuing Bank, and shall continue in full force and effect as long as the principal of or any accrued interest on any Loans or any other fee
or amount payable under the Credit Agreement or this Agreement or under any of the other Loan Documents is outstanding and unpaid or the LC Exposure does not equal zero and as long as the Commitments have not been terminated. 

(b) In case one or more of the provisions contained in this Agreement should be held invalid, illegal or unenforceable in any respect, no
party hereto shall be required to comply with such provision for so long as such provision is held to be invalid, illegal or unenforceable, but the validity, legality and enforceability of the remaining provisions contained herein shall not in any
way be affected or impaired thereby. The parties shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the
invalid, illegal or unenforceable provisions. 
 SECTION 10. Counterparts. This Agreement may be executed in counterparts
(and by different parties hereto on different counterparts) each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Agreement shall be effective with respect to any Guarantor when a
counterpart bearing the signature of such Guarantor shall have been delivered to the Administrative Agent. 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. 
 SECTION 11. Rules of Interpretation. The rules of interpretation specified in
Section 1.3 of the Credit Agreement shall be applicable to this Agreement. 
 SECTION 12. Additional
Guarantors. Pursuant to Section 5.10 of the Credit Agreement, each Subsidiary Loan Party of the Borrower that was not in existence or not such a Subsidiary Loan Party on the date of the Credit Agreement is required to enter into the
Guarantee Agreement as Guarantor upon becoming such a Subsidiary Loan Party. Upon the execution and delivery, after the date hereof, by the Administrative Agent and such Subsidiary of an instrument in the form of Annex I hereto, such
Subsidiary shall become a Guarantor hereunder with the same force and effect as if originally named as a Guarantor hereunder. The execution and delivery of any instrument adding an additional Guarantor as a party to this Agreement shall not require
the consent of any Guarantor hereunder. The rights and obligations of each Guarantor hereunder shall remain in full force and effect notwithstanding the addition of any new Guarantor as a party to this Agreement. 

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

			
	WATSCO, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	EACH OF THE SUBSIDIARIES LISTED ON
SCHEDULE I HERETO, as a Guarantor
		
	By:	 	  

	Name:	 	
	Title:	 	

  

 Exhibit E-3 

			
	BANK OF AMERICA, N.A., as Administrative Agent
		
	By:	 	  

	Name:	 	
	Title:	 	

  

 Exhibit E-4 

 SCHEDULE I 

TO THE INDEMNITY, SUBROGATION 

AND CONTRIBUTION AGREEMENT 

Guarantors 
  

							
	  	 	 Name
	  	 Address
	  	 

  

 Schedule I-E 

 ANNEX I TO 

THE INDEMNITY, SUBROGATION AND 

CONTRIBUTION AGREEMENT 

SUPPLEMENT NO. [    ] dated as of [            ], to the
Indemnity, Subrogation and Contribution Agreement dated as of August 3, 2007 (as the same may be amended, supplemented or otherwise modified from time to time, the “Indemnity, Subrogation and Contribution Agreement”)
among WATSCO, INC., a Florida corporation (the “Borrower”), each Subsidiary listed on Schedule I thereto (the “Guarantors”) and BANK OF AMERICA, N.A., as administrative agent (the
“Administrative Agent”) for the Lenders (as defined in the Credit Agreement referred to below). 
 A.
Reference is made to (a) the Revolving Credit Agreement dated as of August 3, 2007 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among the Borrower, the lenders from
time to time party thereto (the “Lenders”) and Bank of America, N.A., as the Administrative Agent, swingline lender and issuing bank (in such capacity, the “Issuing Bank”), and (b) the Subsidiary
Guarantee Agreement dated as August 3, 2007, among the Guarantors and the Administrative Agent (as amended, supplemented or otherwise modified from time to time, the “Guarantee Agreement”). 

B. Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the Indemnity,
Subrogation and Contribution Agreement and the Credit Agreement. 
 C. The Borrower and the Guarantors have entered into the
Indemnity, Subrogation and Contribution Agreement in order to induce the Lenders to make Loans and the Issuing Bank to issue Letters of Credit. Pursuant to Section 5.10 of the Credit Agreement, each Subsidiary Loan Party that was not in
existence or not such a Subsidiary Loan Party on the date of the Credit Agreement is required to enter into the Guarantee Agreement as a Guarantor upon becoming a Subsidiary Loan Party. Section 12 of the Indemnity, Subrogation and
Contribution Agreement provides that additional Subsidiaries may become Guarantors under the Indemnity, Subrogation and Contribution Agreement by execution and delivery of an instrument in the form of this Supplement. The undersigned Subsidiary (the
“New Guarantor”) is executing this Supplement in accordance with the requirements of the Credit Agreement to become a Guarantor under the Indemnity, Subrogation and Contribution Agreement in order to induce the Lenders to
make additional Loans and the Issuing Bank to issue additional Letters of Credit and as consideration for Loans previously made and Letters of Credit previously issued. 

Accordingly, the Administrative Agent and the New Guarantor agree as follows: 

SECTION 1. In accordance with Section 12 of the Indemnity, Subrogation and Contribution Agreement, the New Guarantor by its
signature below becomes a Guarantor under the Indemnity, Subrogation and Contribution Agreement with the same force and effect as if originally named therein as a Guarantor and the New Guarantor hereby agrees to all the terms and provisions of the
Indemnity, Subrogation and Contribution Agreement applicable to it as Guarantor thereunder. Each reference to a Guarantor in the Indemnity, Subrogation and Contribution Agreement shall be deemed to include the New Guarantor. The Indemnity,
Subrogation and Contribution Agreement is hereby incorporated herein by reference. 
  

 Annex I-E-1 

 SECTION 2. The New Guarantor represents and warrants to the Administrative Agent and the
Lenders that this Supplement has been duly authorized, executed and delivered by it and constitutes its legal, valid and binding obligation, enforceable against it in accordance with its terms. 

SECTION 3. This Supplement may be executed in counterparts (and by different parties hereto on different counterparts) each of which
shall constitute an original, but all of which when taken together shall constitute a single contract. This Supplement shall become effective when the Administrative Agent shall have received counterparts of this Supplement that, when taken
together, bear the signature of the New Guarantor and the Administrative Agent. Delivery of an executed signature page to this Supplement by facsimile transmission shall be as effective as delivery of a manually signed counterpart of this
Supplement. 
 SECTION 4. Except as expressly supplemented hereby, the Indemnity, Subrogation and Contribution Agreement shall
remain in full force and effect. 
 SECTION 5. THIS SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS
OF THE STATE OF NORTH CAROLINA. 
 SECTION 6. In case any one or more of the provisions contained in this Supplement should be
held invalid, illegal or unenforceable in any respect, neither party hereto shall be required to comply with such provision for so long as such provision is held to be invalid, illegal or unenforceable, but the validity, legality and enforceability
of the remaining provisions contained herein and in the Indemnity, Subrogation and Contribution Agreement shall not in any way be affected or impaired. The parties hereto shall endeavor in good-faith negotiations to replace the invalid, illegal or
unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions. 

SECTION 7. All communications and notices hereunder shall be in writing and given as provided in Section 7 of the Indemnity,
Subrogation and Contribution Agreement. All communications and notices hereunder to the New Guarantor shall be given to it at the address set forth under its signature. 

SECTION 8. The New Guarantor agrees to reimburse the Administrative Agent for its reasonable out-of-pocket expenses in connection with
this Supplement, including the reasonable fees, other charges and disbursements of counsel for the Administrative Agent. 
  

 Annex I-E-2 

 IN WITNESS WHEREOF, the New Guarantor and the Administrative Agent have duly executed this
Supplement to the Indemnity, Subrogation and Contribution Agreement as of the day and year first above written. 
  

			
	[Name of New Guarantor]
		
	By:	 	  

	Name:	 	
	Title:	 	
	Address:	 	
	
	BANK OF AMERICA, N.A., as Administrative Agent
		
	By:	 	  

	Name:	 	
	Title:	 	

  

 Annex I-E-3 

 SCHEDULE I 

TO SUPPLEMENT NO.      TO THE INDEMNITY, 

SUBROGATION AND CONTRIBUTION AGREEMENT 

Guarantors 
  

							
	  	 	 Name
	  	 Address
	  	 

  

 Annex I-E-1 

 EXHIBIT 2.3 

NOTICE OF REVOLVING BORROWING 

[Date] 
 Bank of America,
N.A., as Administrative Agent 
 101 N. Tryon Street 

Mail Code: NC1-001-04-39 
 Charlotte, North
Carolina 28255 
  

	Attention:	Sabrina D. Miles 

Credit Services Representative 

Dear Sirs: 
 Reference is made
to the Revolving Credit Agreement dated as of August 3, 2007 (as amended and in effect on the date hereof, the “Credit Agreement”), among the undersigned, as Borrower, the Lenders named therein, and Bank of America,
N.A., as Administrative Agent. Terms defined in the Credit Agreement are used herein with the same meanings. This notice constitutes a Notice of Revolving Borrowing, and the Borrower hereby requests a Revolving Borrowing under the Credit Agreement,
and in that connection the Borrower specifies the following information with respect to the Revolving Borrowing requested hereby: 
  

	 	(A)	Aggregate principal amount of Revolving Borrowing 1/:
                                         
        

  

	 	(B)	Date of Revolving Borrowing (which is a Business Day):
                                         
        

  

	 	(C)	Interest Rate basis 2/:
                                         
        

  

	 	(D)	Interest Period 3/:
                                         
        

  

	 	(E)	Location and number of Borrower’s account to which proceeds of Revolving Borrowing are to be disbursed:
                                         
                                         
                           

The Borrower hereby represents and warrants that the conditions specified in paragraphs (a), (b) and (c) of
Section 3.2 of the Credit Agreement are satisfied. 
  

			
	Very truly yours,
	
	WATSCO, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	

  

	1/	In the case of the Eurodollar Borrowings, not less than $5,000,000 and an integral multiple of $1,000,000 and, in the case of Base Rate Borrowings, not less than
$1,000,000 and an integral multiple of $100,000. 

	2/	Eurodollar Borrowing or Base Rate Borrowing. 

	3/	Which must comply with the definition of “Interest Period” and end not later than the Commitment Termination Date. 

 

 Exhibit 2.3 

 EXHIBIT 2.5 

NOTICE OF SWINGLINE BORROWING 

[Date] 
 Bank of America,
N.A., as Administrative Agent 
 101 N. Tryon Street 

Mail Code: NC1-001-04-39 
 Charlotte, North
Carolina 28255 
  

	Attention:	Sabrina D. Miles 

Credit Services Representative 

Dear Sirs: 
 Reference is made
to the Revolving Credit Agreement dated as of August 3, 2007 (as amended and in effect on the date hereof, the “Credit Agreement”), among the undersigned, as Borrower, the Lenders named therein, and Bank of America,
N.A., as Administrative Agent. Terms defined in the Credit Agreement are used herein with the same meanings. This notice constitutes a Notice of Revolving Borrowing, and the Borrower hereby requests a Revolving Borrowing under the Credit Agreement,
and in that connection the Borrower specifies the following information with respect to the Revolving Borrowing requested hereby: 
  

	 	(A)	Principal amount of Swingline Loan 4/:
                                         
        

  

	 	(B)	Date of Swingline Loan (which is a Business Day)
                                         
        

  

	 	(C)	Location and number of Borrower’s account to which proceeds of Swingline Loan are to be disbursed:
                                         
                                         
                           

The Borrower hereby represents and warrants that the conditions specified in paragraphs (a), (b) and (c) of
Section 3.2 of the Credit Agreement are satisfied. 
  

			
	Very truly yours,
	
	WATSCO, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	

  

	4/	Not less than $100,000 and an integral multiple of $50,000. 

  

 Exhibit 2.5 

 EXHIBIT 2.7 

FORM OF CONTINUATION/CONVERSION 

[Date] 
 Bank of America,
N.A., as Administrative Agent 
 101 N. Tryon Street 

Mail Code: NC1-001-04-39 
 Charlotte, North
Carolina 28255 
  

	Attention:	Sabrina D. Miles 

Credit Services Representative 

Dear Sirs: 
 Reference is made
to the Revolving Credit Agreement dated as of August 3, 2007 (as amended and in effect on the date hereof, the “Credit Agreement”), among the undersigned, as Borrower, the Lenders named therein, and Bank of America,
N.A., as Administrative Agent. Terms defined in the Credit Agreement are used herein with the same meanings. This notice constitutes a Continuation/Conversion and the Borrower hereby requests the conversion or continuation of a Revolving Borrowing
under the Credit Agreement, and in that connection the Borrower specifies the following information with respect to the Revolving Borrowing to be converted or continued as requested hereby: 

 

	 	(A)	Revolving Borrowing to which this request applies:
                                         
        

  

	 	(B)	Principal amount of Revolving Borrowing to be converted/continued:
                                         
        

  

	 	(C)	Effective date of election (which is a Business Day):
                                         
        

  

	 	(D)	Interest rate basis:
                                         
        

  

	 	(E)	Interest Period:
                                         
        

  

			
	Very truly yours,
	
	WATSCO, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	

  

 Exhibit 2.7 

 EXHIBIT 3.1(b)(iv) 

FORM OF SECRETARY’S CERTIFICATE OF WATSCO, INC. 

Reference is made to the Revolving Credit Agreement dated as of August 3, 2007 (the “Credit Agreement”),
among Watsco, Inc. (the “Borrower”), the Lenders named therein, and Bank of America, N.A., as Administrative Agent. Terms defined in the Credit Agreement are used herein with the same meanings. This certificate is being
delivered pursuant to Section 3.1 of the Credit Agreement. 
 I,
[                    ], Secretary of the Borrower, DO HEREBY CERTIFY that: 

(a) there have been no amendments or supplements to, or restatements of, the Articles of Incorporation of the Borrower delivered pursuant
to Section 3.1 of the Credit Agreement; 
 (b) no proceeding have been instituted or are pending or contemplated
with respect to the dissolution, liquidation or sale of all or substantially all the assets of the Borrower or threatening its existence or the forfeiture or any of its corporate rights; 

(c) annexed hereto as Exhibit A is a true and correct copy of the Bylaws of the Borrower as in effect on
                                 ,
             and at all times thereafter through the date hereof; 

(d) annexed hereto as Exhibit B is a true and correct copy of certain resolutions duly adopted by the Board of Directors of the Borrower
at a meeting of said Board of Directors duly called and held on                         
        , 2007, which resolutions are the only resolutions adopted by the Board of Directors of the Borrower or any committee thereof relating to the Credit Agreement and the other Loan Documents to
which the Borrower is a party and the transactions contemplated therein and have not been revoked, amended, supplemented or modified and are in full force and effect on the date hereof; and 

(e) each of the persons named below is and has been at all times since
                                 ,
             a duly elected and qualified officer of the Borrower holding the respective office set forth opposite his or her name and the signature set forth opposite of each such
person is his or her genuine signature: 
  

					
	 Name
	  	 Title
	  	 Specimen Signature

	 [Include all officers who are

signing the Credit Agreement

or any other Loan Documents.]
	  		  	

 IN WITNESS WHEREOF, I have hereunto signed my name this      day of
                        , 2007. 

 

	
	  

	Secretary

 I,
[                        ],
[                        ] of the Borrower, do hereby certify that
[                        ] has been duly elected, is duly qualified and is the Secretary of the Borrower, that the
signature set forth above is [his/her] genuine signature and that [he/she] has held such office at all times since
                                 ,
            . 
  

 Exhibit 3.1(b)(iv) 

 IN WITNESS WHEREOF, I have hereunto signed my name this      day
of                         , 2007. 

 

	
	  

	Title:

  

 Exhibit 3.1(b)(iv) 

 EXHIBIT 3.1(b)(vii) 

FORM OF OFFICER’S CERTIFICATE 

Reference is made to the Revolving Credit Agreement dated as of August 3, 2007 (the “Credit Agreement”),
among Watsco, Inc. (the “Borrower”), the Lenders from time to time party thereto, and Bank of America, N.A., as Administrative Agent. Terms defined in the Credit Agreement are used herein with the same meanings. This
certificate is being delivered pursuant to Section 3.1(b)(vii) of the Credit Agreement. 
 I,
[                        ],
[                        ] of the Borrower, DO HEREBY CERTIFY that: 

(a) the representations and warranties of the Borrower set forth in the Credit Agreement are true and correct on and as of the date
hereof; 
 (b) the Borrower is in compliance with the conditions set forth in Section 3.2(a), (b) and
(c) of the Credit Agreement; 
 (c) attached hereto is a completed Compliance Certificate for the fiscal period
ended June 30, 2007; 
 (d) since March 31, 2007 there has been no event or condition which has had or could
reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect; 
 (e) no action, suit,
investigation or proceeding is pending or, to the knowledge of the Borrower, threatened in any court or before any arbitrator or governmental authority that could reasonably be expected to have a Material Adverse Effect; and 

(f) no consents, approvals, authorizations, registrations or filings are required to be made or obtained by any Loan Party in connection
with the Loans and any transactions being financed with the proceeds of the Loans. 
 IN WITNESS WHEREOF, I have hereunto signed
my name this      day of                         , 2007. 

 

			
	  

	Name:	 	  

	Title:	 	  

  

 Exhibit 3.1(b)(vii) 

 EXHIBIT 5.1(c) 

FORM OF COVENANT COMPLIANCE CERTIFICATE 

Financial Statement Date:
                        ,              

To: Bank of America, N.A., as Administrative Agent 

Ladies and Gentlemen: 

Reference is made to the Revolving Credit Agreement dated as of August 3, 2007 (the “Credit Agreement”),
among Watsco, Inc. (the “Borrower”), the Lenders from time to time party thereto, and Bank of America, N.A., as Administrative Agent. Terms defined in the Credit Agreement are used herein with the same meanings. This
certificate is being delivered pursuant to Section 5.1(c) of the Credit Agreement. 
 The undersigned Responsible
Officer hereby certifies as of the date hereof that he/she is the
                                         
        of the Borrower, and that, as such, he/she is authorized to execute and deliver this certificate to the Administrative Agent on the behalf of the Borrower, and that: 

[Use following for fiscal year-end financial statements] 

1. Attached hereto as Schedule 1 are the year-end audited financial statements required by Section 5.1(a) of the
Credit Agreement for the fiscal year of the Borrower ended as of the above date, together with the report and opinion of an independent certified public accountant required by such section. 

[Use following for fiscal quarter-end financial statements] 

1. Attached hereto as Schedule 1 are the unaudited financial statements required by Section 5.1(b) of the Credit
Agreement for the fiscal quarter of the Borrower ended as of the above date. Such financial statements fairly present the financial condition, results of operations, stockholders’ equity and cash flows of the Borrower and its Subsidiaries in
accordance with GAAP as at such date and for such periods, subject only to normal year-end audit adjustments and the absence of footnotes. 

2. The undersigned has reviewed and is familiar with the terms of the Credit Agreement and has made, or has caused to be made under
his/her supervision, a detailed review of the transactions and condition (financial or otherwise) of the Borrower during the accounting period covered by the attached financial statements. 

3. A review of the activities of the Borrower during such fiscal period has been made under the supervision of the undersigned with a
view to determining whether during such fiscal period the Borrower performed and observed each covenant and condition of the Loan Documents applicable to it, and 

[select one:] 
  

 Exhibit 5.1(c) 

 (a) [To the best knowledge of the undersigned during such fiscal period, the Borrower (and,
to the extent applicable, each Subsidiary) performed and observed each covenant and condition of the Loan Documents applicable to it and no Default or Event of Default exists as of the date of this certificate.] 

[or] 

[The following covenants or conditions have not been performed or observed by the Borrower (or, to the extent applicable, by a
Subsidiary) under the Loan Documents and the following is a list of each such Default or Event of Default and its nature and status:] 

[select one:] 

(b) [no change in GAAP or the application thereof has occurred since the date of the Borrower’s audited financial statements last
delivered to the Administrative Agent and each Lender pursuant to Section 5.1(a) of the Credit Agreement.] 
 [or]

 [a change in GAAP or the application thereof has occurred since the date of the Borrower’s audited financial
statements last delivered to the Administrative Agent and the effect of such change on the financial statements attached hereto as Schedule 1 is as follows:] 

4. The financial covenant calculations set forth on Schedule 2 attached hereto are true and accurate on and as of the date of this
certificate and demonstrate compliance with Article VI of the Credit Agreement on and as of the date hereof. 
 IN
WITNESS WHEREOF, the undersigned has executed this certificate as of                         
        , 200    . 
  

			
	WATSCO, INC.
		
	By:	 	  

	Name:	 	  

	Title:	 	  

  

 Exhibit 5.1(c) 

 SCHEDULE 1 

FISCAL [YEAR END] [QUARTER END] FINANCIAL STATEMENTS 
  

 Exhibit 5.1(c) 

 SCHEDULE 2 

FINANCIAL COVENANT CALCULATIONS 

Financial Statement Date:
                        ,              

[To be provided by the Borrower] 
  

 Exhibit 5.1(c) 

 EXHIBIT B 

SECURITIES PLEDGE AGREEMENT 

See attached. 

 EXHIBIT B 

SECURITIES PLEDGE AGREEMENT 

THIS SECURITIES PLEDGE AGREEMENT dated as of July 1, 2009 (this “Pledge Agreement”), is being entered
into among EACH OF THE UNDERSIGNED, EACH OTHER PERSON THAT SHALL BECOME A PARTY HERETO BY EXECUTION OF A PLEDGE JOINDER AGREEMENT (each a “Pledgor” and collectively, the “Pledgors”), and BANK
OF AMERICA, N.A., as Administrative Agent (in such capacity, the “Administrative Agent”) for each of the Secured Parties (as defined in the Credit Agreement). 

RECITALS: 

A. Pursuant to a Revolving Credit Agreement dated as of August 3, 2007 (as amended, restated, supplemented or otherwise modified
from time to time, the “Credit Agreement”), among Watsco, Inc., a Florida corporation (the “Borrower”), the Administrative Agent, Bank of America, N.A., as Swingline Lender and Issuing Bank, and the
lenders now or hereafter party thereto (the “Lenders”), the Lenders have agreed to provide to the Borrower a revolving credit facility with a letter of credit sublimit and swingline facility. 

B. Certain additional extensions of credit may be made from time to time for the benefit of the Pledgors pursuant to certain Secured
Hedging Agreements. 
 C. It is a condition precedent to the Secured Parties’ obligations under the Credit Agreement and
the Secured Hedging Agreements, as the case may be, to make and maintain such extensions of credit that the Pledgors shall have executed and delivered this Pledge Agreement to the Administrative Agent. 

In order to induce the Secured Parties to from time to time make and maintain extensions of credit under the Credit Agreement and Secured
Hedging Agreements, the parties hereto agree as follows: 
 1. Certain Definitions. All capitalized terms used but
not otherwise defined herein shall have the meanings assigned thereto in the Credit Agreement. Terms used in this Pledge Agreement that are not otherwise expressly defined herein or in the Credit Agreement, and for which meanings are provided in the
Uniform Commercial Code of the State of North Carolina (the “UCC”), shall have such meanings unless the context requires otherwise. In addition, for purposes of this Pledge Agreement, the following terms have the following
definitions: 
 “Carrier Enterprise Securities” means the shares of Capital Stock or the other equity
interests issued by or equity participations in Carrier Enterprise, whether or not constituting a “security” under Article 8 of the Uniform Commercial Code as in effect in any jurisdiction. 

“Facility Termination Date” means the date as of which all of the following shall have occurred: (a) the
Aggregate Revolving Commitments have terminated, (b) all Obligations have been paid in full (other than (x) contingent obligations and (y) obligations and liabilities under Secured Hedging Agreements as to which arrangements
satisfactory to the applicable Hedge Bank have been made), and (c) all Letters of Credit have terminated or expired (other than Letters of Credit as to which other arrangements with respect thereto satisfactory to the Administrative Agent and
the Issuing Bank shall have been made). 

 “Pledge Documents” means, collectively, this Pledge Agreement, all
Pledge Agreement Supplements and all Pledge Joinder Agreements. 
 2. Pledge of Pledged Interests; Other Collateral.

 (a) Each Pledgor hereby grants as collateral security for the payment, performance and satisfaction of all
of the Obligations and the obligations and liabilities of any Loan Party now existing or hereafter arising hereunder or under any of the other Loan Documents and any Secured Hedging Agreements to which it is now or hereafter becomes a party (such
obligations and liabilities of the Borrower and the Pledgors are referred to collectively as the “Secured Obligations”), to the Administrative Agent for the benefit of the Secured Parties a first priority security interest in
all of the following items of property in which it now has or may at any time hereafter acquire an interest or the power to transfer rights therein, and wheresoever located: 

(i) all of its Carrier Enterprise Securities, in each case, whether now existing or hereafter created or acquired
(collectively, the “Pledged Interests”), including without limitation the Pledged Interests more particularly described on Schedule I hereto (as supplemented from time to time); 

(ii) all money, securities, security entitlements and other investment property, dividends, rights, general intangibles
and other property at any time and from time to time (x) declared or distributed in respect of or in exchange for or on conversion of any Pledged Interest, or (y) by its or their terms exchangeable or exercisable for or convertible into
any Pledged Interest; 
 (iii) all other property of whatever character or description, including money,
securities, security entitlements and other investment property, and general intangibles hereafter delivered to the Administrative Agent in substitution for or as an addition to any of the foregoing; 

(iv) all securities accounts to which may at any time be credited any or all of the foregoing or any proceeds thereof and
all certificates and instruments representing or evidencing any of the foregoing or any proceeds thereof; and 

(v) all proceeds of any of the foregoing. 

All such Pledged Interests, certificates, instruments, cash, securities, interests, dividends, rights and other property referred to in
clauses (i) through (v) of this Section 2 are herein collectively referred to as the “Collateral.” 

(b) Subject to Section 11(a), each Pledgor agrees to deliver all certificates, instruments or other documents
representing any Collateral to the Administrative Agent at such location as the Administrative Agent shall from time to time designate by written notice pursuant to Section 23 for its custody at all times until termination of this Pledge
Agreement, together with duly executed stock powers (or other such instruments of assignment and transfer as requested by the Administrative Agent) in blank affixed thereto. 

 

 2 

 (c) Each Pledgor agrees to execute and deliver, or cause to be executed and
delivered by other Persons, at Pledgor’s expense, all share certificates, documents, instruments, agreements, financing statements (and amendments thereto and continuations thereof), assignments, control agreements, or other writings as the
Administrative Agent may reasonably request from time to time to carry out the terms of this Pledge Agreement or to protect or enforce the Administrative Agent’s Lien and security interest in the Collateral hereunder granted to the
Administrative Agent for the benefit of the Secured Parties and further agrees to do and cause to be done upon the Administrative Agent’s reasonable request, at Pledgor’s expense, all things reasonably determined by the Administrative
Agent to be necessary or advisable to perfect and keep in full force and effect the Lien in the Collateral hereunder granted to the Administrative Agent for the benefit of the Secured Parties, including the prompt payment of all out-of-pocket fees
and expenses incurred in connection with any filings made to perfect or continue the Lien and security interest in the Collateral hereunder granted in favor of the Administrative Agent for the benefit of the Secured Parties. 

(d) All filing fees, advances, charges, costs and expenses, including all reasonable fees and expenses of counsel
(collectively, “Attorneys’ Costs”), incurred or paid by the Administrative Agent or any Lender in exercising any right, power or remedy conferred by this Pledge Agreement, or in the enforcement thereof, shall become a
part of the Secured Obligations secured hereunder and shall be paid to the Administrative Agent for the benefit of the Secured Parties by the Pledgor in respect of which the same was incurred immediately upon demand therefor, and any amounts not so
paid on demand (in addition to other rights and remedies resulting from such nonpayment) shall bear interest from the date of demand until paid in full at the Default Interest rate described in Section 2.12(c) of the Credit Agreement.

 (e) Each Pledgor agrees to register and cause to be registered the interest of the Administrative Agent, for
the benefit of the Secured Parties, in the Collateral on its own books and records and the registration books of Carrier Enterprise. 

3. Status of Pledged Interests. Each Pledgor hereby represents, warrants and covenants to the Administrative Agent for the
benefit of the Secured Parties, with respect to itself and the Collateral as to which it has or acquires any interest, that: 

(a) All of the Pledged Interests are, as of the date of execution of this Pledge Agreement, a Pledge Agreement Supplement
or a Pledge Joinder Agreement, as applicable, by each Pledgor pledging such Pledged Interests (such date as applicable with respect to each Pledgor, its “Applicable Date”), and shall at all times thereafter be validly issued
and outstanding, fully paid and non-assessable and constitute all of the Pledgor’s issued and outstanding Carrier Enterprise Securities, and are accurately described on Schedule I hereto (as supplemented from time to time). 

(b) The Pledgor is as at its Applicable Date and shall at all times thereafter (subject to dispositions permitted under
Section 7.6 of the Credit Agreement) be the sole registered and record and beneficial owner of the Pledged Interests, free and clear of (except as otherwise provided pursuant to the JV Operating Agreement) all Liens, charges, equities,
options, hypothecations, encumbrances and restrictions on pledge or transfer, including transfer of voting rights (other than the pledge hereunder and applicable restrictions pursuant to federal and state securities laws). Without limiting the
foregoing, the Pledged Interests are not and will not be subject to (except as otherwise provided pursuant to the JV Operating Agreement) any voting trust, shareholders agreement, right of first refusal, voting proxy, power of attorney or other
similar arrangement (other than the rights hereunder in favor of the Administrative Agent). 
  

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 (c) At no time shall any Pledged Interests (i) be held or maintained in
the form of a security entitlement or credited to any securities account and (ii) which constitute a “security” (or as to which Carrier Enterprise has elected to have treated as a “security”) under Article 8 of the UCC
(including, for the purposes of this Section, the Uniform Commercial Code of any other applicable jurisdiction) be maintained in the form of uncertificated securities. With respect to Pledged Interests that are “securities” under the UCC,
or as to which Carrier Enterprise has elected at any time to have such interests treated as “securities” under the UCC, such Pledged Interests are, and shall at all times be, represented by the share certificates listed on Schedule
I hereto (as supplemented from time to time), which share certificates, with stock powers duly executed in blank by the Pledgor, have been delivered to the Administrative Agent or are being delivered to the Administrative Agent simultaneously
herewith, in the case of Additional Interests as defined in Section 22, shall be delivered pursuant to Section 22 or, in the case of Pledged Interests from a new Pledgor, shall be delivered pursuant to a Pledge Joinder
Agreement required by Section 24. In addition, with respect to all Pledged Interests, including Pledged Interests that are not “securities” under the UCC and as to which Carrier Enterprise has not elected to have such interests
treated as “securities” under the UCC, the Pledgor has at its Applicable Date delivered to the Administrative Agent (or has previously delivered to the Administrative Agent or, in case of Additional Interests shall deliver pursuant to
Section 22 or in the case of Pledged Interests from a new Pledgor shall deliver pursuant to a Pledge Joinder Agreement required by Section 24) Uniform Commercial Code financing statements (or appropriate amendments thereto)
duly authorized by the Pledgor and naming the Administrative Agent for the benefit of the Secured Parties as “secured party,” in form, substance and number sufficient in the reasonable opinion of the Administrative Agent to be filed in all
UCC filing offices and in all jurisdictions in which filing is necessary or advisable to perfect in favor of the Administrative Agent for the benefit of the Secured Parties the Lien on such Pledged Interests, together with all required filing fees.

 (d) It has full corporate power, legal right and lawful authority to execute the applicable Pledge Documents
and to pledge, assign and transfer its Pledged Interests in the manner and form hereof. 
 (e) The pledge,
assignment and delivery of its Pledged Interests (along with undated stock powers executed in blank and financing statements) to the Administrative Agent for the benefit of the Secured Parties pursuant to the applicable Pledge Documents creates or
continues, as applicable, a valid and perfected first priority security interest in such Pledged Interests in favor of the Administrative Agent for the benefit of the Secured Parties, securing the payment of the Secured Obligations, assuming, in the
case of the Pledged Interests which constitute certificated “securities” under the UCC (including, for the purposes of this Section, the Uniform Commercial Code of any other applicable jurisdiction), continuous and uninterrupted possession
by or on behalf of the Administrative Agent. The Pledgor will at its own cost and expense defend the Secured Parties’ right, title and security interest in and to the Collateral against the claims and demands of all persons whomsoever.

 (f) Except pursuant to a disposition permitted under Section 7.6 of the Credit Agreement, none of
the Pledged Interests (nor any interest therein or thereto) shall be sold, transferred or assigned without the Administrative Agent’s prior written consent, which may be withheld for any reason. 

 

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 (g) It shall at all times cause the Pledged Interests of such Pledgor that
constitute “securities” (or as to which Carrier Enterprise elects to have treated as “securities”) under the UCC to be represented by the certificates now and hereafter delivered to the Administrative Agent in accordance with
Sections 2, 3, 16 and 22 hereof and that it shall cause Carrier Enterprise not to issue to the Borrower or any of its Subsidiaries any Carrier Enterprise Securities, or securities convertible into, or exchangeable or
exercisable for, Carrier Enterprise Securities, at any time during the term of this Pledge Agreement unless the Pledged Interests are issued solely to either (y) such Pledgor who shall immediately comply with Sections 3 and 22
hereof with respect to such property or (z) the Borrower or any Pledgor who shall immediately pledge such additional Carrier Enterprise Securities to the Administrative Agent for the benefit of the Secured Parties pursuant to
Section 22 or 24 hereof, as applicable, on substantially identical terms as are contained herein and deliver or cause to be delivered the appropriate documents described in Section 3(c) hereof to the Administrative
Agent and take such further actions as the Administrative Agent may deem necessary in order to perfect a first priority security interest in such Carrier Enterprise Securities. 

(h) As of the date hereof, the exact legal name and address, type of Person, jurisdiction of formation, jurisdiction of
formation identification number (if any), and location of the chief executive office of such Pledgor are as specified on Schedule II attached hereto, as such may be modified from time to time to include information from the Pledgors provided
pursuant to the next sentence of this subsection (h). No Pledgor shall change its name, jurisdiction of formation (whether by reincorporation, merger or otherwise), or the location of its chief executive office, except upon giving not less
than thirty (30) days’ prior written notice to the Administrative Agent and taking or causing to be taken all such action at such Pledgor’s expense as may be reasonably requested by the Administrative Agent to perfect or maintain the
perfection of the Lien of the Administrative Agent in Collateral. 
 4. Preservation and Protection of Collateral.

 (a) The Administrative Agent shall be under no duty or liability with respect to the collection,
protection or preservation of the Collateral, or otherwise, beyond the use of reasonable care in the custody and preservation thereof while in its possession. 

(b) Each Pledgor agrees to pay when due all taxes, charges, Liens and assessments against the Collateral in which it has
an interest, unless being contested in good faith by appropriate proceedings diligently conducted and against which adequate reserves have been established in accordance with GAAP applied on a basis consistent with that used in preparing the annual
audited report and evidenced to the satisfaction of the Administrative Agent and provided that all enforcement proceedings in the nature of levy or foreclosure are effectively stayed. Upon the failure of any Pledgor to so pay or contest such taxes,
charges, Liens or assessments, or upon the failure of any Pledgor to pay any amount pursuant to Section 2(c), the Administrative Agent at its option may pay or contest any of them (the Administrative Agent having the sole right to
determine the legality or validity and the amount necessary to discharge such taxes, charges, Liens or assessments) but shall not have any obligation to make any such payment or contest. All sums so disbursed by the Administrative Agent, including
Attorneys’ Costs, court costs, expenses and other charges related thereto, shall be payable on demand by the applicable Pledgor to the Administrative Agent and shall be additional Secured Obligations secured by the Collateral, and any amounts
not so paid on demand (in addition to other rights and remedies resulting from such nonpayment) shall bear interest from the date of demand until paid in full at the Default Interest rate described in Section 2.12(c) of the Credit
Agreement. 
  

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 (c) Each Pledgor hereby (i) irrevocably authorizes the Administrative
Agent to file (with, or to the extent permitted by applicable law, without the signature of the Pledgor appearing thereon) financing statements (including amendments thereto and continuations and copies thereof) with regard to the Collateral showing
such Pledgor as “debtor” at such time or times and in all filing offices as the Administrative Agent may from time to time determine to be necessary or advisable to perfect or protect the rights of the Administrative Agent and the Secured
Parties hereunder, or otherwise to give effect to the transactions herein contemplated, and (ii) irrevocably ratifies and acknowledges all such actions taken by or on behalf of the Administrative Agent prior to the Applicable Date. 

5. Default. Upon the occurrence and during the continuance of any Event of Default, the Administrative Agent is given full
power and authority, then or at any time thereafter, to sell, assign, deliver or collect the whole or any part of the Collateral, or any substitute therefor or any addition thereto, in one or more sales, with or without any previous demands or
demand of performance or, to the extent permitted by law, notice or advertisement, in such order as the Administrative Agent may elect; and any such sale may be made either at public or private sale at the Administrative Agent’s place of
business or elsewhere, either for cash or upon credit or for future delivery, at such price or prices as the Administrative Agent may reasonably deem fair; and the Administrative Agent or any other Secured Party may be the purchaser of any or all
Collateral so sold and hold the same thereafter in its own right free from any claim of any Pledgor or right of redemption. Demands of performance, advertisements and presence of property and sale and notice of sale are hereby waived to the extent
permissible by law. Any sale hereunder may be conducted by an auctioneer or any officer or agent of the Administrative Agent. Each Pledgor recognizes that the Administrative Agent may be unable to effect a public sale of the Collateral by reason of
certain prohibitions contained in the Securities Act of 1933, as amended (the “Securities Act”), and applicable state law, and may be otherwise delayed or adversely affected in effecting any sale by reason of present or
future restrictions thereon imposed by governmental authorities, and that as a consequence of such prohibitions and restrictions the Administrative Agent may be compelled (i) to resort to one or more private sales to a restricted group of
purchasers who will be obliged to agree, among other things, to acquire the Collateral for their own account, for investment and not with a view to the distribution or resale thereof, or (ii) to seek regulatory approval of any proposed sale or
sales, or (iii) to limit the amount of Collateral sold to any Person or group. Each Pledgor agrees and acknowledges that private sales so made may be at prices and upon terms less favorable to such Pledgor than if such Collateral was sold
either at public sales or at private sales not subject to other regulatory restrictions, and that the Administrative Agent has no obligation to delay the sale of any of the Collateral for the period of time necessary to permit Carrier Enterprise to
register or otherwise qualify the Collateral, even if Carrier Enterprise would agree to register or otherwise qualify such Collateral for public sale under the Securities Act or applicable state law. Each Pledgor further agrees, to the extent
permitted by applicable law, that the use of private sales made under the foregoing circumstances to dispose of the Collateral shall be deemed to be dispositions in a commercially reasonable manner. Each Pledgor hereby acknowledges that a ready
market may not exist for the Pledged Interests if they are not traded on a national securities exchange or quoted on an automated quotation system and agrees and acknowledges that in such event the Pledged Interests may be sold for an amount less
than a pro rata share of the fair market value of Carrier Enterprise’s assets minus its liabilities. In addition to the foregoing, the Secured Parties may exercise such other rights and remedies as may be available under the Loan Documents, at
law (including without limitation the UCC) or in equity. 
 6. Proceeds of Sale. The net cash proceeds resulting
from the collection, liquidation, sale, or other disposition of the Collateral shall be applied first to the expenses (including all Attorneys’ Costs) of retaking, holding, storing, processing and preparing for sale, selling, collecting,
liquidating and the like; second to other fees, indemnities, expenses and other amounts payable to the Administrative Agent, in its capacity as such; third to fees, indemnities and other amounts (other than principal and interest)
payable to the Lenders, ratably among them in proportion to the respective amounts payable to them; fourth, to accrued and unpaid interest on the Loans and other Obligations, ratably among the Lenders in proportion to the respective amounts
payable to them; fifth to unpaid principal of the Loans and Obligations under Secured Hedging Agreements, ratably among the Lenders and the Hedge Banks in proportion to the respective amounts payable to them; and sixth any remainder
shall be paid to the Borrower. Each Pledgor shall be liable to the Administrative Agent, for the benefit of the Secured Parties, and shall pay to the Administrative Agent, for the benefit of the Secured Parties, on demand any deficiency which may
remain after such sale, disposition, collection or liquidation of the Collateral. 
  

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 7. Presentments, Demands and Notices. The Administrative Agent shall not be
under any duty or obligation whatsoever to make or give any presentments, demands for performances, notices of nonperformance, protests, notice of protest or notice of dishonor in connection with any obligations or evidences of indebtedness held
thereby as collateral, or in connection with any obligations or evidences of indebtedness which constitute in whole or in part the Secured Obligations secured hereunder. 

8. Attorney-in-Fact. Each Pledgor hereby appoints the Administrative Agent as the Pledgor’s attorney-in-fact for the
purposes of carrying out the provisions of this Pledge Agreement and taking any action and executing any instrument which the Administrative Agent may deem necessary or advisable to accomplish the purposes hereof, which appointment is irrevocable
and coupled with an interest; provided, that the Administrative Agent shall have and may exercise rights under this power of attorney only upon the occurrence and during the continuance of an Event of Default. Without limiting the generality
of the foregoing, upon the occurrence and during the continuance of an Event of Default, the Administrative Agent shall have the right and power to receive, endorse and collect all checks and other orders for the payment of money made payable to any
Pledgor representing any dividend, interest payment, principal payment or other distribution payable or distributable in respect to the Collateral or any part thereof and to give full discharge for the same. 

9. Reinstatement. The granting of a security interest in the Collateral and the other provisions hereof shall continue to
be effective or be reinstated, as the case may be, if at any time any payment of any of the Secured Obligations is rescinded or must otherwise be returned by any Secured Party or is repaid by any Secured Party in whole or in part in good faith
settlement of a pending or threatened avoidance claim, whether upon the insolvency, bankruptcy or reorganization of any Pledgor or any other Loan Party or otherwise, all as though such payment had not been made. The provisions of this
Section 9 shall survive repayment of all of the Secured Obligations and the termination or expiration of this Pledge Agreement in any manner, including but not limited to termination upon occurrence of the Facility Termination Date.

 10. Waiver by the Pledgors. Each Pledgor waives to the extent permitted by applicable law (a) any right to
require any Secured Party or any other obligee of the Secured Obligations to (i) proceed against any Person or entity, including without limitation any Loan Party, (ii) proceed against or exhaust any Collateral or other collateral for the
Secured Obligations, or (iii) pursue any other remedy in its power, (b) any defense arising by reason of any disability or other defense of any other Person, or by reason of the cessation from any cause whatsoever of the liability of any
other Person or entity, (c) any right of subrogation, (d) any right to enforce any remedy which any Secured Party or any other obligee of the Secured Obligations now has or may hereafter have against any other Person and any benefit of and
any right to participate in any collateral or security whatsoever now or hereafter held by the Administrative Agent for the benefit of the Secured Parties. Each Pledgor authorizes each Secured Party and each other obligee of the Secured Obligations
without notice (except notice required by applicable law) or demand and without affecting its liability hereunder or under the Loan Documents from time to time to: (x) take and hold security, other than the Collateral herein described, for the
payment of such Secured Obligations or any part thereof, and exchange, enforce, waive and release the Collateral herein described or any part thereof or any such other security; and (y) apply such Collateral or other security and direct the
order or manner of sale thereof as such Secured Party or obligee in its discretion may determine. 
  

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 The Administrative Agent may at any time deliver (without representation, recourse or
warranty) the Collateral or any part thereof to the Borrower and the receipt thereof by the Borrower shall be a complete and full acquittance for the Collateral so delivered, and the Administrative Agent shall thereafter be discharged from any
liability or responsibility therefor. 
 11. Dividends and Voting Rights. 

(a) All dividends and other distributions with respect to any of the Pledged Interests shall be subject to the pledge
hereunder, provided, however, that cash dividends paid to a Pledgor as record owner of the Pledged Interests, to the extent permitted by the Credit Agreement to be declared and paid, may be retained by such Pledgor so long as no Event
of Default shall have occurred and be continuing, free from any Liens hereunder. 
 (b) So long as no Event of
Default shall have occurred and be continuing and unless the Administrative Agent has provided written notice to the Borrower, the registration of the Collateral in the name of a Pledgor as record and beneficial owner shall not be changed and such
Pledgor shall be entitled to exercise all voting and other rights and powers pertaining to the Collateral for all purposes not inconsistent with the terms of the Loan Documents. 

(c) Upon the occurrence and during the continuance of any Event of Default, all rights of the Pledgors to receive and
retain cash dividends and other distributions upon the Collateral pursuant to subsection (a) above shall cease and shall thereupon be vested in the Administrative Agent for the benefit of the Secured Parties, and each Pledgor shall
promptly deliver, or shall cause to be promptly delivered, all such thereafter received cash dividends and other distributions with respect to the Pledged Interests to the Administrative Agent (together, if the Administrative Agent shall request and
if such documents have not previously been delivered, with the documents described in Sections 2(c) and 3(c) hereof or other negotiable documents or instruments so distributed) to be held by it hereunder or, at the option of the
Administrative Agent, to be applied to the Secured Obligations. Pending delivery to the Administrative Agent of such property (upon the occurrence and during the continuance of an Event of Default), each Pledgor shall keep such property segregated
from its other property and shall be deemed to hold the same in trust for the benefit of the Secured Parties. 

(d) Upon the occurrence and during the continuance of any Event of Default, at the option of the Administrative Agent, all
rights of each of the Pledgors to exercise the voting or consensual rights and powers which it is authorized to exercise pursuant to subsection (b) above shall cease and the Administrative Agent may thereupon (but shall not be obligated
to), at its request, cause such Collateral to be registered in the name of the Administrative Agent or its nominee or agent for the benefit of the Secured Parties and/or exercise such voting or consensual rights and powers as appertain to ownership
of such Collateral, and to that end each Pledgor hereby appoints the Administrative Agent as its proxy, with full power of substitution, to vote and exercise all other rights as a shareholder with respect to such Pledged Interests hereunder upon the
occurrence and during the continuance of any Event of Default, which proxy is coupled with an interest and is irrevocable until the Facility Termination Date, and each Pledgor hereby agrees to provide such further proxies as the Administrative Agent
may request; provided, however, that the Administrative Agent in its discretion may from time to time refrain from exercising, and shall not be obligated to exercise, any such voting or consensual rights or such proxy. 

12. Continued Powers. Until the Facility Termination Date shall have occurred, the power of sale and other rights, powers
and remedies granted to the Administrative Agent for the benefit of the Secured Parties hereunder shall continue to exist and may be exercised by the Administrative Agent at any time and from time to time irrespective of the fact that any of the
Secured Obligations or any part thereof may have become barred by any statute of limitations or that any part of the liability of any Pledgor may have ceased. 
  

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 13. Other Rights. The rights, powers and remedies given to the Administrative
Agent for the benefit of the Secured Parties by this Pledge Agreement shall be in addition to all rights, powers and remedies given to the Administrative Agent or any Secured Party under any Loan Document or by virtue of any statute or rule of law.
Any forbearance or failure or delay by the Administrative Agent in exercising any right, power or remedy hereunder shall not be deemed to be a waiver of such right, power or remedy, and any single or partial exercise of any right, power or remedy
hereunder shall not preclude the further exercise thereof; and every right, power and remedy of the Secured Parties shall continue in full force and effect until such right, power or remedy is specifically waived in accordance with the terms of the
Credit Agreement. 
 14. Anti-Marshaling Provisions. The right is hereby given by each Pledgor to the
Administrative Agent, for the benefit of the Secured Parties, to make releases (whether in whole or in part) of all or any part of the Collateral agreeable to the Administrative Agent without notice to, or the consent, approval or agreement of other
parties and interests, including junior lienors, which releases shall not impair in any manner the validity of or priority of the Liens and security interests in the remaining Collateral conferred hereunder, nor release any Pledgor from personal
liability for the Secured Obligations. Notwithstanding the existence of any other security interest in the Collateral held by the Administrative Agent, for the benefit of the Secured Parties, the Administrative Agent shall have the right to
determine the order in which any or all of the Collateral shall be subjected to the remedies provided in this Pledge Agreement. Each Pledgor hereby waives any and all right to require the marshaling of assets in connection with the exercise of any
of the remedies permitted by applicable law or provided herein or in any Loan Document. 
 15. Entire Agreement.
The Pledge Documents, together with the Credit Agreement and other Loan Documents, constitute and express the entire understanding between the parties hereto with respect to the subject matter hereof and thereof, and supersede all prior
negotiations, agreements and understandings, inducements, commitments or conditions, express or implied, oral or written, except as herein contained. The express terms of the Pledge Documents control and supersede any course of performance or usage
of the trade inconsistent with any of the terms hereof and thereof. No Pledge Document nor any portion or provision thereof may be changed, altered, modified, supplemented, discharged, canceled, terminated, or amended orally or in any manner other
than as provided in the Credit Agreement. 
 16. Further Assurances. Each Pledgor agrees at its own expense to do
such further acts and things, and to execute and deliver, and cause to be executed and delivered as may be necessary or advisable to give effect thereto, such additional conveyances, assignments, financing statements, control agreements, documents,
certificates, stock powers, agreements and instruments, as the Administrative Agent may at any time reasonably request in connection with the administration or enforcement of the Pledge Documents or related to the Collateral or any part thereof or
in order better to assure and confirm unto the Administrative Agent its rights, powers and remedies for the benefit of the Secured Parties hereunder or thereunder. Each Pledgor hereby consents and agrees that Carrier Enterprise and all other
Persons, shall be entitled to accept the provisions hereof and of the other Pledge Documents as conclusive evidence of the right of the Administrative Agent, on behalf of the Secured Parties, to exercise its rights, privileges, and remedies
hereunder and thereunder with respect to the Collateral, notwithstanding any other notice or direction to the contrary heretofore or hereafter given by any Pledgor or any other Person to Carrier Enterprise or any of such other Persons. 

 

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 17. Binding Agreement; Assignment. The Pledge Documents, and the terms,
covenants and conditions hereof and thereof, shall be binding upon and inure to the benefit of the parties hereto, and to their respective successors and assigns, except that no Pledgor shall be permitted to assign any Pledge Document or any
interest herein or therein or in the Collateral, or any part thereof or interest therein, or otherwise pledge, encumber or grant any option with respect to the Collateral, or any part thereof, or any cash or property held by the Administrative Agent
as Collateral under this Pledge Agreement. Without limiting the generality of the foregoing sentence of this Section 17, any Lender may assign to one or more Persons, or grant to one or more Persons participations in or to, all or any
part of its rights and obligations under the Credit Agreement (to the extent permitted by the Credit Agreement); and to the extent of any such assignment or participation such other Person shall, to the fullest extent permitted by law, thereupon
become vested with all the benefits in respect thereof granted to such Lender herein or otherwise, subject however, to the provisions of the Credit Agreement, including Article IX thereof (concerning the Administrative Agent) and
Section 10.4 thereof (concerning assignments and participations). All references herein to the Administrative Agent and to the Secured Parties shall include any successor thereof or permitted assignee, and any other obligees from time to
time of the Secured Obligations. 
 18. Secured Hedging Agreements. No Secured Party (other than the
Administrative Agent) that obtains the benefit of this Pledge Agreement shall have any right to notice of any action or to consent to, direct or object to any action hereunder or otherwise in respect of the Collateral (including the release or
impairment of any Collateral) other than in its capacity as a Lender and, in such case, only to the extent expressly provided in the Loan Documents. Notwithstanding any other provision of this Pledge Agreement to the contrary, the Administrative
Agent shall only be required to verify the payment of, or that other satisfactory arrangement have been made with respect to, the Secured Obligations arising under Secured Hedging Agreements to the extent the Administrative Agent has received
written notice of such Obligations, together with such supporting documentation as it may request, from the applicable Hedge Bank. Each Secured Party not a party to the Credit Agreement that obtains the benefit of this Pledge Agreement shall be
deemed to have acknowledged and accepted the appointment of the Administrative Agent pursuant to the terms of the Credit Agreement, and that with respect to the actions and omissions of the Administrative Agent hereunder or otherwise relating hereto
that do or may affect such Secured Party, the Administrative Agent and each of its Affiliates shall be entitled to all the rights, benefits and immunities conferred under Article IX of the Credit Agreement. 

19. Severability. The provisions of this Pledge Agreement are independent of and separable from each other. If any
provision hereof shall for any reason be held invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of any other provision hereof, but this Pledge Agreement shall be construed as if such
invalid or unenforceable provision had never been contained herein. 
 20. Counterparts. This Pledge Agreement may
be executed in any number of counterparts each of which when so executed and delivered shall be deemed an original, and it shall not be necessary in making proof of this Pledge Agreement to produce or account for more than one such counterpart
executed by the Pledgor against whom enforcement is sought. Without limiting the foregoing provisions of this Section 20, the provisions of Section 10.8 of the Credit Agreement shall be applicable to this Pledge Agreement.

