Document:

Note Purchase Agreement

 Exhibit 10.1 
 [EXECUTION VERSION] 
  

 
  

McGRATH RENTCORP 
  

 
 NOTE PURCHASE
AND PRIVATE SHELF AGREEMENT 
  
  

4.03% Series A Senior Notes Due April 21, 2018 
 ($100,000,000 Aggregate Original Principal Amount) 
 $100,000,000

 Private Shelf Facility 
 April 21, 2011 
  

 
  

 TABLE OF CONTENTS 

 

													
	 	  	 	  	 	  	 	  	 	  	Page	 
	 1
	  	Authorization of Notes	  	 	1	  
				
		  	1A	  	Authorization of Series A Notes	  	 	1	  
				
		  	1B	  	Authorization of Issue of Shelf Notes	  	 	1	  
			
	 2
	  	Sale And Purchase of Notes	  	 	2	  
				
		  	2A	  	Sale and Purchase of Series A Notes	  	 	2	  
				
		  	2B	  	Sale and Purchase of Shelf Notes	  	 	2	  
					
		  		  	2B(1)	  	Facility	  	 	2	  
					
		  		  	2B(2)	  	Issuance Period	  	 	3	  
					
		  		  	2B(3)	  	Request For Purchase	  	 	3	  
					
		  		  	2B(4)	  	Rate Quotes	  	 	3	  
					
		  		  	2B(5)	  	Acceptance	  	 	3	  
					
		  		  	2B(6)	  	Market Disruption	  	 	4	  
					
		  		  	2B(7)	  	Facility Closings	  	 	4	  
					
		  		  	2B(8)	  	Fees	  	 	5	  
						
		  		  		  	2B(8)(i)	  	Draw Fees	  	 	5	  
						
		  		  		  	2B(8)(ii)	  	Delayed Delivery Fee	  	 	5	  
						
		  		  		  	2B(8)(iii)	  	Cancellation Fee	  	 	5	  
						
		  		  		  	2B(8)(iv)	  	Invalidation of Delayed Delivery Fee and Cancellation Fee	  	 	6	  
			
	 3
	  	Series A Closing	  	 	6	  
			
	 4
	  	Conditions to Closing	  	 	7	  
				
		  	4A	  	Conditions to Series A Closing	  	 	7	  
					
		  		  	4A(1)	  	UCC Searches	  	 	7	  
					
		  		  	4A(2)	  	Consents	  	 	7	  
					
		  		  	4A(3)	  	Payment of Special Counsel Fees	  	 	7	  
				
		  	4B	  	Conditions to Each Closing	  	 	7	  
					
		  		  	4B(1)	  	Representations and Warranties	  	 	7	  
					
		  		  	4B(2)	  	Purchase Permitted By Applicable Law, etc.	  	 	7	  
					
		  		  	4B(3)	  	Payment of Fees	  	 	8	  
					
		  		  	4B(4)	  	Certain Documents	  	 	8	  
					
		  		  	4B(5)	  	Private Placement Number	  	 	9	  
			
	 5
	  	Representation and Warranties of the Company	  	 	9	  

  
 i 

 TABLE OF CONTENTS 

(continued) 
  

													
	 	  	 	  	 	  	 	  	 	  	Page	 
		  		  	5.1	  	Organization; Power and Authority	  	 	9	  
					
		  		  	5.2	  	Authorization, Etc.	  	 	9	  
					
		  		  	5.3	  	Disclosure	  	 	9	  
					
		  		  	5.4	  	Organization; Power and Authority	  	 	10	  
					
		  		  	5.5	  	Financial Statements	  	 	10	  
					
		  		  	5.6	  	Compliance with Laws; Other Instruments, Etc.	  	 	11	  
					
		  		  	5.7	  	Governmental Authorizations, Etc.	  	 	11	  
					
		  		  	5.8	  	Litigation; Observance of Agreements, Statutes and Orders	  	 	11	  
					
		  		  	5.9	  	Taxes	  	 	12	  
					
		  		  	5.10	  	Title to Property; Leases	  	 	12	  
					
		  		  	5.11	  	Licenses, Permits, Etc.	  	 	12	  
					
		  		  	5.12	  	Compliance with ERISA	  	 	13	  
					
		  		  	5.13	  	Private Offering by the Company	  	 	14	  
					
		  		  	5.14	  	Use of Proceeds; Margin Regulations	  	 	14	  
					
		  		  	5.15	  	Existing Indebtedness; Liens	  	 	14	  
					
		  		  	5.16	  	Foreign Assets Control Regulations, etc.	  	 	15	  
					
		  		  	5.17	  	Status under Certain Statutes	  	 	16	  
					
		  		  	5.18	  	Environmental Matters	  	 	16	  
					
		  		  	5.19	  	Absence of Financing Statements	  	 	16	  
					
		  		  	5.20	  	Solvency	  	 	16	  
					
		  		  	5.21	  	Hostile Tender Offers	  	 	17	  
			
	 6
	  	Representations of the Purchasers	  	 	17	  
					
		  		  	6.1	  	Purchase for Investment	  	 	17	  
					
		  		  	6.2	  	Source of Funds	  	 	17	  
			
	 7
	  	Information as to the Company	  	 	18	  
					
		  		  	7.1	  	Financial and Business Information	  	 	19	  
					
		  		  	7.2	  	Officer’s Certificate	  	 	21	  
					
		  		  	7.3	  	Notices; Reports	  	 	21	  
					
		  		  	7.4	  	Visitation	  	 	21	  
					
		  		  	7.5	  	Limitation on Disclosure Obligations	  	 	22	  
			
	 8
	  	Prepayment of the Notes	  	 	23	  
					
		  		  	8.1	  	Required Prepayments	  	 	23	  

  
 ii 

 TABLE OF CONTENTS 

(continued) 
  

													
	 	  	 	  	 	  	 	  	 	  	Page	 
		  		  	8.2	  	Optional Prepayments with Make-Whole Amount	  	 	23	  
					
		  		  	8.3	  	Allocation of Partial Prepayments	  	 	23	  
					
		  		  	8.4	  	Maturity; Surrender, Etc.	  	 	24	  
					
		  		  	8.5	  	Purchase of Notes	  	 	24	  
					
		  		  	8.6	  	Make-Whole Amount	  	 	24	  
			
	 9
	  	Affirmative Covenants	  	 	25	  
					
		  		  	9.1	  	Compliance with Law	  	 	26	  
					
		  		  	9.2	  	Insurance	  	 	26	  
					
		  		  	9.3	  	Maintenance of Properties	  	 	26	  
					
		  		  	9.4	  	Payment of Taxes and Claims	  	 	26	  
					
		  		  	9.5	  	Maintenance of Existence, Etc.	  	 	26	  
					
		  		  	9.6	  	Books and Records	  	 	27	  
					
		  		  	9.7	  	Information Required by Rule 144A	  	 	27	  
					
		  		  	9.8	  	Subsequent Guarantors; Release of Guarantors	  	 	27	  
			
	 10
	  	Negative Covenants	  	 	27	  
					
		  		  	10.1	  	Financial Covenants	  	 	28	  
					
		  		  	10.2	  	Merger and Consolidation; Transfer of Substantially All Assets	  	 	28	  
					
		  		  	10.3	  	Transfer of Assets	  	 	29	  
					
		  		  	10.4	  	Nature of Business	  	 	29	  
					
		  		  	10.5	  	Liens	  	 	29	  
					
		  		  	10.6	  	Priority Debt	  	 	31	  
					
		  		  	10.7	  	Related Party Transactions	  	 	31	  
					
		  		  	10.8	  	Terrorism Sanctions Regulations	  	 	31	  
			
	 11
	  	Events Of Default	  	 	31	  
			
	 12
	  	Remedies On Default, Etc.	  	 	33	  
					
		  		  	12.1	  	Acceleration	  	 	33	  
					
		  		  	12.2	  	Other Remedies	  	 	34	  
					
		  		  	12.3	  	Rescission	  	 	34	  
					
		  		  	12.4	  	No Waivers or Election of Remedies, Expenses, etc.	  	 	35	  
			
	 13
	  	Registration; Exchange; Substitution Of Notes	  	 	35	  
					
		  		  	13.1	  	Registration of Notes	  	 	35	  
					
		  		  	13.2	  	Transfer and Exchange of Notes; No Transfers to Competitors	  	 	35	  

  
 iii

 TABLE OF CONTENTS 

(continued) 
  

													
	 	  	 	  	 	  	 	  	 	  	Page	 
		  		  	13.3	  	Replacement of Notes	  	 	36	  
			
	 14
	  	Payments On Notes	  	 	36	  
					
		  		  	14.1	  	Place of Payment	  	 	36	  
					
		  		  	14.2	  	Home Office Payment	  	 	37	  
			
	 15
	  	Expenses, Etc.	  	 	38	  
					
		  		  	15.1	  	Transaction Expenses	  	 	38	  
					
		  		  	15.2	  	Survival	  	 	38	  
			
	 16
	  	Survival Of Representations And Warranties; Entire Agreement	  	 	38	  
			
	 17
	  	Amendment And Waiver	  	 	39	  
					
		  		  	17.1	  	Requirements	  	 	39	  
					
		  		  	17.2	  	Solicitation of Holders of Notes	  	 	39	  
					
		  		  	17.3	  	Binding Effect. etc.	  	 	40	  
					
		  		  	17.4	  	Notes Held by Company, etc.	  	 	40	  
			
	 18
	  	Notices	  	 	40	  
			
	 19
	  	Reproduction Of Documents	  	 	41	  
			
	 20
	  	Multiparty Guaranty	  	 	41	  
					
		  		  	20.1	  	Unconditional Guaranty	  	 	41	  
					
		  		  	20.2	  	Subrogation	  	 	44	  
					
		  		  	20.3	  	Amendments, Etc. with Respect to Guaranteed Obligations	  	 	44	  
					
		  		  	20.4	  	Guaranty Absolute and Unconditional; Termination	  	 	44	  
					
		  		  	20.5	  	Reinstatement	  	 	45	  
					
		  		  	20.6	  	Payments	  	 	46	  
					
		  		  	20.7	  	Bound by Other Provisions	  	 	46	  
					
		  		  	20.8	  	Additional Guarantors	  	 	46	  
			
	 21
	  	Confidential Information	  	 	46	  
			
	 22
	  	Miscellaneous	  	 	47	  
					
		  		  	22.1	  	Successors and Assigns	  	 	47	  
					
		  		  	22.2	  	Payments Due on Non-Business Days	  	 	47	  
					
		  		  	22.3	  	Accounting Terms	  	 	48	  
					
		  		  	22.4	  	Severability	  	 	48	  
					
		  		  	22.5	  	Construction	  	 	49	  
					
		  		  	22.6	  	Counterparts	  	 	49	  

  
 iv 

 TABLE OF CONTENTS 

(continued) 
  

													
	 	  	 	  	 	  	 	  	 	  	Page	 
		  		  	22.7	  	Governing Law	  	 	49	  
					
		  		  	22.8	  	Jurisdiction and Process	  	 	49	  
					
		  		  	22.9	  	Waiver of Jury Trial	  	 	50	  
					
		  		  	22.10	  	Transaction References	  	 	50	  

  
 v 

 Information Schedule 
  

					
	Schedule A	  	—	  	Purchaser Schedule Related to Series A Notes
	Schedule B	  	—	  	Defined Terms
	Schedule 5.4	  	—	  	Subsidiaries; Affiliates; Directors and Officers; Restrictions on Subsidiaries
	Schedule 5.15	  	—	  	Existing Indebtedness
	Schedule 10.5	  	—	  	Existing Liens
			
	Exhibit A-1	  	—	  	Form of 4.03% Series A Senior Note due April 21, 2018
	Exhibit A-2	  	—	  	Form of Shelf Note
	Exhibit B	  	—	  	Form of Request for Purchase
	Exhibit C	  	—	  	Form of Confirmation of Acceptance
	Exhibit D-1	  	—	  	Form of Series A Note Opinion of Special Counsel for the Credit Parties
	Exhibit D-2	  	—	  	Form of Shelf Note Opinion of Special Counsel for the Credit Parties
	Exhibit E	  	—	  	Form of Joinder to Multiparty Guaranty

  
 i 

 McGrath RentCorp 

5700 Las Positas Road 
 Livermore, California 94551 
 April 21, 2011 

Prudential Investment Management, Inc. 
 Each
Prudential Affiliate (as hereinafter defined) which is 
   a signatory of this Agreement or becomes bound by certain 

  provisions of this Agreement as hereinafter provided) 
 c/o Prudential Capital Group 
 Four Embarcadero Center, Suite 2700 

San Francisco, California 94111 
 Ladies and
Gentlemen: 
 Each of the undersigned, McGrath RentCorp, a California corporation (the “Company”), and certain direct and
indirect Subsidiaries of the Company from time to time party to this Agreement as Subsidiary Guarantors agrees with each of PIM, each of the Series A Purchasers and any Prudential Affiliate which may hereafter purchase any Shelf Notes as follows:

  

	1	AUTHORIZATION OF NOTES 

1A AUTHORIZATION OF SERIES A NOTES. 

The Company has authorized the issue and sale of $100,000,000 aggregate principal amount of its 4.03% Series A Senior Notes due April 21, 2018 (as
amended, restated, supplemented or otherwise modified from time to time, the “Series A Notes”, such term to include any such notes issued in substitution therefor pursuant to Section 13). The Series A Notes shall be
substantially in the form set out in Exhibit A-1. Certain capitalized and other terms used in this Agreement are defined in Schedule B; and references to a “Schedule” or an “Exhibit” are, unless otherwise specified,
to a Schedule or an Exhibit attached to this Agreement. 
 1B AUTHORIZATION OF
ISSUE OF SHELF NOTES. 
 The Company will authorize the issue and sale of its
additional senior notes (as amended, restated, supplemented or otherwise modified from time to time, the “Shelf Notes”) in the aggregate principal amount of up to $100,000,000, to be dated the date of issue thereof, to mature, in
the case of each Shelf Note so issued, no more than 12 years after the date of original issuance thereof, to have an average life, in the case of each Shelf Note so issued, of no more than 10 years after the date of original issuance thereof, to
bear interest on the unpaid balance thereof from the date thereof at the rate per annum, and to have such other particular terms, as shall be set forth, in the case of each Shelf Note so issued, in the Confirmation of Acceptance with respect to such
Shelf Note delivered pursuant to Section 2B(5), and to be substantially in the form of Exhibit A-2. The terms “Shelf Note” and “Shelf Notes” as used herein shall include each Shelf Note delivered
pursuant to any provision of this Agreement and each Shelf Note 

 
delivered in substitution or exchange for any such Shelf Note pursuant to any such provision. The terms “Note” and “Notes” as used herein shall include each
Series A Note and each Shelf Note delivered pursuant to any provision of this Agreement and each Note delivered in substitution or exchange for any such Note pursuant to any such provision. Notes that have (i) the same final maturity,
(ii) the same principal prepayment dates, (iii) the same principal prepayment amounts (as a percentage of the original principal amount of each Note), (iv) the same interest rate, (v) the same interest payment periods, and
(vi) the same date of issuance (which, in the case of a Note issued in exchange for another Note, shall be deemed for these purposes the date on which such Note’s ultimate predecessor Note was issued), are herein called a
“Series” of Notes. 
  

	2	SALE AND PURCHASE OF NOTES 

2A SALE AND PURCHASE OF SERIES A NOTES.

 Subject to the terms and conditions of this Agreement, the Company agrees to issue and sell to each Series A Purchaser and each Series A
Purchaser agrees to purchase from the Company, on the Series A Closing Day provided for in Section 3, Series A Notes in the principal amount specified opposite such Series A Purchaser’s name in the Purchaser Schedule Relating to Series A
Notes set forth as Schedule A at the purchase price of 100% of the principal amount thereof. 
 2B SALE
AND PURCHASE OF SHELF NOTES. 
 2B(1)
Facility. Subject to Section 2B(2), PIM is willing to consider, in its sole discretion and within limits that may be authorized for purchase by PIM and Prudential Affiliates from time to time, the purchase of Shelf Notes pursuant to this
Agreement. The willingness of PIM to consider such purchase of Shelf Notes is herein called the “Facility.” At any time, (i) the aggregate principal amount of Shelf Notes stated in Section 1B, minus (ii) the
aggregate principal amount of Shelf Notes purchased and sold pursuant to this Agreement prior to such time, minus (iii) the aggregate principal amount of Accepted Notes (as hereinafter defined) which have not yet been purchased and sold
hereunder prior to such time, is herein called the “Available Facility Amount” at such time. NOTWITHSTANDING THE WILLINGNESS OF PIM TO CONSIDER PURCHASES OF SHELF NOTES, THIS AGREEMENT IS ENTERED INTO ON THE EXPRESS UNDERSTANDING
THAT NEITHER PIM NOR ANY PRUDENTIAL AFFILIATE SHALL BE OBLIGATED TO MAKE OR ACCEPT OFFERS TO PURCHASE SHELF NOTES, OR TO QUOTE RATES, SPREADS OR OTHER TERMS WITH RESPECT TO SPECIFIC PURCHASES OF SHELF NOTES, AND THE FACILITY SHALL IN NO WAY BE
CONSTRUED AS A COMMITMENT BY PIM OR ANY PRUDENTIAL AFFILIATE. FOR THE AVOIDANCE OF DOUBT, THIS AGREEMENT IS ENTERED INTO ON THE EXPRESS UNDERSTANDING THAT IT MAY BE TERMINATED BY THE COMPANY BY NOTICE IN WRITING TO PIM GIVEN AT ANY TIME WHEN NO
NOTES ARE OUTSTANDING AND NO OTHER AMOUNTS (INCLUDING, WITHOUT LIMITATION, ANY DELAYED DELIVERY FEE OR CANCELLATION FEE) ARE OWING TO PIM OR ANY PRUDENTIAL AFFILIATE UNDER THIS AGREEMENT AND NO ACCEPTANCE WHICH HAS NOT BEEN CANCELLED IS IN EFFECT.

  
 2 

 2B(2) Issuance Period. Shelf Notes may be issued and sold pursuant to this
Agreement until the earlier of (i) the third anniversary of the date of this Agreement (or if such anniversary is not a New York Business Day, the New York Business Day next preceding such anniversary), and (ii) the thirtieth day after PIM
shall have given to the Company, or the Company shall have given to PIM, written notice stating that it elects to terminate the issuance and sale of Shelf Notes pursuant to this Agreement (or if such thirtieth day is not a New York Business Day, the
New York Business Day next preceding such thirtieth day). The period during which Shelf Notes may be issued and sold pursuant to this Agreement is herein called the “Issuance Period.” 

2B(3) Request For Purchase. The Company may from time to time during the Issuance Period make requests for purchases of
Shelf Notes (each such request being herein called a “Request for Purchase”). Each Request for Purchase shall be made to PIM by telefacsimile or overnight delivery service, and shall (i) specify the aggregate principal amount
of Shelf Notes covered thereby, which shall not be less than $5,000,000 and not be greater than the Available Facility Amount at the time such Request for Purchase is made, (ii) specify the principal amounts, final maturities (which shall be no
more than 12 years from the date of original issuance), and principal prepayment dates and amounts (which shall result in an average life of no more than 10 years from the date of original issuance) of the Shelf Notes covered thereby,
(iii) specify the interest payment periods (which shall be quarterly or semi-annually), (iv) specify the use of proceeds of such Shelf Notes), (v) specify the proposed day for the closing of the purchase and sale of such Shelf Notes,
which shall be a Business Day during the Issuance Period not less than 10 Business Days and not more than 42 days after the making of such Request for Purchase, (vi) specify the number of the account and the name and address of the depository
institution to which the purchase prices of such Shelf Notes are to be transferred on the Closing Day for such purchase and sale, (vii) certify that the representations and warranties contained in Section 5 are true on and as of the date
of such Request for Purchase and that there exists on the date of such Request for Purchase no Non-Compliance Event, Potential Non-Compliance Event, Event of Default or Default, and (viii) be substantially in the form of Exhibit B
attached hereto. Each Request for Purchase shall be in writing and shall be deemed made when received by PIM. 
 2B(4) Rate
Quotes. Not later than 5 Business Days after the Company shall have given PIM a Request for Purchase pursuant to Section 2B(3), PIM may, but shall be under no obligation to, provide to the Company by telephone interest rate quotes
for the several principal amounts, maturities and principal prepayment schedules, and interest payment periods of Shelf Notes specified in such Request for Purchase. Each quote shall represent the interest rate per annum payable on the outstanding
principal balance of such Shelf Notes at which PIM or a Prudential Affiliate would be willing to purchase such Shelf Notes at 100% of the principal amount thereof. 
 2B(5) Acceptance. Within 2 minutes after PIM shall have provided any interest rate quotes pursuant to Section 2B(4) or such shorter period as PIM may specify to the Company (such period herein
called the “Acceptance Window”), the Company may, subject to Section 2B(6), elect to accept such interest rate quotes as to not less than $5,000,000 aggregate principal amount of the Shelf Notes specified in the related Request
for Purchase. Such election shall be made by an Authorized Officer of the Company notifying PIM by telephone or telefacsimile within the Acceptance Window (but not earlier than 9:30 a.m. or later than 1:30 p.m. (or such

  
 3 

 
later time as PIM may agree), New York City local time) that the Company elects to accept such interest rate quotes, specifying the Shelf Notes (each such Shelf Note being herein called an
“Accepted Note”) as to which such acceptance (herein called an “Acceptance”) relates. The day the Company notifies PIM of an Acceptance with respect to any Accepted Notes is herein called the “Acceptance
Day” for such Accepted Notes. Any interest rate quotes as to which PIM does not receive an Acceptance within the Acceptance Window shall expire, and no purchase or sale of Shelf Notes hereunder shall be made based on such expired interest
rate quotes. Subject to Sections 2B(2) and 2B(6) and the other terms and conditions hereof, the Company agrees to sell to PIM or a Prudential Affiliate, and PIM agrees to purchase, or to cause the purchase by a Prudential Affiliate of, the Accepted
Notes at 100% of the principal amount of such Accepted Notes. As soon as practicable following the Acceptance Day, the Company, PIM and each Prudential Affiliate which is to purchase any such Accepted Notes will execute a confirmation of such
Acceptance substantially in the form of Exhibit C (herein called a “Confirmation of Acceptance”). If the Company should fail to execute and return to PIM within 2 Business Days following receipt thereof a Confirmation of
Acceptance with respect to any Accepted Notes, PIM may at its election at any time prior to its receipt thereof cancel the closing with respect to such Accepted Notes by so notifying the Company in writing. 

2B(6) Market Disruption. Notwithstanding the provisions of Section 2B(5), if PIM shall have provided interest rate quotes
pursuant to Section 2B(4) and thereafter, prior to the time an Acceptance with respect to such quotes shall have been notified to PIM in accordance with Section 2B(5), the domestic market for U.S. Treasury securities or derivatives shall
have closed or there shall have occurred a general suspension, material limitation, or significant disruption of trading in securities generally on the New York Stock Exchange or in the domestic market for U.S. Treasury securities or derivatives,
then such interest rate quotes shall expire, and no purchase or sale of Shelf Notes hereunder shall be made based on such expired interest rate quotes. If the Company thereafter notifies PIM of the Acceptance of any such interest rate quotes, such
Acceptance shall be ineffective for all purposes of this Agreement, and PIM promptly shall notify the Company that the provisions of this Section 2B(6) are applicable with respect to such Acceptance. 

2B(7) Facility Closings. Not later than 1:30 p.m. (New York City local time) on the Closing Day for any Accepted Notes, the
Company will deliver to each Purchaser listed in the Confirmation of Acceptance relating thereto at the offices of the Bingham McCutchen LLP, Three Embarcadero Center, San Francisco, California 94111 (or such other address as PIM may specify in
writing), the Accepted Notes to be purchased by such Purchaser in the form of one or more Notes in authorized denominations as such Purchaser may request for each Series of Accepted Notes to be purchased on such Closing Day, dated the applicable
Closing Day and registered in such Purchaser’s name (or in the name of its nominee), against payment of the purchase price thereof by transfer of immediately available funds for credit to the account(s) specified in the Request for Purchase of
such Notes. If the Company fails to tender to any Purchaser the Accepted Notes to be purchased by such Purchaser on the scheduled Closing Day for such Accepted Notes as provided above in this Section 2B(7), or any of the conditions specified in
Section 4B shall not have been fulfilled by the time required on such scheduled Closing Day, the Company shall, prior to 2:00 p.m., New York City local time, on such scheduled Closing Day notify PIM (which notification shall be deemed received
by each Purchaser) in writing whether (i) such closing is to be rescheduled (such rescheduled date to be a 

  
 4 

 
Business Day during the Issuance Period not less than one Business Day and not more than 10 Business Days after such scheduled Closing Day (the “Rescheduled Closing Day”)) and
certify to PIM (which certification shall be for the benefit of each Purchaser) that the Company reasonably believes that it will be able to comply with the conditions set forth in Section 4B on such Rescheduled Closing Day and that the Company
will pay the Delayed Delivery Fee, if applicable, in accordance with Section 2B(8)(ii), or (ii) such closing is to be canceled and the Company will pay the Cancellation Fee as provided in Section 2B(8)(iii). In the event that the
Company shall fail to give such notice referred to in the immediately preceding sentence, PIM (on behalf of each Purchaser) may at its election, at any time after 2:00 p.m., New York City local time, on such scheduled Closing Day, notify the Company
in writing that such closing is to be canceled and the Company is obligated to pay the Cancellation Fee as provided in Section 2B(8)(iii). Notwithstanding anything to the contrary contained in this Agreement, the Company may elect to reschedule
a closing with respect to any given Accepted Notes on not more than one occasion, unless PIM shall have otherwise consented in writing. 
 2B(8) Fees. 
 2B(8)(i) Draw Fees. The Company will pay to or as
directed by PIM in immediately available funds a fee (herein called a “Draw Fee”) on or before each Closing Day (including the Series A Closing Day) in an amount equal to 0.10% of the aggregate principal amount of Notes sold on such
Closing Day. 
 2B(8)(ii) Delayed Delivery Fee. If the closing of the purchase and sale of any Accepted Note is delayed
for any reason beyond the original Closing Day for such Accepted Note (other than as provided in Section 2B(8)(iv) below), the Company shall pay to or as directed by PIM on the Cancellation Date or actual Closing Day of such purchase and sale,
a fee (the “Delayed Delivery Fee”) calculated as follows: 
 (BEY - MMY) X DTS/360 X PA 

where “BEY” means Bond Equivalent Yield, i.e., the bond equivalent yield per annum of such Accepted Note; “MMY”
means Money Market Yield, i.e., the yield per annum on an alternative Dollar investment of the highest quality selected by PIM having a maturity date or dates the same as, or closest to, the Rescheduled Closing Day from time to time fixed for
the delayed delivery of such Accepted Note; “DTS” means Days to Settlement, i.e., the number of actual days elapsed from and including the original Closing Day for such Accepted Note to but excluding the date of such payment;
and “PA” means Principal Amount, i.e., the principal amount of the Accepted Note for which such calculation is being made. 
 In no case shall the Delayed Delivery Fee be less than zero. Nothing contained herein shall obligate any Purchaser to purchase any Accepted Note on any day other than the Closing Day for such Accepted
Note, as the same may be rescheduled from time to time in compliance with Section 2B(7). 
 2B(8)(iii) Cancellation
Fee. If the Company at any time notifies PIM in writing that the Company is canceling the closing of the purchase and sale of any Accepted Note, or if PIM notifies the Company in writing under the circumstances set forth in the last sentence of

  
 5 

 
Section 2B(5) or the penultimate sentence of Section 2B(7) that the closing of the purchase and sale of such Accepted Note is to be canceled, or if the closing of the purchase and sale
of such Accepted Note is not consummated on or prior to the last day of the Issuance Period (the date of any such notification, or the last day of the Issuance Period, as the case may be, being herein called the “Cancellation
Date”), the Company will pay to or as directed by PIM in immediately available funds on the Cancellation Date an amount (the “Cancellation Fee”) calculated as follows: 

PI X PA 
 where
“PI” means Price Increase, i.e., the quotient (expressed in decimals) obtained by dividing (a) the excess of the ask price (as determined by PIM) of the Hedge Treasury Note(s) on the Cancellation Date over the bid price
(as determined by PIM) of the Hedge Treasury Note(s) on the Acceptance Day for such Accepted Note by (b) such bid price; and “PA” has the meaning ascribed to it in Section 2B(8)(ii). The foregoing bid and ask prices shall
be as reported by such publicly available source of such market data as is then customarily used by PIM, and rounded to the second decimal place. If any closing of the purchase and sale of any Accepted Note is cancelled due to the conditions
specified in Section 2B(8)(iv) below, then the terms of Section 2B(8)(iv) below shall apply. 
 In no case shall the Cancellation Fee
be less than zero. 
 2B(8)(iv) Invalidation of Delayed Delivery Fee and Cancellation Fee. If all conditions to a closing
of the purchase and sale of any Accepted Note set forth in Section 4B hereof have been satisfied on the original Closing Day for any Accepted Notes (other than (x) Section 4B(2) unless the Company shall have failed to comply with the
request of any Purchaser pursuant to the last sentence of such Section and (y) Section 4B(4)(g) unless the Company shall have failed to comply with any reasonable request of the Purchasers or their special counsel to provide information
necessary for the Purchaser’s special counsel to deliver the opinion required by such Section 4B(4)(g)) and a Purchaser fails to purchase such Accepted Notes, then the Company shall have no obligation to pay any Delayed Delivery Fee or
Cancellation Fee that might have otherwise been applicable. 
  

	3	SERIES A CLOSING. 

 The sale and purchase of the Series A to be purchased by each Series A Purchaser shall occur at the offices of Bingham McCutchen LLP, Three Embarcadero Center, San Francisco, California 94111, at 9:00
a.m., Pacific time, at a closing on April 21, 2011 (the “Series A Closing Day”). On the Series A Closing Day, the Company will deliver to each Series A Purchaser the Series A Notes to be purchased by such Series A Purchaser in
the form of a single Series A Note (or such greater number of Series A Notes in denominations of at least $1,000,000 as such Purchaser may request), each dated the date of the Series A Closing Day, and registered in such Series A Purchaser’s
name (or in the name of its nominee), against delivery by such Series A Purchaser to the Company or its order of immediately available funds in the amount of the purchase price therefor by wire transfer of immediately available funds for the account
of the Company to account number 0012016481 at Union Bank, 200 Pringle Avenue, Suite #250, Walnut Creek, CA 94596 (telephone: (877) 436-2080), ABA number 122000496, Beneficiary Name: McGrath

  
 6 

 
RentCorp. If on the Series A Closing Day the Company shall fail to tender such Notes as provided above in this Section 3, or any of the conditions specified in Section 4 shall not have
been fulfilled to the satisfaction of any Series A Purchaser, such Series A Purchaser shall, at its election, be relieved of all further obligations under this Agreement, without thereby waiving any rights such Purchaser may have by reason of such
failure or such nonfulfillment. 
  

	4	CONDITIONS TO CLOSING. 

 The obligation of any Purchaser to purchase and pay for any Notes is subject to the satisfaction, on or before the applicable Closing Day, of the following conditions: 

4A CONDITIONS TO SERIES A CLOSING. 

4A(1) UCC Searches. PIM and the Purchasers shall have received certified copies of Requests for Information or Copies (Form
UCC-11) or equivalent reports listing all effective financing statements which name the Company, any Subsidiary Guarantor or any Material Subsidiary (under its present name and previous names) as debtor and which are filed in the offices of the
Secretaries of State of the state in which the Company or such Subsidiary is incorporated or formed, together with copies of such financing statements. 
 4A(2) Consents. PIM shall have received evidence satisfactory to it that all government, contractual and other third-party approvals and consents, if any, necessary to the consummation of the
transactions contemplated by this Agreement and the other Transaction Documents as of the Series A Closing Day have been obtained. 
 4A(3) Payment of Special Counsel Fees. Without limiting the provisions of Section 15.1, the Company shall have paid on or before the Series A Closing Day the fees, charges and
disbursements of Bingham McCutchen LLP, special counsel to PIM and the Series A Purchasers, in connection with the preparation and negotiation of this Agreement and the other Transaction Documents. 

4B CONDITIONS TO EACH CLOSING. 

4B(1) Representations and Warranties. The representations and warranties of the Credit Parties in Section 5 hereof shall be
true on and as of the applicable Closing Day (both before and after giving effect to the issuance and purchase of Notes on such Closing Day); if the Company provides updated disclosure schedules regarding the representations and warranties of
Section 5, the same shall be acceptable to PIM; and there shall exist on such Closing Day (both before and after giving effect to the issuance and purchase of Notes on such Closing Day) no Potential Non-Compliance Event, Non-Compliance Event,
Event of Default or Default. 
 4B(2) Purchase Permitted By Applicable Law, etc. The purchase of and payment for the
Notes to be purchased by such Purchaser on the applicable Closing Day (including the use of the proceeds of such Notes by the Company) shall not violate any applicable law or governmental regulation (including, without limitation, Section 5 of
the Securities Act or Regulation T, U or X of the Board of Governors of the Federal Reserve System) and shall not subject such Purchaser to any tax (excluding taxes on the revenue and net income of such Purchaser), penalty, liability or other
onerous condition under or pursuant to any applicable law 

  
 7 

 
or governmental regulation, and such Purchaser shall have received such certificates or other evidence as it may reasonably request to establish compliance with this condition. 

4B(3) Payment of Fees. The Company shall have paid any fees due pursuant to or in connection with this Agreement, including any
Draw Fee due pursuant to Section 2B(8)(i) and any Delayed Delivery Fee due pursuant to Section 2B(8)(ii) and, without limiting the provisions of Section 15.1, the fees, charges and disbursements of the Purchasers’ special
counsel. 
 4B(4) Certain Documents. Each Purchaser that is purchasing Notes on such Closing Day shall have received the
following, each dated the applicable Closing Day (except as provided in clause (h)): 
 (a) the Note(s) to be
purchased by such Purchaser; 
 (b) certified copies of the resolutions of the Board of Directors of each of the
Credit Parties authorizing the execution and delivery of the Transaction Documents to which such Person is a party and, in the case of the Company, authorizing the issuance of the Notes, and of all documents evidencing other necessary corporate or
similar action and governmental approvals, if any, with respect to the Transaction Documents to which such Credit Party is a party and the Notes (in the case of the Company); 

(c) a certificate of the Secretary or an Assistant Secretary of each of the Credit Parties certifying the names and true
signatures of the officers of such Credit Party authorized to sign the Transaction Documents to which such Person is a party and, in the case of the Company, the Notes, to be delivered hereunder; 

(d) the Company shall have delivered to such Purchaser an Officer’s Certificate, dated such Closing Day, certifying
that the conditions specified in Section 4B(1) have been satisfied; 
 (e) certified copies of the
certificate of incorporation or articles of incorporation (or similar constitutive documents), as applicable, and by-laws, operating agreement or partnership agreement, as applicable, of each of the Credit Parties; 

(f) an opinion of Morrison & Foerster, LLP, special counsel for the Credit Parties, satisfactory to such
Purchaser and substantially in the form of Exhibit D-1 (in the case of the Series A Notes) or Exhibit D-2 (in the case of any Shelf Notes) attached hereto, and as to such other matters as such Purchaser may reasonably request. Each
Credit Party hereby directs such counsel to deliver such opinions, agrees that the issuance and sale of any Notes will constitute a reconfirmation of such direction, and understands and agrees that each Purchaser receiving such an opinion will be
and is hereby authorized to rely on such opinion; 
 (g) a favorable opinion of Bingham McCutchen LLP, special
counsel for PIM and the Purchasers, as to such matters incident to the matters herein contemplated related to the applicable Series of Notes as such Purchaser reasonably requests; 

(h) a good standing or similar certificate for each Credit Party (or its general partner, in the case of a partnership)
from the appropriate Governmental Authority of its 

  
 8 

 
jurisdiction of organization, dated as of a recent date, and such other evidence of the status of such Persons as such Purchaser may reasonably request; and 

(i) additional documents or certificates with respect to legal matters or corporate or other proceedings related to the
transactions contemplated hereby as may be reasonably requested by such Purchaser. 
 4B(5) Private Placement Number. A
Private Placement number issued by Standard & Poor’s CUSIP Service Bureau (in cooperation with the Securities Valuation Office of the National Association of Insurance Commissioners) shall have been obtained for each Series of Notes to
be issued on the applicable Closing Day. 
  

	5	REPRESENTATION AND WARRANTIES OF THE COMPANY. 

The Company represents and warrants to each Purchaser that: 
 5.1 Organization; Power and Authority. 
 Each Credit Party is a corporation or other legal
entity duly organized, validly existing and in good standing under the laws of its jurisdiction of organization, and is duly qualified as a foreign corporation or other legal entity and is in good standing in each jurisdiction in which such
qualification is required by law, other than those jurisdictions as to which the failure to be so qualified or in good standing could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. Each Credit Party
has the requisite power and authority to own or hold under lease the properties it purports to own or hold under lease, to transact the business it transacts and proposes to transact, to execute and deliver the Transaction Documents to which it is a
party and to perform the provisions of such Transaction Documents. 
 5.2 Authorization, Etc. 

This Agreement, the Notes and the other Transaction Documents to which any Credit Party is a party have been duly authorized by all necessary action on
the part of such Credit Party, and each of this Agreement and such other Transaction Documents (other than the Notes) constitutes, and upon execution and delivery thereof each Note will constitute, a legal, valid and binding obligation of each
Credit Party that is party to such Transaction Document enforceable against such Credit Party in accordance with its terms, except as such enforceability may be limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium or
other similar laws affecting the enforcement of creditors’ rights generally, and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law). 

5.3 Disclosure. 

Neither this Agreement or any of the other Transaction Documents nor any other document, certificate or statement furnished to PIM or any Purchaser by or
on behalf of any Credit Party or any Subsidiary in connection herewith or in connection with the issuance of the Notes contains any untrue statement of a material fact or omits to state a material fact necessary in order to make the statements
contained herein and therein not misleading in light of the circumstances under which they were made. There is no fact known to any Credit Party or any Subsidiary that has or 

  
 9 

 
could reasonably be expected to have a Material Adverse Effect that has not been set forth herein or in the other documents, certificates and other writings delivered to any Purchaser by or on
behalf of any Credit Party specifically for use in connection with the transactions contemplated hereby. 
 5.4 Organization;
Power and Authority. 
 (a) Schedule 5.4 contains complete and correct lists as of the Series A
Closing Day (i) of the Company’s Subsidiaries, showing, as to each Subsidiary, the correct name thereof, the jurisdiction of its organization, the percentage of shares of each class of its capital stock or similar equity interests
outstanding owned by the Company and each other Subsidiary and, if such percentage is not 100% (excluding directors’ qualifying shares as required by law), a description of each class of its authorized capital stock and other equity interests
and the number of shares or units of each class issued and outstanding, including the ownership thereof, (ii) of the Company’s Affiliates, other than Subsidiaries, and (iii) of the Company’s directors and senior officers.

 (b) All of the outstanding shares of capital stock or similar equity interests of each Subsidiary shown in
Schedule 5.4 as being owned by the Company and its Subsidiaries have been validly issued, are fully paid and nonassessable and are owned by the Company or another Subsidiary free and clear of any Lien. 

(c) Each Subsidiary identified in Schedule 5.4, (other than the Credit Parties) is a corporation or other legal
entity duly organized, validly existing and in good standing under the laws of its jurisdiction of organization, and is duly qualified as a foreign corporation or other legal entity and is in good standing in each jurisdiction in which such
qualification is required by law, other than those jurisdictions as to which the failure to be so qualified or in good standing could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. Each such
Subsidiary has the corporate or other power and authority to own or hold under lease the properties it purports to own or hold under lease and to transact business it transacts and proposes to transact. 

(d) No Subsidiary is a party to, or otherwise subject to any legal, regulatory, contractual or other restriction (other
than this Agreement, the agreements listed on Schedule 5.4 and customary limitations imposed by corporate law or similar statutes) restricting the ability of such Subsidiary to pay dividends out of profits or make any other similar
distributions of profits to the Company or any of its Subsidiaries that owns outstanding shares of capital stock or similar equity interests of such Subsidiary. 
 5.5 Financial Statements. 
 The Company has furnished each Purchaser of the Series A Notes
and any Accepted Shelf Notes with the following financial statements: (i) consolidated balance sheets of the Company and its Subsidiaries as at December 31st in each of the three fiscal years of the Company most recently completed prior to
the date as of which this representation is made or repeated to such Purchaser (other than fiscal years completed within 90 days prior to such date for which audited financial statements have not been released) and consolidated statements of income,
cash flows and 

  
 10 

 
shareholders’ equity of the Company and its Subsidiaries for each such year, all reported on by Grant Thornton LLP (or such other nationally recognized accounting firm as may have been
selected by the Company subsequent to the date of this Agreement), and (ii) consolidated balance sheets of the Company and its Subsidiaries as at the end of the quarterly period (if any) most recently completed prior to such date and after the
end of such fiscal year (other than quarterly periods completed within 45 days prior to such date for which financial statements have not been released) and the comparable quarterly period in the preceding fiscal year and consolidated statements of
income, cash flows and shareholders’ equity for the periods from the beginning of the fiscal years in which such quarterly periods are included to the end of such quarterly periods, prepared by the Company. Such financial statements (including
any related schedules and/or notes), have been prepared in accordance with GAAP consistently followed throughout the periods involved. The balance sheets fairly present the consolidated condition of the Company and its Subsidiaries as at the dates
thereof, and the statements of income, stockholders’ equity and cash flows fairly present the results of the operations of the Company and its Subsidiaries and their cash flows for the periods indicated. The Company and its Subsidiaries do not
have any Material liabilities that are not disclosed on such financial statements or otherwise disclosed in writing to the Purchasers. There has been no material adverse change in the business, property or assets, financial condition, operations or
prospects of the Company or its Subsidiaries taken as a whole since the end of the most recent fiscal year for which such audited financial statements have been furnished. 
 5.6 Compliance with Laws; Other Instruments, Etc. 
 The execution, delivery and performance
by each Credit Party of the Transaction Documents to which it is a party will not (i) contravene, result in any breach of, or constitute a default under, or result in the creation of any Lien in respect of any property of any Credit Party or
any of its Subsidiaries under, any indenture, mortgage, deed of trust, loan, purchase or credit agreement, lease, corporate charter (or similar constitutive documents) or bylaws (or similar documents), or any other agreement or instrument to which
any Credit Party or any of its Subsidiaries is bound or by which any Credit Party or any of its Subsidiaries or any of their respective properties may be bound or affected, (ii) conflict with or result in a breach of any of the terms,
conditions or provisions of any order, judgment, decree, or ruling of any court, arbitrator or Governmental Authority applicable to any Credit Party or any of its Subsidiaries, or (iii) violate any provision of any statute or other rule or
regulation of any Governmental Authority applicable to any Credit Party or any of its Subsidiaries. 
 5.7 Governmental
Authorizations, Etc. 
 No consent, approval or authorization of, or registration, filing or declaration with, any Governmental Authority is
required in connection with the execution, delivery or performance by any Credit Party of this Agreement, the Notes or the other Transaction Documents to which such Person is a party. 

5.8 Litigation; Observance of Agreements, Statutes and Orders. 

(a) There are no actions, suits, investigations or proceedings pending or, to the knowledge of the Company, threatened
against or affecting the Company or any Subsidiary or 

  
 11 

 
any property of the Company or any Subsidiary in any court or before any arbitrator of any kind or before or by any Governmental Authority that, individually or in the aggregate, could reasonably
be expected to have a Material Adverse Effect. 
 (b) Neither the Company nor any Subsidiary is in default under
any term of any agreement or instrument to which it is a party or by which it is bound, or any order, judgment, decree or ruling of any court, arbitrator or Governmental Authority or is in violation of any applicable law, ordinance, rule or
regulation (including without limitation Environmental Laws, the USA Patriot Act, or any of the other laws and regulations referred to in Section 5.16) of any Governmental Authority, which default or violation, individually or in the aggregate,
could reasonably be expected to have a Material Adverse Effect. 
 5.9 Taxes. 

The Company and its Subsidiaries have filed all income tax and other Material tax returns that are required to have been filed in any jurisdiction, and
have paid all taxes shown to be due and payable on such returns and all other taxes and assessments levied upon them or their properties, assets, income or franchises, to the extent such taxes and assessments have become due and payable and before
they have become delinquent, except for any taxes and assessments (i) the amount of which is not individually or in the aggregate Material, or (ii) the amount, applicability or validity of which is currently being contested in good faith
by appropriate proceedings and with respect to which the Company or a Subsidiary, as the case may be, has established adequate reserves in accordance with GAAP. The Company knows of no basis for any other tax or assessment that could reasonably be
expected to have a Material Adverse Effect. The charges, accruals and reserves on the books of the Company and its Subsidiaries in respect of federal, state or other taxes for all fiscal periods are adequate. 

5.10 Title to Property; Leases. 
 The Company and its Subsidiaries have good and sufficient title to their respective properties that individually or in the aggregate are Material, including all such properties reflected in the most
recent audited balance sheet delivered pursuant to Section 7.1(b), or if no such balance sheet has been delivered, the most recent audited balance sheet referred to in Section 5.5 or purported to have been acquired by the Company or any
Subsidiary after said date (except as sold or otherwise disposed of in the ordinary course of business), in each case free and clear of Liens prohibited by this Agreement. All leases that individually or in the aggregate are Material are valid and
subsisting and are in full force and effect in all material respects. 
 5.11 Licenses, Permits, Etc. 

(a) The Company and its Subsidiaries own or possess all licenses, permits, franchises, authorizations, patents,
copyrights, proprietary software, service marks, trademarks and trade names, or rights thereto, that individually or in the aggregate are Material, without known conflict with the rights of others. 

(b) To the best knowledge of the Company, no product of the Company or any of its Subsidiaries infringes in any material
respect any license, permit, franchise, 

  
 12 

 
authorization, patent, copyright, proprietary software, service mark, trademark, trade name or other right owned by any other Person. 

(c) To the best knowledge of the Company, there is no Material violation by any Person of any right of the Company or any
of its Subsidiaries with respect to any patent, copyright, proprietary software, service mark, trademark, trade name or other right owned or used by the Company or any of its Subsidiaries. 

5.12 Compliance with ERISA. 
 (a) The Company, each Subsidiary and each ERISA Affiliate have operated and administered each Plan in compliance with all applicable laws except for such instances of noncompliance as have not resulted in
and could not reasonably be expected to result in a Material Adverse Effect. None of the Company, any Subsidiary or any ERISA Affiliate has incurred any liability pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the
Code relating to employee benefit plans (as defined in section 3 of ERISA) that could reasonably be expected to result in a Material Adverse Effect, and no event, transaction or condition has occurred or exists that could reasonably be expected
to result in the incurrence of any such liability by the Company, any Subsidiary or any ERISA Affiliate, or in the imposition of any Lien on any of the rights, properties or assets of the Company, any Subsidiary or any ERISA Affiliate, in either
case pursuant to Title I or IV of ERISA or to such penalty or excise tax provisions or pursuant to section 4068 of ERISA or the Pension Funding Rules, other than such liabilities or Liens as would not be individually or in the aggregate
Material. 
 (b) No Plan has failed to satisfy the minimum funding standards of the Pension Funding Rules for any
plan year or part thereof or has sought a waiver of such standards or extension of any amortization period is sought or granted under the Pension Funding Rules. Following the effective date of the Pension Act, for any Plan which is subject to the
Pension Funding Rules, the funding target attainment percentage, within the meaning of Section 303 of ERISA or Section 430 of the Code, for such Plan is not less than 70%. 

(c) The Company, the Subsidiaries and its ERISA Affiliates have not incurred withdrawal liabilities (and are not subject
to contingent withdrawal liabilities) under section 4201 or 4204 of ERISA in respect of Multiemployer Plans that individually or in the aggregate are Material. 

(d) The expected postretirement benefit obligation (determined as of the last day of the Company’s most recently
ended fiscal year in accordance with Financial Accounting Standards Board Accounting Standards Codification 715-60, without regard to liabilities attributable to continuation coverage mandated by section 4980B of the Code) of the Company and its
Subsidiaries is not Material. 
 (e) The execution and delivery of this Agreement and the issuance and sale of
the Notes hereunder will not involve any transaction that is subject to the prohibitions of section 406 of ERISA or in connection with which a tax could be imposed pursuant to section 4975(c)(1)(A)-(D) of the Code. The representation
by the Company to each Purchaser in the first sentence of this Section 5.12(e) is made in reliance upon and subject to the accuracy of 

  
 13 

 
such Purchaser’s representation in Section 6.2 as to the sources of the funds used to pay the purchase price of the Notes to be purchased by such Purchaser. 

5.13 Private Offering by the Company. 
 Neither the Company nor anyone acting on its behalf has offered the Notes or any similar securities for sale to, or solicited any offer to buy any of the same from, or otherwise approached or negotiated
in respect thereof with, any Person other than the Purchasers, each of which has been offered the Notes at a private sale for investment. Neither the Company nor anyone acting on its behalf has taken, or will take, any action that would subject the
issuance or sale of the Notes to the registration requirements of Section 5 of the Securities Act or the registration requirements of any securities or blue sky laws of any applicable jurisdiction. 

5.14 Use of Proceeds; Margin Regulations. 
 The Company will apply the proceeds of the sale of (i) the Series A Notes to refinance existing indebtedness, for working capital and for other general corporate purposes, and (ii) each Series
of Shelf Notes in the manner described in the applicable Request for Purchase with respect to such Series of Shelf Notes. None of the proceeds of the sale of the Notes hereunder will be used, directly or indirectly, for the purpose of buying or
carrying any margin stock within the meaning of Regulation U of the Board of Governors of the Federal Reserve System (12 CFR 221) in contravention of said Regulation U, or for the purpose of buying or carrying or trading in any securities under
such circumstances as to involve the Company in a violation of Regulation X of said Board (12 CFR 224) or to involve any broker or dealer in a violation of Regulation T of said Board (12 CFR 220). Margin stock does not constitute more than 5% of the
value of the consolidated assets of the Company and its Subsidiaries and the Company does not have any present intention that margin stock will constitute more than 5% of the value of such assets. As used in this Section, the terms “margin
stock” and “purpose of buying or carrying” shall have the meanings assigned to them in said Regulation U. 
 5.15 Existing Indebtedness; Liens. 
 (a) Except as described
therein, Schedule 5.15 sets forth a complete and correct list of all outstanding Indebtedness of the Company and its Subsidiaries (other than Indebtedness owing to the Company or a Subsidiary) as of March 31, 2011 (including a
description of the obligors and obligees, principal amount outstanding and collateral therefor, if any, and Guarantee thereof, if any), since which date there has been no Material change in the amounts, interest rates, sinking funds, installment
payments or maturities of the Indebtedness of the Company or its Subsidiaries. Neither the Company nor any Subsidiary is in default and no waiver of default is currently in effect, in the payment of any principal or interest on any Indebtedness of
the Company or such Subsidiary and no event or condition exists with respect to any Indebtedness of the Company or any Subsidiary that would permit (or that with notice or the lapse of time, or both, would permit) one or more Persons to cause such
Indebtedness to become due and payable before its stated maturity or before its regularly scheduled dates of payment. 

  
 14 

 (b) Neither the Company nor any Subsidiary has agreed or consented to cause
or permit in the future (upon the happening of a contingency or otherwise) any of its property, whether now owned or hereafter acquired, to be subject to a Lien not permitted by Section 10.5. 

(c) As of the Series A Closing Day, neither the Company nor any Subsidiary is a party to, or otherwise subject to any
provision contained in, any instrument evidencing Indebtedness of the Company or such Subsidiary in an aggregate principal and/or commitment amount of $10,000,000 or more, any agreement relating thereto or any other agreement (including, but not
limited to, its charter or other organizational document), in each case, which limits the amount of, or otherwise imposes restrictions on the incurring of, Indebtedness of the Company or any Subsidiary, except as specifically indicated in
Schedule 5.15. 
 5.16 Foreign Assets Control Regulations, etc. 

(a) Neither the Company nor any Affiliated Entity (i) is a Person whose name appears on the list of Specially
Designated Nationals and Blocked Persons published by the Office of Foreign Assets Control of the U.S. Department of Treasury (“OFAC”) (an “OFAC Listed Person”), (ii) knowingly engages in any dealings or
transactions with any such OFAC Listed Person, or (iii) is a department, agency or instrumentality of, or is otherwise controlled by or acting on behalf of, directly or indirectly, (A) any OFAC Listed Person or (B) the government of a
country subject to comprehensive U.S. economic sanctions administered by OFAC, currently Iran, Sudan, Cuba, Burma, Syria and North Korea (each OFAC Listed Person and each other entity described in clause (iii), a “Blocked Person”).

 (b) No part of the proceeds from the sale of the Notes hereunder constitutes or will constitute funds obtained
on behalf of any Blocked Person or will otherwise be used, directly by the Company or indirectly through any Affiliated Entity, in connection with any investment in, or any transactions or dealings with, any Blocked Person. 

(c) Neither the Company nor any Affiliated Entity (i) is under investigation by any governmental authority for, or
has been charged with, or convicted of, money laundering, drug trafficking, terrorist-related activities or other money laundering predicate crimes under any applicable law (collectively, “Anti-Money Laundering Laws”), (ii) has
been assessed civil penalties under any Anti-Money Laundering Laws, or (iii) has had any of its funds seized or forfeited in an action under any Anti-Money Laundering Laws. The Company has taken reasonable measures appropriate to the
circumstances (in any event as required by applicable law), to ensure that the Company and each Affiliated Entity is and will continue to be in compliance with all applicable current and future Anti-Money Laundering Laws. 

(d) No part of the proceeds from the sale of the Notes hereunder will be used, directly or indirectly, for any improper
payments to any governmental official or employee, political party, official of a political party, candidate for political office, official of any public international organization 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. The Company has taken reasonable measures appropriate to the circumstances (in any event as required by
applicable law), to ensure that the Company and each Affiliated Entity is and will continue to be in compliance with all applicable 

  
 15 

 
current and future anti-corruption laws and regulations. 
 5.17 Status
under Certain Statutes. 
 Neither the Company nor any Subsidiary is, or is required to be registered as, an “investment company”
under the Investment Company Act of 1940, as amended. Neither the Company nor any Subsidiary is subject to regulation under the Public Utility Holding Company Act of 2005, as amended, the ICC Termination Act of 1995, as amended, or the Federal Power
Act, as amended. 
 5.18 Environmental Matters. 

(a) Neither the Company nor any Subsidiary has knowledge of any pending claim or has received any notice of any claim, and
no proceeding has been instituted raising any claim against the Company or any of its Subsidiaries or any of their respective real properties now or formerly owned, leased or operated by any of them or other assets, alleging any damage to the
environment or violation of any Environmental Laws, except, in each case, such as could not reasonably be expected to result in a Material Adverse Effect. 
 (b) Neither the Company nor any Subsidiary has knowledge of any circumstances which are reasonably likely to give rise to any claim, public or private, of violation of Environmental Laws or damage to the
environment emanating from, occurring or pertaining to real properties now or formerly owned, leased or operated by any of them or to other assets or their use, except, in each case, such as could not reasonably be expected to result in a Material
Adverse Effect. 
 (c) Neither the Company nor any Subsidiary has stored any Hazardous Materials on real
properties now or, to the knowledge of the Company or any Subsidiary, formerly owned, leased or operated by any of them and has not disposed of any Hazardous Materials in a manner contrary to any Environmental Laws, except to the extent such storage
or disposal could not reasonably be expected to result in a Material Adverse Effect; and 
 (d) All buildings on
all real properties now owned, leased or operated by the Company or any Subsidiary are in compliance with applicable Environmental Laws, except where failure to comply could not reasonably be expected to result in a Material Adverse Effect.

 5.19 Absence of Financing Statements. 
 Except with respect to Liens permitted by Section 10.5, there is no financing statement, security agreement, real estate mortgage or other document authorized by the Company or any Material
Subsidiary to be filed or recorded with any filing records, registry or other public office, that effects or effectively gives notice of any present or possible future Lien on, or security interest in, any assets or property of the Company or any
Material Subsidiary or any rights relating thereto. 
 5.20 Solvency. 

Both before and after giving effect to the transactions contemplated by this Agreement, each of the Company and each other Credit Party is Solvent.

  
 16 

 5.21 Hostile Tender Offers. None of the proceeds of the sale of any Notes will
be used to finance a Hostile Tender Offer. 
  

	6	REPRESENTATIONS OF THE PURCHASERS. 

6.1 Purchase for Investment. Each Purchaser severally represents that it is purchasing the Notes for its own account or for
one or more separate accounts maintained by such Purchaser or for the account of one or more pension or trust funds and not with a view to the distribution thereof, provided that the disposition of such Purchaser’s or their property
shall at all times be within such Purchaser’s or their control. Each Purchaser understands that the Notes have not been registered under the Securities Act and may be resold only if registered pursuant to the provisions of the Securities Act or
if an exemption from registration is available, except under circumstances where neither such registration nor such an exemption is required by law, and that the Company is not required to register the Notes nor does it intend to do so and, in any
event, a Purchaser shall only reoffer or resell the Notes purchased by it in accordance with any available exemption from the requirements of Section 5 of the Securities Act, except as aforesaid. 

6.2 Source of Funds. 

Each Purchaser severally represents that at least one of the following statements is an accurate representation as to each source of funds (a
“Source”) to be used by such Purchaser to pay the purchase price of the Notes to be purchased by such Purchaser hereunder: 
 (a) the Source is an “insurance company general account” (as the term is defined in the United States Department of Labor’s Prohibited Transaction Exemption (“PTE”) 95-60)
in respect of which the reserves and liabilities (as defined by the annual statement for life insurance companies approved by the National Association of Insurance Commissioners (the “NAIC Annual Statement”)) for the general account
contract(s) held by or on behalf of any employee benefit plan together with the amount of the reserves and liabilities for the general account contract(s) held by or on behalf of any other employee benefit plans maintained by the same employer (or
affiliate thereof as defined in PTE 95-60) or by the same employee organization in the general account do not exceed 10% of the total reserves and liabilities of the general account (exclusive of separate account liabilities) plus surplus as set
forth in the NAIC Annual Statement filed with such Purchaser’s state of domicile; or 
 (b) the Source is a
separate account that is maintained solely in connection with such Purchaser’s fixed contractual obligations under which the amounts payable, or credited, to any employee benefit plan (or its related trust) that has any interest in such
separate account (or to any participant or beneficiary of such plan (including any annuitant)) are not affected in any manner by the investment performance of the separate account; or 

(c) the Source is either (i) an insurance company pooled separate account, within the meaning of PTE 90-1, or
(ii) a bank collective investment fund, within the meaning of the PTE 91-38 and, except as disclosed by such Purchaser to the Company in writing pursuant to this clause (c), no employee benefit plan or group of plans maintained by the same
employer or 

  
 17 

 
employee organization beneficially owns more than 10% of all assets allocated to such pooled separate account or collective investment fund; or 

(d) the Source constitutes assets of an “investment fund” (within the meaning of Part V of PTE 84-14 (the
“QPAM Exemption”)) managed by a “qualified professional asset manager” or “QPAM” (within the meaning of Part V of the QPAM Exemption), no employee benefit plan’s assets that are included in such investment
fund, when combined with the assets of all other employee benefit plans established or maintained by the same employer or by an affiliate (within the meaning of Section V(c)(1) of the QPAM Exemption) of such employer or by the same employee
organization and managed by such QPAM, exceed 20% of the total client assets managed by such QPAM, the conditions of Part I(c) and (g) of the QPAM Exemption are satisfied, as of the last day of its most recent calendar quarter, neither the QPAM
nor a person controlling or controlled by the QPAM (applying the definition of “control” in Section V(e) of the QPAM Exemption) owns a 10% or more interest in the Company and (i) the identity of such QPAM, and (ii) the names of
all employee benefit plans whose assets managed by the QPAM in the investment fund, when combined with the assets of other plans established or maintained by the same employer (or affiliate thereof described in Section V(c)(1) of the QPAM Exemption)
or by the same employee organization, represent 10% or more of the assets of the investment fund have been disclosed to the Company in writing pursuant to this clause (d); or 

(e) the Source constitutes assets of a “plan(s)” (within the meaning of Section IV of PTE 96-23 (the
“INHAM Exemption”)) managed by an “in-house asset manager” or “INHAM” (within the meaning of Part IV of the INHAM Exemption), the conditions of Part I(a), (g) and (h) of the INHAM Exemption are
satisfied, neither the INHAM nor a person controlling or controlled by the INHAM (applying the definition of “control” in Section IV(h) of the INHAM Exemption) owns a 5% or more interest in the Company and (i) the identity of such
INHAM, and (ii) the name(s) of the employee benefit plan(s) whose assets constitute the Source have been disclosed to the Company in writing pursuant to this clause (e); or 

(f) the Source is a governmental plan; or 

(g) the Source is one or more employee benefit plans, or a separate account or trust fund comprised of one or more
employee benefit plans, or one or more plans, within the meaning of Section 4975 of the Code, each of which has been identified to the Company in writing pursuant to this clause (g); or 

(h) the Source does not include the “plan assets,” within the meaning of Department of Labor Regulations
Section 2510.3-101, as modified by Section 3(42) of ERISA, of any employee benefit plan subject to the fiduciary responsibility provisions of Title I of ERISA or of any plan to which Section 4975 of the Code applies. 

As used in this Section 6.2, the terms “employee benefit plan”, “governmental plan”, and “separate account” shall have
the respective meanings assigned to such terms in Section 3 of ERISA. 
  

	7	INFORMATION AS TO THE COMPANY. 

The Company covenants that during the Issuance Period and so long thereafter as any Notes 

  
 18 

 
remain outstanding or any amounts owing under the Transaction Documents remain unpaid: 
 7.1 Financial and Business Information. The Company shall deliver to each holder of Notes that is an Institutional Investor: 

(a) Quarterly Statements — within 45 days after the end of each Fiscal Quarter in each Fiscal Year of the
Company (other than the last Fiscal Quarter of each such Fiscal Year), copies of, 
 (i) a consolidated balance
sheet of the Company and its Subsidiaries as at the end of such quarter, and 
 (ii) consolidated statements of
income and cash flows of the Company and its Subsidiaries, for such quarter and (in the case of the second and third quarters) for the portion of the Fiscal Year ending with such quarter, 

setting forth in each case in comparative form the figures for the corresponding periods in the previous Fiscal Year, all in reasonable
detail, prepared in accordance with GAAP applicable to quarterly financial statements generally, and certified by a Senior Financial Officer as fairly presenting, in all material respects, the financial position of the companies being reported on
and their results of operations and cash flows, subject to changes resulting from year-end adjustments; 
 (b)
Annual Statements — within 90 days after the end of each Fiscal Year of the Company, 
 (i) a
consolidated balance sheet of the Company and its Subsidiaries as at the end of such year, and 
 (ii)
consolidated statements of income, shareholders’ equity and cash flows of the Company and its Subsidiaries for such year, 

setting forth in each case in comparative form the figures for the previous fiscal year, all in reasonable detail, prepared in accordance
with GAAP, and accompanied by an opinion thereon of independent public accountants of recognized national standing, which opinion shall state that such financial statements present fairly, in all material respects, the financial position of the
companies being reported upon and their results of operations and cash flows and have been prepared in conformity with GAAP, and that the examination of such accountants in connection with such financial statements has been made in accordance with
generally accepted auditing standards, and that such audit provides a reasonable basis for such opinion in the circumstances. 
 (c) ERISA Matters — promptly, and in any event within ten (10) Business Days after a Responsible Officer becoming aware of any of the following, a written notice setting forth the nature
thereof and the action, if any, that the Company or an ERISA Affiliate proposes to take with respect thereto: 

  
 19 

 (i) with respect to any Plan, any reportable event, as defined in
section 4043(c) of ERISA and the regulations thereunder, for which notice thereof has not been waived pursuant to such regulations as in effect on the date hereof; or 

(ii) the taking by the PBGC of steps to institute, or the threatening by the PBGC of the institution of, proceedings under
section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Plan, or the receipt by the Company or any ERISA Affiliate of a notice from a Multi-employer Plan that such action has been taken by the PBGC with
respect to such Multi-employer Plan; or 
 (iii) any event, transaction or condition that could reasonably be
expected to result in the incurrence of any liability by the Company or any ERISA Affiliate pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to employee benefit plans, or in the imposition of any Lien
on any of the rights, properties or assets of the Company or any ERISA Affiliate pursuant to Title I or IV of ERISA or such penalty or excise tax provisions, if such liability or Lien, taken together with any other such liabilities or Liens then
existing, could reasonably be expected to have a Material Adverse Effect; 
 (d) Notices from Governmental
Authority — promptly, and in any event within 30 days of receipt thereof, copies of any notice to the Company or any Subsidiary from any federal or state Governmental Authority relating to any order, ruling, statute or other law or
regulation that could reasonably be expected to have a Material Adverse Effect; 
 (e) Other Financings
— promptly upon receipt thereof, a copy of any other credit agreement or similar agreement to which the Company or any Subsidiary is a party not previously delivered pursuant to which the credit commitments available to the Company or any
Subsidiary, individually or in the aggregate, and/or outstanding principal indebtedness incurred equals or exceeds $5,000,000, a copy of each notice of default or noncompliance received by the Company or any of its Subsidiaries with respect thereto,
and promptly following execution and delivery thereof, a copy of any amendment, waiver or other modification of any such agreement; 
 (f) Auditor Reports — to the extent that delivery thereof is not prohibited by confidentiality or other agreements, promptly upon receipt thereof, a copy of each other report pertaining to
material items submitted to the Company or any Subsidiary by independent accountants in connection with any annual, interim or special audit made by them of the books of the Company or any Subsidiary; 

(g) Budget and Projections — within 15 days following approval thereof by the Company’s board of
directors, but in any event within 120 days after the end of each fiscal year, a copy of the Company’s financial plan for the next succeeding fiscal year (and any subsequent periods covered in the projections provided to the Banks), including
consolidated balance sheets and statements of income or operations and cash flows of the Company and its Subsidiaries on a quarterly basis for such next succeeding fiscal year; and 

  
 20 

 (h) Requested Information — with reasonable promptness, such
other data and information relating to the business, operations, affairs, financial condition, assets or properties of the Company or any of its Subsidiaries or relating to the ability of the Company to perform its obligations hereunder and under
the Notes as from time to time may be reasonably requested by any such holder of Notes. 
 7.2 Officer’s
Certificate. Each set of financial statements delivered to a holder of Notes pursuant to Section 7.1(a) or Section 7.1(b) shall be accompanied by a certificate of a Senior Financial Officer setting forth: 

(a) Covenant Compliance — (i) the information (including reasonably detailed calculations) required in
order to establish whether the Company was in compliance with the requirements of Section 10.1, Section 10.3 and Section 10.6 during the quarterly or annual period covered by the statements then being furnished (including with respect
to each such Section, where applicable, the calculations of the maximum or minimum amount, ratio or percentage, as the case may be, permissible under the terms of such Sections, and the calculation of the amount, ratio or percentage then in
existence), and (ii) the total revenues for each Subsidiary other than Material Subsidiaries for the period of four consecutive fiscal quarters ended as of the date with respect to which such certificate pertains, and the total assets for each
such Subsidiary as of such date; and 
 (b) Event of Default — a statement that such Senior Financial
Officer has reviewed the relevant terms hereof and has made, or caused to be made, under his or her supervision, a review of the transactions and conditions of the Company and its Subsidiaries from the beginning of the quarterly or annual period
covered by the statements then being furnished to the date of the certificate and that such review shall not have disclosed the existence during such period of any condition or event that constitutes a Potential Non-Compliance Event, Non-Compliance
Event, Default or an Event of Default or, if any such condition or event existed or exists (including, without limitation, any such event or condition resulting from the failure of the Company or any Subsidiary to comply with any Environmental Law),
specifying the nature and period of existence thereof and what action the Company shall have taken or proposes to take with respect thereto. 
 7.3 Notices; Reports. The Company shall as soon as practicable, and in any event no later than 5 days after any Responsible Officer obtains knowledge of (a) the occurrence of any
Default or Event of Default, (b) the existence of any threatened or pending litigation, suit or administrative proceeding affecting the Company or any Subsidiary which might have a Material Adverse Effect, or (c) a material labor dispute
resulting in or threatening to result in a strike, slow-down or work stoppage of any kind against the Company or any Subsidiary, deliver to each holder of the Notes an Officer’s Certificate specifying the nature and period of existence thereof,
the effect, if any, of such event or circumstance on the results of operations, condition (financial or otherwise) or the ability of each Credit Party to comply with the Transaction Documents to which such Credit Party is a party, and what action
the Company proposes to take with respect thereto. 
 7.4 Visitation. The Company shall permit the representatives
of each holder of Notes that is an Institutional Investor: 

  
 21 

 (a) No Default — if no Default or Event of Default then exists,
at the expense of such holder and upon reasonable prior notice to the Company and during normal business hours, to visit the principal executive office of the Company, to discuss the affairs, finances and accounts of the Company and its Subsidiaries
with the Company’s officers, and (with the consent of the Company, which consent will not be unreasonably withheld) its independent public accountants, and (with the consent of the Company, which consent will not be unreasonably withheld) to
visit the other offices and properties of the Company and each Subsidiary, no more frequently than twice per year; and 
 (b) Default — if a Default or Event of Default then exists, at the expense of the Company and upon reasonable prior notice to the Company and during normal business hours, to visit and inspect
any of the offices or properties of the Company or any Subsidiary, to examine all their respective books of account, records, reports and other papers, to make copies and extracts therefrom, and to discuss their respective affairs, finances and
accounts with their respective officers and independent public accountants (and by this provision the Company authorizes said accountants to discuss the affairs, finances and accounts of the Company and its Subsidiaries), as often as may be
requested. 
 7.5 Limitation on Disclosure Obligations. Except for information provided by the Company to any of
the other parties under the Bank Credit Agreement, the Company shall not be required to disclose the following information pursuant to Section 7.1(h), 7.3(b) or (c) or 7.4: 

(a) information that the Company determines after consultation with counsel qualified to advise on such matters that,
notwithstanding the confidentiality requirements of Section 21, it would be prohibited from disclosing by applicable law or regulations without making public disclosure thereof; or 

(b) information that, notwithstanding the confidentiality requirements of Section 21, the Company is prohibited from
disclosing by the terms of an obligation of confidentiality contained in any agreement with any non-Affiliated Entity binding upon the Company and not entered into in contemplation of this clause (b), provided that the Company shall use
commercially reasonable efforts to obtain consent from the party in whose favor the obligation of confidentiality was made to permit the disclosure of the relevant information and provided further that the Company has received a
written opinion of counsel (which may be an internal counsel) confirming that disclosure of such information without consent from such other contractual party would constitute a breach of such agreement. 

Promptly after a request therefor from any holder of Notes that is an Institutional Investor, the Company will provide such holder with a written opinion
of counsel (which may be addressed to the Company and which may be of an internal counsel) relied upon as to any requested information that the Company is prohibited from disclosing to such holder under circumstances described in this
Section 7.5. 
 Under no circumstances shall the Company or any Subsidiary be required to disclose any information whatsoever under the
terms of this Agreement to any Person that is a Competitor. 

  
 22 

	8	PREPAYMENT OF THE NOTES. 

 The Series A Notes and any Shelf Notes shall be subject to required prepayment as and to the extent provided in Section 8.1. The Series A Notes and any Shelf Notes shall also be subject to prepayment
under the circumstances set forth in Section 8.2. 
 8.1 Required Prepayments. 

(a) Series A Notes. On April 21, 2014 and on each April 21 thereafter to and including April 21,
2017 the Company will prepay $20,000,000 principal amount (or such lesser principal amount as shall then be outstanding) of the Series A Notes at par and without payment of the Make-Whole Amount or any premium, provided that upon any partial
prepayment of the Series A Notes pursuant to Section 8.2 or any partial purchase of the Series A Notes pursuant to Section 8.5, the principal amount of each required prepayment of the Series A Notes becoming due under this Section 8.1
on and after the date of such prepayment or purchase shall be reduced in the same proportion as the aggregate unpaid principal amount of the Series A Notes is reduced as a result of such prepayment or purchase. 

(b) Shelf Notes. Each Series of Shelf Notes shall be subject to required prepayments, if any, set forth in the
Notes of such Series; provided that upon any partial prepayment of any Series of Shelf Notes pursuant to Section 8.2 or any partial purchase of any Series of Shelf Notes pursuant to Section 8.5, the principal amount of each required
prepayment thereof becoming due on and after the date of such partial prepayment or purchase shall be reduced in the same proportion as the aggregate principal amount of such Series of Shelf Notes is reduced as a result of such prepayment or
purchase. 
 8.2 Optional Prepayments with Make-Whole Amount. 
 The Company may, at its option, upon notice as provided below, prepay at any time all, or from time to time any part of, the Notes of any Series (to the exclusion of all other Series), in an amount not
less than $5,000,000 (and increments of $100,000 in excess thereof) of the aggregate principal amount of the Notes of such Series then outstanding in the case of a partial prepayment, or such lesser principal amount of the Notes of such Series as
shall then be outstanding, at 100% of the principal amount so prepaid, and the Make-Whole Amount determined for the prepayment date with respect to such principal amount. The Company will give each holder of Notes of such Series written notice of
each optional prepayment under this Section 8.2 not less than 5 Business Days and not more than 60 days prior to the date (which shall be a Business Day) fixed for such prepayment. Each such notice shall specify such date, the Series of Notes
to be prepaid, the aggregate principal amount of such Notes to be prepaid on such date, the principal amount of each Note of such Series held by such holder to be prepaid (determined in accordance with Section 8.3), and the interest to be paid
on the prepayment date with respect to such principal amount being prepaid. 
 8.3 Allocation of Partial Prepayments.

 In the case of each partial prepayment of the Notes of each Series pursuant to Section 8.1(a) or Section 8.2, the principal
amount prepaid shall be allocated among the Notes of such Series at the time outstanding in proportion, as nearly as practicable, to the respective unpaid principal 

  
 23 

 
amounts thereof not theretofore prepaid. 
 8.4 Maturity; Surrender,
Etc. 
 In the case of each prepayment of Notes pursuant to this Section 8, the principal amount of each Note to be prepaid shall
mature and become due and payable on the date fixed for such prepayment (which shall be a Business Day), together with interest on such principal amount accrued to such date and the applicable Make-Whole Amount, if any. From and after such date,
unless the Company shall fail to pay such principal amount when so due and payable, together with the interest and Make-Whole Amount, if any, as aforesaid, interest on such principal amount shall cease to accrue. Any Note paid or prepaid in full
shall be surrendered to the Company and cancelled and shall not be reissued, and no Note shall be issued in lieu of any prepaid principal amount of any Note. 
 8.5 Purchase of Notes. 
 The Company will not, and will not permit any Affiliated Entity
to, purchase, redeem, prepay or otherwise acquire, directly or indirectly, any of the outstanding Notes of any Series except (i) upon the payment or prepayment of the Notes of such Series in accordance with the terms of this Agreement and the
Notes of such Series, or (ii) pursuant to a written offer to purchase any outstanding Notes of such Series made by the Company or an Affiliated Entity pro rata to the holders of all Notes of such Series at the time outstanding upon the same
terms and conditions. The Company will promptly cancel all Notes acquired by it or any Affiliated Entity pursuant to any payment, prepayment or purchase of Notes pursuant to any provision of this Agreement, and no Notes may be issued in substitution
or exchange for any such Notes. 
 8.6 Make-Whole Amount. 

“Make-Whole Amount” means, with respect to any Note, an amount equal to the excess, if any, of the Discounted Value of
the Remaining Scheduled Payments with respect to the Called Principal of such Note over the amount of such Called Principal; provided that the Make-Whole Amount may in no event be less than zero. For the purposes of determining the Make-Whole
Amount, the following terms have the following meanings: 
 “Called Principal” means, with respect to any Note,
the principal of such Note that is to be prepaid pursuant to Section 8.2 or has become or is declared to be immediately due and payable pursuant to Section 12.1, as the context requires. 

“Discounted Value” means, with respect to the Called Principal of any Note, the amount obtained by discounting all
Remaining Scheduled Payments with respect to such Called Principal from their respective scheduled due dates to the Settlement Date with respect to such Called Principal, in accordance with accepted financial practice and at a discount factor
(applied on the same periodic basis as that on which interest on the Notes is payable) equal to the Reinvestment Yield with respect to such Called Principal. 
 “Reinvestment Yield” means, with respect to the Called Principal of any Note, 0.50% over the yield to maturity implied by (i) the yields reported, as of 10:00 a.m. (New York City
time) on the Business Day next preceding the Settlement Date with respect to such Called 

  
 24 

 
Principal, for actively traded U.S. Treasury securities having a maturity equal to the Remaining Average Life of such Called Principal as of such Settlement Date on the display designated as
“Page PX1” on Bloomberg Financial Markets (“Bloomberg”) (or, if Bloomberg shall cease to report such yields on Page PX1 or shall cease to be PIM’s customary source of information for calculating make-whole amounts on
privately placed notes, then such source as is then PIM’s customary source of such information), or if such yields shall not be reported as of such time or the yields reported as of such time shall not be ascertainable, (ii) the Treasury
Constant Maturity Series Yields reported, for the latest day for which such yields shall have been so reported as of the second Business Day next preceding the Settlement Date with respect to such Called Principal, in Federal Reserve Statistical
Release H.15 (519) (or any comparable successor publication) for actively traded U.S. Treasury securities having a constant maturity equal to the Remaining Average Life of such Called Principal as of such Settlement Date. 

In the case of each determination under clause (i) or clause (ii), as the case may be, of the preceding paragraph, such implied
yield shall be determined, if necessary, by (a) converting U.S. Treasury bill quotations to bond-equivalent yields in accordance with accepted financial practice, and (b) interpolating linearly between (1) the actively traded U.S.
Treasury security with the maturity closest to and greater than the Remaining Average Life of such Called Principal, and (2) the actively traded U.S. Treasury security with the maturity closest to and less than the Remaining Average Life of
such Called Principal. The Reinvestment Yield shall be rounded to the number of decimal places as appears in the interest rate of the applicable Note. 
 “Remaining Average Life” means, with respect to any Called Principal, the number of years (calculated to the nearest one-twelfth year) obtained by dividing (i) such Called Principal
into (ii) the sum of the products obtained by multiplying (a) the principal component of each Remaining Scheduled Payment with respect to such Called Principal by (b) the number of years (calculated to the nearest one-twelfth year)
that will elapse between the Settlement Date with respect to such Called Principal and the scheduled due date of such Remaining Scheduled Payment. 
 “Remaining Scheduled Payments” means, with respect to the Called Principal of any Note, all payments of such Called Principal and interest thereon that would be due after the Settlement
Date with respect to such Called Principal if no payment of such Called Principal were made prior to its scheduled due date; provided that if such Settlement Date is not a date on which interest payments are due to be made under the terms of
the Notes, then the amount of the next succeeding scheduled interest payment will be reduced by the amount of interest accrued to such Settlement Date and required to be paid on such Settlement Date pursuant to Section 8.2 or Section 12.1.