 21. Termination. Subject to the provisions of Section 8, this Pledge Agreement and each other
Pledge Document, and all obligations of the Pledgors hereunder and thereunder (excluding those obligations and liabilities that expressly survive such termination) shall terminate without delivery of any instrument or performance of any act by any
party on the Facility Termination Date. Upon such termination of the Pledge Documents, the Administrative Agent shall, at the sole expense of the Pledgors, promptly deliver to the Pledgors the certificates evidencing its shares of Pledged Interests
(along with any stock powers delivered in connection therewith and any other property received as a dividend or distribution or otherwise in respect of such Pledged Interests to the extent then held by the Administrative Agent as additional
Collateral hereunder), together with any cash then constituting the Collateral not then sold or otherwise disposed of in accordance with the provisions hereof, and take such further actions at the reasonable request of the Pledgors as may be
necessary to effect the same to otherwise release any interests of the Administrative Agent in the Collateral. 
  

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 22. Additional Interests. If any Pledgor shall at any time acquire or hold any
additional Pledged Interests (any such shares being referred to herein as the “Additional Interests”), such Pledgor shall deliver to the Administrative Agent for the benefit of the Secured Parties (i) a Pledge Agreement
Supplement in the form of Exhibit A hereto with respect to such Additional Interests duly completed and executed by such Pledgor, accompanied by the schedule of Additional Interests referred to therein, appropriately completed with
information relating to the Pledgor executing such Pledge Agreement Supplement and its property and (ii) any other document required in connection with such Additional Interests as described in Section 3(c). Each of the applicable
Schedules attached hereto shall be deemed amended and supplemented without further action by such information reflected on the Schedule to each Pledge Agreement Supplement. Each Pledgor shall comply with the requirements of this
Section 22 concurrently with the acquisition of any such Additional Interests or, in the case of Additional Interests to which Section 5.10(b) of the Credit Agreement applies, within the time period specified in such
Section or elsewhere in the Credit Agreement with respect to such Additional Interests; provided, however, that the failure to comply with the provisions of this Section 22 shall not impair the Lien on Additional
Interests conferred hereunder. 
 23. Notices. Any notice required or permitted hereunder shall be given
(a) with respect to each Pledgor, at the address of the Borrower indicated in Section 10.1 of the Credit Agreement, and (b) with respect to the Administrative Agent or a Lender, at the Administrative Agent’s address
indicated in Section 10.1 of the Credit Agreement. All such addresses may be modified, and all such notices shall be given and shall be effective, as provided in Section 10.1 of the Credit Agreement for the giving and
effectiveness of notices and modifications of addresses thereunder. 
 24. Joinder. Each Person who shall at any
time execute and deliver to the Administrative Agent a Pledge Joinder Agreement substantially in the form attached as Exhibit B hereto shall thereupon irrevocably, absolutely and unconditionally become a party hereto and obligated hereunder
as a Pledgor and shall have thereupon pursuant to Section 2 hereof granted a security interest in and collaterally assigned and pledged to the Administrative Agent for the benefit of the Secured Parties all Pledged Interests which it has
at its Applicable Date or thereafter acquires any interest or the power to transfer, and all references herein and in the other Loan Documents to the Pledgors or to the parties to this Pledge Agreement shall be deemed to include such Person as a
Pledgor hereunder. Each Pledge Joinder Agreement shall be accompanied by the Supplemental Schedules referred to therein, appropriately completed with information relating to the Pledgor executing such Pledge Joinder Agreement and its property. Each
of the applicable Schedules attached hereto shall be deemed amended and supplemented without further action by such information reflected on the Supplemental Schedules. 

25. Rules of Interpretation. The rules of interpretation contained in Section 1.5 of the Credit Agreement shall
be applicable to each Pledge Document and are hereby incorporated by reference. All representations and warranties contained herein shall survive the execution delivery of the Loan Documents and the making of the Loans, the issuance of the Letters
of Credit and any other credit extensions secured hereby. 
  

 11 

 26. Governing Law; Waivers. 

(a) THIS PLEDGE AGREEMENT AND EACH PLEDGE JOINDER AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
LAWS OF THE STATE OF NORTH CAROLINA APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE. 

(b) EACH PLEDGOR HEREBY EXPRESSLY AND IRREVOCABLY AGREES AND CONSENTS THAT ANY SUIT, ACTION OR PROCEEDING ARISING OUT
OF OR RELATING TO THIS PLEDGE AGREEMENT OR ANY PLEDGE JOINDER AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREIN OR THEREIN MAY BE INSTITUTED IN ANY STATE OR FEDERAL COURT SITTING IN THE COUNTY OF MECKLENBURG, STATE OF NORTH CAROLINA, UNITED STATES
OF AMERICA AND, BY THE EXECUTION AND DELIVERY OF THIS PLEDGE AGREEMENT OR A PLEDGE JOINDER AGREEMENT, EXPRESSLY WAIVES ANY OBJECTION THAT IT MAY HAVE NOW OR HEREAFTER TO THE LAYING OF THE VENUE OR TO THE JURISDICTION OF ANY SUCH SUIT, ACTION OR
PROCEEDING, AND IRREVOCABLY SUBMITS GENERALLY AND UNCONDITIONALLY TO THE JURISDICTION OF ANY SUCH COURT IN ANY SUCH SUIT, ACTION OR PROCEEDING. 

(c) EACH PLEDGOR AGREES THAT SERVICE OF PROCESS MAY BE MADE BY PERSONAL SERVICE OF A COPY OF THE SUMMONS AND COMPLAINT
OR OTHER LEGAL PROCESS IN ANY SUCH SUIT, ACTION OR PROCEEDING, OR BY REGISTERED OR CERTIFIED MAIL (POSTAGE PREPAID) TO THE ADDRESS OF SUCH PLEDGOR PROVIDED IN SECTION 23 OR BY ANY OTHER METHOD OF SERVICE PROVIDED FOR UNDER THE APPLICABLE LAWS
IN EFFECT IN THE STATE OF NORTH CAROLINA. 
 (d) NOTHING CONTAINED IN SUBSECTIONS (b) OR
(c) HEREOF SHALL PRECLUDE THE ADMINISTRATIVE AGENT FROM BRINGING ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS PLEDGE AGREEMENT OR ANY PLEDGE JOINDER AGREEMENT OR THE OTHER LOAN DOCUMENTS IN THE COURTS OF ANY PLACE
WHERE ANY PLEDGOR OR ANY OF SUCH PLEDGOR’S PROPERTY OR ASSETS MAY BE FOUND OR LOCATED. TO THE EXTENT PERMITTED BY THE APPLICABLE LAWS OF ANY SUCH JURISDICTION, EACH PLEDGOR HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY SUCH COURT AND
EXPRESSLY WAIVES, IN RESPECT OF ANY SUCH SUIT, ACTION OR PROCEEDING, OBJECTION TO THE EXERCISE OF JURISDICTION OVER IT AND ITS PROPERTY BY ANY SUCH OTHER COURT OR COURTS WHICH NOW OR HEREAFTER, BY REASON OF ITS PRESENT OR FUTURE DOMICILE, OR
OTHERWISE, MAY BE AVAILABLE UNDER APPLICABLE LAW. 
 (e) IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND
ANY RIGHTS OR REMEDIES UNDER OR RELATED TO THIS PLEDGE AGREEMENT OR ANY PLEDGE JOINDER AGREEMENT OR ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR THAT MAY IN THE FUTURE BE DELIVERED IN CONNECTION WITH THE FOREGOING, EACH PARTY HEREBY
AGREES, TO THE EXTENT PERMITTED BY APPLICABLE LAW, THAT ANY SUCH ACTION, SUIT OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY AND HEREBY WAIVES, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT SUCH PERSON MAY HAVE TO TRIAL BY
JURY IN ANY SUCH ACTION, SUIT OR PROCEEDING. 
  

 12 

 (f) EACH PLEDGOR HEREBY EXPRESSLY WAIVES ANY OBJECTION IT MAY HAVE THAT
ANY COURT TO WHOSE JURISDICTION IT HAS SUBMITTED PURSUANT TO THE TERMS HEREOF IS AN INCONVENIENT FORUM. 
 IN WITNESS
WHEREOF, the parties have duly executed this Pledge Agreement on the day and year first written above. 
  

			
	PLEDGORS:
	
	COMFORT PRODUCTS DISTRIBUTING LLC
		
	By:	 	  

	Name:	 	Ana M. Menendez
	Title:	 	
	
	WATSCO HOLDINGS II, INC.
		
	By:	 	  

	Name:	 	Ana M. Menendez
	Title:	 	

  

 13 

			
	 ADMINISTRATIVE AGENT:

	
	BANK OF AMERICA, N.A., as Administrative Agent
		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

 

 14 

 SCHEDULE I 

 

																		
	 Name of Pledgor
	 	 Name,
Jurisdiction

of Formation
and Type of
Entity of
pledged
Subsidiary
	 	 Class or Type
of Pledged
Interest
	 	Total Amount
of Class or
Type of
Pledged
Interests
Authorized	 	Total Amount
of Class or
Type
Outstanding	 	Total Amount
Pledged	 	Certificate
Number
(if 
applicable)	 	Par Value
(if applicable)	 	Name of
Transfer
Agent (if any)
	Comfort Products Distributing LLC	 	Carrier Enterprise, LLC, a Delaware limited liability company	 	Membership Interests	 		 		 	62,500	 	004	 	$	1,000	 	
	Watsco Holdings II, Inc.	 	Carrier Enterprise, LLC, a Delaware limited liability company	 	Membership Interests	 		 		 	147,000	 	005	 	$	1,000	 	

  

 15 

 SCHEDULE II 

 

									
	 Name and Address of Pledgor
	 	 Type of Person
	 	Jurisdiction of Formation
of Pledgor
	 	Jurisdiction of Formation
Identification
Number	 	 Address of Chief

Executive Office

	Comfort Products Distributing LLC	 	limited liability company	 	Delaware	 	3606082	 	 13202 “I” Street

Omaha, NE 68137

	Watsco Holdings II, Inc.	 	corporation	 	Delaware	 	4701671	 	 2665 S. Bayshore Drive

Suite 901
 Coconut
Grove, FL 33133

  

 16 

 EXHIBIT A 

PLEDGE AGREEMENT SUPPLEMENT 

THIS PLEDGE AGREEMENT SUPPLEMENT dated as of             ,
20     (this “Pledge Agreement Supplement”), is made by
                                         
       , a                                 
(the “Pledgor”), in favor of BANK OF AMERICA, N.A., in its capacity as Administrative Agent (the “Administrative Agent”) for the Secured Parties (as defined in the Pledge Agreement referenced below;
all capitalized terms used but not defined herein shall have the meanings given to such terms in such Pledge Agreement). 

RECITALS: 

A. The Pledgor is party to that certain Securities Pledge Agreement dated as of July 1, 2009 (as in effect on the date hereof, the
“Pledge Agreement”), between the Pledgor (among others), or to which the Pledgor has been joined as a party pursuant to a Pledge Joinder Agreement, and the Administrative Agent. 

B. The Pledgor has acquired rights in the Pledged Interests listed on Annex A to this Pledge Agreement Supplement (the
“Additional Interests”) and desires to pledge, and evidence its prior pledge, to the Administrative Agent for the benefit of the Secured Parties all of the Additional Interests in accordance with the terms of the Credit
Agreement and the Pledge Agreement. 
 In order to induce the Secured Parties to from time to time make and maintain extensions
of credit under the Credit Agreement and Secured Hedging Agreements, the Pledgor hereby agrees as follows: 
 1.
Affirmations. The Pledgor hereby reaffirms and acknowledges the pledge and collateral assignment to, and the grant of security interest in, the Additional Interests contained in the Pledge Agreement and pledges and collaterally assigns to
the Administrative Agent for the benefit of the Secured Parties, and grants to the Administrative Agent for the benefit of the Secured Parties a first priority lien and security interest in, the Additional Interests and all of the following:

 (a) all money, securities, security entitlements and other investment property, dividends, rights, general
intangibles and other property at any time and from time to time (x) declared or distributed in respect of or in exchange for or on conversion of any or all of the Additional Interests or (y) by its or their terms exchangeable or
exercisable for or convertible into any Additional Interest or other Pledged Interest; 
 (b) all other property
of whatever character or description, including money, securities, security entitlements and other investment property, and general intangibles hereafter delivered to the Administrative Agent in substitution for or as an addition to any of the
foregoing; 
 (c) all securities accounts to which may at any time be credited any or all of the foregoing or any
proceeds thereof and all certificates and instruments representing or evidencing any of the foregoing or any proceeds thereof; and 

(d) all proceeds of any of the foregoing. 
  

 1 

 The Pledgor hereby acknowledges, agrees and confirms by its execution of this Pledge Agreement Supplement
that the Additional Interests constitute “Pledged Interests” under and are subject to the Pledge Agreement, and the items of property referred to in clauses (a) through (d) above (the “Additional
Collateral”) shall collectively constitute “Collateral” under and are subject to the Pledge Agreement. Each of the representations and warranties with respect to Pledged Interests and Collateral contained in the Pledge
Agreement is hereby made by the Pledgor with respect to the Additional Interests and the Additional Collateral, respectively. The Pledgor further represents and warrants that Annex A attached to this Pledge Agreement Supplement contains a
true, correct and complete description of the Additional Interests, and that all other documents required to be furnished to the Administrative Agent pursuant to Section 3(c) of the Pledge Agreement in connection with the Additional
Collateral have been delivered or are being delivered simultaneously herewith to the Administrative Agent. The Pledgor further acknowledges that Schedule I to the Pledge Agreement shall be deemed, as to it, to be supplemented as of the date
hereof to include the Additional Interests as described on Annex A to this Pledge Agreement Supplement. 
 2.
Governing Law; Venue; Waiver of Jury Trial. The provisions of Section 26 of the Pledge Agreement are hereby incorporated by reference as if fully set forth herein. 

IN WITNESS WHEREOF, the Pledgor has caused this Pledge Agreement Supplement to be duly executed by its authorized officer as of
the day and year first above written. 
  

			
	PLEDGOR:
	
	  

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

 

 2 

 ANNEX A 

(to Pledge Agreement Supplement of
                         dated
                    ) 

Additional Interests 
  

																	
	 Name of
Pledgor
	 	 Name,
Jurisdiction of
Formation
and Type
of
Entity of
pledged
Subsidiary
	 	 Class or Type
of
Additional
Interest
	 	 Total Amount
of Class or
Type
of
Additional
Interests
Authorized
	 	 Total Amount
of Class
or
Type
Outstanding
	 	 Total Amount
Pledged
	 	 Certificate
Number

(if applicable)
	 	 Par Value

(if applicable)
	 	 Name of
Transfer

Agent (if any)

		 		 		 		 		 		 		 		 	
		 		 		 		 		 		 		 		 	
		 		 		 		 		 		 		 		 	
		 		 		 		 		 		 		 		 	

  

 1 

 EXHIBIT B 

PLEDGE JOINDER AGREEMENT 

THIS PLEDGE JOINDER AGREEMENT dated as of             ,
20     (this “Pledge Joinder Agreement”), is made by
                                        
        , a
                                 (the “Joining Pledgor”),
in favor of BANK OF AMERICA, N.A., in its capacity as Administrative Agent (the “Administrative Agent”) for the Secured Parties (as defined in the Pledge Agreement referenced below; all capitalized terms used but not
defined herein shall have the meanings given to such terms in such Pledge Agreement). 
 RECITALS: 

A. Certain Subsidiaries of Watsco, Inc., a Florida corporation (the “Borrower”) and the Administrative Agent, are
party to a Securities Pledge Agreement dated as of July 1, 2009 (as in effect on the date hereof, the “Pledge Agreement”). 

B. The Joining Pledgor is a Subsidiary of the Borrower and is required by the terms of the Credit Agreement to be joined as a party to
the Pledge Agreement as a Pledgor. 
 C. The Joining Pledgor will materially benefit directly and indirectly from the making and
maintenance of the extensions of credit made from time to time under the Credit Agreement and Secured Hedging Agreements. 
 In
order to induce the Secured Parties to from time to time make and maintain extensions of credit under the Credit Agreement and Secured Hedging Agreements, the Joining Pledgor hereby agrees as follows: 

1. Joinder. The Subsidiary hereby irrevocably, absolutely and unconditionally becomes a party to the Pledge Agreement as a
Pledgor and bound by all the terms, conditions, obligations, liabilities and undertakings of each Pledgor or to which each Pledgor is subject thereunder, including without limitation the grant pursuant to Section 2 of the Pledge
Agreement of a security interest to the Administrative Agent for the benefit of the Secured Parties in, and collateral assignment and pledge to the Administrative Agent of, the Pledged Interests and other property constituting Collateral of such
Pledgor or in which such Pledgor has or may have or acquire an interest or the power to transfer rights therein, whether now owned or existing or hereafter created, acquired or arising and wheresoever located, as security for the payment and
performance of the Secured Obligations, all with the same force and effect as if the Joining Pledgor were a signatory to the Pledge Agreement. 

2. Affirmations. The Joining Pledgor hereby acknowledges and affirms as of the date hereof with respect to itself, its
properties and its affairs each of the waivers, representations, warranties, acknowledgements and certifications applicable to any Pledgor contained in the Pledge Agreement. 

3. Supplemental Schedules. Attached to this Pledge Joinder Agreement are duly completed schedules (the
“Supplemental Schedules”) supplementing as thereon indicated the respective Schedules to the Pledge Agreement. The Joining Pledgor represents and warrants that the information contained on each of the Supplemental Schedules
with respect to such Joining Pledgor and its properties and affairs is true, complete and accurate as of its Applicable Date. 
  

 1 

 4. Severability. The provisions of this Pledge Joinder Agreement are
independent of and severable from each other. If any provision hereof shall for any reason be held invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of any other provision hereof, but this
Pledge Joinder Agreement shall be construed as if such invalid or unenforceable provision had never been contained herein. 

5. Delivery. The Joining Pledgor hereby irrevocably waives notice of acceptance of this Pledge Joinder Agreement and
acknowledges that the Secured Obligations are and shall be deemed to be incurred, and credit extensions under the Loan Documents and Secured Hedging Agreements made and maintained, in reliance on this Pledge Joinder Agreement and the Pledgor’s
joinder as a party to the Pledge Agreement as herein provided. 
 6. Governing Law; Venue; Waiver of Jury Trial.
The provisions of Section 26 of the Pledge Agreement are hereby incorporated by reference as if fully set forth herein. 

[Signature page follows.] 
  

 2 

 IN WITNESS WHEREOF, the Joining Pledgor has duly executed and delivered this Pledge
Joinder Agreement as of the day and year first written above. 
  

			
	JOINING PLEDGOR:
	
	  

		
	By:	 	  

	Name:	 	  

	Title: 	 	  

 

 3 

 SUPPLEMENTAL 

SCHEDULE I 
  

																	
	 Name of

Pledgor
	 	 Name,
Jurisdiction
of Formation
and Type
of
Entity of
pledged
Subsidiary
	 	 Class or Type
of
Pledged
Interest
	 	 Total Amount
of Class or
Type
of
Pledged
Interests
Authorized
	 	 Total Amount
of Class or
Type
Outstanding

	 	 Total Amount
Pledged
	 	
Certificate
Number
(if applicable)
	 	 Par Value
(if applicable)
	 	 Name
of
Transfer
Agent (if any)

		 		 		 		 		 		 		 		 	
		 		 		 		 		 		 		 		 	
		 		 		 		 		 		 		 		 	
		 		 		 		 		 		 		 		 	
		 		 		 		 		 		 		 		 	

 Delivered Pursuant to Pledge Joinder Agreement of:
                                         
                         

Applicable Date:
                        , 20     

 

 4 

 SUPPLEMENTAL 

SCHEDULE II 
  

									
	 Name and Address of Pledgor
	  	 Type of Person
	  	 Jurisdiction of Formation

of Pledgor
	  	 Jurisdiction of Formation

Identification Number
	  	 Address of Chief

Executive Office

		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	

 Delivered Pursuant to Pledge Joinder Agreement of:
                                         
                        

Applicable Date:
                        , 20     

 

 5Credit Agreement

 Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the
information subject to the confidentiality request. Omissions are designated as [***]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission. 

Exhibit 10.1 
  

 
  

CREDIT AGREEMENT 

by and among 

CARRIER ENTERPRISE, LLC 

as Borrower, 

THE LENDERS THAT ARE SIGNATORIES HERETO 

as the Lenders, 

WELLS FARGO BANK, N. A. 

as Joint Lead Arranger, Joint Bookrunner and Administrative Agent 

J.P. MORGAN SECURITIES, INC. 

as Joint Lead Arranger and Joint Bookrunner 

and 

J.P. MORGAN CHASE BANK, N.A. 

as Syndication Agent 

Dated as of July 1, 2009 
  

 
  

 TABLE OF CONTENTS 

 

							
	 1
	 	DEFINITIONS AND CONSTRUCTION.	  	1
				
		 	 1.1
	 	Definitions	  	1
				
		 	 1.2
	 	Accounting Terms	  	1
				
		 	 1.3
	 	Code	  	1
				
		 	 1.4
	 	Construction	  	1
				
		 	 1.5
	 	Schedules and Exhibits	  	2
			
	 2
	 	 LOAN AND TERMS OF PAYMENT.
	  	2
				
		 	 2.1
	 	Revolver Advances	  	2
				
		 	 2.2
	 	Increases in Commitment	  	3
				
		 	 2.3
	 	Borrowing Procedures and Settlements	  	3
				
		 	 2.4
	 	Payments; Reductions of Commitments; Prepayments	  	9
				
		 	 2.5
	 	Overadvances	  	11
				
		 	 2.6
	 	Interest Rates and Letter of Credit Fee	  	11
				
		 	 2.7
	 	Crediting Payments	  	13
				
		 	 2.8
	 	Designated Account	  	13
				
		 	 2.9
	 	Maintenance of Loan Account; Statements of Obligations	  	13
				
		 	 2.10
	 	Fees	  	13
				
		 	 2.11
	 	Letters of Credit	  	14
				
		 	 2.12
	 	LIBOR Option	  	17
				
		 	 2.13
	 	Capital Requirements	  	19
			
	 3
	 	 CONDITIONS; TERM OF AGREEMENT.
	  	20
				
		 	 3.1
	 	Conditions Precedent to the Initial Extension of Credit	  	20
				
		 	 3.2
	 	Conditions Precedent to all Extensions of Credit	  	20
				
		 	 3.3
	 	Maturity	  	20
				
		 	 3.4
	 	Effect of Maturity/Termination	  	20
				
		 	 3.5
	 	Conditions Subsequent	  	21
				
		 	 3.6
	 	Early Termination by Borrower	  	21
			
	 4
	 	 REPRESENTATIONS AND WARRANTIES.
	  	21
				
		 	 4.1
	 	Due Organization and Qualification; Subsidiaries	  	21
				
		 	 4.2
	 	Due Authorization; No Conflict	  	22
				
		 	 4.3
	 	Governmental Consents	  	23
				
		 	 4.4
	 	Binding Obligations; Perfected Liens	  	23
				
		 	 4.5
	 	Title to Assets; No Encumbrances	  	23
				
		 	 4.6
	 	Jurisdiction of Organization; Location of Chief Executive Office; Organizational Identification Number; Commercial Tort Claims	  	23

  

 -i- 

							
		 	 4.7
	 	Litigation	  	24
				
		 	 4.8
	 	Compliance with Laws	  	24
				
		 	 4.9
	 	Financial Statements	  	24
				
		 	 4.10
	 	Fraudulent Transfer	  	24
				
		 	 4.11
	 	Employee Benefits	  	25
				
		 	 4.12
	 	Environmental Condition	  	25
				
		 	 4.13
	 	Intellectual Property	  	25
				
		 	 4.14
	 	Leases	  	25
				
		 	 4.15
	 	Deposit Accounts and Securities Accounts	  	25
				
		 	 4.16
	 	Complete Disclosure	  	25
				
		 	 4.17
	 	Material Contracts	  	26
				
		 	 4.18
	 	Patriot Act	  	26
				
		 	 4.19
	 	Indebtedness	  	26
				
		 	 4.20
	 	Payment of Taxes	  	26
				
		 	 4.21
	 	Margin Stock	  	27
				
		 	 4.22
	 	Governmental Regulation	  	27
				
		 	 4.23
	 	OFAC	  	27
				
		 	 4.24
	 	Employee and Labor Matters	  	27
				
		 	 4.25
	 	Joint Venture Documents	  	27
			
	 5
	 	 AFFIRMATIVE COVENANTS.
	  	28
				
		 	 5.1
	 	Financial Statements, Reports, Certificates	  	28
				
		 	 5.2
	 	Collateral Reporting	  	28
				
		 	 5.3
	 	Existence	  	28
				
		 	 5.4
	 	Maintenance of Properties	  	28
				
		 	 5.5
	 	Taxes	  	28
				
		 	 5.6
	 	Insurance	  	28
				
		 	 5.7
	 	Inspection	  	29
				
		 	 5.8
	 	Compliance with Laws	  	29
				
		 	 5.9
	 	Environmental	  	29
				
		 	 5.10
	 	Disclosure Updates	  	30
				
		 	 5.11
	 	Formation of Subsidiaries	  	30
				
		 	 5.12
	 	Further Assurances	  	30
				
		 	 5.13
	 	Lender Meetings	  	31
				
		 	 5.14
	 	Material Contracts	  	31
				
		 	 5.15
	 	Location of Inventory and Equipment	  	31

  

 -ii- 

							
			
	 6
	 	 NEGATIVE COVENANTS.
	  	31
		 	 6.1
	 	Indebtedness	  	31
				
		 	 6.2
	 	Liens	  	31
				
		 	 6.3
	 	Restrictions on Fundamental Changes	  	32
				
		 	 6.4
	 	Disposal of Assets	  	32
				
		 	 6.5
	 	Change of Name	  	32
				
		 	 6.6
	 	Nature of Business	  	32
				
		 	 6.7
	 	Prepayments and Amendments	  	32
				
		 	 6.8
	 	Change of Control	  	33
				
		 	 6.9
	 	Restricted Distributions	  	33
				
		 	 6.10
	 	Accounting Methods	  	33
				
		 	 6.11
	 	Investments	  	33
				
		 	 6.12
	 	Transactions with Affiliates	  	33
				
		 	 6.13
	 	Use of Proceeds	  	34
			
	 7
	 	 FINANCIAL COVENANTS.
	  	34
			
	 8
	 	 EVENTS OF DEFAULT.
	  	34
			
	 9
	 	 RIGHTS AND REMEDIES.
	  	36
				
		 	 9.1
	 	Rights and Remedies	  	36
				
		 	 9.2
	 	Remedies Cumulative	  	37
			
	 10
	 	 WAIVERS; INDEMNIFICATION.
	  	37
				
		 	 10.1
	 	Demand; Protest; etc	  	37
				
		 	 10.2
	 	The Lender Group’s Liability for Collateral	  	37
				
		 	 10.3
	 	Indemnification	  	37
			
	 11
	 	 NOTICES.
	  	38
			
	 12
	 	 CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER.
	  	39
			
	 13
	 	 ASSIGNMENTS AND PARTICIPATIONS; SUCCESSORS.
	  	40
				
		 	 13.1
	 	Assignments and Participations	  	40
				
		 	 13.2
	 	Successors	  	42
			
	 14
	 	 AMENDMENTS; WAIVERS.
	  	42
				
		 	 14.1
	 	Amendments and Waivers	  	42
				
		 	 14.2
	 	Replacement of Certain Lenders	  	44
				
		 	 14.3
	 	No Waivers; Cumulative Remedies	  	44
			
	 15
	 	 AGENT; THE LENDER GROUP.
	  	45
				
		 	 15.1
	 	Appointment and Authorization of Administrative Agent	  	45
				
		 	 15.2
	 	Delegation of Duties	  	45
				
		 	 15.3
	 	Liability of Administrative Agent	  	45
				
		 	 15.4
	 	Reliance by Administrative Agent	  	46

  

 -iii- 

							
		 	 15.5
	 	Notice of Default or Event of Default	  	46
				
		 	 15.6
	 	Credit Decision	  	46
				
		 	 15.7
	 	Costs and Expenses; Indemnification	  	47
				
		 	 15.8
	 	Administrative Agent in Individual Capacity	  	48
				
		 	 15.9
	 	Successor Administrative Agent	  	48
				
		 	 15.10
	 	Lender in Individual Capacity	  	48
				
		 	 15.11
	 	Collateral Matters	  	49
				
		 	 15.12
	 	Restrictions on Actions by Lenders; Sharing of Payments	  	50
				
		 	 15.13
	 	Agency for Perfection	  	50
				
		 	 15.14
	 	Payments by Administrative Agent to the Lenders	  	50
				
		 	 15.15
	 	Concerning the Collateral and Related Loan Documents	  	50
				
		 	 15.16
	 	Audits and Examination Reports; Confidentiality; Disclaimers by Lenders; Other Reports and Information	  	51
				
		 	 15.17
	 	Several Obligations; No Liability	  	52
				
		 	 15.18
	 	Syndication Agent and Arrangers	  	52
			
	 16
	 	 WITHHOLDING TAXES.
	  	52
			
	 17
	 	 GENERAL PROVISIONS.
	  	55
				
		 	 17.1
	 	Effectiveness	  	55
				
		 	 17.2
	 	Section Headings	  	55
				
		 	 17.3
	 	Interpretation	  	55
				
		 	 17.4
	 	Severability of Provisions	  	55
				
		 	 17.5
	 	Bank Products and Bank Product Providers	  	55
				
		 	 17.6
	 	Debtor-Creditor Relationship	  	55
				
		 	 17.7
	 	Counterparts; Electronic Execution	  	56
				
		 	 17.8
	 	Revival and Reinstatement of Obligations	  	56
				
		 	 17.9
	 	Confidentiality	  	56
				
		 	 17.10
	 	Lender Group Expenses	  	57
				
		 	 17.11
	 	USA PATRIOT Act	  	57
				
		 	 17.12
	 	Integration	  	57
				
		 	 17.13
	 	Conversion of Facility	  	57
				
		 	 17.14
	 	Modifications regarding Fee Letter	  	57

  

 -iv- 

 EXHIBITS AND SCHEDULES 

 

			
	Exhibit A-1	  	Form of Assignment and Acceptance
	Exhibit B-1	  	 Form of Borrowing Base Certificate

	Exhibit C-1	  	 Form of Compliance Certificate

	Exhibit L-1	  	 Form of LIBOR Notice

		
	Schedule A-1	  	 Administrative Agent’s Account

	Schedule A-2	  	 Authorized Persons

	Schedule B-1	  	 Initial Accounting Changes

	Schedule C-1	  	 Commitments

	Schedule D-1	  	 Designated Account

	Schedule P-1	  	 Permitted Investments

	Schedule P-2	  	 Permitted Liens

	Schedule 1.1	  	 Definitions

	Schedule 3.1	  	 Conditions Precedent

	Schedule 3.5	  	 Conditions Subsequent

	Schedule 4.1(b)	  	 Capitalization of Borrower

	Schedule 4.1(c)	  	 Capitalization of Borrower’s Subsidiaries

	Schedule 4.6(a)	  	 States of Organization

	Schedule 4.6(b)	  	 Chief Executive Offices

	Schedule 4.6(c)	  	 Organizational Identification Numbers

	Schedule 4.7(b)	  	 Litigation

	Schedule 4.12	  	 Environmental Matters

	Schedule 4.13	  	 Intellectual Property

	Schedule 4.15	  	 Deposit Accounts and Securities Accounts

	Schedule 4.17	  	 Material Contracts

	Schedule 4.19	  	 Permitted Indebtedness

	Schedule 5.1	  	 Financial Statements, Reports, Certificates

	Schedule 5.2	  	 Collateral Reporting

	Schedule 11	  	 Notice Address for Lenders

 

 -5- 

 CREDIT AGREEMENT 

THIS CREDIT AGREEMENT (this “Agreement”), is entered into as of July 1, 2009, by and among the lenders
identified on the signature pages hereof (such lenders, together with their respective successors and permitted assigns, are referred to hereinafter each individually as a “Lender” and collectively as the
“Lenders”), WELLS FARGO BANK, N.A., a national banking association, and J.P. MORGAN SECURITIES, INC., as joint lead arrangers and joint bookrunners (in such capacity, together with their successors and assigns in such
capacity, collectively, the “Arrangers” and individually an “Arranger”), WELLS FARGO BANK, N.A., a national banking association, as administrative agent for the Lenders (in such capacity, together with its
successors and assigns in such capacity, “Administrative Agent”), J.P. MORGAN CHASE BANK, N.A., a national banking association, as syndication agent (in such capacity, together with its successors and assigns in such
capacity, “Syndication Agent”; together with Administrative Agent, collectively, the “Agents” and individually an “Agent”), and CARRIER ENTERPRISE, LLC, a Delaware limited liability company
formerly known as Carrier Sales and Distribution, LLC (“Borrower”). 
 The parties agree as follows:

  

	1.	DEFINITIONS AND CONSTRUCTION. 

1.1 Definitions. Capitalized terms used in this Agreement shall have the meanings specified therefor on Schedule 1.1.

 1.2 Accounting Terms. All accounting terms not specifically defined herein shall be construed in accordance
with GAAP; provided, however, that if Borrower notifies Administrative Agent that Borrower requests an amendment to any covenant in Section 7 hereof to eliminate the effect of any Accounting Change occurring after the
Closing Date or in the application thereof on the operation of such covenant (or if Administrative Agent notifies Borrower that the Required Lenders request an amendment to any covenant in Section 7 hereof for such purpose), regardless
of whether any such notice is given before or after such Accounting Change or in the application thereof, then Borrower’s compliance with such covenant shall be determined on the basis of GAAP in effect immediately before the relevant
Accounting Change became effective, until either such notice is withdrawn or such covenant is amended in a manner satisfactory to Borrower and the Required Lenders. When used herein, the term “financial statements” shall include the notes
and schedules thereto. Whenever the term “Borrower” is used in respect of a financial covenant or a related definition, it shall be understood to mean Borrower and its Subsidiaries on a consolidated basis, unless the context clearly
requires otherwise. 
 1.3 Code. Any terms used in this Agreement that are defined in the Code shall be construed
and defined as set forth in the Code unless otherwise defined herein; provided, however, that to the extent that the Code is used to define any term herein and such term is defined differently in different Articles of the Code, the
definition of such term contained in Article 9 of the Code shall govern. 
 1.4 Construction. Unless the context
of this Agreement or any other Loan Document clearly requires otherwise, references to the plural include the singular, references to the singular include the plural, the terms “includes” and “including” are not limiting, and the
term “or” has, except where otherwise indicated, the inclusive meaning represented by the phrase “and/or.” The words “hereof,” “herein,” “hereby,” “hereunder,” and similar terms in this
Agreement or any other Loan Document refer to this Agreement or such other Loan Document, as the case may be, as a whole and not to any particular provision of this Agreement or such other Loan Document, as the case may be. Section, subsection,
clause, schedule, and exhibit references herein are to this Agreement unless 

 
otherwise specified. Any reference in this Agreement or in any other Loan Document to any agreement, instrument, or document shall include all alterations, amendments, changes, extensions,
modifications, renewals, replacements, substitutions, joinders, and supplements, thereto and thereof, as applicable (subject to any restrictions on such alterations, amendments, changes, extensions, modifications, renewals, replacements,
substitutions, joinders, and supplements set forth herein). The words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties,
including cash, securities, accounts, and contract rights. Any reference herein or in any other Loan Document to the satisfaction or repayment in full of the Obligations shall mean the repayment in full in cash (or, in the case of Letters of Credit
or Bank Products, providing Letter of Credit Collateralization or Bank Product Collateralization, as applicable) of all Obligations other than unasserted contingent indemnification Obligations. Any reference herein to any Person shall be construed
to include such Person’s successors and assigns. Any requirement of a writing contained herein or in any other Loan Document shall be satisfied by the transmission of a Record. 

1.5 Schedules and Exhibits. All of the schedules and exhibits attached to this Agreement shall be deemed incorporated
herein by reference. 
  

	2	LOAN AND TERMS OF PAYMENT. 

2.1 Revolver Advances. 

(a) Subject to the terms and conditions of this Agreement, and during the term of this Agreement, each Lender agrees (severally, not
jointly or jointly and severally) to make advances (“Advances”) to Borrower in an amount at any one time outstanding not to exceed such Lender’s Pro Rata Share of an amount equal to (i) the lesser of the Maximum Revolver
Amount and the Borrowing Base at such time minus (ii) the Letter of Credit Usage at such time. 
 (b) Amounts
borrowed pursuant to this Section 2.1 may be repaid and, subject to the terms and conditions of this Agreement, reborrowed at any time during the term of this Agreement. The outstanding principal amount of the Advances, together with
interest accrued thereon, shall be due and payable on the Maturity Date or, if earlier, on the date on which they are declared due and payable pursuant to the terms of this Agreement. 

(c) Anything to the contrary in this Section 2.1 notwithstanding, Administrative Agent shall have the right, upon not less
than 30 days prior written notice to Borrower, to establish reserves against the Borrowing Base in such amounts, and with respect to such matters (but not to include reserves with respect to Bank Product Obligations), as Administrative Agent in its
Permitted Discretion shall deem necessary or appropriate, including reserves with respect to (i) sums that Borrower or its Subsidiaries are required to pay under any Section of this Agreement or any other Loan Document (such as taxes,
assessments, insurance premiums, or, in the case of leased assets, rents or other amounts payable under such leases) and has failed to pay, (ii) Collateral located at a third party warehouse or premises leased by Borrower or its Subsidiaries
and with respect to which no Collateral Access Agreement is then in effect, and (iii) amounts owing by Borrower or its Subsidiaries to any Person to the extent secured by a Lien on, or trust over, any of the Collateral (other than a Permitted
Lien), which Lien or trust, in the Permitted Discretion of Administrative Agent, likely would have a priority superior to Administrative Agent’s Liens (such as Liens or trusts in favor of landlords, warehousemen, carriers, mechanics,
materialmen, laborers, or suppliers, or Liens or trusts for ad valorem, excise, sales, or other taxes where given priority under applicable law) in and to such item of the Collateral. 

 

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 2.2 Increases in Commitment. 

(a) Revolver Increases. So long as no Default or Event of Default has occurred and is continuing, from time to time after the
Closing Date, Borrower may, upon at least 45 days’ written notice to Administrative Agent, who shall promptly notify the Lenders, propose to increase the aggregate Commitments by an additional amount not to exceed, in the aggregate, $50,000,000
minus the sum of all Commitment reductions made prior to such increase pursuant to Section 2.4(c) (the amount of any such increase, the “Additional Commitment Amount”). Each Lender shall have the right for a period of 30
days following receipt of such notice to elect by written notice to Borrower and Administrative Agent to increase its Commitment by a principal amount equal to its Pro Rata Share of the Additional Commitment Amount. No Lender (or any successor
thereto) shall have any obligation to increase its Commitment or its other obligations under this Agreement and the other Loan Documents, and any decision by a Lender to increase its Commitment shall be made in its sole discretion independently from
any other Lender. 
 (b) Additional Lenders. If any Lender shall not elect to increase its Commitment pursuant to
subsection (a) of this Section 2.2, then Borrower may, to the extent necessary to increase the aggregate Commitments by the then unsubscribed Additional Commitment Amount, designate another bank or other financial institution
(which may be, but need not be, one or more of the existing Lenders) which at the time agrees to, in the case of any such Person that is an existing Lender, increase its Commitment and in the case of any other such Person (an “Additional
Lender”), become a party to this Agreement; provided, however, that each Additional Lender must be an Eligible Transferee. The sum of the increases in the Commitments of the existing Lenders plus the Commitments of the
Additional Lenders shall not in the aggregate exceed the Additional Commitment Amount. 
 (c) Effectiveness of Increase.
An increase in the aggregate amount of the Commitments pursuant to this Section 2.2 shall become effective upon the receipt by Administrative Agent of an agreement in form and substance reasonably satisfactory to Administrative Agent
signed by Borrower, by each Additional Lender and by each other Lender whose Commitment is to be increased, setting forth the new Commitments of such Lenders and setting forth the agreement of each Additional Lender to become a party to this
Agreement and to be bound by all the terms and provisions hereof, and such legal opinions and other evidence of appropriate corporate authorization on the part of Borrower with respect to the increase in the aggregate Commitments and other documents
with respect to the increase in the Commitments as Administrative Agent may reasonably request. 
 (d) Prepayment of
Outstanding Loans. Upon any increase in the aggregate Commitments pursuant to this Section 2.2 that is not pro rata among all existing Lenders, (i) within 5 Business Days in the case of any Advances then outstanding as Base Rate
Loans, and at the end of the then applicable Interest Period in the case of any Advances then outstanding as LIBOR Rate Loans, Borrower shall prepay such Advances in their entirety and, to the extent Borrower elects to do so and subject to the
conditions specified in Section 3, Borrower shall reborrow Advances from the Lenders in proportion to their Pro Rata Share after giving effect to such increase, until such time as all outstanding Advances are held by the Lenders in such
proportion and (ii) effective upon such increase, the amount of the participations held by each Lender in each Letter of Credit then outstanding shall be deemed adjusted such that, after giving effect to such adjustments, the Lenders shall hold
participations in each such Letter of Credit in the proportion its respective Commitment bears to the aggregate Commitments after giving effect to such increase. 

2.3 Borrowing Procedures and Settlements. 

(a) Procedure for Borrowing. Each Base Rate Loan will be in amounts of at least $500,000 and multiples of $100,000 in excess
thereof, and each LIBOR Rate Loan will be in amounts of at least $1,000,000 and multiples of $500,000 in excess thereof. Each Borrowing shall be made by a written request by an Authorized Person delivered to Administrative Agent. Unless Swing Lender
is not obligated to make a Swing Loan pursuant to Section 2.3(b) below, such notice must be received by Administrative Agent no 

 

 - 3 - 

 
later than 12:00 noon (New York, New York time) on the Business Day that is the requested Funding Date specifying (i) the amount of such Borrowing, and (ii) the requested Funding Date,
which shall be a Business Day; provided, however, that if Swing Lender is not obligated to make a Swing Loan as to a requested Borrowing, such notice must be received by Administrative Agent no later than 12:00 noon (New York, New York
time) on the Business Day that is the requested Funding Date. At Administrative Agent’s election, in lieu of delivering the above-described written request, any Authorized Person may give Administrative Agent telephonic notice of such request
by the required time. In such circumstances, Borrower agrees that any such telephonic notice will be confirmed in writing within 24 hours of the giving of such telephonic notice, but the failure to provide such written confirmation shall not affect
the validity of the request. 
 (b) Making of Swing Loans. In the case of a request for an Advance and so long as either
(i) the aggregate amount of Swing Loans made since the last Settlement Date, minus the amount of Collections or payments applied to Swing Loans since the last Settlement Date, plus the amount of the requested Advance does not exceed
$15,000,000, or (ii) Swing Lender, in its sole discretion, shall agree to make a Swing Loan notwithstanding the foregoing limitation, Swing Lender shall make an Advance in the amount of such Borrowing (any such Advance made solely by Swing
Lender pursuant to this Section 2.3(b) being referred to as a “Swing Loan” and such Advances being referred to collectively as “Swing Loans”) available to Borrower on the Funding Date applicable thereto
by transferring immediately available funds to the Designated Account no later than 2:00 p.m. (New York, New York time) on such date. Each Swing Loan shall be deemed to be an Advance hereunder and shall be subject to all the terms and conditions
applicable to other Advances, except that all payments on any Swing Loan shall be payable to Swing Lender solely for its own account. Subject to the provisions of Section 2.3(d)(ii), Swing Lender shall not make and shall not be obligated
to make any Swing Loan if Swing Lender has actual knowledge that (i) one or more of the applicable conditions precedent set forth in Section 3 will not be satisfied on the requested Funding Date for the applicable Borrowing, or
(ii) the requested Borrowing would exceed the Availability on such Funding Date. Swing Lender shall not otherwise be required to determine whether the applicable conditions precedent set forth in Section 3 have been satisfied on the
Funding Date applicable thereto prior to making any Swing Loan. The Swing Loans shall be secured by Administrative Agent’s Liens, constitute Obligations hereunder, and bear interest at the rate applicable from time to time to Advances that are
Base Rate Loans. 
 (c) Making of Loans. 

(i) In the event that Swing Lender is not obligated to make a Swing Loan, then promptly after receipt of a request for a Borrowing
pursuant to Section 2.3(a), Administrative Agent shall notify the Lenders, not later than 1:00 p.m. (New York, New York time) on the Funding Date applicable thereto, by telecopy, telephone, or other similar form of transmission, of the
requested Borrowing. Each Lender shall make the amount of such Lender’s Pro Rata Share of the requested Borrowing available to Administrative Agent in immediately available funds, to the Administrative Agent’s Account, not later than 3:30
p.m. (New York, New York time) on the Funding Date applicable thereto. After Administrative Agent’s receipt of the proceeds of such Advances, Administrative Agent shall make the proceeds thereof available to Borrower on the applicable Funding
Date by transferring immediately available funds equal to such proceeds received by Administrative Agent to the Designated Account no later than 4:00 p.m. (New York, New York time) on such date; provided, however, that, subject to the
provisions of Section 2.3(d)(ii), Administrative Agent shall not request any Lender to make, and no Lender shall have the obligation to make, any Advance if Administrative Agent has actual knowledge that (1) one or more of the
applicable conditions precedent set forth in Section 3 will not be satisfied on the requested Funding Date for the applicable Borrowing unless such condition has been waived, or (2) the requested Borrowing would exceed the
Availability on such Funding Date. 
  

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 (ii) Unless Administrative Agent receives notice from a Lender prior to 1:30 p.m. (New
York, New York time) on the date of a Borrowing, that such Lender will not make available as and when required hereunder to Administrative Agent for the account of Borrower the amount of that Lender’s Pro Rata Share of the Borrowing,
Administrative Agent may assume that each Lender has made or will make such amount available to Administrative Agent in immediately available funds on the Funding Date and the Administrative Agent may (but shall not be so required), in reliance upon
such assumption, make available to Borrower on such date a corresponding amount. If any Lender shall not have made its full amount available to the Administrative Agent in immediately available funds and if Administrative Agent in such circumstances
has made available to Borrower such amount, that Lender shall on the Business Day following such Funding Date make such amount available to Administrative Agent, together with interest at the Defaulting Lender Rate for each day during such period. A
notice submitted by Administrative Agent to any Lender with respect to amounts owing under this Section 2.3(c)(ii) shall be conclusive, absent manifest error. If such amount is so made available, such payment to the Administrative Agent
shall constitute such Lender’s Advance on the date of Borrowing for all purposes of this Agreement. If such amount is not made available to the Administrative Agent on the Business Day following the Funding Date, Administrative Agent shall
issue a demand therefor to such Lender and if such Lender does not make such amount available, then Administrative Agent will notify Borrower of such failure to fund. Upon demand by Administrative Agent, Borrower shall pay such amount to
Administrative Agent for the Administrative Agent’s account, together with interest thereon for each day elapsed since the date of such Borrowing, at a rate per annum equal to the interest rate applicable at the time to the Advances composing
such Borrowing; provided, that, Borrower shall not be liable for any Funding Losses resulting from any requirement that Borrower pay such amount to Administrative Agent in accordance with the terms of this sentence. The failure of any Lender
to make any Advance on any Funding Date shall not relieve any other Lender of any obligation hereunder to make an Advance on such Funding Date, but no Lender shall be responsible for the failure of any other Lender to make the Advance to be made by
such other Lender on any Funding Date. 
 (iii) Administrative Agent shall not be obligated to transfer to a Defaulting Lender
any payments made by Borrower to Administrative Agent for the Defaulting Lender’s benefit, and, in the absence of such transfer to the Defaulting Lender, Administrative Agent shall transfer any such payments to each other non-Defaulting Lender
member of the Lender Group ratably in accordance with their Commitments (but only to the extent that such Defaulting Lender’s Advance was funded by the other members of the Lender Group) or, if so directed by Borrower and if no Default or Event
of Default has occurred and is continuing (and to the extent such Defaulting Lender’s Advance was not funded by the Lender Group), retain same to be re-advanced to Borrower as if such Defaulting Lender had made Advances to Borrower. Subject to
the foregoing, Administrative Agent may hold and, in its Permitted Discretion, re-lend to Borrower for the account of such Defaulting Lender the amount of all such payments received and retained by Administrative Agent for the account of such
Defaulting Lender. Solely for the purposes of voting or consenting to matters with respect to the Loan Documents, such Defaulting Lender shall be deemed not to be a “Lender” and such Lender’s Commitment shall be deemed to be zero.
This Section shall remain effective with respect to such Lender until (x) the Obligations under this Agreement shall have been declared or shall have become immediately due and payable, (y) the non-Defaulting Lenders, Administrative Agent
and Borrower shall have waived such Defaulting Lender’s default in writing, or (z) the Defaulting Lender makes its Pro Rata Share of the applicable Advance and pays to Administrative Agent all amounts owing by Defaulting Lender in respect
thereof. The operation of this Section shall not be construed to increase or otherwise affect the Commitment of any Lender, to relieve or excuse the performance by such Defaulting Lender or any other Lender of its duties and obligations hereunder,
or to relieve or excuse the performance by Borrower of its duties and obligations hereunder to Administrative Agent or to the Lenders other than such Defaulting Lender. Any such failure to fund by any Defaulting Lender shall constitute a material
breach by such Defaulting Lender of this Agreement and shall entitle Borrower at its option, upon written notice to Administrative Agent, to arrange for a substitute 

 

 - 5 - 

 
Lender to assume the Commitment of such Defaulting Lender, such substitute Lender to be reasonably acceptable to Administrative Agent. In connection with the arrangement of such a substitute
Lender, the Defaulting Lender shall have no right to refuse to be replaced hereunder, and agrees to execute and deliver a completed form of Assignment and Acceptance in favor of the substitute Lender (and agrees that it shall be deemed to have
executed and delivered such document if it fails to do so) subject only to being repaid its share of the outstanding Obligations (other than Bank Product Obligations, but including an assumption of its Pro Rata Share of the Letters of Credit)
without any premium or penalty of any kind whatsoever; provided, however, that any such assumption of the Commitment of such Defaulting Lender shall not be deemed to constitute a waiver of any of the Lender Groups’ or
Borrower’s rights or remedies against any such Defaulting Lender arising out of or in relation to such failure to fund. 

(d) Protective Advances and Optional Overadvances. 

(i) Any contrary provision of this Agreement notwithstanding, the Administrative Agent hereby is authorized by Borrower and the Lenders,
from time to time in Administrative Agent’s sole discretion, (A) after the occurrence and during the continuance of a Default or an Event of Default, or (B) at any time that any of the other applicable conditions precedent set forth
in Section 3 are not satisfied, to make Advances to, or for the benefit of, Borrower on behalf of the Lenders (in an aggregate amount for all such Advances taken together not exceeding 10% of the Maximum Revolver Amount outstanding at
any one time) that Administrative Agent, in its Permitted Discretion deem necessary or desirable (1) to preserve or protect the Collateral, or any portion thereof, or (2) to enhance the likelihood of repayment of the Obligations (other
than the Bank Product Obligations) (any of the Advances described in this Section 2.3(d)(i) shall be referred to as “Protective Advances”). 

(ii) Any contrary provision of this Agreement notwithstanding, the Lenders hereby authorize Administrative Agent or Swing Lender, as
applicable, and either Administrative Agent or Swing Lender, as applicable, may, but are not obligated to, knowingly and intentionally, continue to make Advances (including Swing Loans) to Borrower notwithstanding that an Overadvance exists or
thereby would be created, so long as (A) after giving effect to such Advances, the outstanding Revolver Usage does not exceed the Borrowing Base by more than 10% of the Maximum Revolver Amount, and (B) after giving effect to such Advances,
the outstanding Revolver Usage (except for and excluding amounts charged to the Loan Account for interest, fees, or Lender Group Expenses) does not exceed the Maximum Revolver Amount. In the event Administrative Agent obtains actual knowledge that
the Revolver Usage exceeds the amounts permitted by the immediately foregoing provisions, regardless of the amount of, or reason for, such excess, Administrative Agent shall notify the Lenders as soon as practicable (and prior to making any (or any
additional) intentional Overadvances (except for and excluding amounts charged to the Loan Account for interest, fees, or Lender Group Expenses) unless Administrative Agent determines that prior notice would result in imminent harm to the Collateral
or its value), and the Lenders thereupon shall, together with Administrative Agent, jointly determine the terms of arrangements that shall be implemented with Borrower intended to reduce, within a reasonable time, the outstanding principal amount of
the Advances to Borrower to an amount permitted by the preceding sentence. In such circumstances, if any Lender objects to the proposed terms of reduction or repayment of any Overadvance, the terms of reduction or repayment thereof shall be
implemented according to the determination of the Required Lenders. In any event: (x) if any unintentional Overadvance remains outstanding for more than 30 days, unless otherwise agreed to by the Required Lenders, Borrower shall immediately
repay Advances in an amount sufficient to eliminate all such unintentional Overadvances, and (y) after the date all such Overadvances have been eliminated, there must be at least five consecutive days before intentional Overadvances are
made. The foregoing provisions are meant for the benefit of the Lenders and Administrative Agent and are not meant for the benefit of Borrower, which shall continue to be bound by the provisions of Section 2.5. Each Lender shall be
obligated to settle with Administrative Agent as provided in Section 2.3(e) for the amount of 
  

 - 6 - 

 
such Lender’s Pro Rata Share of any unintentional Overadvances by Administrative Agent reported to such Lender, any intentional Overadvances made as permitted under this
Section 2.3(d)(ii), and any Overadvances resulting from the charging to the Loan Account of interest, fees, or Lender Group Expenses. 

(iii) Each Protective Advance and each Overadvance shall be deemed to be an Advance hereunder, except that no Protective Advance or
Overadvance shall be eligible to be a LIBOR Rate Loan and, prior to Settlement therefor, all payments on the Protective Advances shall be payable to the Administrative Agent solely for its own account. The Protective Advances and Overadvances shall
be repayable on demand, secured by Administrative Agent’s Liens, constitute Obligations hereunder, and bear interest at the rate applicable from time to time to Advances that are Base Rate Loans. The ability of Administrative Agent to make
Protective Advances is separate and distinct from its ability to make Overadvances, and its ability to make Overadvances is separate and distinct from its ability to make Protective Advances. For the avoidance of doubt, the limitations on
Administrative Agent’s ability to make Protective Advances do not apply to Overadvances and the limitations on Administrative Agent’s ability to make Overadvances do not apply to Protective Advances. The provisions of this
Section 2.3(d) are for the exclusive benefit of Administrative Agent, Swing Lender, and the Lenders and are not intended to benefit Borrower in any way. 

(e) Settlement. It is agreed that each Lender’s funded portion of the Advances is intended by the Lenders to equal, at all
times, such Lender’s Pro Rata Share of the outstanding Advances. Such agreement notwithstanding, Administrative Agent, Swing Lender, and the other Lenders agree (which agreement shall not be for the benefit of Borrower) that in order to
facilitate the administration of this Agreement and the other Loan Documents, settlement among the Lenders as to the Advances, the Swing Loans, and the Protective Advances shall take place on a periodic basis in accordance with the following
provisions: 
 (i) Administrative Agent shall request settlement (“Settlement”) with the
Lenders twice each month (on the 15th day and last day of
each month), or on a more frequent basis if so determined by Administrative Agent (1) on behalf of Swing Lender, with respect to the outstanding Swing Loans, (2) for itself, with respect to the outstanding Protective Advances, and
(3) with respect to Borrower’s or its Subsidiaries’ Collections or payments received, as to each by notifying the Lenders by telecopy, telephone, or other similar form of transmission, of such requested Settlement, no later than 12:00
noon (New York, New York time) on the date of such requested Settlement (the date of such requested Settlement being the “Settlement Date”). Such notice of a Settlement Date shall include a summary statement of the amount of
outstanding Advances, Swing Loans, and Protective Advances for the period since the prior Settlement Date. Subject to the terms and conditions contained herein (including Section 2.3(c)(iii)): (y) if a Lender’s balance of the
Advances (including Swing Loans and Protective Advances) exceeds such Lender’s Pro Rata Share of the Advances (including Swing Loans and Protective Advances) as of a Settlement Date, then the Administrative Agent shall, by no later than 3:30
p.m. (New York, New York time) on the Settlement Date, transfer in immediately available funds to a Deposit Account of such Lender (as such Lender may designate), an amount such that each such Lender shall, upon receipt of such amount, have as of
the Settlement Date, its Pro Rata Share of the Advances (including Swing Loans and Protective Advances), and (z) if a Lender’s balance of the Advances (including Swing Loans and Protective Advances) is less than such Lender’s Pro Rata
Share of the Advances (including Swing Loans and Protective Advances) as of a Settlement Date, such Lender shall no later than 3:30 p.m. (New York, New York time) on the Settlement Date transfer in immediately available funds to Administrative
Agent’s Account, an amount such that each such Lender shall, upon transfer of such amount, have as of the Settlement Date, its Pro Rata Share of the Advances (including Swing Loans and Protective Advances). Such amounts made available to
Administrative Agent under clause (z) of the immediately preceding sentence shall be applied against the amounts of the applicable Swing Loans or Protective Advances and, together with the portion of such

  

 - 7 - 

 
Swing Loans or Protective Advances representing Swing Lender’s Pro Rata Share thereof, shall constitute Advances of such Lenders. If any such amount is not made available to Administrative
Agent by any Lender on the Settlement Date applicable thereto to the extent required by the terms hereof, Administrative Agent shall be entitled to recover for its account such amount on demand from such Lender together with interest thereon at the
Defaulting Lender Rate. 
 (ii) In determining whether a Lender’s balance of the Advances, Swing Loans, and Protective
Advances is less than, equal to, or greater than such Lender’s Pro Rata Share of the Advances, Swing Loans, and Protective Advances as of a Settlement Date, Administrative Agent shall, as part of the relevant Settlement, apply to such balance
the portion of payments actually received in good funds by Administrative Agent with respect to principal, interest, fees payable by Borrower and allocable to the Lenders hereunder, and proceeds of Collateral. 

(iii) Between Settlement Dates, Administrative Agent, to the extent Protective Advances or Swing Loans are outstanding, may pay over to
Administrative Agent or Swing Lender, as applicable, any Collections or payments received by Administrative Agent, that in accordance with the terms of this Agreement would be applied to the reduction of the Advances, for application to the
Protective Advances or Swing Loans. Between Settlement Dates, Administrative Agent, to the extent no Protective Advances or Swing Loans are outstanding, may pay over to Swing Lender any Collections or payments received by Administrative Agent, that
in accordance with the terms of this Agreement would be applied to the reduction of the Advances, for application to Swing Lender’s Pro Rata Share of the Advances. If, as of any Settlement Date, Collections or payments of Borrower or its
Subsidiaries received since the then immediately preceding Settlement Date have been applied to Swing Lender’s Pro Rata Share of the Advances other than to Swing Loans, as provided for in the previous sentence, Swing Lender shall pay to
Administrative Agent for the accounts of the Lenders, and Administrative Agent shall pay to the Lenders, to be applied to the outstanding Advances of such Lenders, an amount such that each Lender shall, upon receipt of such amount, have, as of such
Settlement Date, its Pro Rata Share of the Advances. During the period between Settlement Dates, Swing Lender with respect to Swing Loans, Administrative Agent with respect to Protective Advances, and each Lender (subject to the effect of agreements
between Administrative Agent and individual Lenders) with respect to the Advances other than Swing Loans and Protective Advances, shall be entitled to interest at the applicable rate or rates payable under this Agreement on the daily amount of funds
employed by Swing Lender, Administrative Agent, or the Lenders, as applicable. 
 (f) Notation. Administrative Agent, as
a non-fiduciary agent for Borrower, shall maintain a register showing the principal amount of the Advances owing to each Lender, including the Swing Loans owing to Swing Lender, and Protective Advances owing to Administrative Agent, and the
interests therein of each Lender, from time to time and such register shall, absent manifest error, conclusively be presumed to be correct and accurate. 

(g) Lenders’ Failure to Perform. All Advances (other than Swing Loans and Protective Advances) shall be made by the Lenders
contemporaneously and in accordance with their Pro Rata Shares. It is understood that (i) no Lender shall be responsible for any failure by any other Lender to perform its obligation to make any Advance (or other extension of credit) hereunder,
nor shall any Commitment of any Lender be increased or decreased as a result of any failure by any other Lender to perform its obligations hereunder, and (ii) no failure by any Lender to perform its obligations hereunder shall excuse any other
Lender from its obligations hereunder. 
  

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 2.4 Payments; Reductions of Commitments; Prepayments. 

(a) Payments by Borrower. 

(i) Except as otherwise expressly provided herein, all payments by Borrower shall be made to the Administrative Agent’s Account for
the account of the Lender Group and shall be made in immediately available funds, no later than 2:00 p.m. (New York, New York time) on the date specified herein. Any payment received by Administrative Agent later than 2:00 p.m. (New York, New York
time) shall be deemed to have been received on the following Business Day and any applicable interest or fee shall continue to accrue until such following Business Day. 

(ii) Unless Administrative Agent receives notice from Borrower prior to the date on which any payment is due to the Lenders that
Borrower will not make such payment in full as and when required, Administrative Agent may assume that Borrower has made (or will make) such payment in full to Administrative Agent on such date in immediately available funds and Administrative Agent
may (but shall not be so required), in reliance upon such assumption, distribute to each Lender on such due date an amount equal to the amount then due such Lender. If and to the extent Borrower does not make such payment in full to Administrative
Agent on the date when due, each Lender severally shall repay to Administrative Agent on demand such amount distributed to such Lender, together with interest thereon at the Defaulting Lender Rate for each day from the date such amount is
distributed to such Lender until the date repaid. 
 (b) Apportionment and Application. 

(i) So long as no Application Event has occurred and is continuing and except as otherwise provided with respect to Defaulting Lenders,
all principal and interest payments shall be apportioned ratably among the Lenders (according to the unpaid principal balance of the Obligations to which such payments relate held by each Lender) and all payments of fees and expenses (other than
fees or expenses that are for an Agent’s separate account) shall be apportioned ratably among the Lenders having a Pro Rata Share of the type of Commitment or Obligation to which a particular fee or expense relates. 

(ii) At any time that an Application Event has occurred and is continuing and except as otherwise provided with respect to Defaulting
Lenders, all payments remitted to Administrative Agent and all proceeds of Collateral received by Administrative Agent shall be applied as follows: 

(A) first, to pay any Lender Group Expenses (including cost or expense reimbursements) or indemnities then due to Administrative
Agent under the Loan Documents, until paid in full, 
 (B) second, to pay interest due in respect of all Protective
Advances until paid in full, 
 (C) third, to pay the principal of all Protective Advances until paid in full,

 (D) fourth, ratably to pay any Lender Group Expenses (including cost or expense reimbursements) or indemnities then
due to any of the Lenders under the Loan Documents, until paid in full, 
 (E) fifth, to pay any fees or premiums then
due to Administrative Agent under the Loan Documents until paid in full, 
  

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 (F) sixth, ratably to pay any fees or premiums then due to any of the Lenders under
the Loan Documents until paid in full, 
 (G) seventh, ratably to pay interest due in respect of the Advances (other
than Protective Advances) and the Swing Loans until paid in full, 
 (H) eighth, ratably (i) to pay the principal
of all Swing Loans until paid in full, (ii) to pay the principal of all Advances until paid in full, (iii) to the Issuing Lender as reimbursement for any unreimbursed Letter of Credit Disbursements, and (iv) to Administrative Agent,
to be held by Administrative Agent, for the benefit of Issuing Lender (and for the ratable benefit of each of the Lenders that have an obligation to pay to the Administrative Agent, for the account of the Issuing Lender, a share of each Letter of
Credit Disbursement), as cash collateral in an amount up to 105% of the Letter of Credit Usage, 
 (I) ninth, to pay any
other Obligations (other than Bank Product Obligations), 
 (J) tenth, to Administrative Agent, to be held by
Administrative Agent, for the benefit of the Bank Product Providers, as cash collateral in an amount up to the amount the Bank Product Providers reasonably determine to be the credit exposure of Borrower and its Subsidiaries in respect of Bank
Products, and 
 (K) eleventh, to Borrower (to be wired to the Designated Account) or such other Person entitled thereto
under applicable law. 
 (iii) Administrative Agent promptly shall distribute to each Lender, pursuant to the applicable wire
instructions received from each Lender in writing, such funds as it may be entitled to receive, subject to a Settlement delay as provided in Section 2.3(e). 

(iv) In each instance, so long as no Application Event has occurred and is continuing, Section 2.4(b)(i) shall not apply to
any payment made by Borrower to Administrative Agent and specified by Borrower to be for the payment of specific Obligations then due and payable (or prepayable) under any provision of this Agreement or any other Loan Document. 

(v) For purposes of Section 2.4(b)(ii), “paid in full” means payment in cash of all amounts owing under the Loan
Documents, including loan fees, service fees, professional fees, interest (and specifically including interest accrued after the commencement of any Insolvency Proceeding), default interest, interest on interest, and expense reimbursements, whether
or not any of the foregoing would be or is allowed or disallowed in whole or in part in any Insolvency Proceeding. 
 (vi) In
the event of a direct conflict between the priority provisions of this Section 2.4 and any other provision contained in any other Loan Document, it is the intention of the parties hereto that such provisions be read together and
construed, to the fullest extent possible, to be in concert with each other. In the event of any actual, irreconcilable conflict that cannot be resolved as aforesaid, the terms and provisions of this Section 2.4 shall control and govern.

 (c) Reductions of Commitments. The Commitments shall terminate on the Maturity Date. Borrower may reduce the
Commitments to an amount not less than the greater of $40,000,000 and the sum of (A) the Revolver Usage as of such date, plus (B) the principal amount of all Advances not yet made as to which a request has been given by Borrower under
Section 2.3(a), plus (C) the amount of all Letters of Credit not yet issued as to which a request has been given by Borrower pursuant to Section 2.11(a). 

 

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Each such reduction shall be in an amount which is not less than $5,000,000, shall be made by providing not less than 10 Business Days prior written notice to Administrative Agent and shall be
irrevocable. Once reduced, the Commitments may not be increased. Each such reduction of the Commitments shall reduce the Commitments of each Lender proportionately in accordance with its Pro Rata Share thereof. 

(d) Optional Prepayments. 

(i) Base Rate Loans. Borrower may prepay the principal of any Base Rate Loan on any Business Day with advance notice (which notice
may be provided on the date of prepayment, including by email or other electronic communication). Prepayments of Base Rate Loans will be in amounts of at least $500,000 and multiples of $100,000 in excess thereof. 

(ii) LIBOR Rate Loans. Borrower may prepay the principal of any LIBOR Rate Loan without penalty (but subject to the payment of
any amounts due under Section 2.12 in connection therewith) on three Business Days advance notice. Prepayments of LIBOR loans will be in amounts of at least $1,000,000 and multiples of $500,000 in excess thereof. All such prepayments
will include interest accrued to the prepayment date and will be accompanied by any amounts due under Section 2.12. 

(e) Mandatory Prepayments. If, at any time, (i) the Revolver Usage on such date exceeds (ii) the Borrowing Base (such
excess being referred to as the “Borrowing Base Excess Amount”), then Borrower shall promptly, but in any event, within 1 Business Day, prepay the Obligations in accordance with Section 2.4(f) in an aggregate amount
equal to the Borrowing Base Excess Amount. 
 (f) Application of Payments. Each prepayment pursuant to
Section 2.4(e) shall, (i) so long as no Application Event shall have occurred and be continuing, be applied, first, to the outstanding principal amount of the Advances until paid in full, and second, to cash
collateralize the Letters of Credit in an amount equal to 105% of the then extant Letter of Credit Usage, and (ii) if an Application Event shall have occurred and be continuing, be applied in the manner set forth in
Section 2.4(b)(ii). 
 2.5 Overadvances. If, at any time or for any reason, the amount of Obligations
owed by Borrower to the Lender Group pursuant to Section 2.1 or Section 2.11 is greater than any of the limitations set forth in Section 2.1 or Section 2.11, as applicable (an
“Overadvance”), Borrower shall promptly, but in any event, within two Business Days of the initial occurrence of an Overadvance pay to Administrative Agent, in cash, the amount of such excess, which amount shall be used by
Administrative Agent to reduce the Obligations in accordance with the priorities set forth in Section 2.4(b). Borrower promises to pay the Obligations (including principal, interest, fees, costs, and expenses) in Dollars in full on the
Maturity Date or, if earlier, on the date on which the Obligations are declared due and payable pursuant to the terms of this Agreement. 

2.6 Interest Rates and Letter of Credit Fee: Rates, Payments, and Calculations. 

(a) Interest Rates. Except as provided in Section 2.6(c), all Obligations (except for undrawn Letters of Credit and
except for Bank Product Obligations) that have been charged to the Loan Account pursuant to the terms hereof shall bear interest on the Daily Balance thereof as follows: 

(i) if the relevant Obligation is a LIBOR Rate Loan, at a per annum rate equal to the LIBOR Rate plus the Applicable Margin, and

 (ii) otherwise, at a per annum rate equal to the Base Rate plus the Applicable Margin. 

 

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 (b) Letter of Credit Fees. Borrower shall pay (i) Administrative Agent (for the
ratable benefit of the Lenders, subject to any agreements between Administrative Agent and individual Lenders), Letter of Credit fees (in addition to the charges, commissions, fees, and costs set forth in Section 2.11(e)) at a per annum
rate equal to the Daily Balance of the undrawn amount of all outstanding Letters of Credit times the Applicable Margin with respect to LIBOR Rate Loans as of each applicable date, such fees to be due and payable quarterly in arrears on the first day
of each January, April, July and October and on the Payoff Date, and (ii) the Issuing Lender, for its own account, a fronting fee at the rate of 0.125% per annum on the Daily Balance of the undrawn amount of all outstanding Letters of
Credit, such fronting fee to be due and payable quarterly in arrears on the first day of each January, April, July and October and on the Payoff Date. 

(c) Default Rate. Upon the occurrence and during the continuation of an Event of Default and at the election of the Required
Lenders, 
 (i) all Obligations (except for undrawn Letters of Credit and except for Bank Product Obligations) that have been
charged to the Loan Account pursuant to the terms hereof shall bear interest on the Daily Balance thereof at a per annum rate equal to 2 percentage points above the per annum rate otherwise applicable hereunder, and 

(ii) the Letter of Credit fee provided for in Section 2.6(b) shall be increased to 2 percentage points above the per annum
rate otherwise applicable hereunder. 
 (d) Payment. Except to the extent provided to the contrary in
Section 2.6(b), Section 2.10 or Section 2.12(a), interest, Letter of Credit fees, all other fees payable hereunder or under any of the other Loan Documents, and all costs, expenses, and Lender Group Expenses
payable hereunder or under any of the other Loan Documents shall be due and payable, in arrears, on the first Business Day of each month at any time that Obligations or Commitments are outstanding. Borrower hereby authorizes Administrative Agent,
from time to time with prior notice to Borrower, to charge all interest, Letter of Credit fees, and all other fees payable hereunder or under any of the other Loan Documents (in each case, as and when due and payable), all costs, expenses, and
Lender Group Expenses payable hereunder or under any of the other Loan Documents (in each case, as and when incurred), all charges, commissions, fees, and costs provided for in Section 2.11(e) (as and when accrued or incurred), all fees
and costs provided for in Section 2.10 (as and when accrued or incurred), and all other payments as and when due and payable under any Loan Document (other than any amounts due and payable to the Bank Product Providers in respect of Bank
Products) to the Loan Account, which amounts thereafter shall constitute Advances hereunder and shall accrue interest at the rate then applicable to Advances that are Base Rate Loans. Any interest, fees, costs, expenses, Lender Group Expenses, or
other amounts payable hereunder or under any other Loan Document not paid when due shall be compounded by being charged to the Loan Account and shall thereafter constitute Advances hereunder and shall accrue interest at the rate then applicable to
Advances that are Base Rate Loans. 
 (e) Computation. All interest and fees (other than pursuant to
Section 2.6(b)) chargeable under the Loan Documents shall be computed on the basis of a 365 day year (or, in the case of LIBOR Rate Loans and fees pursuant to Section 2.6(b), on the basis of a 360 day year), in each case, for
the actual number of days elapsed in the period during which the interest or fees accrue. In the event the Base Rate is changed from time to time hereafter, the rates of interest hereunder based upon the Base Rate automatically and immediately shall
be increased or decreased by an amount equal to such change in the Base Rate. 
 (f) Intent to Limit Charges to Maximum
Lawful Rate. In no event shall the interest rate or rates payable under this Agreement, plus any other amounts paid in connection herewith, exceed the highest rate permissible under any law that a court of

  

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competent jurisdiction shall, in a final determination, deem applicable. Borrower and the Lender Group, in executing and delivering this Agreement, intend legally to agree upon the rate or rates
of interest and manner of payment stated within it; provided, however, that, anything contained herein to the contrary notwithstanding, if said rate or rates of interest or manner of payment exceeds the maximum allowable under
applicable law, then, ipso facto, as of the date of this Agreement, Borrower is and shall be liable only for the payment of such maximum as allowed by law, and payment received from Borrower in excess of such legal maximum, whenever received,
shall be applied to reduce the principal balance of the Obligations to the extent of such excess. 
 2.7 Crediting
Payments. The receipt of any payment item by Administrative Agent shall not be considered a payment on account unless such payment item is a wire transfer (or other payment) of immediately available federal funds made to the Administrative
Agent’s Account or unless and until such payment item is honored when presented for payment. Should any payment item not be honored when presented for payment, then Borrower shall be deemed not to have made such payment and interest shall be
calculated accordingly. Anything to the contrary contained herein notwithstanding, any payment item shall be deemed received by Administrative Agent only if it is received into the Administrative Agent’s Account on a Business Day on or before
2:00 p.m. (New York, New York time). If any payment item is received into Administrative Agent’s Account on a non-Business Day or after 2:00 p.m. (New York, New York time) on a Business Day, it shall be deemed to have been received by
Administrative Agent as of the opening of business on the immediately following Business Day 
 2.8 Designated
Account. Administrative Agent is authorized to make the Advances, and Issuing Lender is authorized to issue the Letters of Credit, under this Agreement based upon telephonic or other instructions received from anyone purporting to be an
Authorized Person or, without instructions, if pursuant to Section 2.6(d). Borrower agrees to establish and maintain the Designated Account with the Designated Account Bank for the purpose of receiving the proceeds of the Advances
requested by Borrower and made by Administrative Agent or the Lenders hereunder. Unless otherwise specified by Borrower to Administrative Agent, any Advance or Swing Loan requested by Borrower and made by Administrative Agent or the Lenders
hereunder shall be made to the Designated Account. 
 2.9 Maintenance of Loan Account; Statements of Obligations.
Administrative Agent shall maintain an account on its books in the name of Borrower (the “Loan Account”) on which Borrower will be charged with all Advances (including Protective Advances and Swing Loans) made by Administrative
Agent, Swing Lender, or the Lenders to Borrower or for Borrower’s account, the Letters of Credit issued or made by Issuing Lender for Borrower’s account, and with all other payment Obligations hereunder or under the other Loan Documents
(except for Bank Product Obligations), including, accrued interest, fees and expenses, and Lender Group Expenses. In accordance with Section 2.7, the Loan Account will be credited with all payments received by Administrative Agent from
Borrower or for Borrower’s account. Administrative Agent shall render monthly statements regarding the Loan Account to Borrower, including principal, interest, fees, and including an itemization of all charges and expenses constituting Lender
Group Expenses owing, and such statements, absent manifest error, shall be conclusively presumed to be correct and accurate and constitute an account stated between Borrower and the Lender Group unless, within 30 days after receipt thereof by
Borrower, Borrower shall deliver to the Administrative Agent written objection thereto describing the error or errors contained in any such statements. 

2.10 Fees. Borrower shall pay to Administrative Agent, 

(a) for the account of the Agents (except as otherwise provided in the Fee Letter), as and when due and payable under the terms of the
Fee Letter, the fees set forth therein; and 
  

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 (b) for the ratable account of the Lenders, on the first day of each January, April, July
and October and on the Payoff Date, an unused line fee in an amount equal to 0.50% per annum times the result of (i) the Maximum Revolver Amount, less (ii) the average Daily Balance of the Revolver Usage (other than outstanding Swing
Loans) during the immediately preceding quarter (or portion thereof). 
 2.11 Letters of Credit. 

(a) Subject to the terms and conditions of this Agreement, upon the request of Borrower made in accordance herewith, the Issuing Lender
agrees to issue, or to cause an Underlying Issuer, as Issuing Lender’s agent, to issue, a requested Letter of Credit. If Issuing Lender, at its option, elects to cause an Underlying Issuer to issue a requested Letter of Credit, then Issuing
Lender agrees that it will obligate itself to reimburse such Underlying Issuer (which may include, among, other means, by becoming an applicant with respect to such Letter of Credit or entering into undertakings which provide for reimbursements of
such Underlying Issuer with respect to such Letter of Credit; each such obligation or undertaking, irrespective of whether in writing, a “Reimbursement Undertaking”) with respect to Letters of Credit issued by such Underlying
Issuer. By submitting a request to Issuing Lender for the issuance of a Letter of Credit, Borrower shall be deemed to have requested that Issuing Lender issue or that an Underlying Issuer issue the requested Letter of Credit and to have requested
Issuing Lender to issue a Reimbursement Undertaking with respect to such requested Letter of Credit if it is to be issued by an Underlying Issuer (it being expressly acknowledged and agreed by Borrower that Borrower is and shall be deemed to be an
applicant (within the meaning of Section 5-102(a)(2) of the Code) with respect to each Underlying Letter of Credit). Each request for the issuance of a Letter of Credit, or the amendment, renewal, or extension of any outstanding Letter of
Credit, shall be made in writing by an Authorized Person and delivered to the Issuing Lender via hand delivery, telefacsimile, or other electronic method of transmission reasonably in advance of the requested date of issuance, amendment, renewal, or
extension. Each such request shall be in form and substance reasonably satisfactory to the Issuing Lender and shall specify (i) the amount of such Letter of Credit, (ii) the date of issuance, amendment, renewal, or extension of such Letter
of Credit, (iii) the expiration date of such Letter of Credit (which shall not be later than the Business Day prior to the Maturity Date or, if earlier, one year from the date of issuance or extension, in the case of standby Letters of Credit,
and 120 days from the date of issuance or extension, in the case of commercial/documentary Letters of Credit), (iv) the name and address of the beneficiary of the Letter of Credit, and (v) such other information (including, in the case of
an amendment, renewal, or extension, identification of the Letter of Credit to be so amended, renewed, or extended) as shall be necessary to prepare, amend, renew, or extend such Letter of Credit. Borrower agrees that this Agreement (along with the
terms of the applicable application) will govern each Letter of Credit and its issuance. The Issuing Lender shall have no obligation to issue a Letter of Credit or a Reimbursement Undertaking in respect of an Underlying Letter of Credit, in either
case, if any of the following would result after giving effect to the requested issuance: 
 (i) the Letter of Credit Usage
would exceed the Borrowing Base less the outstanding amount of Advances, or 
 (ii) the Letter of Credit Usage would
exceed $5,000,000, or 
 (iii) the Letter of Credit Usage would exceed the Maximum Revolver Amount less the outstanding
amount of Advances. 
 Each Letter of Credit shall be in form and substance reasonably acceptable to the Issuing Lender, including the
requirement that the amounts payable thereunder must be payable in Dollars. If Issuing Lender makes a payment under a Letter of Credit or an Underlying Issuer makes a payment under an Underlying Letter of Credit, Borrower shall pay to Administrative
Agent an amount equal to the 
  

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applicable Letter of Credit Disbursement not later than 2:00 p.m., New York, New York time, on the date that Borrower receives written or telephonic notice of such Letter of Credit Disbursement
if such notice is received prior to 12:00 noon, New York, New York time, or not later than 2:00 p.m., New York, New York time, on the following Business Day, if such notice is received after 12:00 noon, New York, New York time, and, in the absence
of such payment, the amount of the Letter of Credit Disbursement immediately and automatically shall be deemed to be an Advance hereunder and, initially, shall bear interest at the rate then applicable to Advances that are Base Rate Loans. If a
Letter of Credit Disbursement is deemed to be an Advance hereunder, Borrower’s obligation to pay the amount of such Letter of Credit Disbursement to Issuing Lender shall be discharged and replaced by the resulting Advance. Promptly following
receipt by Administrative Agent of any payment from Borrower pursuant to this paragraph, Administrative Agent shall distribute such payment to the Issuing Lender or, to the extent that Lenders have made payments pursuant to
Section 2.11(b) to reimburse the Issuing Lender, then to such Lenders and the Issuing Lender as their interests may appear. 

(b) Promptly following receipt of a notice of a Letter of Credit Disbursement pursuant to Section 2.11(a), each Lender agrees
to fund its Pro Rata Share of any Advance deemed made pursuant to Section 2.11(a) on the same terms and conditions as if Borrower had requested the amount thereof as an Advance and the Administrative Agent shall promptly pay to Issuing
Lender the amounts so received by it from the Lenders. By the issuance of a Letter of Credit or a Reimbursement Undertaking (or an amendment to a Letter of Credit or a Reimbursement Undertaking increasing the amount thereof) and without any further
action on the part of the Issuing Lender or the Lenders, the Issuing Lender shall be deemed to have granted to each Lender, and each Lender shall be deemed to have purchased, a participation in each Letter of Credit issued by Issuing Lender and each
Reimbursement Undertaking, in an amount equal to its Pro Rata Share of such Letter of Credit or Reimbursement Undertaking, and each such Lender agrees to pay to Administrative Agent, for the account of the Issuing Lender, such Lender’s Pro Rata
Share of any Letter of Credit Disbursement made by Issuing Lender or an Underlying Issuer under the applicable Letter of Credit. In consideration and in furtherance of the foregoing, each Lender hereby absolutely and unconditionally agrees to pay to
the Administrative Agent, for the account of the Issuing Lender, such Lender’s Pro Rata Share of each Letter of Credit Disbursement made by Issuing Lender or an Underlying Issuer and not reimbursed by Borrower on the date due as provided in
Section 2.11(a), or of any reimbursement payment required to be refunded to Borrower for any reason. Each Lender acknowledges and agrees that its obligation to deliver to Administrative Agent, for the account of the Issuing Lender, an
amount equal to its respective Pro Rata Share of each Letter of Credit Disbursement pursuant to this Section 2.11(b) shall be absolute and unconditional and such remittance shall be made notwithstanding the occurrence or continuation of
an Event of Default or Default or the failure to satisfy any condition set forth in Section 3. If any such Lender fails to make available to Administrative Agent the amount of such Lender’s Pro Rata Share of a Letter of Credit
Disbursement as provided in this Section, such Lender shall be deemed to be a Defaulting Lender and Administrative Agent (for the account of the Issuing Lender) shall be entitled to recover such amount on demand from such Lender together with
interest thereon at the Defaulting Lender Rate until paid in full. 
 (c) Borrower hereby agrees to indemnify, save, defend, and
hold the Lender Group and each Underlying Issuer harmless from any loss, cost, expense, or liability, and reasonable attorneys fees incurred by Issuing Lender, any other member of the Lender Group, or any Underlying Issuer arising out of or in
connection with any Reimbursement Undertaking or any Letter of Credit; provided, however, that Borrower shall not be obligated hereunder to indemnify for any loss, cost, expense, or liability that a court of competent jurisdiction
finally determines to have resulted from the gross negligence or willful misconduct of the Issuing Lender, any other member of the Lender Group, or any Underlying Issuer. Borrower agrees to be bound by the Underlying Issuer’s regulations and
interpretations of any Letter of Credit or by Issuing Lender’s interpretations of any Reimbursement Undertaking even though this 

 

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interpretation may be different from Borrower’s own (so long as any such regulations and interpretations are administered in good faith and without gross negligence), and Borrower
understands and agrees that none of the Issuing Lender, the Lender Group, or any Underlying Issuer shall be liable for any error, negligence, or mistake, whether of omission or commission, in following Borrower’s instructions or those contained
in the Letter of Credit or any modifications, amendments, or supplements thereto; provided, however, that Borrower shall not be obligated hereunder to indemnify for any loss, cost, expense, or liability that a court of competent
jurisdiction finally determines to have resulted from the gross negligence or willful misconduct of the Issuing Lender, any other member of the Lender Group, or any Underlying Issuer. Borrower understands that the Reimbursement Undertakings may
require Issuing Lender to indemnify the Underlying Issuer for certain costs or liabilities arising out of claims by Borrower against such Underlying Issuer. Borrower hereby agrees to indemnify, save, defend, and hold Issuing Lender and the other
members of the Lender Group harmless with respect to any loss, cost, expense (including reasonable attorneys fees), or liability incurred by them as a result of the Issuing Lender’s indemnification of an Underlying Issuer; provided,
however, that Borrower shall not be obligated hereunder to indemnify for any such loss, cost, expense, or liability resulting from the gross negligence or willful misconduct of the Issuing Lender or any other member of the Lender Group.
Borrower hereby acknowledges and agrees that none of the Issuing Lender, any other member of the Lender Group, or any Underlying Issuer shall be responsible for delays, errors, or omissions resulting from the malfunction of equipment in connection
with any Letter of Credit. 
 (d) Borrower hereby authorizes and directs any Underlying Issuer to deliver to the Issuing Lender
all instruments, documents, and other writings and property received by such Underlying Issuer pursuant to such Underlying Letter of Credit and to accept and rely upon the Issuing Lender’s instructions with respect to all matters arising in
connection with such Underlying Letter of Credit and the related application. 
 (e) Any and all issuance charges, usage
charges, commissions, fees, and costs incurred or charged (in each case, at the Issuing Lender’s customary rates therefor) by the Issuing Lender relating to Underlying Letters of Credit shall be Lender Group Expenses for purposes of this
Agreement and shall be reimbursable promptly, but in any event, within two Business Days by Borrower to Administrative Agent for the account of the Issuing Lender, it being acknowledged and agreed by Borrower that, the Underlying Issuer also imposes
a schedule of charges for amendments, extensions, drawings and renewals. 
 (f) If by reason of (i) any change after the
Closing Date in any applicable law, treaty, rule, or regulation or any change in the interpretation or application thereof by any Governmental Authority, or (ii) compliance by the Issuing Lender, any other member of the Lender Group, or
Underlying Issuer with any direction, request, or requirement (irrespective of whether having the force of law) of any Governmental Authority or monetary authority including, Regulation D of the Federal Reserve Board as from time to time in effect
(and any successor thereto): 
 (i) any reserve, deposit, or similar requirement is or shall be imposed or modified in respect
of any Letter of Credit issued or caused to be issued hereunder or hereby, or 
 (ii) there shall be imposed on the Issuing
Lender, any other member of the Lender Group, or Underlying Issuer any other condition regarding any Letter of Credit or Reimbursement Undertaking, 

and the result of the foregoing is to increase, directly or indirectly, the cost to the Issuing Lender, any other member of the Lender Group, or an
Underlying Issuer of issuing, making, guaranteeing, or maintaining any Reimbursement Undertaking or Letter of Credit or to reduce the amount receivable in respect thereof, then, and in any such case, Administrative Agent may, at any time within a

  

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reasonable period after the additional cost is incurred or the amount received is reduced, notify Borrower, and Borrower shall pay within 30 days after demand therefor, such amounts as
Administrative Agent may reasonably specify to be necessary to compensate the Issuing Lender, any other member of the Lender Group, or an Underlying Issuer for such additional cost or reduced receipt, together with interest on such amount from the
date of such demand until payment in full thereof at the rate then applicable to Base Rate Loans hereunder; provided, however, that Borrower shall not be required to provide any compensation pursuant to this Section 2.12(f)
for any such amounts incurred more than 180 days prior to the date on which the demand for payment is first made to Borrower; provided further, however, that if an event or circumstance giving rise to such amounts is
retroactive, then the 180-day period referred to above shall be extended to include the period of retroactive effect thereof. The determination by Administrative Agent of any amount due pursuant to this Section 2.12(f), as set forth in a
certificate setting forth the calculation thereof in reasonable detail, shall, in the absence of manifest or demonstrable error, be final and conclusive and binding on all of the parties hereto. 

2.12 LIBOR Option. 

(a) Interest and Interest Payment Dates. In lieu of having interest charged at the rate based upon the Base Rate, Borrower shall
have the option (the “LIBOR Option”) to have interest on all or a portion of the Advances be charged (whether at the time when made (unless otherwise provided herein), upon conversion from a Base Rate Loan to a LIBOR Rate Loan, or
upon continuation of a LIBOR Rate Loan as a LIBOR Rate Loan) at a rate of interest based upon the LIBOR Rate. Interest on LIBOR Rate Loans shall be payable on the earliest of (i) the last day of the Interest Period applicable thereto;
provided, however, that, subject to the following clauses (ii) and (iii), in the case of any Interest Period greater than 3 months in duration, interest shall be payable at 3 month intervals after the commencement of the
applicable Interest Period and on the last day of such Interest Period; (ii) the date on which all or any portion of the Obligations are accelerated pursuant to the terms hereof; or (iii) the date on which this Agreement is terminated
pursuant to the terms hereof. On the last day of each applicable Interest Period with respect to a LIBOR Rate Loan, unless Borrower properly has exercised the LIBOR Option with respect thereto or elected to convert such LIBOR Rate Loan to a Base
Rate Loan, such LIBOR Rate Loan automatically shall be continued as or converted to a LIBOR Rate Loan with a one month Interest Period. At any time that an Event of Default has occurred and is continuing, unless Administrative Agent elects
otherwise, Borrower no longer shall have the option to request that Advances bear interest at a rate based upon the LIBOR Rate. 

(b) LIBOR Election. 

(i) Borrower may, at any time and from time to time, so long as no Event of Default has occurred and is continuing, elect to exercise the
LIBOR Option by notifying Administrative Agent prior to 12:00 noon (New York, New York time) at least 3 Business Days prior to the commencement of the proposed Interest Period (the “LIBOR Deadline”). Notice of Borrower’s
election of the LIBOR Option for a permitted portion of the Advances and an Interest Period pursuant to this Section shall be made by delivery to Administrative Agent of a LIBOR Notice received by Administrative Agent before the LIBOR Deadline, or
by telephonic notice received by Administrative Agent before the LIBOR Deadline (to be confirmed by delivery to Administrative Agent of a LIBOR Notice received by Administrative Agent prior to 5:00 p.m. (New York, New York time) on the same day).
Promptly upon its receipt of each such LIBOR Notice, Administrative Agent shall provide a copy thereof to each of the affected Lenders. 

(ii) Each LIBOR Notice shall be irrevocable and binding on Borrower. In connection with each LIBOR Rate Loan, Borrower shall indemnify,
defend, and hold Administrative Agent and the Lenders harmless against any loss, cost, or expense 
  

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actually incurred by Administrative Agent or any Lender as a result of (A) the payment of any principal of any LIBOR Rate Loan other than on the last day of an Interest Period applicable
thereto (including as a result of an Event of Default), (B) the conversion of any LIBOR Rate Loan other than on the last day of the Interest Period applicable thereto, or (C) the failure to borrow, convert, continue or prepay any LIBOR
Rate Loan on the date specified in any LIBOR Notice delivered pursuant hereto (such losses, costs, or expenses, “Funding Losses”). A certificate of Administrative Agent or a Lender delivered to Borrower setting forth in reasonable
detail any amount or amounts that Administrative Agent or such Lender is entitled to receive pursuant to this Section 2.12 shall be conclusive absent manifest error. Borrower shall pay such amount to Administrative Agent or the Lender,
as applicable, within 30 days of the date of its receipt of such certificate. If a payment of a LIBOR Rate Loan on a day other than the last day of the applicable Interest Period would result in a Funding Loss, Administrative Agent may, in its sole
discretion at the request of Borrower, hold the amount of such payment as cash collateral in support of the Obligations until the last day of such Interest Period and apply such amounts to the payment of the applicable LIBOR Rate Loan on such last
day, it being agreed that Administrative Agent has no obligation to so defer the application of payments to any LIBOR Rate Loan and that, in the event that Administrative Agent does not defer such application, Borrower shall be obligated to pay any
resulting Funding Losses. 
 (iii) Borrower shall have not more than six LIBOR Rate Loans in effect at any given time. Borrower
only may exercise the LIBOR Option for proposed LIBOR Rate Loans of at least $1,000,000. 
 (c) Conversion. Borrower may
convert LIBOR Rate Loans to Base Rate Loans at any time; provided, however, that in the event that LIBOR Rate Loans are converted or prepaid on any date that is not the last day of the Interest Period applicable thereto, including as a
result of any automatic prepayment through the required application by Administrative Agent of proceeds of Borrower’s and its Subsidiaries’ Collections in accordance with Section 2.4(b) or for any other reason, including early
termination of the term of this Agreement or acceleration of all or any portion of the Obligations pursuant to the terms hereof, Borrower shall indemnify, defend, and hold Administrative Agent and the Lenders and their Participants harmless against
any and all Funding Losses in accordance with Section 2.12 (b)(ii). 
 (d) Special Provisions Applicable to LIBOR
Rate. 
 (i) The LIBOR Rate may be adjusted by Administrative Agent with respect to any Lender on a prospective basis to
take into account any additional or increased costs to such Lender of maintaining or obtaining any eurodollar deposits or increased costs, in each case, due to changes in applicable law occurring subsequent to the commencement of the then applicable
Interest Period, including changes in tax laws (but without duplication of any of Borrower’s obligations under Section 16 and in any event excluding changes in the imposition of, or any change in the rate of, income or similar taxes
applicable to such Lender) and changes in the reserve requirements imposed by the Board of Governors of the Federal Reserve System (or any successor), excluding the Reserve Percentage, which additional or increased costs would increase the cost of
funding or maintaining loans bearing interest at the LIBOR Rate. In any such event, the affected Lender shall give Borrower and Administrative Agent notice of such a determination and adjustment and Administrative Agent promptly shall transmit the
notice to each other Lender and, upon its receipt of the notice from the affected Lender, Borrower may, by notice to such affected Lender (y) require such Lender to furnish to Borrower a statement setting forth the basis for adjusting such
LIBOR Rate and the method for determining the amount of such adjustment, or (z) repay the LIBOR Rate Loans with respect to which such adjustment is made (together with any amounts due under Section 2.12(b)(ii)). 

 

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 (ii) In the event that any change in market conditions or any law, regulation, treaty, or
directive, or any change therein or in the interpretation or application thereof, shall at any time after the date hereof, in the reasonable opinion of any Lender, make it unlawful or impractical for such Lender to fund or maintain LIBOR Rate Loans
or to continue such funding or maintaining, or to determine or charge interest rates at the LIBOR Rate, such Lender shall give notice of such changed circumstances to Administrative Agent, and Borrower and Administrative Agent promptly shall
transmit the notice to each other Lender and (y) in the case of any LIBOR Rate Loans of such Lender that are outstanding, the date specified in such Lender’s notice shall be deemed to be the last day of the Interest Period of such LIBOR
Rate Loans, and interest upon the LIBOR Rate Loans of such Lender thereafter shall accrue interest at the rate then applicable to Base Rate Loans, and (z) Borrower shall not be entitled to elect the LIBOR Option until such Lender determines
that it would no longer be unlawful or impractical to do so. 
 (e) No Requirement of Matched Funding. Anything to the
contrary contained herein notwithstanding, neither Administrative Agent, nor any Lender, nor any of their Participants, is required actually to acquire eurodollar deposits to fund or otherwise match fund any Obligation as to which interest accrues
at the LIBOR Rate. 
 2.13 Capital Requirements. 

(a) If, after the date hereof, any Lender determines that (i) the adoption of or change in any law, rule, regulation or guideline
regarding capital requirements for banks or bank holding companies, or any change in the interpretation or application thereof by any Governmental Authority charged with the administration thereof, or (ii) compliance by such Lender or its
parent bank holding company with any guideline, request or directive of any such entity regarding capital adequacy (whether or not having the force of law), has the effect of reducing the return on such Lender’s or such holding company’s
capital as a consequence of such Lender’s Commitments hereunder to a level below that which such Lender or such holding company could have achieved but for such adoption, change, or compliance (taking into consideration such Lender’s or
such holding company’s then existing policies with respect to capital adequacy and assuming the full utilization of such entity’s capital) by any amount deemed by such Lender to be material, then such Lender may notify Borrower and
Administrative Agent thereof. Following receipt of such notice, Borrower agrees to pay such Lender on demand the amount of such reduction of return of capital as and when such reduction is determined, payable within 30 days after presentation by
such Lender of a statement in the amount and setting forth in reasonable detail such Lender’s calculation thereof and the assumptions upon which such calculation was based (which statement shall be deemed true and correct absent manifest
error). In determining such amount, such Lender may use any reasonable averaging and attribution methods. Failure or delay on the part of any Lender to demand compensation pursuant to this Section shall not constitute a waiver of such Lender’s
right to demand such compensation; provided that Borrower shall not be required to compensate a Lender pursuant to this Section for any reductions in return incurred more than 180 days prior to the date that such Lender notifies Borrower of
such law, rule, regulation or guideline giving rise to such reductions and of such Lender’s intention to claim compensation therefor; provided further that if such claim arises by reason of the adoption of or change in any law,
rule, regulation or guideline that is retroactive, then the 180-day period referred to above shall be extended to include the period of retroactive effect thereof. 

(b) If any Lender requests additional or increased costs referred to in Section 2.12(d)(i) or amounts under
Section 2.13(a) (any such Lender, an “Affected Lender”), then such Affected Lender shall use reasonable efforts to promptly designate a different one of its lending offices or to assign its rights and obligations
hereunder to another of its offices or branches, if (i) in the reasonable judgment of such Affected Lender, such designation or assignment would eliminate or reduce amounts payable pursuant to Section 2.12(d)(i) or
Section 2.13(a), as applicable, and (ii) in the reasonable judgment of such Affected Lender, such designation or 

 

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assignment would not subject it to any material unreimbursed cost or expense and would not otherwise be materially disadvantageous to it. Borrower agrees to pay all reasonable out-of-pocket costs
and expenses incurred by such Affected Lender in connection with any such designation or assignment. If, after such reasonable efforts, such Affected Lender does not so designate a different one of its lending offices or assign its rights to another
of its offices or branches so as to eliminate Borrower’s obligation to pay any future amounts to such Affected Lender pursuant to Section 2.12(d)(i) or Section 2.13(a), as applicable, then Borrower (without prejudice to
any amounts then due to such Affected Lender under Section 2.12(d)(i) or Section 2.13(a), as applicable) may, unless prior to the effective date of any such assignment the Affected Lender withdraws its request for such
additional amounts under Section 2.12(d)(i) or Section 2.13(a), as applicable, may seek a substitute Lender reasonably acceptable to Administrative Agent to purchase the Obligations owed to such Affected Lender and such
Affected Lender’s Commitments hereunder (a “Replacement Lender”), and if such Replacement Lender agrees to such purchase, such Affected Lender shall assign to the Replacement Lender its Obligations and Commitments, pursuant to
an Assignment and Acceptance Agreement, and upon such purchase by the Replacement Lender, such Replacement Lender shall be deemed to be a “Lender” for purposes of this Agreement and such Affected Lender shall cease to be a
“Lender” for purposes of this Agreement. 
  

	3	CONDITIONS; TERM OF AGREEMENT. 

3.1 Conditions Precedent to the Initial Extension of Credit. The obligation of each Lender (including the Issuing Lender) to
make its initial extension of credit provided for hereunder is subject to the fulfillment, to the reasonable satisfaction of Administrative Agent and each Lender of each of the conditions precedent set forth on Schedule 3.1 (the making of
such initial extension of credit by a Lender being conclusively deemed to be its satisfaction or waiver of the conditions precedent). 

3.2 Conditions Precedent to all Extensions of Credit. The obligation of the Lender Group (or any member thereof) to make
any Advances hereunder (or to extend any other credit hereunder, including the issuance, amendment, renewal or extension of any Letter of Credit) at any time shall be subject to the following conditions precedent: 

(a) the representations and warranties of Borrower and its Subsidiaries contained in this Agreement or in the other Loan Documents shall
be true and correct in all material respects (except that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof) on and as of the date of
such extension of credit, as though made on and as of such date (except to the extent that such representations and warranties relate solely to an earlier date); 

(b) since March 31, 2009, no event, circumstance, or change has occurred that has or could reasonably be expected to result in a
Material Adverse Change; and 
 (c) no Default or Event of Default shall have occurred and be continuing on the date of such
extension of credit, nor shall either result from the making thereof. 
 3.3 Maturity. This Agreement shall
continue in full force and effect for a term ending on July 1, 2012 (the “Maturity Date”). The foregoing notwithstanding, the Lender Group, upon the election of the Required Lenders, shall have the right to terminate its
obligations under this Agreement immediately and without notice upon the occurrence and during the continuation of an Event of Default. 

3.4 Effect of Maturity/Termination. On the Maturity Date or other termination of the Commitments, (a) all commitments
to provide additional credit hereunder shall automatically be terminated, (b) all Obligations (other than contingent reimbursement 

 

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obligations of Borrower with respect to outstanding Letters of Credit and Bank Product Obligations) immediately shall become due and payable without notice or demand, and (c) Borrower shall
provide (i) Letter of Credit Collateralization with respect to all outstanding Letters of Credit, and (ii) Bank Product Collateralization to the extent contemplated in the definition thereof and in Section 17.5(c). No
termination of the obligations of the Lender Group shall relieve or discharge any Loan Party of its duties, Obligations, or covenants hereunder or under any other Loan Document and Administrative Agent’s Liens in the Collateral shall remain in
effect until all Obligations (other than contingent reimbursement obligations of Borrower with respect to Letters of Credit and Bank Product Obligations) have been paid in full and Borrower has provided all Letter of Credit Collateralization and
Bank Product Collateralization described above. When all of the Obligations (other than contingent reimbursement obligations of Borrower with respect to Letters of Credit and Bank Product Obligations) have been paid in full, the Lender Group’s
obligations to provide additional credit under the Loan Documents have been terminated irrevocably, and Borrower has provided all Letter of Credit Collateralization and Bank Product Collateralization described above, Administrative Agent will, at
Borrower’s sole expense, execute and deliver any termination statements, lien releases, discharges of security interests, and other similar discharge or release documents (and, if applicable, in recordable form) as are reasonably necessary to
release, as of record, Administrative Agent’s Liens and all notices of security interests and liens previously filed by Administrative Agent with respect to the Obligations. 

3.5 Conditions Subsequent. The obligation of the Lender Group (or any member thereof) to continue to make Advances (or
otherwise extend credit hereunder) is subject to the fulfillment, on or before the date applicable thereto, of the conditions subsequent set forth on Schedule 3.5 (the failure by Borrower to so perform or cause to be performed such conditions
subsequent as and when required by the terms thereof, shall constitute an immediate Event of Default). 
 3.6 Early
Termination by Borrower. Borrower has the option, at any time upon 10 Business Days prior written notice to Administrative Agent, to terminate this Agreement and the other Loan Documents and to terminate the Commitments hereunder by paying
to Administrative Agent the Obligations (including (a) providing Letter of Credit Collateralization with respect to the then outstanding Letters of Credit, and (b) providing Bank Product Collateralization to the extent contemplated in the
definition thereof and in Section 17.5(c)) in full. 
  

	4	REPRESENTATIONS AND WARRANTIES. 

In order to induce the Lender Group to enter into this Agreement, Borrower makes the following representations and warranties to the
Lender Group which shall be true, correct, and complete, in all material respects (except that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text
thereof), as of the Closing Date, and shall be true, correct, and complete, in all material respects (except that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by
materiality in the text thereof), as of the date of the making of each Advance (or other extension of credit) made thereafter, as though made on and as of the date of such Advance (or other extension of credit) (except to the extent, in each case,
that such representations and warranties relate solely to an earlier date) and such representations and warranties shall survive the execution and delivery of this Agreement: 

4.1 Due Organization and Qualification; Subsidiaries. 

(a) Each Loan Party (i) is duly organized and existing and in good standing under the laws of the jurisdiction of its organization,
(ii) qualified to do business in any state where the failure to be so qualified reasonably could be expected to result in a 

 

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Material Adverse Change, and (iii) has all requisite power and authority to own and operate its properties, to carry on its business as now conducted and as proposed to be conducted, to
enter into the Loan Documents to which it is a party and to carry out the transactions contemplated thereby. 
 (b) Set forth on
Schedule 4.1(b) is a complete and accurate description of the issued and outstanding membership interests of Borrower as of the Closing Date. Other than as described on Schedule 4.1(b) or created pursuant to the Joint Venture
Documents, there are no subscriptions, options, warrants, or calls relating to Borrower’s membership interests, including any right of conversion or exchange under any outstanding security or other instrument. Other than as created pursuant to
the Joint Venture Documents, Borrower is not subject to any obligation (contingent or otherwise) to repurchase or otherwise acquire any of its membership interests or any security convertible into or exchangeable for any of its membership interests.

 (c) Set forth on Schedule 4.1(c) (as such Schedule may be updated from time to time to reflect changes permitted to be
made under Section 5.11 or with respect to other changes relating to the matters described in clauses (i) and (ii) below that are not materially adverse to the interests of the Lenders), is a complete and accurate
list of the Loan Parties’ direct and indirect Subsidiaries, showing: (i) the number of shares of each class of common and preferred Stock authorized for each of such Subsidiaries, and (ii) the number and the percentage of the
outstanding shares of each such class owned directly or indirectly by Borrower. All of the outstanding capital Stock of each such Subsidiary has been validly issued and is fully paid and non-assessable. 