 “Settlement Date” means, with respect to the Called Principal of any Note, the date on which such Called
Principal is to be prepaid pursuant to Section 8.2, or has become or is declared to be immediately due and payable pursuant to Section 12.1, as the context requires. 

 

	9	AFFIRMATIVE COVENANTS 

 The Company covenants that during the Issuance Period and for so long thereafter as any of the Notes are outstanding or any amounts owing under the Transaction Documents remain unpaid: 

  
 25 

 9.1 Compliance with Law. Without limiting Section 10.8, the Company will,
and will cause each of its Subsidiaries to, comply with all laws, ordinances or governmental rules or regulations to which each of them is subject, including, without limitation, ERISA, the USA Patriot Act, Environmental Laws and the other laws and
regulations referred to in Section 5.16, and will obtain and maintain in effect all licenses, certificates, permits, franchises and other governmental authorizations necessary to the ownership of their respective properties or to the conduct of
their respective businesses, in each case to the extent necessary to ensure that non-compliance with such laws, ordinances or governmental rules or regulations or failures to obtain or maintain in effect such licenses, certificates, permits,
franchises and other governmental authorizations could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. 
 9.2 Insurance. The Company will, and will cause each of its Subsidiaries to, maintain, with financially sound and reputable insurers, insurance with respect to their respective properties
and businesses against such casualties and contingencies, of such types, on such terms and in such amounts (including deductibles, co-insurance and self-insurance, if adequate reserves are maintained with respect thereto) as is customary in the case
of entities of established reputations engaged in the same or a similar business and similarly situated. 
 9.3
Maintenance of Properties. Subject to Sections 10.2 and 10.3, the Company will, and will cause each of its Subsidiaries to, maintain and keep, or cause to be maintained and kept, their respective properties in good repair, working order and
condition (other than ordinary wear and tear), so that the business carried on in connection therewith may be properly conducted at all times, provided that this Section shall not prevent the Company or any Subsidiary from discontinuing the
operation and the maintenance of any of its properties if such discontinuance is desirable in the conduct of its business and the Company has concluded that such discontinuance could not, individually or in the aggregate, reasonably be expected to
have a Material Adverse Effect. 
 9.4 Payment of Taxes and Claims. The Company will, and will cause each of its
Subsidiaries to, file all tax returns required to be filed in any jurisdiction and to pay and discharge all taxes shown to be due and payable on such returns and all other taxes, assessments, governmental charges, or levies imposed on them or any of
their properties, assets, income or franchises, to the extent the same have become due and payable and before they have become delinquent and all claims for which sums have become due and payable that have or might become a Lien on properties or
assets of the Company or any Subsidiary, provided that neither the Company nor any Subsidiary need pay any such tax, assessment, charge, levy or claim if (i) the amount, applicability or validity thereof is contested by the Company or
such Subsidiary on a timely basis in good faith and in appropriate proceedings, and the Company or such Subsidiary has established adequate reserves therefor in accordance with GAAP on the books of the Company or such Subsidiary, or (ii) the
nonpayment of all such taxes, assessments, charges, levies and claims in the aggregate could not reasonably be expected to have a Material Adverse Effect. 
 9.5 Maintenance of Existence, Etc. Subject to Section 10.2, the Company will at all times preserve and keep in full force and effect its corporate existence. Subject to
Section 10.2 and Section 10.3, the Company will at all times preserve and keep in full force and effect the 

  
 26 

 
corporate or similar existence of each of its Subsidiaries (unless merged into the Company or a Wholly-Owned Subsidiary) and all rights and franchises of the Company and its Subsidiaries unless,
in the good faith judgment of the Company, the termination of or failure to preserve and keep in full force and effect such existence, right or franchise could not, individually or in the aggregate, have a Material Adverse Effect. 

9.6 Books and Records. The Company will, and will cause each of its Subsidiaries to, maintain proper books of record and
account in conformity with GAAP and all applicable requirements of any Governmental Authority having legal or regulatory jurisdiction over the Company or such Subsidiary, as the case may be. 

9.7 Information Required by Rule 144A. The Company covenants that it will, upon the request of the holder of any Note,
provide such holder, and any qualified institutional buyer designated by such holder, such financial and other information as such holder may reasonably determine to be necessary in order to permit compliance with the information requirements of
Rule 144A under the Securities Act in connection with the resale of Notes, except at such times as the Company is subject to and in compliance with the reporting requirements of section 13 or 15(d) of the Exchange Act. For the purpose of this
Section 9.7, the term “qualified institutional buyer” shall have the meaning specified in Rule 144A under the Securities Act. 
 9.8 Subsequent Guarantors; Release of Guarantors. (a) Concurrent with such time as any Person shall become obligated under a Guarantee of the credit facilities under the Bank Credit
Agreement, the Company will cause such Person to (i) execute and deliver a Joinder to Multiparty Guaranty, and (ii) deliver to each holder of Notes an opinion of counsel (as to the due organization, valid existence and good standing of
such Person; the power and authority and due authorization of such Person to execute, deliver and perform its obligations under each such Transaction Document; and the enforceability against such Person of its obligations under each such Transaction
Document) and a certificate accompanying authorizing resolutions and corporate or similar documents of such Person, each of foregoing in form and substance satisfactory to the Required Holders. 

(b) If any Subsidiary Guarantor ceases to be required to provide or maintain a Guarantee of the credit facilities under the Bank Credit
Agreement and if, after giving effect to the release of such Subsidiary Guarantor of its obligations under the Multiparty Guaranty, no Default or Event of Default would exist, then the Company may deliver to PIM a certificate of a Responsible
Officer to both such effects and, upon the later of (i) such delivery and (ii) concurrently with such time as that Subsidiary Guarantor has been released from all of its obligations under its Guarantee of the credit facilities under the
Bank Credit Agreement, that Subsidiary Guarantor automatically shall be released from all of its obligations under the Multiparty Guaranty, without further approval of or action by any holder of any Notes. 

 

	10	NEGATIVE COVENANTS. 

 The Company covenants that, during the Issuance Period and for so long thereafter as any of the Notes are outstanding or any amounts owing under the Transaction Documents remain unpaid: 

  
 27 

 10.1 Financial Covenants. 

(a) Minimum Tangible Net Worth. The Company will not permit Tangible Net Worth, calculated as of the last day of
each fiscal quarter, to be less than the sum of (i) $228,968,000, plus (ii) 25% of the Net Income (but only if a positive number) for each fiscal quarter ended subsequent to December 31, 2010, plus (iii) 90% of the net cash
proceeds from the issuance of the Company’s capital stock after December 31, 2010. 
 (b) Leverage
Ratio. The Company will not permit the ratio, calculated as of the last day of each fiscal quarter, of (i) Funded Debt as of such date to (ii) EBITDA for the period of four consecutive fiscal quarters of the Company ended as of such
date, to be greater than 2.50 to 1.00; provided, that upon amendment or replacement (or similar event) of the Bank Credit Agreement such that the leverage ratio cap thereunder (the “Amended Bank Leverage Ratio”) shall be
increased beyond 2.50:1.00, the maximum ratio of Funded Debt to EBITDA under this Section 10.1(b) automatically shall be amended, without further action of any party, to match such increased leverage ratio for so long as it is effective under
the Bank Credit Agreement, but (x) only to the extent such increased leverage ratio does not exceed 2.75:1.00, and (y) only if the Amended Bank Leverage Ratio (including all defined terms used in the determination thereof) is, at such time
and at all times thereafter, determined in all respects on a substantively identical basis to the determination of the leverage ratio under this Section 10.1(b) (including all definitions used in the determination thereof); provided,
further, that, notwithstanding the provisions of Section 22.3(c), the ratio calculated pursuant to this Section 10.1(b) shall be calculated including or excluding, as the case may be, the effect of any assets or businesses that have
been acquired or Transferred by the Company or any of its Subsidiaries pursuant to the terms hereof (including through mergers or consolidations) and giving effect to such permitted acquisition or Transfer, as the case may be, as if it had occurred
on the first day of such four fiscal quarter period. 
 For purposes of this Section 10.1(b), Funded Debt
shall exclude Funded Debt created under the Multiparty Guaranty or under a Guarantee of the obligations of the Company under the Bank Credit Agreement or the Sweep. 

(c) Consolidated Fixed Charge Coverage Ratio. The Company will not permit the ratio, calculated as of the last day
of each fiscal quarter, of (i) EBITDA minus the provision for income taxes for the period of four consecutive fiscal quarters of the Company ended as of such date, to (ii) Fixed Charges calculated as of such date, to be less than
2.50:1.00. 
 10.2 Merger and Consolidation; Transfer of Substantially All Assets. The Company will not, and will
not permit any Material Subsidiary to, consolidate or merge with or into, or Transfer all or substantially all of its assets to, any other Person, except that, so long as no Default or Event of Default has occurred and is continuing or would
result from any such event: 
 (a) any Subsidiary may consolidate or merge with or into the Company,
provided that the Company is the continuing or surviving corporation; 

  
 28 

 (b) any Subsidiary may consolidate or merge with or into any other
wholly-owned Subsidiary or Material Subsidiary, provided that such wholly-owned Subsidiary or Material Subsidiary is the continuing or surviving corporation; and 

(c) the Company or a Subsidiary may acquire another entity in a consensual, negotiated transaction that is structured as a
merger with such other entity if the Company has furnished to the holders of Notes a written statement certified by a Responsible Officer demonstrating, in reasonable detail, that after giving effect to the consummation of such transaction, the
Company and its Subsidiaries will remain in compliance with each of the financial tests set forth in Section 10.1. 

10.3 Transfer of Assets. The Company will not and will not permit any Material Subsidiary to, directly or indirectly,
Transfer any of its assets unless, after giving effect to such proposed Transfer, the Annual Percentage of Assets so Transferred is equal to or less than 10%, and the Cumulative Percentage of Assets so Transferred is equal to or less than 30%;
provided that the following Transfers shall not be taken into account for purposes of this Section 10.3: 
 (a) Transfers made in the ordinary course of business; 
 (b) any
Transfer of assets from the Company or any Material Subsidiary to the Company or any Subsidiary (including any Person which immediately following such Transfer becomes a Subsidiary); 

(c) Transfers of any surplus, obsolete, redundant or worn-out assets not required for the efficient operations of the
transferor (each to be determined by the Company or such Subsidiary in its reasonable judgment); 
 (d) Transfers
of cash for purposes not otherwise prohibited by this Agreement and on arm’s-length terms; and 
 (e) any
other Transfer for fair market value to the extent that the net proceeds of such Transfer (or an amount equal thereto) are or were used within 365 days before or after the date thereof for investment in or the purchase, acquisition, development,
redevelopment or construction of assets or businesses which are to be used or useful in the business of the Company or any Material Subsidiary (or the payment of Indebtedness incurred in relation to the same, so long as such Indebtedness was
incurred within 365 days before or after the date of the Transfer in question). 
 10.4 Nature of Business. The
Company will not, and will not permit any of its Material Subsidiaries to, materially change the nature of its business from those conducted by the Company and its Subsidiaries on the date hereof, or any business related or incidental thereto or
engaged in by lessors generally. 
 10.5 Liens. Neither the Company nor any of its Material Subsidiaries shall
mortgage, pledge, grant, assume or permit to exist any Lien on property of the Company or any Material Subsidiary now or hereafter acquired, except: 

  
 29 

 (a) Liens in existence on the date hereof and disclosed on Schedule
10.5 or any Lien which replaces such a Lien, provided that the principal amount of the indebtedness secured by the replacing Lien does not exceed the principal amount at the time of replacement of the existing Lien, or cover property
other than the property covered by the existing Lien; 
 (b) Liens of carriers, warehousemen, mechanics,
landlords, materialmen, suppliers, tax, assessments, other governmental charges and other like Liens arising in the ordinary course of business securing obligations that are not incurred in connection with the obtaining of any advance or credit and
which are not overdue or are subject to a Good Faith Contest; 
 (c) Liens arising in connection with
workmen’s compensation, unemployment insurance, appeal and release bonds and progress payments under government contracts; 
 (d) the giving, simultaneously with or within 90 days after the acquisition or construction of real property or tangible personal property, of any purchase money Lien (including vendors’ rights under
purchase contracts under agreements whereby title is retained for the purpose of securing the purchase price thereof) on real property or tangible personal property hereafter acquired or constructed and not heretofore owned by the Company or any
Subsidiary, or the acquiring hereafter of real property or personal tangible property not heretofore owned by the Company or any Subsidiary subject to any then existing Lien (whether or not assumed), provided that (a) in each such case
such Lien is limited to such acquired or constructed real or tangible personal property, and (b) the Company is and remains in compliance with Section 10.6; 

(e) judgment Liens in existence less than 30 days after the entry thereof or with respect to which execution has been
stayed or the payment of which is covered in full by insurance; 
 (f) Liens arising from Real Property Debt,
provided that the Company is and remains in compliance with Section 10.6; 
 (g) Liens on deposit
accounts, securities accounts and the contents thereof, arising in favor of the financial institutions at which such accounts are located and arising pursuant to operation of law, and Liens on deposit accounts, securities accounts and the contents
thereof to secure fees or costs related to the maintenance of such accounts pursuant to such financial institution’s standard terms and conditions of account (and not securing any other Indebtedness), arising in favor of the financial
institutions at which such accounts are located; 
 (h) Liens created by or resulting from any litigation or
legal proceeding which is effectively stayed while the underlying claims are being contested in good faith by appropriate proceedings and with respect to which the Company or applicable Subsidiary has established adequate reserves on its books in
accordance with GAAP; 
 (i) other Liens securing Indebtedness, provided that the Company is and remains
in compliance with Section 10.6; 

  
 30 

 (j) minor encumbrances, covenants, easements or reservations, or for
rights-of-way, utilities and other similar purposes or zoning and other restrictions as to the use of real properties, minor survey exceptions and the like, provided that the aggregate of such Liens do not materially detract from the value of
such property; and 
 (k) Liens securing Indebtedness of the Credit Parties arising pursuant to the Bank Credit
Agreement and the Loan Documents (as defined in the Bank Credit Agreement as of the date hereof), provided that the Indebtedness of the Credit Parties under the Transaction Documents is concurrently secured equally and ratably pursuant to
documents satisfactory to the Required Holders and an intercreditor agreement satisfactory to the Required Holders is concurrently entered into. 
 10.6 Priority Debt. The Company will not permit Priority Debt at any time to exceed $30,000,000. 
 10.7 Related Party Transactions. The Company will not, and will not permit any Material Subsidiary to, directly or indirectly, purchase, acquire or lease any property from, or sell, transfer
or lease any property to, pay or agree to pay any management, advisory, consulting or other fees to, or otherwise deal with, in the ordinary course of business or otherwise, any Related Party other than on fair and reasonable terms and conditions at
least as favorable to the Company or such Subsidiary as those that would be obtained through an arm’s-length negotiation with an unaffiliated third party. 
 10.8 Terrorism Sanctions Regulations. The Company will not and will not permit any Affiliated Entity to (a) become an OFAC Listed Person, or (b) have any investments in, or engage
in any dealings or transactions with, any Blocked Person. 
  

	11	EVENTS OF DEFAULT. 

 An “Event of Default” shall exist if any of the following conditions or events shall occur and be continuing at a time when any Note is outstanding, and a “Non-Compliance
Event” shall exist if any of the following conditions or events shall occur and be continuing and no Note is outstanding: 
 (a) the Company defaults in the payment of any principal or Make-Whole Amount, if any, on any Note when the same becomes due and payable, whether at maturity or at a date fixed for prepayment or by
declaration or otherwise, provided that such failure shall not constitute an Event of Default if it occurs solely from any technical or administrative difficulty relating solely to the transfer of such amount and such failure is remedied
within five Business Days after the due date for payment; or 
 (b) the Company defaults in the payment of any
interest on any Note for more than five Business Days after the same becomes due and payable; or 
 (c) the
Company defaults in the performance of or compliance with any term contained in Sections 7.3(a), 9.8, 10.1, 10.2, 10.3, 10.5 or 10.6; or 

  
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 (d) any Credit Party defaults in the performance of or compliance with any
term contained herein (other than those referred to in Sections 11(a), (b) and (c)) or in any other Transaction Document and such default is not remedied within 30 days after the earlier of (i) a Responsible Officer obtaining actual
knowledge of such default, and (ii) the Company receiving written notice of such default from any holder of a Note (any such written notice to be identified as a “notice of default” and to refer specifically to this
Section 11(d)); or 
 (e) any representation or warranty made in writing by or on behalf of any Credit Party
or by any officer of any Credit Party in this Agreement or in any other Transaction Document or in any writing furnished in connection with the transactions contemplated hereby or thereby proves to have been false or incorrect in any material
respect on the date as of which made; or 
 (f) (i) the Company or any Material Subsidiary is in default (as
principal or as guarantor or other surety) in the payment of any principal of or premium or make-whole amount or interest on any Indebtedness that is outstanding in an aggregate principal amount of at least $10,000,000 beyond any period of grace
provided with respect thereto, or (ii) the Company or any Material Subsidiary is in default in the performance of or compliance with any term of any evidence of any Indebtedness that is outstanding in an aggregate principal amount of at least
$10,000,000 or of any mortgage, indenture or other agreement relating thereto or any other condition exists, and as a consequence of such default or condition such Indebtedness has become, or has been declared (or one or more Persons are entitled to
declare such Indebtedness to be), due and payable before its stated maturity or before its regularly scheduled dates of payment, or (iii) as a consequence of the occurrence or continuation of any event or condition (other than the passage of
time or the right of the holder of Indebtedness to convert such Indebtedness into equity interests), (x) the Company or any Material Subsidiary has become obligated to purchase or repay Indebtedness that is outstanding in an aggregate principal
amount of at least $10,000,000 before its regular maturity or before its regularly scheduled dates of payment, or (y) one or more Persons have the right to require the Company or any Material Subsidiary so to purchase or repay such
Indebtedness. 
 (g) the Company or any Subsidiary (i) is generally not paying, or admits in writing its
inability to pay, its debts as they become due, (ii) files, or consents by answer or otherwise to the filing against it of, a petition for relief or reorganization or arrangement or any other petition in bankruptcy, for liquidation or to take
advantage of any bankruptcy, insolvency, reorganization, moratorium or other similar law of any jurisdiction (in each case, other than in connection with a solvent liquidation of any Subsidiary), (iii) makes an assignment for the benefit of its
creditors, (iv) consents to the appointment of a custodian, receiver, trustee or other officer with similar powers with respect to it or with respect to any substantial part of its property (other than in connection with a solvent liquidation
of any Subsidiary), (v) is adjudicated as insolvent or to be liquidated (other than in connection with a solvent liquidation of any Subsidiary), or (vi) takes corporate action for the purpose of any of the foregoing (other than in
connection with a solvent liquidation of any Subsidiary); or 
 (h) a court or Governmental Authority of
competent jurisdiction enters an order appointing, without consent by the Company or any of its Subsidiaries, a custodian, receiver, trustee or other officer with similar powers with respect to it or with respect to any

  
 32 

 
substantial part of its property, or constituting an order for relief or approving a petition for relief or reorganization or any other petition in bankruptcy or for liquidation or to take
advantage of any bankruptcy or insolvency law of any jurisdiction, or ordering the dissolution, winding-up or liquidation of the Company or any of its Subsidiaries, or any such petition shall be filed against the Company or any of its Subsidiaries
and such petition shall not be dismissed within 60 days; or 
 (i) a final judgment or judgments for the payment
of money aggregating in excess of $10,000,000 are rendered against one or more of the Company and its Subsidiaries and which judgments are not, within 60 days after entry thereof, bonded, discharged or stayed pending appeal, or are not discharged
within 60 days after the expiration of such stay; 
 (j) (i) any Plan shall fail to satisfy the minimum
funding standards of the Pension Funding Rules for any plan year or part thereof or a waiver of such standards or extension of any amortization period is sought or granted under the Pension Funding Rules, (ii) a notice of intent to
terminate any Plan shall have been or is reasonably expected to be filed with the PBGC or the PBGC shall have instituted proceedings under ERISA section 4042 to terminate or appoint a trustee to administer any Plan or the PBGC shall have
notified any Credit Party or any ERISA Affiliate that a Plan may become a subject of any such proceedings, (iii) the aggregate “amount of unfunded benefit liabilities” (within the meaning of section 4001(a)(18) of ERISA) under all
Plans, determined in accordance with Title IV of ERISA, shall exceed $10,000,000, (iv) any Credit Party or any ERISA Affiliate shall have incurred or is reasonably expected to incur any liability pursuant to Title I or IV of ERISA or the
penalty or excise tax provisions of the Code relating to employee benefit plans, (v) any Credit Party or any ERISA Affiliate withdraws from any Multiemployer Plan, or (vi) any Credit Party or any Subsidiary establishes or amends any
employee welfare benefit plan that provides post-employment welfare benefits in a manner that would increase the liability of any Credit Party or any Subsidiary thereunder; and any such event or events described in clauses (i) through
(vi) above, either individually or together with any other such event or events, could reasonably be expected to have a Material Adverse Effect; or 
 (k) any of the Transaction Documents shall cease for any reason to be in full force and effect or any Credit Party shall purport to disavow its obligations thereunder, shall declare that it does not have
any further obligation thereunder or shall contest the validity or enforceability thereof. 
 As used in Section 11(j), the terms
“employee benefit plan” and “employee welfare benefit plan” shall have the respective meanings assigned to such terms in Section 3 of ERISA. 

 

	12	REMEDIES ON DEFAULT, ETC. 

12.1 Acceleration. 
 (a) If an Event of Default with respect to any Credit Party described in Section 11(g) or (h) (other than an Event of Default described in clause (i) of Section 11(g) or described in
clause (vi) of Section 11(g) by virtue of the fact that such clause encompasses clause 

  
 33 

 
(i) of Section 11(g)) has occurred, all the Notes then outstanding shall automatically become immediately due and payable. 

(b) If any Event of Default described in Section 11(a) or (b) has occurred and is continuing, any holder or
holders of Notes at the time outstanding affected by such Event of Default may at any time, at its or their option, by notice or notices to the Company, declare all the Notes held by it or them to be immediately due and payable. 

(c) If any other Event of Default has occurred and is continuing, any holder or holders of a majority in principal amount
of the Notes of any Series at the time outstanding may at any time at its or their option, by notice or notices to the Company, declare all the Notes of such Series then outstanding to be immediately due and payable. 

Upon any Notes becoming due and payable under this Section 12.1, whether automatically or by declaration, such Notes will forthwith mature and the
entire unpaid principal amount of such Notes, plus (x) all accrued and unpaid interest thereon (including, but not limited to, interest accrued thereon at the Default Rate) and (y) the Make-Whole Amount determined in respect of such
principal amount (to the full extent permitted by applicable law), shall all be immediately due and payable, in each and every case without presentment, demand, protest or further notice, all of which are hereby waived. The Company acknowledges, and
the parties hereto agree, that each holder of a Note has the right to maintain its investment in the Notes free from prepayment by the Company (except as herein specifically provided for) and that the provision for payment of a Make-Whole Amount by
the Company in the event that the Notes are prepaid or are accelerated as a result of an Event of Default, is intended to provide compensation for the deprivation of such right under such circumstances. 

12.2 Other Remedies. 

If any Default or Event of Default has occurred and is continuing, and irrespective of whether any Notes have become or have been declared immediately
due and payable under Section 12.1, the holder of any Note at the time outstanding may proceed to protect and enforce the rights of such holder by an action at law, suit in equity or other appropriate proceeding, whether for the specific
performance of any agreement contained herein or in any Note, or for an injunction against a violation of any of the terms hereof or thereof, or in aid of the exercise of any power granted hereby or thereby or by law or otherwise. 

12.3 Rescission. 
 At
any time after any Notes of any Series have been declared due and payable pursuant to clause (b) or (c) of Section 12.1, the holders of not less than a majority in principal amount of the Notes of such Series then outstanding, by
written notice to the Company, may rescind and annul any such declaration and its consequences if (a) the Company has paid all overdue interest on the Notes of such Series, all principal of and Make-Whole Amount, if any, on any Notes of such
Series that are due and payable and are unpaid other than by reason of such declaration, and all interest on such overdue principal and Make-Whole Amount, if any, and (to the extent permitted by applicable law) any overdue interest in respect of the
Notes of such Series, at the Default Rate, (b) neither the Company nor any other Person shall have paid any amounts which have 

  
 34 

 
become due solely by reason of such declaration, (c) all Events of Default and Defaults, other than non-payment of amounts that have become due solely by reason of such declaration, have
been cured or have been waived pursuant to Section 17, and (d) no judgment or decree has been entered for the payment of any monies due pursuant hereto or to the Notes. No rescission and annulment under this Section 12.3 will extend
to or affect any subsequent Event of Default or Default or impair any right consequent thereon. 
 12.4 No Waivers or
Election of Remedies, Expenses, etc. 
 No course of dealing and no delay on the part of any holder of any Note in exercising any right,
power or remedy shall operate as a waiver thereof or otherwise prejudice such holder’s rights, powers or remedies. No right, power or remedy conferred by this Agreement, any Note or any other Transaction Document upon any holder thereof shall
be exclusive of any other right, power or remedy referred to herein or therein or now or hereafter available at law, in equity, by statute or otherwise. Without limiting the obligations of the Company under Section 15, the Company will pay to
the holder of such Note on demand such further amount as shall be sufficient to cover all costs and expenses of such holder incurred in any enforcement or collection under this Section 12, including, without limitation, reasonable
attorneys’ fees, expenses and disbursements. 
  

	13	REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES. 

13.1 Registration of Notes. 
 The Company shall keep at its principal executive office a register for the registration and registration of transfers of Notes. The name and address of each holder of one or more Notes, each transfer
thereof and the name and address of each transferee of one or more Notes shall be registered in such register. Prior to due presentment for registration of transfer, the Person in whose name any Note shall be registered shall be deemed and treated
as the owner and holder thereof for all purposes hereof, and the Company shall not be affected by any notice or knowledge to the contrary. The Company shall give to any holder of a Note that is an Institutional Investor promptly upon request
therefor, a complete and correct copy of the names and addresses of all registered holders of Notes. 
 13.2 Transfer and
Exchange of Notes; No Transfers to Competitors. 
 (a) Upon surrender of any Note to the Company at the address and to the
attention of the designated officer (all as specified in Section 18(iii)), for registration of transfer or exchange (and in the case of a surrender for registration of transfer accompanied by a written instrument of transfer duly executed by
the registered holder of such Note or such holder’s attorney duly authorized in writing and accompanied by the relevant name, address and other information for notices of each transferee of such Note or part thereof), within ten Business Days
thereafter, the Company shall execute and deliver, at the Company’s expense (except as provided below), one or more replacement Notes (as requested by the holder thereof) in exchange therefor, in an aggregate principal amount equal to the
unpaid principal amount of the surrendered Note. Each such replacement Note shall be payable to such Person as such holder may request and shall be substantially in the form of the Note so surrendered. Each such replacement Note shall be dated

  
 35 

 
and bear interest from the date to which interest shall have been paid on the surrendered Note or dated the date of the surrendered Note if no interest shall have been paid thereon. The Company
may require payment of a sum sufficient to cover any stamp tax or governmental charge imposed in respect of any such transfer of Notes. Notes shall not be transferred in denominations of less than $1,000,000; provided that if necessary to
enable the registration of transfer by a holder of its entire holding of Notes of a Series, one Note may be in a denomination of less than $1,000,000. Any transferee, by its acceptance of a Note registered in its name (or the name of its nominee),
shall be deemed to have made the representation set forth in Section 6.2. 
 (b) Without limiting the foregoing, each
Purchaser and each subsequent holder of any Note severally agrees that it will not, directly or indirectly, resell any Notes purchased by it to a Person which is a Competitor (it being understood that such Purchaser shall advise any broker or
intermediary acting on its behalf that such resale to a Competitor is limited hereby). The Company shall not be required to recognize any sale or other transfer of a Note to a Competitor and no such transfer shall confer any rights hereunder upon
such transferee. 
 13.3 Replacement of Notes. 
 Upon receipt by the Company at the address and to the attention of the designated officer (all as specified in Section 18(iii)) of evidence reasonably satisfactory to it of the ownership of and the
loss, theft, destruction or mutilation of any Note (which evidence shall be, in the case of an Institutional Investor, notice from such Institutional Investor of such ownership and such loss, theft, destruction or mutilation), and 

(a) in the case of loss, theft or destruction, of indemnity reasonably satisfactory to it (provided that if the
holder of such Note is, or is a nominee for, an original Purchaser or another holder of a Note with a minimum net worth of at least $5,000,000 or a Qualified Institutional Buyer, such Person’s own unsecured agreement of indemnity shall be
deemed to be satisfactory), or 
 (b) in the case of mutilation, upon surrender and cancellation thereof,

 within ten Business Days thereafter, the Company at its own expense shall execute and deliver, in lieu thereof, a replacement Note, dated and
bearing interest from the date to which interest shall have been paid on such lost, stolen, destroyed or mutilated Note or dated the date of such lost, stolen, destroyed or mutilated Note if no interest shall have been paid thereon. 

 

	14	PAYMENTS ON NOTES. 

 14.1 Place of Payment. 
 Subject to Section 14.2, payments of principal, Make-Whole
Amount, if any, and interest becoming due and payable on the Notes shall be made in New York, New York at the principal office of JPMorgan Chase Bank in such jurisdiction. The holder of a Note may at any time, by notice to the Company, change the
place of payment of the Notes so long as such place of payment shall be either the principal office of the Company in such jurisdiction or the principal office of a bank or trust company in such jurisdiction. 

  
 36 

 14.2 Home Office Payment. 
 So long as any Purchaser or its nominee shall be the holder of any Note, and notwithstanding anything contained in Section 14.1 or in such Note to the contrary, the Company will pay all sums becoming
due on such Note for principal, Make-Whole Amount, if any, and interest by the method and at the address specified for such purpose, in the case of the Series A Notes, on the Purchaser Schedule Relating to Series A Notes attached hereto as
Schedule A and, in the case of any Shelf Note, on the Purchaser Schedule attached to the Confirmation of Acceptance with respect to such Note, or by such other method or at such other address as such Purchaser shall have from time to time
specified to the Company in writing for such purpose, without the presentation or surrender of such Note or the making of any notation thereon, except that upon written request of the Company made concurrently with or reasonably promptly after
payment or prepayment in full of any Note, such Purchaser shall surrender such Note for cancellation, reasonably promptly after any such request, to the Company at its principal executive office or at the place of payment most recently designated by
the Company pursuant to Section 14.1. Prior to any sale or other disposition of any Note held by a Purchaser or its nominee such Purchaser will, at its election, either endorse thereon the amount of principal paid thereon and the last date to
which interest has been paid thereon or surrender such Note to the Company in exchange for a replacement Note or Notes pursuant to Section 13.2. The Company will afford the benefits of this Section 14.2 to any Institutional Investor that
is the direct or indirect transferee of any Note purchased by a Purchaser under this Agreement and that has made the same agreement relating to such Note as each Purchaser has made in this Section 14.2. 

  
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	15	EXPENSES, ETC. 

 15.1 Transaction Expenses. 
 Whether or not the transactions contemplated hereby are
consummated, the Company will pay all costs and expenses (including reasonable attorneys’ fees of a special counsel and, if reasonably required by the Required Holders, local or other counsel) incurred by PIM, the Purchasers or any holder of a
Note in connection with such transactions and in connection with any amendments, waivers or consents under or in respect of this Agreement, the Notes or any of the other Transaction Documents (whether or not such amendment, waiver or consent becomes
effective), including, without limitation: (a) the costs and expenses incurred in enforcing or defending (or determining whether or how to enforce or defend) any rights under this Agreement, the Notes or any of the other Transaction Documents
or in responding to any subpoena or other legal process or informal investigative demand issued in connection with this Agreement, the Notes or any of the other Transaction Documents, or by reason of being a holder of any Note, and (b) the
costs and expenses, including financial advisors’ fees, incurred in connection with the insolvency or bankruptcy of the Company, any Subsidiary Guarantor or any Subsidiary or in connection with any work-out or restructuring of the transactions
contemplated hereby, by the Notes and the other Transaction Documents. The Company will pay, and will save PIM, each Purchaser and each other holder of a Note harmless from, all claims in respect of any fees, costs or expenses, if any, of brokers
and finders. 
 15.2 Survival. 
 The obligations of the Company under this Section 15 will survive the payment or transfer of any Note, the enforcement, amendment or waiver of any provision of this Agreement or the Notes, and the
termination of this Agreement. 
  

	16	SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE
AGREEMENT. 

 All representations and warranties contained herein or in any of the other Transaction Documents
shall survive the execution and delivery of this Agreement, the Notes and the other Transaction Documents, the purchase or transfer by any Purchaser of any Note or portion thereof or interest therein and the payment of any Note, and may be relied
upon by any subsequent holder of a Note, regardless of any investigation made at any time by or on behalf of any Purchaser or any other holder of a Note. All statements contained in any certificate or other instrument delivered by or on behalf of
any Credit Party or any Subsidiary pursuant to this Agreement or any of the other Transaction Documents shall be deemed representations and warranties of such Credit Party or Subsidiary under this Agreement or such other Transaction Document.
Subject to the preceding sentence, this Agreement (including the Multiparty Guaranty), the Notes and the other Transaction Documents embody the entire agreement and understanding among PIM, the Purchasers and the Credit Parties and supersede all
prior agreements and understandings relating to the subject matter hereof. 

  
 38 

	17	AMENDMENT AND WAIVER. 

 17.1 Requirements. 
 This Agreement, the Notes and the other Transaction Documents may be
amended, and any Credit Party may take any action herein or therein prohibited, or omit to perform any act herein required to be performed by it, if the Credit Parties shall obtain the written consent to such amendment, action or omission to act, of
the Required Holder(s) of the Notes of each Series except that, (i) with the written consent of the holders of all Notes of a particular Series, and if an Event of Default shall have occurred and be continuing, of the holders of all
Notes of all Series, at the time outstanding (and not without such written consents), the Notes of such Series may be amended or the provisions thereof waived to change the maturity thereof, to change or affect the principal thereof, or to change or
affect the rate or time of payment of interest on or any Make-Whole Amount payable with respect to the Notes of such Series, (ii) without the written consent of the holder or holders of all Notes at the time outstanding, no amendment to or
waiver of the provisions of this Agreement shall change or affect the provisions of Section 12 or this Section 17 insofar as such provisions relate to proportions of the principal amount of the Notes of any Series, or the rights of any
individual holder of Notes, required with respect to any declaration of Notes to be due and payable or with respect to any consent, amendment, waiver or declaration, (iii) with the written consent of PIM (and not without the written consent of
PIM) the provisions of Section 2B may be amended or waived (except insofar as any such amendment or waiver would affect any rights or obligations with respect to the purchase and sale of Notes which shall have become Accepted Notes prior to
such amendment or waiver), and (iv) with the written consent of all of the Purchasers which shall have become obligated to purchase Accepted Notes of any Series (and not without the written consent of all such Purchasers), any of the provisions
of Sections 2B and 4 may be amended or waived insofar as such amendment or waiver would affect only rights or obligations with respect to the purchase and sale of the Accepted Notes of such Series or the terms and provisions of such Accepted Notes.
Each holder of any Note at the time or thereafter outstanding shall be bound by any consent authorized by this Section 17, whether or not such Note shall have been marked to indicate such consent, but any Notes issued thereafter may bear a
notation referring to any such consent. 
 17.2 Solicitation of Holders of Notes. 

(a) Solicitation. The Company will provide each holder of the Notes (irrespective of the amount of Notes then
owned by it) with sufficient information, sufficiently far in advance of the date a decision is required, to enable such holder to make an informed and considered decision with respect to any proposed amendment, waiver or consent in respect of any
of the provisions hereof or of the Notes. The Company will deliver executed or true and correct copies of each amendment, waiver or consent effected pursuant to the provisions of this Section 17 to each holder of outstanding Notes promptly
following the date on which it is executed and delivered by, or receives the consent or approval of, the requisite holders of Notes. 
 (b) Payment. The Company will not directly or indirectly pay or cause to be paid any remuneration, whether by way of supplemental or additional interest, fee or otherwise, or grant any security or
provide other credit support, to any holder of Notes as consideration for or as an inducement to the entering into by any holder of Notes of any waiver or amendment of 

  
 39 

 
any of the terms and provisions hereof unless such remuneration is concurrently paid, or security is concurrently granted or other credit support concurrently provided, on the same terms, ratably
to each holder of Notes then outstanding even if such holder did not consent to such waiver or amendment. 
 17.3 Binding
Effect. etc. 
 Any amendment or waiver consented to as provided in this Section 17 applies equally to all holders of Notes and is
binding upon them and upon each future holder of any Note and upon the Company without regard to whether such Note has been marked to indicate such amendment or waiver. No such amendment or waiver will extend to or affect any obligation, covenant,
agreement, Default or Event of Default not expressly amended or waived or impair any right consequent thereon. No course of dealing between any Credit Party and the holder of any Note nor any delay in exercising any rights hereunder or under any
Note shall operate as a waiver of any rights of any holder of such Note. As used herein, the term “this Agreement” and references thereto shall mean this Agreement as it may from time to time be amended or supplemented. 

17.4 Notes Held by Company, etc. 
 Solely for the purpose of determining whether the holders of the requisite percentage of the aggregate principal amount of Notes or any Series thereof then outstanding have approved or consented to any
amendment, waiver or consent to be given under this Agreement or the Notes or any Series thereof, or have directed the taking of any action provided herein or in the Notes or any Series thereof to be taken upon the direction of the holders of a
specified percentage of the aggregate principal amount of Notes or any Series thereof then outstanding, Notes directly or indirectly owned by any Credit Party or any of its Affiliates shall be deemed not to be outstanding. 

 

	18	NOTICES. 

 All notices and
communications provided for hereunder (other than communications provided for in Section 2) shall be in writing and sent (a) by facsimile if the sender on the same day sends a confirming copy of such notice by a recognized overnight
delivery service (charges prepaid), or (b) by registered or certified mail with return receipt requested (postage prepaid), or (c) by a recognized overnight delivery service (with charges prepaid). Any such notice must be sent: 

(i) if to any Series A Purchaser or its nominee, to such Person at the address specified for such communications in the
Purchaser Schedule Relating to Series A Notes attached hereto as Schedule A and, in the case of a Purchaser of any Shelf Note or its nominee, to such Person at the address specified for such communications in the Purchaser Schedule attached
to the Confirmation of Acceptance with respect to such Shelf Note, or at such other address as such Person or it shall have specified to the Company in writing; 
 (ii) if to any other holder of any Note, to such holder at such address as such other holder shall have specified to the Company in writing; or 

  
 40 

 (iii) if to any Credit Party, to such Credit Party care of the Company, at
its address set forth at the beginning hereof to the attention of the Chief Financial Officer, or at such other address as the Company, shall have specified to the holder of each Note in writing. 

Notices under this Section 18 will be deemed to have been given and received when delivered at the address so specified. Any communication pursuant
to Section 2 shall be made by the method specified for such communication in Section 2, and shall be effective to create any rights or obligations under this Agreement only if, in the case of a telephone communication, an Authorized
Officer of the party conveying the information and of the party receiving the information are parties to the telephone call, and in the case of a facsimile communication, the communication is signed by an Authorized Officer of the party conveying
the information, addressed to the attention of an Authorized Officer of the party receiving the information, and in fact received at the facsimile number that is listed for the party receiving the communication on the Information Schedule or at such
other facsimile number as the party receiving the information shall have specified in writing to the party sending such information. 
  

	19	REPRODUCTION OF DOCUMENTS. 

 This Agreement, and all documents relating hereto, including, without limitation, (a) consents, waivers and modifications that may hereafter be executed, (b) documents received by any Purchaser
on any Closing Day (except the Notes themselves), and (c) financial statements, certificates and other information previously or hereafter furnished to any Purchaser, may be reproduced by such Purchaser by any photographic, photostatic,
electronic, digital or other similar process and such Purchaser may destroy any original document so reproduced. To the extent permitted by applicable law, any such reproduction shall be admissible in evidence as the original itself in any judicial
or administrative proceeding (whether or not the original is in existence and whether or not such reproduction was made by such Purchaser in the regular course of business) and any enlargement, facsimile or further reproduction of such reproduction
shall likewise be admissible in evidence. This Section 19 shall not prohibit any Credit Party, PIM or any holder of Notes from contesting any such reproduction to the same extent that it could contest the original, or from introducing evidence
to demonstrate the inaccuracy of any such reproduction. 
  

	20	MULTIPARTY GUARANTY. 

 The multiparty guaranty under this Section 20 (as amended or otherwise modified from time to time, the “Multiparty Guaranty”) is made jointly and severally by each of the Subsidiary
Guarantors in favor of the Purchasers and their respective successors, assigns and transferees (each of such Persons being referred to herein as a “Beneficiary” and collectively, as the “Beneficiaries”). 

20.1 Unconditional Guaranty. 
 (a) Unconditional Guaranty. 
 Each Subsidiary Guarantor
hereby unconditionally, absolutely and irrevocably guarantees to each of the Beneficiaries the prompt and complete payment when due (whether at stated maturity, by acceleration or otherwise) and performance of all

  
 41 

 
Guaranteed Obligations. The term “Guaranteed Obligations” shall mean all loans, advances, debts, liabilities and obligations for monetary amounts and otherwise from time to time
owing by the Company, in the Company’s capacity as the issuer of Notes, to the Purchasers in connection with this Agreement, the Notes and the other Transaction Documents, whether due or to become due, matured or unmatured, liquidated or
unliquidated, contingent or non-contingent, and all covenants and duties regarding such amounts, of any kind or nature, present or future, arising under or in respect of this Agreement, the Notes or the other Transaction Documents (it being
understood that this term includes all principal, interest (including interest that accrues after the commencement by or against the Company of any action under bankruptcy, reorganization, compromise, arrangement, insolvency, readjustment of debt,
dissolution or liquidation or similar law, whether now or hereafter in effect), the Make-Whole Amount, if any, premium or other prepayment consideration, fees, expenses, costs or other sums (including, without limitation, all fees and disbursements
of any law firm or other external counsel) chargeable to the Company, in the Company’s capacity as the issuer of Notes, under this Agreement, the Notes or the other Transaction Documents). 

(b) Reimbursement of Expenses. 

Each Subsidiary Guarantor also agrees to pay upon demand all costs and expenses (including, without limitation, all fees
and disbursements of any law firm or other external counsel) incurred by any Beneficiary in enforcing any rights under this Multiparty Guaranty. 
 (c) Guaranteed Obligations Unaffected. 
 No payment or
payments made by any other Subsidiary Guarantor or other Credit Party, or by any other guarantor or other Person, or received or collected by any of the Beneficiaries from any other Subsidiary Guarantor or other Credit Party or from any other
guarantor or other Person by virtue of any action or proceeding or any setoff or appropriation or application at any time or from time to time in reduction of or in payment of the Guaranteed Obligations shall be deemed to modify, release or
otherwise affect the liability of each of the Subsidiary Guarantors hereunder which shall, notwithstanding any such payments, remain liable for the Guaranteed Obligations, subject to Section 20.5 below, until the Guaranteed Obligations are paid
in full. 
 (d) Joint and Several Liability. 

All Subsidiary Guarantors and their respective successors and assigns shall be jointly and severally liable for the
payment of the Guaranteed Obligations and the expenses required to be reimbursed to the holders of the Notes pursuant to Section 20.1(b), above, notwithstanding any relationship or contract of co-obligation by or among the Subsidiary Guarantors
or their successors and assigns. 
 (e) Enforcement of Guaranteed Obligations. 

Each Subsidiary Guarantor hereby jointly and severally agrees, in furtherance of the foregoing and not in limitation of
any other right that any Beneficiary may have at 

  
 42 

 
law or in equity against any Subsidiary Guarantor by virtue hereof, that upon the failure of the Company to pay any of the Guaranteed Obligations when and as the same shall become due, whether at
stated maturity, by required prepayment, declaration, acceleration, demand or otherwise (including amounts that would become due but for the operation of the automatic stay under Section 362(a) of the United States Bankruptcy Code, 11 U.S.C.
§ 362(a)), each Subsidiary Guarantor will upon demand pay, or cause to be paid, in cash, the unpaid amount of all Guaranteed Obligations owing to the Beneficiary or Beneficiaries making such demand an amount equal to all of the Guaranteed
Obligations then due to such Beneficiary or Beneficiaries. 
 (f) Tolling of Statute of Limitations.

 Each Subsidiary Guarantor agrees that any payment, performance or other act that tolls any statute of
limitations applicable to the obligations, liabilities and indebtedness of the Company owing to the Beneficiaries under this Agreement, the Notes or any of the other Transaction Documents shall also toll the statute of limitations applicable to such
Subsidiary Guarantor’s liability under this Multiparty Guaranty to the extent permitted by law. 
 (g)
Rights of Contribution. 
 The Company and each Subsidiary Guarantor hereby agree that, to the extent that
a Subsidiary Guarantor shall have paid an amount hereunder to any Beneficiary that is greater than the net value of the benefits received, directly or indirectly, by such paying Subsidiary Guarantor as a result of the issuance and sale of the Notes,
such paying Subsidiary Guarantor shall be entitled to contribution from the Company or any Subsidiary Guarantor that has not paid its proportionate share, based on benefits received as a result of the issuance and sale of the Notes, of the
Guaranteed Obligations. Any amount payable as a contribution under this Section 20.1(g) shall be determined as of the date on which the related payment or distribution is made by the Subsidiary Guarantor seeking contribution, and each of the
Company and the Subsidiary Guarantors acknowledges that the right to contribution hereunder shall constitute an asset of such Subsidiary Guarantor to which such contribution is owed. Notwithstanding the foregoing, the provisions of this
Section 20.1(g) shall in no respect limit the obligations and liabilities of any Subsidiary Guarantor to the Beneficiaries hereunder or under any other Transaction Document, and each Subsidiary Guarantor shall remain liable for the full payment
and performance guaranteed hereunder. Any indebtedness or other obligations of the Company or a Subsidiary Guarantor now or hereafter held by or owing to any Subsidiary Guarantor is hereby subordinated in time and right of payment to all
indebtedness or other obligations of the Company and the Subsidiary Guarantors to any or all of the Beneficiaries under the Notes, this Agreement or any other Transaction Document. 

20.2 Subrogation. 
 Notwithstanding any payment or payments made by any Subsidiary Guarantor hereunder, each Subsidiary Guarantor hereby irrevocably waives, solely with respect to such payment or

  
 43 

 
payments, any and all rights of subrogation to the rights of the Beneficiaries against the Company and, except to the extent otherwise provided in Section 20.1(g), any and all rights of
contribution, reimbursement, assignment, indemnification or implied contract or any similar rights against the Company, any endorser or other guarantor of all or any part of the Guaranteed Obligations, in each case until such time as the Guaranteed
Obligations have been paid in full (subject to Section 20.5 below). If, notwithstanding the foregoing, any amount shall be paid to any Subsidiary Guarantor on account of such subrogation or other rights at any time when all of the Guaranteed
Obligations shall not have been paid in full, such amount shall be held by such Subsidiary Guarantor in trust for the Beneficiaries, segregated from other funds of such Subsidiary Guarantor, and shall, forthwith upon receipt by such Subsidiary
Guarantor, be turned over to each Beneficiary (ratably based on the principal amount outstanding of Notes held by such Beneficiary at such time as a percentage of the aggregate principal amount outstanding of Notes held by all the Beneficiaries at
such time) in the exact form received by such Subsidiary Guarantor (duly endorsed by such Subsidiary Guarantor to such Beneficiary if required), to be applied against the Guaranteed Obligations, whether matured or unmatured, in such order as such
Beneficiary may determine. 
 20.3 Amendments, Etc. with Respect to Guaranteed Obligations. 

Each Subsidiary Guarantor shall remain obligated hereunder notwithstanding that: (a) any demand for payment of any of the Guaranteed
Obligations made by any Beneficiary may be rescinded by such Beneficiary, and any of the Guaranteed Obligations continued; (b) this Multiparty Guaranty, the Guaranteed Obligations, or the liability of any other party upon or for any part of the
Guaranteed Obligations, or any collateral security or guaranty therefor or right of setoff with respect thereto, may, from time to time, in whole or in part, be renewed, extended, amended, modified, accelerated, compromised, waived, surrendered or
released by any Beneficiary or such other party; (c) this Agreement, the Notes, the other Transaction Documents and any other document executed in connection with any of them may be renewed, extended, amended, modified, supplemented or
terminated, in whole or in part; or (d) any guaranty, collateral or right of setoff at any time held by any Person for the payment of any of the Guaranteed Obligations may be sold, exchanged, waived, surrendered or released. When making any
demand hereunder against any Subsidiary Guarantor, each Beneficiary may, but shall be under no obligation to, make a similar demand on any other Credit Party or any other Person, and any failure by such Beneficiary to make any such demand or to
collect any payments from any other Credit Party or any other Person or any release of any such other Credit Party or Person shall not impair or affect the rights and remedies, express or implied, or as a matter of law, of such Beneficiary against
the Subsidiary Guarantors. For the purposes hereof “demand” shall include the commencement and continuance of any legal proceedings. 
 20.4 Guaranty Absolute and Unconditional; Termination. 
 Each Subsidiary
Guarantor waives any and all notice of the creation, renewal, extension or accrual of any of the Guaranteed Obligations and notice of or proof of reliance by any Beneficiary upon this Multiparty Guaranty or acceptance of this Multiparty Guaranty.
This Agreement, the Notes, the other Transaction Documents and the Guaranteed Obligations in respect of any of them, shall conclusively be deemed to have been created, contracted for or incurred in reliance upon this Multiparty Guaranty; and all
dealings between any of the Company 

  
 44 

 
or the Subsidiary Guarantors, on the one hand, and any of the Beneficiaries, on the other, shall likewise conclusively be presumed to have been had or consummated in reliance upon this Multiparty
Guaranty. Each Subsidiary Guarantor waives diligence, presentment, protest, demand for payment and notice of default or nonpayment to or upon any Credit Party or any other guarantor with respect to the Guaranteed Obligations. This Multiparty
Guaranty shall be construed as a continuing, irrevocable, absolute and unconditional guaranty of payment, performance and compliance when due (and not of collection) and is a primary obligation of each Subsidiary Guarantor without regard to
(a) the validity or enforceability of the provisions of this Agreement (other than the Multiparty Guaranty), the Notes, the other Transaction Documents, any of the Guaranteed Obligations or any other guaranty or right of setoff with respect
thereto at any time or from time to time held by any Beneficiary, (b) any defense, setoff or counterclaim (other than a defense of payment or performance) which may at any time be available to or be asserted by any of the Credit Parties against
any Beneficiary, or (c) any other circumstance whatsoever (with or without notice to or knowledge of any Credit Party or guarantor) which constitutes, or might be construed to constitute, an equitable or legal discharge of any Credit Party or
any other guarantor of the Guaranteed Obligations, in bankruptcy or in any other instance (other than payment or performance in full of the Guaranteed Obligations). Each of the Subsidiary Guarantors hereby agrees that it has complete and absolute
responsibility for keeping itself informed of the business, operations, properties, assets, condition (financial or otherwise) of the Company, the other Subsidiary Guarantors, any and all endorsers and any and all guarantors of the Guaranteed
Obligations and of all other circumstances bearing upon the risk of nonpayment of the obligations evidenced by the Notes or the Guaranteed Obligations, and each of the Subsidiary Guarantors further agrees that the Beneficiaries shall have no duty,
obligation or responsibility to advise it of any such facts or other information, whether now known or hereafter ascertained, and each Subsidiary Guarantor hereby waives any such duty, obligation or responsibility on the part of the Beneficiaries to
disclose such facts or other information to such Subsidiary Guarantor. 
 When pursuing its rights and remedies hereunder
against any of the Subsidiary Guarantors, any Beneficiary may, but shall be under no obligation to, pursue such rights and remedies as it may have against any other Credit Party or any other Person under a guaranty of the Guaranteed Obligations or
any right of setoff with respect thereto, and any failure by such Beneficiary to pursue such other rights or remedies or to collect any payments from any such other Credit Party or Person or to realize upon any such guaranty or to exercise any such
right of setoff, or any release of any such other Credit Party or Person or any such guaranty or right of setoff, shall not relieve the Subsidiary Guarantors of any liability hereunder, and shall not impair or affect the rights and remedies, whether
express, implied or available as a matter of law, of each of the Beneficiaries against the Subsidiary Guarantors. This Multiparty Guaranty shall remain in full force and effect until all Guaranteed Obligations shall have been satisfied by payment or
performance in full, upon the occurrence of which this Multiparty Guaranty shall, subject to Section 20.5 below, terminate. 
 20.5 Reinstatement. 
 This Multiparty Guaranty shall continue to be
effective, or be reinstated, as the case may be, if at any time the payment, or any part thereof, of any of the Guaranteed Obligations is rescinded or otherwise must be restored or returned by any Beneficiary in connection with the

  
 45 

 
insolvency, bankruptcy, dissolution, liquidation or reorganization of any Credit Party upon or as a result of the appointment of a receiver, intervenor or conservator of, or trustee or similar
officer for, any Credit Party or any substantial part of their respective property or assets, or otherwise, all as though such payments had not been made. 
 20.6 Payments. 
 Each Subsidiary Guarantor hereby agrees that the
Guaranteed Obligations will be paid to each of the Beneficiaries pursuant to this Agreement without setoff or counterclaim in immediately available funds at the location and in the currency or currencies specified by such Beneficiary pursuant to
this Agreement. 
 20.7 Bound by Other Provisions. 

Each Subsidiary Guarantor agrees that it is bound by each covenant set forth in this Agreement and that it shall make each representation
and warranty set forth in this Agreement, in each case to the extent the applicable provision pertains to a Subsidiary. 

20.8 Additional Guarantors. 
 The initial Subsidiary Guarantors shall be such Persons as are identified as “Subsidiary Guarantors” on the signature pages hereof. From time to time subsequent to the date hereof, additional
Persons that are Subsidiaries or other Affiliates of any Credit Party may become parties hereto, as additional Subsidiary Guarantors (each an “Additional Subsidiary Guarantor”), by executing a Joinder to Multiparty Guaranty. Upon
delivery of any such Joinder to Multiparty Guaranty to each of the Beneficiaries, notice of which is hereby waived by the Subsidiary Guarantors, each such Additional Subsidiary Guarantor shall be a Subsidiary Guarantor and shall be as fully a party
hereto in such capacity as if such Additional Subsidiary Guarantor were an original signatory hereof. Each Subsidiary Guarantor expressly agrees that its obligations arising hereunder shall not be affected or diminished by the addition or release of
any other Subsidiary Guarantor hereunder, nor by any election of the Beneficiaries not to cause any Subsidiary of any Credit Party to become an Additional Subsidiary Guarantor hereunder. This Multiparty Guaranty shall be fully effective as to any
Subsidiary Guarantor that is or becomes a party hereto regardless of whether any other Person becomes or fails to become or ceases to be a Subsidiary Guarantor hereunder. 

 

	21	CONFIDENTIAL INFORMATION. 

 For the purposes of this Section 21, “Confidential Information” means information delivered to any Purchaser by or on behalf of the Company or any Subsidiary in connection with the
transactions contemplated by or otherwise pursuant to this Agreement that is proprietary in nature and that was clearly marked or labeled or otherwise adequately identified when received by such Purchaser as being confidential information of the
Company or such Subsidiary, provided that such term does not include information that (a) was publicly known or otherwise known to such Purchaser prior to the time of such disclosure, (b) subsequently becomes publicly known through
no act or omission by such Purchaser or any person acting on such Purchaser’s behalf, (c) otherwise becomes known to such Purchaser other than through disclosure by the Company or any Subsidiary or (d) constitutes financial statements
delivered to such Purchaser 

  
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under Section 7.1 that are otherwise publicly available. Each Purchaser will maintain the confidentiality of such Confidential Information in accordance with procedures adopted by such
Purchaser in good faith to protect confidential information of third parties delivered to such Purchaser and will not use any Confidential Information except in connection with the evaluation, administration and enforcement of the Transaction
Documents, provided that such Purchaser may deliver or disclose Confidential Information to (i) its directors, officers, employees, agents, attorneys, trustees and affiliates (to the extent such disclosure reasonably relates to the
administration of the investment represented by its Notes), (ii) its financial advisors and other professional advisors who agree to hold confidential the Confidential Information substantially in accordance with the terms of this
Section 21, (iii) any other holder of any Note, (iv) any Institutional Investor to which it sells or offers to sell such Note or any part thereof or any participation therein (if such Person has agreed in writing prior to its receipt
of such Confidential Information to be bound by the provisions of this Section 21 and such Person is not a Competitor), (v) any Person from which it offers to purchase any security of the Company (if such Person has agreed in writing prior
to its receipt of such Confidential Information to be bound by the provisions of this Section 21 and such Person is not a Competitor), (vi) any federal or state regulatory authority having jurisdiction over such Purchaser, (vii) the
NAIC or the SVO or, in each case, any similar organization, or any nationally recognized rating agency that requires access to information about such Purchaser’s investment portfolio, or (viii) any other Person to which such delivery or
disclosure may be necessary or appropriate (w) to effect compliance with any law, rule, regulation or order applicable to such Purchaser, (x) in response to any subpoena or other legal process, (y) in connection with any litigation to
which such Purchaser is a party or (z) if an Event of Default has occurred and is continuing, to the extent such Purchaser may reasonably determine such delivery and disclosure to be necessary or appropriate in the enforcement or for the
protection of the rights and remedies under such Purchaser’s Notes and this Agreement. Each holder of a Note, by its acceptance of a Note, will be deemed to have agreed to be bound by and to be entitled to the benefits of this Section 21
as though it were a party to this Agreement. On reasonable request by the Company in connection with the delivery to any holder of a Note of information required to be delivered to such holder under this Agreement or requested by such holder (other
than a holder that is a party to this Agreement or its nominee), such holder will enter into an agreement with the Company embodying the provisions of this Section 21. 

 

	22	MISCELLANEOUS. 

 22.1 Successors and Assigns. 
 All covenants and other agreements contained in this
Agreement by or on behalf of any of the parties hereto bind and inure to the benefit of their respective successors and assigns (including any subsequent holder of a Note) whether so expressed or not. 

22.2 Payments Due on Non-Business Days. 
 Anything in this Agreement or the Notes to the contrary notwithstanding (but without limiting the requirement in Section 8.4 that the notice of any optional prepayment specify a Business Day as the
date fixed for such prepayment), any payment of principal of or Make-Whole Amount or interest on any Note that is due on a date other than a New York Business Day shall be made on 

  
 47 

 
the next succeeding New York Business Day without including the additional days elapsed in the computation of the interest payable on such next succeeding New York Business Day; provided
that if the maturity date of any Note is a date other than a Business Day, the payment otherwise due on such maturity date shall be made on the next succeeding Business Day and shall include the additional days elapsed in the computation of interest
payable on such next succeeding Business Day. 
 22.3 Accounting Terms. 

(a) All accounting terms used herein which are not expressly defined in this Agreement have the meanings respectively given to them in
accordance with GAAP. Except as otherwise specifically provided herein, (i) all computations made pursuant to this Agreement shall be made in accordance with GAAP, and (ii) all financial statements shall be prepared in accordance with
GAAP. 
 (b) If at any time any change in GAAP would affect the computation of any financial ratio or requirement set forth in
any Transaction Document, and either the Company or the Required Holders shall so request, the Company and the holders of the Notes shall negotiate in good faith to amend such ratio or requirement to preserve the original intent thereof in light of
such change in GAAP (subject to the approval of the Required Holders); provided that until so amended, (i) such ratio or requirement shall continue to be computed in accordance with GAAP prior to such change therein and (ii) the
Company shall provide to the holders of the Notes financial statements and other documents required under this Agreement or as reasonably requested hereunder setting forth a reconciliation between calculations of such ratio or requirement made
before and after giving effect to such change in GAAP. 
 (c) As of any date of determination, for purposes of any determination
under Section 10.1 (and any financial calculations required to be made thereunder or included in the defined terms used therein), or required for purposes of preparing any Compliance Certificate to be delivered pursuant to Section 7.2(a),
the relevant calculations shall include or exclude, as the case may be, the effect of any assets or businesses that have been acquired or Transferred by the Company or any of its Subsidiaries pursuant to the terms hereof (including through mergers
or consolidations) as of such date of determination, as determined by the Company on a pro forma basis in accordance with GAAP, which determination may include one-time adjustments or reductions in costs, if any, directly attributable to any
such permitted Transfer or acquisition, as the case may be, in each case (a) calculated in accordance with applicable United States federal and state securities laws for the period of four fiscal quarters ended on or immediately prior to the
date of determination of any such ratios (without giving effect to any cost-savings or adjustments relating to synergies resulting from any such permitted acquisition, except as the Required Holders shall otherwise agree) and (b) giving effect
to any such permitted Transfer or acquisition, as the case may be, as if it had occurred on the first day of such four fiscal quarter period. 
 22.4 Severability. 
 Any provision of this Agreement that is prohibited or unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without 

  
 48 

 
invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall (to the full extent permitted by law) not invalidate or render unenforceable
such provision in any other jurisdiction. 
 22.5 Construction. 
 Each covenant contained herein shall be construed (absent express provision to the contrary) as being independent of each other covenant contained herein, so that compliance with any one covenant shall
not (absent such an express contrary provision) be deemed to excuse compliance with any other covenant. Where any provision herein refers to action to be taken by any Person, or which such Person is prohibited from taking, such provision shall be
applicable whether such action is taken directly or indirectly by such Person. 
 For the avoidance of doubt, all Schedules and Exhibits
attached to this Agreement shall be deemed to be a part hereof. 
 22.6 Counterparts. 

This Agreement may be executed in any number of counterparts, each of which shall be an original but all of which together shall constitute one
instrument. Each counterpart may consist of a number of copies hereof, each signed by less than all, but together signed by all, of the parties hereto. 
 22.7 Governing Law. 
 This Agreement shall be construed and enforced in accordance with,
and the rights of the parties shall be governed by, the law of the State of New York excluding choice-of-law principles of the law of such state that would permit the application of the laws of a jurisdiction other than such state. 

22.8 Jurisdiction and Process. (a) Each Credit Party irrevocably submits to the non-exclusive jurisdiction of any New
York State or federal court sitting in the Borough of Manhattan, The City of New York, over any suit, action or proceeding arising out of or relating to this Agreement (including the Multiparty Guaranty) or the Notes. To the fullest extent permitted
by applicable law, each Credit Party irrevocably waives and agrees not to assert, by way of motion, as a defense or otherwise, any claim that it is not subject to the jurisdiction of any such court, any objection that it may now or hereafter have to
the laying of the venue of any such suit, action or proceeding brought in any such court and any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum. 

(b) Each Credit Party consents to process being served by or on behalf of any holder of Notes in any suit, action or proceeding of the
nature referred to in Section 22.8(a) by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, return receipt requested, to it at its address specified in Section 18 or at such
other address of which such holder shall then have been notified pursuant to said Section. Each Credit Party agrees that such service upon receipt (i) shall be deemed in every respect effective service of process upon it in any such suit,
action or proceeding, and (ii) shall, to the fullest extent permitted by applicable law, be taken and held to be valid personal service upon and personal 

  
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delivery to it. Notices hereunder shall be conclusively presumed received as evidenced by a delivery receipt furnished by the United States Postal Service or any reputable commercial delivery
service. 
 (c) Nothing in this Section 22.8 shall affect the right of any holder of a Note to serve process in any manner
permitted by law, or limit any right that the holders of any of the Notes may have to bring proceedings against any Credit Party in the courts of any appropriate jurisdiction or to enforce in any lawful manner a judgment obtained in one jurisdiction
in any other jurisdiction. 
 22.9 Waiver of Jury Trial. THE PARTIES HERETO HEREBY WAIVE TRIAL BY JURY IN ANY
ACTION BROUGHT ON OR WITH RESPECT TO THIS AGREEMENT (INCLUDING THE MULTIPARTY GUARANTY), THE NOTES OR ANY OTHER DOCUMENT EXECUTED IN CONNECTION HEREWITH OR THEREWITH. 
 22.10 Transaction References. The Company agrees that Prudential Capital Group may (a) refer to its role in the origination of the purchase of the Notes from the Company, as well as the
identity of the Company, the aggregate principal amount and issue date of the Notes and the aggregate principal amount of the Facility, on its internet site or in marketing materials, press releases, published “tombstone” announcements or
any other print or electronic medium, and (b) display the Company’s corporate logo in conjunction with any such reference. 
 *     *     *     *     * 

  
 50 

									
		 		 	Very truly yours,
			
	THE COMPANY:	 		 	
			
		 		 	MCGRATH RENTCORP
					
		 		 		 	By:	 	 
		 		 		 	Name:	 	
		 		 		 	Title:	 	

  

			
	THE SUBSIDIARY GUARANTORS:
	
	ENVIROPLEX, INC.
		
	        By:	 	 
	        Name:	 	
	        Title:	 	

  

			
	MOBILE MODULAR MANAGEMENT CORPORATION
		
	        By:	 	 
	        Name:	 	
	        Title:	 	

  

			
	ADLER TANK RENTALS, LLC
		
	        By:	 	 
	        Name:	 	
	        Title:	 	

 [NOTE PURCHASE AND PRIVATE SHELF AGREEMENT] 

			
	 The foregoing is hereby agreed to as of
 the date thereof.

	
	PRUDENTIAL INVESTMENT MANAGEMENT, INC.
		
	By:	 	 
		 	Vice President

  

			
	THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
		
	By:	 	 
		 	Vice President

  

			
	PRUDENTIAL RETIREMENT INSURANCE AND ANNUITY COMPANY
		
	By:	 	Prudential Investment Management, Inc., investment manager
		
	By:	 	 
		 	Vice President

 [NOTE PURCHASE AND PRIVATE
SHELF AGREEMENT] 

 INFORMATION SCHEDULE 

 

							
	Authorized Officers for PIM	  		  	
		
	 Mitchell W. Reed
 Senior Vice President
 PRUDENTIAL CAPITAL GROUP

Four Embarcadero Center, Suite 2700
 San
Francisco, California 94111
	  	 Stephen J. DeMartini
 Managing Director
 PRUDENTIAL CAPITAL GROUP
 Four Embarcadero Center, Suite 2700
 San Francisco, California 94111

	 Telephone:

Facsimile:
	 	 (415) 291-5059
 (415)
421-6233
	  	 Telephone:

Facsimile:
	  	 (415) 291-5058
 (415)
421-6233

		
	 Iris Krause

Senior Vice President
 PRUDENTIAL CAPITAL
GROUP
 Four Embarcadero Center, Suite 2700
 San Francisco, California 94111
	  	 Charles Senner
 PRUDENTIAL CAPITAL GROUP
 100 Mulberry Street

7 Gateway Center Four
 Newark, New Jersey
07102

	 Telephone:

Facsimile:
	 	 (415) 291-5060
 (415)
421-6233
	  	 Telephone:

Facsimile:
	  	 (973) 802-6660
 (973)
624-6432

		
	 James McCrane 
 PRUDENTIAL CAPITAL GROUP
 100 Mulberry Street

7 Gateway Center Four
 Newark, New Jersey
07102
	  	 Mathew R. Douglass
 Senior Vice President
 PRUDENTIAL CAPITAL GROUP

2029 Century Park East, Suite 710
 Los Angeles,
California 90067

	 Telephone:

Facsimile:
	 	 (973) 802-4222
 (973)
624-6432
	  	 Telephone:

Facsimile:
	  	 (310) 295-5012
 (310)
295-5019

		
	 David Nguyen

Vice President
 PRUDENTIAL CAPITAL
GROUP
 Four Embarcadero Center, Suite 2700
 San Francisco, California 94111
	  	 Cornelia Cheng
 Vice President
 PRUDENTIAL CAPITAL GROUP
 2029 Century Park East, Suite 710
 Los Angeles, California 90067

	 Telephone:

Facsimile:
	 	 (415) 291-5071
 (415)
421-6233
	  	 Telephone:

Facsimile:
	  	 (310) 295-5013
 (310)
295-5019

			
	Authorized Officers for the Company	  		  	
		
	 Keith Pratt

McGrath RentCorp
 5700 Las Positas
Road
 Livermore, California 94551
	  	 Dave Whitney
 McGrath RentCorp
 5700 Las Positas Road
 Livermore, California 94551

	 Telephone:

Facsimile:
	 	 (925) 453-3106
 (925)
453-3200
	  	 Telephone:

Facsimile:
	  	 (925) 453-3196
 (925)
453-3200

 SCHEDULE A 
 INFORMATION RELATING TO SERIES A NOTE PURCHASERS 
  

									
	THE PRUDENTIAL INSURANCE COMPANY OF AMERICA	  	Aggregate
Principal Amount
of Series A Notes
to be Purchased	 	  	Series A Note
Denominations(s)	 
			
	 1.      All payments on account of Series A Notes held by such Purchaser shall be made by wire
transfer of immediately available funds for credit to:
	  	$	96,400,000	  	  	$	96,400,000	  
			
	 Account Name: Prudential Managed Portfolio

Account No.: P86188 (please do not include spaces)
  

JPMorgan Chase Bank
 New York, NY
 ABA No.: 021-000-021
	  				  			
			
	 Each such wire transfer shall set forth the name of the Company, and a reference to 4.03% Series A Notes due April 21, 2018, PPN 580589 A#6, and
the due date and application (as among principal, interest and Make-Whole Amount) of the payment being made.
	  				  			
			
	 2.      Address for all notices relating to payments:
	  				  			
			
	 The Prudential Insurance Company of America

c/o Investment Operations Group

Gateway Center Two, 10th Floor

100 Mulberry Street

Newark, NJ 07102-4077
  

Attention: Manager, Billings and Collections
	  				  			
			
	 3.      Address for all other communications and notices:
	  				  			

  
 Schedule A-1

									
	THE PRUDENTIAL INSURANCE COMPANY OF AMERICA	  	Aggregate
Principal Amount
of Series A Notes
to be Purchased	 	  	Series A Note
Denominations(s)	 
			
	 The Prudential Insurance Company of America

c/o Prudential Capital Group - Corporate Finance
 Four Embarcadero Center, Suite 2700
 San Francisco, California
94111-4180
	  				  			
			
	 Attention: Managing Director
 Telephone:     (415) 291-5054
 Facsimile:
     (415) 421-6233
	  				  			
			
	 4.      Recipient of telephonic prepayment notices with respect to Series A Notes:
	  				  			
			
	 Manager, Trade Management Group
  

Telephone:     (973) 367-3141
 Facsimile:      (888) 889-3832
	  				  			
			
	 5.      Tax Identification No.: 22-1211670
	  				  			

  
 Schedule A-2

									
	PRUDENTIAL RETIREMENT INSURANCE AND ANNUITY COMPANY	  	Aggregate
Principal
Amount of
Series A Notes to
be Purchased	 	  	Series A Note
Denominations(s)	 
			
	 1.      All payments on account of Series A Notes held by such Purchaser shall be made by wire
transfer of immediately available funds for credit to:
	  	$	3,600,000	  	  	$	3,600,000	  
			
	 Account Name: PRIAC - SA - Principal Preservation - Privates

Account No.: P86345 (please do not include spaces)
  

JPMorgan Chase Bank
 New York, NY
 ABA No.: 021-000-021
	  				  			
			
	 Each such wire transfer shall set forth the name of the Company, and a reference to 4.03% Series A Notes due April 21, 2018, PPN 580589A#6, and
the due date and application (as among principal, interest and Make-Whole Amount) of the payment being made.
	  				  			
			
	 2.      Address for all notices relating to payments:
	  				  			
			
	 Prudential Retirement Insurance and Annuity Company
 c/o Prudential Investment Management, Inc.
 Private Placement Trade Management

PRIAC Administration
 Gateway Center Four, 7th
Floor
 100 Mulberry Street
 Newark, NJ
07102
  
 Telephone:     (973) 802-8107

Facsimile:      (888) 889-3832
	  				  			
			
	 3.      Address for all other communications and notices:
	  				  			

  
 Schedule A-3

									
	PRUDENTIAL RETIREMENT INSURANCE AND ANNUITY COMPANY	  	Aggregate
Principal
Amount of
Series A Notes to
be Purchased	 	  	Series A Note
Denominations(s)	 
			
	 Prudential Retirement Insurance and Annuity Company

c/o Prudential Capital Group - Corporate Finance
 Four Embarcadero Center, Suite 2700
 San Francisco, California
94111-4180
	  				  			
			
	 Attention: Managing Director
 Telephone:     (415) 291-5054
 Facsimile:
     (415) 421-6233
	  				  			
			
	 4.      Tax Identification No.: 06-1050034
	  				  			

  
 Schedule A-4

 SCHEDULE B 
 DEFINED TERMS 
 As used herein, the following terms have the respective meanings set forth
below or set forth in the Section hereof following such term: 
 “Acceptance” is defined in Section 2B(5).

 “Acceptance Day” is defined in Section 2B(5). 

“Acceptance Window” is defined in Section 2B(5). 

“Accepted Note” is defined in Section 2B(5). 

“Additional Subsidiary Guarantor” is defined in Section 20.8. 

“Adler Tank Acquisition” means the acquisition of Adler Tank Rentals, Inc. 

“Affiliate” means any Person directly or indirectly controlling, controlled by, or under direct or indirect common
control with, the Company or another specified Person, except a Subsidiary. A Person shall be deemed to control another Person if such first Person possesses, directly or indirectly, the power to direct or cause the direction of the management and
policies of such other Person, whether through the ownership of voting securities, by contract or otherwise. 

“Affiliated Entity” means the Subsidiaries of the Company and any of their or the Company’s respective Controlled
Affiliates. 
 “Agreement” means this Note Purchase and Private Shelf Agreement, dated as of April 21,
2011, between the Company and the other Credit Parties, on the one hand, and PIM, the Series A Purchasers, and each Prudential Affiliate that hereafter may become bound by certain provisions hereof, on the other hand, as it may from time to time be
amended, supplemented or otherwise modified. 
 “Annual Percentage of Assets Transferred” means, as of any time
of determination thereof, the sum of the Percentages of Assets Transferred for each of the assets of the Company or Subsidiaries that has been Transferred during the then current fiscal quarter and the three fiscal quarters immediately preceding the
then current fiscal quarter. 
 “Anti-Money Laundering Laws” is defined in Section 5.16(c). 

“Authorized Officer” means (i) in the case of the Company, its chief executive officer, its chief financial
officer, any other officer of the Company designated as an “Authorized Officer” of the Company in the Information Schedule attached hereto or any other officer of the Company designated as an “Authorized Officer” of the Company
for the purpose of this Agreement in an Officer’s Certificate executed by the Company’s chief executive officer or chief 

  
 Schedule B-1

 
financial officer and delivered to PIM, and (ii) in the case of PIM, any officer of PIM designated as its “Authorized Officer” in the Information Schedule or any officer of PIM
designated as its “Authorized Officer” for the purpose of this Agreement in a certificate executed by one of its Authorized Officers. PIM or the Company may, by written notice to the other given by an Authorized Officer, de-designate any
person as one of its Authorized Officers hereunder. Any action taken under this Agreement on behalf of the Company by any individual who on or after the date of this Agreement shall have been an Authorized Officer of the Company and whom PIM in good
faith believes to be an Authorized Officer of the Company at the time of such action shall be binding on the Company even though such individual shall have ceased to be an Authorized Officer of the Company, and any action taken under this Agreement
on behalf of PIM by any individual who on or after the date of this Agreement shall have been an Authorized Officer of PIM, and whom the Company in good faith believes to be an Authorized Officer of PIM at the time of such action shall be binding on
PIM even though such individual shall have ceased to be an Authorized Officer of PIM. 
 “Available Facility
Amount” is defined in Section 2B(1). 
 “Bank Credit Agreement” means that certain Credit
Agreement, dated as of May 14, 2008, among the Company as the borrower, Bank of America, N.A., in its capacity as administrative agent, swing line lender and L/C issuer, and the Banks, as the same may be amended, restated or otherwise modified
from time to time, together with any renewals, extensions, replacements and refinancings (notwithstanding whether such replacements or refinancings are entered into with Bank of America, N.A. or any other Person) thereof. 

“Banks” means, collectively, each financial institution from time to time party to the Bank Credit Agreement acting in
the capacity as lender thereunder. 
 “Beneficiaries” is defined in Section 20. 

“Blocked Person” is defined in Section 5.16. 

“Business Day” means: (a) for the purposes of Section 2B(3) only, any day which is both a New York Business
Day and a day on which PIM is open for business; and (b) for the purposes of any other provision of this Agreement, a New York Business Day. 
 “Cancellation Date” is defined in Section 2B(8)(iii). 

“Cancellation Fee” is defined in Section 2B(8)(iii). 

“Capital Lease” means, at any time, a lease with respect to which the lessee is required concurrently to recognize the
acquisition of an asset and the incurrence of a liability in accordance with GAAP. 
 “Capitalized Lease
Obligation” means, with respect to any Person, any rental obligation which, under GAAP, is or will be required to be capitalized on the books of such Person, taken at the amount thereof accounted for as indebtedness (net of interest
expense) in accordance with such principles. 

  
 Schedule B-2

 “Closing Day” means, with respect to the Series A Notes, the Series A
Closing Day and, with respect to any Accepted Note, the Business Day specified for the closing of the purchase and sale of such Accepted Note in the Confirmation of Acceptance with respect to such Accepted Note; provided that (i) if the
Company and the Purchaser which is obligated to purchase such Accepted Note agree on an earlier Business Day for such closing, the “Closing Day” for such Accepted Note shall be such earlier Business Day, and (ii) if the closing of the
purchase and sale of such Accepted Note is rescheduled pursuant to Section 2B(7), the “Closing Day” for such Accepted Note, for all purposes of this Agreement except references to “original Closing Day” in
Section 2B(8)(iii), shall mean the Rescheduled Closing Day with respect to such Accepted Note. 
 “Code”
means the Internal Revenue Code of 1986, as amended from time to time, and the rules and regulations promulgated thereunder from time to time. 
 “Company” is defined in the introductory paragraph of this Agreement. 
 “Competitor” means any Person (other than any Purchaser) who is substantially engaged in the businesses of the Company or any Subsidiary and/or other activities reasonably related thereto
provided that: 
 (a) the provision of investment advisory services by a Person to a Plan which is owned
or controlled by a Person which would otherwise be a Competitor shall not of itself cause the Person providing such services to be deemed to be a Competitor if such Person has established procedures which will prevent confidential information
supplied to such Person by any of the Company or any Subsidiary from being transmitted or otherwise made available to such Plan or Person owning or controlling such Plan; and 

(b) in no event shall an Institutional Investor which maintains passive investments in any Person which is a Competitor be
deemed a Competitor it being agreed that the normal administration of the investment and enforcement thereof shall be deemed not to cause such Institutional Investor to be a “Competitor”. 