(d) Except as set forth on Schedule 4.1(c) or created pursuant to the Joint Venture Documents, there are no subscriptions,
options, warrants, or calls relating to any shares of Borrower’s Subsidiaries’ capital Stock, including any right of conversion or exchange under any outstanding security or other instrument. Neither Borrower nor any of its Subsidiaries is
subject to any obligation (contingent or otherwise) to repurchase or otherwise acquire or retire any shares of Borrower’s Subsidiaries’ capital Stock or any security convertible into or exchangeable for any such capital Stock. 

4.2 Due Authorization; No Conflict. 

(a) As to each Loan Party, the execution, delivery, and performance by such Loan Party of the Loan Documents to which it is a party have
been duly authorized by all necessary action on the part of such Loan Party. 
 (b) As to each Loan Party, the execution,
delivery, and performance by such Loan Party of the Loan Documents to which it is a party do not and will not (i) violate any material provision of federal, state, or local law or regulation applicable to any Loan Party or its Subsidiaries, the
Governing Documents of any Loan Party or its Subsidiaries, or any order, judgment, or decree of any court or other Governmental Authority binding on any Loan Party or its Subsidiaries, (ii) conflict with, result in a breach of, or constitute
(with due notice or lapse of time or both) a default under any Material Contract of any Loan Party or its Subsidiaries except to the extent that any such conflict, breach or default could not individually or in the aggregate reasonably be expected
to have a Material Adverse Change, (iii) result in or require the creation or imposition of any Lien of any nature whatsoever upon any assets of any Loan Party, other than Permitted Liens, or (iv) require any approval of any Loan
Party’s interestholders or any approval or consent of any Person under any Material Contract of any Loan Party, other than consents or approvals that have been obtained and that are still in force and effect and except, in the case of Material
Contracts, for consents or approvals, the failure to obtain could not individually or in the aggregate reasonably be expected to cause a Material Adverse Change. 

 

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 4.3 Governmental Consents. The execution, delivery, and performance by each
Loan Party of the Loan Documents to which such Loan Party is a party and the consummation of the transactions contemplated by the Loan Documents do not and will not require any registration with, consent, or approval of, or notice to, or other
action with or by, any Governmental Authority, other than registrations, consents, approvals, notices, or other actions that have been obtained and that are still in force and effect and except for filings and recordings with respect to the
Collateral to be made, or otherwise delivered to Administrative Agent for filing or recordation, as of the Closing Date, except to the extent that the failure to obtain any of the foregoing could not reasonably be expected to cause, individually or
in the aggregate, a Material Adverse Change. 
 4.4 Binding Obligations; Perfected Liens. 

(a) This Agreement has been, and each other Loan Document when delivered hereunder will have been, duly executed and delivered by each
Loan Party that is a party thereto and this Agreement is, and each other Loan Document when delivered hereunder will be, the legally valid and binding obligation of such Loan Party, enforceable against such Loan Party in accordance with its
respective terms, except as enforcement may be limited by equitable principles or by bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or limiting creditors’ rights generally. 

(b) Administrative Agent’s Liens on the Collateral pursuant to the Loan Documents which have been delivered hereunder are validly
created and perfected to the extent a security interest may be created pursuant to Article 9 of the Code (subject to the filing of financing statements), and are first priority Liens, subject only to Permitted Liens and the matters described in
Schedule 3.5. 
 4.5 Title to Assets; No Encumbrances. Each of the Loan Parties and its Subsidiaries has
(i) good, sufficient and legal title to (in the case of fee interests in Real Property), (ii) valid leasehold interests in (in the case of leasehold interests in real or personal property), and (iii) good and marketable title to (in
the case of all other personal property), all of their respective assets reflected in their most recent financial statements delivered pursuant to Section 5.1, in each case except for assets disposed of since the date of such financial
statements to the extent permitted hereby (or, in the case of financial statements with respect to periods prior to the Closing Date, as disposed of pursuant to the Joint Venture Documents) and, except to the extent the failure to obtain the same
could not reasonably be expected to cause, individually or in the aggregate, a Material Adverse Change. All of such assets are free and clear of Liens except for Permitted Liens. 

4.6 Jurisdiction of Organization; Location of Chief Executive Office; Organizational Identification Number; Commercial Tort
Claims. 
 (a) The name of (within the meaning of Section 9-503 of the Code) and jurisdiction of organization of
each Loan Party and each of its Subsidiaries is set forth on Schedule 4.6(a) (as such Schedule may be updated from time to time to reflect changes permitted to be made under Section 6.5). 

(b) The chief executive office of each Loan Party and each of its Subsidiaries is located at the address indicated on Schedule
4.6(b) (as such Schedule may be updated from time to time to reflect changes permitted to be made under Section 5.15). 

(c) Each Loan Party’s and each of its Subsidiaries’ tax identification numbers and organizational identification numbers, if
any, are identified on Schedule 4.6(c) (as such Schedule may be updated from time to time to reflect changes permitted to be made under Section 6.5). 
  

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 4.7 Litigation. 

(a) There are no actions, suits, or proceedings pending or, to the best knowledge of Borrower, threatened in writing against a Loan Party
or any of its Subsidiaries that either individually or in the aggregate could reasonably be expected to result in a Material Adverse Change. 

(b) Schedule 4.7(b) sets forth a description, with respect to each of the actions, suits, or proceedings with asserted liabilities
in excess of, or that could reasonably be expected to result in liabilities in excess of, $2,000,000 that, as of the Closing Date, is pending or, to the best knowledge of Borrower, threatened against a Loan Party or any of its Subsidiaries.

 4.8 Compliance with Laws. No Loan Party nor any of its Subsidiaries (a) is in violation of any applicable
laws, rules, regulations, executive orders, or codes (including Environmental Laws) that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Change, or (b) is subject to or in default with respect to
any final judgments, writs, injunctions, decrees, rules or regulations of any court or any federal, state, municipal or other governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign, that, individually or
in the aggregate, could reasonably be expected to result in a Material Adverse Change. 
 4.9 Financial
Statements. 
 (a) As of the Closing Date, the financial statements relating to Comfort Products Distributing LLC, a
Delaware limited liability company (“Comfort Products”), that have been delivered by Borrower to Administrative Agent are the “Comfort Products Financial Statements” as defined in Section 4.09(a) of the Joint Venture
Agreement and (i) have been prepared from the books and records of Comfort Products in accordance with GAAP consistently applied during the periods covered thereby (except (A) as otherwise disclosed therein and (B) for failures to be
so prepared that would not result in an unfair presentation of the financial position and the results of operations of Comfort Products) and (ii) fairly present in all material respects the financial position and the results of operations of
Comfort Products as of the dates and during the periods therein. 
 (b) As of the Closing Date, the financial statements
relating to Borrower and the Division Entities that have been delivered by Borrower to Administrative Agent are the “Financial Statements” as defined in Section 3.08(a) of the Joint Venture Agreement and (i) have been prepared
from the books and records of the Borrower and the Division Entities (except (A) as otherwise disclosed therein and (B) for failures to be so prepared that would not result in an unfair presentation of the financial position and the
results of operations of the Borrower and the Division Entities, in the aggregate, on the basis of presentation outlined in the Financial Statements); (ii) have been prepared in the manner set forth in Financial Statements; and
(iii) fairly present in all material respects the financial position and the results of operations of Borrower and the Division Entities, in the aggregate, on the basis of presentation outlined in the Financial Statements. 

(c) All historical financial statements relating to the Loan Parties and their Subsidiaries (except in all cases, the financial
statements referenced in the foregoing Sections 4.9(a) and 4.9(b)) that have been delivered by Borrower to Administrative Agent have been prepared in accordance with GAAP (except, in the case of unaudited financial statements, for
the lack of footnotes and being subject to year-end audit adjustments) and present fairly in all material respects, the Loan Parties’ and their Subsidiaries’ consolidated financial condition as of the date thereof and results of operations
for the period then ended. 
 4.10 Fraudulent Transfer. 

(a) Each Loan Party is Solvent. 
  

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 (b) No transfer of property is being made by any Loan Party and no obligation is being
incurred by any Loan Party in connection with the transactions contemplated by this Agreement or the other Loan Documents with the intent to hinder, delay, or defraud either present or future creditors of such Loan Party. 

4.11 Employee Benefits. No ERISA Event has occurred or is reasonably expected to occur that, when taken together with all
other such ERISA Events for which liability is reasonably expected to occur, could reasonably be expected to result in a Material Adverse Change. 

4.12 Environmental Condition. Except as set forth on Schedule 4.12, (a) to Borrower’s knowledge, no Loan
Party’s or its Subsidiaries’ properties or assets has ever been used by a Loan Party, its Subsidiaries, or, to Borrower’s knowledge, by previous owners or operators in the disposal of, or to produce, store, handle, treat, release, or
transport, any Hazardous Materials, where such disposal, production, storage, handling, treatment, release or transport was in violation, in any material respect, of any applicable Environmental Law, except to the extent such violation would not
reasonably be expected to be material to the Borrower and its Subsidiaries, taken as a whole, (b) to Borrower’s knowledge, no Loan Party’s or its Subsidiaries’ properties or assets has ever been designated or identified in any
manner pursuant to any environmental protection statute as a Hazardous Materials disposal site, (c) no Loan Party nor any of its Subsidiaries nor any of their respective facilities or operations is subject to any outstanding written order,
consent decree, or settlement agreement with any Person relating to any Environmental Law or Environmental Liability that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Change. 

4.13 Intellectual Property. Each Loan Party and its Subsidiaries own, or hold licenses in, all trademarks, trade names,
copyrights, patents, and licenses that are necessary to the conduct of its business as currently conducted, and attached hereto as Schedule 4.13 (as updated from time to time) is a true, correct, and complete (in all material respects)
listing of all material trademarks, trade names, copyrights, patents, and licenses of Borrower or one of its Subsidiaries registered with any Governmental Authority; provided, however, that Borrower may amend Schedule 4.13 to
add intellectual property acquired after the Closing Date so long as such amendment occurs by written notice to Administrative Agent at the time that Borrower provides its quarterly financial statements pursuant to Section 5.1.

 4.14 Leases. Each Loan Party and its Subsidiaries enjoy peaceful and undisturbed possession under all leases
material to their business and to which they are parties or under which they are operating, and, subject to Permitted Protests, all of such material leases are valid and subsisting and no material default by the applicable Loan Party or its
Subsidiaries exists under any of them, except to the extent any impairment under such leases could not reasonably be expected to cause, individually or in the aggregate, a Material Adverse Change. 

4.15 Deposit Accounts and Securities Accounts. Set forth on Schedule 4.15 (as updated pursuant to the provisions of
the Security Agreement from time to time) is a listing of all of the Loan Parties’ and their Subsidiaries’ Deposit Accounts and Securities Accounts, including, with respect to each bank or securities intermediary (a) the name and
address of such Person, and (b) the account numbers of the Deposit Accounts or Securities Accounts maintained with such Person. 

4.16 Complete Disclosure. All factual information (taken as a whole) furnished by or on behalf of a Loan Party or its
Subsidiaries in writing to Administrative Agent or any Lender (including all information contained in the Schedules hereto or in the other Loan Documents) for purposes of or in connection with this Agreement, the other Loan Documents, or any
transaction contemplated herein or therein is, and all other such factual information (taken as a whole) hereafter furnished by or on behalf of a Loan Party or its Subsidiaries in writing to Administrative Agent or any Lender will be, true and
accurate, in all material respects, on 
  

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the date as of which such information is dated or certified and not incomplete by omitting to state any fact necessary to make such information (taken as a whole) not misleading in any material
respect at such time in light of the circumstances under which such information was provided. The Projections that were most recently delivered to Administrative Agent (and were accepted by Administrative Agent) prior to the Closing Date represent
Borrower’s good faith estimate as of the Closing Date of the Loan Parties’ and their Subsidiaries future performance for the periods covered thereby based upon assumptions believed by Borrower to be reasonable as of the Closing Date (it
being understood that such Projections are subject to uncertainties and contingencies which are beyond the control of the Loan Parties and their Subsidiaries, and no assurances can be given that such Projections will be realized). As of the date on
which any other Projections are delivered to Administrative Agent, such additional Projections represent Borrower’s good faith estimate of the Loan Parties’ and their Subsidiaries future performance for the periods covered thereby based
upon assumptions believed by Borrower to be reasonable at the time of the delivery thereof to Administrative Agent (it being understood that such Projections are subject to uncertainties and contingencies which are beyond the control of the Loan
Parties and their Subsidiaries, and no assurances can be given that such Projections will be realized). 
 4.17 Material
Contracts. Set forth on Schedule 4.17 is a list of the Material Contracts of each Loan Party and its Subsidiaries as of the Closing Date. Except for matters which, either individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Change, each Material Contract (other than those that have expired at the end of their normal terms, including those entered into or amended after the Closing Date) (a) is in full force and effect and is
binding upon and enforceable against the applicable Loan Party or its Subsidiary and, to Borrower’s knowledge, each other Person that is a party thereto in accordance with its terms, (b) has not been otherwise amended or modified (other
than amendments or modifications permitted by Section 6.7(b)), and (c) is not in default due to the action or inaction of the applicable Loan Party or its Subsidiary. 

4.18 Patriot Act. To the extent applicable, each Loan Party is in compliance, in all material respects, with the
(a) Trading with the Enemy Act, as amended, and each of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) and any other enabling legislation or executive order relating
thereto, and (b) Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA Patriot Act of 2001) (the “Patriot Act”). No part of the proceeds of the loans made hereunder
will be used, directly or indirectly, for any payments to any governmental official or employee, political party, official of a political party, candidate for political office, or anyone else acting in an official capacity, in order to obtain,
retain or direct business or obtain any improper advantage, in violation of the United States Foreign Corrupt Practices Act of 1977, as amended. 

4.19 Indebtedness. Set forth on Schedule 4.19 is a true and complete list of all material Indebtedness of each Loan
Party and each of its Subsidiaries outstanding immediately prior to the Closing Date that is to remain outstanding after the Closing Date and such Schedule accurately sets forth the aggregate principal amount of such Indebtedness as of the Closing
Date. 
 4.20 Payment of Taxes. Except as otherwise permitted under Section 5.5 or not material to
Borrower and its Subsidiaries, taken as a whole, all tax returns and reports of each Loan Party and its Subsidiaries required to be filed by any of them have been timely filed, and all taxes shown on such tax returns to be due and payable and all
assessments, fees and other governmental charges upon a Loan Party and its Subsidiaries and upon their respective assets, income, businesses and franchises that are due and payable have been paid when due and payable. Each Loan Party and each of its
Subsidiaries have made adequate provision in accordance with GAAP for all taxes not yet due and payable. No Loan Party nor any of its Subsidiaries has ever been a party to any understanding or arrangement constituting a “tax shelter”
within the meaning of Section 6662(d)(2)(C)(iii) of the IRC or within the meaning of 
  

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Section 6111(c) or Section 6111(d) of the IRC as in effect immediately prior to the enactment of the American Jobs Creation Act of 2004, or has ever “participated” in a
“reportable transaction” within the meaning of Treasury Regulation Section 1.6011-4, except as would not be reasonably expected to, individually or in the aggregate, result in a Material Adverse Change. 

4.21 Margin Stock. No Loan Party nor any of its Subsidiaries is engaged principally, or as one of its important activities,
in the business of extending credit for the purpose of purchasing or carrying any Margin Stock. No part of the proceeds of the loans made to Borrower will be used to purchase or carry any such Margin Stock or to extend credit to others for the
purpose of purchasing or carrying any such margin stock or for any purpose that violates, or is inconsistent with, the provisions of Regulation T, U or X of said Board of Governors. 

4.22 Governmental Regulation. No Loan Party nor any of its Subsidiaries is subject to regulation under the Federal
Power Act or the Investment Company Act of 1940 or under any other federal or state statute or regulation which may limit its ability to incur Indebtedness or which may otherwise render all or any portion of the Obligations unenforceable. No Loan
Party nor any of its Subsidiaries is a “registered investment company” or a company “controlled” by a “registered investment company” or a “principal underwriter” of a “registered investment company”
as such terms are defined in the Investment Company Act of 1940. 
 4.23 OFAC. No Loan Party nor any of its
Subsidiaries is in violation of any of the country or list based economic and trade sanctions administered and enforced by OFAC. No Loan Party nor any of its Subsidiaries (a) is a Sanctioned Person or a Sanctioned Entity, (b) has more than
10% of its assets located in Sanctioned Entities, or (c) derives more than 10% of its revenues from investments in, or transactions with Sanctioned Persons or Sanctioned Entities. The proceeds of any Advance will not be used to fund any
operations in, finance any investments or activities in, or make any payments to, a Sanctioned Person or a Sanctioned Entity. 

4.24 Employee and Labor Matters. Except as such could not reasonably be expected to cause, individually or in the
aggregate, a Material Adverse Change, there is (i) no unfair labor practice complaint pending or, to the knowledge of Borrower, threatened in writing against Borrower or its Subsidiaries before any Governmental Authority and no grievance or
arbitration proceeding pending or, to the knowledge of the Borrower, threatened in writing against Borrower or its Subsidiaries which arises out of or under any collective bargaining agreement or (ii) no strike, labor dispute, slowdown,
stoppage or similar action or grievance pending or, to the knowledge of the Borrower, threatened in writing against Borrower or its Subsidiaries. 

4.25 Joint Venture Documents. 

(a) Borrower has delivered to Administrative Agent a complete and correct copy of the Joint Venture Documents, including all schedules and
exhibits thereto. 
 (b) As of the Closing Date, the Joint Venture Transaction has been consummated in all material respects in
accordance with the Joint Venture Documents and all applicable laws. As of the Closing Date, all requisite approvals by Governmental Authorities having jurisdiction over Borrower and its Affiliates with respect to the Joint Venture Transaction have
been obtained (including filings or approvals required under the Hart-Scott-Rodino Antitrust Improvements Act), except for any approval the failure to obtain could not reasonably be expected to be materially adverse to the interests of the Lenders.
As of the Closing Date, after giving effect to the transactions contemplated by the Joint Venture Documents, Borrower will have good title to the Joint Venture Assets, except to the extent the failure to obtain the same could not reasonably be
expected to cause, individually or in the aggregate, a Material Adverse Change. All of such Joint Venture Assets are free and clear of Liens except for Permitted Liens. 
  

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	5	AFFIRMATIVE COVENANTS. 

Borrower covenants and agrees that, until termination of all of the Commitments and payment in full of the Obligations, the Loan Parties
shall and shall cause each of their Subsidiaries to comply with each of the following: 
 5.1 Financial Statements,
Reports, Certificates. Deliver to Administrative Agent each of the financial statements, reports, and other items set forth on Schedule 5.1 at the times specified therein. In addition, Borrower agrees that no Subsidiary of a
Loan Party will have a fiscal year different from that of Borrower. In addition, Borrower agrees to maintain a system of accounting that enables Borrower to produce financial statements in accordance with GAAP. 

5.2 Collateral Reporting. Provide Administrative Agent with each of the reports set forth on Schedule 5.2 at
the times specified therein. 
 5.3 Existence. Except as otherwise permitted under Section 6.3
at all times maintain and preserve in full force and effect its existence and except to the extent that the failure to maintain and preserve the same could not, individually or in the aggregate, reasonably be expected to cause a Material Adverse
Change, all rights and franchises, licenses and permits material to its business. 
 5.4 Maintenance of
Properties. Maintain and preserve all of its assets that are necessary in the proper conduct of its business in good working order and condition, ordinary wear, tear and casualty, and Permitted Dispositions, excepted, and comply with
the material provisions of all material leases to which it is a party as lessee so as to prevent the loss or forfeiture thereof, unless such provisions are the subject of a Permitted Protest. 

5.5 Taxes. Cause all assessments and taxes imposed, levied, or assessed against any Loan Party or its Subsidiaries,
or any of their respective assets or in respect of any of its income, businesses, or franchises to be paid in full, before delinquency or before the expiration of any extension period, except to the extent that the validity of such assessment or tax
shall be the subject of a Permitted Protest and so long as, in the case of an assessment or tax that has or may become a Lien against any of the Collateral, such contest proceedings conclusively operate to stay the sale of any portion of the
Collateral to satisfy such assessment or tax. Borrower will and will cause each of its Subsidiaries to make timely payment or deposit of all tax payments and withholding taxes required of it and them by applicable laws, including those laws
concerning F.I.C.A., F.U.T.A., state disability, and local, state, and federal income taxes, and will, upon request, furnish Administrative Agent with proof reasonably satisfactory to Administrative Agent indicating that Borrower and its
Subsidiaries have made such payments or deposits. 
 5.6 Insurance. At Borrower’s expense, maintain insurance
respecting each of the Loan Parties’ and their Subsidiaries’ assets wherever located, covering loss or damage by fire, theft, explosion, and all other hazards and risks as ordinarily are insured against by other Persons engaged in the same
or similar businesses. Borrower also shall maintain (with respect to each of the Loan Parties and their Subsidiaries) business interruption, general liability, product liability insurance, director’s and officer’s liability insurance,
fiduciary liability insurance, and employment practices liability insurance, as well as insurance against larceny, embezzlement, and criminal misappropriation. All such policies of insurance shall be with responsible and reputable insurance
companies acceptable to Administrative Agent and in such amounts as is carried generally in accordance with sound business practice by companies in similar businesses similarly situated and located. All property insurance policies covering the
Collateral are to be made payable to 
  

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Administrative Agent, as its interests may appear, in case of loss, pursuant to a standard loss payable endorsement with a standard non contributory “lender” or “secured
party” clause and are to contain such other provisions as Administrative Agent may reasonably require to fully protect its interest in the Collateral and to any payments to be made under such policies. All certificates of property and general
liability insurance are to be delivered to Administrative Agent, with the loss payable (but only in respect of Collateral) and additional insured endorsements in favor of Administrative Agent and shall provide for not less than 30 days (10 days in
the case of non-payment) prior written notice to Administrative Agent of the exercise of any right of cancellation. If Borrower fails to maintain such insurance, Administrative Agent may arrange for such insurance, but at Borrower’s expense and
without any responsibility on Administrative Agent’s part for obtaining the insurance, the solvency of the insurance companies, the adequacy of the coverage, or the collection of claims, and will give notice to Borrower if Administrative Agent
has done so. Borrower shall give Administrative Agent prompt notice of any loss exceeding $3,000,000 covered by its casualty or business interruption insurance. Upon the occurrence and during the continuance of an Event of Default, Administrative
Agent shall have the sole right to file claims under any property insurance policies in respect of the Collateral, to receive, receipt and give acquittance for any payments that may be payable thereunder, and to execute any and all endorsements,
receipts, releases, assignments, reassignments or other documents that may be necessary to effect the collection, compromise or settlement of any claims under any such insurance policies. 

5.7 Inspection. Permit Administrative Agent and/or any Lender, and each of their respective duly authorized representatives
or agents, to visit any of its properties and inspect and audit any of its assets or books and records, to conduct appraisals, to examine and make copies of its books and records, and to discuss its affairs, finances, and accounts with, and to be
advised as to the same by, its officers and employees at such reasonable times and intervals as Administrative Agent and/or any Lender may designate and, so long as no Event of Default exists, with reasonable prior notice to Borrower. 

5.8 Compliance with Laws. Comply with the requirements of all applicable laws, rules, regulations, and orders of any
Governmental Authority, other than laws, rules, regulations, and orders the non-compliance with which, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Change. 

5.9 Environmental. 

(a) Keep any property either owned or operated by Borrower or its Subsidiaries free of any Environmental Liens or post bonds or other
financial assurances sufficient to satisfy the obligations or liability evidenced by such Environmental Liens, 
 (b) comply
with Environmental Laws except to the extent that non-compliance therewith, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Change, 

(c) promptly notify Administrative Agent of any release of which Borrower has knowledge of a Hazardous Material in any reportable
quantity from or onto property owned or operated by Borrower or its Subsidiaries and take any Remedial Actions required by applicable Environmental Law to abate said release or otherwise to come into compliance with applicable Environmental Law, to
the extent failure to so comply could reasonably be expected to result in a Material Adverse Change, and 
 (d) promptly, but in
any event within 30 days of its receipt thereof, provide Administrative Agent with written notice of any of the following: (i) written notice that an Environmental Lien has been filed against any of the real or personal property of Borrower or
its Subsidiaries, (ii) commencement of any Environmental Action or written notice that an Environmental Action will be 
  

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filed against Borrower or its Subsidiaries, and (iii) written notice of a violation, citation, or other administrative order issued pursuant to any applicable Environmental Law which could
reasonably be expected to result in a Material Adverse Change. 
 5.10 Disclosure Updates. Promptly and in
no event later than 30 days after obtaining knowledge thereof, notify Administrative Agent if any written information, exhibit, or report furnished to the Lender Group contained, at the time it was furnished, any untrue statement of a material fact
or omitted to state any material fact necessary to make the statements contained therein not misleading in light of the circumstances in which made. The foregoing to the contrary notwithstanding, any notification pursuant to the foregoing provision
will not cure or remedy the effect of the prior untrue statement of a material fact or omission of any material fact nor shall any such notification have the effect of amending or modifying this Agreement or any of the Schedules hereto. 

5.11 Formation of Subsidiaries. At the time that any Loan Party forms any direct or indirect Subsidiary or acquires
any direct or indirect Subsidiary after the Closing Date, such Loan Party shall (a) within 30 days of such formation or acquisition cause any such new Subsidiary to provide to Administrative Agent a joinder to the Guaranty and the Security
Agreement, together with such other security documents, as well as appropriate financing statements, all in form and substance reasonably satisfactory to Administrative Agent (including being sufficient to grant Administrative Agent a first priority
Lien (subject to Permitted Liens) in and to the assets of such newly formed or acquired Subsidiary); provided that the Guaranty, the Security Agreement, and such other security documents shall not be required to be provided to Administrative
Agent with respect to any Subsidiary of Borrower that is a Foreign Subsidiary, (b) within 30 days of such formation or acquisition (or such later date as permitted by Administrative Agent in its sole discretion) provide to Administrative Agent
a pledge agreement and appropriate certificates and powers or financing statements, hypothecating all of the direct or beneficial ownership interest in such new Subsidiary reasonably satisfactory to Administrative Agent; provided that only
65% of the total outstanding voting Stock of any first tier Subsidiary of Borrower that is a Foreign Subsidiary and none of the total outstanding voting Stock of any other Subsidiary of such Foreign Subsidiary shall be required to be pledged, and
(c) within 30 days of such formation or acquisition (or such later date as permitted by Administrative Agent in its sole discretion) provide to Administrative Agent all other documentation, including one or more opinions of counsel reasonably
satisfactory to Administrative Agent, which in its opinion is appropriate with respect to the execution and delivery of the applicable documentation referred to above. Any document, agreement, or instrument executed or issued pursuant to this
Section 5.11 shall be a Loan Document. 
 5.12 Further Assurances. At any time upon the
reasonable request of Administrative Agent, execute or deliver to Administrative Agent any and all financing statements, fixture filings, security agreements, pledges, assignments, endorsements of certificates of title, opinions of counsel, and all
other documents (collectively, the “Additional Documents”) that Administrative Agent may reasonably request in form and substance reasonably satisfactory to Administrative Agent, to create, perfect, and continue perfected or to
better perfect Administrative Agent’s Liens in all of the personal property of Borrower and its Subsidiaries (whether now owned or hereafter arising or acquired, tangible or intangible), and in order to fully consummate all of the transactions
contemplated hereby and under the other Loan Documents; provided that the foregoing shall not apply to any Subsidiary of Borrower that is a Foreign Subsidiary. To the maximum extent permitted by applicable law, Borrower authorizes
Administrative Agent to execute any such Additional Documents in the applicable Loan Party’s or its Subsidiary’s name, as applicable, and authorizes Administrative Agent to file such executed Additional Documents in any appropriate filing
office; provided, that Administrative Agent shall provide Borrower with prompt notice if Administrative Agent has done so. In furtherance and not in limitation of the foregoing, each Loan Party shall take such actions as Administrative Agent
may reasonably request from time to time to ensure that the Obligations are guarantied by the Guarantors and are secured by substantially all of the personal property of Borrower and its Subsidiaries and all of the outstanding capital Stock of
Borrower’s Subsidiaries (subject to limitations contained in the Loan Documents with respect to Foreign Subsidiaries). 
  

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 5.13 Lender Meetings. Within 90 days after the close of each fiscal year of
Borrower, at the request of Administrative Agent or of the Required Lenders and upon reasonable prior notice, hold a meeting (at a mutually agreeable location and time or, at the option of Administrative Agent, by conference call) with all Lenders
who choose to attend such meeting at which meeting shall be reviewed the financial results of the previous fiscal year and the financial condition of Borrower and its Subsidiaries and the projections presented for the current fiscal year of
Borrower. 
 5.14 Material Contracts. Contemporaneously with the delivery of (a) each Compliance
Certificate pursuant hereto, provide Administrative Agent with copies of (i) each Material Contract of the type described in clause (b) of the definition of “Material Contract” entered into since the delivery of the
previous Compliance Certificate, and (ii) each material amendment or modification of any such Material Contract entered into since the delivery of the previous Compliance Certificate, and (b) each Compliance Certificate pursuant hereto
with respect to the fiscal year end of Borrower, provide Administrative Agent with copies of (i) each Material Contract of the type described in clause (a) of the definition of “Material Contract” entered into since the
delivery of the previous fiscal year end Compliance Certificate, and (ii) each material amendment or modification of any such Material Contract entered into since the delivery of the previous fiscal year end Compliance Certificate. 

5.15 Location of Inventory and Equipment. Keep each Loan Parties’ and its Subsidiaries’ Inventory and
Equipment (other than vehicles and Equipment out for repair) only at locations previously disclosed in writing to Administrative Agent and their chief executive offices only at the locations identified on Schedule 4.6(b); provided,
however, that Borrower may amend Schedule 4.6(b) so long as such amendment occurs by written notice to Administrative Agent not less than 10 days prior to the date on which such chief executive office is relocated and so long as such
new location is within the continental United States, and so long as, at the time of such written notification, Borrower provides Administrative Agent a Collateral Access Agreement with respect thereto. 

 

	6	NEGATIVE COVENANTS. 

Borrower covenants and agrees that, until termination of all of the Commitments and payment in full of the Obligations, the Loan Parties
will not and will not permit any of their Subsidiaries to do any of the following: 
 6.1 Indebtedness.
Create, incur, assume, suffer to exist, guarantee, or otherwise become or remain, directly or indirectly, liable with respect to any Indebtedness, except for Permitted Indebtedness. 

6.2 Liens. Create, incur, assume, or suffer to exist, directly or indirectly, any Lien on or with respect to any of its
assets, of any kind, whether now owned or hereafter acquired, or any income or profits therefrom, except for Permitted Liens. Nothing contained in this Section or elsewhere in this Agreement shall restrict Borrower or any of its Subsidiaries from
taking actions in the ordinary course of their business to protect their rights under applicable mechanic’s and materialmen’s, supplier, and other similar Lien statutes and laws with respect to Inventory sold by Borrower and its
Subsidiaries to customers and the resulting Accounts. 
  

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 6.3 Restrictions on Fundamental Changes. 

(a) Other than in order to consummate a Permitted Acquisition, enter into any merger, consolidation, reorganization, or recapitalization,
or reclassify its Stock, except for (i) any merger between Loan Parties or between a Loan Party and a Subsidiary of any Loan Party, provided that (A) Borrower must be the surviving entity of any such merger to which it is a party
and (B) any Loan Party (other than Borrower) must be the surviving entity of any such merger to which it is a party, and (ii) any merger between Subsidiaries of Borrower that are not Loan Parties, 

(b) Liquidate, wind up, or dissolve itself (or suffer any liquidation or dissolution), except for (i) the liquidation or dissolution
of non-operating Subsidiaries of Borrower with nominal assets and nominal liabilities, (ii) the liquidation or dissolution of a Loan Party (other than Borrower) or any of its Subsidiaries so long as all of the assets (including any interest in
any Stock) of such liquidating or dissolving Loan Party or Subsidiary are transferred to a Loan Party that is not liquidating or dissolving, or (iii) the liquidation or dissolution of a Subsidiary of Borrower that is not a Loan Party (other
than any such Subsidiary the Stock of which (or any portion thereof) is subject to a Lien in favor of Administrative Agent) so long as all of the assets of such liquidating or dissolving Subsidiary are transferred to a Subsidiary of Borrower that is
not liquidating or dissolving, or 
 (c) Suspend or go out of a substantial portion of its or their business, except as
permitted pursuant to clauses (a) or (b) above or in connection with the transactions permitted pursuant to Section 6.4. 

6.4 Disposal of Assets. Other than Permitted Dispositions, Permitted Investments, or transactions expressly
permitted by Sections 6.3 and 6.11, convey, sell, lease, license, assign, transfer, or otherwise dispose of (or enter into an agreement to convey, sell, lease, license, assign, transfer, or otherwise dispose of) any of Borrower’s
or its Subsidiaries assets. 
 6.5 Change of Name. Change Borrower’s or any of other Loan
Parties’ name, organizational identification number, state of organization or organizational identity; provided, however, that Borrower or any other Loan Party may change its name upon at least 10 days prior written notice to
Administrative Agent of such change. 
 6.6 Nature of Business. Borrower will not, and will not permit any
of its Subsidiaries to, engage to any material extent in any business other than of the type conducted by Borrower and its Subsidiaries on the date hereof and businesses reasonably related thereto. 

6.7 Prepayments and Amendments. 

(a) Except in connection with Refinancing Indebtedness permitted by Section 6.1, make any payment on account of Indebtedness
that has been contractually subordinated in right of payment if such payment is not permitted at such time under the subordination terms and conditions. 

(b) Directly or indirectly, amend, modify, change or waive any of the terms or provisions of 

(i) any agreement, instrument, document, indenture, or other writing evidencing or concerning Permitted Indebtedness other than
(A) the Obligations in accordance with this Agreement, (B) Permitted Intercompany Advances, and (C) Permitted Indebtedness so long as such Indebtedness continues to qualify as Permitted Indebtedness hereunder, 

 

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 (ii) any Material Contract except to the extent that such amendment, modification, change
or waiver could not, in the aggregate, reasonably be expected to result in a Material Adverse Change, or 
 (iii) the Governing
Documents of any Loan Party or any of its Subsidiaries if the effect thereof, either individually or in the aggregate, could reasonably be expected to result in a Material Adverse Change. 

6.8 Change of Control. Cause, permit, or suffer, directly or indirectly, any Change of Control. 

6.9 Restricted Distributions. Make any Restricted Distribution, except for Permitted Distributions. 

6.10 Accounting Methods. Modify or change its fiscal year or its method of accounting (other than as may be required
to conform to GAAP or in connection with the Initial Accounting Changes). 
 6.11 Investments. Except for
Permitted Investments, directly or indirectly make or acquire any Investment or incur any liabilities (including contingent obligations) for or in connection with any Investment. Without limitation of the foregoing, but subject to the post-closing
period provided to Borrower pursuant to the terms of Schedule 3.5, (a) Borrower and the other Loan Parties shall not have Permitted Investments consisting of cash, Cash Equivalents, or amounts credited to Deposit Accounts or Securities
Accounts, unless Borrower or the other Loan Party, as applicable, and the applicable bank or securities intermediary, have entered into Control Agreements with Administrative Agent governing such Permitted Investments in order to perfect (and
further establish) Administrative Agent’s Liens in such Permitted Investments, and (b) Borrower shall not and shall not permit any other Loan Party to establish or maintain any Deposit Account or Securities Account unless Administrative
Agent shall have received a Control Agreement in respect of such Deposit Account or Securities Account; provided, however, that no Control Agreement shall be required with respect to (i) an aggregate amount of not more than
$1,000,000 at any one time, in the case of Borrower and the other Loan Parties, on deposit in Deposit Accounts and Securities Accounts, (ii) amounts deposited into Deposit Accounts specially and exclusively used for payroll, payroll taxes and
other employee wage and benefit payments to or for Borrower’s or its Subsidiaries’ employees, and (iii) Deposit Accounts maintained with Wells Fargo (so long as Wells Fargo serves as Administrative Agent) or J.P Morgan Chase Bank,
N.A. (so long as J.P. Morgan Chase Bank, N.A. is a Lender hereunder). 
 6.12 Transactions with Affiliates.
Directly or indirectly enter into or permit to exist any transaction with any Affiliate of Borrower or any of its Subsidiaries except for: 

(a) transactions (other than the payment of management, consulting, monitoring, or advisory fees) between Borrower or its Subsidiaries,
on the one hand, and any Affiliate of Borrower or its Subsidiaries, on the other hand, so long as such transactions are no less favorable, taken as a whole, to Borrower or its Subsidiaries, as applicable, than would be obtained in an arm’s
length transaction with a non-Affiliate; provided, that this Section 6.12 is not intended to, and shall not, preclude or impair any transaction or series of related transactions entered between Borrower, on the one hand, and any
of its Subsidiaries, on the other hand, or between any Subsidiaries of Borrower, in each case in the ordinary course of business, 

(b) so long as it has been approved by Borrower’s Board of Directors in accordance with applicable law, any indemnity provided for
the benefit of directors of Borrower, 
  

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 (c) so long as it has been approved by Borrower’s Board of Directors, the payment of
reasonable fees, compensation, or employee benefit arrangements to employees, officers, and outside directors of Borrower in the ordinary course of business, 

(d) transactions permitted by Section 6.3, 6.9 or 6.11, any Permitted Intercompany Advance, and 

(e) the Affiliate transactions expressly contemplated by the Joint Venture Documents. 

6.13 Use of Proceeds. Use the proceeds of the Advances for any purpose other than (a) on the Closing Date, to pay
transactional fees, costs, and expenses incurred in connection with this Agreement, the other Loan Documents, and the transactions contemplated hereby and thereby, and (b) thereafter, consistent with the terms and conditions hereof, for its
lawful and permitted purposes, including for working capital, Permitted Acquisition funding, and general corporate purposes. 
  

	7	FINANCIAL COVENANTS. 

Borrower covenants and agrees that, until termination of all of the Commitments and payment in full of the Obligations, Borrower will
comply with each of the following financial covenants: 
 (a) Interest Coverage Ratio. Have an Interest
Coverage Ratio of at least 3.00 to 1.00, measured on a fiscal quarter-end basis. 
 (b) Leverage Ratio.
Have a Leverage Ratio of not more than 3.00 to 1.00, measured on a fiscal quarter-end basis. 
 (c) Capital
Expenditures. Make Capital Expenditures in any fiscal year in an amount less than or equal to, but not greater than, $15,000,000. 
  

	8	EVENTS OF DEFAULT. 

 Any
one or more of the following events shall constitute an event of default (each, an “Event of Default”) under this Agreement: 

8.1 If Borrower fails to pay when due and payable, or when declared due and payable, (a) all or any portion of the Obligations
consisting of interest, fees, or charges due the Lender Group, reimbursement of Lender Group Expenses, or other amounts (other than any portion thereof constituting principal) constituting Obligations (including any portion thereof that accrues
after the commencement of an Insolvency Proceeding, regardless of whether allowed or allowable in whole or in part as a claim in any such Insolvency Proceeding), and such failure continues for a period of 3 Business Days, or (b) all or any
portion of the principal of the Obligations; 
 8.2 If any Loan Party or any of its Subsidiaries: 

(a) fails to perform or observe any covenant or other agreement contained in any of (i) Sections 3.5, 5.1 (solely
regarding the delivery of annual and quarterly financial statements and Compliance Certificates), 5.3 (solely if Borrower is not in good standing in its jurisdiction of organization, unless, in the case of any involuntary administrative
dissolution of Borrower, such failure to preserve, renew or maintain its legal existence is remedied within 10 days after Borrower becomes aware of such failure, provided, that until Borrower’s legal existence is lawfully reinstated by
the appropriate Governmental Authority, the Lenders or the Issuing 
  

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Lender, as applicable, may withhold any further Borrowing or issuance of any additional Letter of Credit), 5.7 (solely if Borrower refuses to allow Administrative Agent or its
representatives or agents to visit Borrower’s properties, inspect its assets or books or records, examine and make copies of its books and records, or discuss Borrower’s affairs, finances, and accounts with officers and employees of
Borrower), 5.10, or 5.11 of this Agreement, (ii) Sections 6.1 through 6.13 of this Agreement, (iii) Section 7 of this Agreement, or (iv) Section 6 of the Security Agreement; 

(b) fails to perform or observe any covenant or other agreement contained in Sections 5.2 and such failure continues for a period
of 15 days after the earlier of (i) the date on which such failure shall first become known to any officer of Borrower or (ii) the date on which written notice thereof is given to Borrower by Administrative Agent; or 

(c) fails to perform or observe any covenant or other agreement contained in this Agreement, or in any of the other Loan Documents, in
each case, other than any such covenant or agreement that is the subject of another provision of this Section 8 (in which event such other provision of this Section 8 shall govern), and such failure continues for a period of
30 days after the earlier of (i) the date on which such failure shall first become known to any officer of Borrower or (ii) the date on which written notice thereof is given to Borrower by Administrative Agent; 

8.3. If one or more judgments, orders, or awards for the payment of money involving an aggregate amount of $5,000,000 or more (except to
the extent fully covered by insurance pursuant to which the insurer has accepted liability therefor in writing) is entered or filed against a Loan Party or any of its Subsidiaries, or with respect to any of their respective assets, and either
(a) there is a period of 30 consecutive days at any time after the entry of any such judgment, order or award during which (1) the same is not discharged, or (2) a stay of enforcement thereof is not in effect, or (b) enforcement
proceedings are commenced upon such judgment, order, or award; 
 8.4 If an Insolvency Proceeding is commenced by a Loan Party
or any of its Subsidiaries; 
 8.5 If an Insolvency Proceeding is commenced against a Loan Party or any of its Subsidiaries and
any of the following events occur: (a) such Loan Party or such Subsidiary consents to the institution of such Insolvency Proceeding against it, (b) the petition commencing the Insolvency Proceeding is not timely controverted, (c) the
petition commencing the Insolvency Proceeding is not dismissed within 60 calendar days of the date of the filing thereof, (d) an interim trustee is appointed to take possession of all or any substantial portion of the properties or assets of,
or to operate all or any substantial portion of the business of, such Loan Party or its Subsidiary, or (e) an order for relief shall have been issued or entered therein; 

8.6 If a Loan Party or any of its Subsidiaries is enjoined, restrained, or in any way prevented by court order from continuing to conduct
all or any material part of its business affairs, except to the extent that any such court action could not reasonably be expected to result, individually or in the aggregate, in a Material Adverse Change; 

8.7 If there is a default in one or more agreements to which a Loan Party or any of its Subsidiaries is a party with one or more third
Persons relative to a Loan Party’s or any of its Subsidiaries’ Indebtedness involving an aggregate amount of $5,000,000 or more, and such default (i) occurs at the final maturity of the obligations thereunder, or (ii) results in
a right by such third Person, irrespective of whether exercised, to accelerate the maturity of such Loan Party’s or its Subsidiary’s obligations thereunder; 

 

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 8.8 If (a) the Primary Carrier Distribution Agreement terminates, expires or no longer
is in full force and effect for any reason, unless replaced with a new distribution agreement covering the same or, in the aggregate, no less than reasonably equivalent markets and on terms that, in the aggregate, are not substantially less
favorable to Borrower, (b) any other Carrier Distribution Agreement terminates, expires or no longer is in full force and effect for any reason and such termination, expiration or lack of effectiveness could reasonably be expected to result in
a Material Adverse Change or be materially adverse to the interests of the Lenders, or (c) there is a default by any party to any Material Contract to which a Loan Party is a party and such default could reasonably be expected to result in a
Material Adverse Change or be materially adverse to the interests of the Lenders; 
 8.9 If any representation or warranty made
or deemed made by or on behalf of Borrower or any Subsidiary in or in connection with this Agreement or any other Loan Document (including the Schedules attached thereto) and any amendments or modifications hereof or waivers hereunder, or in any
certificate, report, financial statement or other document submitted to Administrative Agent or the Lenders by any Loan Party or any representative of any Loan Party pursuant to or in connection with this Agreement or any other Loan Document shall
prove to be incorrect in any material respect when made or deemed made or submitted; 
 8.10 If the obligation of any Guarantor
under the Guaranty is limited or terminated by operation of law or by such Guarantor, except with respect to termination by operation of law regarding any merger, consolidation, reorganization, or other similar matter permitted under this Agreement;

 8.11 If the Security Agreement or any other Loan Document that purports to create a Lien, shall, for any reason, fail or
cease to create a valid and perfected and, except to the extent permitted by the terms hereof or thereof, first priority Lien on the Collateral covered thereby, except (a) as a result of a disposition of the applicable Collateral in a
transaction permitted under this Agreement, (b) with respect to Collateral the aggregate value of which, for all such Collateral, does not exceed at any time, $5,000,000, or (c) as the result of an action or failure to act on the part of
Administrative Agent; or 
 8.12 The validity or enforceability of any Loan Document shall at any time for any reason (other
than solely as the result of an action or failure to act on the part of Administrative Agent) be declared to be null and void, or a proceeding shall be commenced by a Loan Party or its Subsidiaries, or by any Governmental Authority having
jurisdiction over a Loan Party or its Subsidiaries, seeking to establish the invalidity or unenforceability thereof, or a Loan Party or its Subsidiaries shall deny that such Loan Party or its Subsidiaries has any liability or obligation purported to
be created under any Loan Document. 
 8.13 If the Carrier Access Agreement shall for any reason cease to be in full force and
effect, except to the extent that Borrower has made other arrangements reasonably satisfactory to Administrative Agent to provide Administrative Agent with access to the books, records, computers and other information relating to Borrower’s
Accounts as Administrative Agent may reasonably require. 
  

	9	RIGHTS AND REMEDIES. 

 9.1
Rights and Remedies. Upon the occurrence and during the continuation of an Event of Default, Administrative Agent may, and, at the instruction of the Required Lenders, shall, in each case by written notice to Borrower and in
addition to any other rights or remedies provided for hereunder or under any other Loan Document or by applicable law, do any one or more of the following on behalf of the Lender Group: 

(a) declare the Obligations, whether evidenced by this Agreement or by any of the other Loan Documents immediately due and payable,
whereupon the same shall become and be immediately due and payable, without presentment, demand, protest, or further notice or other requirements of any kind, all of which are hereby expressly waived by Borrower; and 

 

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 (b) declare the Commitments terminated, whereupon the Commitments shall immediately be
terminated together with any obligation of any Lender hereunder to make Advances and the obligation of the Issuing Lender to issue Letters of Credit. 

The foregoing to the contrary notwithstanding, upon the occurrence of any Event of Default described in Section 8.4 or
Section 8.5, in addition to the remedies set forth above, without any notice to Borrower or any other Person or any act by the Lender Group, the Commitments shall automatically terminate and the Obligations then outstanding, together
with all accrued and unpaid interest thereon and all fees and all other amounts due under this Agreement and the other Loan Documents, shall automatically and immediately become due and payable, without presentment, demand, protest, or notice of any
kind, all of which are expressly waived by Borrower. 
 9.2 Remedies Cumulative. The rights and remedies of
the Lender Group under this Agreement, the other Loan Documents, and all other agreements shall be cumulative. The Lender Group shall have all other rights and remedies not inconsistent herewith as provided under the Code, by law, or in equity. No
exercise by the Lender Group of one right or remedy shall be deemed an election, and no waiver by the Lender Group of any Event of Default shall be deemed a continuing waiver. No delay by the Lender Group shall constitute a waiver, election, or
acquiescence by it. 
  

	10	WAIVERS; INDEMNIFICATION. 

10.1 Demand; Protest; etc. Borrower waives demand, protest, notice of protest, notice of default or dishonor, notice
of payment and nonpayment, nonpayment at maturity, release, compromise, settlement, extension, or renewal of documents, instruments, chattel paper, and guarantees at any time held by the Lender Group on which Borrower may in any way be liable.

 10.2 The Lender Group’s Liability for Collateral. Borrower hereby agrees that: (a) so long as
Administrative Agent complies with its obligations, if any, under the Code, the Lender Group shall not in any way or manner be liable or responsible for: (i) the safekeeping of the Collateral, (ii) any loss or damage thereto occurring or
arising in any manner or fashion from any cause, (iii) any diminution in the value thereof, or (iv) any act or default of any carrier, warehouseman, bailee, forwarding agency, or other Person, and (b) all risk of loss, damage, or
destruction of the Collateral shall be borne by Borrower. 
 10.3 Indemnification. Borrower shall pay,
indemnify, defend, and hold the Agent-Related Persons, the Lender-Related Persons, and each Participant (each, an “Indemnified Person”) harmless (to the fullest extent permitted by law) from and against any and all claims, demands,
suits, actions, investigations, proceedings, liabilities, fines, costs, penalties, and damages, and all reasonable fees and disbursements of attorneys, experts, or consultants and all other costs and expenses actually incurred in connection
therewith or in connection with the enforcement of this indemnification (as and when they are incurred and irrespective of whether suit is brought), at any time asserted against, imposed upon, or incurred by any of them (a) in connection with
or as a result of or related to the execution and delivery (provided that Borrower shall not be liable for costs and expenses (including attorneys fees) of any Lender (other than Wells Fargo) incurred in advising, structuring, drafting, reviewing,
administering or syndicating the Loan Documents), enforcement, performance, or administration (including any restructuring or workout with respect hereto) of this Agreement, any of the other Loan Documents, or the transactions contemplated hereby or
thereby or the monitoring of Borrower’s and its Subsidiaries’ compliance with 
  

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the terms of the Loan Documents (other than disputes solely between the Lenders), (b) with respect to any investigation, litigation, or proceeding related to this Agreement, any other Loan
Document, or the use of the proceeds of the credit provided hereunder (irrespective of whether any Indemnified Person is a party thereto), or any act, omission, event, or circumstance in any manner related thereto, and (c) in connection with or
arising out of any presence or release of Hazardous Materials at, on, under, to or from any assets or properties owned, leased or operated by Borrower or any of its Subsidiaries or any Environmental Actions, Environmental Liabilities or Remedial
Actions related in any way to any such assets or properties of Borrower or any of its Subsidiaries (each and all of the foregoing, the “Indemnified Liabilities”). The foregoing to the contrary notwithstanding, Borrower shall have no
obligation to any Indemnified Person under this Section 10.3 with respect to any Indemnified Liability that a court of competent jurisdiction finally determines to have resulted from the gross negligence or willful misconduct of such
Indemnified Person or its officers, directors, employees, attorneys, or agents. This provision shall survive the termination of this Agreement and the repayment of the Obligations. If any Indemnified Person makes any payment to any other Indemnified
Person with respect to an Indemnified Liability as to which Borrower was required to indemnify the Indemnified Person receiving such payment, the Indemnified Person making such payment is entitled to be indemnified and reimbursed by Borrower with
respect thereto. WITHOUT LIMITATION, THE FOREGOING INDEMNITY SHALL APPLY TO EACH INDEMNIFIED PERSON WITH RESPECT TO INDEMNIFIED LIABILITIES WHICH IN WHOLE OR IN PART ARE CAUSED BY OR ARISE OUT OF ANY NEGLIGENT ACT OR OMISSION OF SUCH INDEMNIFIED
PERSON OR OF ANY OTHER PERSON (OTHER THAN ANY SUCH ACT OR OMISSION ARISING FROM THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF SUCH INDEMNIFIED PERSON). 
  

	11	NOTICES. 

 Unless
otherwise provided in this Agreement, all notices or demands relating to this Agreement or any other Loan Document shall be in writing and (except for financial statements and other informational documents which may be sent by first-class mail,
postage prepaid) shall be personally delivered or sent by registered or certified mail (postage prepaid, return receipt requested), overnight courier, electronic mail (at such email addresses as a party may designate in accordance herewith), or
telefacsimile. In the case of notices or demands to Borrower, Administrative Agent or any Lender, as the case may be, they shall be sent to the respective address set forth below: 

 

			
	If to Borrower:	  	Carrier Enterprise, LLC
		  	c/o Watsco, Inc.
		  	2665 S. Bayshore Drive, Suite 901
		  	Coconut Grove, FL 33133
		  	Attn: Ana M. Menendez
		  	Fax: 305-858-6898
		
	with copies to:	  	Moore & Van Allen PLLC
		  	100 North Tryon Street, Suite 4700
		  	Charlotte, NC 28202-4003
		  	Attn: Stephen D. Hope, Esq.
		  	Fax: 704-378-2036
		
	If to Administrative Agent:	  	Wells Fargo Bank, N.A.
		  	401 E. Jackson Street
		  	Suite 1450
		  	Tampa, Florida 33602
		  	Attn: Edward Wooten
		  	Fax No.: 813-202-7201

  

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	with copies to:	  	Greenberg Traurig LLP
		  	3290 Northside Parkway, Suite 400
		  	Atlanta, Georgia 30327
		  	Attn: Michael Leveille, Esq.
		  	Fax No.: 678-553-7315
		
	If to any Lender:	  	To its address set forth on Schedule 11

 Any party
hereto may change the address at which they are to receive notices hereunder by notice in writing in the foregoing manner given to the other parties hereto. All notices or demands sent in accordance with this Section 11 shall be deemed
received on the earlier of the date of actual receipt or 3 Business Days after the deposit thereof in the mail; provided, that (a) notices sent by overnight courier service shall be deemed to have been given when received,
(b) notices by facsimile shall be deemed to have been given when sent (except that, if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next Business Day for the
recipient) and (c) notices by electronic mail shall be deemed received upon the sender’s receipt of an acknowledgment from the intended recipient (such as by the “return receipt requested” function, as available, return email or
other written acknowledgment). 
  