“Confidential Information” is defined in Section 21. 

“Confirmation of Acceptance” is defined in Section 2B(5). 

“Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management
and policies of a Person, whether through the ownership of voting securities, by contract or otherwise. “Controlling” and “Controlled” have meanings correlative thereto. 

“Credit Parties” means the Company and the Subsidiary Guarantors. 

“Cumulative Percentage of Assets Transferred” means, as at any time of determination thereof, the sum of the Percentages
of Assets Transferred for each asset of the Company or Subsidiaries that has been Transferred from and after the date hereof. 

“Default” means an event or condition the occurrence or existence of which would, with the lapse of time or the giving
of notice or both, become an Event of Default but (for the 

  
 Schedule B-3

 
avoidance of doubt) does not include any Non-Compliance Event or Potential Non-Compliance Event. 
 “Default Rate” means (i) as to any Series A Note, that rate of interest that is the greater of (a) 6.03% per annum, and (b) 2% over the rate of interest publicly
announced by JPMorgan Chase Bank as its “base” or “prime” rate, and (ii) as to any Shelf Note, that rate of interest that is the greater of (1) 2% over the Interest Rate specified in the caption at set forth at the top
of such Shelf Note, and (2) 2% over the rate of interest publicly announced by JPMorgan Chase Bank from time to time in New York City as its “base” or “prime” rate. 

“Delayed Delivery Fee” is defined in Section 2B(8)(ii). 

“Draw Fee” is defined in Section 2B(8)(i). 

“Dollars” and “$” means lawful currency of the United States of America. 

“EBIT” means, for the Company and its Subsidiaries on a consolidated basis for any period of determination, the sum of
(i) Net Income, (ii) provision for income taxes, (iii) interest expense, and (iv) minority interest in the Net Income (if positive) of any Subsidiary, and minus minority interest in the Net Income (if negative) of any
Subsidiary. 
 “EBITDA” shall mean, for the Company and its Subsidiaries on a consolidated basis for any period
of determination, EBIT minus (i) non-cash items of income, and (ii) extraordinary income, plus (a) depreciation expense, (b) amortization expense, (c) other non-cash charges (provided that to the extent
that any non-cash charge subsequently becomes a cash charge, such amount will be deducted in determining EBITDA for such subsequent period), and (d) extraordinary expense. 

“Environmental Laws” means any and all federal, state, local, and foreign statutes, laws, regulations, ordinances,
rules, judgments, orders, decrees, permits, concessions, grants, franchises, licenses, agreements or governmental restrictions relating to pollution and the protection of the environment or the release of any materials into the environment,
including but not limited to those related to Hazardous Materials. 
 “ERISA” means the Employee Retirement
Income Security Act of 1974, as amended from time to time, and the rules and regulations promulgated thereunder from time to time in effect. 
 “ERISA Affiliate” means any trade or business (whether or not incorporated) that is treated as a single employer together with the Company or a Subsidiary under section 414 of the Code.

 “Event of Default” is defined in Section 11. 

“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, and the rules and regulations
promulgated thereunder from time to time in effect. 
 “Facility” is defined in Section 2B(l). 

  
 Schedule B-4

 “Fiscal Quarter” means each of the three-month periods ending on
March 31, June 30, September 30 and December 31. 
 “Fiscal Year” means the
twelve-month period ending on December 31. 
 “Fixed Charges” means, for any date of determination, the
aggregate amount of (i) interest expense of the Company and its Subsidiaries on a consolidated basis for the four consecutive fiscal quarter period ended on such date, and (ii) cash dividends paid by the Company and its Subsidiaries for
the four consecutive fiscal quarter period ended on such date. 
 “Funded Debt” means, with respect to the
Company and its Subsidiaries on a consolidated basis, without duplication: (i) any indebtedness for borrowed money (including commercial paper, bankers’ acceptances, revolving credit line borrowings whether under the Series A Notes, the
Shelf Notes, the Bank Credit Agreement, the Sweep or otherwise and any and all Real Property Debt), or which is evidenced by bonds (other than assessment and other special bonds associated with real property holdings not issued in connection with
the borrowing of money), debentures or notes, or which represents the deferred purchase price of property (but shall exclude accounts payable, accrued expenses, deferred income, minority interest in Subsidiaries and deferred taxes),
(ii) indebtedness of a third party secured by Liens on the assets of such Person whether or not such obligation or liability is assumed by such Person, (iii) Capitalized Lease Obligations, and (iv) Guarantees. 

“GAAP” means generally accepted accounting principles as in existence from time to time; provided, that
“GAAP” shall exclude the effects of Accounting Standards Codification 825-10-25 (previously referred to as SFAS 159) or any successor or similar provision to the extent it relates to “fair value” accounting for liabilities.

 “Good Faith Contest” means an active contest or challenge initiated in a timely manner and in good faith by
appropriate proceedings for which adequate reserves have been established in accordance with GAAP. 
 “Governmental
Authority” means the government of 
 (a) the United States of America or any state or other political
subdivision thereof, or 
 (b) any other jurisdiction in which any of the Company or any Subsidiary conducts all
or any part of its business, or which asserts jurisdiction over any properties of such Person, or 
 (c) any
entity exercising executive, legislative, judicial, regulatory or administrative functions of, or pertaining to, any such government. 
 “Guarantee” means, with respect to any Person, any direct or indirect liability, contingent or otherwise, of such Person with respect to any indebtedness, lease, dividend or other
obligation of another, including, without limitation, any such obligation directly or indirectly guaranteed, endorsed (otherwise than for collection or deposit in the ordinary course of business) or discounted or sold with recourse by such Person,
or in respect of which such Person is 

  
 Schedule B-5

 
otherwise directly or indirectly liable, including, without limitation, any such obligation in effect guaranteed by such Person through any agreement (contingent or otherwise) to
(i) maintain the solvency or any balance sheet or other financial condition of another Person or (ii) make payment for any products, materials or supplies or for any transportation or services regardless of the non-delivery or
non-furnishing thereof, in any such case if the purpose or effect of such agreement is to provide assurance that such obligation will be paid or discharged, or that any agreements relating thereto will be complied with, or that the holders of such
obligation will be protected against loss in respect thereof. Guarantees shall include obligations of partnerships and joint ventures of which such Person is a general partner or co-venturer that are not expressly non-recourse to such Person.

 “Guaranteed Obligations” is defined in Section 20.1(a). 

“Hazardous Material” means any and all pollutants, toxic or hazardous wastes or other substances that might pose a
hazard to health and safety, the removal of which may be required or the generation, manufacture, refining, production, processing, treatment, storage, handling, transportation, transfer, use, disposal, release, discharge, spillage, seepage or
filtration of which is or shall be restricted, prohibited or penalized by any applicable law including, but not limited to, asbestos, urea formaldehyde foam insulation, polychlorinated biphenyls, petroleum, petroleum products, lead based paint,
radon gas or similar restricted, prohibited or penalized substances. 
 “Hedge Treasury Note(s)” means, with
respect to any Accepted Note, the United States Treasury Note or Notes whose average life (as determined by PIM) most closely matches the average life of such Accepted Note. 
 “holder” means, with respect to any Note, the Person in whose name such Note is registered in the register maintained by the Company pursuant to Section 13.1. 

“Hostile Tender Offer” means, with respect to the use of proceeds of any Note, any offer to purchase, or any purchase
of, shares of capital stock of any corporation or equity interests in any other entity, or securities convertible into or representing the beneficial ownership of, or rights to acquire, any such shares or equity interests, if such shares, equity
interests, securities or rights are of a class which is publicly traded on any securities exchange or in any over-the-counter market, other than purchases of such shares, equity interests, securities or rights representing less than 5% of the equity
interests or beneficial ownership of such corporation or other entity for portfolio investment purposes, and such offer or purchase has not been duly approved by the board of directors of such corporation or the equivalent governing body of such
other entity prior to the date on which the Company makes the Request for Purchase of such Note. 
 “include”
or “including” means, unless the context clearly requires otherwise, “including without limitation.” 

“Indebtedness” with respect to any Person means, at any time, without duplication, 

(a) its liabilities for borrowed money and its redemption obligations in respect of mandatorily redeemable Preferred
Stock; 

  
 Schedule B-6

 (b) its liabilities for the deferred purchase price of property acquired by
such Person (excluding accounts payable arising in the ordinary course of business but including all liabilities created or arising under any conditional sale or other title retention agreement with respect to any such property); 

(c)(i) all liabilities appearing on its balance sheet in accordance with GAAP in respect of Capital Leases and
(ii) all liabilities which would appear on its balance sheet in accordance with GAAP in respect of Synthetic Leases assuming such Synthetic Leases were accounted for as Capital Leases; 

(d) all liabilities for borrowed money secured by any Lien with respect to any property owned by such Person (whether or
not it has assumed or otherwise become liable for such liabilities); 
 (e) all its liabilities in respect of
letters of credit or instruments serving a similar function issued or accepted for its account by banks and other financial institutions (whether or not representing obligations for borrowed money); 

(f) the aggregate Swap Termination Value of all Swap Contracts of such Person; and 

(g) any Guarantee of such Person with respect to liabilities of a type described in any of clauses (a) through
(f) hereof. 
 Indebtedness of any Person shall include all obligations of such Person of the character described in clauses
(a) through (g) to the extent such Person remains legally liable in respect thereof notwithstanding that any such obligation is deemed to be extinguished under GAAP. 
 “INHAM Exemption” is defined in Section 6.2(e). 

“Institutional Investor” means (a) any Purchaser of a Note, (b) any holder of a Note holding (together with
one or more of its affiliates) more than 5% of the aggregate principal amount of the Notes then outstanding, (c) any bank, trust company, savings and loan association or other financial institution, any pension plan, any investment company, any
insurance company, any broker or dealer, or any other similar financial institution or entity, regardless of legal form, and (d) any Related Fund of any holder of any Note. 

“Issuance Period” is defined in Section 2B(2). 

“Joinder to Multiparty Guaranty” means a joinder agreement entered into by an Additional Subsidiary Guarantor in
substantially the form of Exhibit E. 
 “Lien” means any mortgage, deed of trust, pledge, hypothecation,
security interest, encumbrance, lien (statutory or otherwise) or charge of any kind (including any agreement to give any of the foregoing, any conditional sale or other title retention agreement, any lease in the nature thereof, and the filing of or
agreement to give any financing statement (other than precautionary filings in respect of true leases and consignment filings) under the Uniform Commercial Code of any jurisdiction) or any other type of preferential arrangement for the

  
 Schedule B-7

 
purpose, or having the effect, of protecting a creditor against loss or securing the payment or performance of an obligation; provided that customary rights of any lessor, lessee or
sublessee with respect to leased property arising under any lease entered into in the ordinary course of business shall in no event be deemed a “Lien”. 
 “Make-Whole Amount” is defined in Section 8.6. 

“Material” means material in relation to the business, operations, affairs, financial condition, assets, properties, or
prospects of the Credit Parties taken as a whole. 
 “Material Adverse Effect” shall mean a material adverse
change in, or a material adverse effect upon, any of (i) the business, assets, operations, affairs, condition (financial or otherwise) or prospects of the Company and its Subsidiaries taken as a whole or (ii) the ability of any Credit
Party to perform its respective obligations under the Transaction Documents to which such Person is a party, or (iii) the validity or enforceability of this Agreement, any Note or any other Transaction Document. 

“Material Subsidiary” means, as of any date of determination, any Subsidiary that has on such date, (a) total
revenues (for the then most recently ended period of four consecutive fiscal quarters with respect to which financial statements have been delivered pursuant to Section 7.1 (a) or (b)) constituting five percent (5%) or more of the
total revenues of the Company and its Subsidiaries on a consolidated basis for such period, or (b) total assets (at the end of the then most recently ended fiscal quarter with respect to which financial statements have been delivered pursuant
to Section 7.1(a) or (b)) constituting five percent (5%) or more of the total assets of the Company and its Subsidiaries on a consolidated basis at the end of such fiscal quarter; provided that if, as of any date of determination,
total revenues or total assets in each case in the aggregate for all Subsidiaries which otherwise would not constitute Material Subsidiaries exceed 15% of the total revenues or total assets, respectively, of the Company and its Subsidiaries on a
consolidated basis, then each Subsidiary immediately thereafter shall be deemed to constitute a Material Subsidiary as of such date of determination. 
 “Multiemployer Plan” means any Plan that is a “multiemployer plan” (as such term is defined in section 4001(a)(3) of ERISA). 

“Multiparty Guaranty” is defined in Section 20. 

“NAIC” means the National Association of Insurance Commissioners or any successor thereto. 

“NAIC Annual Statement” is defined in Section 6.2(a). 

“Net Income” means, for the Company and its Subsidiaries on a consolidated basis for any period of determination, net
income determined in accordance with GAAP. 
 “New York Business Day” means any day other than a Saturday, a
Sunday or a day on which commercial banks in New York City are required or authorized to be closed. 
 “Non-Compliance
Event” is defined in Section 11. 

  
 Schedule B-8

 “Notes” is defined in Section 1B. 

“OFAC” is defined in Section 5.16(a). 
 “OFAC Listed Person” is defined in Section 5.16. 

“Officer’s Certificate” means a certificate signed in the name of the Company by a Responsible Officer of the
Company. 
 “PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA or any
successor thereto. 
 “Pension Act” means the Pension Protection Act of 2006, as amended from time to time, and
the rules and regulations promulgated thereunder from time to time in effect. 
 “Pension Funding Rules” means
the rules of the Code and ERISA regarding minimum required contributions (including any installment payment thereof) to certain Plans and set forth in, with respect to plan years ending prior to the effective date as to such Plan of the Pension Act,
Section 412 of the Code and Section 302 of ERISA, each as in effect prior to the Pension Act and, thereafter, Sections 412 and 430 of the Code and Sections 302 and 303 of ERISA. 

“Percentage of Assets Transferred” means, with respect to each asset Transferred pursuant to Section 10.3, the
ratio (expressed as a percentage) of (i) the greater of such asset’s fair market value or net book value on the date of such Transfer to (ii) the consolidated total assets of the Company and Subsidiaries as of the last day of the
fiscal quarter immediately preceding the date of such Transfer. 
 “Person” means an individual, partnership,
corporation (including a business trust), limited liability company, joint stock company, trust, unincorporated association, joint venture or other entity, or a Governmental Authority. 

“PIM” means Prudential Investment Management, Inc. 

“Plan” means an “employee benefit plan” (as defined in section 3(3) of ERISA) subject to Title I of ERISA that
is or, within the preceding five years, has been established or maintained, or to which contributions are or, within the preceding five years, have been made or required to be made, by the Company, any Subsidiary or any ERISA Affiliate or with
respect to which the Company, any Subsidiary or any ERISA Affiliate may have any liability. 
 “Potential Non-Compliance
Event” means an event or condition the occurrence or existence of which would, with the lapse of time or the giving of notice or both, become a Non-Compliance Event. 
 “Preferred Stock” means any class of capital stock of a Person that is preferred over any other class of capital stock (or similar equity interests) of such Person as to the payment of
dividends or the payment of any amount upon liquidation or dissolution of such Person. 

  
 Schedule B-9

 “Priority Debt” means, at any time of determination, the sum of, without
duplication, (i) Funded Debt of the Company’s Material Subsidiaries (other than (a) Funded Debt owed to the Company or another Subsidiary and (b) Funded Debt created under the Multiparty Guaranty or under a Guarantee of the
obligations of the Company under the Bank Credit Agreement or the Sweep), plus (ii) Funded Debt of the Company secured by consensual Liens (other than Liens permitted by Section 10.5(l)). 

“property” or “properties” means, unless otherwise specifically limited, real or personal property of
any kind, tangible or intangible, choate or inchoate. 
 “Prudential Affiliate” means (i) any corporation
or other entity controlling, controlled by, or under common control with, PIM and (ii) any managed account or investment fund which is managed by PIM or a Prudential Affiliate described in clause (i) of this definition. For purposes of
this definition, the terms “control,” “controlling” and “controlled” shall mean the ownership, directly or through subsidiaries, of a majority of a corporation’s or other Person’s Voting Interests or
equivalent voting securities or interests. 
 “PTE” is defined in Section 6.2(a). 

“Purchasers” means the Series A Purchasers and PIM and/or the Prudential Affiliate(s) which are purchasing any Accepted
Notes. 
 “QPAM Exemption” is defined in Section 6.2(d). 

“Qualified Institutional Buyer” means any Person who is a “qualified institutional buyer” within the meaning
of such term as set forth in Rule 144A(a)(1) under the Securities Act. 
 “Real Property Debt” means Funded
Debt which is secured by any or all of the Company’s or any of its Subsidiaries’ real property holdings. 

“Related Fund” means, with respect to any holder of any Note, any fund or entity that (i) invests in Securities or
bank loans, and (ii) is advised or managed by such holder, the same investment advisor as such holder or by an affiliate of such holder or such investment advisor. 
 “Related Party” means: (i) any 10% or greater shareholder or other equityholder of the Company or any Subsidiary; (ii) all Persons to whom any Person described in clause
(i) above is related (in not greater than the second degree) by blood, adoption or marriage; and (iii) all Affiliates of the Company and the foregoing Persons. 

“Request for Purchase” is defined in Section 2B(3). 

“Required Holders” means, at any time, the holder or holders of a majority of the aggregate principal amount of the
Notes or of a Series of Notes, as the context may require, from time to time outstanding (exclusive of Notes then owned by any Credit Party, any Subsidiary or any of their respective Affiliates). 

“Rescheduled Closing Day” is defined in Section 2B(7). 

  
 Schedule B-10

 “Responsible Officer” means any Senior Financial Officer and any other
officer with responsibility for the administration of the relevant portion of this Agreement or any other Transaction Document. 

“Securities” or “Security” shall have the meaning specified in Section 2(1) of the Securities Act.

 “Securities Act” means the Securities Act of 1933, as amended from time to time, and the rules and
regulations promulgated thereunder from time to time in effect. 
 “Senior Financial Officer” means the chief
financial officer, principal accounting officer, treasurer or controller of the Company. 
 “Series” is defined
in Section 1B. 
 “Series A Closing Day” is defined in Section 3. 

“Series A Notes” is defined in Section 1A. 

“Series A Purchasers” means the purchasers of the Series A Notes, consisting of The Prudential Insurance Company of
America and Prudential Retirement Insurance and Annuity Company. 
 “Shelf Notes” is defined in
Section 1B. 
 “Solvent” means, with respect to any Person at the applicable time of determination, that
at such time, in the case of each of clauses (i), (ii), (iii) and (iv), after taking into account any and all rights of contribution provided for in Section 20.1(g), (i) the fair value of the property of such Person is greater than
the total amount of liabilities, including contingent liabilities, of such Person, (ii) the present fair salable value of the assets of such Person is not less than the amount that will be required to pay the probable liability of such Person
on its debts as they become absolute and matured, (iii) such Person does not intend to, and does not believe that it will, incur debts or liabilities beyond such Person’s ability to pay as such debts and liabilities mature, and
(iv) such Person is not engaged in business or a transaction, and is not about to engage in business or a transaction, for which such Person’s property would constitute an unreasonably small capital required for such Person’s
participation in such business or transaction. The amount of contingent liabilities at the applicable time of determination shall be computed as the amount that, in light of all the facts and circumstances existing at such time, reasonably can be
expected to become an actual or matured liability. 
 “Source” is defined in Section 6.2. 

“Subsidiary” means, as of any time of determination and with respect to any Person, any corporation, limited liability
company, partnership, joint venture, association or other entity of which a majority of the Voting Stock (other than securities having such power only by reason of the happening of a contingency) are at the time beneficially owned, held or
controlled by such Person and/or one or more Subsidiaries of such Person. Unless the context otherwise clearly 

  
 Schedule B-11

 
requires otherwise, any reference to a “Subsidiary” is a reference to a Subsidiary of the Company. 
 “Subsidiary Guarantors” shall mean Enviroplex, Inc., a California corporation, Mobile Modular Management Corporation, a California corporation, Adler Tank Rentals, LLC a Delaware limited
liability company, and each Person that hereafter becomes a party to the Multiparty Guaranty pursuant to the requirements of Section 9.8; provided that in the event a Person is released from the Multiparty Guaranty pursuant to
Section 9.8, such Person shall no longer be a Subsidiary Guarantor. 
 “SVO” means the Securities
Valuation Office of the NAIC or any successor to such office. 
 “Swap Contract” means (a) any and all
interest rate swap transactions, basis swap transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond
price or bond index swaps or options or forward foreign exchange transactions, cap transactions, floor transactions, currency options, spot contracts or any other similar transactions or any of the foregoing (including, but without limitation, any
options to enter into any of the foregoing), and (b) any and all transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement published by the
International Swaps and Derivatives Association, Inc. or any International Foreign Exchange Master Agreement. 
 “Swap
Termination Value” means, in respect of any one or more Swap Contracts, after taking into account the effect of any legally enforceable netting agreement relating to such Swap Contracts, (a) for any date on or after the date such Swap
Contracts have been closed out and termination value(s) determined in accordance therewith, such termination value(s), and (b) for any date prior to the date referenced in clause (a), the amounts(s) determined as the mark-to-market values(s)
for such Swap Contracts, as determined based upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Swap Contracts. 
 “Sweep” means that certain committed credit facility of $5,000,000, evidenced by that certain Credit Line Note, dated June 26, 2008, made by the Company in favor of Union Bank, N.A.
(formerly known as Union Bank of California, N.A.) and the commitment letter dated June 26, 2008, from Union Bank, N.A. (formerly known as Union Bank of California, N.A.) to the Company, to facilitate the automatic borrowing and repayment of
the Company’s loans in conjunction with its cash management services with Union Bank of California, N.A.; provided that the Sweep shall also mean any renewal or replacement of this type of credit extension to facilitate the
Company’s cash management services. 
 “Synthetic Lease” means, at any time, any lease (including leases
that may be terminated by the lessee at any time) of any property (a) that is accounted for as an operating lease under GAAP and (b) in respect of which the lessee retains or obtains ownership of the property so leased for U.S. federal
income tax purposes, other than any such lease under which such Person is the lessor. 

  
 Schedule B-12

 “Tangible Net Worth” shall mean, with respect to the Company and its
Subsidiaries on a consolidated basis, total assets determined in accordance with GAAP, minus (i) total liabilities determined in accordance with GAAP, (ii) all intangible assets, including all assets which should be classified under
GAAP as intangible assets (such as goodwill, patents, trademarks, copyrights, franchises, and deferred charges (including unamortized debt discount and research and development costs)), (iii) treasury stock, (iv) cash held in a sinking or
other similar fund established for the purpose of redemption or other retirement of capital stock or Funded Debt, but only to the extent the amount of such Funded Debt is not included in the total liabilities of the Company and its Subsidiaries
determined in accordance with GAAP, (v) to the extent not already deducted from total assets, reserves for depreciation, depletion, obsolescence or amortization of properties and other reserves or appropriations of retained earnings which have
been or should be established in connection with the business conducted by the Company or its Subsidiaries, and (vi) any revaluation or other write-up in book value of assets subsequent to December 31, 2010. 

“Transaction Documents” means this Agreement (including the Multiparty Guaranty), the Series A Notes, the Shelf Notes,
and any and all other agreements and instruments from time to time executed and delivered by or on behalf of any Credit Party related thereto. 
 “Transfer” means, with respect to any property, the sale, exchange, conveyance, lease, transfer or other disposition of such property. 

“Transferee” means any direct or indirect transferee of all or any part of any Note purchased by any Purchaser under
this Agreement. 
 “USA Patriot Act” means United States Public Law 107-56, Uniting and Strengthening America
by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA) PATRIOT ACT) Act of 2001, as amended from time to time, and the rules and regulations promulgated thereunder from time to time in effect. 

“Voting Stock” means, with respect to any Person, any shares of stock (or similar equity interests) of such Person whose
holders are entitled under ordinary circumstances to vote for the election of directors (or similar body that has management authority of such Person) of such Person (irrespective of whether at the time stock (or similar equity interests) of any
other class or classes shall have or might have voting power by reason of the happening of any contingency). 

  
 Schedule B-13

 EXHIBIT A-1 
 [FORM OF SERIES A NOTE] 
 McGRATH RENTCORP 

4.03% SERIES A SENIOR NOTE DUE APRIL 21, 2018 
  

			
	 No. [        ]
	  	[Date]
	 $[        ]
	  	PPN 580589 A#6

 FOR VALUE RECEIVED,
the undersigned, McGRATH RENTCORP (herein called the “Company”), a corporation organized under the laws of the State of California, hereby promises to pay to
[                    ], or registered assigns, the principal sum of
[                    ] DOLLARS on April 21, 2018, with interest (computed on the basis of a 360-day year of twelve 30-day months)
(a) on the unpaid balance thereof at the rate of 4.03% per annum from the date hereof, payable at maturity and semi-annually, on the 21st day of each April and October in each year, commencing with the April 21 or October 21 next
succeeding the date hereof until the principal hereof shall have become due and payable, and (b) at a rate per annum from time to time equal to the greater of (i) 6.03% and (ii) 2% over the rate of interest publicly announced by
JPMorgan Chase Bank from time to time in New York, New York as its “base” or “prime” rate (i) on any overdue payment of interest, and (ii) following the occurrence and during the continuance of an Event of Default (as
defined in the Agreement referred to below) on the unpaid principal balance, any overdue payment of interest and any overdue payment of any Make-Whole Amount, in the case of each of clause (i) and (ii), payable quarterly as aforesaid (or, at
the option of the registered holder hereof, on demand). 
 Payments of principal of, interest on and any Make-Whole Amount with respect to this
Note are to be made in lawful money of the United States of America at JPMorgan Chase Bank, New York, New York or at such other place as the holder hereof shall designate to the Company in writing as provided in the Agreement referred to below.

 This Note is one of a series of senior notes (herein called the “Notes”) issued pursuant to a Note Purchase and Private
Shelf Agreement, dated as of April 21, 2011 (as from time to time amended, restated, supplemented or otherwise modified, the “Agreement”), between the Company and the other Credit Parties named therein, on the one hand, and the
other Persons party thereto, on the other hand, and is entitled to the benefits thereof. Each holder of this Note will be deemed, by its acceptance hereof, to have (i) agreed to the confidentiality provisions of Section 21 of the
Agreement, and (ii) made the representations set forth in Section 6 of the Agreement. Unless otherwise indicated, capitalized terms used in this Note shall have the respective meanings ascribed to such terms in the Note Purchase Agreement.

 This Note is a registered Note and, as provided in the Agreement, upon surrender of this Note for registration of transfer, duly endorsed, or
accompanied by a written instrument of transfer duly executed, by the registered holder hereof or such holder’s attorney duly authorized in writing, a replacement Note for a like principal amount will be issued to, and registered in the name
of, the transferee. Prior to due presentment for registration of transfer, the Company may treat the 

  
 Exhibit A-1-1

 
person in whose name this Note is registered as the owner hereof for the purpose of receiving payment and for all other purposes, and the Company will not be affected by any notice to the
contrary. 
 The Company will make required prepayments of principal on the dates and in the amounts specified in the Note Purchase Agreement.
This Note is also subject to optional prepayment, in whole or from time to time in part, at the times and on the terms specified in the Note Purchase Agreement, but not otherwise. 
 The Notes have been unconditionally guaranteed by certain of the Company’s Subsidiaries pursuant to the terms of the Multiparty Guaranty. 
 If an Event of Default occurs and is continuing, the principal of this Note may be declared or otherwise become due and payable in the manner, at the price (including any applicable Make-Whole Amount) and
with the effect, provided in the Agreement. 
 This Note shall be construed and enforced in accordance with, and the rights of the Company and
the holder of this Note shall be governed by, the law of the State of New York excluding choice-of-law principles of the law of such state that would permit the application of the laws of a jurisdiction other than such state. 

 

			
	McGRATH RENTCORP
		
	By:	 	 
		 	Name:
		 	Title:

  
 Exhibit A-1-2

 EXHIBIT A-2 
 [FORM OF SHELF NOTE] 
 McGRATH RENTCORP 

SERIES              SENIOR NOTE 

No. [        ] 
 ORIGINAL PRINCIPAL AMOUNT: 
 ORIGINAL ISSUE DATE: 

INTEREST RATE: 
 INTEREST PAYMENT DATES:
[Quarterly][Semi-annually] on each [STATE DATES] 
 FINAL MATURITY DATE:1 

PRINCIPAL PREPAYMENT DATES AND AMOUNTS:2 
 FOR
VALUE RECEIVED, the undersigned, McGRATH RENTCORP (herein called the “Company”), a corporation organized under the laws of the State of California, hereby promises to pay to
[                    ], or registered assigns, the principal sum of
[                    ] DOLLARS [on the Final Maturity Date specified above] [, payable on the Principal Prepayment Dates and in the amounts
specified above, and on the Final Maturity Date as specified above in an amount equal to the unpaid balance of the principal hereof,] with interest (computed on the basis of a 360-day year of twelve 30-day months) (a) on the unpaid balance
thereof at the Interest Rate per annum specified above, payable on the Final Maturity Date specified above and on each Interest Payment Date specified above, commencing with the Interest Payment Date next succeeding the date hereof, until the
principal hereof shall have become due and payable, and (b) at a rate per annum from time to time equal to the Default Rate (i) on any overdue payment of interest, and (ii) following the occurrence and during the continuance of an
Event of Default (as defined in the Agreement referred to below) on the unpaid principal balance, any overdue payment of interest and any overdue payment of any Make-Whole Amount, in the case of each of clause (i) and (ii), payable on each
Interest Payment Date as aforesaid (or, at the option of the registered holder hereof, on demand). 
 Payments of principal, Make-Whole Amount,
if any, and interest are to be made in lawful money of the United States of America at JPMorgan Chase Bank, New York, New York or at such other place as the holder hereof shall designate to the Company in writing. 

This Note is one of a series of senior notes (herein called the “Notes”) issued pursuant to a Note Purchase and Private Shelf Agreement,
dated as of April 21, 2011 (as from time to time amended, restated, supplemented or otherwise modified, the “Agreement”), between the Company and the other Credit Parties named therein, on the one hand, and the other Persons
party thereto, on the other hand, and is entitled to the benefits thereof. Each holder of this Note will be deemed, by its acceptance hereof, to have (i) agreed to the confidentiality provisions of Section 21 of the Agreement, and
(ii) made the representations set forth in Section 6 of the 
  

	1 	 The Final Maturity Date must be no more than 12 years after the original issuance date 

	2 	 The Remaining Average Life must be no more than 10 years after the original issuance date.

  
 Exhibit A-2-1

 Agreement. Unless otherwise indicated, capitalized terms used in this Note shall have the respective
meanings ascribed to such terms in the Note Purchase Agreement. 
 This Note is a registered Note and, as provided in the Agreement, upon
surrender of this Note for registration of transfer, duly endorsed, or accompanied by a written instrument of transfer duly executed, by the registered holder hereof or such holder’s attorney duly authorized in writing, a replacement Note for
the then outstanding principal amount will be issued to, and registered in the name of, the transferee. Prior to due presentment for registration of transfer, the Company may treat the person in whose name this Note is registered as the owner hereof
for the purpose of receiving payment and for all other purposes, and the Company shall not be affected by any notice to the contrary. 
 This
Note is subject to optional prepayment, in whole or from time to time in part, at the times and on the terms specified in the Agreement, but not otherwise. 
 The Notes have been unconditionally guaranteed by certain of the Company’s Subsidiaries pursuant to the terms of the Multiparty Guaranty. 
 If an Event of Default shall occur and be continuing, the principal of this Note may be declared or otherwise become due and payable in the manner, at the price (including any applicable Make-Whole
Amount), and with the effect, provided in the Agreement. 
 This Note shall be construed and enforced in accordance with, and the rights of the
Company and the holder of this Note shall be governed by, the law of the State of New York excluding choice-of-law principles of the law of such state that would permit the application of the laws of a jurisdiction other than such state. 

 

			
	McGRATH RENTCORP
		
	By:	 	 
		 	Name:
		 	Title:

  
 Exhibit A-2-2

 EXHIBIT B 

[FORM OF REQUEST FOR PURCHASE] 
 McGRATH RENTCORP 
 Reference is made to the Note Purchase and Private Shelf Agreement (the
“Agreement”), dated as of April 21, 2011, between McGrath RentCorp (the “Company”) and the other Persons named therein as parties thereto. All terms herein that are defined in the Agreement have the respective
meanings specified in the Agreement. Pursuant to Section 2B(3) of the Agreement, the Company hereby makes the following Request for Purchase: 
 Individual specifications of the notes covered hereby (the “Notes”): 
  

													
	Principal Amount	  	Final Maturity Date	 	 	Principal Prepayment
Dates and Amounts	 	 	Interest Payment
Period	 
	 *
	  	 	*	* 	 	 	*	** 	 	 	[quarterly	] 
		  				 				 	 	[semi-annually	] 

 Use of proceeds of the Notes: 

Proposed day for the closing of the purchase and sale of the Notes: 
 The purchase price of the Notes is to be transferred to: 
  

					
	Name, Address and ABA
Routing Number of Bank	  	Number of Account	  	Name & Telephone No. of Bank Officer
	 	  	 	  	 
	  	  	 	  	 
	  	  	 	  	 

 The Company certifies (a) that the representations and
warranties contained in Section 5 of the Agreement are true on and as of the date of this Request for Purchase, and (b) that there exists on 

 

	*	Minimum of $5,000,000 

	**	Not more than 12 years after original issuance. 

	***	 Remaining Average Life to be not more than 10 years after original issuance.

  
 Exhibit B-1

 the date of this Request for Purchase no Event of Default or Default (both before and after giving effect to
the issuance and purchase of the Notes contemplated hereby). 
 Dated:
                                        ,
               
  

			
	MCGRATH RENTCORP
		
	By:	 	 
	Name:	 	
	Title:	 	

  
 Exhibit B-2

 EXHIBIT C 

[FORM OF CONFIRMATION OF ACCEPTANCE] 
 McGRATH RENTCORP 
 Reference is made to the Note Purchase and Private Shelf
Agreement (the “Agreement”), dated as of April 21, 2011, between McGrath RentCorp (the “Company”) and the other Persons named therein as parties thereto. All terms used herein that are defined in the Agreement
have the respective meanings specified in the Agreement. 
 PIM or the Prudential Affiliate which is named below as a Purchaser
of Notes hereby confirms the representations as to such Notes set forth in Section 6 of the Agreement, and agrees to be bound by the provisions of Sections 2B(5) and 2B(7) of the Agreement. 

Pursuant to Section 2B(5) of the Agreement, an Acceptance with respect to the following Accepted Shelf Notes is hereby confirmed:

  

	I.	Accepted Notes: Aggregate principal amount $_____________. 

  

	 	(A)	(a)     Name of Purchaser: 

  

	 	(b)	Principal amount: 

  

	 	(c)	Final maturity date: 

  

	 	(d)	Principal prepayment dates and amounts: 

  

	 	(e)	Interest rate: 

  

	 	(f)	Interest payment period: [quarterly] [semi-annually] 

  

	 	(g)	Payment and notice instructions: As set forth on attached Purchaser Schedule. 

 

	 	(B)	(a)     Name of Purchaser: 

  

	 	(b)	Principal amount: 

  

	 	(c)	Final maturity date: 

  

	 	(d)	Principal prepayment dates and amounts: 

  

	 	(e)	Interest rate: 

  

	 	(f)	Interest payment period: [quarterly] [semi-annually] 

  

	 	(g)	Payment and notice instructions: As set forth on attached Purchaser Schedule. 

 [(C), (D) . . . same information as above.] 
  

	II.	Closing Day: _______________ _____, _______ 

Dated: _______________ _____, _______ 

  
 Exhibit C-1

 
			
	MCGRATH RENTCORP
		
	By:	 	 
	Name:	 	
	Title:	 	

  

			
	PRUDENTIAL INVESTMENT MANAGEMENT, INC.
		
	By:	 	 
	Name:	 	
	Title:	 	Vice President

  

			
	[PRUDENTIAL AFFILIATE]
		
	By:	 	 
	Name:	 	
	Title:	 	Vice President

  
 Exhibit C-2

 EXHIBIT E 
 [FORM OF JOINDER TO MULTIPARTY GUARANTY] 
 JOINDER
NO. [__], dated as of [            ] (this “Joinder”), to the Multiparty Guaranty set forth as Section 20 (as amended or otherwise
modified from time to time, the “Multiparty Guaranty”) to that certain Note Purchase and Private Shelf Agreement, dated as of April 21, 2011 (as amended or otherwise modified from time to time, the “Note
Agreement”), executed by McGRATH RENTCORP (the “Company”), the Subsidiary Guarantors party thereto, and the Purchasers party thereto. Capitalized terms used herein and not otherwise defined herein shall have the meanings
assigned to such terms in the Note Agreement. 
 1. Pursuant to the Multiparty Guaranty, certain obligations owing by the
Company to the holders of Notes under the Note Agreement and evidenced by the Notes (together with their respective Transferees, the “Beneficiaries”) are guaranteed by the Subsidiary Guarantors. 

2. The undersigned (the “Additional Subsidiary Guarantor”) is executing this Joinder in accordance with the requirements
of Section 20.8 of the Multiparty Guaranty. 
 3. The Additional Subsidiary Guarantor by its signature below becomes a
Subsidiary Guarantor under the Multiparty Guaranty and the other provisions of the Agreement with the same force and effect as if originally named therein as a Subsidiary Guarantor and the Additional Subsidiary Guarantor hereby (a) agrees to
all the terms and provisions of the Agreement applicable to it as a Subsidiary Guarantor thereunder, and (b) represents and warrants that the representations and warranties made by it as a Subsidiary Guarantor set forth in Section 5 of the
Note Agreement are true and correct on and as of the date hereof. Each reference to a Subsidiary Guarantor in the Multiparty Guaranty and the other provisions of the Agreement shall be deemed to include the Additional Subsidiary Guarantor. The
Multiparty Guaranty and the other provisions of the Agreement are hereby incorporated herein by reference. 
 4. The Additional
Subsidiary Guarantor represents and warrants to the Beneficiaries that this Joinder 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.

 5. This Joinder may be executed in one or more counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument. Delivery of an executed signature page to this Joinder by facsimile transmission shall be as effective as delivery of a manually-signed original thereof. 

6. Except as expressly modified hereby, the Multiparty Guaranty and the other provisions of the Agreement shall remain in full force and
effect. 
 7. Any provision of this Joinder that is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions thereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable
such provision in any other jurisdiction. 

  
 Exhibit E-1

 8. All communications and notices hereunder to the Additional Subsidiary Guarantor shall be
given to it at the address set forth under its signature below. 
 IN WITNESS
WHEREOF, the Additional Subsidiary Guarantor has executed this Joinder by its duly authorized officer as of the day and year first above written. 

 

			
	[NAME], a [            ] [corporation]
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  

			
	Address:	 	 c/o McGrath RentCorp
 5700 Las
Positas Road
 Livermore, California 94550
 Attn: Chief Financial Officer
 Facsimile: (925) 453-3200

  
 Exhibit E-2Credit Agreement

 Exhibit 10.1 
 EXECUTION COPY 
 U.S. $180,000,000 

CREDIT AGREEMENT 

Dated as of April 20, 2011 
 Among 
 THE HANOVER INSURANCE GROUP, INC. 

as Borrower 
 THE
LENDERS NAMED HEREIN 
 as Lenders 
 GOLDMAN SACHS BANK USA 
 as Sole Arranger and Bookrunner 

MORGAN STANLEY SENIOR FUNDING, INC 
 as Syndication Agent 
 WELLS FARGO BANK, NATIONAL ASSOCIATION 

as Documentation Agent 
 and 
 GOLDMAN SACHS BANK USA 

as Administrative Agent 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	PAGE	 
		 	ARTICLE 1	  			
		 	DEFINITIONS AND ACCOUNTING TERMS	  			
			
	 Section 1.01.
	 	 Certain Defined Terms
	  	 	1	  
	 Section 1.02.
	 	 Terms Generally
	  	 	25	  
	 Section 1.03.
	 	 Captions
	  	 	25	  
	 Section 1.04.
	 	 Accounting Terms; GAAP
	  	 	26	  
			
		 	ARTICLE 2	  			
		 	AMOUNTS AND TERMS OF THE LOANS	  			
			
	 Section 2.01.
	 	 The Loans
	  	 	26	  
	 Section 2.02.
	 	 Making the Loans
	  	 	26	  
	 Section 2.03.
	 	 Certain Fees
	  	 	28	  
	 Section 2.04.
	 	 Termination and Reduction of the Commitments
	  	 	29	  
	 Section 2.05.
	 	 Repayment
	  	 	30	  
	 Section 2.06.
	 	 Interest
	  	 	30	  
	 Section 2.07.
	 	 Interest Rate Determinations; Changes in Rating Systems
	  	 	31	  
	 Section 2.08.
	 	 Voluntary Conversion and Continuation of Loans
	  	 	33	  
	 Section 2.09.
	 	 Prepayments of Loans
	  	 	33	  
	 Section 2.10.
	 	 Increased Costs
	  	 	34	  
	 Section 2.11.
	 	 Illegality
	  	 	35	  
	 Section 2.12.
	 	 Payments and Computations
	  	 	35	  
	 Section 2.13.
	 	 Taxes
	  	 	36	  
	 Section 2.14.
	 	 Set-Off; Sharing of Payments, Etc.
	  	 	40	  
	 Section 2.15.
	 	 Right To Replace a Lender
	  	 	40	  
	 Section 2.16.
	 	 Evidence of Debt
	  	 	41	  
	 Section 2.17.
	 	 Notes
	  	 	41	  
			
		 	ARTICLE 3	  			
		 	CONDITIONS OF LENDING	  			
			
	 Section 3.01.
	 	 Conditions Precedent to Effectiveness
	  	 	42	  
	 Section 3.02.
	 	 Conditions Precedent to Closing
	  	 	43	  
			
		 	ARTICLE 4	  			
		 	REPRESENTATIONS AND WARRANTIES	  			
			
	 Section 4.01.
	 	 Representations and Warranties
	  	 	45	  

  
 i 

							
		 	ARTICLE 5	  			
		 	COVENANTS OF THE BORROWER	  			
			
	 Section 5.01.
	 	 Affirmative Covenants
	  	 	48	  
	 Section 5.02.
	 	 Financial Covenants
	  	 	55	  
	 Section 5.03.
	 	 Negative Covenants
	  	 	55	  
			
		 	ARTICLE 6	  			
		 	EVENTS OF DEFAULT	  			
			
	 Section 6.01.
	 	 Events of Default
	  	 	59	  
	 Section 6.02.
	 	 Remedies
	  	 	61	  
			
		 	ARTICLE 7	  			
		 	THE ADMINISTRATIVE AGENT	  			
			
	 Section 7.01.
	 	 Appointment of Administrative Agent
	  	 	62	  
	 Section 7.02.
	 	 Power and Duties
	  	 	62	  
	 Section 7.03.
	 	 General Immunity
	  	 	63	  
	 Section 7.04.
	 	 Administrative Agent Entitled To Act As Lender
	  	 	64	  
	 Section 7.05.
	 	 Lenders’ Representations, Warranties And Acknowledgment
	  	 	65	  
	 Section 7.06.
	 	 Right To Indemnity
	  	 	65	  
	 Section 7.07.
	 	 Successor Administrative Agent
	  	 	66	  
	 Section 7.08.
	 	 Arranger, Etc.
	  	 	67	  
			
		 	ARTICLE 8	  			
		 	MISCELLANEOUS	  			
			
	 Section 8.01.
	 	 Amendments, Etc.
	  	 	67	  
	 Section 8.02.
	 	 Notices, Etc.
	  	 	68	  
	 Section 8.03.
	 	 No Waiver; Remedies
	  	 	70	  
	 Section 8.04.
	 	 Costs, Expenses and Indemnification
	  	 	70	  
	 Section 8.05.
	 	 Binding Effect
	  	 	71	  
	 Section 8.06.
	 	 Assignments and Participations
	  	 	71	  
	 Section 8.07.
	 	 Governing Law; Submission to Jurisdiction
	  	 	75	  
	 Section 8.08.
	 	 Severability
	  	 	75	  
	 Section 8.09.
	 	 Execution in Counterparts
	  	 	75	  
	 Section 8.10.
	 	 Survival
	  	 	76	  
	 Section 8.11.
	 	 Waiver of Jury Trial
	  	 	76	  
	 Section 8.12.
	 	 Confidentiality
	  	 	76	  
	 Section 8.13.
	 	 No Fiduciary Relationship
	  	 	77	  
	 Section 8.14.
	 	 USA PATRIOT Act
	  	 	78	  

  
 ii 

 SCHEDULES 
  

					
	Schedule I	  	-	  	Lenders and Commitments
	Schedule II	  	-	  	Existing Debt; Existing Liens
	Schedule III	  	-	  	Subsidiaries

 EXHIBITS 

 

					
	Exhibit A	  	-	  	Form of Notice of Borrowing
	Exhibit B	  	-	  	Form of Assignment and Acceptance

  
 iii

 CREDIT AGREEMENT (this “Agreement”) dated as of April 20, 2011 among
THE HANOVER INSURANCE GROUP, INC., a Delaware corporation (the “Borrower”), the banks and financial institutions listed on the signature pages hereof, and GOLDMAN SACHS BANK USA, as administrative agent (in such capacity, the
“Administrative Agent”). 
 WHEREAS, in connection with the Transactions (as hereinafter defined), the Borrower
has requested that the Lenders (as hereinafter defined) make loans to it in an aggregate principal amount not exceeding $180,000,000, and the Lenders are prepared to make such loans on and subject to the terms and conditions hereof. 

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, the parties hereto agree as follows:

 ARTICLE 1 
 DEFINITIONS AND ACCOUNTING TERMS 
 Section 1.01. Certain Defined Terms. As used in this Agreement, the following terms shall have the following respective meanings: 

“ABR” means a fluctuating interest rate which shall at any time be equal to the highest of: 

(a) the Prime Rate; 
 (b) 1/2 of 1% per annum above the Federal Funds Rate; and 
 (c) the
Eurodollar Rate (giving effect to any adjustment pursuant to Section 2.06(c)) that would be payable at such time for any Eurodollar Loan with an Interest Period of one month plus 1%. 

“ABR Loan” means, at any time, a Loan which bears interest at rates based upon the ABR. 

“Acceptance Condition” means, if a Conversion Notice has been delivered, the condition with respect to the number of
acceptances to the Offer which must be secured to declare the Offer unconditional as to acceptances (as set out in the Offer Press Release) and which shall not be less than the Acceptance Percentage of the Company Shares to which the Offer relates.

 “Acceptance Percentage” means 90% or such lower percentage agreed by the Majority Lenders and the Borrower

 “Acquisition” means the acquisition of the Company Shares by UK Holdco as
described in the Scheme Implementation Agreement, which shall be effected by way of a Scheme or, if a Conversion Notice has been delivered, an Offer. 
 “Acquisition Conditions Precedent” means the conditions listed in Appendix I to the Press Release or, if a Conversion Notice has been delivered, the corresponding conditions in the Offer
Press Release. 
 “Administrative Agent” has the meaning set forth in the recital of parties hereto, and such
Persons successors as contemplated hereunder. 
 “Administrative Questionnaire” means an administrative
questionnaire in a form supplied by the Administrative Agent. 
 “Affected Person” has the meaning specified in
Section 2.15. 
 “Affiliate” means, as to any Person, any other Person that, directly or indirectly,
Controls, is Controlled by or is under common Control with such Person. 
 “Agent Affiliates” has the meaning
specified in Section 8.02(b)(iii). 
 “Agent Fee Letter” means the agent fee letter dated the date hereof
between the Borrower and Goldman Sachs Bank USA relating to the loan facility provided herein. 
 “Agreement”
has the meaning set forth in the recital of parties hereto. 
 “Anti-Trust Condition” means Acquisition
Condition Precedent number 1.3 (a) through (k) or in the event that a Conversion Notice has been delivered, the corresponding condition precedent in the Offer Press Release. 

“Applicable Commitment Fee Rate” means 0.30% per annum. 

“Applicable Lending Office” means, with respect to any Lender, such Lender’s Domestic Lending Office in the case of
an ABR Loan and such Lender’s Eurodollar Lending Office in the case of a Eurodollar Loan. 
 “Applicable
Margin” means, as of any date of determination, the percentage set forth below for the applicable Type of Loan opposite the applicable time period and the applicable Rating Level Period at such time: 

  
 2 

																																									
	 	  	Rating Level 1
Period	 	 	Rating Level 2
Period	 	 	Rating Level 3
Period	 	 	Rating Level 4
Period	 	 	Rating Level 5
Period	 
	  	Euro-
dollar	 	 	ABR	 	 	Euro-
dollar	 	 	ABR	 	 	Euro-
dollar	 	 	ABR	 	 	Euro-
dollar	 	 	ABR	 	 	Euro-
dollar	 	 	ABR	 
	 Closing Date until the 89th day following the Closing Date
	  	 	2.00	% 	 	 	1.00	% 	 	 	2.25	% 	 	 	1.25	% 	 	 	2.50	% 	 	 	1.50	% 	 	 	3.00	% 	 	 	2.00	% 	 	 	4.00	% 	 	 	3.00	% 
	
90th day following the Closing Date until the 179th day following the Closing Date
	  	 	2.50	% 	 	 	1.50	% 	 	 	2.75	% 	 	 	1.75	% 	 	 	3.00	% 	 	 	2.00	% 	 	 	3.50	% 	 	 	2.50	% 	 	 	4.50	% 	 	 	3.50	% 
	
180th day following the Closing Date until the 269th day following the Closing Date
	  	 	3.00	% 	 	 	2.00	% 	 	 	3.25	% 	 	 	2.25	% 	 	 	3.50	% 	 	 	2.50	% 	 	 	4.00	% 	 	 	3.00	% 	 	 	5.00	% 	 	 	4.00	% 
	 Thereafter
	  	 	3.50	% 	 	 	2.50	% 	 	 	3.75	% 	 	 	2.75	% 	 	 	4.00	% 	 	 	3.00	% 	 	 	4.50	% 	 	 	3.50	% 	 	 	5.50	% 	 	 	4.50	% 

 Each change in the
Applicable Margin resulting from a Rating Level Change shall be effective on the effective date of such Rating Level Change. 

“Approved Electronic Communications” means any notice, demand, communication, information, document or other material
that the Borrower or any of its Subsidiaries provides to the Administrative Agent hereunder or pursuant to the transactions contemplated hereby which is distributed to the Administrative Agent, the Arranger or the Lenders by means of electronic
communications pursuant to Section 8.02(b). 
 “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. 

  
 3 

 “Arranger” means Goldman Sachs Bank USA as the sole arranger and bookrunner
in connection herewith. 
 “Asset Sale” means any Disposition or series of related Dispositions by the Borrower
or any of its Subsidiaries; provided that “Asset Sale” shall not include Dispositions (i) to the Borrower or any other Subsidiary of the Borrower, (ii) in the ordinary course of business or (iii) pursuant to
Section 5.03(d)(iv). 
 “Assignment and Acceptance” means an assignment and acceptance entered into by a
Lender and an Eligible Assignee, and accepted by the Administrative Agent, in substantially the form of Exhibit B. 

“Assignment Taxes” has the meaning specified in Section 2.13(b). 

“Beneficial Owner” means the beneficial owner, for U.S. federal income tax purposes, of a payment to which any U.S.
federal withholding tax relates. 
 “Borrower” has the meaning set forth in the recital of parties hereto.

 “Borrowing” means a borrowing consisting of Loans of the same Type made by the Lenders at the same time
pursuant to Section 2.01. 
 “Business Day” means a day on which banks are not required or authorized to
close in London and New York City and, if the applicable Business Day relates to any Eurodollar Loan, on which dealings are carried on in the London interbank market. 
 “Cash Confirmation” means the letter among Borrower, UK Holdco and Goldman Sachs (International), relating to, among other things, the Escrow Amount, the procedures to be implemented in
respect thereof and the Loans. 
 “Certain Funds Period” means the period from and including the Signing Date
and ending on the earliest of: 
 (a) the date of cancellation in full of the Commitments; 

(b) if the Closing Date has not occurred on or prior to the Long Stop Date, the Long Stop Date; 

(c) the date on which the Scheme is rejected by the High Court of England and Wales, lapses or is withdrawn (other than in connection
with the conversion of the Scheme into an Offer) or, if an Offer is made, the date on which the Offer lapses, terminates or is withdrawn; and 
 (d) the date which falls: 

  
 4 

 (i) if the Acquisition is effected by way of a Scheme, 15 days after the
Scheme Effective Date; or 
 (ii) if the Acquisition is effected by way of an Offer, 60 days after the Offer
Unconditional Date, or if Borrower has sent to minority shareholders notices pursuant to section 979 of the Companies Act before such date, such longer period as is necessary to enable Borrower to acquire the remaining Company Shares pursuant to the
squeeze-out procedures under Chapter 3 of Part 28 of the Companies Act; provided that the Certain Funds Period shall in any event end on the date that is 102 days after the Offer Unconditional Date, unless such 102nd day is prior to the Long Stop
Date, in which case the Certain Funds Period shall end on the Long Stop Date. 
 “Change in Control” means any
of the following events: 
 (a) any “person” or “group” (as such terms are used for purposes of sections
13(d) and 14(d) of the Securities Exchange Act of 1934, whether or not applicable, except that for purposes of this paragraph (a) such person or group shall be deemed to have “beneficial ownership” of all shares that such person or
group has the right to acquire, whether such right is exercisable immediately or only after the passage of time), is or becomes the “beneficial owner” (as such term is used in Rule 13d-3 promulgated pursuant to said Act), directly or
indirectly, of more than 35% of the Voting Shares of the Borrower; or 
 (b) during any period of 25 consecutive calendar
months, a majority of the board of directors of the Borrower shall no longer be composed of individuals (i) who were members of said board on the first day of such period, (ii) whose election or nomination to said board was approved by
individuals referred to in clause (i) above constituting at the time of such election or nomination at least a majority of said board and (iii) whose election or nomination to said board was approved by individuals referred to in clauses
(i) and (ii) above constituting at the time of such election or nomination at least a majority of said board. 

“CIC” means Citizens Insurance Company of America, a property and casualty insurance company organized under the laws of
Michigan as a corporation. 
 “CitySquare Project” means the CitySquare development in Worcester, Massachusetts
as described in Form 10-K of The Hanover Insurance Group, Inc. for the fiscal year ended December 31, 2010. 

“Clean-Up Period” has the meaning specified in Section 6.01. 

  
 5 

 “Closing Date” means the date on which the first Loan is made to the
Borrower under this Agreement. 
 “Closing Date Contribution” means the application directly or indirectly on
the Closing Date of the proceeds of the Loans and the amounts held in the Escrow Account (i) by way of loan to UK Holdco, and/or (ii) to subscribe for Equity Interests of UK Holdco to fund the Acquisition. 

“Code” means the Internal Revenue Code of 1986, as amended from time to time. 

“Commitment” means, as to each Lender, the obligation of such Lender, on and subject to the terms and conditions of this
Agreement, to make Loans pursuant to Section 2.01 in the amount set forth in Schedule I, as such amount may be adjusted from time to time in accordance with this Agreement. 

“Commitment Fee” has the meaning specified in Section 2.03(a). 

“Commitment Termination Date” means the last day of the Certain Funds Period. 

“Companies Act” means the Companies Act of 2006 of England and Wales, as amended. 

“Companies House” means the office for company administration and registrations in England and Wales operated by the
Registrar of Companies. 
 “Company” means Chaucer Holdings PLC. 

“Company Group” means the Company and its Subsidiaries. 

“Company Shares” means all the issued and unconditionally allotted share capital in the Company and any further shares
in the capital of the Company which may be issued or unconditionally allotted pursuant to the exercise of any outstanding subscription or conversion rights or otherwise together with all related rights. 

“conservator” has the meaning specified in Section 6.01(f). 

“Consolidated” refers to the consolidation of accounts of the Borrower and its Subsidiaries in accordance with GAAP or,
in the case of Section 4.01(a)(ii) or Section 5.01(a)(xii), the Company and its Subsidiaries in accordance with IFRS. 

“Continuation”, “Continue” and “Continued” each refers to a continuation of Eurodollar
Loans from one Interest Period to the next Interest Period pursuant to Section 2.08(b). 

  
 6 

 “Control” of a Person means the possession, directly or indirectly, of the
power to direct or cause the direction of the management or policies of such Person, whether through the ability to exercise voting power, by contract or otherwise, and “Controlling” and “Controlled” has a
correlative meaning. 
 “Conversion Notice” means a written notice given by Borrower to the Administrative
Agent at any time prior to the Scheme Effective Date if the Scheme has not lapsed or been withdrawn that Borrower intends to switch from the Scheme to launch an Offer. 
 “Convert”, “Conversion” and “Converted” each refers to a conversion of Loans of one Type into Loans of the other Type pursuant to Section 2.07 or
Section 2.08(a). 
 “Debt” of any Person means (a) indebtedness of such Person for borrowed money,
(b) obligations of such Person evidenced by bonds, debentures, notes or other similar instruments, (c) obligations of such Person to pay the deferred purchase price of Property or services (other than trade payables and accrued expenses
incurred in the ordinary course of business and not overdue by more than 90 days), (d) obligations of such Person as lessee under leases which shall have been or should be, in accordance with generally accepted accounting principles, recorded
as capital leases, (e) Debt of others secured by a Lien on the Property of such Person, whether or not the Debt so secured has been assumed by such Person, (f) obligations of such Person under Guaranties in respect of Debt of others and
(g) obligations of such Person in respect of Hybrid Securities. 
 “Debt Incurrence” means any incurrence
of Debt after the Signing Date of the type referred to in clauses (a), (b) and (g) of the definition thereof (including, without limitation, any Permanent Financing to the extent treated as Debt) other than Excluded Debt. 

“Default” means an event that, with notice or lapse of time or both, would become an Event of Default. 

“Disposition” or “Dispose” means, with respect to any Person (i) any sale, transfer, license,
lease or other disposition of any Property by such Person including any sale, assignment, transfer or other disposal of any notes or accounts receivable or any rights and claims associated therewith and (ii) any issuance of Equity Interests by
any Subsidiary of such Person. 
 “Dollars” and “$” refers to lawful money of the United
States of America. 
 “Domestic Lending Office” means, with respect to any Lender, the office of such Lender
specified as its “Domestic Lending Office” in the Administrative Questionnaire of such Lender or in the Assignment and Acceptance pursuant to 

  
 7 

 
which it became a Lender, or such other office of such Lender as such Lender may from time to time specify to the Borrower and the Administrative Agent. 

“Duration Fee” has the meaning specified in Section 2.03(b). 

“Eligible Assignee” means (a) a Lender, (b) an Affiliate of a Lender, (c) an Approved Fund, (d) any
Permitted Assignee and (e) any other Person (other than a natural person) approved by the Administrative Agent and by the Borrower (each such approval not to be unreasonably withheld or delayed); provided, that notwithstanding the
foregoing, (w) “Eligible Assignee” shall not include the Borrower or any of the Borrower’s Affiliates or Subsidiaries, (z) no such consent of the Borrower shall be required during the continuance of an Event of Default,
(y) the Borrower shall be deemed to have consented to any assignment hereunder unless it shall object thereto by written notice to the Administrative Agent within 5 Business Days after having received notice thereof and (z) prior to the
Closing Date, the Borrower may withhold its consent pursuant to the foregoing clause (e) in its sole discretion. 

“Equity Interests” means shares of capital stock, partnership interests, membership interests in a limited liability
company, beneficial interests in a trust or other equity ownership interests in a Person, and any warrants, options or other rights entitling the holder thereof to purchase or acquire any such equity interest. 

“Equity Issuance” means any issuance or sale by the Borrower or any of its Subsidiaries after the Closing Date of Equity
Interests (or, for the purpose of Section 2.04(c) or 2.09(c), Equity-Linked Securities), other than (a) any such issuance or sale by a Subsidiary of the Borrower to the Borrower or to a Wholly-Owned Subsidiary of the Borrower, (b) any
capital contribution by the Borrower or a Wholly-Owned Subsidiary of the Borrower to any Subsidiary of the Borrower or (c) stocks, warrants, options or other rights to obtain Equity Interests issued to directors, officers, consultants and other
employees of the Borrower. 
 “Equity-Linked Securities” means any securities of the Borrower or any of its
Subsidiaries which are convertible into, or exchangeable for, equity securities of the Borrower or such Subsidiary, including any securities issued by any of such Persons which are pledged to secure any obligation of any holder to purchase equity
securities of the Borrower or any of its Subsidiaries. 
 “ERISA” means the Employee Retirement Income Security
Act of 1974, as amended from time to time, and the regulations promulgated and rulings issued thereunder. 
 “ERISA
Affiliate” means any trade or business (whether or not incorporated) that, together with the Borrower, is treated as a single employer 

  
 8 

 
under Section 414(b) or (c) of the Code or, solely for 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” 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) a determination that a Plan is, or is expected to be, in “at risk” status (as defined in section 303(i)(4) of
ERISA); (c) the failure to timely make a contribution required to be made with respect to any Plan or any Multiemployer Plan; (d) a determination that a Multiemployer Plan is, or is expected to be, in “endangered status” or
“critical status’ (each as defined in section 305(b) of ERISA); (e)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; (f) the receipt by
the Borrower or any of its ERISA Affiliates from the PBGC or a plan administrator of any notice relating to an intention to terminate any Plan or Plans or to appoint a trustee to administer any Plan; (g) 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; (h) the receipt by the Borrower or any of its ERISA Affiliates of any notice, or the receipt by any Multiemployer
Plan from the Borrower or any of its ERISA Affiliates 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; or (i) the occurrence of a non-exempt prohibited transaction under section 406 of ERISA or section 4975 of the Code which could reasonably be expected to result in liability to the Borrower or any of its ERISA Affiliates.

 “Escrow Account” has the meaning given to it in the Escrow Agreement. 

“Escrow Amount” means the an amount of cash and securities deposited by the Borrower into the Escrow Account as
contemplated by the Escrow Agreement. 
 “Escrow Agent” has the meaning given to it in the Escrow Agreement.

 “Escrow Agreement” means the escrow agreement dated as of the date hereof among the Borrower, Goldman Sachs
International as investment bank and The Bank of New York Mellon as escrow agent. 
 “Eurocurrency Liabilities”
has the meaning assigned to that term in Regulation D. 
 “Eurodollar Lending Office” means, with respect to
any Lender, the office of such Lender specified as its “Eurodollar Lending Office” in the Administrative Questionnaire of such Lender or in the Assignment and 

  
 9 

 
Acceptance pursuant to which it became a Lender (or, if no such office is specified, its Domestic Lending Office), or such other office of such Lender as such Lender may from time to time specify
to the Borrower and the Administrative Agent. 
 “Eurodollar Loan” means, at any time, a Loan which bears
interest at rates based upon the Eurodollar Rate. 
 “Eurodollar Rate” means, for any Interest Period for each
Eurodollar Loan, an interest rate per annum equal to (a) the rate per annum for deposits in Dollars having a maturity closest to such Interest Period which appears on Reuters Page LIBOR01 as of approximately 11:00 a.m., London time, on the day
two London Banking Days prior to the first day of such Interest Period, (b) in the event the rate referenced in the preceding clause (a) does not appear on Reuters Page LIBOR01 or ceases to be available thereat, the rate determined by
Administrative Agent to be the offered rate on such other page or other service which displays an average British Bankers Association Interest Settlement Rate for deposits (for delivery on the first day of such period) in Dollars having a maturity
closes to such Interest Period determined as of approximately 11:00 a.m., London time, on the day two London Banking Days prior to the first day of such Interest Period, or (c) in the event the rates referenced in the preceding clauses
(a) and (b) are not available, the rate per annum equal to the quotation obtained by the Administrative Agent from the Reference Bank for the rates at which deposits in Dollars having a maturity closest to such Interest Period are offered
by the principal London office of such Reference Bank as of approximately 11:00 a.m., London time, on the day that is two London Banking Days preceding the first day of such Interest Period to prime banks in the London interbank market in a
principal amount of $5,000,000. 
 “Eurodollar Rate Reserve Percentage” of any Lender means, for any Interest
Period for any Eurodollar Loan, the reserve percentage applicable during such Interest Period (or if more than one such percentage shall be so applicable, the daily average of such percentages for those days in such Interest Period during which any
such percentage shall be so applicable) under regulations issued from time to time by the Board of Governors of the Federal Reserve System (or any successor) for determining the maximum reserve requirement (including any emergency, supplemental or
other marginal reserve requirement) for such Lender with respect to liabilities or assets consisting of or including Eurocurrency Liabilities having a term comparable to such Interest Period. 

“Events of Default” has the meaning specified in Section 6.01. 

“Excluded Debt” means (i) Debt owed to the Borrower or its Subsidiaries, (ii) other Debt approved in writing
by the Administrative Agent (acting on the instructions of the Majority Lenders), (iii) Debt incurred under facilities in 

  
 10 

 
existence on the Signing Date and set forth in Schedule II hereto, (iv) up to $50,000,000 of Debt incurred pursuant to Section 5.03(a)(iv) and (v) Debt incurred pursuant to
Section 5.03(a)(xii). 
 “Facility Fee Letter: means the Facility Fee Letter dated the date hereof between the
Borrower, Goldman Sachs Bank USA, Wells Fargo Bank, National Association, Wells Fargo Securities, LLC and Morgan Stanley Senior Funding relating to the loan facility provided herein. 

“FATCA” means sections 1471 through 1474 of the Code and any applicable Treasury regulation promulgated thereunder or
published administrative guidance implementing such sections or any amended or successor version thereof. 
 “Federal
Funds Rate” means, for any period, a fluctuating interest rate per annum equal for each day during such period to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged
by Federal funds brokers, as published for such day (or, if such day is not a Business Day, for the next preceding 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 the Administrative Agent from three Federal funds brokers of recognized standing selected by it after consultation with the Borrower. 

“Fee Letters” means the Agent Fee Letter and the Facility Fee Letter. 

“Financial Debt” means Debt of the kinds set forth in clauses (a), (b), (d) or (g) of the definition of Debt,
or of the kinds set forth in clauses (e) or (f) thereof to the extent relating to Debt of the type referred to in (a), (b), (d) and (g) of the definition thereof. 

“Foreign Subsidiary” means a Subsidiary which is not formed under the laws of (a) the United States of America or
any state therein or (b) the District of Columbia. 
 “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 business. 

“GAAP” means generally accepted accounting principles in the United States of America as in effect from time to time.

 “Governmental Authority” means any federal, state, municipal, national or other government, governmental
department, commission, board, bureau, court, agency or instrumentality or political subdivision thereof or any entity, officer or 

  
 11 

 
examiner exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to any government or any court, in each case whether associated with a state of the
United States, the United States, or a foreign entity or government. 
 “GS” means Goldman Sachs Bank USA.

 “Guaranty” of or by any Person (the “guarantor”) means any obligation, contingent or
otherwise, of the guarantor guaranteeing or having the economic effect of guaranteeing any Debt of any other Person (the “primary obligor”) in any manner, whether directly or indirectly, and including any obligation of the
guarantor, direct or indirect, (a) to purchase or pay (or to advance or supply funds for the purchase or payment of) such Debt 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 or services for the purpose of assuring the owner of such Debt 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 Debt or other obligation or (d) as an account party in respect of any letter of credit or letter of guarantee issued to support such Debt; provided that the term
“Guaranty” shall not include endorsements for collection or deposit in the ordinary course of business. 

“HIC” means The Hanover Insurance Company, a property and casualty insurance company organized under the laws of New
Hampshire as a corporation. 
 “Hybrid Securities” means securities (i) that afford equity benefit to the
issuer thereof (under the procedures and guidelines of Standard & Poor’s) by having ongoing payment requirements that are more flexible than interest payments associated with conventional indebtedness for borrowed money and by being
contractually subordinated to such indebtedness and (ii) that require no repayments or prepayments and no mandatory redemptions or repurchases, in each case, prior to at least 91 days after the Maturity Date. 

“Hybrid Securities Amount” means, at any time and for any issuance of Hybrid Securities, the aggregate outstanding face
amount of such Hybrid Securities at such time. 
 “IFRS” means international accounting standards within the
meaning of IAS Regulation 1606/2002 to the extent applicable to the relevant financial statements. 
 “Indemnified
Party” has the meaning specified in Section 8.04(b). 
 “Insurance Regulatory Authority” means,
for any Insurance Subsidiary, the insurance department or similar administrative authority or agency located in 

  
 12 

 
the state in which such Insurance Subsidiary is domiciled (including “commercially domiciled” as that term is defined under relevant state law). 

“Insurance Subsidiary” means a Subsidiary of the Borrower that is licensed to do a property and casualty insurance
business. 
 “Interest Period” means, with respect to any Eurodollar Loan, the period beginning on the date
such Eurodollar Loan is made or Continued, or Converted from an ABR Loan, and ending on the last day of the period selected by the Borrower pursuant to the provisions below. The duration of each Interest Period shall be one, two, three, six, or with
the consent of all of the Lenders, nine or twelve months, as the Borrower may, upon notice received by the Administrative Agent not later than 11:00 A.M. (New York City time) on the third Business Day prior to the first day of such Interest Period,
select; provided that: 
 (i) the Borrower may not select any Interest Period that ends after the Maturity
Date then in effect; 
 (ii) each Interest Period that begins on the last Business Day of a calendar month (or on
any day for which there is no numerically corresponding day in the appropriate subsequent calendar month) shall end on the last Business Day of the appropriate subsequent calendar month; and 

(iii) whenever the last day of any Interest Period would otherwise occur on a day other than a Business Day, the last day
of such Interest Period shall be extended to occur on the next succeeding Business Day; provided that, if such extension would cause the last day of such Interest Period to occur in the next following calendar month, the last day of such
Interest Period shall occur on the next preceding Business Day. 
 “IRS” has the meaning specified in
Section 2.13(e). 
 “Lenders” means the Lenders listed on the signature pages hereof and each Person that
shall become a party hereto as a “Lender” pursuant to Section 8.06. 
 “Leverage Ratio” means,
at any time, the ratio of (i) Modified Total Debt to (ii) Total Capitalization. 
 “Lien” means any
lien, security interest or other charge or encumbrance of any kind, or any other type of preferential arrangement, including, without limitation, the lien or retained security title of a conditional vendor. 

“Loan” has the meaning set forth in Section 2.01(a). 

  
 13 

 “London Banking Day” means any day on which commercial banks are open for
business (including dealings in foreign exchange and foreign currency deposits) in London. 
 “Long Stop Date”
means October 31, 2011. 
 “Major Covenant” means, solely as they relate to, including for the avoidance
of doubt by virtue of a procurement obligation under the covenants referred to in this definition, the Borrower, UK Holdco and the Borrower’s Material Subsidiaries (and, for the avoidance of doubt, excluding any members of the Company Group),
the covenants set forth in Sections 5.03(a), (b) to the extent arising from a voluntary act by the Borrower, UK Holdco, or a Material Subsidiary of the Borrower, excluding Liens securing obligations in an aggregate amount of less than
$10,000,000, (c) (in relation to Persons that are not publicly listed and as if the reference therein to no “Default” were a reference to no “Major Default”), (d) (excluding any compulsory acquisitions or takings by any
Governmental Authority), (g) (to the extent such breach was a voluntary breach and could reasonably be expected to have a material adverse affect on the ability of the Borrower to perform its payment obligations under this Agreement),
(h) (other than Restricted Payments of the type referred to in clause (b) of the definition thereof to the extent the aggregate principal amount thereof does not exceed $10,000,000) or (i) and Section 5.01(h) (other than clauses
(viii), (ix), (x), (xiii)(y), and (xiv) thereof). 
 “Major Default” means, solely in relation to the
Borrower, UK Holdco and the Borrower’s Material Subsidiaries only (and, for the avoidance of doubt, excluding any members of the Company Group), the occurrence of an Event of Default pursuant to Section 6.01(a), (e), (f) (solely with
respect to the Borrower and the Material Subsidiaries), (i)(y) or (j). 
 “Majority Lenders” means, at any
time, Lenders holding more than 50% of the aggregate outstanding principal amount of the Loans or, if no Loans are outstanding, Lenders having more than 50% of the aggregate amount of the Commitments as most recently in effect. 

“Major Representation” means, solely in relation to the Borrower, UK Holdco and the Borrower’s Material
Subsidiaries only (and, for the avoidance of doubt, excluding the any members of the Company Group), each of the representations and warranties set forth in Sections 4.01(c), (e), (f), (g) (excluding the last sentence thereof),
(j) (excluding the last sentence thereof), (l) and (o)(iii); provided that a breach of the representation in Sections 4.01(g)(ii) and 4.01(g)(iii) shall only constitute a breach of a Major Representation to the extent such breach
could reasonably be expected to have a Material Adverse Effect 
 “Margin Stock” means margin stock within the
meaning of Regulation U. 

  
 14 

 “Material Adverse Change” or “Material Adverse Effect”
means a material adverse change in or effect on (i) the business, condition (financial or otherwise) or results of operations of the Borrower and its Subsidiaries, taken as a whole, or (ii) the ability of the Borrower to perform its
obligations under this Agreement, or (iii) the legality, validity or enforceability of this Agreement (except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization or other similar laws affecting enforcement
of creditors rights generally or general principles of equity). 
 “Material Debt” has the meaning specified in
Section 6.01(d). 
 “Material Subsidiary” means (x) for the purpose of the definition of Major
Covenant, Major Default, Major Representation and the condition set forth in Section 3.02(e)(ii) and (iii), any Subsidiary of the Borrower (excluding any member of the Company Group) (i) the book value of whose assets constitutes 10% or
more of the book value (determined on a Consolidated Basis) of the total assets of the Borrower and its Subsidiaries, determined based on the audited consolidated balance sheet of the Borrower as of December 31, 2010 (each, a “Signing
Date Material Subsidiary”), or (ii) to or in which any Signing Date Material Subsidiary (or any other Subsidiary that becomes a Material Subsidiary by virtue of this clause (ii)) shall have sold, assigned, invested or otherwise
transferred all or any substantial portion of its assets and (y) otherwise, any Subsidiary of the Borrower the book value of whose assets constitutes 3% or more of the book value (determined on a Consolidated basis) of the total assets of the
Borrower and its Subsidiaries. 
 “Maturity Date” means the date that is 364 days after the Closing Date or, if
such day is not a Business Day, the immediately preceding Business Day. 
 “Modified Total Debt” means, at any
time, the sum of the following: 
 (a) Total Debt plus 

(b) the amount (if any) by which the aggregate outstanding amount of all Hybrid Securities that is attributed to Net Worth pursuant to
clause (b) of the definition of “Net Worth” exceeds 15% of Total Capitalization. 

“Moody’s” means Moody’s Investors Service, Inc. and its successors. 

“Moody’s Rating” means, at any time, the rating of the Borrower’s senior, unsecured, non-credit-enhanced,
long-term debt obligations then outstanding most recently announced by Moody’s. 
 “Multiemployer Plan”
means a multiemployer plan as defined in section 4001(a)(3) of ERISA. 

  
 15 

 “NAIC” means the National Association of Insurance Commissioners or any
successor thereto, or in lieu thereof, any other association, agency or other organization performing substantially similar advisory, coordination or other like functions among insurance departments, insurance commissions and similar governmental
authorities of the various states of the United States of America toward the promotion of uniformity in the practices of such governmental authorities. 
 “Net Cash Proceeds” means, (a) in connection with any Asset Sale or any Property Loss Event, the proceeds thereof received by the Borrower or any Subsidiary in the form of cash and
cash equivalents (including any such proceeds received by way of deferred payment of principal pursuant to a note or installment receivable or purchase price adjustment receivable or otherwise, but only as and when received), net of attorneys’
fees, accountants’ fees, investment banking fees, amounts required to be applied to the repayment of Debt secured by a Lien expressly permitted hereunder on any asset that is the subject of such Asset Sale or Property Loss Event and other
customary fees and expenses actually incurred in connection therewith and net of taxes (including taxes arising out of the distribution or deemed distribution of such cash proceeds by any Foreign Subsidiary to the Borrower or any Subsidiary that is
not a Foreign Subsidiary) paid or reasonably estimated to be payable as a result thereof (after taking into account any actual tax benefit currently realized with respect to any available tax credits or deductions and any tax sharing arrangements);
provided that in the case of the proceeds of a Property Loss Event, if (x) the Borrower shall deliver a certificate of a Responsible Officer to the Administrative Agent prior to receipt thereof setting forth the Borrower’s intent to
reinvest such proceeds in productive assets of a kind then used or usable in the business of the Borrower and its Subsidiaries within 180 days of receipt of such proceeds and (y) no Default or Event of Default shall have occurred and shall be
continuing at the time of such certificate or at the proposed time of the application of such proceeds, such proceeds shall not constitute Net Cash Proceeds except to the extent not so used prior to the end of such 180-day period, at which time such
proceeds shall be deemed to be Net Cash Proceeds; and provided further that (i) no proceeds of any Asset Sale shall constitute Net Cash Proceeds except to the extent in excess of $50,000,000 in the aggregate for all such Asset Sales and
(ii) no proceeds of any Property Loss Event shall constitute Net Cash Proceeds except to the extent in excess of $10,000,000 in the aggregate for all such Property Loss Events and (b) in connection with any Equity Issuance or any Debt
Incurrence, the cash proceeds received by the Borrower or any Subsidiary from such issuance or incurrence, net of attorneys’ fees, investment banking fees, accountants’ fees, underwriting discounts and commissions and other customary fees
and expenses actually incurred in connection therewith and net of taxes (including taxes arising out of the distribution of such cash proceeds by a Foreign Subsidiary directly to the Borrower or any Subsidiary that is not a Foreign Subsidiary) paid
or reasonably 

  
 16 

 
estimated to be payable as a result thereof (after taking into account any available tax credits or deductions and any tax sharing arrangements). Notwithstanding the foregoing, no proceeds of any
Prepayment Event consummated by any Insurance Subsidiary shall constitute Net Cash Proceeds to the extent such Net Cash Proceeds are received by such Insurance Subsidiary and are not permitted by applicable law to be (and are not) distributed (as a
dividend as otherwise) to the Borrower or a Subsidiary that is not an Insurance Subsidiary. It is understood and agreed that any Asset Sale that takes the form of an issuance of Equity Interests by an Insurance Subsidiary shall be deemed to have
been consummated by (and the proceeds received by) the immediate parent of such Insurance Subsidiary and not by such Insurance Subsidiary. 
 “Net Equity Proceeds” means, with respect to any Equity Issuance, the aggregate amount of all cash received by the Borrower and its Subsidiaries in respect of such Equity Issuance net of
all reasonable fees and expenses incurred by the Borrower and its Subsidiaries in connection therewith. 
 “Net
Worth” means, at any time, the sum of the following for the Borrower and its Subsidiaries (determined on a Consolidated basis without duplication in accordance with GAAP): 

(a) total shareholders’ equity of the Borrower determined in accordance with GAAP; provided the net unrealized appreciation
and depreciation of securities that are classified as available for sale and are subject to ASC 320 shall be excluded, plus 
 (b) solely for purposes of determining “Total Capitalization”, an amount equal to the amount obtained by summing the products obtained by multiplying the Hybrid Securities Amount for each
issuance of Hybrid Securities by the Standard & Poor’s Equity Percentage for such Hybrid Securities. 