	12	CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER. 

(a) THE VALIDITY OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS (UNLESS EXPRESSLY PROVIDED TO THE CONTRARY IN ANOTHER LOAN DOCUMENT IN
RESPECT OF SUCH OTHER LOAN DOCUMENT), THE CONSTRUCTION, INTERPRETATION, AND ENFORCEMENT HEREOF AND THEREOF, AND THE RIGHTS OF THE PARTIES HERETO AND THERETO WITH RESPECT TO ALL MATTERS ARISING HEREUNDER OR THEREUNDER OR RELATED HERETO OR THERETO
SHALL BE DETERMINED UNDER, GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. 
 (b) THE PARTIES
AGREE THAT ALL ACTIONS OR PROCEEDINGS ARISING IN CONNECTION WITH THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS SHALL BE TRIED AND LITIGATED ONLY IN THE STATE AND, TO THE EXTENT PERMITTED BY APPLICABLE LAW, FEDERAL COURTS LOCATED IN THE COUNTY OF NEW
YORK, STATE OF NEW YORK; PROVIDED, HOWEVER, THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT ADMINISTRATIVE AGENT’S OPTION, IN THE COURTS OF ANY JURISDICTION WHERE ADMINISTRATIVE AGENT
ELECTS TO BRING SUCH ACTION OR WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY BE FOUND. BORROWER AND EACH MEMBER OF THE LENDER GROUP WAIVE, TO THE EXTENT PERMITTED UNDER APPLICABLE LAW, ANY RIGHT EACH MAY HAVE TO ASSERT THE DOCTRINE OF FORUM
NON CONVENIENS OR TO OBJECT TO VENUE TO THE EXTENT ANY PROCEEDING IS BROUGHT IN ACCORDANCE WITH THIS SECTION 12(b). 

(c) TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, BORROWER AND EACH MEMBER OF THE LENDER GROUP HEREBY WAIVE THEIR RESPECTIVE RIGHTS
TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF ANY OF THE LOAN DOCUMENTS OR ANY OF THE TRANSACTIONS 

 

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CONTEMPLATED THEREIN, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS. BORROWER AND EACH MEMBER OF THE LENDER GROUP REPRESENT THAT EACH
HAS REVIEWED THIS WAIVER AND EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. IN THE EVENT OF LITIGATION, A COPY OF THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

  

	13	ASSIGNMENTS AND PARTICIPATIONS; SUCCESSORS. 

13.1 Assignments and Participations. 

(a) With the prior written consent of Borrower, which consent of Borrower shall not be unreasonably withheld, delayed or conditioned, and
shall not be required (1) if an Event of Default has occurred and is continuing, and (2) in connection with an assignment to a Person that is a Lender or an Affiliate (other than individuals) of a Lender, and with the prior written consent
of Administrative Agent, which consent of Administrative Agent shall not be unreasonably withheld, delayed or conditioned, and shall not be required in connection with an assignment to a Person that is a Lender or an Affiliate (other than
individuals) of a Lender, any Lender may assign and delegate to one or more assignees so long as such prospective assignee is an Eligible Transferee (each, an “Assignee”; provided, however, that no Loan Party or
Affiliate of a Loan Party shall be permitted to become an Assignee) all or any portion of the Obligations, the Commitments and the other rights and obligations of such Lender hereunder and under the other Loan Documents, in a minimum amount (unless
waived by Administrative Agent) of $5,000,000 (except such minimum amount shall not apply to (x) an assignment or delegation by any Lender to any other Lender or an Affiliate of any Lender or (y) a group of new Lenders, each of which is an
Affiliate of each other or a Related Fund of such new Lender to the extent that the aggregate amount to be assigned to all such new Lenders is at least $5,000,000); provided, however, that Borrower and Administrative Agent may continue
to deal solely and directly with such Lender in connection with the interest so assigned to an Assignee until (i) written notice of such assignment, together with payment instructions, addresses, and related information with respect to the
Assignee, have been given to Borrower and Administrative Agent by such Lender and the Assignee, (ii) such Lender and its Assignee have delivered to Borrower and Administrative Agent an Assignment and Acceptance and Administrative Agent has
notified the assigning Lender of its receipt thereof in accordance with Section 13.1(b), and (iii) unless waived by Administrative Agent, the assigning Lender or Assignee has paid to Administrative Agent for Administrative
Agent’s separate account a processing fee in the amount of $3,500. 
 (b) From and after the date that Administrative Agent
notifies the assigning Lender (with a copy to Borrower) that it has received an executed Assignment and Acceptance and, if applicable, payment of the required processing fee, (i) the Assignee thereunder shall be a party hereto and, to the
extent that rights and obligations hereunder have been assigned to it pursuant to such Assignment and Acceptance, shall have the rights and obligations of a Lender under the Loan Documents, and (ii) the assigning Lender shall, to the extent
that rights and obligations hereunder and under the other Loan Documents have been assigned by it pursuant to such Assignment and Acceptance, relinquish its rights (except with respect to Section 10.3) and be released from any future
obligations under this Agreement (and in the case of an Assignment and Acceptance covering all or the remaining portion of an assigning Lender’s rights and obligations under this Agreement and the other Loan Documents, such Lender shall cease
to be a party hereto and thereto); provided, however, that nothing contained herein shall release any assigning Lender from obligations that survive the termination of this Agreement, including such assigning Lender’s obligations
under Section 15 and Section 17.9(a). 
  

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 (c) By executing and delivering an Assignment and Acceptance, the assigning Lender
thereunder and the Assignee thereunder confirm to and agree with each other and the other parties hereto as follows: (i) other than as provided in such Assignment and Acceptance, such assigning Lender makes no representation or warranty and
assumes no responsibility with respect to any statements, warranties or representations made in or in connection with this Agreement or the execution, legality, validity, enforceability, genuineness, sufficiency or value of this Agreement or any
other Loan Document furnished pursuant hereto, (ii) such assigning Lender makes no representation or warranty and assumes no responsibility with respect to the financial condition of Borrower or the performance or observance by Borrower of any
of its obligations under this Agreement or any other Loan Document furnished pursuant hereto, (iii) such Assignee confirms that it has received a copy of this Agreement, together with such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into such Assignment and Acceptance, (iv) such Assignee will, independently and without reliance upon Administrative Agent, such assigning Lender or any other Lender, 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, (v) such Assignee appoints and authorizes Administrative Agent to take
such actions and to exercise such powers under this Agreement and the other Loan Documents as are delegated to Administrative Agent, by the terms hereof and thereof, together with such powers as are reasonably incidental thereto, and (vi) such
Assignee agrees that it will perform all of the obligations which by the terms of this Agreement are required to be performed by it as a Lender. 

(d) Immediately upon Administrative Agent’s receipt of the required processing fee, if applicable, and delivery of notice to the
assigning Lender pursuant to Section 13.1(b), this Agreement shall be deemed to be amended to the extent, but only to the extent, necessary to reflect the addition of the Assignee and the resulting adjustment of the Commitments arising
therefrom. The Commitment allocated to each Assignee shall reduce such Commitments of the assigning Lender pro tanto. 

(e) Any Lender may at any time sell to one or more commercial banks, financial institutions, or other Persons (a
“Participant”) participating interests in all or any portion of its Obligations, its Commitment, and the other rights and interests of that Lender (the “Originating Lender”) hereunder and under the other Loan
Documents; provided, however, that (i) the Originating Lender shall remain a “Lender” for all purposes of this Agreement and the other Loan Documents and the Participant receiving the participating interest in the
Obligations, the Commitments, and the other rights and interests of the Originating Lender hereunder shall not constitute a “Lender” hereunder or under the other Loan Documents and the Originating Lender’s obligations under this
Agreement shall remain unchanged, (ii) the Originating Lender shall remain solely responsible for the performance of such obligations, (iii) Borrower, Administrative Agent, and the Lenders shall continue to deal solely and directly with
the Originating Lender in connection with the Originating Lender’s rights and obligations under this Agreement and the other Loan Documents, (iv) no Lender shall transfer or grant any participating interest under which the Participant has
the right to approve any amendment to, or any consent or waiver with respect to, this Agreement or any other Loan Document, except to the extent such amendment to, or consent or waiver with respect to this Agreement or of any other Loan Document
would (A) extend the final maturity date of the Obligations hereunder in which such Participant is participating, (B) reduce the interest rate applicable to the Obligations hereunder in which such Participant is participating,
(C) release all or substantially all of the Collateral (except to the extent expressly provided herein or in any of the Loan Documents) supporting the Obligations hereunder in which such Participant is participating, (D) postpone the
payment of, or reduce the amount of, the interest or fees payable to such Participant through such Lender, or (E) change the amount or due dates of scheduled principal repayments or prepayments or premiums, and (v) all amounts payable by
Borrower hereunder shall be determined as if such Lender had not sold such participation, except that, 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 

 

 - 41 - 

 
under this Agreement to the same extent as if the amount of its participating interest were owing directly to it as a Lender under this Agreement. The rights of any Participant only shall be
derivative through the Originating Lender with whom such Participant participates and no Participant shall have any rights under this Agreement or the other Loan Documents or any direct rights as to the other Lenders, Administrative Agent, Borrower,
the Collections of Borrower or its Subsidiaries, the Collateral, or otherwise in respect of the Obligations. No Participant shall have the right to participate directly in the making of decisions by the Lenders among themselves. 

(f) In connection with any such assignment or participation or proposed assignment or participation or any grant of a security interest
in, or pledge of, its rights under and interest in this Agreement, a Lender may, subject to the provisions of Section 17.9, disclose all documents and information which it now or hereafter may have relating to Borrower and its
Subsidiaries and their respective businesses. 
 (g) Any other provision in this Agreement notwithstanding, any Lender may at
any time create a security interest in, or pledge, all or any portion of its rights under and interest in this Agreement in favor of any Federal Reserve Bank in accordance with Regulation A of the Federal Reserve Bank or U.S. Treasury Regulation 31
CFR §203.24, and such Federal Reserve Bank may enforce such pledge or security interest in any manner permitted under applicable law. 

13.2 Successors. This Agreement shall bind and inure to the benefit of the respective successors and assigns of each of the
parties; provided, however, that Borrower may not assign this Agreement or any rights or duties hereunder without the Lenders’ prior written consent and any prohibited assignment shall be absolutely void ab initio. No
consent to assignment by the Lenders shall release Borrower from its Obligations. A Lender may assign this Agreement and the other Loan Documents and its rights and duties hereunder and thereunder pursuant to Section 13.1 and, except as
expressly required pursuant to Section 13.1, no consent or approval by Borrower is required in connection with any such assignment. 
  

	14	AMENDMENTS; WAIVERS. 

14.1 Amendments and Waivers. 

(a) No amendment, waiver or other modification of any provision of this Agreement or any other Loan Document (other than Bank Product
Agreements or the Fee Letter), and no consent with respect to any departure by Borrower therefrom, shall be effective unless the same shall be in writing and signed by the Required Lenders (or by Administrative Agent at the written request of the
Required Lenders) and Borrower and then any such waiver or consent shall be effective, but only in the specific instance and for the specific purpose for which given; provided, however, that no such waiver, amendment, or consent shall,
unless in writing and signed by all of the Lenders directly affected thereby and Borrower, do any of the following: 
 (i)
increase the amount of or extend the expiration date of any Commitment of any Lender, 
 (ii) postpone or delay any date fixed
by this Agreement or any other Loan Document for any payment of principal, interest, fees, or other amounts due hereunder or under any other Loan Document, 
  

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 (iii) reduce the principal of, or the rate of interest on, any loan or other extension of
credit hereunder, or reduce any fees or other amounts payable hereunder or under any other Loan Document (except (y) in connection with the waiver of applicability of Section 2.6(c) (which waiver shall be effective with the written
consent of the Required Lenders), and (z) that any amendment or modification of defined terms used in the financial covenants in this Agreement shall not constitute a reduction in the rate of interest or a reduction of fees for purposes of this
clause (iii)), 
 (iv) amend or modify this Section or any provision of this Agreement providing for consent or other action by
all Lenders, 
 (v) other than as permitted by Section 15.11, release Administrative Agent’s Lien in and to
any of the Collateral, 
 (vi) change the definition of “Required Lenders” or “Pro Rata Share”, 

(vii) contractually subordinate any of Administrative Agent’s Liens, 

(viii) other than in connection with a merger, liquidation, dissolution or sale of such Person expressly permitted by the terms hereof
or the other Loan Documents, release Borrower or any Guarantor from any obligation for the payment of money or consent to the assignment or transfer by Borrower or any Guarantor of any of its rights or duties under this Agreement or the other Loan
Documents, 
 (ix) amend any of the provisions of Section 2.4(b)(i) or (ii), 

(x) amend Section 13.1(a) to permit a Loan Party or an Affiliate of a Loan Party to be permitted to become an Assignee, or

 (xi) change the definition of Borrowing Base or any of the defined terms (including the definitions of Eligible Accounts and
Eligible Inventory) that are used in such definition to the extent that any such change results in more credit being made available to Borrower based upon the Borrowing Base, but not otherwise, or the definition of Maximum Revolver Amount.

 (b) No amendment, waiver, modification, or consent shall amend, modify, or waive (i) the definition of, or any of the
terms or provisions of, the Fee Letter, without the written consent of Administrative Agent and Borrower (and shall not require the written consent of any of the Lenders), and (ii) any provision of Section 15 pertaining to
Administrative Agent, or any other rights or duties of Administrative Agent under this Agreement or the other Loan Documents, without the written consent of Administrative Agent, Borrower, and the Required Lenders. 

(c) No amendment, waiver, modification, or consent shall amend, modify, or waive any provision of this Agreement or the other Loan
Documents pertaining to Issuing Lender, or any other rights or duties of Issuing Lender under this Agreement or the other Loan Documents, without the written consent of Issuing Lender, Administrative Agent, Borrower, and the Required Lenders.

 (d) No amendment, waiver, modification, or consent shall amend, modify, or waive any provision of this Agreement or the other
Loan Documents pertaining to Swing Lender, or any other rights or duties of Swing Lender under this Agreement or the other Loan Documents, without the written consent of Swing Lender, Administrative Agent, Borrower, and the Required Lenders.

  

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 (e) No amendment, waiver, modification, or consent shall amend, modify, or waive any
provision of this Agreement or the other Loan Documents pertaining to the Arrangers, or any other rights or duties of the Arrangers under this Agreement or the other Loan Documents, without the written consent of the Arrangers, Administrative Agent,
Borrower, and the Required Lenders. 
 (f) No amendment, waiver, modification, or consent shall amend, modify, or waive any
provision of this Agreement or the other Loan Documents pertaining to the Syndication Agent, or any other rights or duties of the Syndication Agent under this Agreement or the other Loan Documents, without the written consent of the Syndication
Agent, Administrative Agent, Borrower, and the Required Lenders. 
 (g) Anything in this Section 14.1 to the
contrary notwithstanding, any amendment, modification, waiver, consent, termination, or release of, or with respect to, any provision of this Agreement or any other Loan Document that relates only to the relationship of the Lender Group among
themselves, and that does not affect the rights or obligations of Borrower, shall not require consent by or the agreement of Borrower. 

14.2 Replacement of Certain Lenders. 

(a) If (i) any action to be taken by the Lender Group or Administrative Agent hereunder requires the unanimous consent,
authorization, or agreement of all Lenders and if such action has received the consent, authorization, or agreement of the Required Lenders but not all of the Lenders or (ii) any Lender makes a claim for compensation under
Section 16, then Borrower or Administrative Agent, upon at least 5 Business Days prior irrevocable notice, may permanently replace any Lender (a “Holdout Lender”) that failed to give its consent, authorization, or
agreement or made a claim for compensation (a “Tax Lender”) with one or more Replacement Lenders, and the Holdout Lender or Tax Lender, as applicable, shall have no right to refuse to be replaced hereunder. Such notice to replace
the Holdout Lender or Tax Lender, as applicable, shall specify an effective date for such replacement, which date shall not be later than 15 Business Days after the date such notice is given. 

(b) Prior to the effective date of such replacement, the Holdout Lender and each Replacement Lender shall execute and deliver an
Assignment and Acceptance, subject only to the Holdout Lender being repaid its share of the outstanding Obligations (including an assumption of its Pro Rata Share of the Letters of Credit) without any premium or penalty of any kind whatsoever. If
the Holdout Lender shall refuse or fail to execute and deliver any such Assignment and Acceptance prior to the effective date of such replacement, the Holdout Lender shall be deemed to have executed and delivered such Assignment and Acceptance. The
replacement of any Holdout Lender shall be made in accordance with the terms of Section 13.1. Until such time as the Replacement Lenders shall have acquired all of the Obligations, the Commitments, and the other rights and obligations of
the Holdout Lender hereunder and under the other Loan Documents, the Holdout Lender shall remain obligated to make the Holdout Lender’s Pro Rata Share of Advances and to purchase a participation in each Letter of Credit, in an amount equal to
its Pro Rata Share of such Letters of Credit. 
 14.3 No Waivers; Cumulative Remedies. No failure by
Administrative Agent or any Lender to exercise any right, remedy, or option under this Agreement or any other Loan Document, or delay by Administrative Agent or any Lender in exercising the same, will operate as a waiver thereof. No waiver by
Administrative Agent or any Lender will be effective unless it is in writing, and then only to the extent specifically stated. No waiver by Administrative Agent or any Lender on any occasion shall affect or diminish Administrative Agent’s and
each Lender’s rights thereafter to require strict performance by Borrower of any provision of this Agreement. Administrative Agent’s and each Lender’s rights under this Agreement and the other Loan Documents will be cumulative and not
exclusive of any other right or remedy that Administrative Agent or any Lender may have. 
  

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	15	AGENT; THE LENDER GROUP. 

15.1 Appointment and Authorization of Administrative Agent. Each Lender hereby designates and appoints Administrative Agent
as its representative under this Agreement and the other Loan Documents and each Lender hereby irrevocably authorizes Administrative Agent to execute and deliver each of the other Loan Documents on its behalf and to take such other action on its
behalf under the provisions of this Agreement and each other Loan Document and to exercise such powers and perform such duties as are expressly delegated to Administrative Agent by the terms of this Agreement or any other Loan Document, together
with such powers as are reasonably incidental thereto. Administrative Agent agrees to act as such on the express conditions contained in this Section 15. Any provision to the contrary contained elsewhere in this Agreement or in any other
Loan Document notwithstanding, Administrative Agent shall not have any duties or responsibilities, except those expressly set forth herein, nor shall Administrative Agent have or be deemed to have any fiduciary relationship with any Lender, and no
implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or any other Loan Document or otherwise exist against Administrative Agent; it being expressly understood and agreed that the use of
the word “Administrative Agent” is for convenience only, that Wells Fargo is merely the representative of the Lenders, and only has the contractual duties set forth herein. Except as expressly otherwise provided in this Agreement,
Administrative Agent shall have and may use its sole discretion with respect to exercising or refraining from exercising any discretionary rights or taking or refraining from taking any actions that Administrative Agent expressly is entitled to take
or assert under or pursuant to this Agreement and the other Loan Documents. Without limiting the generality of the foregoing, or of any other provision of the Loan Documents that provides rights or powers to Administrative Agent, Lenders agree that
Administrative Agent shall have the right to exercise the following powers as long as this Agreement remains in effect: (a) maintain, in accordance with its customary business practices, ledgers and records reflecting the status of the
Obligations, the Collateral, the Collections of Borrower and its Subsidiaries, and related matters, (b) execute or file any and all financing or similar statements or notices, amendments, renewals, supplements, documents, instruments, proofs of
claim, notices and other written agreements with respect to the Loan Documents, (c) make Advances, for itself or on behalf of Lenders, as provided in the Loan Documents, (d) exclusively receive, apply, and distribute the Collections of
Borrower and its Subsidiaries as provided in the Loan Documents, (e) open and maintain such bank accounts and cash management arrangements as Administrative Agent deems necessary and appropriate in accordance with the Loan Documents for the
foregoing purposes with respect to the Collateral and the Collections of Borrower and its Subsidiaries, (f) perform, exercise, and enforce any and all other rights and remedies of the Lender Group with respect to Borrower or its Subsidiaries,
the Obligations, the Collateral, the Collections of Borrower and its Subsidiaries, or otherwise related to any of same as provided in the Loan Documents, and (g) incur and pay such Lender Group Expenses as Administrative Agent may deem
necessary or appropriate for the performance and fulfillment of its functions and powers pursuant to the Loan Documents. 
 15.2
Delegation of Duties. Administrative Agent may execute any of its duties under this Agreement or any other Loan Document by or through agents, employees or attorneys in fact and shall be entitled to advice of counsel concerning all
matters pertaining to such duties. Administrative Agent shall not be responsible for the negligence or misconduct of any agent or attorney in fact that it selects as long as such selection was made without gross negligence or willful misconduct.

 15.3 Liability of Administrative Agent. None of the Agent-Related Persons shall (a) be liable for any
action taken or omitted to be taken by any of them under or in connection with this Agreement or any other Loan Document or the transactions contemplated hereby (except for its own gross negligence or willful misconduct), or (b) be responsible
in any manner to any of the Lenders for any 
  

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recital, statement, representation or warranty made by Borrower or any of its Subsidiaries or Affiliates, or any officer or director thereof, contained in this Agreement or in any other Loan
Document, or in any certificate, report, statement or other document referred to or provided for in, or received by Administrative Agent under or in connection with, this Agreement or any other Loan Document, or the validity, effectiveness,
genuineness, enforceability or sufficiency of this Agreement or any other Loan Document, or for any failure of Borrower or its Subsidiaries or any other party to any Loan Document to perform its obligations hereunder or thereunder. No Agent-Related
Person shall be under any obligation to any Lender to ascertain or to inquire as to the observance or performance of any of the agreements contained in, or conditions of, this Agreement or any other Loan Document, or to inspect the books and records
or properties of Borrower or its Subsidiaries. 
 15.4 Reliance by Administrative Agent. Administrative Agent
shall be entitled to rely, and shall be fully protected in relying, upon any writing, resolution, notice, consent, certificate, affidavit, letter, telegram, telefacsimile or other electronic method of transmission, telex or telephone message,
statement or other document or conversation believed by it to be genuine and correct and to have been signed, sent, or made by the proper Person or Persons, and upon advice and statements of legal counsel (including counsel to Borrower or counsel to
any Lender), independent accountants and other experts selected by Administrative Agent. Administrative Agent shall be fully justified in failing or refusing to take any action under this Agreement or any other Loan Document unless Administrative
Agent shall first receive such advice or concurrence of the Lenders as it deems appropriate and until such instructions are received, Administrative Agent shall act, or refrain from acting, as it deems advisable. If Administrative Agent so requests,
it shall first be indemnified to its reasonable satisfaction by the Lenders against any and all liability and expense that may be incurred by it by reason of taking or continuing to take any such action. Administrative Agent shall in all cases be
fully protected in acting, or in refraining from acting, under this Agreement or any other Loan Document in accordance with a request or consent of the requisite Lenders and such request and any action taken or failure to act pursuant thereto shall
be binding upon all of the Lenders. 
 15.5 Notice of Default or Event of Default. Administrative Agent shall not
be deemed to have knowledge or notice of the occurrence of any Default or Event of Default, except with respect to defaults in the payment of principal, interest, fees, and expenses required to be paid to Administrative Agent for the account of the
Lenders and, except with respect to Events of Default of which Administrative Agent has actual knowledge, unless Administrative Agent shall have received written notice from a Lender or Borrower referring to this Agreement, describing such Default
or Event of Default, and stating that such notice is a “notice of default.” Administrative Agent promptly will notify the Lenders of its receipt of any such notice or of any Event of Default of which Administrative Agent has actual
knowledge. If any Lender obtains actual knowledge of any Event of Default, such Lender promptly shall notify the other Lenders and Administrative Agent of such Event of Default. Each Lender shall be solely responsible for giving any notices to its
Participants, if any. Subject to Section 15.4, Administrative Agent shall take such action with respect to such Default or Event of Default as may be requested by the Required Lenders in accordance with Section 9;
provided, however, that unless and until Administrative Agent has received any such request, Administrative Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to such Default or
Event of Default as it shall deem advisable. 
 15.6 Credit Decision. Each Lender acknowledges that none of the
Agent-Related Persons has made any representation or warranty to it, and that no act by Administrative Agent hereinafter taken, including any review of the affairs of Borrower and its Subsidiaries or Affiliates, shall be deemed to constitute any
representation or warranty by Agent-Related Person to any Lender. Each Lender represents to Administrative Agent that it has, independently and without reliance upon Agent-Related Person and based on

  

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such due diligence, documents and information as it has deemed appropriate, made its own appraisal of and investigation into the business, prospects, operations, property, financial and other
condition and creditworthiness of Borrower or any other Person party to a Loan Document, and all applicable bank regulatory laws relating to the transactions contemplated hereby, and made its own decision to enter into this Agreement and to extend
credit to Borrower. Each Lender also represents that it will, independently and without reliance upon Agent-Related Person and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit
analysis, appraisals and decisions in taking or not taking action under this Agreement and the other Loan Documents, and to make such investigations as it deems necessary to inform itself as to the business, prospects, operations, property,
financial and other condition and creditworthiness of Borrower or any other Person party to a Loan Document. Except for notices, reports, and other documents expressly herein required to be furnished to the Lenders by Administrative Agent,
Administrative 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 Borrower or any
other Person party to a Loan Document that may come into the possession of any of the Agent-Related Persons. Each Lender acknowledges that Administrative Agent does not have any duty or responsibility, either initially or on a continuing basis
(except to the extent, if any, that is expressly specified herein) to provide such Lender with any credit or other information with respect to Borrower, its Affiliates or any of their respective business, legal, financial or other affairs, and
irrespective of whether such information came into Administrative Agent’s or its Affiliates’ or representatives’ possession before or after the date on which such Lender became a party to this Agreement. 

15.7 Costs and Expenses; Indemnification. Administrative Agent may incur and pay Lender Group Expenses to the extent
Administrative Agent reasonably deems necessary or appropriate for the performance and fulfillment of its functions, powers, and obligations pursuant to the Loan Documents, including court costs, reasonable attorneys fees and expenses, reasonable
fees and expenses of financial accountants, advisors, consultants, and appraisers, costs of collection by outside collection agencies, auctioneer fees and expenses, and costs of security guards or insurance premiums paid to maintain the Collateral,
whether or not Borrower is obligated to reimburse Administrative Agent or Lenders for such expenses pursuant to this Agreement or otherwise. Administrative Agent is authorized and directed to deduct and retain sufficient amounts from the Collections
of Borrower and its Subsidiaries received by Administrative Agent to reimburse Administrative Agent for such out-of-pocket costs and expenses prior to the distribution of any amounts to Lenders. In the event Administrative Agent is not reimbursed
for such costs and expenses by Borrower or its Subsidiaries, each Lender hereby agrees that it is and shall be obligated to pay to Administrative Agent such Lender’s Pro Rata Share thereof. Whether or not the transactions contemplated hereby
are consummated, the Lenders shall indemnify upon demand the Agent-Related Persons (to the extent not reimbursed by or on behalf of Borrower and without limiting the obligation of Borrower to do so), according to their Pro Rata Shares, from and
against any and all Indemnified Liabilities; provided, however, that no Lender shall be liable for the payment to Agent-Related Person of any portion of such Indemnified Liabilities resulting solely from such Person’s gross
negligence or willful misconduct nor shall any Lender be liable for the obligations of any Defaulting Lender in failing to make an Advance or other extension of credit hereunder. Without limitation of the foregoing, each Lender shall reimburse
Administrative Agent upon demand for such Lender’s Pro Rata Share of any costs or out of pocket expenses (including attorneys, accountants, advisors, and consultants fees and expenses) incurred by Administrative Agent in connection with the
preparation, execution, delivery, administration, modification, amendment, or enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal advice in respect of rights or responsibilities under, this Agreement, any other
Loan Document, or any document contemplated by or referred to herein, to the extent that Administrative Agent is not reimbursed for such expenses by or on behalf of Borrower. The undertaking in this Section shall survive the payment of all
Obligations hereunder and the resignation or replacement of Administrative Agent. 
  

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 15.8 Administrative Agent in Individual Capacity. Wells Fargo and its
Affiliates may make loans to, issue letters of credit for the account of, accept deposits from, acquire equity interests in, and generally engage in any kind of banking, trust, financial advisory, underwriting, or other business with Borrower and
its Subsidiaries and Affiliates and any other Person party to any Loan Document as though Wells Fargo were not Administrative Agent hereunder, and, in each case, without notice to or consent of the other members of the Lender Group. The other
members of the Lender Group acknowledge that, pursuant to such activities, Wells Fargo or its Affiliates may receive information regarding Borrower or its Affiliates or any other Person party to any Loan Documents that is subject to confidentiality
obligations in favor of Borrower or such other Person and that prohibit the disclosure of such information to the Lenders, and the Lenders acknowledge that, in such circumstances (and in the absence of a waiver of such confidentiality obligations,
which waiver Administrative Agent will use its reasonable best efforts to obtain), Administrative Agent shall not be under any obligation to provide such information to them. The terms “Lender” and “Lenders” include Wells Fargo
in its individual capacity. 
 15.9 Successor Administrative Agent. Administrative Agent may resign as
Administrative Agent upon 30 days prior written notice to the Lenders (unless such notice is waived by the Required Lenders) and Borrower (unless such notice is waived by Borrower). If Administrative Agent resigns under this Agreement, the Required
Lenders shall be entitled, with (so long as no Event of Default has occurred and is continuing) the consent of Borrower (such consent not to be unreasonably withheld, delayed, or conditioned), appoint a successor Administrative Agent for the
Lenders. If, at the time that Administrative Agent’s resignation is effective, it is acting as the Issuing Lender or the Swing Lender, such resignation shall also operate to effectuate its resignation as the Issuing Lender or the Swing Lender,
as applicable, and it shall automatically be relieved of any further obligation to issue Letters of Credit or make Swing Loans. If no successor Administrative Agent is appointed prior to the effective date of the resignation of Administrative Agent,
Administrative Agent may appoint, after consulting with the Lenders and Borrower, a successor Administrative Agent. If Administrative Agent has materially breached or failed to perform any material provision of this Agreement or of applicable law,
the Required Lenders may agree in writing to remove and replace Administrative Agent with a successor Administrative Agent from among the Lenders with (so long as no Event of Default has occurred and is continuing) the consent of Borrower (such
consent not to be unreasonably withheld, delayed, or conditioned). In any such event, upon the acceptance of its appointment as successor Administrative Agent hereunder, such successor Administrative Agent shall succeed to all the rights, powers,
and duties of the retiring Administrative Agent and the term “Administrative Agent” shall mean such successor Administrative Agent and the retiring Administrative Agent’s appointment, powers, and duties as Administrative Agent shall
be terminated. After any retiring Administrative Agent’s resignation hereunder as Administrative Agent, the provisions of this Section 15 shall inure to its benefit as to any actions taken or omitted to be taken by it while it was
Administrative Agent under this Agreement. If no successor Administrative Agent has accepted appointment as Administrative Agent by the date which is 30 days following a retiring Administrative Agent’s notice of resignation, the retiring
Administrative Agent’s resignation shall nevertheless thereupon become effective and the Lenders shall perform all of the duties of Administrative Agent hereunder until such time, if any, as the Lenders appoint a successor Administrative Agent
as provided for above. 
 15.10 Lender in Individual Capacity. Any Lender and its respective Affiliates may make
loans to, issue letters of credit for the account of, accept deposits from, acquire equity interests in and generally engage in any kind of banking, trust, financial advisory, underwriting, or other business with Borrower and its Subsidiaries and
Affiliates and any other Person party to any Loan Documents as though such Lender were not a Lender hereunder without notice to or consent of the other members of the Lender Group. The other members of the Lender Group acknowledge that, pursuant to
such activities, such Lender and its respective Affiliates may receive information regarding Borrower or its Affiliates or any other Person party to any Loan Documents that is subject to confidentiality obligations in favor of Borrower or such other
Person and that prohibit the disclosure of such information to the Lenders, and the 
  

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Lenders acknowledge that, in such circumstances (and in the absence of a waiver of such confidentiality obligations, which waiver such Lender will use its reasonable best efforts to obtain), such
Lender shall not be under any obligation to provide such information to them. 
 15.11 Collateral Matters.

 (a) The Lenders hereby irrevocably authorize Administrative Agent, at its option and in its sole discretion, to release any
Lien on any Collateral (i) upon the termination of the Commitments and payment and satisfaction in full by Borrower of all Obligations, (ii) constituting property being sold or disposed of if a release is required or desirable in
connection therewith and if Borrower certifies to Administrative Agent that the sale or disposition is permitted under Section 6.4 or the other Loan Documents (and Administrative Agent may rely conclusively on any such certificate,
without further inquiry), (iii) constituting property in which Borrower or its Subsidiaries owned no interest at the time Administrative Agent’s Lien was granted nor at any time thereafter, or (iv) constituting property leased to
Borrower or its Subsidiaries under a lease that has expired or is terminated in a transaction permitted under this Agreement. The Lenders hereby irrevocably authorize Administrative Agent, based upon the instruction of the Required Lenders, to
credit bid and purchase (either directly or through one or more acquisition vehicles) all or any portion of the Collateral at any sale thereof conducted by Administrative Agent under the provisions of the Code, including pursuant to Sections 9-610
or 9-620 of the Code, at any sale thereof conducted under the provisions of the Bankruptcy Code, including Section 363 of the Bankruptcy Code, or at any other sale or foreclosure conducted by Administrative Agent (whether by judicial action or
otherwise) in accordance with applicable law. Except as provided above, Administrative Agent will not execute and deliver a release of any Lien on any Collateral without the prior written authorization of (y) if the release is of all or
substantially all of the Collateral, all of the Lenders, or (z) otherwise, the Required Lenders. Upon request by Administrative Agent or Borrower at any time, the Lenders will confirm in writing Administrative Agent’s authority to release
any such Liens on particular types or items of Collateral pursuant to this Section 15.11; provided, however, that (1) Administrative Agent shall not be required to execute any document necessary to evidence such
release on terms that, in Administrative Agent’s opinion, would expose Administrative Agent to liability or create any obligation or entail any consequence other than the release of such Lien without recourse, representation, or warranty, and
(2) such release shall not in any manner discharge, affect, or impair the Obligations or any Liens (other than those expressly being released) upon (or obligations of Borrower in respect of) all interests retained by Borrower, including, the
proceeds of any sale, all of which shall continue to constitute part of the Collateral. The Lenders further hereby irrevocably authorize Administrative Agent, at its option and in its sole discretion, to subordinate any Lien granted to or held by
Administrative Agent under any Loan Document to the holder of any Permitted Lien on such property if such Permitted Lien secures Permitted Purchase Money Indebtedness. 

(b) Administrative Agent shall have no obligation whatsoever to any of the Lenders to assure that the Collateral exists or is owned by
Borrower or its Subsidiaries or is cared for, protected, or insured or has been encumbered, or that Administrative Agent’s Liens have been properly or sufficiently or lawfully created, perfected, protected, or enforced or are entitled to any
particular priority, or to exercise at all or in any particular manner or under any duty of care, disclosure or fidelity, or to continue exercising, any of the rights, authorities and powers granted or available to Administrative Agent pursuant to
any of the Loan Documents, it being understood and agreed that in respect of the Collateral, or any act, omission, or event related thereto, subject to the terms and conditions contained herein, Administrative Agent may act in any manner it may deem
appropriate, in its sole discretion given Administrative Agent’s own interest in the Collateral in its capacity as one of the Lenders and that Administrative Agent shall have no other duty or liability whatsoever to any Lender as to any of the
foregoing, except as otherwise provided herein. 
  

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 15.12 Restrictions on Actions by Lenders; Sharing of Payments. 

(a) Each of the Lenders agrees that it shall not, without the express written consent of Administrative Agent, and that it shall, to the
extent it is lawfully entitled to do so, upon the written request of Administrative Agent, set off against the Obligations (other than Bank Product Obligations), any amounts owing by such Lender to Borrower or its Subsidiaries or any deposit
accounts of Borrower or its Subsidiaries now or hereafter maintained with such Lender. Each of the Lenders further agrees that it shall not, unless specifically requested to do so in writing by Administrative Agent, take or cause to be taken any
action, including, the commencement of any legal or equitable proceedings to enforce any Loan Document against Borrower or any Guarantor or to foreclose any Lien on, or otherwise enforce any security interest in, any of the Collateral. 

(b) If, at any time or times any Lender shall receive (i) by payment, foreclosure, setoff, or otherwise, any proceeds of Collateral
or any payments with respect to the Obligations (other than Bank Product Obligations), except for any such proceeds or payments received by such Lender from Administrative Agent pursuant to the terms of this Agreement, or (ii) payments from
Administrative Agent in excess of such Lender’s Pro Rata Share of all such distributions by Administrative Agent, such Lender promptly shall (A) turn the same over to Administrative Agent, in kind, and with such endorsements as may be
required to negotiate the same to Administrative Agent, or in immediately available funds, as applicable, for the account of all of the Lenders and for application to the Obligations in accordance with the applicable provisions of this Agreement, or
(B) purchase, without recourse or warranty, an undivided interest and participation in the Obligations owed to the other Lenders so that such excess payment received shall be applied ratably as among the Lenders in accordance with their Pro
Rata Shares; provided, however, that to the extent that such excess payment received by the purchasing party is thereafter recovered from it, those purchases of participations shall be rescinded in whole or in part, as applicable, and
the applicable portion of the purchase price paid therefor shall be returned to such purchasing party, but without interest except to the extent that such purchasing party is required to pay interest in connection with the recovery of the excess
payment. 
 15.13 Agency for Perfection. Administrative Agent hereby appoints each other Lender as its agent (and
each Lender hereby accepts such appointment) for the purpose of perfecting Administrative Agent’s Liens in assets which, in accordance with Article 8 or Article 9, as applicable, of the Code can be perfected by possession or control. Should any
Lender obtain possession or control of any such Collateral, such Lender shall notify Administrative Agent thereof, and, promptly upon Administrative Agent’s request therefor shall deliver possession or control of such Collateral to
Administrative Agent or in accordance with Administrative Agent’s instructions. 
 15.14 Payments by Administrative
Agent to the Lenders. All payments to be made by Administrative Agent to the Lenders shall be made by bank wire transfer of immediately available funds pursuant to such wire transfer instructions as each party may designate for itself by
written notice to Administrative Agent. Concurrently with each such payment, Administrative Agent shall identify whether such payment (or any portion thereof) represents principal, premium, fees, or interest of the Obligations. 

15.15 Concerning the Collateral and Related Loan Documents. Each member of the Lender Group authorizes and directs
Administrative Agent to enter into this Agreement and the other Loan Documents. Each member of the Lender Group agrees that any action taken by Administrative Agent in accordance with the terms of this Agreement or the other Loan Documents relating
to the Collateral and the exercise by Administrative Agent of its powers set forth therein or herein, together with such other powers that are reasonably incidental thereto, shall be binding upon all of the Lenders. 

 

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 15.16 Audits and Examination Reports; Confidentiality; Disclaimers by Lenders; Other
Reports and Information. 
 By becoming a party to this Agreement, each Lender: 

(a) is deemed to have requested that Administrative Agent furnish such Lender, promptly after it becomes available, a copy of each field
audit or examination report respecting Borrower or its Subsidiaries (each a “Report” and collectively, “Reports”) prepared by or at the request of Administrative Agent, and Administrative Agent shall so furnish each
Lender with such Reports, 
 (b) expressly agrees and acknowledges that Administrative Agent does not (i) make any
representation or warranty as to the accuracy of any Report, and (ii) shall not be liable for any information contained in any Report, 

(c) expressly agrees and acknowledges that the Reports are not comprehensive audits or examinations, that Administrative Agent or other
party performing any audit or examination will inspect only specific information regarding Borrower and its Subsidiaries and will rely significantly upon Borrower’s and its Subsidiaries’ books and records, as well as on representations of
Borrower’s personnel, 
 (d) agrees to keep all Reports and other material, non-public information regarding Borrower and
its Subsidiaries and their operations, assets, and existing and contemplated business plans in a confidential manner in accordance with Section 17.9, and 

(e) without limiting the generality of any other indemnification provision contained in this Agreement, agrees: (i) to hold
Administrative Agent and any other Lender preparing a Report harmless from any action the indemnifying Lender may take or fail to take or any conclusion the indemnifying Lender may reach or draw from any Report in connection with any loans or other
credit accommodations that the indemnifying Lender has made or may make to Borrower, or the indemnifying Lender’s participation in, or the indemnifying Lender’s purchase of, a loan or loans of Borrower, and (ii) to pay and protect,
and indemnify, defend and hold Administrative Agent, and any such other Lender preparing a Report harmless from and against, the claims, actions, proceedings, damages, costs, expenses, and other amounts (including, reasonable attorneys fees and
costs) incurred by Administrative Agent and any such other Lender preparing a Report as the direct or indirect result of any third parties who might obtain all or part of any Report through the indemnifying Lender. 

In addition to the foregoing: (w) any Lender may from time to time request of Administrative Agent in writing that Administrative Agent provide to
such Lender a copy of any report or document provided by Borrower or its Subsidiaries to Administrative Agent that has not been contemporaneously provided by Borrower or such Subsidiary to such Lender, and, upon receipt of such request,
Administrative Agent promptly shall provide a copy of same to such Lender, (x) to the extent that Administrative Agent is entitled, under any provision of the Loan Documents, to request additional reports or information from Borrower or its
Subsidiaries, any Lender may, from time to time, reasonably request Administrative Agent to exercise such right as specified in such Lender’s notice to Administrative Agent, whereupon Administrative Agent promptly shall request of Borrower the
additional reports or information reasonably specified by such Lender, and, upon receipt thereof from Borrower or such Subsidiary, Administrative Agent promptly shall provide a copy of same to such Lender, (y) to the extent that Administrative
Agent is entitled, under Section 5.7, to conduct a field examination or inspection at Borrower’s expense and Administrative Agent has not done so during the previous 12 month period, any Lender may, from time to time, reasonably
request Administrative Agent to exercise such right as specified in such Lender’s notice to Administrative Agent, whereupon Administrative Agent promptly shall exercise such right, and (z) any time that Administrative Agent renders to
Borrower a statement regarding the Loan Account, Administrative Agent shall send a copy of such statement to each Lender. 
  

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 15.17 Several Obligations; No Liability. Notwithstanding that certain of the
Loan Documents now or hereafter may have been or will be executed only by or in favor of Administrative Agent in its capacity as such, and not by or in favor of the Lenders, any and all obligations on the part of Administrative Agent (if any) to
make any credit available hereunder shall constitute the several (and not joint) obligations of the respective Lenders on a ratable basis, according to their respective Commitments, to make an amount of such credit not to exceed, in principal
amount, at any one time outstanding, the amount of their respective Commitments. Nothing contained herein shall confer upon any Lender any interest in, or subject any Lender to any liability for, or in respect of, the business, assets, profits,
losses, or liabilities of any other Lender. Each Lender shall be solely responsible for notifying its Participants of any matters relating to the Loan Documents to the extent any such notice may be required, and no Lender shall have any obligation,
duty, or liability to any Participant of any other Lender. Except as provided in Section 15.7, no member of the Lender Group shall have any liability for the acts of any other member of the Lender Group. No Lender shall be responsible to
Borrower or any other Person for any failure by any other Lender to fulfill its obligations to make credit available hereunder, nor to advance for it or on its behalf in connection with its Commitment, nor to take any other action on its behalf
hereunder or in connection with the financing contemplated herein. 
 15.18 Syndication Agent and Arrangers.
Except as otherwise set forth herein, the Syndication Agent and Arrangers shall not have any right, power, obligation, liability, responsibility or duty under this Agreement (or any other Loan Document) other than those applicable to all Lenders as
such. Without limiting the foregoing, the Syndication Agent and Arrangers shall not have or be deemed to have any fiduciary relationship with any other Lender. Each Lender acknowledges that it has not relied, and will not rely, on the Syndication
Agent or any Arranger in deciding to enter into this Agreement and each other Loan Document to which it is a party or in taking or not taking action hereunder or thereunder. 

 

	16	WITHHOLDING TAXES. 

 (a)
All payments made by Borrower hereunder or under any note or other Loan Document will be made without setoff, counterclaim, or other defense. In addition, all such payments will be made free and clear of, and without deduction or withholding for,
any present or future Taxes, and in the event any deduction or withholding of Taxes is required, Borrower shall comply with the next sentence of this Section 16(a). If any Taxes are so levied or imposed, Borrower agrees to pay the full
amount of such Taxes and such additional amounts as may be necessary so that every payment of all amounts due under this Agreement, any note, or Loan Document, including any amount paid pursuant to this Section 16(a) after withholding or
deduction for or on account of any Taxes, will not be less than the amount provided for herein; provided, however, that Borrower shall not be required to increase any such amounts if the increase in such amount payable results from Administrative
Agent’s or such Lender’s own willful misconduct or gross negligence (as finally determined by a court of competent jurisdiction). Borrower will furnish to Administrative Agent as promptly as possible after the date the payment of any Tax
is due pursuant to applicable law, certified copies of tax receipts evidencing such payment by Borrower. 
 (b) Borrower agrees
to pay any present or future stamp, value added or documentary taxes or any other excise or property taxes, charges, or similar levies that arise from any payment made hereunder or from the execution, delivery, performance, recordation, or filing
of, or otherwise with respect to this Agreement or any other Loan Document. 
  

 - 52 - 

 (c) If a Lender or Participant is entitled to claim an exemption or reduction from United
States withholding tax, such Lender or Participant agrees with and in favor of Administrative Agent, to deliver to Administrative Agent (or, in the case of a Participant, to the Lender granting the participation only) one of the following before
receiving its first payment under this Agreement: 
 (i) if such Lender or Participant is entitled to claim an exemption from
United States withholding tax pursuant to the portfolio interest exception, (A) a statement of the Lender or Participant, signed under penalty of perjury, that it is not a (I) a “bank” as described in Section 881(c)(3)(A) of
the IRC, (II) a 10% shareholder of Borrower (within the meaning of Section 871(h)(3)(B) of the IRC), or (III) a controlled foreign corporation related to Borrower within the meaning of Section 864(d)(4) of the IRC, and (B) a properly
completed and executed IRS Form W-8BEN or Form W-8IMY (with proper attachments); 
 (ii) if such Lender or Participant is
entitled to claim an exemption from, or a reduction of, withholding tax under a United States tax treaty, a properly completed and executed copy of IRS Form W-8BEN; 

(iii) if such Lender or Participant is entitled to claim that interest paid under this Agreement is exempt from United States
withholding tax because it is effectively connected with a United States trade or business of such Lender, a properly completed and executed copy of IRS Form W-8ECI; 

(iv) if such Lender or Participant is entitled to claim that interest paid under this Agreement is exempt from United States withholding
tax because such Lender or Participant serves as an intermediary, a properly completed and executed copy of IRS Form W-8IMY (with proper attachments); or 

(v) a properly completed and executed copy of any other form or forms, including IRS Form W-9, as may be required under the IRC or other
laws of the United States as a condition to exemption from, or reduction of, United States withholding or backup withholding tax. 
 Each Lender
or Participant shall provide new forms (or successor forms) upon the expiration or obsolescence of any previously delivered forms and to promptly notify Administrative Agent (or, in the case of a Participant, to the Lender granting the participation
only) of any change in circumstances which would modify or render invalid any claimed exemption or reduction. 
 (d) If a Lender
or Participant claims an exemption from withholding tax in a jurisdiction other than the United States, such Lender or such Participant agrees with and in favor of Administrative Agent, to deliver to Administrative Agent (or, in the case of a
Participant, to the Lender granting the participation only) any such form or forms, as may be required under the laws of such jurisdiction as a condition to exemption from, or reduction of, foreign withholding or backup withholding tax before
receiving its first payment under this Agreement, but only if such Lender or such Participant is legally able to deliver such forms, provided, however, that nothing in this Section 16(d) shall require a Lender or Participant to
disclose any information that it deems to be confidential (including without limitation, its tax returns). Each Lender and each Participant shall provide new forms (or successor forms) upon the expiration or obsolescence of any previously delivered
forms and to promptly notify Administrative Agent (or, in the case of a Participant, to the Lender granting the participation only) of any change in circumstances which would modify or render invalid any claimed exemption or reduction. 

(e) If a Lender or Participant claims exemption from, or reduction of, withholding tax and such Lender or Participant sells, assigns,
grants a participation in, or otherwise transfers all or part of the Obligations of Borrower to such Lender or Participant, such 

 

 - 53 - 

 
Lender or Participant agrees to notify Administrative Agent (or, in the case of a sale of a participation interest, to the Lender granting the participation only) of the percentage amount in
which it is no longer the beneficial owner of Obligations of Borrower to such Lender or Participant. To the extent of such percentage amount, Administrative Agent will treat such Lender’s or such Participant’s documentation provided
pursuant to Section 16(c) or 16(d) as no longer valid. With respect to such percentage amount, such Participant or Assignee may provide new documentation, pursuant to Section 16(c) or 16(d), if applicable.
Borrower agrees that each Participant shall be entitled to the benefits of this Section 16 with respect to its participation in any portion of the Commitments and the Obligations so long as such Participant complies with the obligations
set forth in this Section 16 with respect thereto. 
 (f) If a Lender or a Participant is entitled to a reduction in
the applicable withholding tax, Administrative Agent (or, in the case of a Participant, to the Lender granting the participation) may withhold from any interest payment to such Lender or such Participant an amount equivalent to the applicable
withholding tax after taking into account such reduction. If the forms or other documentation required by Section 16(c) or 16(d) are not delivered to Administrative Agent (or, in the case of a Participant, to the Lender granting
the participation), then Administrative Agent (or, in the case of a Participant, to the Lender granting the participation) may withhold from any interest payment to such Lender or such Participant not providing such forms or other documentation an
amount equivalent to the applicable withholding tax. 
 (g) If the IRS or any other Governmental Authority of the United States
or other jurisdiction asserts a claim that Administrative Agent (or, in the case of a Participant, to the Lender granting the participation) did not properly withhold tax from amounts paid to or for the account of any Lender or any Participant due
to a failure on the part of the Lender or any Participant (because the appropriate form was not delivered, was not properly executed, or because such Lender failed to notify Administrative Agent (or such Participant failed to notify the Lender
granting the participation) of a change in circumstances which rendered the exemption from, or reduction of, withholding tax ineffective, or for any other reason) such Lender shall indemnify and hold Administrative Agent harmless (or, in the case of
a Participant, such Participant shall indemnify and hold the Lender granting the participation harmless) for all amounts paid, directly or indirectly, by Administrative Agent (or, in the case of a Participant, to the Lender granting the
participation), as tax or otherwise, including penalties and interest, and including any taxes imposed by any jurisdiction on the amounts payable to Administrative Agent (or, in the case of a Participant, to the Lender granting the participation
only) under this Section 16, together with all costs and expenses (including attorneys fees and expenses). The obligation of the Lenders and the Participants under this subsection shall survive the payment of all Obligations and the
resignation or replacement of Administrative Agent. 
 (h) If Administrative Agent or a Lender determines, in its reasonable
discretion, that it has received a refund of any Taxes as to which it has been indemnified by Borrower or with respect to which Borrower has paid additional amounts pursuant to this Section 16, so long as no Default or Event of Default has
occurred and is continuing, it shall pay over such refund to Borrower (but only to the extent of payments made, or additional amounts paid, by Borrower under this Section 16 with respect to Taxes giving rise to such a refund), net of all
out-of-pocket expenses of Administrative Agent or such Lender and without interest (other than any interest paid by the relevant Governmental Authority with respect to such a refund); provided, that Borrower, upon the request of Administrative Agent
or such Lender, agrees to repay the amount paid over to Borrower (plus any penalties, interest or other charges, imposed by the relevant Governmental Authority, other than such penalties, interest or other charges imposed as a result of the willful
misconduct or gross negligence of Administrative Agent hereunder) to Administrative Agent or such Lender in the event Administrative Agent or such Lender is required to repay such refund to such Governmental Authority. Notwithstanding anything in
this Agreement to the contrary, this Section 16 shall not be construed to require Administrative Agent or any Lender to make available its tax returns (or any other information which it deems confidential) to Borrower or any other Person.