“Non-Public Information” means information which has not been disseminated in a manner making it available to investors
generally, within the meaning of Regulation FD. 
 “Note” has the meaning specified in Section 2.17.

 “Notice of Borrowing” has the meaning specified in Section 2.02(a). 

“Offer” means a contractual takeover offer within the meaning of Section 974 of the Companies Act made by UK Holdco
to effect the Acquisition. 
 “Offer Document” means the document to be sent to the shareholders of the Company
in order to make the Offer. 

  
 17 

 “Offer Press Release” has the meaning assigned specified in
Section 5.01(h)(xi). 
 “Offer Unconditional Date” means the date on which the Offer is declared
unconditional in all respects. 
 “Other Taxes” has the meaning specified in Section 2.13(b). 

“Participant” has the meaning specified in Section 8.06(d). 

“Participating Member State” means any member state of the European Communities that adopts or has adopted the euro as
its lawful currency in accordance with legislation of the European Community relating to Economic and Monetary Union. 

“PATRIOT Act” means The Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and
Obstruct Terrorism Act of 2001 (Title III of Pub. L. No. 107-56 (signed into law October 26, 2001)). 

“PBGC” means the Pension Benefit Guaranty Corporation or any successor. 

“Participants Register” has the meaning specified in Section 8.06(d). 

“Permanent Financing” means, collectively, any Debt (other than under this Agreement) incurred and any Equity Interests
or Equity-Linked Securities issued in connection with the Transactions. 
 “Permitted Assignee” means each
financial institution or other Person identified to the Arranger in writing by the Borrower on or prior to the Signing Date. 

“Permitted Liens” means any of the following Liens: 

(a) Liens imposed by any governmental authority for taxes, assessments or charges not yet due or that are being contested in good faith
and by appropriate proceedings; 
 (b) carriers’, warehousemen’s, mechanics’, materialmen’s,
repairmen’s or other like Liens arising in the ordinary course of business that are not overdue for a period of more than 60 days or that are being contested in good faith and by appropriate proceedings and Liens securing judgments but only to
the extent not resulting in an Event of Default under Section 6.01(g) hereof; 
 (c) pledges or deposits made (i) in
connection with, or to secure payment of, worker’s compensation, unemployment insurance, old age pensions, 

  
 18 

 
other social security legislation and other statutory obligations and in each case in compliance therewith, (ii) to secure in the ordinary course of business the performance of bids,
tenders, contracts or leases, (iii) to secure surety or appeal bonds in the ordinary course of business, (iv) to secure indemnity, performance or other similar bonds in the ordinary course of business, or (v) in connection with
contested amounts in the ordinary course of business; 
 (d) encumbrances in the nature of (i) easements,
(ii) rights-of-way, (iii) zoning restrictions, (iv) licenses, (v) restrictions on the use of property or minor imperfections in title thereto, (vi) landlords’ and lessors’ Liens on rented premises, and
(vii) restrictions on transfers or assignment of leases, which in each case do not secure monetary obligations and do not in any case materially detract from the value of the property subject thereto or interfere with the ordinary conduct of
the business of the Borrower or any of its Subsidiaries; 
 (e) Liens arising under escrows, trusts, custodianships, separate
accounts, funds withheld procedures, and similar deposits, arrangements, or agreements established with respect to insurance policies, annuities, guaranteed investment contracts and similar products underwritten by, or Reinsurance Agreements entered
into by, the Borrower or any Insurance Subsidiary in the ordinary course of business; 
 (f) deposits with Insurance Regulatory
Authorities; 
 (g) Liens arising pursuant to the Escrow Agreement and Liens on cash or cash equivalents securing any foreign
exchange swap or similar transaction entered into in connection with the Transaction; 
 (h) Liens on Property of any
corporation that becomes a Subsidiary of the Borrower after the date hereof, provided that such Liens are in existence at the time such corporation becomes a Subsidiary of the Borrower and were not created in anticipation thereof; 

(i) Liens upon real and/or tangible personal Property acquired after the date hereof (by purchase, construction or otherwise) by the
Borrower or any of its Subsidiaries, each of which Liens either (A) existed on such Property before the time of its acquisition and was not created in anticipation thereof or (B) was created solely for the purpose of securing Debt
representing, or incurred to finance, refinance or refund, the cost (including the cost of construction) of such Property, provided that no such Lien shall extend to or cover any Property of the Borrower or such Subsidiary other than the
Property so acquired and improvements thereon; 
 (j) Liens on securities or financial instruments arising out of repurchase
agreements with respect to securities and financial instruments having 

  
 19 

 
an aggregate fair market value of not more than $100,000,000 and entered into in the ordinary course of business and on ordinary business terms; 

(k) the sale of delinquent accounts receivable for collection in the ordinary course of business; 

(l) Liens in existence on the date hereof and set forth in Schedule II (and renewals and replacements thereof if the amount secured
thereby is not increased); and 
 (m) Liens in favor of a Federal Home Loan Bank to secure borrowings from such Federal Home
Loan Bank in the ordinary course of business and on ordinary business terms pursuant to a membership in such Federal Home Loan Bank. 
 “Person” means an individual, partnership, corporation (including a business trust), limited liability company, joint stock company, trust, unincorporated association, joint venture or
other entity, or a government or any political subdivision or agency thereof. 
 “Plan” means an employee
benefit or other plan established or maintained by the Borrower or any ERISA Affiliate and that is covered by Title IV of ERISA, including a Multiemployer Plan. 
 “Platform” has the meaning specified in the final paragraph of Section 5.01(a). 
 “Prepayment Event” means any Asset Sale, any Property Loss Event, any Debt Incurrence and any Equity Issuance. 
 “Press Release” means the press release announcing, in compliance with Rule 2.5 of the Takeover Code, a firm intention to proceed with the Scheme. 

“Prime Rate” means the rate of interest quoted in the print edition of The Wall Street Journal, Money Rates
Section as the Prime Rate (currently defined as the base rate on corporate loans posted by at least 75% of the nation’s thirty (30) largest banks), as in effect from time to time. The Prime Rate is a reference rate and does not necessarily
represent the lowest or best rate actually charged to any customer. The Administrative Agent or any other Lender may make commercial loans or other loans at rates of interest at, above or below the Prime Rate. 

“Property” of any Person means any property or assets, or interest therein, of such Person. 

  
 20 

 “Property Loss Event” means any loss of or damage to Property of, or any
taking of the Property of the Borrower or any of its Subsidiaries, for which such Person receives insurance proceeds, or other compensation. 
 “Public Lenders” means Lenders that do not wish to receive material non-public information with respect to the Borrower, its Subsidiaries or their securities. 

“Rating Level Change” means a change in the Moody’s Rating or the Standard & Poor’s Rating (other
than as a result of a change in the rating system of such rating agency) that results in the change from one Rating Level Period to another, which Rating Level Change shall be effective on the date on which the relevant change in such rating is
first announced by Moody’s or Standard & Poor’s, as the case may be. 
 “Rating Level
Period” means a Rating Level 1 Period, a Rating Level 2 Period, a Rating Level 3 Period, a Rating Level 4 Period or a Rating Level 5 Period; provided that: 
 (i) “Rating Level 1 Period” means a period during which the Moody’s Rating is at or above Baa1 or the Standard & Poor’s Rating is at or above BBB+; 

(ii) “Rating Level 2 Period” means a period that is not a Rating Level 1 Period during which the Moody’s Rating is
at or above Baa2 or the Standard & Poor’s Rating is at or above BBB; 
 (iii) “Rating Level 3
Period” means a period that is not a Rating Level 1 Period or a Rating Level 2 Period during which the Moody’s Rating is at or above Baa3 or the Standard & Poor’s Rating is at or above BBB-; 

(iv) “Rating Level 4 Period” means a period that is not a Rating Level 1 Period, a Rating Level 2 Period or a Rating
Level 3 Period during which the Moody’s Rating is at or above Ba1 or the Standard & Poor’s Rating is at or above BB+; and 
 (v) “Rating Level 5 Period” means each period other than a Rating Level 1 Period, a Rating Level 2 Period, a Rating Level 3 Period or a Rating Level 4 Period, and shall include each
period during which neither the Moody’s Rating nor the Standard & Poor’s Rating shall be in effect; 
 and provided
further that if the Moody’s Rating and the Standard & Poor’s Rating differ by more than one rating level, then the Rating Level Period shall be one Rating Level Period lower than the Rating Level Period resulting from the
application of the higher of such ratings (for which purpose Rating Level Period 1 

  
 21 

 
is the highest Rating Level Period and Rating Level 5 Period is the lowest Rating Level Period). 
 “Ratings Condition” has the meaning specified in Section 2.03(b). 
 “Reference Bank” means Wells Fargo Bank, National Association. 

“Register” has the meaning specified in Section 8.06(c). 

“Regulation D” means Regulation D issued by the Board of Governors of the Federal Reserve System, as from time to time
amended. 
 “Regulation FD” means Regulation FD as promulgated by the U.S. Securities and Exchange Commission
under the Securities Act of 1933 and the Securities and Exchange Act of 1934 as in effect from time to time. 

“Regulations T, U and X” means Regulations T, U and X issued by the Board of Governors of the Federal Reserve System, as
from time to time amended. 
 “Reinsurance Agreement” means any agreement, contract, treaty or other
arrangement whereby other insurers assume insurance from the Borrower or any Insurance Subsidiary. 
 “Responsible
Officer” of the Borrower means the President, the Chief Executive Officer, the Chief Financial Officer, the Treasurer, any Executive Vice President, any Senior Vice President, or any Vice President of the Borrower. 

“Restricted Payments” means (a) any dividend or other distribution (whether in cash, securities or other property)
with respect to any Equity Interests in any Person, or any payment (whether in cash, securities or other property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or
termination of any such Equity Interests in such Person or any option, warrant or other right to acquire any such Equity Interests in such Person and (b) any prepayment, redemption, purchase, defeasance or other satisfaction prior to the
scheduled maturity thereof in any manner of any Debt of any Person (it being understood that payments of regularly scheduled principal and interest payments shall not constitute a Restricted Payment). 

“Reuters Page LIBOR01” means Reuters Page LIBOR01 or such other page as may replace that page on that service for the
purpose of displaying London interbank offered rates of major banks. 
 “SAP” means the accounting procedures
and practices prescribed or permitted by the applicable Insurance Regulatory Authority. 

  
 22 

 “Scheme” means a scheme of arrangement made pursuant to Part 26 of the
Companies Act between the Company and the holders of the Company Shares and the related reduction of capital under section 649 of the Companies Act in relation to the cancellation of the entire issued share capital of the Company and the subsequent
issue of new shares in the Company to UK Holdco as contemplated by the Press Release and the Scheme Circular. 
 “Scheme
Circular” means the circular to the shareholders of the Company, issued, or to be issued, by the Company setting out the proposals for the Scheme. 
 “Scheme Effective Date” means the date on which a copy of the court order sanctioning the Scheme is duly filed on behalf of the Company with the Registrar of Companies in accordance with
section 899 of the Companies Act. 
 “Scheme Implementation Agreement” means the Implementation Agreement dated
April 20, 2011 (together with the schedules and exhibits thereto) by and between the Borrower, UK Holdco and the Company. 

“Signing Date” means the date this Agreement becomes effective in accordance with Sections 3.01 and 8.05.

 “Solvent” means, with respect to any Person at any time, that (a) the fair value of the Property of
such Person is greater than the total amount of liabilities (including without limitation contingent liabilities) of such Person, (b) the present fair saleable value of the Property of such Person is not less than the amount that will be
required to pay the probable liability of such Person on its debts as they become absolute and matured, (c) such Person does not intend to, and does not believe that it will, incur debts or liabilities beyond such Person’s ability to pay
as such debts and liabilities mature, and (d) such Person is not engaged in a business and is not about to engage in a business for which such Person’s Property would constitute an unreasonably small capital. 

“Standard & Poor’s” means Standard & Poor’s Ratings Service, presently a division of The
McGraw-Hill Companies, Inc., and its successors. 
 “Standard & Poor’s Debt Percentage” means, at
any time and for any issuance of Hybrid Securities, a percentage equal to (a) 100% minus (b) the Standard & Poor’s Equity Percentage for such Hybrid Securities at such time. 

“Standard & Poor’s Equity Percentage” means, at any time and for any issuance of Hybrid Securities, the
percentage of such Hybrid Securities that are deemed to constitute equity, as determined in accordance with Standard & Poor’s methodology at such time. 

  
 23 

 “Standard & Poor’s Rating” means, at any time, the rating of
the Borrower’s senior, unsecured, non-credit enhanced, long-term debt obligations then outstanding most recently announced by Standard & Poor’s. 
 “Statutory Statement” means, as to any Insurance Subsidiary, a statement of the condition and affairs of such Insurance Subsidiary, prepared in accordance with SAP, and filed with the
applicable Insurance Regulatory Authority. 
 “Subsidiary” means, with respect to any Person, any other Person
of which at least a majority of the securities or other ownership interests having by the terms thereof ordinary voting power to elect a majority of the board of directors or other persons performing similar functions of such other Person
(irrespective of whether or not at the time securities or other ownership interests of any other class or classes of such other Person shall have or might have voting power by reason of the happening of any contingency) is at the time directly or
indirectly owned or Controlled by such Person or one or more Subsidiaries of such first Person or by such first Person and one or more Subsidiaries of such first Person. 
 “Takeover Code” means the City Code on Takeovers and Mergers. 

“Taxes” has the meaning specified in Section 2.13(a). 

“Total Capitalization” means, at any time, the sum of (a) Total Debt plus (b) Net Worth. 

“Total Debt” means, at any time, an amount equal to the aggregate outstanding principal amount of Debt of the Borrower
and its Subsidiaries determined on a Consolidated basis without duplication in accordance with GAAP, provided that solely for purposes of determining “Total Debt” the aggregate outstanding principal amount of Debt attributed to all
Hybrid Securities shall be deemed to equal the amount obtained by summing the products obtained by multiplying the Hybrid Securities Amount for each issuance of Hybrid Securities by the Standard & Poor’s Debt Percentage for such Hybrid
Securities. 
 “Transactions” means (i) the Acquisition (including the Closing Date Contribution),
(ii) the execution, delivery and performance of this Agreement and/or the funding of the Loans hereunder, (iii) the Permanent Financing, (iv) the deposit of cash and securities in the Escrow Account as contemplated by the Escrow
Agreement, (v) payment of the Transaction Costs and (vi) the entry into any foreign exchange swap or similar transaction in connection with the foregoing. 

  
 24 

 “Transaction Costs” means fees and expenses incurred in connection with the
Transactions (except in connection with any Permanent Financing consummated after the Closing Date). 
 “Type”
refers to whether a Loan is an ABR Loan or a Eurodollar Loan. 
 “UK Holdco” means 440 Tessera Limited.

 “Voting Shares” means, with respect to any Person at any time, Equity Interests entitling the holder thereof
to vote generally in an election of directors or other individuals performing similar functions. 
 “Wholly-Owned
Subsidiary” means, with respect to any Person, any corporation, partnership, limited liability company or other entity of which all of the equity securities or other ownership interests (other than, in the case of a corporation,
directors’ qualifying shares) are directly or indirectly owned or Controlled by such Person or one or more Wholly-Owned Subsidiaries of such Person or by such Person and one or more Wholly-Owned Subsidiaries of such Person. 

“Withdrawal Liability” has the meaning specified in Part 1 of Subtitle E of Title IV of ERISA. 

Section 1.02. Terms Generally. The definitions of terms herein shall apply equally to the singular and plural forms of the
terms defined. 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 words “to” and “until” mean “to but
excluding”. 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”. Unless the context requires otherwise (a) 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 from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein), (b) any reference herein to any Person shall be construed to include such
Person’s successors and assigns, (c) the words “herein”, “hereof” and “hereunder”, and words of similar import shall be construed to refer to this Agreement in its entirety and not to any particular provision
hereof, and (d) all references herein to Articles, Sections, Annexes, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Annexes, Exhibits and Schedules to, this Agreement. 

Section 1.03. Captions. The table of contents, captions, and section headings appearing herein are included solely for
convenience of reference and are not intended to affect the interpretation of any provision of this Agreement. 

  
 25 

 Section 1.04. Accounting Terms; GAAP. Except as otherwise expressly provided
herein, all terms of an accounting or financial nature shall be construed in accordance with GAAP, as in effect from time to time; provided, that if the Borrower notifies the Administrative Agent that it requests an amendment to any provision
hereof to eliminate the effect of any change occurring after the date hereof in GAAP or in the application thereof on the operation of such provision (or if the Administrative Agent notifies the Borrower that the Majority Lenders request an
amendment to any provision hereof for such purpose), regardless of whether any such notice is given before or after such change in GAAP or in the application thereof, then such provision shall be interpreted on the basis of GAAP as in effect and
applied immediately before such change shall have become effective until such notice shall have been withdrawn or such provision amended in accordance herewith. To enable the ready and consistent determination of compliance with the covenants set
forth in Section 5.02, the Borrower will cause the last day of its fiscal year to be December 31. 
 ARTICLE 2

 AMOUNTS AND TERMS OF THE LOANS

 Section 2.01. The Loans. (a) Each Lender severally agrees, on and subject to the terms and conditions of
this Agreement, to make loans to the Borrower (each a “Loan” and, collectively, the “Loans”) on the Closing Date in Dollars in an aggregate amount not to exceed such Lender’s Commitment. Any amount borrowed
under this Section 2.01 and subsequently repaid or prepaid may not be reborrowed. 
 (b) Each Borrowing and each Conversion
or Continuation thereof (i) shall be in an aggregate amount not less than $10,000,000 or an integral multiple of $1,000,000 in excess thereof and (ii) shall consist of Loans of the same Type (and, if such Loans are Eurodollar Loans, having
the same Interest Period) made, Continued or Converted on the same day by the Lenders ratably according to their respective Commitments. 
 Section 2.02. Making the Loans. 
 (a) (i) Each Borrowing shall be made
on notice, given not later than 11:00 A.M. (New York City time) on the third Business Day prior to the date of such Borrowing (in the case of a Borrowing consisting of Eurodollar Loans) or given not later than 11:00 A.M. (New York City time) on the
Business Day prior to the date of such Borrowing (in the case of a Borrowing consisting of ABR Loans), by the Borrower to the Administrative Agent, which shall give to each Lender prompt notice thereof. 

  
 26 

 (ii) Each such notice of a Borrowing (a “Notice of
Borrowing”) shall be in substantially the form of Exhibit A, specifying therein the requested (i) date of such Borrowing, (ii) Type of Loans comprising such Borrowing, (iii) aggregate amount of such Borrowing, and
(iv) in the case of a Borrowing consisting of Eurodollar Loans, initial Interest Period for each such Loan. There shall be not more than eight (8) Interest Periods outstanding at any time. 

(iii) Each Lender shall, before 2:00 P.M. (New York City time) on the date of such Borrowing, make available for the
account of its Applicable Lending Office to the Administrative Agent at its address referred to in Section 8.02, in immediately available funds, such Lender’s ratable portion of such Borrowing. 

(iv) After the Administrative Agent’s receipt of such funds and subject to fulfillment of the applicable conditions
set forth in Article 3, the Administrative Agent will make such funds available to the Borrower at the Administrative Agent’s aforesaid address. 
 (b) Each Notice of Borrowing shall be irrevocable and binding on the Borrower. In the case of any Borrowing which the related Notice of Borrowing specifies is to be comprised of Eurodollar Loans, the
Borrower shall indemnify each Lender against any loss, cost or expense incurred by such Lender as a result of any failure to make such Borrowing (including, without limitation, as a result of any failure to fulfill, on or before the date specified
in such Notice of Borrowing, the applicable conditions set forth in Article 3) and the liquidation or reemployment of deposits or other funds acquired by such Lender to fund the Loan to be made by such Lender as part of such Borrowing. A certificate
as to the amount of such losses, costs and expenses, submitted to the Borrower and the Administrative Agent by such Lender, shall be conclusive and binding for all purposes, absent manifest error. 

(c) Unless the Administrative Agent shall have received notice from a Lender prior to the date of any Borrowing that such Lender will not
make available to the Administrative Agent such Lender’s ratable portion of such Borrowing, the Administrative Agent may assume that such Lender has made such portion available to the Administrative Agent on the date of such Borrowing in
accordance with clause (a) of this Section 2.02 and the Administrative Agent may, in reliance upon such assumption, make available to the Borrower on such date a corresponding amount. If and to the extent that such Lender shall not have so
made such ratable portion available to the Administrative Agent, such Lender and the Borrower severally agree to repay to the Administrative Agent forthwith on demand (but without duplication) such corresponding amount together with interest
thereon, for each day from the date such amount is made available to the Borrower until the date such amount is repaid to the Administrative Agent, at (i)

  
 27 

 
in the case of the Borrower, the interest rate applicable at the time to Loans comprising such Borrowing and (ii) in the case of such Lender, the Federal Funds Rate. If such Lender shall
repay to the Administrative Agent such corresponding amount, such amount so repaid shall constitute such Lender’s Loan as part of such Borrowing for purposes of this Agreement (and such Loan shall be deemed to have been made by such Lender on
the date on which such amount is so repaid to the Administrative Agent). 
 (d) The failure of any Lender to make the Loan to be
made by it as part of any Borrowing shall not relieve the other Lenders of their obligations hereunder to make a Loan on the date of such Borrowing, and no Lender shall be responsible for the failure of any other Lender to make the Loan to be made
by such other Lender on the date of any Borrowing. The amounts payable at any time hereunder to each Lender shall be a separate and independent debt and each Lender shall be entitled to protect and enforce its rights under this Agreement, and it
shall not be necessary for any other Lender to be joined as an additional party in any proceedings for such purpose. 

Section 2.03. Certain Fees. 
 (a) Commitment Fee. The Borrower agrees to pay to the Administrative Agent for the account of each Lender a commitment fee (the “Commitment Fee”) on the daily average unused amount
of such Lender’s Commitment from the date that is 90 days after the Signing Date until the Commitment Termination Date at a rate per annum equal to the Applicable Commitment Fee Rate. The Commitment Fee shall be due and payable on the
Commitment Termination Date. 
 (b) Duration Fee. The Borrower agrees to pay to the Administrative Agent for the account
of each Lender a duration fee (the “Duration Fee”) payable on each of the dates set forth below in an amount equal to the applicable percentage set forth below of the aggregate principal amount of the Loans of such Lender
outstanding on such date. 
  

									
	 Date
	  	Duration Fee	 
	  	If Ratings Condition
satisfied on such date	 	 	If Ratings Condition not
satisfied on such date	 
	
90th day following the Closing Date
	  	 	0.75	% 	 	 	1.25	% 
	
180th day following the Closing Date
	  	 	1.25	% 	 	 	1.75	% 

  
 28 

									
	
270th day following the Closing Date
	  	 	1.75	% 	 	 	2.25	% 

 The “Ratings
Condition” shall be satisfied, as of any date of determination, if the Moody’s Rating is Baa3 or better, the Standard & Poor’s Rating is BBB- or better and each of CIC and HIC has an A.M. Best Financial Strength Rating of
A or better. 
 (c) Administrative Agent’s Fee. The Borrower agrees to pay to the Administrative Agent for the
Administrative Agent’s own account an annual administrative agency fee at the times and in the amounts heretofore agreed between the Borrower and the Administrative Agent in the Agent Fee Letter. 

(d) Other Fees. The Borrower agrees to pay to the other parties hereto (and their respective Affiliates) fees in the amounts and
on the dates previously agreed to in writing by the Borrower and such parties (or their respective Affiliates) in the Fee Letters. 
 (e) Payments. Fees paid hereunder shall not be refundable under any circumstances. 
 Section 2.04. Termination and Reduction of the Commitments.  
 (a) The
Commitment of each Lender shall be automatically reduced to zero on the earliest to occur of (i) the Commitment Termination Date and (ii) the funding of such Lender’s Loans. All accrued fees shall be due and payable on the date the
Commitments are reduced to zero. 
 (b) The Borrower shall have the right, prior to the Closing Date upon at least three
Business Days’ notice to the Administrative Agent, to terminate in whole or reduce ratably in part the respective Commitments of the Lenders; provided that each partial reduction shall be in an aggregate amount of at least $2,500,000 or
an integral multiple of $1,000,000 in excess thereof. Once reduced or terminated, the Commitments may not be reinstated. 
 (c)
Upon the occurrence of any Prepayment Event prior to the Closing Date, the Borrower shall, within three Business Days, deposit 100% of the Net Cash Proceeds of such Prepayment Event into the Escrow Account, whereupon the Commitments shall
automatically be reduced in an aggregate amount equal to 100% of the Net Cash Proceeds of such Prepayment Event. Each Lender’s Commitment shall be reduced pro rata by the amount of such reduction. If such reductions results in the Commitments
being reduced to zero, all accrued fees shall be payable upon such reduction. Promptly (and in any event within three 

  
 29 

 
Business Days) following the occurrence of a Prepayment Event prior to the Closing Date, the Borrower shall deliver notice in writing to the Administrative Agent describing the Prepayment Event
and containing a reasonably detailed calculation of the Net Cash Proceeds of such Prepayment Event. In the event that the Closing Date occurs after the occurrence of such Prepayment Event but prior to the deposit of the Net Cash Proceeds thereof in
the Escrow Account, such Net Cash Proceeds shall be required to be applied to prepay the Loans in accordance with Section 2.09(c) on the last day of the three Business Day period referred to in this clause (c). For the avoidance of doubt, any
amount required to be credited to the Escrow Account denominated in a currency other than US dollars may be converted into US dollars by or on behalf of the Borrower and this Section 2.04(c) shall apply in respect of such converted amount.

 Section 2.05. Repayment. The Borrower shall repay the full principal amount of each Loan (together with accrued
interest thereon and fees in respect thereof) on the Maturity Date. 
 Section 2.06. Interest.  

(a) Ordinary Interest. The Borrower shall pay interest on the unpaid principal amount of each Loan, from the date of such Loan
until such principal amount shall be paid in full, at the following rates per annum: 
 (i) ABR Loans.
While such Loan is an ABR Loan, a rate per annum equal to the ABR in effect from time to time plus the Applicable Margin for ABR Loans as in effect from time to time, payable quarterly in arrears on the last Business Day of each March, June,
September and December and on the date such ABR Loan shall be Converted or paid in full. 
 (ii) Eurodollar
Loans. While such Loan is a Eurodollar Loan, a rate per annum for each Interest Period for such Loan equal to the sum of the Eurodollar Rate for such Interest Period plus the Applicable Margin for Eurodollar Loans as in effect from time
to time, payable on the last day of such Interest Period and, if such Interest Period has a duration of more than three months, on each of the days which occur at three-month intervals after the first day of such Interest Period, and on each date on
which such Eurodollar Loan shall be Continued, Converted or paid in full. 
 (b) Default Interest. Notwithstanding the
foregoing, if any Event of Default shall have occurred and be continuing, the Borrower shall pay interest on: 

(i) the unpaid principal amount of each Loan owing to each Lender, payable on demand (and in any event in arrears on the
dates referred to in Section 2.06(a)) at a rate per annum equal at all times to two 

  
 30 

 
percent (2%) per annum above the rate per annum required to be paid on such Loan pursuant to said Section 2.06(a); provided that if such Event of Default shall be continuing at
the end of any Interest Period for any Eurodollar Loan, such Loan shall forthwith be Converted to an ABR Loan bearing interest as aforesaid in this Section 2.06(b)(i); and 

(ii) the amount of any interest, fee or other amount payable hereunder that is not paid when due, from the date such
amount shall be due until such amount shall be paid in full, payable on demand (and in any event in arrears on the date such amount shall be paid in full), at a rate per annum equal at all times to two percent (2%) per annum above the rate per
annum required to be paid on ABR Loans pursuant to Section 2.06(a)(i) above. 
 (c) Additional Interest on Eurodollar
Loans. The Borrower shall pay to each Lender additional interest on the unpaid principal amount of each Eurodollar Loan of such Lender, from the date of such Loan until such principal amount is paid in full, at an interest rate per annum equal
at all times to the remainder obtained by subtracting (i) the Eurodollar Rate for each Interest Period for such Loan from (ii) the rate obtained by dividing such Eurodollar Rate by a percentage equal to 100% minus the Eurodollar
Rate Reserve Percentage of such Lender for such Interest Period, payable on each date on which interest is payable on such Loan. Such additional interest shall be determined by such Lender and notified to the Borrower through the Administrative
Agent. 
 Section 2.07. Interest Rate Determinations; Changes in Rating Systems. 

(a) The Reference Bank agrees, upon the request of the Administrative Agent, to furnish to the Administrative Agent timely information
for the purpose of determining each Eurodollar Rate. 
 (b) The Administrative Agent shall give prompt notice to the Borrower
and the Lenders of the applicable interest rates determined by the Administrative Agent for the purposes of Section 2.06. 

(c) If (1) the Reference Bank does not furnish timely information to the Administrative Agent for determining the Eurodollar Rate
for any Interest Period for any Eurodollar Loans and (2) the relevant rates can not otherwise be determined in accordance with clause (a) or (b) of the definition of Eurodollar Rate, 

(i) the Administrative Agent shall forthwith notify the Borrower and the Lenders that the interest rate cannot be
determined for such Eurodollar Loans for such Interest Period, 

  
 31 

 (ii) each Eurodollar Loan will automatically, on the last day of the then
existing Interest Period therefor, Convert into an ABR Loan, and 
 (iii) the obligation of the Lenders to make
or Continue, or to Convert Loans into, Eurodollar Loans shall be suspended until the Administrative Agent shall notify the Borrower and the Lenders that the circumstances causing such suspension no longer exist. 

(d) If, with respect to any Eurodollar Loans, the Majority Lenders notify the Administrative Agent that the Eurodollar Rate for any
Interest Period for such Loans will not adequately reflect the cost to such Majority Lenders of making, funding or maintaining their respective Eurodollar Loans for such Interest Period, the Administrative Agent shall forthwith so notify the
Borrower and the Lenders, whereupon: 
 (i) each Eurodollar Loan will automatically, on the last day of the then
existing Interest Period therefor, Convert into an ABR Loan, and 
 (ii) the obligation of the Lenders to make or
Continue, or to Convert Loans into, Eurodollar Loans shall be suspended until the Administrative Agent shall notify the Borrower and such Lenders that the circumstances causing such suspension no longer exist. 

(e) If the Borrower shall fail to select the duration of any Interest Period for any Eurodollar Loans in accordance with the provisions
contained in the definition of “Interest Period” in Section 1.01, the Administrative Agent will forthwith so notify the Borrower and the Lenders and such Loans will automatically, on the last day of the then existing Interest Period
therefor, Convert into ABR Loans. 
 (f) Upon the occurrence and during the continuance of any Event of Default, (x) each
Eurodollar Loan will automatically, on the last day of the then existing Interest Period therefor, Convert into a ABR Loan and (y) the obligation of the Lenders to make or Continue, or to Convert Loans into, Eurodollar Loans shall be suspended.

 (g) If the rating system of either Moody’s or Standard & Poor’s shall change, or if either such rating
agency shall cease to be in the business of rating corporate debt obligations, the Borrower and the Administrative Agent (on behalf of the Lenders) shall negotiate in good faith to amend the references to specific ratings in this Agreement to
reflect such changed rating system or the non-availability of ratings from such rating agency (provided that any such amendment to such specific ratings shall not be effective without the approval of the Majority Lenders). 

  
 32 

 Section 2.08. Voluntary Conversion and Continuation of Loans. 

(a) Optional Conversion. The Borrower may on any Business Day, upon notice given to the Administrative Agent not later than 11:00
A.M. (New York City time) on the third Business Day prior to the date of the proposed Conversion, Convert all or any portion of the outstanding Loans of one Type comprising part of the same Borrowing into Loans of the other Type; provided
that in the case of any such Conversion of a Eurodollar Loan into a ABR Loan on a day other than the last day of an Interest Period therefor, the Borrower shall reimburse the Lenders in respect thereof pursuant to Section 8.04(c). Each such
notice of a Conversion shall, within the restrictions specified above, specify (x) the date of such Conversion, (y) the Loans to be Converted, and (z) if such Conversion is into Eurodollar Loans, the duration of the initial Interest
Period for each such Loan. Each notice of Conversion shall be irrevocable and binding on the Borrower. 
 (b)
Continuations. The Borrower may, on any Business Day, upon notice given to the Administrative Agent not later than 11:00 A.M. (New York City time) on the third Business Day prior to the date of the proposed Continuation, Continue all or any
portion of the outstanding Eurodollar Loans comprising part of the same Borrowing for one or more Interest Periods; provided that in the case of any such Continuation on a day other than the last day of an Interest Period therefor, the
Borrower shall reimburse the Lenders in respect thereof pursuant to Section 8.04(c). Each such notice of a Continuation shall, within the restrictions specified above, specify (x) the date of such Continuation, (y) the Eurodollar
Loans to be Continued and (y) the duration of the initial Interest Period for the Eurodollar Loans subject to such Continuation. Each notice of Continuation shall be irrevocable and binding on the Borrower. 

Section 2.09. Prepayments of Loans.  
 (a) The Borrower shall have no right to prepay any principal amount of any Loans other than as provided in clause (b) below. 
 (b) The Borrower may, on notice given not later than 11:00 A.M. (New York City time) on the third Business Day prior to the date of the proposed prepayment (in the case of an Eurodollar Loans) or given
not later than 11:00 A.M. (New York City time) on the Business Day of the proposed prepayment (in the case of ABR Loans), stating the proposed date and aggregate principal amount of the prepayment, and if such notice is given the Borrower shall,
prepay the outstanding principal amounts of the Loans comprising part of the same Borrowing in whole or ratably in part, together with accrued interest to the date of such prepayment on the principal amount prepaid; provided, however,
that (x) each partial prepayment shall be in an aggregate principal amount not less than $2,500,000 or an integral multiple of $1,000,000 in excess thereof and (y) in the 

  
 33 

 
case of any such prepayment of a Eurodollar Loan on a day other than the last day of an Interest Period therefor, the Borrower shall reimburse the Lenders in respect thereof pursuant to
Section 8.04(c). 
 (c) Upon the occurrence of any Prepayment Event on or after the Closing Date, the Borrower shall prepay
Loans in an aggregate principal amount equal to 100% of the Net Cash Proceeds of such Prepayment Event. Borrower shall effect such prepayment within 3 Business Days of receipt of such Net Cash Proceeds. Such prepayment shall be accompanied by
accrued interest on the principal amount prepaid. Not less than three (3) Business Days prior to the date of such prepayment the Borrower shall deliver notice in writing to the Administrative Agent describing the Prepayment Event, specifying
the proposed date of prepayment and containing a reasonably detailed calculation of the Net Cash Proceeds of such Prepayment Event. 
 Section 2.10. Increased Costs. 
 (a) If, due to either (i) the
introduction of or any change (other than any change by way of imposition or increase of reserve requirements included in the Eurodollar Rate Reserve Percentage) in or in the interpretation, implementation or application of any law or regulation
(including any such change resulting from the enactment or issuance of any regulation or regulatory interpretation affecting an existing law or regulation) or (ii) the compliance with any guideline or request from any central bank or other
governmental authority (whether or not having the force of law), there shall be any increase in the cost to any Lender of agreeing to make or making, funding or maintaining Eurodollar Loans, then the Borrower shall from time to time, upon demand by
such Lender (with a copy of such demand to the Administrative Agent), pay to the Administrative Agent for the account of such Lender additional amounts sufficient to compensate such Lender for such increased cost. Notwithstanding anything in this
Section 2.10 to the contrary, compensable increased costs shall not include any such increased costs or reduction in amount resulting from (x) Taxes or Other Taxes subject to indemnification under Section 2.13 or (y) any taxes
with respect to payments made by the Borrower hereunder that are excluded from the definition of Taxes or Other Taxes pursuant to clauses (i) through (vi) of Section 2.13(a) (including by reason of the last sentence of
Section 2.13(e) or 2.13(g)). A certificate as to the amount of such increased cost, submitted to the Borrower and the Administrative Agent by such Lender, shall be conclusive and binding for all purposes, absent manifest error. 

(b) If any Lender determines that compliance with any law or regulation or any guideline or request from any central bank or other
governmental authority, (whether or not having the force of law), affects or would affect the amount of capital required or expected to be maintained by such Lender or any corporation Controlling such Lender and that the amount of such capital is
increased by or 

  
 34 

 
based upon the existence of such Lender’s Commitment or its Loans, then, upon demand by such Lender (with a copy of such demand to the Administrative Agent), the Borrower shall immediately
pay to the Administrative Agent for the account of such Lender, from time to time as specified by such Lender, additional amounts sufficient to compensate such Lender or such corporation in the light of such circumstances, to the extent that such
Lender reasonably determines such increase in capital to be allocable to the existence of such Lender’s Commitment hereunder. A certificate as to such amounts submitted to the Borrower and the Administrative Agent by such Lender shall be
conclusive and binding for all purposes, absent manifest error. 
 Section 2.11. Illegality. Notwithstanding any
other provision of this Agreement, if any Lender shall notify the Administrative Agent that the introduction of or any change in or in the interpretation of any law or regulation makes it unlawful, or any central bank or other governmental authority
asserts that it is unlawful, for such Lender or its Eurodollar Lending Office to perform its obligations hereunder to make or Continue Eurodollar Loans or to fund or otherwise maintain Eurodollar Loans hereunder, (i) the obligation of such
Lender to make or Continue, or to Convert Loans into, Eurodollar Loans shall be suspended until the Administrative Agent shall notify the Borrower and the Lenders that the circumstances causing such suspension no longer exist and (ii) each
Eurodollar Loan of such Lender shall Convert into an ABR Loan at the end of the then current Interest Period for such Eurodollar Loan. 
 Section 2.12. Payments and Computations.  
 (a) The Loans comprising
each Borrowing shall be made pro rata among the Lenders according to the amounts of their respective Commitments. All payments of principal of and interest on the Loans shall be made for the pro rata account of the Lenders based on the respective
outstanding principal amounts thereof, and all payments of Commitment Fees and Duration Fees shall be made for the pro rata account of the Lenders according to the amounts of their respective Commitments. 