  

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	17	GENERAL PROVISIONS. 

 17.1
Effectiveness. This Agreement shall be binding and deemed effective when executed by Borrower, Administrative Agent, and each Lender whose signature is provided for on the signature pages hereof. 

17.2 Section Headings. Headings and numbers have been set forth herein for convenience only. Unless the contrary is
compelled by the context, everything contained in each Section applies equally to this entire Agreement. 
 17.3
Interpretation. Neither this Agreement nor any uncertainty or ambiguity herein shall be construed against the Lender Group or Borrower, whether under any rule of construction or otherwise. On the contrary, this Agreement has been
reviewed by all parties and shall be construed and interpreted according to the ordinary meaning of the words used so as to accomplish fairly the purposes and intentions of all parties hereto. 

17.4 Severability of Provisions. Each provision of this Agreement shall be severable from every other provision of this
Agreement for the purpose of determining the legal enforceability of any specific provision. 
 17.5 Bank Products and
Bank Product Providers. 
 (a) Each Bank Product Provider shall be deemed a third party beneficiary hereof and of the
provisions of the other Loan Documents for purposes of any reference in a Loan Document to the parties for whom Administrative Agent is acting; it being understood and agreed that the rights and benefits of such Bank Product Provider under the Loan
Documents consist exclusively of such Bank Product Provider’s being a beneficiary of the Liens and security interests granted to Administrative Agent and the right to share in payments and collections out of the Collateral as more fully set
forth herein. In connection with any such distribution of payments and collections, Administrative Agent shall be entitled to assume no amounts are due and payable to any Bank Product Provider unless such Bank Product Provider has notified
Administrative Agent in writing of the amount of any such liability owed to it prior to such distribution. 
 (b) Nothing
contained in this Agreement shall obligate Borrower or any of its Subsidiaries to use any Lender or its Affiliates for the provisions of bank product services as described in the definition of “Bank Products” or otherwise. 

(c) Each Lender (on behalf of itself and its Affiliates) hereby acknowledges that, except in the case of a termination of the Commitments
in connection an Event of Default, nothing contained in this Agreement or any other Loan Document shall require Borrower to post any Bank Product Collateralization with respect to any Bank Products other than Swaps. 

17.6 Debtor-Creditor Relationship. The relationship between the Lenders and Administrative Agent, on the one hand, and the
Loan Parties, on the other hand, is solely that of creditor and debtor. No member of the Lender Group has (or shall be deemed to have) any fiduciary relationship or duty to any Loan Party arising out of or in connection with the Loan Documents or
the transactions contemplated thereby, and there is no agency or joint venture relationship between the members of the Lender Group, on the one hand, and the Loan Parties, on the other hand, by virtue of any Loan Document or any transaction
contemplated therein. 
  

 - 55 - 

 17.7 Counterparts; Electronic Execution. This Agreement may be executed in any
number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, shall be deemed to be an original, and all of which, when taken together, shall constitute but one and the same Agreement. Delivery
of an executed counterpart of this Agreement by telefacsimile or other electronic method of transmission shall be equally as effective as delivery of an original executed counterpart of this Agreement. Any party delivering an executed counterpart of
this Agreement by telefacsimile or other electronic method of transmission also shall deliver an original executed counterpart of this Agreement but the failure to deliver an original executed counterpart shall not affect the validity,
enforceability, and binding effect of this Agreement. The foregoing shall apply to each other Loan Document mutatis mutandis. 

17.8 Revival and Reinstatement of Obligations. If the incurrence or payment of the Obligations by Borrower or Guarantor or
the transfer to the Lender Group of any property should for any reason subsequently be asserted, or declared, to be void or voidable under any state or federal law relating to creditors’ rights, including provisions of the Bankruptcy Code
relating to fraudulent conveyances, preferences, or other voidable or recoverable payments of money or transfers of property (each, a “Voidable Transfer”), and if the Lender Group is required to repay or restore, in whole or in
part, any such Voidable Transfer, or elects to do so upon the reasonable advice of its counsel, then, as to any such Voidable Transfer, or the amount thereof that the Lender Group is required or elects to repay or restore, and as to all reasonable
costs, expenses, and reasonable attorneys fees of the Lender Group related thereto, the liability of Borrower or Guarantor automatically shall be revived, reinstated, and restored and shall exist as though such Voidable Transfer had never been made.

 17.9 Confidentiality. 

(a) Administrative Agent and Lenders each individually (and not jointly or jointly and severally) agree that material, non-public
information regarding Borrower and its Subsidiaries, their operations, assets, and existing and contemplated business plans (“Confidential Information”) shall be treated by Administrative Agent and the Lenders in a confidential
manner, and shall not be disclosed by Administrative Agent and the Lenders to Persons who are not parties to this Agreement, except: (i) to attorneys for and other advisors, accountants, auditors, and consultants to any member of the Lender
Group (“Lender Group Representatives”), (ii) to Subsidiaries and Affiliates of any member of the Lender Group (including the Bank Product Providers), provided that any such Subsidiary or Affiliate shall have agreed to receive
such information hereunder subject to the terms of this Section 17.9, (iii) as may be required by regulatory authorities so long as such authorities are informed of the confidential nature of such information, (iv) as may be
required by statute, decision, or judicial or administrative order, rule, or regulation; provided that (x) prior to any disclosure under this clause (iv), the disclosing party agrees to provide Borrower with prior notice thereof,
to the extent that it is practicable to do so and to the extent that the disclosing party is permitted to provide such prior notice to Borrower pursuant to the terms of the applicable statute, decision, or judicial or administrative order, rule, or
regulation and (y) any disclosure under this clause (iv) shall be limited to the portion of the Confidential Information as may be required by such statute, decision, or judicial or administrative order, rule, or regulation,
(v) as may be agreed to in advance by Borrower or as requested or required by any Governmental Authority pursuant to any subpoena or other legal process, provided, that, (x) prior to any disclosure under this clause
(v) the disclosing party agrees to provide Borrower with prior notice thereof, to the extent that it is practicable to do so and to the extent that the disclosing party is permitted to provide such prior notice to Borrower pursuant to the
terms of the subpoena or other legal process and (y) any disclosure under this clause (v) shall be limited to the portion of the Confidential Information as may be required by such governmental authority pursuant to such subpoena or
other legal process, (vi) as to any such information that is or becomes generally 
  

 - 56 - 

 
available to the public (other than as a result of prohibited disclosure by Administrative Agent or the Lenders or the Lender Group Representatives), (vii) in connection with any assignment,
participation or pledge of any Lender’s interest under this Agreement, provided that any such assignee, participant, or pledgee shall have agreed in writing to receive such information hereunder subject to the terms of this Section,
(viii) in connection with any litigation or other adversary proceeding involving parties hereto which such litigation or adversary proceeding involves claims related to the rights or duties of such parties under this Agreement or the other Loan
Documents; provided, that, prior to any disclosure to any Person (other than any Loan Party, Administrative Agent, any Lender, any of their respective Affiliates, or their respective counsel) under this clause (viii) with respect
to litigation involving any Person (other than Borrower, Administrative Agent, any Lender, any of their respective Affiliates, or their respective counsel), the disclosing party agrees to provide Borrower with prior notice thereof, and (ix) in
connection with, and to the extent reasonably necessary for, the exercise of any secured creditor remedy under this Agreement or under any other Loan Document. The provisions of this Section 17.9(a) shall survive for 2 years after the
payment in full of the Obligations. 
 (b) Anything in this Agreement to the contrary notwithstanding, Administrative Agent may
provide information concerning the terms and conditions of this Agreement and the other Loan Documents to loan syndication and pricing reporting services. 

17.10 Lender Group Expenses. Borrower agrees to pay any and all Lender Group Expenses promptly after demand therefor by
Administrative Agent (or, in the case of any Lender Group Expenses of any Lender, promptly after demand therefor by such Lender) and agrees that its obligations contained in this Section 17.10 shall survive payment or satisfaction in
full of all other Obligations. 
 17.11 USA PATRIOT Act. Each Lender that is subject to the requirements of the
Patriot Act hereby notifies Borrower that pursuant to the requirements of the Act, it is required to obtain, verify and record information that identifies Borrower, which information includes the name and address of Borrower and other information
that will allow such Lender to identify Borrower in accordance with the Patriot Act. 
 17.12 Integration. This
Agreement, together with the other Loan Documents, reflects the entire understanding of the parties with respect to the transactions contemplated hereby and shall not be contradicted or qualified by any other agreement, oral or written, before the
date hereof. 
 17.13 Conversion of Facility. In the event Borrower requests that Lenders convert the loan
facility evidenced by this Agreement to a traditional asset-based lending facility, the Lenders agree that they shall consider such request in good faith; provided, that, any such conversion shall be subject to (a) mutually
acceptable amendments to the borrowing base, collateral reporting, financial covenant and certain other provisions of this Agreement, (b) credit approval of such transaction by each of the Lenders (and any Affiliate of a Lender that may become
a party to this Agreement in connection therewith) in its sole discretion, and (c) the Lenders’ receipt of field examinations of all borrowing base collateral, appraisals of inventory collateral, borrowing base certificates, collateral
reports, and such other items, agreements, documents and certificates as the Lenders may require in connection with such conversion, in each case in form and substance acceptable to the Lenders. 

17.14 Modifications regarding Fee Letter. Effective immediately upon the satisfaction of the conditions precedent set forth
in Section 3.1 on the Closing Date and without the need for any further action, (a) Watsco hereby assigns to Borrower all of the rights, obligations and liabilities of Watsco under the Fee Letter, (b) Borrower hereby assumes
all of the rights, obligations and liabilities of Watsco under the Fee Letter, (c) Wells Fargo, J.P. Morgan Securities, Inc. and J.P. Morgan Chase Bank, N.A. hereby release Watsco from any and all obligations and liabilities under the Fee
Letter, and (d) the Fee Letter is hereby deemed amended to replace all references to Watsco with references to Borrower. 

[Signature pages to follow.] 
  

 - 57 - 

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

			
	 CARRIER ENTERPRISE, LLC,

a Delaware limited liability company

		
	By:	 	 /s/ Ana M. Menendez

	Name:	 	 Ana M. Menendez

	Title:	 	 Vice President and Treasurer

			
	 WELLS FARGO BANK, N.A.,

as Administrative Agent, a Lender, Joint Lead Arranger and Joint Bookrunner

		
	By:	 	 /s/ Edward E. Wooten

	Name:	 	 Edward E. Wooten

	Title:	 	 Senior Vice President

			
	 J.P. MORGAN CHASE BANK, N.A.,

as Syndication Agent and a Lender

		
	By:	 	 /s/ Robert P. Carswell

	Name:	 	 Robert P. Carswell

	Title:	 	 Vice President

	
	 J.P. MORGAN SECURITIES, INC,

as Joint Lead Arranger and Joint Bookrunner

		
	By:	 	 /s/ Sean J. Lynch

	Name:	 	 Sean J. Lynch

	Title:	 	 Senior Vice President

			
	 THE NORTHERN TRUST COMPANY,

as a Lender

		
	By:	 	 /s/ Rick J. Gomez

	Name:	 	 Rick J. Gomez

	Title:	 	 Second Vice President

 EXHIBIT A-1 

FORM OF ASSIGNMENT AND ACCEPTANCE AGREEMENT 

This ASSIGNMENT AND ACCEPTANCE AGREEMENT (“Assignment Agreement”) is entered into as of
                                 between
                                 (“Assignor”) and
                                 (“Assignee”). Reference is made to the
Agreement described in Annex I hereto (as amended, restated, modified, supplemented, refinanced, renewed, or extended from time to time, the “Credit Agreement”). Capitalized terms used herein and not otherwise defined shall have the
meanings ascribed to them in the Credit Agreement. 
 1. In accordance with the terms and conditions of Section 13
of the Credit Agreement, the Assignor hereby sells and assigns to the Assignee, and the Assignee hereby purchases and assumes from the Assignor, that interest in and to the Assignor’s rights and obligations under the Loan Documents as of the
date hereof with respect to the Obligations owing to the Assignor, and Assignor’s portion of the Commitments, all to the extent specified on Annex I. 

2. The Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of the interest being assigned by it
hereunder and that such interest is free and clear of any adverse claim and (ii) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment Agreement and to consummate the transactions
contemplated hereby; (b) makes no representation or warranty and assumes no responsibility with respect to (i) any statements, representations or warranties made in or in connection with the Loan Documents, or (ii) the execution,
legality, validity, enforceability, genuineness, sufficiency or value of the Loan Documents or any other instrument or document furnished pursuant thereto; (c) makes no representation or warranty and assumes no responsibility with respect to
the financial condition of Borrower or any other Loan Party or the performance or observance by Borrower or any other Loan Party of any of their respective obligations under the Loan Documents or any other instrument or document furnished pursuant
thereto, and (d) represents and warrants that the amount set forth as the Purchase Price on Annex I represents the amount owed by Borrower to Assignor with respect to Assignor’s share of the Advances, as reflected on Assignor’s
books and records. 
 3. The Assignee (a) confirms that it has received copies of the Credit Agreement and the other Loan
Documents, together with copies of the financial statements referred to therein and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Assignment Agreement;
(b) agrees that it will, independently and without reliance upon Agent, Assignor, or any other Lender, based upon such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or
not taking any action under the Loan Documents; (c) confirms that it is an Eligible Transferee; (d) confirms that it is not a Loan Party or Affiliate of a Loan Party; (e) appoints and authorizes the Agent to take such action as agent
on its behalf and to exercise such powers under the Loan Documents as are delegated to Agent by the terms thereof, together with such powers as are reasonably incidental thereto; (f) agrees that it will perform in accordance with their terms
all of the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender. 

 4. Following the execution of this Assignment Agreement by the Assignor and Assignee, the
Assignor will deliver this Assignment Agreement to the Agent for recording by the Agent. The effective date of this Assignment (the “Settlement Date”) shall be the latest to occur of (a) the date of the execution and delivery hereof
by the Assignor and the Assignee, (b) the receipt by Agent for its sole and separate account a processing fee in the amount of $3,500 (if required by the Credit Agreement), (c) the receipt of any required consent of the Agent and the
Borrower, if applicable, and (d) the date specified in Annex I. 
 5. As of the Settlement Date (a) the
Assignee shall be a party to the Credit Agreement and, to the extent of the interest assigned pursuant to this Assignment Agreement, have the rights and obligations of a Lender thereunder and under the other Loan Documents, and (b) the Assignor
shall, to the extent of the interest assigned pursuant to this Assignment Agreement, relinquish its rights and be released from its obligations under the Credit Agreement and the other Loan Documents, provided, however, that nothing
contained herein shall release any assigning Lender from obligations that survive the termination of this Agreement, including such assigning Lender’s obligations under Article 15 and Section 17.9(a) of the Credit Agreement.

 6. Upon the Settlement Date, Assignee shall pay to Assignor the Purchase Price (as set forth in Annex I). From and
after the Settlement Date, Agent shall make all payments that are due and payable to the holder of the interest assigned hereunder (including payments of principal, interest, fees and other amounts) to Assignor for amounts which have accrued up to
but excluding the Settlement Date and to Assignee for amounts which have accrued from and after the Settlement Date. On the Settlement Date, Assignor shall pay to Assignee an amount equal to the portion of any interest, fee, or any other charge that
was paid to Assignor prior to the Settlement Date on account of the interest assigned hereunder and that are due and payable to Assignee with respect thereto, to the extent that such interest, fee or other charge relates to the period of time from
and after the Settlement Date. 
 7. This Assignment Agreement may be executed in counterparts and by the parties hereto in
separate counterparts, each of which when so executed and delivered shall be an original, but all of which shall together constitute one and the same instrument. This Assignment Agreement may be executed and delivered by telecopier or other
facsimile transmission all with the same force and effect as if the same were a fully executed and delivered original manual counterpart. 

8. THIS ASSIGNMENT AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

  

 2 

 IN WITNESS WHEREOF, the parties hereto have caused this Assignment Agreement and Annex I
hereto to be executed by their respective officers, as of the first date written above. 
  

			
	 [NAME OF ASSIGNOR]

as Assignor

		
	 By
	 	  

	 Name:
	 	
	 Title:
	 	
	
	 [NAME OF ASSIGNEE]

as Assignee

		
	 By
	 	  

	 Name:
	 	
	 Title:
	 	

  

			
	ACCEPTED THIS         DAY OF
                    
	
	 WELLS FARGO BANK, N.A.

a national banking association, as Administrative Agent

		
	By	 	  

	Name:	 	
	Title:	 	
	
	[ACCEPTED THIS          DAY OF
                    
	
	 CARRIER ENTERPRISE, LLC,

a Delaware limited liability company, as Borrower

		
	By	 	  

	Name:	 	
	Title:]	 	

  

 3 

 ANNEX FOR ASSIGNMENT AND ACCEPTANCE 

ANNEX I 
  

									
	1.	  	Borrower: Carrier Enterprise, LLC, a Delaware limited liability company formerly known as Carrier Sales and Distribution, LLC
			
	2.	  	Name and Date of Credit Agreement:	  	
				
		  		  		  	Credit Agreement, dated as of ___, 2009 by and among Carrier Enterprise, LLC, Borrower, the lenders from time to time a party thereto (the “Lenders”), Wells
Fargo Bank, N.A., a national banking association, and J.P. Morgan Securities, Inc., as joint lead arrangers and joint bookrunners (in such capacity, together with their successors and assigns in such capacity), Wells Fargo Bank, N.A., a national
banking association, as administrative agent for the Lenders, and J.P. Morgan Chase Bank, N.A., a national banking association, as syndication agent
			
	3.	  	Date of Assignment Agreement:	  	______________
			
	4.	  	Amounts:	  	
				
		  	a.	  	Assigned Amount of Commitment	  	$_____________
				
		  	b.	  	Assigned Amount of Advances	  	$_____________
			
	5.	  	Settlement Date:	  	______________
			
	6.	  	Purchase Price	  	$____________
		
	7.      	  	Notice and Payment Instructions, etc.

 

											
		  		  	Assignee:	  		  	Assignor:	  	
						
	  
	  		  	  
	  		  	  
	  	
	  
	  		  	  
	  		  	  
	  	
	  
	  		  	  
	  		  	  
	  	

  

 4 

	8.	Agreed and Accepted: 

  

											
		  	[ASSIGNOR]	  		  	[ASSIGNEE]
						
	  
	  	By:	  	  
	  		  	By:	  	  

	  
	  	Title:	  	  
	  		  	Title:	  	  

 

			
	 Accepted:

	
	 WELLS FARGO BANK, N.A.,

a national banking association, as Administrative Agent

		
	By	 	  

	Name:	 	
	Title:	 	

  

			
	[ACCEPTED THIS          DAY OF
                    
	
	 CARRIER ENTERPRISE, LLC,

a Delaware limited liability company, as Borrower

		
	By	 	  

	Name:	 	
	Title:]	 	

  

 5 

 EXHIBIT B-1 

FORM OF BORROWING BASE CERTIFICATE 

Wells Fargo Bank, N.A., as Administrative Agent 

under the below-referenced Credit Agreement 
 401
E. Jackson Street 
 Suite 1450 
 Tampa,
Florida 33602 
 Attn: Edward Wooten 

The undersigned, CARRIER ENTERPRISE, LLC, a Delaware limited liability company formerly known as Carrier Sales and Distribution, LLC
(“Borrower”), pursuant to Schedule 5.2 of that CREDIT AGREEMENT (as amended, restated, modified, supplemented, refinanced, renewed, or extended from time to time, the “Credit Agreement”) dated as of
                    , 2009, by and among the lenders from time to time party thereto (the “Lenders”), WELLS FARGO
BANK, N.A., a national banking association, and J.P. MORGAN SECURITIES, INC., as joint lead arrangers and joint bookrunners, J.P. MORGAN CHASE BANK, N.A., a national banking association, as syndication agent, WELLS FARGO BANK,
N.A., a national banking association, as administrative agent for the Lenders (“Administrative Agent”), and Borrower, hereby certifies to Administrative Agent that the following items, calculated in accordance with the terms and
definitions set forth in the Credit Agreement for such items are true and correct, and that Borrower is in compliance with and, after giving effect to any currently requested Advances, will be in compliance with, the terms, conditions, and
provisions of the Credit Agreement. 
 All initially capitalized terms used in this Borrowing Base Certificate have the meanings
set forth in the Credit Agreement unless specifically defined herein. 
 The Borrower hereby certifies to Administrative Agent
that, except as set forth in the annex attached hereto: (i) Borrower’s Accounts with respect to which the Account Debtor is either (a) the United States or any department, agency, or instrumentality of the United States, or
(b) any state of the United States do not exceed 10% of the aggregate amount of all Eligible Accounts (measured by Dollar amount), and (ii) the total obligations owing to Borrower with respect to any single Account Debtor do not exceed 10%
of all Eligible Accounts. 
 [Remainder of page intentionally left blank.] 

 CARRIER ENTERPRISE, LLC, a Delaware limited liability company, as Borrower 

 

			
	By:	 	  

		
	Name:	 	  

		
	Title:	 	  

 

 -2- 

 Annex A 

(attached hereto) 

 EXHIBIT C-1 

FORM OF COMPLIANCE CERTIFICATE 

[on letterhead of Carrier Enterprise, LLC] 
  

	To:	Wells Fargo Bank, N.A., as Administrative Agent 

under the below-referenced Credit Agreement 

401 E. Jackson Street 

Suite 1450 

Tampa, Florida 33602 

Attn: Edward Wooten 
  

	 	Re:	Compliance Certificate dated             , 2009 

Ladies and Gentlemen: 

Reference is made to that certain CREDIT AGREEMENT (as amended, restated, modified, supplemented, refinanced, renewed, or extended
from time to time, the “Credit Agreement”) dated as of                     , 2009, by and among the lenders from time to
time party thereto (the “Lenders”), WELLS FARGO BANK, N.A., a national banking association, and J.P. MORGAN SECURITIES, INC., as joint lead arrangers and joint bookrunners, J.P. MORGAN CHASE BANK, N.A., a
national banking association, as syndication agent, WELLS FARGO BANK, N.A., a national banking association, as administrative agent for the Lenders (“Administrative Agent”), and CARRIER ENTERPRISE, LLC, a Delaware
limited liability company formerly known as Carrier Sales and Distribution, LLC (the “Borrower”). Capitalized terms used in this Compliance Certificate have the meanings set forth in the Credit Agreement unless specifically defined
herein. 
 Pursuant to Schedule 5.1 of the Credit Agreement, the undersigned officer of Borrower hereby certifies that:

 1. The financial information of Borrower and its Subsidiaries furnished in Schedule 1 attached hereto, has been
prepared in accordance with GAAP (except for year-end adjustments and the lack of footnotes), and fairly presents in all material respects the financial condition of Borrower and its Subsidiaries. 

2. Such officer has reviewed the terms of the Credit Agreement and has made, or caused to be made under his/her supervision, a review in
reasonable detail of the transactions and condition of Borrower and its Subsidiaries during the accounting period covered by the financial statements delivered pursuant to Schedule 5.1 of the Credit Agreement. 

3. Such review has not disclosed the existence on and as of the date hereof, and the undersigned does not have knowledge of the existence
as of the date hereof, of any event or condition that constitutes a Default or Event of Default, except for such conditions or events listed on Schedule 2 attached hereto, specifying the nature and period of existence thereof and what action
Borrower and its Subsidiaries have taken, are taking, or propose to take with respect thereto. 
 4. Borrower and its
Subsidiaries are in compliance with the applicable covenants contained in Section 7 of the Credit Agreement as demonstrated on Schedule 3 hereof. 

 5. Set forth on Schedule 4 hereof, (A) Borrower is submitting a list of, and
attaching copies with respect to: (i) each Material Contract of the type described in clause (b) of the definition of “Material Contract” entered into since the delivery of the previous Compliance Certificate, and
(ii) each material amendment or modification of any such Material Contract entered into since the delivery of the previous Compliance Certificate; and (B) Borrower is submitting a list of, and attaching copies with respect to:
(i) each Material Contract of the type described in clause (a) of the definition of “Material Contract” entered into since the delivery of the previous fiscal year end Compliance Certificate, and (ii) each material
amendment or modification of any such Material Contract entered into since the delivery of the previous fiscal year end Compliance Certificate. 

[SIGNATURE APPEARS ON FOLLOWING PAGE] 

 IN WITNESS WHEREOF, this Compliance Certificate is executed by the undersigned officer of
Borrower this      day of             , 2009. 
  

			
	CARRIER ENTERPRISE, LLC, Delaware limited
liability company
		
	Signature:	 	  

	Name:	 	  

	Title:	 	  

 SCHEDULE 1 

Financial Information 

 SCHEDULE 2 

Default or Event of Default 

 SCHEDULE 3 

Financial Covenants 
  

	1.	Interest Coverage Ratio.  

The Interest Coverage Ratio, measured on a fiscal quarter-end basis, for the four fiscal quarter period ending
            , 20     , [does/does not] satisfy the requirement set forth in Section 7(a) of the Credit Agreement for the corresponding period
that the Interest Coverage Ratio for such period shall be at least 3.00 to 1.00. 
  

	2.	Leverage Ratio.  

The Leverage Ratio, measured on a fiscal quarter-end basis, for the four fiscal quarter period ending
            , 20     , [does/does not] satisfy the requirement set forth in Section 7(b) of the Credit Agreement for the corresponding period
that Leverage Ratio for such period shall not be more than 3.00 to 1.00. 
  

	3.	Capital Expenditures. 

Borrower’s and its Subsidiaries Capital Expenditures for the fiscal year to date period ending
            , 20     is $            , which [is/is not] less than or equal to
the amount set forth in Section 7(c) of the Credit Agreement for the corresponding period. 
  

 SCHEDULE 4 

Material Contracts 

(copies attached hereto) 

 EXHIBIT L-1 

FORM OF LIBOR NOTICE 

Wells Fargo Bank, N.A., as Administrative Agent 

under the below-referenced Credit Agreement 
 401
E. Jackson Street 
 Suite 1450 
 Tampa,
Florida 33602 
 Attn: Edward Wooten 

Ladies and Gentlemen: 

Reference hereby is made to that certain CREDIT AGREEMENT (as amended, restated, modified, supplemented, refinanced, renewed, or
extended from time to time, the “Credit Agreement”) dated as of             , 2009, by and among the lenders from time to time party thereto (the
“Lenders”), WELLS FARGO BANK, N.A., a national banking association, and J.P. MORGAN SECURITIES, INC., as joint lead arrangers and joint bookrunners, J.P. MORGAN CHASE BANK, N.A., a national banking association,
as syndication agent, WELLS FARGO BANK, N.A., a national banking association, as administrative agent for the Lenders (“Administrative Agent”), and CARRIER ENTERPRISE, LLC, a Delaware limited liability company formerly
known as Carrier Sales and Distribution, LLC (the “Borrower”). Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to them in the Credit Agreement. 

This LIBOR Notice represents Borrower’s request to elect the LIBOR Option with respect to outstanding Advances in the amount of
$             (the “LIBOR Rate Advance”)[, and is a written confirmation of the telephonic notice of such election given to Agent]. 

The LIBOR Rate Advance will have an Interest Period of [1, 3, or 6] month(s) commencing on
                    . 

This LIBOR Notice further confirms Borrower’s acceptance, for purposes of determining the rate of interest based on the LIBOR Rate
under the Credit Agreement, of the LIBOR Rate as determined pursuant to the Credit Agreement. 

			
	Dated:                     , 2009
	
	 CARRIER ENTERPRISE, LLC ,

a Delaware limited liability company, as Borrower

		
	By	 	  

	Name:	 	  

	Title:	 	  

 

			
	Acknowledged by:
	
	 WELLS FARGO BANK, N.A.,

a national banking association, as Administrative Agent

		
	By:	 	  

	Name:	 	  

	Title:	 	  

 SCHEDULES 

TO 

CREDIT AGREEMENT 

by and among 

CARRIER ENTERPRISE, LLC, 

as Borrower, 

THE LENDERS THAT ARE SIGNATORY THERETO, 

as the Lenders, 

WELLS FARGO BANK, N. A. 

as Joint Lead Arranger, Joint Bookrunner and Administrative Agent 

J.P. MORGAN SECURITIES, INC. 

as Joint Lead Arranger and Joint Bookrunner 

and 

J.P. MORGAN CHASE BANK, N.A. 

as Syndication Agent 

Dated as of July 1, 2009 

 SCHEDULES 

 

			
	Schedule A-1	  	Administrative Agent’s Account
	Schedule A-2	  	Authorized Persons
	Schedule B-1	  	Initial Accounting Changes
	Schedule C-1	  	Commitments
	Schedule D-1	  	Designated Account
	Schedule P-1	  	Permitted Investments
	Schedule P-2	  	Permitted Liens
	Schedule 1.1	  	Definitions
	Schedule 3.1	  	Conditions Precedent
	Schedule 3.5	  	Conditions Subsequent
	Schedule 4.1(b)	  	Capitalization of Borrower
	Schedule 4.1(c)	  	Capitalization of Borrower’s Subsidiaries
	Schedule 4.6(a)	  	States of Organization
	Schedule 4.6(b)	  	Chief Executive Offices
	Schedule 4.6(c)	  	Organizational Identification Numbers
	Schedule 4.7(b)	  	Litigation
	Schedule 4.12	  	Environmental Matters
	Schedule 4.13	  	Intellectual Property
	Schedule 4.15	  	Deposit Accounts and Securities Accounts
	Schedule 4.17	  	Material Contracts
	Schedule 4.19	  	Permitted Indebtedness
	Schedule 5.1	  	Financial Statements, Reports, Certificates
	Schedule 5.2	  	Collateral Reporting
	Schedule 11	  	Notice Address for Lenders

 [***] Certain information on this page has been omitted and filed separately with the Securities and
Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
 Schedule A-1

 Administrative Agent’s Account 

Wells Fargo Bank, N.A. 

San Francisco, CA 

ABA# [***] 

Account # [***] 

OBI: Carrier Enterprise, LLC 

 Schedule A-2 

Authorized Persons 
 The
following is a list of Authorized Persons: 
 Ana M. Menendez 

Patrick Hogan 
 Lori Moth 

 

 Schedule B-1 

Initial Accounting Changes 

Reference is made to Watsco, Inc. 2008 Annual Report Notes to Consolidated Financial Statements, Note 1—Summary of Significant Accounting Policies
and to Section 3.08(a) of Seller Disclosure Schedule to Purchase and Contribution Agreement between Carrier Corporation and Watsco, Inc. dated as of May 3, 2009. 

Upon consummation of the Joint Venture Transaction, accounting changes will be made to conform the Borrower, the Guarantor and CIAC (collectively, the
“Division Entities”) reporting to Watsco, Inc.’s Significant Accounting Policies. The most significant changes are described below but are not intended to be complete as there may be other needed accounting changes to conform
to Watsco, Inc.’s accounting practices and policies. 
 Accounts Receivable and Allowance for Doubtful Accounts 

The Division Entities establish bad debt reserves with respect to customer trade receivables from stated terms primarily based on the following:

 All receivables that are more than 360 days past due are reserved at 100% 

Receivables that are in litigation are reserved at 100% 

Receivables that are from customers who are in bankruptcy are reserved at 100% 

Receivables that are in customer dispute for more than 60 days are reserved 100% 

Watsco, Inc. establishes bad debt reserves with respect to customer trade receivables from stated terms primarily based on the following: 

All receivables that are more than 1 day but less than 30 days past due at .5% 

All receivables that are more than 31 days past due but less than 60 days past due at 2.0% 

All receivables that are more than 61 days past due but less than 90 days past due at 10.0% 

All receivables over 90 days past due from stated terms at 50% 

In addition to the above, any receivable in litigation, bankruptcy or in dispute carries a specific reserve based on potential recovery,
if any. 
 Inventories 
 The
Division entities inventories are stated at the lower of cost or market and valued on a first in – first out (“FIFO”) method. Carrier Corporation, on a consolidated basis, values its U.S. HVAC inventory on a last in first out
(“LIFO”) basis, and the related consolidated LIFO reserve is held at the Carrier level. The Division Entities hold the following inventory reserves: 

Lower of cost or market reserve 
 Obsolescence
reserve: Parts that have zero movement in last 24 months are fully reserved for. Equipment that has zero movement in last 12 months is fully reserved for with certain exceptions made to these rules based on accounting judgment. 

Shrink and Damaged reserve 
 No excess
inventory reserve is established but a calculation is made based on the on-hand inventory in excess of last 12 months movement for equipment, and the last 24 months movement for parts. Such excess inventory is reserved at net realizable value.
Included as part of the valuation of inventories are the indirect costs of carrying inventory. 

 Watsco, Inc.’s inventories are stated at the lower of cost or market and valued on a weighted-average
cost basis which is intended to approximate FIFO. As part of the valuation process, inventory reserves are established to state excess, slow-moving and damaged inventories at their estimated net realizable value. Shrink reserves are established
based on historical analysis and cycle-count process results. There are exceptions made to these rules based on accounting judgment. All indirect costs of carrying inventory are expensed as incurred. 

 Schedule C-1 

Commitments 
  

							
	 Lender
	  	Commitment
Amount	  	Commitment
Percentage	 
	 Wells Fargo Bank, NA
	  	$	37,500,000	  	50.000	% 
	 J.P. Morgan Chase Bank, NA
	  	$	25,000,000	  	33.333	% 
	 The Northern Trust Company
	  	$	12,500,000	  	16.667	% 
		  	 	 	  	 	 
		  	$	75,000,000	  	100.000	% 

 [***] Certain information on this page has been omitted and filed separately with the Securities and
Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
 Schedule D-1

 Designated Account 

JP Morgan Chase, NA 

New York, NY 

ABA#: [***] 

Account # [***] 

Account Name: Carrier Enterprise, LLC 

REF: Credit Services Wells Fargo 
  

 Schedule P-1 

Permitted Investments 

The Loan Parties have made certain cash security deposits to landlords and suppliers with respect to facilities or services in the
ordinary course of business. 

 Schedule P-2 

Permitted Liens 

The following is a list of specific liens with respect to Borrower: 

 

													
	 Debtor
	  	 Filing Location
	  	 Secured Party/Plaintiff
	  	 File Type
	  	 Filing Date
	  	 File
Number
	  	 Collateral

	 Carrier

Sales and

Distribution,
 LLC

	  	Delaware SOS	  	IDB Leasing, Inc.	  	UCC-1	  	20070669621	  	02/21/07	  	This filing was made in connection with Borrower’s lease of various items of warehouse equipment from Somerset Capital Group, Ltd.
							
	 Carrier

Sales and

Distribution,
 LLC

	  	Delaware SOS	  	Pacific Rim Capital, Inc.	  	UCC-1	  	20071036721	  	03/20/07	  	This filing was made in connection with Borrower’s lease of various items of warehouse equipment from Pacific Rim Capital, Inc.
							
	 Carrier

Sales and

Distribution,
 LLC

	  	Delaware SOS	  	Bankfinancial F.S.B.	  	UCC-1	  	20072125333	  	06/06/07	  	This filing was made in connection with Borrower’s lease of various items of warehouse equipment from Somerset Capital Group, Ltd.
							
	 Carrier

Sales and

Distribution,
 LLC

	  	Delaware SOS	  	Pacific Rim Capital, Inc.	  	UCC-1	  	20080383370	  	01/31/08	  	This filing was made in connection with Borrower’s lease of various items of warehouse equipment from Pacific Rim Capital, Inc.
							
	 Carrier

Sales and

Distribution, LLC
	  	Delaware SOS	  	MB Financial Bank N.A.	  	Assignment	  	20081800059	  	05/27/08	  	This filing was made in connection with Borrower’s lease of various items of warehouse equipment from Pacific Rim Capital,
Inc

													
	 Debtor
	  	 Filing Location
	  	 Secured Party/Plaintiff
	  	 File Type
	  	 Filing Date
	  	 File
Number
	  	 Collateral

	Carrier Sales and Distribution, LLC	  	Delaware SOS	  	MB Financial Bank N.A.	  	Assignment	  	20081871357	  	06/02/08	  	This filing was made in connection with Borrower’s lease of various items of warehouse equipment from Pacific Rim Capital, Inc
							
	Carrier Sales and Distribution, LLC	  	Dallas County, TX District Court	  	County of Dallas	  	Judgment	  	TX-05-31433	  	08/02/06	  	Borrower failed to make a timely personal property tax payment to Dallas County in connection with its Garland, TX facility. The amount of the tax owed was paid in
full, but this Judgment appears to cover unpaid court costs Dallas County incurred in the course of collection. Borrow has no records of this Judgment.
							
	Carrier Sales and Distribution, LLC	  	Harris County, TX District Court	  	 Klein Independent

School District
	  	Judgment	  	2004-38975	  	05/03/05	  	Judgment - Debtor in default judgment; however no monetary relief granted against Debtor (in rem only)
							
	Carrier Sales and Distribution, LLC	  	Broward County, FL Circuit Court	  	 Washington Mutual

Bank, F.A.
	  	Judgment	  	07-CA-034720 12	  	05/13/09	  	Borrower had de minimis interest in this location; location went into foreclosure with a Borrower mortgage or mechanics’ lien attached. Not a property Borrower
owns; Borrower was not a party to the mortgages being foreclosed.

													
	 Debtor
	  	 Filing Location
	  	 Secured Party/Plaintiff
	  	 File Type
	  	 Filing Date
	  	 File
Number
	  	 Collateral

	Carrier Sales and Distribution, LLC	  	Miami-Dade County, FL Circuit Court	  	SMPC	  	Judgment	  	04-8168 SP 25(3)	  	10/05/04	  	Borrower has no knowledge of this $82.48 judgment against it.
							
	Carrier Sales and Distribution, LLC	  	Miami-Dade County, FL Circuit Court	  	 Countrywide Home

Loans, Inc.
	  	Judgment	  	13-2008-CA-058947	  	04/08/09	  	Borrower had de minimis interest in this location; location went into foreclosure with a Borrower mortgage or mechanics’ lien attached. Not a property Borrower
owns; Borrower was not a party to the mortgages being foreclosed.
							
	Carrier Sales and Distribution, LLC	  	Miami-Dade County, FL Circuit Court	  	Indymacbank, F.S.B.	  	Judgment	  	08-31334 CA 21	  	04/24/09	  	Borrower had de minimis interest in this location; location went into foreclosure with a Borrower mortgage or mechanics’ lien attached. Not a property Borrower
owns; Borrower was not a party to the mortgages being foreclosed.)

 Schedule 1.1 

As used in the Agreement, the following terms shall have the following definitions: 

“Account” means an account (as that term is defined in the Code). 

“Account Debtor” means any Person who is obligated on an Account, chattel paper, or a general intangible. 

“Accounting Changes” means changes in accounting principles required by the promulgation of any rule, regulation,
pronouncement or opinion by the Financial Accounting Standards Board of the American Institute of Certified Public Accountants (or successor thereto or any agency with similar functions). 

“ACH Transactions” means any cash management or related services (including the Automated Clearing House processing of
electronic fund transfers through the direct Federal Reserve Fedline system) provided by a Bank Product Provider for the account of Borrower or its Subsidiaries. 

“Acquired Indebtedness” means Indebtedness of a Person whose assets or Stock is acquired by Borrower or any of its
Subsidiaries in a Permitted Acquisition; provided, however, that such Indebtedness (a) is either Purchase Money Indebtedness or a Capital Lease with respect to Equipment or mortgage financing with respect to Real Property,
(b) was in existence prior to the date of such Permitted Acquisition, and (c) was not incurred in connection with, or in contemplation of, such Permitted Acquisition. 

“Acquisition” means (a) the purchase or other acquisition by a Person or its Subsidiaries of all or substantially
all of the assets of (or any division or business line of) any other Person, or (b) the purchase or other acquisition (whether by means of a merger, consolidation, or otherwise) by a Person or its Subsidiaries of all of the Stock of any other
Person or a controlling interest in the Stock of any other Person. 
 “Additional Documents” has the meaning
specified therefor in Section 5.12 of the Agreement. 
 “Additional Lender” has the meaning
specified therefor in Section 2.2(b) of the Agreement. 
 “Additional Commitment Amount” has the
meaning specified therefor in Section 2.2(a) of the Agreement. 
 “Administrative Agent” has the
meaning specified therefor in the preamble to the Agreement. 
 “Administrative Agent’s Account” means the
Deposit Account of the Administrative Agent identified on Schedule A-1. 
 “Administrative Agent’s
Liens” means the Liens granted by Borrower or its Subsidiaries to Administrative Agent under the Loan Documents. 

“Advances” has the meaning specified therefor in Section 2.1(a) of the Agreement. 

 “Affected Lender” has the meaning specified therefor in
Section 2.13(b) of the Agreement. 
 “Affiliate” means, as applied to any Person, any other Person
who controls, is controlled by, or is under common control with, such Person. For purposes of this definition, “control” means the possession, directly or indirectly through one or more intermediaries, of the power to direct the management
and policies of a Person, whether through the ownership of Stock, by contract, or otherwise; provided, however, that, for purposes of the definition of Eligible Accounts and Section 6.12 of the Agreement: (a) any
Person which owns directly or indirectly 10% or more of the Stock having ordinary voting power for the election of directors or other members of the governing body of a Person or 10% or more of the partnership or other ownership interests of a
Person (other than as a limited partner of such Person) shall be deemed an Affiliate of such Person; (b) each director (or comparable manager) of a Person shall be deemed to be an Affiliate of such Person; and (c) each partnership in which
a Person is a general partner shall be deemed an Affiliate of such Person. 
 “Agent” and
“Agents” have the meanings specified therefor in the preamble to the Agreement. 
 “Agent-Related
Persons” means Administrative Agent, Syndication Agent and the Arrangers, together with their Affiliates, officers, directors, employees, attorneys, and agents. 

“Agreement” means the Credit Agreement to which this Schedule 1.1 is attached. 

“Applicable Margin” means, as of any date of determination, the applicable margins set forth in the following table that
correspond to the most recent Leverage Ratio calculation delivered to Administrative Agent pursuant to Section 5.1 of the Agreement (the “Leverage Ratio Calculation”); provided, however, that for the period
from the Closing Date through the date Administrative Agent receives the Leverage Ratio Calculation in respect of the testing period ending September 30, 2009, the Applicable Margin shall be at the margin in the row styled “Level II”:

  

									
	 Level
	  	 Leverage Ratio Calculation
	  	LIBOR Rate Loans	 	 	Base Rate Loans	 
	 I
	  	1.75 to 1.00 or greater	  	3.25	% 	 	2.25	% 
	 II
	  	Less than 1.75 to 1.00 but greater than or equal to 0.75 to 1.00	  	3.00	% 	 	2.00	% 
	 III
	  	Less than 0.75 to 1.00	  	2.75	% 	 	1.75	% 

 Except as set forth in the
foregoing proviso, the Applicable Margin shall be based upon the most recent Leverage Ratio Calculation, which will be calculated as of the end of each fiscal quarter, and shall be re-determined quarterly on the first day of the month following the
date of delivery to Administrative Agent of the certified Leverage Ratio Calculation pursuant to Section 5.1 of the Agreement; provided, however, that if Borrower fails to provide such certification when such certification
is due, then upon the election of the Required Lenders the Applicable Margin shall be set at the margin in the row styled “Level I” as of the first day of the month following the date on which the certification was required to be delivered
until the date on which such certification is delivered (on which date (but not retroactively, unless the Required Lenders elect otherwise), without constituting a waiver of any Default or Event of Default occasioned by the failure to timely deliver
such certification, the Applicable Margin shall be set at the margin based upon the calculations disclosed by such certification). In the event that the information regarding the Leverage Ratio contained in any certificate delivered pursuant to
Section 5.1 of the Agreement is shown to be inaccurate, and such inaccuracy, if corrected, would have led to the application of a higher Applicable Margin for any period (an “Adjustment Period”) than the Applicable
Margin actually applied for such Adjustment Period, then (i) Borrower shall immediately deliver to Administrative Agent a correct certificate for such Adjustment Period, (ii) the Applicable Margin shall be determined as if the correct
Applicable Margin (as set forth in the table above) were applicable for such Adjustment Period, and (iii) Borrower shall immediately deliver to Administrative Agent full payment in respect of the accrued additional interest as a result of such
increased Applicable Margin for such Adjustment Period, which payment shall be promptly applied by Administrative Agent to the affected Obligations. 

 “Application Event” means the occurrence of (a) a failure by Borrower
to repay all of the Obligations on the Maturity Date, or (b) an Event of Default and the election by Administrative Agent or the Required Lenders to require that payments and proceeds of Collateral be applied pursuant to
Section 2.4(b)(ii) of the Agreement. 
 “A/R Availability Amount” has the meaning set forth in the
definition of “Borrowing Base”. 
 “Arranger” and “Arrangers” have the meanings
specified therefor in the preamble to the Agreement. 
 “Assignee” has the meaning specified therefor in
Section 13.1(a) of the Agreement. 
 “Assignment and Acceptance” means an Assignment and Acceptance
Agreement substantially in the form of Exhibit A-1. 
 “Authorized Person” means any one of the
individuals identified on Schedule A-2, as such schedule is updated from time to time by written notice from Borrower to Administrative Agent. 

“Availability” means, as of any date of determination, the amount that Borrower is entitled to borrow as Advances under
Section 2.1 of the Agreement (after giving effect to all then outstanding Obligations (other than Bank Product Obligations)). 

“Bank Product” means any financial accommodation extended to Borrower or its Subsidiaries by a Bank Product Provider
(other than pursuant to the Agreement) including: (a) credit cards, (b) credit card processing services, (c) debit cards, (d) purchase cards, (e) ACH Transactions, (f) cash management, including controlled disbursement,
accounts or services, or (g) Swaps and other transactions under Hedge Agreements. 
 “Bank Product
Agreements” means those agreements entered into from time to time by Borrower or its Subsidiaries with a Bank Product Provider in connection with the obtaining of any of the Bank Products. 

“Bank Product Collateralization” means (a) in the case of any termination of the Commitments in connection with an
Event of Default, providing cash collateral (pursuant to documentation reasonably satisfactory to Administrative Agent) to be held by Administrative Agent for the benefit of the Bank Product Providers in an amount determined by Administrative Agent
as sufficient to satisfy the reasonably estimated credit exposure with respect to the then existing Bank Products, and (b) in the case of any other termination of the Commitments, providing cash collateral (pursuant to documentation reasonably
satisfactory to Administrative Agent) to be held by Administrative Agent for the benefit of the Swap Providers in an amount determined by Administrative Agent as sufficient to satisfy the reasonably estimated credit exposure with respect to the then
existing Swaps. 

 “Bank Product Obligations” means (a) all obligations, liabilities,
reimbursement obligations, interest (including any interest that accrues after the commencement of an Insolvency Proceeding, regardless of whether allowed or allowable in whole or in part as a claim in any such Insolvency Proceeding), fees, or
expenses owing by Borrower or its Subsidiaries to any Bank Product Provider pursuant to or evidenced by a Bank Product Agreement and irrespective of whether for the payment of money, whether direct or indirect, absolute or contingent, due or to
become due, now existing or hereafter arising, and (b) all amounts that Borrower or its Subsidiaries are obligated to reimburse to Administrative Agent or any member of the Lender Group as a result of Administrative Agent or such member of the
Lender Group purchasing participations from, or executing guarantees or indemnities or reimbursement obligations to, a Bank Product Provider with respect to the Bank Products provided by such Bank Product Provider to Borrower or its Subsidiaries.

 “Bank Product Provider” means any Lender or any of its Affiliates. 

“Bankruptcy Code” means title 11 of the United States Code, as in effect from time to time. 

“Base LIBOR Rate” means the rate per annum, determined by Administrative Agent in accordance with its customary
procedures, and utilizing such electronic or other quotation sources as it considers appropriate, to be the rate at which Dollar deposits (for delivery on the first day of the requested Interest Period) are offered to major banks in the London
interbank market 2 Business Days prior to the commencement of the requested Interest Period, for a term and in an amount comparable to the Interest Period and the amount of the LIBOR Rate Loan requested (whether as an initial LIBOR Rate Loan or as a
continuation of a LIBOR Rate Loan or as a conversion of a Base Rate Loan to a LIBOR Rate Loan) by Borrower in accordance with the Agreement, as rounded upwards if necessary to the next highest 1/16%. 

“Base Rate” means the greatest of (a) the Federal Funds Rate plus 0.50%, (b) the Base LIBOR Rate (which rate
shall be calculated based upon an Interest Period of 1 month and shall be determined on a daily basis based on the rate offered to major banks in the London interbank as of each such date), plus 1.50%, and (c) the rate of interest announced,
from time to time, within Wells Fargo at its principal office in San Francisco as its “Prime Rate”, with the understanding that the “Prime Rate” is one of Wells Fargo’s base rates (not necessarily the lowest of such rates)
and serves as the basis upon which effective rates of interest are calculated for those loans making reference thereto and is evidenced by the recording thereof after its announcement in such internal publications as Wells Fargo may designate.

 “Base Rate Loan” means each portion of the Advances that bears interest at a rate determined by reference to
the Base Rate. 
 “Board of Directors” means the board of directors or managers of Borrower or any committee
thereof duly authorized to act on behalf of the board of directors or managers. 
 “Borrower” has the meaning
specified therefor in the preamble to the Agreement. 
 “Borrowing” means a borrowing hereunder consisting of
Advances made on the same day by the Lenders (or Administrative Agent on behalf thereof), or by Swing Lender in the case of a Swing Loan, or by Administrative Agent in the case of a Protective Advance. 

 “Borrowing Base” means, as of any date of determination, the result of:

 (a) 70% of the amount of Eligible Accounts (the “A/R Availability Amount”), plus 

(b) the lowest of  

(i) $37,500,000, 

(ii) 50% of the value of Eligible Inventory, and 

(iii) the A/R Availability Amount, minus 

(c) the aggregate amount of reserves, if any, established by Administrative Agent under Section 2.1(c) of the
Agreement. 
 “Borrowing Base Certificate” means a certificate in the form of Exhibit B-1. 

“Borrowing Base Excess Amount” has the meaning set forth in Section 2.4(e). 

“Business Day” means any day that is not a Saturday, Sunday, or other day on which banks are authorized or required to
close in the state of New York or Florida, except that, if a determination of a Business Day shall relate to a LIBOR Rate Loan, the term “Business Day” also shall exclude any day on which banks are closed for dealings in Dollar deposits in
the London interbank market. 
 “Capital Expenditures” means, with respect to any Person for any period, the
aggregate of all expenditures by such Person and its Subsidiaries during such period that are capital expenditures as determined in accordance with GAAP, whether such expenditures are paid in cash or financed. 

“Capitalized Lease Obligation” means that portion of the obligations under a Capital Lease that is required to be
capitalized in accordance with GAAP. 
 “Capital Lease” means a lease that is required to be capitalized for
financial reporting purposes in accordance with GAAP. 
 “Carrier” means Carrier Corporation, a Delaware
corporation. 
 “Carrier Access Agreement” means the Collateral Access Agreement between Carrier and
Administrative Agent, in form and substance satisfactory to Administrative Agent. 
 “Carrier Distribution
Agreements” means, collectively, (a) the Primary Carrier Distribution Agreement, (b) the Distributor Agreements dated as of the Closing Date between Carrier, on the one hand, and the Division Entities, on the other hand,
(c) the Distribution Agreement dated as of the Closing Date between ICP, on the one hand, and Borrower, on the other hand, and (d) each other distribution agreement entered into between Carrier or any of its Affiliates, on the one hand,
and a Loan Party, on the other hand, in each case as amended and modified from time to time in accordance with Section 6.7(b) of the Agreement. 

“Carrier Inventory Agreement” means the Carrier Inventory Agreement between Carrier and Administrative Agent, in form
and substance satisfactory to Administrative Agent. 

 “Cash Equivalents” means (a) direct obligations of, or obligations the
principal of and interest on which are unconditionally guaranteed by, the United States (or by any agency thereof to the extent such obligations are backed by the full faith and credit of the United States), in each case maturing within one year
from the date of acquisition thereof, (b) commercial paper having the highest rating, at the time of acquisition thereof, of Standard & Poor’s or Moody’s in either case maturing within six months from the date
of acquisition thereof, (c) certificates of deposit, bankers’ acceptances and time deposits maturing within one-hundred eighty days of the date of acquisition thereof issued or guaranteed by or placed with, and money market deposit
accounts issued or offered by, any domestic office of any commercial bank organized under the laws of the United States or any state thereof which has a combined capital and surplus and undivided profits of not less than $500,000,000, (d) fully
collateralized repurchase agreements with a term of not more than thirty (30) days for securities described in clause (a) above and entered into with a financial institution satisfying the criteria described in clause
(c) above, (e) mutual funds investing solely in any one or more of the Cash Equivalents described in clauses (a) through (d) above, (f) debt securities with a maturity of no greater than 365 days and rated
at least “A-” by Standard & Poor’s or at least “A3” by Moody’s, and (g) subject to the restriction set forth in Section 4.21, other debt or equity securities which are listed on a
national securities exchange or freely traded in the over-the-counter market so long as the cost of such securities does not exceed at any time in the aggregate an amount equal to 2% of Consolidated Tangible Assets as of the most recent fiscal year
end. 
 “Change of Control” means that (a) Watsco fails to own and control, directly or indirectly, more
than 50% of the Stock of Borrower having the right to vote for the election of members of the Board of Directors, (b) any “person” or “group” (within the meaning of Sections 13(d) and 14(d) of the Exchange Act), other than
Permitted Holders, becomes the beneficial owner (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, more than 40% of the Stock of Borrower having the right to vote for the election of members of the Board of Directors,
(c) a majority of the members of the Board of Directors do not constitute Continuing Directors, or (d) Borrower fails to own and control, directly or indirectly, more than 50% of the Stock of each other Loan Party. 

“CIAC” means Carrier InterAmerica Corporation, a United States Virgin Islands corporation. 

“Closing Date” means the date of the making of the initial Advance (or other extension of credit) hereunder, or, if
earlier, the date on which Administrative Agent provides Borrower a written or oral notice that each of the conditions precedent set forth on Schedule 3.1 either have been satisfied or have been waived. 

“Code” means the New York Uniform Commercial Code, as in effect from time to time. 

“Collateral” means all assets and interests in assets and proceeds thereof now owned or hereafter acquired by Borrower
or its Subsidiaries in or upon which a Lien is granted by such Person in favor of Administrative Agent or the Lenders under any of the Loan Documents, excluding, in all cases, (a) any interest in Real Property, and (b) the Consigned
Inventory (as defined in the Carrier Inventory Agreement). 
 “Collateral Access Agreement” means a landlord
waiver, bailee letter, or acknowledgement agreement of any lessor, warehouseman, processor, consignee, or other Person in possession of, having a Lien upon, or having rights or interests in Borrower’s or its Subsidiaries’ books and
records, Equipment, or Inventory, in each case, in form and substance reasonably satisfactory to Administrative Agent. 

“Collections” means all cash, checks, notes, instruments, and other items of payment (including insurance proceeds, cash
proceeds of asset sales, rental proceeds, and tax refunds). 

 “Comfort Products” has the meaning set forth Section 4.9(a) of
the Agreement. 
 “Comfort Products Contributed Assets” has the meaning set forth in the Joint Venture
Agreement. 
 “Commitment” means, with respect to each Lender, its Commitment, and with respect to all Lenders,
their Commitments, in each case as such Dollar amounts are set forth beside such Lender’s name on Schedule C-1 or in the Assignment and Acceptance pursuant to which such Lender became a Lender hereunder, as such amounts may be increased
or reduced from time to time pursuant to Section 2.2 or Section 2.4(c) or pursuant to assignments made in accordance with the provisions of Section 13.1 of the Agreement. 

“Compliance Certificate” means a certificate substantially in the form of Exhibit C-1 delivered by the treasurer
or chief financial officer of Borrower to Administrative Agent. 
 “Confidential Information” has the meaning
specified therefor in Section 17.9(a) of the Agreement. 
 “Consignment Agreement” means the
Consignment Agreement dated as of the Closing Date between Carrier, as consignor, and Borrower, as consignee, as amended and modified from time to time in accordance with Section 6.7(b) of the Agreement. 

“Consolidated EBIT” means, for Borrower and its Subsidiaries for any four-quarter period ending on the date of
computation thereof, an amount equal to the sum of (a) Consolidated Net Income for such period plus (b) to the extent deducted in determining Consolidated Net Income for such period and without duplication, (i) Consolidated
Interest Expense, and (ii) income tax expense, in each case, determined on a consolidated basis in accordance with GAAP; provided, that, for the purposes of calculating Consolidated EBIT for any period of 4 consecutive fiscal
quarters (each, a “Reference Period”), (A) if at any time during such Reference Period (and after the Closing Date), Borrower or any of its Subsidiaries shall have made a Permitted Acquisition, Consolidated EBIT for such
Reference Period shall be calculated after giving pro forma effect thereto (including pro forma adjustments arising out of events which are directly attributable to such Permitted Acquisition, are factually supportable, and are expected to have a
continuing impact, as determined on a basis consistent with Article 11 of Regulation S-X promulgated under the Securities Act and as interpreted by the staff of the SEC) or in such other manner acceptable to Administrative Agent as if any such
Permitted Acquisition occurred on the first day of such Reference Period, (B) if at any time during such Reference Period (and after the Closing Date), Borrower or any of its Subsidiaries shall have made a disposition of any Subsidiary or any
division or business line, Consolidated EBIT for such Reference Period shall be calculated as if such disposition occurred on the first day of such Reference Period, and (C) in the case of any Reference Period that includes periods prior to the
Closing Date, Consolidated EBIT for the periods prior to the Closing Date shall be calculated after giving pro forma effect to the Joint Venture Transaction (including pro forma adjustments arising out of events which are directly attributable to
the Joint Venture Transaction, are factually supportable, and are expected to have a continuing impact, as determined on a basis consistent with Article 11 of Regulation S-X promulgated under the Securities Act and as interpreted by the staff of the
SEC) or in such other manner acceptable to Administrative Agent as if the Joint Venture Transaction was consummated on the first day of such Reference Period. 

 “Consolidated EBITDA” means, for Borrower and its Subsidiaries for any
four-quarter period ending on the date of computation thereof, an amount equal to the sum of (a) Consolidated Net Income for such period plus (b) to the extent deducted in determining Consolidated Net Income for such period and
without duplication, (i) Consolidated Interest Expense, (ii) income tax expense, and (iii) depreciation and amortization (including non-cash, stock based compensation), in each case, determined on a consolidated basis in accordance
with GAAP; provided, that, for the purposes of calculating Consolidated EBITDA for any period of 4 consecutive fiscal quarters (each, a “Reference Period”), (A) if at any time during such Reference Period (and
after the Closing Date), Borrower or any of its Subsidiaries shall have made a Permitted Acquisition, Consolidated EBITDA for such Reference Period shall be calculated after giving pro forma effect thereto (including pro forma
adjustments arising out of events which are directly attributable to such Permitted Acquisition, are factually supportable, and are expected to have a continuing impact, as determined on a basis consistent with Article 11 of Regulation S-X
promulgated under the Securities Act and as interpreted by the staff of the SEC) or in such other manner acceptable to Administrative Agent as if any such Permitted Acquisition occurred on the first day of such Reference Period, (B) if at any
time during such Reference Period (and after the Closing Date), Borrower or any of its Subsidiaries shall have made a disposition of any Subsidiary or any division or business line, Consolidated EBITDA for such Reference Period shall be calculated
as if such disposition occurred on the first day of such Reference Period, and (C) in the case of any Reference Period that includes periods prior to the Closing Date, Consolidated EBITDA for the periods prior to the Closing Date shall be
calculated after giving pro forma effect to the Joint Venture Transaction (including pro forma adjustments arising out of events which are directly attributable to the Joint Venture Transaction, are factually supportable, and are expected to have a
continuing impact, as determined on a basis consistent with Article 11 of Regulation S-X promulgated under the Securities Act and as interpreted by the staff of the SEC) or in such other manner acceptable to Administrative Agent as if the Joint
Venture Transaction was consummated on the first day of such Reference Period. 
 “Consolidated Interest
Expense” means, for Borrower and its Subsidiaries for any four-quarter period ending on the date of computation thereof, determined on a consolidated basis in accordance with GAAP, the sum of (a) total interest expense, including
without limitation, the interest component of any payments in respect of Capitalized Lease Obligations during such period (whether or not actually paid during such period), plus (b) the net amount payable (or minus the net amount
receivable) under Hedge Agreements during such period (whether or not actually paid or received during such period). 

“Consolidated Net Income” means, for any four-quarter period ending on the date of computation thereof, the net income
(or loss) of Borrower and its Subsidiaries for such period determined on a consolidated basis in accordance with GAAP, but excluding therefrom (to the extent otherwise included therein and without duplication) (a) any extraordinary gains or
losses, (b) any gains attributable to write-ups of assets, (c) cash and non-cash restructuring charges directly attributable to the Joint Venture Transaction, (d) other non-recurring, non-cash charges, and (e) any equity interest
of Borrower or any Subsidiary in the unremitted earnings of any Person that is not a Subsidiary. 
 “Consolidated
Tangible Assets” means, on any date of computation, Consolidated Total Assets minus intangible assets of Borrower and its Subsidiaries on that date. 

“Consolidated Total Assets” means, for Borrower and its Subsidiaries on any date of computation, determined on a
consolidated basis in accordance with GAAP, the aggregate book value of the assets of Borrower and its Subsidiaries on that date. 

“Continuing Director” means (a) any member of the Board of Directors who was a director (or comparable manager) of
Borrower on the Closing Date, and (b) any individual who becomes a member of the Board of Directors after the Closing Date if such individual was approved, appointed or nominated for election to the Board of Directors by one or more of the
Permitted Holders or a majority of the Continuing Directors. 

 “Control Agreement” means a control agreement, in form and substance
reasonably satisfactory to Administrative Agent, executed and delivered by Borrower or one of its Subsidiaries, Administrative Agent, and the applicable securities intermediary (with respect to a Securities Account) or bank (with respect to a
Deposit Account). 
 “Copyright Security Agreement” has the meaning specified therefor in the Security
Agreement. 
 “CPR” means Carrier (Puerto Rico), Inc., a Delaware corporation. 

“Daily Balance” means, as of any date of determination and with respect to any Obligation, the amount of such Obligation
owed at the end of such day. 
 “Default” means an event, condition, or default that, with the giving of
notice, the passage of time, or both, would be an Event of Default. 
 “Defaulting Lender” means any Lender
that fails to make any Advance (or other extension of credit) that it is required to make hereunder within 3 days after the date that it is required to do so hereunder. 

“Defaulting Lender Rate” means (a) for the first 3 days from and after the date the relevant payment is due, the
Federal Funds Rate, and (b) thereafter, the interest rate then applicable to Advances that are Base Rate Loans (inclusive of the Applicable Margin applicable thereto). 

“Deposit Account” means any deposit account (as that term is defined in the Code). 

“Designated Account” means the Deposit Account of Borrower identified on Schedule D-1, which Deposit Account may
be changed in the discretion of Borrower upon 30 days prior written notice to Administrative Agent. 
 “Designated
Account Bank” has the meaning specified therefor in Schedule D-1, which institution may be changed in the discretion of Borrower upon 30 days prior written notice to Administrative Agent. 

“Division Entities” means, collectively, CIAC and CPR. 

“Dollars” or “$” means United States dollars. 

“Eligible Accounts” means those Accounts created by the Loan Parties in the ordinary course of their business that arise
out of the Loan Parties’ sale of goods or rendition of services, that comply with each of the representations and warranties respecting Eligible Accounts made in the Loan Documents, and that are not excluded as ineligible by virtue of one or
more of the excluding criteria set forth below; provided, however, that such criteria may be revised from time to time by Administrative Agent in Administrative Agent’s Permitted Discretion to address the results of any audit
performed by Administrative Agent from time to time after the Closing Date; provided further, that Administrative Agent will give prompt notice of any revisions to such criteria made by Administrative Agent. In determining the amount to be
included, Eligible Accounts shall be calculated net of customer deposits and unapplied cash. Eligible Accounts shall not include the following: 

(a) Accounts that the Account Debtor has failed to pay within 60 days of the original terms of payment, 

 (b) Accounts owed by an Account Debtor (or its Affiliates) where 25% or more of all Accounts
owed by that Account Debtor (or its Affiliates) are deemed ineligible under clause (a) above, 
 (c) Accounts with
respect to which the Account Debtor is an Affiliate of the Loan Parties or an employee or agent of the Loan Parties or any Affiliate of the Loan Parties, 

(d) Accounts arising in a transaction wherein goods are placed on consignment or are sold pursuant to a guaranteed sale, a sale or
return, a sale on approval, a bill and hold, or any other terms by reason of which the payment by the Account Debtor may be conditional, 

(e) Accounts that are not payable in Dollars, 

(f) Accounts with respect to which the Account Debtor either (i) does not maintain its chief executive office in the United States
(including Puerto Rico) or Canada, or (ii) is not organized under the laws of the United States (or any state thereof or Puerto Rico) or Canada (or any province thereof), or (iii) is the government of any foreign country or sovereign
state, or of any state, province, municipality, or other political subdivision thereof, or of any department, agency, public corporation, or other instrumentality thereof, unless (y) the Account is supported by an irrevocable letter of credit
reasonably satisfactory to Administrative Agent (as to form, substance, and issuer or domestic confirming bank) that has been delivered to Administrative Agent and is directly drawable by Administrative Agent, or (z) the Account is covered by
credit insurance in form, substance, and amount, and by an insurer, reasonably satisfactory to Administrative Agent, 
 (g) to
the extent exceeding 10% of the aggregate amount of all Eligible Accounts (measured by Dollar amount), Accounts with respect to which the Account Debtor is either (i) the United States or any department, agency, or instrumentality of the United
States, or (ii) any state of the United States, unless the applicable Loan Party has complied, to the reasonable satisfaction of Administrative Agent, with the Assignment of Claims Act, 31 USC §3727, or applicable state law comparable
thereto (if any), 
 (h) Accounts with respect to which the Account Debtor is a creditor of the Loan Parties, has or has
asserted a right of setoff, or has disputed its obligation to pay all or any portion of the Account, to the extent of such claim, right of setoff, or dispute, 

(i) Accounts with respect to an Account Debtor whose total obligations owing to the Loan Parties exceed 10% (such percentage, as applied
to a particular Account Debtor, being subject to reduction by Administrative Agent in its Permitted Discretion if the creditworthiness of such Account Debtor deteriorates) of all Eligible Accounts, to the extent of the obligations owing by such
Account Debtor in excess of such percentage; provided, however, that, in each case, the amount of Eligible Accounts that are excluded because they exceed the foregoing percentage shall be determined by Administrative Agent based on all
of the otherwise Eligible Accounts prior to giving effect to any eliminations based upon the foregoing concentration limit, 

(j) Accounts with respect to which the Account Debtor is subject to an Insolvency Proceeding, is not Solvent, and/or has gone out of
business, 
 (k) Accounts, the collection of which, Administrative Agent, in its Permitted Discretion, believes to be doubtful
by reason of the Account Debtor’s financial condition, 
 (l) Accounts that are not subject to a valid and perfected first
priority Administrative Agent’s Lien, 

 (m) Accounts with respect to which (i) the goods giving rise to such Account have not
been shipped and billed to the Account Debtor, or (ii) the services giving rise to such Account have not been performed and billed to the Account Debtor, 

(n) Accounts with respect to which the Account Debtor is a Sanctioned Person or Sanctioned Entity, or 

(o) Accounts that represent the right to receive progress payments or other advance billings that are due prior to the completion of
performance by the Loan Parties of the subject contract for goods or services. 
 “Eligible Inventory” means
Inventory consisting of first quality raw materials and finished goods held for sale in the ordinary course of the Loan Parties’ business, that complies with each of the representations and warranties respecting Eligible Inventory made in the
Loan Documents, and that is not excluded as ineligible by virtue of one or more of the excluding criteria set forth below; provided, however, that such criteria may be revised from time to time by Administrative Agent in Administrative
Agent’s Permitted Discretion to address the results of any audit or appraisal performed by Administrative Agent from time to time after the Closing Date; provided further, that Administrative Agent will give prompt notice of any
revisions to such criteria made by Administrative Agent. In determining the amount to be so included, Inventory shall be valued at the lower of cost or market on a basis consistent with the Loan Parties’ historical accounting practices. An item
of Inventory shall not be included in Eligible Inventory if: 
 (a) the Loan Parties do not have good, valid, and marketable
title thereto, 
 (b) the Loan Parties do not have actual and exclusive possession thereof (either directly or through a bailee
or agent of the Loan Parties), 
 (c) it is not located in the continental United States (or Puerto Rico) or, subject to the
Loan Parties’ execution and delivery of such agreements, documents, filings, opinions and other items as Administrative Agent may reasonably require in order to perfect and protect the Administrative Agent’s Liens in such Inventory, in
Canada, 
 (d) it is in-transit to or from a location of the Loan Parties (other than in-transit from one location to another
location), 
 (e) it is the subject of a bill of lading or other document of title, 

(f) it is not subject to a valid and perfected first priority Administrative Agent’s Lien, 

(g) it consists of goods returned or rejected by the Loan Parties’ customers, 

(h) it is held by the Loan Parties on consignment pursuant to the Consignment Agreement or any other consignment or similar arrangement;

 (i) it has been delivered by the Loan Parties to a customer or other Person pursuant to a consignment or other similar
arrangement; or 
 (j) it consists of goods that are obsolete or slow moving (being goods that remain unsold after 360 days or
more), restrictive or custom items, work-in-process, or goods that constitute spare parts, packaging and shipping materials, supplies used or consumed in the Loan Parties’ business, bill and hold goods, defective goods, “seconds,” or
Inventory acquired on consignment. 

 “Eligible Transferee” means (a) a commercial bank organized under the
laws of the United States, or any state thereof, and having total assets in excess of $500,000,000, (b) a commercial bank organized under the laws of any other country which is a member of the Organization for Economic Cooperation and
Development or a political subdivision of any such country and which has total assets in excess of $500,000,000, provided that such bank is acting through a branch or agency located in the United States, (c) a finance company, insurance
company, or other financial institution or fund that is engaged in making, purchasing, or otherwise investing in commercial loans in the ordinary course of its business and having (together with its Affiliates) total assets in excess of
$500,000,000, (d) any Affiliate (other than individuals) of a pre-existing Lender, (e) so long as no Event of Default has occurred and is continuing, any other Person approved by Administrative Agent and Borrower (such approval by
Borrowers not to be unreasonably withheld, conditioned or delayed), and (f) during the continuation of an Event of Default, any other Person approved by Administrative Agent. 

“Environmental Action” means any written complaint, summons, citation, notice, directive, order, claim, litigation,
investigation, judicial or administrative proceeding, judgment, letter, or other written communication from any Governmental Authority, or any third party involving violations of Environmental Laws or releases of Hazardous Materials (a) from
any assets, properties, or businesses of any Borrower, any Subsidiary of a Borrower, or any of their predecessors in interest, (b) from adjoining properties or businesses, or (c) from or onto any facilities which received Hazardous
Materials generated by any Borrower, any Subsidiary of a Borrower, or any of their predecessors in interest. 

“Environmental Law” means any applicable federal, state, provincial, foreign or local statute, law, rule, regulation,
ordinance, code, binding and enforceable guideline, binding and enforceable written policy, or rule of common law now or hereafter in effect and in each case as amended, or any judicial or administrative interpretation thereof, including any
judicial or administrative order, consent decree or judgment, in each case, to the extent binding on Borrower or its Subsidiaries, relating to the environment, the effect of the environment on employee health, or Hazardous Materials, in each case as
amended from time to time. 
 “Environmental Liabilities” means all liabilities, monetary obligations, losses,
damages, punitive damages, consequential damages, treble damages, costs and expenses (including all reasonable fees, disbursements and expenses of counsel, experts, or consultants, and costs of investigation and feasibility studies), fines,
penalties, sanctions, and interest incurred as a result of any claim or demand, or Remedial Action required, by any Governmental Authority or any third party, and which relate to any Environmental Action. 

“Environmental Lien” means any Lien in favor of any Governmental Authority for Environmental Liabilities. 

“Equipment” means equipment (as that term is defined in the Code). 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and any successor statute thereto.

 “ERISA Affiliate” means (a) any Person subject to ERISA whose employees are treated as employed by the
same employer as the employees of a Loan Party under IRC Section 414(b), (b) any trade or business subject to ERISA whose employees are treated as employed by the same employer as the employees of a Loan Party under IRC
Section 414(c), (c) solely for purposes of Section 302 of ERISA and Section 412 of the IRC, any organization subject to ERISA that is a member of an affiliated service group of which a Loan Party is a member under IRC
Section 414(m), or (d) solely for purposes of Section 302 of ERISA and Section 412 of the IRC, any Person subject to ERISA that is a party to an arrangement with a Loan Party and whose employees are aggregated with the employees
of a Loan Party under IRC Section 414(o). 

 “ERISA Event” means (a) any “reportable event”, as defined
in Section 4043 of ERISA or the regulations issued thereunder with respect to a Plan (other than an event for which the 30-day notice period is waived); (b) the existence with respect to any Plan of an “accumulated funding
deficiency” (as defined in Section 412 of the Code or Section 302 of ERISA), whether or not waived; (c) the filing pursuant to Section 412(d) of the Code or Section 303(d) of ERISA of an application for a waiver of the
minimum funding standard with respect to any Plan; (d) the incurrence by Borrower or any of its ERISA Affiliates of any liability under Title IV of ERISA with respect to the termination of any Plan; (e) the receipt by Borrower or any ERISA
Affiliate from the PBGC or a plan administrator appointed by the PBGC of any notice relating to an intention to terminate any Plan or Plans or to appoint a trustee to administer any Plan; (f) the incurrence by Borrower or any of its ERISA
Affiliates of any liability with respect to the withdrawal or partial withdrawal from any Plan or Multiemployer Plan; or (g) the receipt by Borrower or any ERISA Affiliate of any notice, or the receipt by any Multiemployer Plan from Borrower or
any ERISA Affiliate of any notice, concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected to be, insolvent or in reorganization, within the meaning of Title IV of ERISA. 

“Event of Default” has the meaning specified therefor in Section 8 of the Agreement. 

“Exchange Act” means the Securities Exchange Act of 1934, as in effect from time to time. 

“Federal Funds Rate” means, for any period, a fluctuating interest rate per annum equal to, for each day during such
period, the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published on the next succeeding Business Day by the Federal Reserve Bank of New York,
or, if such rate is not so published for any day which is a Business Day, the average of the quotations for such day on such transactions received by Administrative Agent from three Federal funds brokers of recognized standing selected by it.

 “Fee Letter” means that certain fee letter dated June 16, 2009 among Borrower (which assumed the
obligations of Watsco thereunder pursuant to Section 17.14 of the Agreement), Wells Fargo, J.P. Morgan Securities, Inc. and J.P. Morgan Chase Bank, N.A. 

“Foreign Lender” means any Lender or Participant that is not a United States person within the meaning of IRC section
7701(a)(30). 
 “Foreign Subsidiary” means any Subsidiary of Borrower, direct or indirect, which is organized
under the laws of any jurisdiction other than any state of the United States. 
 “Funded Indebtedness” means,
as of any date of determination, all Indebtedness for borrowed money or letters of credit of Borrower and its Subsidiaries (including all such Indebtedness of other Persons that is guaranteed by Borrower or its Subsidiaries), determined on a
consolidated basis in accordance with GAAP, including, in any event, but without duplication, with respect to Borrower and its Subsidiaries, the Revolver Usage and the amount of their Capitalized Lease Obligations. 

 “Funding Date” means the date on which a Borrowing occurs. 

“Funding Losses” has the meaning specified therefor in Section 2.12(b)(ii) of the Agreement. 

“GAAP” means generally accepted accounting principles as in effect from time to time in the United States, consistently
applied. 
 “Governing Documents” means, with respect to any Person, the certificate or articles of
incorporation, by-laws, or other organizational documents of such Person. 
 “Governmental Authority” means any
federal, state, local, or other governmental or administrative body, instrumentality, board, department, or agency or any court, tribunal, administrative hearing body, arbitration panel, commission, or other similar dispute-resolving panel or body.

 “Guarantors” means, collectively, CPR and each other Subsidiary of Borrower that becomes a guarantor after
the Closing Date pursuant to Section 5.11 of the Agreement, excluding in all cases all Foreign Subsidiaries, and “Guarantor” means any one of them. 

“Guaranty” means that certain general continuing guaranty executed and delivered by each Guarantor in favor of
Administrative Agent, for the benefit of the Lender Group and the Bank Product Providers, in form and substance reasonably satisfactory to Administrative Agent. 

“Hazardous Materials” means (a) substances that are defined or listed in, or otherwise classified pursuant to, any
applicable laws or regulations as “hazardous substances,” “hazardous materials,” “hazardous wastes,” “toxic substances,” or any other formulation intended to define, list, or classify substances by reason of
deleterious properties such as ignitability, corrosivity, reactivity, carcinogenicity, reproductive toxicity, or “EP toxicity”, (b) oil, petroleum, or petroleum derived substances, natural gas, natural gas liquids, synthetic gas,
drilling fluids, produced waters, and other wastes associated with the exploration, development, or production of crude oil, natural gas, or geothermal resources, (c) any flammable substances or explosives or any radioactive materials, and
(d) asbestos in any form or electrical equipment that contains any oil or dielectric fluid containing levels of polychlorinated biphenyls in excess of 50 parts per million. 

“Hedge Agreement” means any and all agreements or documents now existing or hereafter entered into by Borrower or any of
its Subsidiaries that provide for an interest rate, credit, commodity or equity swap, cap, floor, collar, forward foreign exchange transaction, currency swap, cross currency rate swap, currency option, or any combination of, or option with respect
to, these or similar transactions, for the purpose of hedging Borrower’s or any of its Subsidiaries’ exposure to fluctuations in interest or exchange rates, loan, credit exchange, security, or currency valuations or commodity prices.

 “Holdout Lender” has the meaning specified therefor in Section 14.2(a) of the Agreement.

 “Indebtedness” means (a) all obligations for borrowed money,
(b) all obligations evidenced by bonds, debentures, notes, or other similar instruments and all reimbursement or other obligations in respect of letters of credit, bankers acceptances, or other financial products, (c) all obligations as a
lessee under Capital Leases, (d) all obligations or liabilities of others secured by a Lien on any asset of a Person, irrespective of whether such obligation or liability is assumed, (e) all obligations to pay the deferred purchase price
of assets (other than trade payables incurred in the ordinary course of business and repayable in accordance with customary trade practices), (f) all obligations owing under Hedge Agreements, (g) any Prohibited Preferred Stock, and
(h) any obligation guaranteeing or intended to guarantee (whether directly or indirectly guaranteed, endorsed, co-made, discounted, or sold with recourse) any obligation of any other Person that constitutes Indebtedness under any of clauses
(a) through (g) above. For purposes of this definition, (i) the amount of any Indebtedness represented by a guaranty or other similar instrument shall be the lesser of the principal amount of the obligations guaranteed and still
outstanding and the maximum amount for which the guaranteeing Person may be liable pursuant to the terms of the instrument embodying such Indebtedness, and (ii) the amount of any Indebtedness described in clause (d) above shall be the
lower of the amount of the obligation and the fair market value of the assets securing such obligation. 
 “Indemnified
Liabilities” has the meaning specified therefor in Section 10.3 of the Agreement. 
 “Indemnified
Person” has the meaning specified therefor in Section 10.3 of the Agreement. 
 “Initial Accounting
Changes” means the accounting changes described on Schedule B-1. 
 “Insolvency Proceeding”
means any proceeding commenced by or against any Person under any provision of the Bankruptcy Code or under any other state or federal bankruptcy or insolvency law, assignments for the benefit of creditors, formal or informal moratoria,
compositions, extensions generally with creditors, or proceedings seeking reorganization, arrangement, or other similar relief. 

“Intercompany Subordination Agreement” means a subordination agreement executed and delivered by Borrower, each of its
Subsidiaries, and Administrative Agent, the form and substance of which is reasonably satisfactory to Administrative Agent. 

“Interest Coverage Ratio” means, as of any date of determination, the ratio of (a) Consolidated EBIT for the 4
fiscal quarter period ended as of such date, to (b) Consolidated Interest Expense for such period. 
 “Interest
Period” means, with respect to each LIBOR Rate Loan, a period commencing on the date of the making of such LIBOR Rate Loan (or the continuation of a LIBOR Rate Loan or the conversion of a Base Rate Loan to a LIBOR Rate Loan) and ending 1, 3
or 6 months thereafter; provided, however, that (a) interest shall accrue at the applicable rate based upon the LIBOR Rate from and including the first day of each Interest Period to, but excluding, the day on which any Interest
Period expires, (b) any Interest Period that would end on a day that is not a Business Day shall be extended to the next succeeding Business Day unless such Business Day falls in another calendar month, in which case such Interest Period shall
end on the next preceding Business Day, (c) with respect to an Interest 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
Interest Period), the Interest Period shall end on the last Business Day of the calendar month that is 1, 3 or 6 months after the date on which the Interest Period began, as applicable, and (d) Borrower may not elect an Interest Period which
will end after the Maturity Date. 
 “ICP” means International Comfort Products, LLC, a Delaware limited
liability company. 
 “Inventory” means inventory (as that term is defined in the Code). 

 “Investment” means, with respect to any Person, any investment by such
Person in any other Person (including Affiliates) in the form of loans, guarantees, advances, capital contributions (excluding (a) commission, travel, and similar advances to officers and employees of such Person made in the ordinary course of
business, and (b) bona fide Accounts arising in the ordinary course of business consistent with past practice), or acquisitions of Indebtedness, Stock, or all or substantially all of the assets of such other Person (or of any division or
business line of such other Person), and any other items that are or would be classified as investments on a balance sheet prepared in accordance with GAAP. 

“IRC” means the Internal Revenue Code of 1986, as in effect from time to time. 

“Issuing Lender” means Wells Fargo or any other Lender that, at the request of Borrower and with the consent of
Administrative Agent, agrees, in such Lender’s sole discretion, to become an Issuing Lender for the purpose of issuing Letters of Credit or Reimbursement Undertakings pursuant to Section 2.11 of the Agreement. 

“Joint Venture Agreement” means that certain Purchase and Contribution Agreement, dated as of May 3, 2009, between
Watsco and Carrier, as amended by the Amendment to the Purchase and Contribution Agreement dated as of June 29, 2009 by and between Watsco and Carrier. 

“Joint Venture Assets” means, collectively, (a) all assets of Borrower reflected on the “Financial
Statements” described in Section 4.9(b) of the Agreement, other than assets disposed of prior to the Closing Date in accordance with the terms of the Joint Venture Agreement, (b) equity interests representing 100% of the Stock
of the Division Entities, and (c) the Comfort Products Contributed Assets. 
 “Joint Venture Documents”
means the Joint Venture Agreement, the Carrier Distribution Agreements, the Consignment Agreement, the Trade Name Agreement, the Transition Services Agreement, and all other Ancillary Agreements (as defined in the Joint Venture Agreement).

 “Joint Venture Transaction” means, collectively, the transactions contemplated to be consummated pursuant to
the Joint Venture Agreement on the closing date thereunder, including, without limitation, (a) Watsco’s direct and/or indirect contribution to Borrower of the Comfort Products Contributed Assets, and (b) Watsco’s acquisition,
directly or indirectly, of a 60% membership interest in Borrower. 
 “Lender” and “Lenders”
have the respective meanings set forth in the preamble to the Agreement, and shall include any other Person made a party to the Agreement in accordance with the provisions of Section 13.1 of the Agreement. 

“Lender Group” means each of the Lenders (including the Issuing Lender), Agents and Arrangers, or any one or more of
them. 

 “Lender Group Expenses” means all (a) costs or expenses (including
taxes, and insurance premiums) required to be paid by Borrower or its Subsidiaries under any of the Loan Documents that are paid, advanced, or incurred by the Lender Group, (b) reasonable out-of-pocket fees or charges paid or incurred by the
Agents and Arrangers in connection with the Lender Group’s transactions with Borrower or its Subsidiaries under any of the Loan Documents, including, fees or charges for photocopying, notarization, couriers and messengers, telecommunication,
public record searches (including tax lien, litigation, and UCC searches and including searches with the patent and trademark office, the copyright office, or the department of motor vehicles), filing, recording, publication, appraisal,
(c) reasonable out-of-pocket costs and expenses incurred by Administrative Agent in the disbursement of funds to Borrower or other members of the Lender Group (by wire transfer or otherwise), (d) reasonable out-of-pocket charges paid or
incurred by Administrative Agent resulting from the dishonor of checks payable by or to any Loan Party, (e) reasonable out-of-pocket costs and expenses paid or incurred by the Administrative Agent during the continuance of an Event of Default,
in gaining possession of, maintaining, handling, preserving, storing, shipping, selling, preparing for sale, or advertising to sell the Collateral, or any portion thereof, irrespective of whether a sale is consummated, (f) reasonable
out-of-pocket audit fees and expenses (including travel, meals, and lodging) of Administrative Agent related to any inspections or audits of the Loan Parties and the Collateral, provided that Lender Group Expenses shall only include audit fees and
expenses for one inspection and audit conducted during each calendar year and for any other inspections and audits initiated during the existence of an Event of Default, (g) reasonable out-of-pocket costs and expenses of third party claims or
any other suit paid or incurred by the Lender Group in enforcing or defending the Loan Documents or in connection with the transactions contemplated by the Loan Documents or the Lender Group’s relationship with Borrower or any of its
Subsidiaries, (h) each Agent’s and Arranger’s reasonable out-of-pocket costs and expenses (including reasonable attorneys fees (for one outside counsel only)) incurred in advising, structuring, drafting, reviewing, administering
(including travel, meals, and lodging), syndicating, or amending the Loan Documents, and (i) each Agent’s and each Lender’s reasonable out-of-pocket costs and expenses (including reasonable attorneys fees (for one outside counsel
only), accountants, consultants, and other advisors fees and expenses) incurred in terminating, enforcing (including attorneys, accountants, consultants, and other advisors fees and expenses incurred in connection with a “workout,” a
“restructuring,” or an Insolvency Proceeding concerning Borrower or any of its Subsidiaries or in exercising rights or remedies under the Loan Documents), or defending the Loan Documents, irrespective of whether suit is brought, or in
taking any Remedial Action concerning the Collateral. 
 “Lender Group Representatives” has the meaning
specified therefor in Section 17.9 of the Agreement. 
 “Lender-Related Person” means, with respect
to any Lender, such Lender, together with such Lender’s Affiliates, officers, directors, employees, attorneys, and agents. 

“Letter of Credit” means a letter of credit issued by Issuing Lender or a letter of credit issued by Underlying Issuer,
as the context requires. 
 “Letter of Credit Collateralization” means either (a) providing cash
collateral (pursuant to documentation reasonably satisfactory to Administrative Agent, including provisions that specify that the Letter of Credit fee and all usage charges set forth in the Agreement will continue to accrue while the Letters of
Credit are outstanding) to be held by Administrative Agent for the benefit of those Lenders in an amount equal to 105% of the then existing Letter of Credit Usage, (b) causing the Letters of Credit to be returned to the Issuing Lender with
evidence satisfactory to the Issuing Lender of the cancellation thereof, or (c) providing Administrative Agent with a standby letter of credit, in form and substance reasonably satisfactory to Administrative Agent, from a commercial bank
acceptable to Administrative Agent (in its sole discretion) in an amount equal to 105% of the then existing Letter of Credit Usage (it being understood that the Letter of Credit fee and all usage charges set forth in the Agreement will continue to
accrue while the Letters of Credit are outstanding and that any such fees that accrue must be an amount that can be drawn under any such standby letter of credit). 

“Letter of Credit Disbursement” means a payment made by Issuing Lender or Underlying Issuer pursuant to a Letter of
Credit. 
 “Letter of Credit Usage” means, as of any date of determination, the aggregate undrawn amount of all
outstanding Letters of Credit. 

 “Leverage Ratio” means, as of any date of determination, the ratio of
(a) the amount of Funded Indebtedness as of such date, to (b) Consolidated EBITDA for the 4 fiscal quarter period ended as of such date. 

“LIBOR Deadline” has the meaning specified therefor in Section 2.12(b)(i) of the Agreement. 

“LIBOR Notice” means a written notice in the form of Exhibit L-1. 

“LIBOR Option” has the meaning specified therefor in Section 2.12(a) of the Agreement. 

“LIBOR Rate” means, for each Interest Period for each LIBOR Rate Loan, the rate per annum determined by Administrative
Agent by dividing (a) the Base LIBOR Rate for such Interest Period, by (b) 100% minus the Reserve Percentage. The LIBOR Rate shall be adjusted on and as of the effective day of any change in the Reserve Percentage.

 “LIBOR Rate Loan” means each portion of an Advance that bears interest at a rate determined by reference to
the LIBOR Rate. 
 “Lien” means any mortgage, deed of trust, pledge, hypothecation, assignment, charge, deposit
arrangement, encumbrance, easement, lien (statutory or other), security interest, or other security arrangement and any other preference, priority, or preferential arrangement of any kind or nature whatsoever, including any conditional sale contract
or other title retention agreement, the interest of a lessor under a Capital Lease and any synthetic or other financing lease having substantially the same economic effect as any of the foregoing. 

“Loan Account” has the meaning specified therefor in Section 2.9 of the Agreement. 

“Loan Documents” means the Agreement, any Borrowing Base Certificate, the Control Agreements, the Security Agreement,
the Fee Letter, the Guaranty, the Intercompany Subordination Agreement, the Letters of Credit, the Trademark Security Agreement, the Copyright Security Agreement, the Patent Security Agreement, the Carrier Inventory Agreement, the Carrier Access
Agreement, any note or notes executed by Borrower in connection with the Agreement and payable to any member of the Lender Group, any letter of credit application entered into by Borrower in connection with the Agreement, and any other agreement
entered into, now or in the future, by Borrower or any of its Subsidiaries and any member of the Lender Group in connection with the Agreement. 

“Loan Party” means Borrower or any Guarantor. 

“Margin Stock” as defined in Regulation U of the Board of Governors of the Federal Reserve System as in effect from time
to time. 
 “Material Adverse Change” means (a) a material adverse change in the business, operations,
results of operations, assets, liabilities or financial condition of Borrower and its Subsidiaries, taken as a whole, (b) a material impairment of Borrower’s and its Subsidiaries ability, taken as a whole, to perform their obligations
under the Loan Documents to which they are parties or of the Lender Group’s ability, taken as a whole, to enforce the Obligations or realize upon the Collateral, or (c) a material impairment of the enforceability or priority, taken as a
whole, of Administrative Agent’s Liens with respect to the Collateral as a result of an action or failure to act on the part of Borrower or its Subsidiaries. 

 “Material Contract” means (a) any agreement with respect to Borrower
or any Subsidiary which Watsco is required to file pursuant to Item 601(b)(10) of Regulation S-K (17 C.F.R. 229, et seq.) with Watsco’s most recent Annual Report filed after the Closing Date on Form 10-K, (b) the Carrier
Distribution Agreements, and (c) solely for purposes of Sections 4.2, 6.7 and 8.8 of the Agreement, the Consignment Agreement, the Trade Name Agreement, and the Transition Services Agreement. 

“Maturity Date” has the meaning specified therefor in Section 3.3 of the Agreement. 

“Maximum Revolver Amount” means $75,000,000, as increased by the amount of Additional Commitment Amounts in accordance
with Section 2.2 of the Agreement, and as decreased by the amount of reductions in the Commitments in accordance with Section 2.4(c) of the Agreement. 

“Multiemployer Plan” shall have the meaning set forth in Section 4001(a)(3) of ERISA. 

“Net Cash Proceeds” means, with respect to any sale or disposition by Borrower or any of its Subsidiaries of assets, the
amount of cash proceeds received (directly or indirectly) from time to time (whether as initial consideration or through the payment of deferred consideration) by or on behalf of Borrower or its Subsidiaries, in connection therewith after deducting
therefrom only (a) the amount of any Indebtedness secured by any Permitted Lien on any asset (other than (i) Indebtedness owing to Administrative Agent or any Lender under the Agreement or the other Loan Documents and
(ii) Indebtedness assumed by the purchaser of such asset) which is required to be, and is, repaid in connection with such sale or disposition, (b) reasonable fees, commissions, and expenses related thereto and required to be paid by
Borrower or such Subsidiary in connection with such sale or disposition and (c) taxes paid or payable to any taxing authorities by Borrower or such Subsidiary in connection with such sale or disposition, in each case to the extent, but only to
the extent, that the amounts so deducted are, at the time of receipt of such cash, actually paid or payable to a Person that is not an Affiliate of Borrower or any of its Subsidiaries, and are properly attributable to such transaction. 

“Obligations” means (a) all loans (including any Swing Loans), Advances, debts, principal, interest (including any
interest that accrues after the commencement of an Insolvency Proceeding, regardless of whether allowed or allowable in whole or in part as a claim in any such Insolvency Proceeding), contingent reimbursement or indemnification obligations with
respect to Reimbursement Undertakings or with respect to Letters of Credit, premiums, liabilities (including all amounts charged to the Loan Account pursuant to the Agreement), obligations (including indemnification obligations), fees (including the
fees provided for in the Fee Letter), Lender Group Expenses (including any fees or expenses that accrue after the commencement of an Insolvency Proceeding, regardless of whether allowed or allowable in whole or in part as a claim in any such
Insolvency Proceeding), guaranties, covenants, and duties of any kind and description owing by Borrower to the Lender Group pursuant to or evidenced by the Loan Documents and irrespective of whether for the payment of money, whether direct or
indirect, absolute or contingent, due or to become due, now existing or hereafter arising, and including all interest not paid when due and all other expenses or other amounts that Borrower is required to pay or reimburse by, in each case, the Loan
Documents or by law or otherwise in connection with the Loan Documents, and (b) all Bank Product Obligations. Any reference in the Agreement or in the Loan Documents to the Obligations shall include all or any portion thereof and any
extensions, modifications, renewals, or alterations thereof, both prior and subsequent to any Insolvency Proceeding. 

“OFAC” means The Office of Foreign Assets Control of the U.S. Department of the Treasury. 

“Originating Lender” has the meaning specified therefor in Section 13.1(e) of the Agreement. 

 “Overadvance” has the meaning specified therefor in Section 2.5
of the Agreement. 
 “Participant” has the meaning specified therefor in Section 13.1(e) of the
Agreement. 
 “Patent Security Agreement” has the meaning specified therefor in the Security Agreement.

 “Patriot Act” has the meaning specified therefor in Section 4.18 of the Agreement. 

“Payoff Date” means the first date on which all of the Obligations are paid in full and the Commitments of the Lenders
are terminated. 
 “PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA, and
any successor entity performing similar functions. 
 “Permitted Acquisition” means any Acquisition so long as:

 (a) no Default or Event of Default shall have occurred and be continuing or would result from the consummation of the proposed
Acquisition and the proposed Acquisition is consensual, 
 (b) no Indebtedness will be incurred, assumed, or would exist with
respect to Borrower or its Subsidiaries as a result of such Acquisition, other than Permitted Indebtedness, and no Liens will be incurred, assumed, or would exist with respect to the assets of Borrower or its Subsidiaries as a result or such
Acquisition, other than Permitted Liens, 
 (c) to the extent the purchase consideration payable in respect of such proposed
Acquisition (including deferred payments and other forms of obligations) exceeds $25,000,000, Borrower has provided Administrative Agent with written confirmation, supported by reasonably detailed calculations, that on a pro forma basis (including
pro forma adjustments arising out of events which are directly attributable to such proposed Acquisition, are factually supportable, and are expected to have a continuing impact, in each case, determined as if the combination had been accomplished
at the beginning of the relevant period; such eliminations and inclusions to be determined on a basis consistent with Article 11 of Regulation S-X promulgated under the Securities Act and as interpreted by the staff of the SEC) created by adding the
historical combined financial statements of Borrower (including the combined financial statements of any other Person or assets that were the subject of a prior Permitted Acquisition during the relevant period) to the historical consolidated
financial statements of the Person to be acquired (or the historical financial statements related to the assets to be acquired) pursuant to the proposed Acquisition, Borrower and its Subsidiaries (i) would have been in compliance with the
financial covenants in Section 7 of the Agreement for the 4 fiscal quarter period ended immediately prior to the proposed date of consummation of such proposed Acquisition, and (ii) are projected to be in compliance with the
financial covenants in Section 7 for the 4 fiscal quarter period ended one year after the proposed date of consummation of such proposed Acquisition, 

(d) to the extent the purchase consideration payable in respect of such proposed Acquisition (including deferred payments and other forms
of obligations) exceeds $25,000,000, Borrower has provided Administrative Agent with forecasted balance sheets, profit and loss statements, and cash flow statements of the Person to be acquired, all prepared on a basis consistent with such
Person’s historical financial statements, together with appropriate supporting details and a statement of underlying assumptions for the 1 year period following the date of the proposed Acquisition, in form and detail (including as to scope and
underlying assumptions) reasonably satisfactory to Administrative Agent, 

 (e) Borrower has provided Administrative Agent with written notice of the proposed
Acquisition at least 15 Business Days prior to the anticipated closing date of the proposed Acquisition, and Borrower provides Administrative Agent copies of the acquisition agreement and other material documents relative to the proposed Acquisition
within 5 Business Days following the closing of the proposed Acquisition, 
 (f) the assets being acquired (other than a de
minimis amount of assets in relation to Borrower’s and its Subsidiaries’ total assets), or the Person whose Stock is being acquired, are useful in or engaged in, as applicable, the business of Borrower and its Subsidiaries or a
business reasonably related thereto, 
 (g) the assets being acquired (other than a de minimis amount of assets in
relation to the assets being acquired) are located within the United States or Canada or the Person whose Stock is being acquired is organized in a jurisdiction located within the United States or Canada, 

(h) the subject assets or Stock, as applicable, are being acquired directly by a Loan Party, and, in connection therewith, the applicable
Loan Party shall have complied with Section 5.11 or 5.12, as applicable, of the Agreement, and 
 (i) to the
extent that Borrower’s Leverage Ratio (as calculated in accordance with clause (c) above for the 4 fiscal quarter period ended immediately prior to the proposed date of consummation of such proposed Acquisition) would exceed 2.00 to
1.00 after giving effect to the consummation of the proposed Acquisition, the purchase consideration payable in respect of all Permitted Acquisitions consummated during any fiscal year (including the proposed Acquisition and including deferred
payment and other forms of obligations) shall not exceed $25,000,000 in the aggregate. 
 “Permitted
Discretion” means a determination made in the exercise of reasonable (from the perspective of a secured lender) business judgment. 

“Permitted Dispositions” means: 

(a) sales, abandonment, or other dispositions of Equipment for fair market value that is substantially worn, damaged, obsolete or
otherwise not necessary for the principal business operations in the ordinary course of business, 
 (b) sales of Inventory to
buyers in the ordinary course of business, 
 (c) the use or transfer of money or Cash Equivalents in a manner that is not
prohibited by the terms of the Agreement or the other Loan Documents, 
 (d) the licensing, on a non-exclusive basis, of
patents, trademarks, copyrights, and other intellectual property rights in the ordinary course of business, 
 (e) the granting
of Permitted Liens, 
 (f) the sale or discount, in each case without recourse, of Accounts arising in the ordinary course of
business, but only in connection with the compromise or collection thereof, 
 (g) any involuntary loss, damage or destruction
of property, 

 (h) any involuntary condemnation, seizure or taking, by exercise of the power of eminent
domain or otherwise, or confiscation or requisition of use of property, 
 (i) the leasing or subleasing of assets of Borrower
or its Subsidiaries in the ordinary course of business, 
 (j) the sale or issuance of Stock (other than Prohibited Preferred
Stock) of Borrower, 
 (k) the lapse of registered patents, trademarks and other intellectual property of Borrower and its
Subsidiaries to the extent not economically desirable in the conduct of their business, 
 (l) the making of a Restricted
Distribution that is expressly permitted to be made pursuant to the Agreement, 
 (m) the making of a Permitted Investment,

 (n) dispositions of Equipment or Real Property to the extent that (i) such property is exchanged for credit against the
purchase price of similar replacement property or (ii) the proceeds of such disposition are reasonably promptly applied to the purchase price of such replacement property, 

(o) dispositions of assets constituting Permitted Intercompany True-Up Transactions, and 

(p) dispositions of assets (other than Accounts, intellectual property, licenses, Stock of Subsidiaries of Borrower, or Material
Contracts) not otherwise permitted in clauses (a) through (o) above so long as made at fair market value and the aggregate fair market value of all assets disposed of in all such dispositions since the Closing Date (including
the proposed disposition) would not exceed $25,000,000. 
 “Permitted Distributions” means: (a) any
Restricted Distribution by a Subsidiary of Borrower made to Borrower or any other Loan Party and to any other Person owning Stock in such Subsidiary, with the Restricted Distribution being made ratably according to their respective Stock holdings;
(b) any Restricted Distribution by Borrower or any Subsidiary made as a dividend payment or other distribution, in each case payable solely in the common equity interest of such Person; (c) any Restricted Distribution by Borrower so long
as (i) no Default or Event of Default shall have occurred and be continuing or would result from the making of the proposed Restricted Distribution, (ii) on a pro forma basis, after giving effect to any such Restricted Distribution and any
Advances or other Debt incurred or assumed in connection therewith, Borrower shall be in compliance with the financial covenants set forth in Section 7 (measured as if the making of any such Restricted Distribution had occurred on the
last day of the most recently ended fiscal quarter for which Borrower has provided financial statements to Administrative Agent), (iii) the aggregate amount of such Restricted Distributions permitted in any fiscal year (or any fiscal year to
date period) shall not exceed 80% of Consolidated Net Income for such fiscal year (or fiscal year to date period), and (iv) on or prior to the date of each such Restricted Distribution, Borrower shall have delivered to Administrative Agent, in
form reasonably satisfactory to Administrative Agent, a certification by the treasurer or chief financial officer of Borrower that, immediately after giving effect to such Restricted Distribution, (A) no Default or Event of Default shall have
occurred and is continuing and (B) Borrower shall be in pro forma compliance with the requirements of clauses (c)(ii) and (iii) above; and (d) distributions of assets constituting Permitted Intercompany True-Up
Transactions. 

 “Permitted Holders” means, collectively, Watsco and Carrier, and any direct
or indirect wholly-owned Subsidiary of Watsco and Carrier, respectively, that is a “Transferee” of “Membership Interests” pursuant to Section 12.1(b) of the Amended and Restated Operating Agreement of Borrower, as the same
may be amended from time to time in accordance with the terms and conditions of the Agreement. 
 “Permitted
Indebtedness” means: 
 (a) Indebtedness evidenced by the Agreement and the other Loan Documents, together with
Indebtedness owed to Underlying Issuers with respect to Underlying Letters of Credit, 
 (b) Indebtedness set forth on
Schedule 4.19, 
 (c) Permitted Purchase Money Indebtedness, 

(d) endorsement of instruments or other payment items for deposit, 

(e) Indebtedness consisting of (i) unsecured guarantees incurred in the ordinary course of business with respect to surety and
appeal bonds, performance bonds, bid bonds, appeal bonds, completion guarantee and similar obligations; (ii) unsecured guarantees arising with respect to customary indemnification obligations to purchasers in connection with Permitted
Dispositions; and (iii) unsecured guarantees with respect to Indebtedness of Borrower or one of its Subsidiaries, to the extent that the Person that is obligated under such guaranty could have incurred such underlying Indebtedness, 

(f) unsecured Indebtedness of Borrower that is incurred on the date of the consummation of a Permitted Acquisition solely for the purpose
of consummating such Permitted Acquisition so long as (i) no Event of Default has occurred and is continuing or would result therefrom, (ii) such unsecured Indebtedness is not incurred for working capital purposes, (iii) such
unsecured Indebtedness does not mature prior to the date that is 12 months after the Maturity Date, and (iv) such Indebtedness is subordinated in right of payment to the Obligations on terms and conditions reasonably satisfactory to
Administrative Agent,, 
 (g) Acquired Indebtedness in an amount not to exceed $20,000,000 outstanding at any one time,

 (h) Indebtedness incurred in the ordinary course of business under performance, surety, statutory, and appeal bonds,

 (i) Indebtedness owed to any Person providing property, casualty, liability, or other insurance to Borrower or any of its
Subsidiaries, so long as the amount of such Indebtedness is not in excess of the amount of the unpaid cost of, and shall be incurred only to defer the cost of, such insurance for the year in which such Indebtedness is incurred and such Indebtedness
is outstanding only during such year, 
 (j) the incurrence by Borrower or its Subsidiaries of Indebtedness under Hedge
Agreements that are incurred for the bona fide purpose of hedging the interest rate or foreign currency risk associated with Borrower’s and its Subsidiaries’ operations and not for speculative purposes, 

(k) unsecured Indebtedness incurred in respect of netting services, overdraft protection, and other like services, in each case, incurred
in the ordinary course of business, 

 (l) contingent liabilities in respect of any indemnification obligation, adjustment of
purchase price, non-compete, or similar obligation of Borrower or the applicable Loan Party incurred in connection with the consummation of one or more Permitted Acquisitions, 

(m) Indebtedness composing Permitted Investments, 

(n) Refinancing Indebtedness of any previously qualified Permitted Indebtedness, 

(o) Indebtedness of a Subsidiary of the Borrower owed to a Loan Party or any other Permitted Intercompany Advances, 

(p) Guarantees of any Indebtedness permitted hereunder, and 

(q) unsecured Indebtedness of up to $25,000,000 in the aggregate. 

“Permitted Intercompany Advances” means loans made by (a) a Loan Party to another Loan Party, (b) a non-Loan
Party to another non-Loan Party, (c) a non-Loan Party to a Loan Party, so long as the parties thereto are party to the Intercompany Subordination Agreement, and (d) a Loan Party to any Foreign Subsidiary in the ordinary course of business
to the extent that no Event of Default has occurred and is continuing. 
 “Permitted Intercompany True-Up
Transactions” means those transactions expressly contemplated pursuant to Section 7.02 of the Joint Venture Agreement, pursuant to which Borrower and its Subsidiaries may make and/or receive transfers, assignments, dispositions and/or
distributions from or to Watsco, Carrier and their respective Subsidiaries, from time to time, of assets and liabilities, in each such case in order to more fully carry out the transactions contemplated by the Joint Venture Agreement;
provided, that, the aggregate value of all assets transferred, assigned, disposed of and distributed by Borrower and its Subsidiaries pursuant to Section 7.02 of the Joint Venture Agreement (net of the aggregate value of all assets
received by Borrower and its Subsidiaries pursuant to Section 7.02 of the Joint Venture Agreement) shall not exceed $10,000,000, excluding from the foregoing limitation any transfers, assignments, disposals and distributions of cash of Borrower
as of the Closing Date to the exent made pursuant to Section 7.02 of the Joint Venture Agreement within 15 days after the Closing Date. 

“Permitted Investments” means: 

(a) Investments in cash and Cash Equivalents, 

(b) Investments in negotiable instruments deposited or to be deposited for collection in the ordinary course of business, 

(c) advances made in connection with purchases of goods or services in the ordinary course of business, 

(d) Investments received in settlement of amounts due to any Loan Party or any of its Subsidiaries effected in the ordinary course of
business or owing to any Loan Party or any of its Subsidiaries as a result of Insolvency Proceedings involving an Account Debtor or upon the foreclosure or enforcement of any Lien in favor of a Loan Party or its Subsidiaries, 

(e) Investments owned by any Loan Party or any of its Subsidiaries on the Closing Date and set forth on Schedule P-1, 

 (f) guarantees permitted under the definition of Permitted Indebtedness, 

(g) Permitted Intercompany Advances, 

(h) Stock or other securities acquired in connection with the satisfaction or enforcement of Indebtedness or claims due or owing to a
Loan Party or its Subsidiaries (in bankruptcy of customers or suppliers or otherwise outside the ordinary course of business) or as security for any such Indebtedness or claims, 

(i) deposits of cash made in the ordinary course of business to secure performance of operating leases, 

(j) non-cash loans or advances to employees, officers, and directors of Borrower or any of its Subsidiaries for the purpose of purchasing
Stock in Borrower so long as the proceeds of such loans are used in their entirety to purchase such stock in Borrower, 
 (k)
loans or advances to employees, officers, and directors of Borrower or any of its Subsidiaries in the ordinary course of business for travel, relocation and related expenses and/or other analogous expenses, 

(l) Permitted Acquisitions, 

(m) Investments in Loan Parties, 

(n) repurchases of Stock of Borrower that constitute Permitted Distributions, and 

(o) Investments by the Borrower and its Subsidiaries not otherwise permitted hereunder in an aggregate outstanding amount not to exceed
$5,000,000 at any time. 
 “Permitted Liens” means 

(a) Liens held by Administrative Agent to secure the Obligations, 

(b) Liens for unpaid taxes, assessments, or other governmental charges or levies that either (i) are not yet delinquent, or
(ii) do not have priority over Administrative Agent’s Liens and the underlying taxes, assessments, or charges or levies are the subject of Permitted Protests, 

(c) judgment and attachment Liens arising solely as a result of the existence of judgments, orders, or awards that do not constitute an
Event of Default under Section 8.3 of the Agreement, 
 (d) Liens set forth on Schedule P-2; provided,
however, that to qualify as a Permitted Lien, any such Lien described on Schedule P-2 shall only secure the Indebtedness that it secures on the Closing Date and any Refinancing Indebtedness in respect thereof, 

(e) the interests of lessors under operating leases and non-exclusive licensors under license agreements, 

(f) purchase money Liens or the interests of lessors under Capital Leases to the extent that such Liens or interests secure Permitted
Purchase Money Indebtedness and so long as (i) such Lien attaches only to the asset purchased or acquired and the proceeds thereof, and (ii) such Lien only secures the Indebtedness that was incurred to acquire the asset purchased or
acquired or any Refinancing Indebtedness in respect thereof, 

 (g) Liens arising by operation of law in favor of warehousemen, landlords, carriers,
mechanics, materialmen, laborers, or suppliers, incurred in the ordinary course of business and not in connection with the borrowing of money, and which Liens either (i) are for sums not yet delinquent, or (ii) are the subject of Permitted
Protests, 
 (h) Liens on amounts deposited to secure Borrower’s and its Subsidiaries obligations in connection with
worker’s compensation, unemployment insurance, or other Social Security laws and regulations, 
 (i) Liens on amounts
deposited to secure Borrower’s and its Subsidiaries obligations in connection with the making or entering into of bids, tenders, or leases, and other obligations of a like nature, in each case in the ordinary course of business and not in
connection with the borrowing of money, 
 (j) Liens on amounts deposited to secure Borrower’s and its Subsidiaries
reimbursement obligations with respect to surety or appeal bonds, performance bonds, statutory obligations, and other obligations of a like nature, in each case obtained in the ordinary course of business, 

(k) with respect to any Real Property, easements, rights of way, zoning and similar restrictions that do not materially interfere with or
impair the use or operation thereof, 
 (l) non-exclusive licenses of patents, trademarks, copyrights, and other intellectual
property rights in the ordinary course of business, 
 (m) Liens that are replacements of Permitted Liens to the extent that the
original Indebtedness is the subject of permitted Refinancing Indebtedness and so long as the replacement Liens only encumber those assets that secured the original Indebtedness, 

(n) rights of setoff or bankers’ liens upon deposits of cash in favor of banks or other depository institutions, solely to the
extent incurred in connection with the maintenance of such deposit accounts in the ordinary course of business or to cover or secure Bank Product Obligations, 

(o) Liens granted in the ordinary course of business on the unearned portion of insurance premiums securing the financing of insurance
premiums to the extent the financing is permitted under the definition of Permitted Indebtedness, 
 (p) Liens in favor of
customs and revenue authorities arising as a matter of law to secure payment of customs duties in connection with the importation of goods, 

(q) Liens solely on any cash earnest money deposits made by Borrower or any of its Subsidiaries in connection with any letter of intent
or purchase agreement with respect to a Permitted Acquisition, 
 (r) Liens assumed by Borrower or its Subsidiaries in
connection with a Permitted Acquisition that secure Acquired Indebtedness, 

 (s) Liens described in Section 3.08(e) of the “Seller Disclosure Schedule” to
the Joint Venture Agreement delivered to Administrative Agent on the Closing Date, 
 (t) Liens in favor of Carrier on Consignor
Collateral (as defined in the Carrier Inventory Agreement), provided that such Liens shall be subject to the terms of the Carrier Inventory Agreement at all times; 

(u) Liens consisting of transfer restrictions, rights of first refusal, and other similar restrictions, in each case created expressly
pursuant to the Joint Venture Documents with respect to the Stock of Borrower; and 
 (v) other Liens arising in the ordinary
course of business of Borrower and its Subsidiaries not otherwise permitted hereunder; provided, the aggregate amount of the principal of the Indebtedness so secured shall not exceed $1,000,000 in the aggregate at any one time outstanding.

 “Permitted Preferred Stock” means and refers to any Preferred Stock issued by Borrower (and not by one or
more of its Subsidiaries) that is not Prohibited Preferred Stock. 
 “Permitted Protest” means the right of
Borrower or any of its Subsidiaries to protest any Lien (other than any Lien that secures the Obligations), taxes (other than payroll taxes or taxes that are the subject of a United States federal tax lien), or rental payment, provided that
(a) a reserve with respect to such obligation is established on Borrower’s or its Subsidiaries’ books and records in such amount as is required under GAAP, (b) any such protest is instituted promptly and prosecuted diligently by
Borrower or its Subsidiary, as applicable, in good faith, and (c) Administrative Agent is satisfied that, while any such protest is pending, there will be no impairment of the enforceability, validity, or priority of any of Administrative
Agent’s Liens. 
 “Permitted Purchase Money Indebtedness” means, as of any date of determination, Purchase
Money Indebtedness incurred after the Closing Date in an aggregate principal amount outstanding at any one time not in excess of $20,000,000. 

“Person” means natural persons, corporations, limited liability companies, limited partnerships, general partnerships,
limited liability partnerships, joint ventures, trusts, land trusts, business trusts, or other organizations, irrespective of whether they are legal entities, and governments and agencies and political subdivisions thereof. 

“Plan” means any employee pension benefit plan (other than a Multiemployer Plan) subject to the provisions of Title IV
of ERISA or Section 412 of the Code or Section 302 of ERISA, and in respect of which Borrower or any ERISA Affiliate is (or, if such plan were terminated, would under Section 4069 of ERISA be deemed to be) an “employer” as
defined in Section 3(5) of ERISA. 
 “Preferred Stock” means, as applied to the Stock of any Person, the
Stock of any class or classes (however designated) that is preferred with respect to the payment of dividends, or as to the distribution of assets upon any voluntary or involuntary liquidation or dissolution of such Person, over shares of Stock of
any other class of such Person. 
 “Primary Carrier Distribution Agreement” means the Distributor Agreement
dated as of the Closing Date between Carrier, on the one hand, and Borrower, on the other hand, substantially in the form of Exhibit D-1 to the Joint Venture Agreement, as amended and modified from time to time in accordance with
Section 6.7(b) of the Agreement. 

 “Pro Forma Historical Financial Statements” means, collectively,
(a) the “Financial Statements” as defined in Section 3.08(a) of the Joint Venture Agreement, and (b) the “Comfort Products Financial Statements” as defined in Section 4.09(a) of the Joint Venture Agreement.

 “Prohibited Preferred Stock” means any Preferred Stock that by its terms is mandatorily redeemable or
subject to any other mandatory payment obligation (including any mandatory obligation to pay dividends, other than dividends of shares of Preferred Stock of the same class and series payable in kind or dividends of shares of common stock) on or
before a date that is less than 1 year after the Maturity Date, or, on or before the date that is less than 1 year after the Maturity Date, is redeemable at the option of the holder thereof for cash or assets or securities (other than distributions
in kind of shares of Preferred Stock of the same class and series or of shares of common stock). 

“Projections” means Borrower’s forecasted (a) balance sheets, (b) profit and loss statements, and
(c) cash flow statements, all prepared on a basis consistent with the Pro Forma Historical Financial Statements, together with appropriate supporting details and a statement of underlying assumptions. 

“Pro Rata Share” means, as of any date of determination: 

(a) with respect to a Lender’s obligation to make Advances and right to receive payments of principal, interest, fees, costs, and
expenses with respect thereto, (i) prior to the Commitments being terminated or reduced to zero, the percentage obtained by dividing (y) such Lender’s Commitment, by (z) the aggregate Commitments of all Lenders, and
(ii) from and after the time that the Commitments have been terminated or reduced to zero, the percentage obtained by dividing (y) the outstanding principal amount of such Lender’s Advances by (z) the outstanding principal amount
of all Advances, 
 (b) with respect to a Lender’s obligation to participate in Letters of Credit and Reimbursement
Undertakings, to reimburse the Issuing Lender, and right to receive payments of fees with respect thereto, (i) prior to the Commitments being terminated or reduced to zero, the percentage obtained by dividing (y) such Lender’s
Commitment, by (z) the aggregate Commitments of all Lenders, and (ii) from and after the time that the Commitments have been terminated or reduced to zero, the percentage obtained by dividing (y) the outstanding principal amount of
such Lender’s Advances by (z) the outstanding principal amount of all Advances; provided, however, that if all of the Advances have been repaid in full and Letters of Credit remain outstanding, Pro Rata Share under this
clause shall be determined based upon subclause (i) of this clause as if the Commitments had not been terminated or reduced to zero and based upon the Commitments as they existed immediately prior to their termination or reduction to
zero, and 
 (c) with respect to all other matters as to a particular Lender (including the indemnification obligations arising
under Section 15.7 of the Agreement), (i) prior to the Commitments being terminated or reduced to zero, the percentage obtained by dividing (y) such Lender’s Commitment, by (z) the aggregate amount of Commitments of
all Lenders, and (ii) from and after the time that the Commitments have been terminated or reduced to zero, the percentage obtained by dividing (y) the outstanding principal amount of such Lender’s Advances, by (z) the
outstanding principal amount of all Advances; provided, however, that if all of the Advances have been repaid in full and Letters of Credit remain outstanding, Pro Rata Share under this clause shall be determined based upon
subclause (i) of this clause as if the Commitments had not been terminated or reduced to zero and based upon the Commitments as they existed immediately prior to their termination or reduction to zero. 

 “Protective Advances” has the meaning specified therefor in
Section 2.3(d)(i) of the Agreement. 
 “Purchase Money Indebtedness” means Indebtedness (other than
the Obligations, but including Capitalized Lease Obligations), incurred at the time of, or within 20 days after, the acquisition of any fixed assets for the purpose of financing all or any part of the acquisition cost thereof. 

“Real Property” means any estates or interests in real property now owned or hereafter acquired by Borrower or its
Subsidiaries and the improvements thereto. 
 “Record” means information that is inscribed on a tangible medium
or that is stored in an electronic or other medium and is retrievable in perceivable form. 
 “Refinancing
Indebtedness” means refinancings, renewals, or extensions of Indebtedness so long as: 
 (a) such refinancings,
renewals, or extensions do not result in an increase in the principal amount of the Indebtedness so refinanced, renewed, or extended, 

(b) such refinancings, renewals, or extensions do not result in a shortening of the average weighted maturity (measured as of the
refinancing, renewal, or extension) of the Indebtedness so refinanced, renewed, or extended, nor are they on terms or conditions that, taken as a whole, are or could reasonably be expected to be materially adverse to the interests of the Lenders,

 (c) if the Indebtedness that is refinanced, renewed, or extended was subordinated in right of payment to the Obligations,
then the terms and conditions of the refinancing, renewal, or extension must include subordination terms and conditions that are at least as favorable to the Lender Group as those that were applicable to the refinanced, renewed, or extended
Indebtedness, and 
 (d) the Indebtedness that is refinanced, renewed, or extended is not recourse to any Person that is liable
on account of the Obligations other than those Persons which were obligated with respect to the Indebtedness that was refinanced, renewed, or extended or any other Person that otherwise became obligated with respect to such Indebtedness as a Person
acquired pursuant to a Permitted Acquisition. 
 “Reimbursement Undertaking” has the meaning specified therefor
in Section 2.11(a) of the Agreement. 
 “Related Fund” means, with respect to any Lender that is an
investment fund, any other investment fund that invests in commercial loans and that is managed or advised by the same investment advisor as such Lender or by an Affiliate of such investment advisor. 

“Remedial Action” means all actions taken to (a) clean up, remove, remediate, contain, treat, monitor, assess,
evaluate, or in any way address Hazardous Materials in the indoor or outdoor environment, (b) prevent or minimize a release or threatened release of Hazardous Materials so they do not migrate or endanger or threaten to endanger public health or
welfare or the indoor or outdoor environment, (c) restore or reclaim natural resources or the environment, (d) perform any pre-remedial studies, investigations, or post-remedial operation and maintenance activities, or (e) conduct any
other actions with respect to Hazardous Materials required by Environmental Laws. 

 “Replacement Lender” has the meaning specified therefor in
Section 2.13(b) of the Agreement. 
 “Report” has the meaning specified therefor in
Section 15.16 of the Agreement. 
 “Required Lenders” means, at any time, a minimum of two Lenders
(or, if there is only one Lender at such time, such Lender) whose aggregate Pro Rata Shares (calculated under clause (c) of the definition of Pro Rata Share) equal or exceed 51%. 

“Reserve Percentage” means, on any day, for any Lender, the maximum percentage prescribed by the Board of Governors of
the Federal Reserve System (or any successor Governmental Authority) for determining the reserve requirements (including any basic, supplemental, marginal, or emergency reserves) that are in effect on such date with respect to eurocurrency funding
(currently referred to as “eurocurrency liabilities”) of that Lender, but so long as such Lender is not required or directed under applicable regulations to maintain such reserves, the Reserve Percentage shall be zero. 

“Restricted Distribution” means to (a) declare or pay any dividend or make any other payment or distribution on
account of Stock issued by any Loan Party (including any payment in connection with any merger or consolidation involving such Loan Party) or to the direct or indirect holders of Stock issued by any Loan Party in their capacity as such (other than
dividends or distributions payable in Stock (other than Prohibited Preferred Stock) issued by such Loan Party, or (b) purchase, redeem, or otherwise acquire or retire for value (including in connection with any merger or consolidation involving
any Loan Party) any Stock issued by any Loan Party. 
 “Revolver Usage” means, as of any date of determination,
the sum of (a) the amount of outstanding Advances, plus (b) the amount of the Letter of Credit Usage. 

“Sanctioned Entity” means (a) a country or a government of a country, (b) an agency of the government of a
country, (c) an organization directly or indirectly controlled by a country or its government, (d) a Person resident in or determined to be resident in a country, in each case, that is subject to a country sanctions program administered
and enforced by OFAC. 
 “Sanctioned Person” means a person named on the list of Specially Designated Nationals
maintained by OFAC. 
 “SEC” means the United States Securities and Exchange Commission and any successor
thereto. 
 “Securities Account” means a securities account (as that term is defined in the Code). 

“Securities Act” means the Securities Act of 1933, as amended from time to time, and any successor statute. 

“Security Agreement” means a security agreement, in form and substance reasonably satisfactory to Administrative Agent,
executed and delivered by Borrower and Guarantors to Administrative Agent. 
 “Settlement” has the meaning
specified therefor in Section 2.3(e)(i) of the Agreement. 
 “Settlement Date” has the meaning
specified therefor in Section 2.3(e)(i) of the Agreement. 

 “Solvent” means, with respect to any Person on a particular date, that, at
fair valuations, the sum of such Person’s assets is greater than all of such Person’s debts. 

“Stock” means all shares, options, warrants, interests, participations, or other equivalents (regardless of how
designated) of or in a Person, whether voting or nonvoting, including common stock, preferred stock, or any other “equity security” (as such term is defined in Rule 3a11-1 of the General Rules and Regulations promulgated by the SEC under
the Exchange Act). 
 “Subsidiary” of a Person means a corporation, partnership, limited liability company, or
other entity in which that Person directly or indirectly owns or controls the shares of Stock having ordinary voting power to elect a majority of the board of directors (or appoint other comparable managers) of such corporation, partnership, limited
liability company, or other entity. 
 “Swap Provider” means any Bank Product Provider that provides one or
more Swaps to Borrower or any of its Subsidiaries. 
 “Swaps” means all interest rate equity swaps, caps,
floors, collars, or any combination of, or option with respect to, these or similar transactions, for the purpose of hedging Borrower’s or any of its Subsidiaries’ exposure to fluctuations in interest rates. 

“Swing Lender” means Wells Fargo or, in the event that Wells Fargo declines to provide Swing Loans at a time when all of
the conditions under the Agreement to the making of Swings Loans are satisfied, any other Lender that, at the request of Borrower agrees, in such Lender’s sole discretion, to become the Swing Lender under Section 2.3(b) of the
Agreement. 
 “Swing Loan” has the meaning specified therefor in Section 2.3(b) of the Agreement.

 “Syndication Agent” has the meaning specified therefor in the preamble to the Agreement. 

“Taxes” means any taxes, levies, imposts, duties, fees, assessments or other charges of whatever nature now or hereafter
imposed by any jurisdiction or by any political subdivision or taxing authority thereof or therein with respect to such payments and all interest, penalties or similar liabilities with respect thereto; provided, however, that Taxes
shall exclude (i) any tax imposed on the net income or net profits of any Lender or any Participant (including any branch profits taxes), in each case (A) imposed by the jurisdiction (or by any political subdivision or taxing authority
thereof) in which such Lender or such Participant is organized or the jurisdiction (or by any political subdivision or taxing authority thereof) in which such Lender’s or such Participant’s principal office is located or (B) as a
result of a present or former connection between such Lender or such Participant and the jurisdiction or taxing authority imposing the tax (other than any such connection arising solely from such Lender or such Participant having executed, delivered
or performed its obligations or received payment under, or enforced its rights or remedies under the Agreement or any other Loan Document); (ii) taxes resulting from a Lender’s or a Participant’s failure to comply with the
requirements of Section 16(c) or (d) of the Agreement, and (iii) any United States federal withholding taxes that would be imposed on amounts payable to a Foreign Lender based upon the applicable withholding rate in
effect at the time such Foreign Lender becomes a party to the Agreement (or designates a new lending office), except that Taxes shall include (A) any amount that such Foreign Lender (or its assignor, if any) was previously entitled to
receive pursuant to Section 16(a) of the Agreement, if any, with respect to such withholding tax at the time of designation of a new lending office (or assignment), and (B) additional United States federal withholding taxes that may
be imposed after the time such Foreign Lender becomes a party to the Agreement (or designates a new lending office), as a result of a change in law, rule, regulation, order or other decision with respect to any of the foregoing by any Governmental
Authority. 

 “Tax Lender” has the meaning specified therefor in
Section 14.2(a) of the Agreement. 
 “Trade Name Agreement” means the Trade name Agreement dated as
of the Closing Date between Carrier and Borrower, as amended and modified from time to time in accordance with Section 6.7(b) of the Agreement. 

“Trademark Security Agreement” has the meaning specified therefor in the Security Agreement. 

“Transition Services Agreement” means the Transition Services Agreement dated as of the Closing Date between Carrier and
Borrower, as amended and modified from time to time in accordance with Section 6.7(b) of the Agreement. 

“Underlying Issuer” means Wells Fargo or one of its Affiliates. 

“Underlying Letter of Credit” means a Letter of Credit that has been issued by an Underlying Issuer. 

“United States” means the United States of America. 

“Voidable Transfer” has the meaning specified therefor in Section 17.8 of the Agreement. 

“Watsco” means Watsco, Inc., a Florida corporation. 

“Wells Fargo” means Wells Fargo Bank, National Association, a national banking association. 

“Withdrawal Liability” means liability to a Multiemployer Plan as a result of a complete or partial withdrawal from such
Multiemployer Plan, as such terms are defined in Part I of Subtitle E of Title IV of ERISA. 

 Schedule 3.1 

The obligation of each Lender (including the Issuing Lender) to make its initial extension of credit provided for in the Agreement is
subject to the fulfillment, to the reasonable satisfaction of Administrative Agent and each Lender (the making of such initial extension of credit by any Lender being conclusively deemed to be its satisfaction or waiver of the following), of each of
the following conditions precedent: 
 (a) the Closing Date shall occur on or before August 3, 2009; 

(b) Administrative Agent shall have received a letter duly executed by Borrower and each Guarantor authorizing Administrative Agent to
file appropriate financing statements in such office or offices as may be necessary or, in the reasonable opinion of Administrative Agent, desirable to perfect the security interests to be created by the Loan Documents; 

(c) Administrative Agent shall have received evidence that appropriate financing statements have been duly filed in such office or
offices as may be necessary or, in the reasonable opinion of Administrative Agent, desirable to perfect the Administrative Agent’s Liens in and to the Collateral, and Administrative Agent shall have received searches reflecting the filing of
all such financing statements; 
 (d) Administrative Agent shall have received each of the following documents, in form and
substance reasonably satisfactory to Administrative Agent, duly executed, and each such document shall be in full force and effect: 

(i) the Trademark Security Agreement, the Copyright Security Agreement, and the Patent Security Agreement, 

(ii) a disbursement letter executed and delivered by Borrower to Administrative Agent regarding the extensions of credit to be made on
the Closing Date, the form and substance of which is reasonably satisfactory to Administrative Agent, 
 (iii) the Fee Letter,

 (iv) the Guaranty, 

(v) the Carrier Inventory Agreement and the Carrier Access Agreement, 

(vi) the Intercompany Subordination Agreement, and 

(vii) the Security Agreement, together with each of the agreements, certificates and other items to be delivered pursuant thereto.

 (e) Administrative Agent shall have received a certificate from the Secretary of Borrower (i) attesting to the
resolutions of Borrower’s Board of Directors authorizing its execution, delivery, and performance of this Agreement and the other Loan Documents to which Borrower is a party, (ii) authorizing specific officers of Borrower to execute the
same, and (iii) attesting to the incumbency and signatures of such specific officers of Borrower; 

 (f) Administrative Agent shall have received copies of Borrower’s Governing Documents,
as amended, modified, or supplemented to the Closing Date, certified by the Secretary of Borrower; 
 (g) Administrative Agent
shall have received a certificate of status with respect to Borrower, dated within 10 days of the Closing Date, such certificate to be issued by the appropriate officer of the jurisdiction of organization of Borrower, which certificate shall
indicate that Borrower is in good standing in such jurisdiction; 
 (h) Administrative Agent shall have received certificates of
status with respect to Borrower, each dated within 30 days of the Closing Date, such certificates to be issued by the appropriate officer of the jurisdictions (other than the jurisdiction of organization of Borrower) in which its failure to be duly
qualified or licensed would constitute a Material Adverse Change, which certificates shall indicate that Borrower is in good standing in such jurisdictions; 

(i) Administrative Agent shall have received a certificate from the Secretary of each Guarantor (i) attesting to the resolutions of
such Guarantor’s Board of Directors authorizing its execution, delivery, and performance of the Loan Documents to which such Guarantor is a party, (ii) authorizing specific officers of such Guarantor to execute the same and
(iii) attesting to the incumbency and signatures of such specific officers of Guarantor; 
 (j) Administrative Agent shall
have received copies of each Guarantor’s Governing Documents, as amended, modified, or supplemented to the Closing Date, certified by the Secretary of such Guarantor; 

(k) Administrative Agent shall have received a certificate of status with respect to each Guarantor, dated within 10 days of the Closing
Date, such certificate to be issued by the appropriate officer of the jurisdiction of organization of such Guarantor, which certificate shall indicate that such Guarantor is in good standing in such jurisdiction; 

(l) Administrative Agent shall have received a certificate of insurance, together with the endorsements thereto, as are required by
Section 5.6, the form and substance of which shall be reasonably satisfactory to Administrative Agent; 
 (m)
Administrative Agent shall have received one or more opinions of Borrower’s and Guarantor’s counsel in form and substance satisfactory to Administrative Agent; 

(n) Administrative Agent shall have received internally prepared financial statements for Borrower (prepared on a pro forma basis to give
effect to the Joint Venture Transaction) as of the end of April 2009 or a more recent fiscal month end if available; 
 (o)
Administrative Agent shall have received an opening Borrowing Base Certificate (prepared as of May 31, 2009) in form and substance reasonably acceptable to the Arrangers and the Agents; 

(p) the representations and warranties of Borrower and its Subsidiaries contained in the Agreement or in the other Loan Documents shall
be true and correct in all respects; 
 (q) Borrowers shall have paid all Lender Group Expenses incurred in connection with the
transactions evidenced by this Agreement to the extent invoiced as of the Closing Date; 

 (r) Administrative Agent shall have received copies of each of the Joint Venture Documents,
together with a certificate of the Secretary or an Authorized Person of Borrower certifying (i) each such Joint Venture Document as being a true, correct, and complete copy thereof, and (ii) the closing of the Joint Venture Transaction in
accordance with the representations and warranties set forth in Section 4.25 of the Agreement; 
 (s) Borrower and
each of its Subsidiaries shall have received all material licenses, approvals or evidence of other actions required by any Governmental Authority in connection with the execution and delivery by Borrower or its Subsidiaries of the Loan Documents or
with the consummation of the transactions contemplated thereby; and 
 (t) all other documents and legal matters in connection
with the transactions contemplated by the Agreement shall have been delivered, executed, or recorded and shall be in form and substance reasonably satisfactory to Administrative Agent. 

 Schedule 3.5 

1. Within 75 days after the Closing Date, Borrower shall deliver to Administrative Agent and each Lender consolidated financial
statements of Borrower and its Subsidiaries for the one year period ended on December 31, 2008 (or, if longer, for the period ended on December 31, 2008 for which Watsco is obligated to file audited historical financial statements with
respect to Borrower in accordance with applicable rules and regulations of the SEC), audited by PricewaterhouseCoopers, LLP or other independent certified public accountants reasonably acceptable to Administrative Agent and certified, without any
qualifications (including any (i) “going concern” or like qualification or exception, or (ii) qualification or exception as to the scope of such audit), by such accountants to have been prepared in accordance with GAAP (such
audited financial statements to include a consolidated balance sheet and consolidated statements of income, retained earnings and cash flow). 

2. Within 60 days after the Closing Date, Borrower shall deliver to Administrative Agent a duly executed and delivered Control Agreement
with respect to each Deposit Account and Securities Account of Borrower and the other Loan Parties for which a Control Agreement is required under Section 6.11 of the Agreement. 

3. Borrower shall use its commercially reasonable efforts to deliver to Administrative Agent, within 60 days after the Closing Date, a
duly executed and delivered Collateral Access Agreement with respect to each Real Property location leased by Borrower or any other Loan Party and at which Inventory with a value of $5,000,000 (measured as of the Closing Date) or more is located.

 4. Borrower shall deliver to Administrative Agent, as promptly as is practicable, a certificate of status from the
appropriate governmental authority in Puerto Rico, evidencing that CPR is in good standing as a foreign corporation in Puerto Rico. 

 Schedule 4.1(b) 

Capitalization of Borrower 
  

					
	 Member
	  	 Membership Interest Held
	  	 Percentage Interest Held

	Watsco Holdings II, Inc.	  	147,000.00	  	42.1%
	Comfort Products Distributing LLC	  	62,500.00	  	17.9%
	Carrier Corporation	  	136,175.00	  	39%
	Carlyle Scroll Holdings Inc.	  	3,491.66667	  	1%
	Total	  	349,166.66667	  	100%

 Schedule 4.1(c) 

Capitalization of Borrower’s Subsidiaries 

Carrier InterAmerica Corporation 
  

							
	 Holder
	  	Shares Held	  	Shares Authorized	  	Shares Outstanding
	 Carrier Enterprise, LLC
	  	1000	  	1000	  	1000

 Carrier (Puerto Rico), Inc. 

  

							
	 Holder
	  	Shares Held	  	Shares Authorized	  	Shares Outstanding
	 Carrier Enterprise, LLC
	  	700	  	1000	  	700

  

 Schedule 4.6(a) 

States of Organization 
  

			
	 Party
	  	 State of Organization

	Carrier Enterprise, LLC	  	Delaware
	Carrier (Puerto Rico), Inc.	  	Delaware
	Carrier InterAmerica Corporation	  	US Virgin Islands

  

 Schedule 4.6(b) 

Chief Executive Offices 
  

			
	 Party
	  	 Address

	Carrier Enterprise, LLC	  	 2000 Parks Oaks Avenue

Orlando, FL 32808

	Carrier (Puerto Rico), Inc.	  	 3450 NW 115th Avenue

Miami, FL 33178

	Carrier InterAmerica Corporation	  	 3450 NW 115th Avenue

Miami, FL 33178

  

 Schedule 4.6(c) 

Organizational Identification Numbers 
  

					
	 Party
	  	 Tax Identification No.
	  	 State Organizational No.

	Carrier Enterprise, LLC (DE)	  	06-1519509	  	2910121
	Carrier (Puerto Rico), Inc. (DE)	  	16-1217337	  	2024117
	Carrier InterAmerica Corporation (VI)	  	59-2631832	  	N/A

 Schedule 4.7(b) 

Litigation 
 None.

 Schedule 4.12 

Environmental Matters 
 1.
As an HVACR distributor, the Loan Parties and their Subsidiaries store and sell in the ordinary course of their respective businesses refrigerants and various other chemicals that may be considered Hazardous Materials. 

2. On December 4, 2007 a U.S. Department of Transportation (“DoT”) inspector visited the Borrower’s
Oklahoma City (“OKC”) distribution facility and requested “shipping papers” covering all of the Borrower’s 2007 deliveries of Hazardous Materials (“HazMat”) made using the independent delivery
service, Speedy Delivery, Inc. (“Speedy”) as part of a DoT investigation of Speedy not specifically related to its work for the Borrower. While gathering materials to respond to the DoT’s request, the Borrower discovered that
its OKC facility did not have proper “shipping papers” covering its 2007 HazMat deliveries by Speedy as required by DoT regulations. Further review showed that since at least January 2006 neither of the Borrower’s OKC or Tulsa,
Oklahoma facilities had been in substantial compliance with DoT HazMat “shipping paper” and training regulations. On December 18, 2007, a Company representative met with the DoT investigator at the Borrower’s OKC facility and
voluntarily disclosed the 2007 incidences of improper “shipping paper” and training non-compliance in OKC. During this meeting the DoT investigator limited his inquiry to 2007 Company deliveries from its OKC facility using Speedy Delivery
resulting in a finding of twenty-one (21) instances of non-compliance with shipping paper requirements and seven (7) instances of improper employee HazMat training. As a result, the Borrower received a Notice of Claim from the DoT and a
$10,000 fine. Given the limited scope of the violations cited by the DoT, the Borrower elected not to challenge the fine, which was paid in full the last week of January 2008. 

 

 Schedule 4.13 

Intellectual Property 
 1.
Federal Trademark, Registration No. 3,405,538 for Comfort Products Distributing (and Design), Registered April 1, 2008. 
 2. Federal
Trademark, Registration No. 3,329,333 for HVAC Distributors (and Design), Registered November 6, 2007. 
 3. State of New Mexico
Trademark, Registration No. TK08110301 for Contractors Heating & Supply, Registered November 3, 2008. 
 4. Distributor Agreement,
dated July 1, 2009, by and between Carrier Corporation and Carrier Enterprise, LLC (Primary Carrier Distribution Agreement). 
 5.
Transition Services Agreement, dated July 1, 2009, by and between Carrier Corporation and Carrier Enterprise, LLC. 
 6. Trade Name
Agreement, dated July 1, 2009 by and between Carrier Corporation and Carrier Enterprise, LLC. 
 7. Distributor Agreement, dated
July 1, 2009 by and between Carrier Corporation and Carrier InterAmerica Corporation. 
 8. Distributor Agreement, dated July 1, 2009,
by and between Carrier Corporation and Carrier Enterprise, LLC, with respect to certain aftermarket products. 
 9. Distributor Agreement, dated
July 1, 2009 by and between International Comfort Products, LLC and Comfort Products, LLC. 
 10. Distributor Agreement, dated July 1,
2009 by and between Carrier Corporation and Carrier (Puerto Rico), Inc. 
  

 [***] Certain information on this page has been omitted and filed separately with the Securities and
Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
 Schedule 4.15

 Deposit Accounts and Securities Accounts 

Comfort Products Distributing LLC: 

Wells Fargo (Depository only) 
 New York, NY

  

			
	[***]	  	Sweep
	[***]	  	Depository
	[***]	  	451
	[***]	  	452
	[***]	  	453
	[***]	  	454
	[***]	  	480
	[***]	  	483
	[***]	  	484
	[***]	  	485
	[***]	  	486
	[***]	  	487
	
	Bank of America, Atlanta, Georgia
		
	[***]	  	Depository
	[***]	  	Disbursement
	[***]	  	Payroll

 CARRIER INTERAMERICA
CORPORATION 
  

					
	 Bank Name
	 	 Account Number
	 	 Type / Purpose of Account

	 Bank of America

PO Box 27025

Richmond, VA 23261
	 	[***]	 	Investment Account
		 	[***]	 	 Receipt/Deposit Account

ZBA to [***]

	
	CARRIER (PUERTO RICO), INC.
			
	 Bank Name
	 	 Account Number
	 	 Type / Purpose of Account

	 Citibank

PO Box 70301

San Juan, PR 00936-8301
	 	[***]	 	Receipt/Deposit Account

 [***] Certain information on this page has been omitted and filed separately with the
Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

					
	CARRIER ENTERPRISE, LLC
			
	 Bank Name
	 	 Account Number
	 	 Type / Purpose of Account

	 JP Morgan Chase

712 Main Street,

Floor 05

Houston, TX, 77002-3201
	 	[***]	 	 Main Account -holds net balance of

receipt and disbursement activity for

all Carrier Enterprise, LLC Chase

Accounts on a daily basis

			
		 	[***]	 	 Receipt - Wires, CC, Lockbox, and

Account activity

ZBA to [***]

		 	[***]	 	 CSTX Store Receipt Activity

ZBA to [***]

		 	[***]	 	 CSTX Store Receipt Activity

ZBA to [***]

		 	[***]	 	 CSTX Store Receipt Activity

ZBA to [***]

		 	[***]	 	 CMA Store Receipt Activity

ZBA to [***]

		 	[***]	 	 CAR LBX Receipt Activity

ZBA to [***]

		 	[***]	 	 CFL LBX Receipt Activity

ZBA to [***]

		 	[***]	 	 CMA LBX Receipt Activity

ZBA to [***]

		 	[***]	 	 CNTX LBX Receipt Activity

ZBA to [***]

		 	[***]	 	 CSTX LBX Receipt Activity

ZBA to [***]

			
		 	[***]	 	 Disbursements (Wire)

ZBA to [***]

		 	[***]	 	 Disbursements (Check - AP)

ZBA to [***]

		 	[***]	 	 Disbursements (Payroll/Travel)

ZBA to [***]

			
	 Bank Name
	 	 Account Number
	 	 Type / Purpose of Account

	 Bank of America

PO Box 27025

Richmond, VA 23261
	 	[***]	 	 Main Account -holds net balance of

receipt activity for all Carrier

Enterprise, LLC Bank of America

Accounts on a daily basis

			
		 	[***]	 	 Charlotte, NC Concentration Account

ZBA to [***]

		 	[***]	 	 Depository Services for Store 1826

ZBA to [***]

		 	[***]	 	 Depository Services for Store 1825

ZBA to [***]

 [***] Certain information on this page has been omitted and filed separately with the Securities and
Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

					
		 	[***]	 	 Depository Services for Store 1830

ZBA to [***]

		 	[***]	 	 Depository Services for Store 1840

ZBA to [***]

		 	[***]	 	 Depository Services for Store 1870

ZBA to [***]

		 	[***]	 	 Depository Services for Store 1854

ZBA to [***]

		 	[***]	 	 Depository Services for Store 1827

ZBA to [***]

		 	[***]	 	 Depository Services for Store 1851

ZBA to [***]

		 	[***]	 	 Depository Services for Store 1820

ZBA to [***]

		 	[***]	 	 Depository Services for Store 1824

ZBA to [***]

		 	[***]	 	 Depository Services for Store 1855

ZBA to [***]

		 	[***]	 	 Depository Services for Store 1852

ZBA to [***]

		 	[***]	 	 Depository Services for Store 1850

ZBA to [***]

		 	[***]	 	 Depository Services for Store 1811

ZBA to [***]

		 	[***]	 	ZBA to [***]
		 	[***]	 	 Depository Services for Store 3101

ZBA to [***]

		 	[***]	 	 Depository Services for Store 1811

ZBA to [***]

		 	[***]	 	 Depository Services for Store 1810

ZBA to [***]

		 	[***]	 	 Depository Services for Store 3103

ZBA to [***]

		 	[***]	 	 Depository Services for Store 3110

ZBA to [***]

		 	[***]	 	 Depository Services for Store 3102

ZBA to [***]

			
		 	[***]	 	 Florida Concentration Account

ZBA to [***]

		 	[***]	 	 Depository Services for Store 2514

ZBA to [***]

		 	[***]	 	 Depository Services for Store 2504

ZBA to [***]

		 	[***]	 	 Depository Services for Store 2501

ZBA to [***]

		 	[***]	 	 Depository Services for Store 2502

ZBA to [***]

		 	[***]	 	 Depository Services for Store 2503

ZBA to [***]

		 	[***]	 	 Depository Services for Store 2506

ZBA to [***]

 [***] Certain information on this page has been omitted and filed separately with the Securities and
Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

					
		 	[***]	 	 Depository Services for Store 2510

ZBA to [***]

		 	[***]	 	 Depository Services for Store 2512

ZBA to [***]

		 	[***]	 	 Depository Services for Store 2520

ZBA to [***]

		 	[***]	 	 Depository Services for Store 2522

ZBA to [***]

		 	[***]	 	 Depository Services for Store 2523

ZBA to [***]

		 	[***]	 	 Depository Services for Store 2524

ZBA to [***]

		 	[***]	 	 Depository Services for Store 2540

ZBA to [***]

		 	[***]	 	 Depository Services for Store 2542

ZBA to [***]

		 	[***]	 	 Depository Services for Store 2544

ZBA to [***]

		 	[***]	 	 Depository Services for Store 2546

ZBA to [***]

		 	[***]	 	 Depository Services for Store 2541

ZBA to [***]

			
		 	[***]	 	 Oklahoma Concentration Account

ZBA to [***]

		 	[***]	 	 Depository Services for Store 3801

ZBA to [***]

		 	[***]	 	 Depository Services for Store 3802

ZBA to [***]

		 	[***]	 	 Depository Services for Store 3752

ZBA to [***]

		 	[***]	 	 Depository Services for Store 3760

ZBA to [***]

		 	[***]	 	 Depository Services for Store 3770

ZBA to [***]

		 	[***]	 	 Depository Services for Store 3771

ZBA to [***]

		 	[***]	 	 Depository Services for Store 3772

ZBA to [***]

		 	[***]	 	 Depository Services for Store 3771

ZBA to [***]

		 	[***]	 	 Depository Services for Store 3774

ZBA to [***]

		 	[***]	 	 Depository Services for Store 3753

ZBA to [***]

		 	[***]	 	 Depository Services for Store 3775

ZBA to [***]

		 	[***]	 	 Depository Services for Store 3753

ZBA to [***]

		 	[***]	 	 Depository Services for Store 3791

ZBA to [***]

 [***] Certain information on this page has been omitted and filed separately with the Securities and
Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

					
		 	[***]	 	 Depository Services for Store 3782

ZBA to [***]

		 	[***]	 	 Depository Services for Store 3794

ZBA to [***]

		 	 [***]
	 	 Depository Services for Store 3802

ZBA to [***]

		 	 [***]
	 	 Depository Services for Store 3757

ZBA to [***]

		 	 [***]
	 	 Depository Services for Store 3801

ZBA to [***]

		 	 [***]
	 	 Depository Services for Store 3795

ZBA to [***]

		 	 [***]
	 	 Depository Services for Store 3780

ZBA to [***]

		 	 [***]
	 	 Depository Services for Store 3758

ZBA to [***]

		 	 [***]
	 	 Depository Services for Store 377

ZBA to [***]

		 	 [***]
	 	 Depository Services for Store 3761

ZBA to [***]

		 	 [***]
	 	 Depository Services for Store 3116

ZBA to [***]

		 	 [***]
	 	 Depository Services for Store 3203

ZBA to [***]

		 	 [***]
	 	 Depository Services for Store 3796

ZBA to [***]

		 	 [***]
	 	 Depository Services for Store 3112

ZBA to [***]

		 	 [***]
	 	 Depository Services for Store 3113

ZBA to [***]

		 	 [***]
	 	 Depository Services for Store 3114

ZBA to [***]

		 	 [***]
	 	 Depository Services for Store 3201

ZBA to [***]

		 	 [***]
	 	 Depository Services for Store 3204

ZBA to [***]

		 	 [***]
	 	 Depository Services for Store 3785

ZBA to [***]

		 	 [***]
	 	 Depository Services for Store 3751

ZBA to [***]

			
		 	 [***]
	 	 Mid-Atlantic Concentration Account

ZBA to [***]

		 	 [***]
	 	 Depository Services for Store 1601

ZBA to [***]

		 	 [***]
	 	 Depository Services for Store 1610

ZBA to [***]

		 	 [***]
	 	 Depository Services for Store 1602

ZBA to [***]

		 	 [***]
	 	 Depository Services for Store 1620

ZBA to [***]

 [***] Certain information on this page has been omitted and filed separately with the Securities and
Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

					
		 	[***]	 	 Depository Services for Store 1611

ZBA to [***]

		 	[***]	 	 Depository Services for Store 1302

ZBA to [***]

		 	[***]	 	 Depository Services for Store 1305

ZBA to [***]

		 	[***]	 	 Depository Services for Store 1612

ZBA to [***]

		 	[***]	 	 Depository Services for Store 1309

ZBA to [***]

		 	[***]	 	 Depository Services for Store 1304

ZBA to [***]

		 	[***]	 	 Depository Services for Store 1603

ZBA to [***]

		 	[***]	 	 Depository Services for Store 1308

ZBA to [***]

		 	[***]	 	 Depository Services for Store 1306

ZBA to [***]

			
		 	[***]	 	 Columbia, SC Concentration Account

ZBA to [***]

		 	[***]	 	 Depository Services for Store 1902

ZBA to [***]

		 	[***]	 	 Depository Services for Store 1910

ZBA to [***]

		 	[***]	 	 Depository Services for Store 1912

ZBA to [***]

		 	[***]	 	 Depository Services for Store 1921

ZBA to [***]

		 	[***]	 	 Depository Services for Store 1920

ZBA to [***]

		 	[***]	 	 Depository Services for Store 1911

ZBA to [***]

		 	[***]	 	 Depository Services for Store 1901

ZBA to [***]

			
	 Bank Name
	 	 Account Number
	 	 Type / Purpose of Account

	 Hancock

PO Box 4019

Gulfport, MS 39502
	 	[***]	 	Receipt/Deposit Account
			
	 Bank Name
	 	 Account Number
	 	 Type / Purpose of Account

	 Trustmark

248 East Capital Street

Jackson, MS 39201
	 	[***]	 	Receipt/Deposit Account

  

 Schedule 4.17 

Material Contracts 
 1.
Consignment Agreement dated July 1, 2009, by and between Carrier Corporation and Carrier Enterprise, LLC. 
 2. Distributor Agreement,
dated July 1, 2009, by and between Carrier Corporation and Carrier Enterprise, LLC (Primary Carrier Distribution Agreement). 
 3.
Transition Services Agreement, dated July 1, 2009, by and between Carrier Corporation and Carrier Enterprise, LLC. 
 4. Trade Name
Agreement, dated July 1, 2009 by and between Carrier Corporation and Carrier Enterprise, LLC. 
 5. Distribution Agreement, dated
July 1, 2009 by and between Carrier Corporation and Carrier InterAmerica Corporation. 
 6. Collateral Access Agreement, dated July 1,
2009, by and among Carrier Corporation, Carrier Enterprise, LLC, and Carrier (Puerto Rico), Inc. 
 7. Distributor Agreement, dated July 1,
2009 by and between International Comfort Products, LLC and Comfort Products, LLC. 
 8. Distributor Agreement, dated July 1, 2009 by and
between Carrier Corporation and Carrier (Puerto Rico), Inc. 
 9. Distributor Agreement, dated July 1, 2009, by and between Carrier
Corporation and Carrier Enterprise, LLC, with respect to certain aftermarket products. 

 Schedule 4.19 

Permitted Indebtedness 

1. Carrier Corporation has a lien over $80 million in Consigned Inventory pursuant to that certain Consignment Agreement dated July 1, 2009 by and
between Carrier Corporation and Carrier Enterprise, LLC. 
 2. The following judgments with respect to Borrower remain outstanding: 

 

											
	 Debtor
	  	 Filing Location
	  	 Secured
Party/Plaintiff
	  	File Number	  	File Date	  	Collateral/Case
Description
	 Carrier Sales and Distribution, LLC
	  	 Dallas County,

TX District
 Court

	  	County of Dallas	  	TX-05-31433	  	08/02/06	  	Judgment for
Court costs -
$193.00

	 Carrier Sales and Distribution, LLC
	  	 Miami-Dade

County, FL

Circuit Court
	  	SMPC	  	04-8168 SP
25(3)	  	10/05/04	  	$82.48

 Schedule 5.1 

Deliver to Administrative Agent each of the financial statements, reports, or other items set forth below at the following times in form
satisfactory to Administrative Agent: 
  

			
	 as soon as available, but in any event within 45
days after the end of each of the first three fiscal quarters during each of Borrower’s fiscal years
  
	  	 (a) an unaudited consolidated balance sheet and
consolidated (and, if requested by Administrative Agent) consolidating statements of income, retained earnings and cash flow covering Borrower’s and its Subsidiaries’ operations during such period,

 
 (b) a calculation of the Interest Coverage Ratio and the Leverage Ratio for the
fiscal period then ending, and
  
 (c) a Compliance Certificate.

 

	 	 
	 as soon as available, but in any event within 90 days after the end of each of
Borrower’s fiscal years
  
	  	 (d) consolidated financial statements of Borrower and its Subsidiaries for
each such fiscal year, audited by nationally recognized independent certified public accountants and certified, without any qualifications (including any (i) “going concern” or like qualification or exception, or (ii) qualification or
exception as to the scope of such audit), by such accountants to have been prepared in accordance with GAAP (such audited financial statements to include a consolidated balance sheet and consolidated statements of income, retained earnings and cash
flow and, if prepared, such accountants’ letter to management),
  
 (e) a
calculation of the Interest Coverage Ratio and the Leverage Ratio for the fiscal period then ending, and
  

(f) a Compliance Certificate.
  

	 	 
	 within 60 days after the beginning of each fiscal year,

 
	  	 (g) copies of Borrower’s Projections, in form and substance (including
as to scope and underlying assumptions) reasonably satisfactory to Administrative Agent, in its Permitted Discretion, for the forthcoming fiscal year, certified by the treasurer and chief financial officer of Borrower as being such officer’s
good faith estimate of the financial performance of Borrower and its Subsidiaries during the period covered thereby.
  

	 	 
	 if and when filed by Borrower or any other Loan Party,

 
	  	 (h) Form 10-Q quarterly reports, Form 10-K annual reports, and Form 8-K
current reports,
  
 (i) any other filings made by Borrower or any other Loan
Party with the SEC, and
  
 (j) any other information that is provided by
Borrower to its shareholders or owners generally.
  

	 	 
	 promptly, but in any event within 5 Business
Days after Borrower has knowledge of any event or condition that constitutes a Default or an Event of Default,
  
	  	 (k) notice of such event or condition and a
statement of the curative action that Borrower proposes to take with respect thereto.
  

			
	 promptly after the commencement thereof, but in
any event within 5 Business Days after the service of process with respect thereto on any Loan Party,
  
	  	 (l) notice of all actions, suits, or proceedings
brought by or against any Loan Party before any Governmental Authority which reasonably could be expected to result in a Material Adverse Change.
  

	 	 
	 promptly following the request of
Administrative Agent
  
	  	 (m) any other information reasonably
requested relating to the financial condition of Borrower or its Subsidiaries.
  

 Schedule 5.2 

Provide Administrative Agent (and if so requested by Administrative Agent, with copies for each Lender) with each of the documents set
forth below at the following times in form satisfactory to Administrative Agent: 
  

			
	 Monthly (no later than the 15th day of each month)

  
	  	 (a) a Borrowing Base Certificate.

 

	 	 
	 Quarterly (no later than 15 days after the end of each fiscal
quarter)
  
	  	 (b) a detailed aging, by total, of Borrower’s Accounts, together with a
reconciliation and supporting documentation for any reconciling items noted,
  

(c) a detailed calculation of those Accounts that are not eligible for the Borrowing Base,

 
 (d) a detailed Inventory system/perpetual report together with a reconciliation to
Borrower’s general ledger accounts.
  

	 	 
	 Upon request by Administrative Agent

  
	  	 (e) a detailed list of Borrower’s and
its Subsidiaries’ customers, with address and contact information, and
  

(f) such reports as to the Collateral or the financial condition of Borrower and its Subsidiaries as Administrative Agent may reasonably
request.
  

 Schedule 11 

Notice Address for Lenders 

J.P. Morgan Securities Inc. 

329 N. Park Ave., Suite 329

Winter Park, FL 32789 

Attn: Charlie Dudley 
  

 
 Wells Fargo
Bank, N.A. 
 401 E. Jackson Street, Suite 1450 

Tampa, Florida 33602 

Attn: Edward Wooten 

with a copy to: 

Greenberg Traurig LLP 

3290 Northside Parkway, Suite 400 

Atlanta, Georgia 30327 

Attn: Michael Leveille, Esq. 
  

 
 The Northern
Trust Company 
 50 South LaSalle, M-27 

Chicago, IL 60603 

Attn: Rick J. Gomez

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