(b) The Borrower shall make each payment hereunder without set-off or counterclaim not later than 11:00 A.M. (New York City time) on the
day when due in Dollars and immediately available funds to the Administrative Agent at its address referred to in Section 8.02. The Administrative Agent will promptly thereafter cause to be distributed like funds relating to the payment of
principal, interest, Commitment Fees or Duration Fees ratably (subject to Sections 2.02(b), 2.10, 2.13 and 8.04(c)) to the Lenders for the account of their respective Applicable Lending Offices, and like funds relating to the payment of any other
amount payable to any Lender to such Lender for the account of its Applicable Lending Office, in each case to be applied in accordance with the terms of this Agreement. Upon its acceptance of an Assignment and Acceptance and recording

  
 35 

 
of the information contained therein in the Register pursuant to Section 8.06(c), from and after the effective date specified in such Assignment and Acceptance, the Administrative Agent
shall make all payments hereunder in respect of the interest assigned thereby to the Lender assignee thereunder, and the parties to such Assignment and Acceptance shall make all appropriate adjustments in such payments for periods prior to such
effective date directly between themselves. 
 (c) All computations of interest based on the Prime Rate shall be made by the
Administrative Agent on the basis of a year of 365 or 366 days, as the case may be, for the actual number of days (including the first day but excluding the last day) occurring in the period for which such interest is payable. All computations of
interest based on the Eurodollar Rate or the Federal Funds Rate and of Commitment Fee and Duration Fee shall be made by the Administrative Agent on the basis of a year of 360 days, for the actual number of days (including the first day but excluding
the last day) occurring in the period for which such interest or fee is payable. Each determination by the Administrative Agent of an interest rate hereunder shall be conclusive and binding for all purposes, absent manifest error. 

(d) Whenever any payment hereunder would be due on a day other than a Business Day, such due date shall be extended to the next
succeeding Business Day, and any such extension of such due date shall in such case be included in the computation of payment of interest, Commitment Fee or Duration Fee as the case may be; provided however that if such extension would cause
payment of interest on or principal of or interest on any Eurodollar Loan to be made in the next following calendar month, such payment shall be made on the next preceding Business Day. 

(e) Unless the Administrative Agent shall have received notice from the Borrower prior to the date on which any payment is due to the
Lenders hereunder that the Borrower will not make such payment in full, the Administrative Agent may assume that the Borrower has made such payment in full to the Administrative Agent on such date and the Administrative Agent may, in reliance upon
such assumption, cause to be distributed to each Lender on such due date an amount equal to the amount then due such Lender. If and to the extent that the Borrower shall not have so made such payment in full to the Administrative Agent, each Lender
shall repay to the Administrative Agent forthwith on demand such amount distributed to such Lender together with interest thereon, for each day from the date such amount is distributed to such Lender until the date such Lender repays such amount to
the Administrative Agent, at the Federal Funds Rate. 
 Section 2.13. Taxes. 

  
 36 

 (a) Any and all payments by the Borrower hereunder shall be made free and clear of and
without deduction for any and all present or future taxes, levies, imposts, deductions, charges or withholdings, and all liabilities with respect thereto, excluding, (i) in the case of each Lender and the Administrative Agent, taxes imposed on
its income, and franchise taxes imposed on it, by the jurisdiction under the laws of which such Lender or the Administrative Agent (as the case may be) is organized or any political subdivision thereof; (ii) in the case of each Lender, taxes
imposed on its income, and franchise taxes imposed on it, by the jurisdiction of such Lender’s Applicable Lending Office or any political subdivision thereof; (iii) any taxes imposed by a jurisdiction as a result of any connection between
such Lender or Agent and such jurisdiction other than any connections arising from the execution, delivery, being party to, having engaged in any transactions pursuant to, performance of its obligations under, or enforcement of this Agreement;
(iv) any tax that is in effect and would apply to amounts payable hereunder at such time the Lender becomes a party to this Agreement, or designates a new Lending Office, except to the extent such Lender (or its assignor, if any) was entitled
at the time of designation of a new Lending Office (or assignment) to receive additional amounts with respect to such withholding tax pursuant to this Section 2.13; (v) taxes excluded from indemnification pursuant to the last sentence of
Section 2.13(e) or under Section 2.13(g); and (vi) any withholding tax to the extent imposed as a result of a failure by a Lender or Beneficial Owner of the payment to satisfy the conditions for avoiding withholding under FATCA (all
such non-excluded taxes, levies, imposts, deductions, charges, withholdings and liabilities being hereinafter referred to as “Taxes”). If the Borrower shall be required by law to deduct any Taxes from or in respect of any sum
payable hereunder to any Lender or the Administrative Agent, (x) the sum payable shall be increased as may be necessary so that after making all required deductions (including deductions applicable to additional sums payable under this
Section 2.13) such Lender or the Administrative Agent (as the case may be) receives an amount equal to the sum it would have received had no such deductions been made, (y) the Borrower shall make such deductions and (z) the Borrower
shall pay the full amount deducted to the relevant taxation authority or other authority in accordance with applicable law. 

(b) In addition, the Borrower agrees to pay any present or future transfer, stamp or documentary taxes or any other excise or property
taxes, charges or similar levies which arise from any payment made hereunder or from the execution, delivery or registration of, or otherwise with respect to, this Agreement, excluding, in each case, such amounts that result from an Agent’s or
Lender’s Assignment and Acceptance, grant of a participation, transfer or assignment to or designation of a new applicable Lending Office or other office receiving payments made hereunder (collectively, “Assignment Taxes”) except for
Assignment Taxes resulting from assignment or participation that is requested or 

  
 37 

 
required in writing by the Borrower (all such non-excluded taxes described in this Section 2.13(b) being hereinafter referred to as “Other Taxes”). 

(c) The Borrower will indemnify each Lender and the Administrative Agent for the full amount of Taxes or Other Taxes (including, without
limitation, any Taxes and Other Taxes imposed by any jurisdiction on amounts payable under this Section 2.13) paid by such Lender or the Administrative Agent (as the case may be) and any liability (including penalties, interest and expenses)
arising therefrom or with respect thereto, whether or not such Taxes or Other Taxes were correctly or legally asserted. This indemnification shall be made within 30 days from the date such Lender or the Administrative Agent (as the case may be)
makes written demand therefor. A certificate as to the amount of such Taxes and Other Taxes, submitted to the Borrower and the Administrative Agent by such Lender, shall be conclusive and binding (as between the Borrower, the Lenders and the
Administrative Agent) for all purposes, absent manifest error. 
 (d) Within 30 days after the date of any payment of Taxes (or,
if receipt or evidence are not available within 30 days, as soon as practicable thereafter), the Borrower will furnish to the Administrative Agent, at its address referred to in Section 8.02, the original or a certified copy of a receipt
evidencing payment thereof or other proof of payment of such Taxes reasonably satisfactory to the relevant Lender(s). If no Taxes are payable in respect of any payment hereunder, upon the request of the Administrative Agent the Borrower will furnish
to the Administrative Agent, at such address, a statement to such effect with respect to each jurisdiction designated by the Administrative Agent. 
 (e) Each Lender that is not a “U.S. person” as defined in section 7701(a)(30) of the Code, on or prior to the date of its execution and delivery of this Agreement (in the case of each Lender)
and on the date of the Assignment and Acceptance pursuant to which it becomes a Lender (in the case of each other Lender), and from time to time thereafter as required by law or as requested in writing by the Borrower (but only so long as such
Lender remains lawfully able to do so), shall provide the Borrower with an applicable Internal Revenue Service (“IRS”) Form W-8, as appropriate, or any successor form prescribed by the IRS, certifying that such Lender is entitled to
benefits under an income tax treaty to which the United States is a party which reduces the rate of withholding tax on payments of interest or certifying that the income receivable pursuant to this Agreement is effectively connected with the conduct
of a trade or business in the United States, or if a Lender is not the Beneficial Owner of any obligation of the Borrower (for example, where the Lender is a partnership or participating Lender granting a typical participation), duly completed
copies of IRS Form W-8IMY and the applicable IRS Form W-8 or W-9 from each Beneficial Owner. If the form(s) provided by a Lender at the time such Lender first becomes a party to this Agreement indicates a United States interest withholding tax rate
in excess of zero, 

  
 38 

 
withholding tax at such rate shall be considered excluded from “Taxes” as defined in Section 2.13(a). 
 (f) Each Lender that is a “U.S. person” under section 7701(a)(30) of the Code, on or prior to the date of its execution and delivery of this Agreement (in the case of each Lender) and on the
date of the Assignment and Acceptance pursuant to which it becomes a Lender (in the case of each other Lender), and from time to time thereafter as required by law or as requested in writing by the Borrower (but only so long as such Lender remains
lawfully able to do so), shall provide the Borrower with an IRS Form W-9 or any successor form certifying that such Lender is exempt from U.S. federal backup withholding tax. 
 (g) For any period with respect to which a Lender has failed to provide the Borrower with the appropriate form described in Section 2.13(e) or (f) (other than if such failure is due to a change
in law occurring subsequent to the date on which a form originally was required to be provided, or if such form otherwise is not required under the first sentence of clause (e) or (f) above), such Lender shall not be entitled to
indemnification under Section 2.13(a) with respect to Taxes imposed by the United States; provided however that should a Lender become subject to Taxes because of its failure to deliver a form required hereunder, the Borrower shall take
such steps as the Lender shall reasonably request to assist the Lender to recover such Taxes. 
 (h) Any Lender claiming any
additional amounts payable pursuant to this Section 2.13 shall use reasonable efforts (consistent with its internal policy and legal and regulatory restrictions) to change the jurisdiction of its Applicable Lending Office(s) if the making of
such a change would avoid the need for, or reduce the amount of, any such additional amounts that may thereafter accrue and would not, in the reasonable judgment of such Lender, be otherwise disadvantageous to such Lender. 

If any Lender determines, in its sole discretion, that it has received a refund in respect of any Taxes or Other Taxes as to which
indemnification or additional amounts have been paid to it by the Borrower pursuant to this Section 2.13, it shall promptly remit such refund to the Borrower, net of all out-of-pocket expenses of the Lender (including any taxes imposed by
reason of the receipt of such refund), as the case may be and without interest (other than any interest paid by the relevant taxing authority with respect to such refund net of any Taxes payable by any Lender on such interest); provided that
the Borrower, upon the request of the Lender agrees promptly to return such refund (plus any penalties, interest or other charges imposed by the relevant taxing authority) to the Lender in the event the Lender is required to repay such refund to the
relevant taxing authority. This Section shall not be construed to require the Administrative Agent or any Lender to make available its tax returns (or any other information relating to taxes that it deems confidential) to the Borrower or any other
person. 

  
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 Section 2.14. Set-Off; Sharing of Payments, Etc. 

(a) Without limiting any of the obligations of the Borrower or the rights of the Lenders hereunder, if the Borrower shall fail to pay
when due (whether at stated maturity, by acceleration or otherwise) any amount payable by it hereunder, each Lender is hereby authorized at any time and from time to time, to the fullest extent permitted by law, without prior notice to the Borrower
(which notice is expressly waived by the Borrower to the fullest extent permitted by applicable law), to set off and apply against such amount any and all deposits (general or special, time or demand, provisional or final, in any currency, matured
or unmatured) and any other obligations at any time held or owing by such Lender or any Subsidiary, Affiliate, branch or agency thereof to or for the credit or account of the Borrower. Such Lender shall promptly provide notice to the Borrower of
such set-off, provided, that failure by such Lender to provide such notice to the Borrower shall not give the Borrower any cause of action or right to damages or affect the validity of such set-off and application. The rights of each Lender
under this Section are in addition to any other rights and remedies (including, without limitation, any other rights of set-off) that such Lender may have. 
 (b) If any Lender shall obtain any payment (whether voluntary, involuntary, through the exercise of any right of set-off, or otherwise) on account of the Loans made by it (other than pursuant to
Section 2.02(b), 2.10, 2.13 or 8.04(c)) in excess of its ratable share of payments on account of the Loans obtained by all the Lenders, such Lender shall forthwith purchase from the other Lenders such participations in the Loans made by them as
shall be necessary to cause such purchasing Lender to share the excess payment ratably with each of them; provided however that if all or any portion of such excess payment is thereafter recovered from such purchasing Lender, such purchase
from each Lender shall be rescinded and such Lender shall repay to the purchasing Lender the purchase price to the extent of such recovery together with an amount equal to such Lender’s ratable share (according to the proportion of (i) the
amount of such Lender’s required repayment to (ii) the total amount so recovered from the purchasing Lender) of any interest or other amount paid or payable by the purchasing Lender in respect of the total amount so recovered. The Borrower
agrees that any Lender so purchasing a participation from another Lender pursuant to this Section 2.14 may, to the fullest extent permitted by law, exercise all its rights of payment (including the right of set-off) with respect to such
participation as fully as if such Lender were the direct creditor of the Borrower in the amount of such participation. 

Section 2.15. Right To Replace a Lender. If the Borrower is required to make any additional payment pursuant to
Section 2.10 or 2.13 to any Lender or if any Lender’s obligation to make or Continue, or to Convert Loans into, Eurodollar Loans shall be suspended pursuant to Section 2.11 (in each case, such Lender being an “Affected
Person”), the Borrower may elect, if such amounts 

  
 40 

 
continue to be charged or such suspension is still effective, to replace such Affected Person as a party to this Agreement; provided that, no Default or Event of Default shall have
occurred and be continuing at the time of such replacement; and provided further that, concurrently with such replacement, (i) another financial institution which is an Eligible Assignee and is reasonably satisfactory to the Borrower and
the Administrative Agent shall agree, as of such date, to purchase, at par, for cash the Loans of the Affected Person pursuant to an Assignment and Acceptance and to become a Lender for all purposes under this Agreement and to assume all obligations
(including all outstanding Loans) of the Affected Person to be terminated as of such date and to comply with the requirements of Section 8.06 applicable to assignments, and (ii) the Borrower shall pay to such Affected Person in same day
funds on the day of such replacement all interest, fees and other amounts then due and owing to such Affected Person by the Borrower hereunder to and including the date of termination, including without limitation payments due such Affected Person
under Section 2.10 and 2.13. 
 Section 2.16. Evidence of Debt. 

(a) Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing the indebtedness of the Borrower
to such Lender resulting from each Loan made by such Lender, including the amounts of principal and interest payable and paid to such Lender from time to time hereunder. 
 (b) The Administrative Agent shall maintain accounts in which it shall record (i) the date, amount, Type, interest rate and duration of Interest Period (if applicable) of each Loan made hereunder,
(ii) the amount of any principal or interest due and payable or to become due and payable from the Borrower to each Lender hereunder and (iii) the amount of any sum received by the Administrative Agent hereunder for the account of the
Lenders and each Lender’s share thereof. 
 (c) The entries made in the accounts maintained pursuant to clause (a) or
(b) of this Section 2.16 shall be prima facie evidence of the existence and amounts of the obligations recorded therein; provided that the failure of any Lender or the Administrative Agent to maintain such accounts or any error
therein shall not in any manner affect the obligation of the Borrower to repay the Loans in accordance with the terms of this Agreement. 
 Section 2.17. Notes. Any Lender may request that Loans made by it be evidenced by a promissory note. In such event, the borrower shall prepare, execute and deliver to such Lender a promissory
note payable to such Lender (or, if requested by such Lender, to such Lender and its registered assigns) and in a form approved by the Administrative Agent (each, a “Note”). Thereafter, the Loans evidenced by such promissory note
and interest thereon shall at all times 

  
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(including after assignment pursuant to Section 8.06) be represented by one or more promissory notes in such form payable to the payee named therein (or, if such promissory note is a
registered note, to such payee and its registered assigns). 
 ARTICLE 3 

CONDITIONS OF LENDING 

Section 3.01. Conditions Precedent to Effectiveness. The effectiveness of this Agreement on the Signing Date is subject to
the condition precedent that the Administrative Agent shall have received the following, each in form and substance reasonably satisfactory to the Administrative Agent: 
 (a) This Agreement and the Fee Letters, duly executed and delivered by the Borrower and each of the other parties hereto or thereto. 

(b) Notes executed by the Borrower in favor of each Lender requesting Notes. 

(c) Copies, certified by the Secretary or an Assistant Secretary, of (x) the certificate of incorporation and by-laws of the
Borrower, (y) the resolutions of the board of directors of the Borrower authorizing this Agreement and the transactions contemplated hereby (including the Transactions, save for part (iii) of that definition), and (z) all documents
evidencing other necessary corporate action and governmental approvals, if any, with respect to this Agreement. 
 (d) A
certificate of the Secretary or an Assistant Secretary of the Borrower certifying the names and true signatures of the officers of the Borrower authorized to sign this Agreement and the documents to be delivered hereunder. 

(e) A certificate from the Secretary of State of the State of Delaware dated a date reasonably close to the date hereof as to the good
standing of and charter documents filed by the Borrower. 
 (f) A favorable opinion of Ropes and Gray LLP, special New York
counsel to the Borrower, and a favorable opinion of the Group Counsel, Corporate of the Borrower. 
 (g) A certificate of a
Responsible Officer of the Borrower certifying that (i) no Default or Event of Default shall have occurred on the Signing Date immediately following the effectiveness of this Agreement and (ii) the representations and warranties contained
in Section 4.01 are true and correct on and as of the Signing Date as if made on and as of such date. 

  
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 (h) Evidence that all consents, licenses, permits and governmental and third party consents
and approvals required for the due making and performance by the Borrower of this Agreement have been obtained and remain in full force and effect. 
 (i) Evidence of payment by the Borrower of all documented fees and expenses of the Lenders, the Administrative Agent and the Arranger and of the expenses then due and payable under the Fee Letters or
under Section 8.04, including the reasonable fees and disbursements of counsel to the Administrative Agent, in connection with the negotiation, preparation, execution and delivery of this Agreement and the making of the Loans. 

(j) All documentation and other information required by regulatory authorities under applicable “know your customer” and
anti-money laundering rules and regulations, including, without limitation, the PATRIOT Act (to the extent not previously delivered). 
 (k) The Administrative Agent shall have received a copy, certified by a Responsible Officer of the Company, of (x) a fully executed Scheme Implementation Agreement and (y) the Press Release,
announcing the Borrower’s or its Affiliates firm intention to make an offer or effect the Scheme and setting forth the material terms and conditions thereof. 
 (l) Reasonably satisfactory evidence from the Escrow Agent to the Borrower that the Escrow Amount has been appropriately deposited in the Escrow Account, and satisfactory evidence from the Borrower that
such amount is freely available for, and is sufficient, together with the proceeds of Loans, for the purposes of funding the Acquisition (including, for the avoidance of doubt, the Closing Date Contribution). 

The Administrative Agent shall promptly notify Borrower and its financial advisor and the Lenders of the Signing Date, and such notice
shall be conclusive and binding evidence of the satisfaction of the foregoing conditions and the effectiveness of this Agreement. 
 Section 3.02. Conditions Precedent to Closing. During the Certain Funds Period, the obligation of each Lender to make the Loans is subject to the satisfaction (or waiver pursuant to
Section 8.01) of only the following conditions precedent: 
 (a) Delivery to the Administrative Agent of a Notice of
Borrowing in accordance with the requirements hereof. 
 (b) Delivery to the Administrative Agent of a certificate signed by a
Responsible Officer of Borrower confirming, as of the Closing Date, the 

  
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satisfaction (unless waived by the Majority Lenders) of the conditions specified in clauses (c), (d), (e) and (f) of this Section 3.02. 

(c) (A) If the Scheme has not been switched to an Offer, the Scheme Effective Date shall have occurred and the Administrative Agent shall
have received certified copies of (i) the court order confirming sanction of the Scheme, (ii) the shareholder resolutions referred to in and in the form set out in the Scheme Circular, and (iii) the confirmation-of-receipt stamp with
respect to the registration of the court order from Companies House (or a copy of the cover letter from Company’s solicitors delivering the court order to Companies House for registration, with confirmation of receipt by Companies House
affixed) and (B) if the Scheme has been switched to an Offer, the Offer Unconditional Date shall have occurred. 
 (d)
There shall not have occurred and be continuing a breach of any Major Representation in any material respect. 
 (e) There shall
not have occurred and be continuing (i) a breach of any Major Covenant, or (ii) any failure to deposit the Net Cash Proceeds of any Debt Incurrence or Equity Issuance by the Borrower, UK Holdco or any Material Subsidiary occurring prior to
the Closing Date into the Escrow Account as required by Section 2.04(c); provided that this clause (ii) shall only be a condition precedent to drawing a portion of the Commitments equal to the amount not so deposited and shall not
impair the availability of the remaining portion of the Commitments. 
 (f) At the time of and immediately after giving effect
to the Loans, no Major Default shall have occurred and be continuing. 
 (g) The Administrative Agent shall have received
evidence reasonably satisfactory to the Administrative Agent that all fees and other amounts due and payable will be received by it on or prior to the Closing Date, including, to the extent invoices have been presented therefor at least one Business
Day prior to the Closing Date, reimbursement or payment of all reasonable out-of-pocket expenses required to be reimbursed or paid hereunder or under the Fee Letters on or prior to the Closing Date. Receipt by the Administrative Agent of a Notice of
Borrowing signed by the Borrower authorizing the Administrative Agent to net all such fees and documented expenses from its initial funding hereunder shall constitute satisfactory evidence. 

(h) If the Scheme has been switched to an Offer, the Administrative Agent shall have received copies of the appointment of a receiving
agent. 
 (i) There shall not be in effect any injunction or restraining order of any applicable Governmental Authority having
jurisdiction to issue such injunction or 

  
 44 

 
restraining order prohibiting the making of the Loans or the use of the proceeds thereof, and it shall not be unlawful for the relevant Lender to make its Loan. 

ARTICLE 4 

REPRESENTATIONS AND WARRANTIES 

Section 4.01. Representations and Warranties. The Borrower represents, warrants and agrees on the Signing Date, the Closing
Date and each other date required hereunder as follows (with references to the Borrower and its Subsidiaries being references thereto giving effect to the Acquisition, with respect to the representations on or after the Closing Date): 

(a) (i) the Borrower has heretofore furnished to each of the Lenders its audited Consolidated balance sheet and Consolidated statements
of income and cash flows as at and for the fiscal year ended December 31, 2010, and such financial statements fairly present, in all material respects, the Consolidated financial condition and results of operations of the Borrower and its
Subsidiaries as at the date thereof and for such fiscal year, all in accordance with GAAP; 
 (ii) the Borrower
has heretofore furnished to each of the Lenders the audited Consolidated balance sheet and Consolidated statements of income and cash flows of the Company as at and for the fiscal year ended December 31, 2010 and such financial statements
fairly present, in all material respects, and to the best of the Borrower’s knowledge, the Consolidated financial condition and results of operations of the Company and its Subsidiaries as at the date thereof and for such fiscal year, all in
accordance with IFRS; 
 (iii) the Borrower has heretofore furnished to each of the Lenders the annual Statutory
Statement of HIC and CIC for the fiscal year ended December 31, 2010, as filed with the applicable Insurance Regulatory Authority, and such annual Statutory Statements present fairly, in all material respects, the financial condition and the
results of operations of HIC and CIC as at and for the fiscal year ended December 31, 2010, in accordance with SAP; and 
 (iv) since December 31, 2010, there has been no Material Adverse Change. 

(b) There is no pending or threatened action, proceeding or investigation affecting the Borrower or any of its Subsidiaries before any
court, governmental agency or arbitrator which (i) is reasonably likely to have a Material Adverse Effect or (ii) purports to affect this Agreement or the transactions contemplated hereby. 

  
 45 

 (c) The Borrower and each of its Subsidiaries (i) is duly organized, validly existing
and (to the extent applicable in respect of the relevant jurisdiction) in good standing under the laws of its jurisdiction of organization, (ii) is duly qualified and in good standing as a foreign corporation in each other jurisdiction in which
it owns or leases Property or in which the conduct of its business requires it to so qualify or be licensed and where, in each case, failure so to qualify and be in good standing would reasonably be expected to have a Material Adverse Effect and
(iii) has all requisite corporate power and authority to own or lease and operate its Properties and to carry on its business as now conducted and as proposed to be conducted except as could not reasonably be expected to have a Material Adverse
Effect. 
 (d) The Borrower and each of its Subsidiaries is in compliance with all federal, state and local laws and regulations
(including, without limitation, all applicable environmental laws and ERISA) applicable to the Borrower, its Subsidiaries and their respective Properties, except to the extent failure to so comply would not (either individually or in the aggregate)
reasonably be expected to have a Material Adverse Effect. 
 (e) All material consents, licenses, permits and governmental and
third-party consents and approvals required for the due making and performance by the Borrower of this Agreement and the Notes have been obtained and remain in full force and effect. 

(f) This Agreement is, and each Note when duly executed and delivered pursuant to Section 2.17 will be, a legal, valid and binding
obligation of the Borrower, enforceable against the Borrower in accordance with its terms except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization or other similar laws affecting enforcement of
creditors’ rights generally or general principles of equity. 
 (g) The making and performance by the Borrower of this
Agreement and the Notes are within the Borrower’s corporate powers, have been duly authorized by all necessary corporate action, and do not (i) contravene the Borrower’s certificate of incorporation or by-laws, (ii) contravene
any material contractual restriction binding on the Borrower or (iii) violate any material law, rule or regulation (including Regulations T, U or X), or any material order, writ, judgment, injunction, decree, determination or award. The
Borrower is not in violation of any such law, rule, regulation, order, writ, judgment, injunction, decree, determination or award or in breach of any contractual restriction binding upon it, except for any such violation or breach which could not
reasonably be expected to have a Material Adverse Effect. 
 (h) Each of the Borrower and its Subsidiaries has good and
marketable title to, valid leasehold interests in, or valid licenses to use, all Properties material 

  
 46 

 
to its business, free and clear of all Liens, except Liens permitted under Section 5.03(b), and all such Properties are in good working order and condition, ordinary wear and tear excepted,
in each case except as would not reasonably be expected to have a Material Adverse Effect. 
 (i) The Borrower and each of its
Subsidiaries have timely filed or caused to be filed all tax returns and reports required to have been filed and have paid and discharged all taxes, assessments, claims and governmental charges or levies imposed upon it or upon its Property, except
(i) any such tax, assessment, claim or charge that is being contested in good faith and by proper proceedings and as to which appropriate reserves are being maintained in accordance with Section 5.01(d) or (ii) to the extent that any
failure to do so could not reasonably be expected to have a Material Adverse Effect. 
 (j) The Borrower is not engaged
principally, or as one of its important activities, in the business of extending credit for the purpose of buying or carrying Margin Stock, and no proceeds of any Loan will be used for the purpose, whether immediate, incidental or ultimate, of
buying or carrying Margin Stock. No portion of any Loan under this Agreement shall be used by the Borrower in violation of Regulations T, U or X. At the time of each Borrowing and after giving effect thereto, not more than 25 percent of the value of
the assets (either of the Borrower or of the Borrower and its Subsidiaries on a Consolidated basis) that are subject to the restrictions in Section 5.03(b) and Section 5.03(d) consist of Margin Stock. 

(k) No ERISA Event has occurred or is reasonably expected to occur with respect to any Plan that, when taken together with all other such
ERISA Events for which liability is reasonably expected to occur, has resulted or would reasonably be expected to result in a liability to the Borrower or its ERISA Affiliates in excess of $10,000,000. 

(l) The Borrower is not an “investment company” as defined in the Investment Company Act of 1940, as amended. 

(m) Schedule III hereto is a complete list of the Subsidiaries of the Borrower as of the date hereof, each such Subsidiary is duly
organized and validly existing under the jurisdiction of its organization shown in said Schedule III, and the percentage ownership by the Borrower of each such Subsidiary is as shown in said Schedule III. 

(n) The Borrower will use the proceeds of the Loans only to fund the Acquisition (including the Transaction Costs and the Closing Date
Contribution and, for the avoidance of doubt, to make payments with respect to the related foreign exchange swap transaction). Neither the Administrative Agent nor any Lender shall have any responsibility as to the use of any proceeds. 

  
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 (o) (i) The Borrower is, and after giving effect to the making of the Loan and the use of
proceeds thereof on the Closing Date and the consummation of the Transactions on the Closing Date, will be, Solvent, (ii) the Borrower and its Subsidiaries, on a consolidated basis and after giving effect to the making of the Loans hereunder
and the use of proceeds thereof on the Closing Date and the consummation of the Transactions on the Closing Date, will be, Solvent and (iii) the making of the Loans hereunder and the use of proceeds thereof on the Closing Date do not constitute
a fraudulent conveyance under Section 548(d) of the United States Bankruptcy Code or equivalent provision of state laws. 

(p) All information that has been made available by the Borrower or any of its representatives to the Administrative Agent or any Lender
in connection with the negotiation of this Agreement (including, for the avoidance of doubt, any confidential information memorandum or related materials provided in connection with the syndication of the Commitments) was, on or as of the dates on
which such information was made available, complete and correct in all material respects and did not contain any untrue statement of a material fact or omit to state a fact necessary to make the statements contained therein not misleading in light
of the time and circumstances under which such statements were made. All financial projections that have been prepared by the Borrower and made available to the Administrative Agent or any Lender in connection with the negotiation of this Agreement
(including, for the avoidance of doubt, in connection with the syndication of the Commitments) have been prepared in good faith based upon reasonable assumptions (it being understood that such projections are subject to significant uncertainties and
contingencies, many of which are beyond the Borrower’s control, and that no assurance can be given that such projections will be realized). 
 ARTICLE 5 
 COVENANTS OF THE
BORROWER 
 Section 5.01. Affirmative Covenants. So long as any principal of or interest on any Loan
or any other amount payable hereunder shall remain unpaid or any Lender shall have any Commitment hereunder, the Borrower covenants and agrees that: 
 (a) Reporting Requirements. The Borrower will furnish to the Lenders: 
 (i) as soon as available and in any event within 60 days after the end of each of the first three quarters of each fiscal year of the Borrower, the Consolidated balance sheet of the Borrower and its
Subsidiaries as of the last day of such quarter and the related Consolidated statements of income and cash flows for such quarter, in each case setting forth in comparative form the corresponding figures from the

  
 48 

 
corresponding quarter in the previous fiscal year, all prepared in conformity with GAAP and accompanied by a certificate of a senior financial officer of the Borrower, which certificate shall
state that such financial statements present fairly, in all material respects, the Consolidated financial position of the Borrower and its Subsidiaries as of the date thereof and the Consolidated results of their operations for the period covered
thereby in conformity with GAAP, consistently applied (subject to normal year-end audit adjustments); 
 (ii) as
soon as available and in any event within 90 days after the end of each fiscal year of the Borrower, the Consolidated balance sheet of the Borrower and its Subsidiaries as of the last day of such fiscal year and the related Consolidated statements
of income and cash flows for such fiscal year, setting forth in comparative form the corresponding figures from the previous fiscal year, all prepared in conformity with GAAP and accompanied by an unqualified report and opinion of independent
certified public accountants of national standing and reputation, which shall state that such financial statements, in the opinion of such accountants, present fairly, in all material respects, the Consolidated financial position of the Borrower and
its Subsidiaries as of the date thereof and the Consolidated results of their operations for such year in conformity with GAAP, consistently applied; 
 (iii) as soon as possible and in any event within five Business Days after the Borrower obtains knowledge of the occurrence of any Event of Default or Default continuing on the date of such statement, a
statement of a Responsible Officer setting forth details of such Event of Default or Default and the action which the Borrower has taken and proposes to take with respect thereto; 

(iv) within a reasonable time after filing thereof, copies of all registration statements (without exhibits) and all
annual, quarterly and monthly reports (if any) filed by the Borrower with the Securities and Exchange Commission and promptly upon the mailing thereof to the shareholders of the Borrower generally, copies of all financial statements, reports and
proxy statements so mailed; 
 (v) promptly after the Borrower or any ERISA Affiliate knows or should reasonably
know that any ERISA Event has occurred with respect to which the liability or potential liability of the Borrower or any of its ERISA Affiliates exceeds or would reasonably be expected to exceed $10,000,000, a statement of a Responsible Officer
describing such ERISA Event and the action, if any, which the Borrower or such ERISA Affiliate proposes to take with respect thereto; 

  
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 (vi) promptly after receipt thereof by the Borrower or any ERISA Affiliate,
copies of each notice from the PBGC stating its intention to terminate any Plan or to have a trustee appointed to administer any Plan where such action would have a Material Adverse Effect; 

(vii) promptly after filing with the applicable Insurance Regulatory Authority and in any event within 60 days after the
end of each of the first three quarterly fiscal periods of each fiscal year of CIC and HIC, the quarterly Statutory Statement of CIC and HIC for such quarterly fiscal period; 

(viii) promptly after filing with the applicable Insurance Regulatory Authority and in any event within 90 days after the
end of each fiscal year of CIC and HIC, the annual Statutory Statement of CIC and HIC (including, without limitation, management’s discussion and analysis) for such year; 

(ix) promptly upon the occurrence of any change in the Moody’s Rating, the Standard & Poor’s Rating, or
an A.M. Best Financial Strength Rating with respect to any Insurance Subsidiary, notice thereof; 
 (x) promptly
upon the commencement of, or any material adverse development in, any litigation, investigation or proceeding against the Borrower or any of its Subsidiaries that could reasonably be expected to have a Material Adverse Effect, notice thereof with a
description thereof in reasonable detail; 
 (xi) promptly after request therefor, such other business and
financial information respecting the condition or operations, financial or otherwise, of the Borrower or any of its Subsidiaries as the Administrative Agent or any Lender may from time to time reasonably request; and 

(xii) prior to the Closing Date, but only if available to the Borrower or its Subsidiaries, promptly following receipt
thereof by the Borrower, the audited Consolidated balance sheet and Consolidated Statement of income and cash flows of the Company as at and for the six-month period ended June 30, 2011. 

The Borrower will furnish to the Lenders at the time it furnishes its financial statements pursuant to paragraphs (i) and
(ii) above, a certificate of a Responsible Officer setting forth reasonably detailed calculations demonstrating that the Borrower is in compliance with the covenants in Section 5.02. The Borrower and each Lender acknowledge that certain of
the Lenders may be Public Lenders and, if documents or notices required to be delivered pursuant to this Section 5.01(a) or otherwise are being 

  
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distributed through IntraLinks/IntraAgency, SyndTrak or another relevant website or other information platform (the “Platform”), any document or notice that the Borrower has
indicated contains Non-Public Information shall not be posted on that portion of the Platform designated for such Public Lenders. The Borrower agrees to clearly designate all information provided to the Administrative Agent by or on behalf the
Borrower which is suitable to make available to Public Lenders. If the Borrower has not indicated whether a document or notice delivered pursuant to this Section 5.01(a) contains Non-Public Information, the Administrative Agent reserves the
right to post such document or notice solely on that portion of the Platform designated for Lenders who wish to receive material non-public information with respect to the Borrower, its Subsidiaries and their securities. 

(b) Payment of Taxes, Etc. The Borrower will pay and discharge, and cause each of its Subsidiaries to pay and discharge, before
the same shall become delinquent, all taxes, assessments, claims and governmental charges or levies imposed upon it or upon its Property, except to the extent that any failure to do so would not reasonably be expected to have a Material Adverse
Effect; provided that neither the Borrower nor any of its Subsidiaries shall be required to pay or discharge any such tax, assessment, claim or charge that is being contested in good faith and by proper proceedings and as to which appropriate
reserves are being maintained. 
 (c) Corporate Existence, Compliance with Laws, Etc. The Borrower will, and will cause
each of its Subsidiaries to, (i) preserve and maintain all of its material rights, privileges, licenses and franchises, including all tradenames, patents and other intellectual property necessary for its business, except to the extent the
failure to preserve and maintain the same would not reasonably be expected to have a Material Adverse Effect, and (ii) preserve and maintain its corporate existence, provided that nothing in this sentence shall prohibit any transaction
expressly permitted under Section 5.03(c). The Borrower will comply, and will cause each of its Subsidiaries to comply, with all applicable laws, statutes, rules, regulations and orders, including, without limitation, ERISA and all applicable
environmental laws, except for any non-compliance which would not (either individually or in the aggregate) reasonably be expected to have a Material Adverse Effect, and with the PATRIOT Act. 

(d) Maintenance of Properties, Etc. The Borrower will maintain and preserve, and will cause each of its Subsidiaries to maintain
and preserve, all of its Properties that are used or useful in the conduct of its business in good working order and condition, ordinary wear and tear excepted, except where failure to do so would not reasonably be expected to have a Material
Adverse Effect. The Borrower will maintain, and cause each of its Subsidiaries to maintain, appropriate and adequate insurance with responsible and reputable insurance 

  
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companies or associations or with self-insurance programs to the extent consistent with prudent practices of the Borrower and its Subsidiaries or otherwise customary in their respective
industries in such amounts and covering such risks as is customary in the industries in which the Borrower or such Subsidiary operates. 
 (e) Keeping of Books. The Borrower will, and will cause each of its Subsidiaries to, keep proper books of record and account as are necessary to prepare Consolidated financial statements in
accordance with GAAP, in which full and correct entries shall be made of all financial transactions and the assets and business of the Borrower and each such Subsidiary in accordance with GAAP. 

(f) Visitation Rights. The Borrower will, at any reasonable time during normal business hours and upon reasonable prior notice and
from time to time, permit the Administrative Agent or any of the Lenders or any agents or representatives thereof (in each case at their own expense (except as described below) and subject to Section 8.12 hereof) to examine and make copies of
and abstracts from the records and books of account of, and visit the Properties of, the Borrower and any of its Subsidiaries, and to discuss the affairs, finances and accounts of the Borrower and any of its Subsidiaries with any of their officers
or directors. In addition, at any time when an Event of Default has occurred and is continuing, the Borrower will, and will cause its Subsidiaries to, permit the Administrative Agent or any of the Lenders or any agents or representatives thereof to
discuss the affairs, finances and accounts of the Borrower and its Subsidiaries with their independent certified public accountants, and the Borrower will be responsible for the reasonable costs and expenses of the Administrative Agent and the
Lenders and the agents and representatives thereof incurred in connection with this clause (f). 
 (g) Use of Proceeds.
The Borrower will use the proceeds of the Loans only to fund the Acquisition (including the Transaction Costs and the Closing Date Contribution and, for the avoidance of doubt, to make payments with respect to the related foreign exchange swap
transaction); provided that (i) no such use of the proceeds will be, directly or indirectly, for the purpose, whether immediate, incidental or ultimate, of buying or carrying any Margin Stock within the meaning of Regulation U and
(ii) neither the Administrative Agent nor any Lender shall have any responsibility as to the use of any such proceeds. 

(h) The Scheme/Offer and Related Matters. The Borrower will, and will cause UK Holdco to: 

(i) use commercially reasonable efforts to procure that a Scheme Circular is issued by the Company and dispatched as soon
as practicable after the issuance of the Press Release; 

  
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 (ii) procure that following a Conversion Notice, an Offer Document is issued
and dispatched as soon as practicable and in any event within 28 days after the issuance of the Offer Press Release; 
 (iii) comply in all material respects with the Takeover Code, subject to any waivers granted by the Panel on Takeovers and Mergers, and all other applicable laws and regulations in relation to any Offer
or Scheme; 
 (iv) except as consented to by the Administrative Agent in writing (acting reasonably), not make or
approve any change in the price per Company Share at which the Scheme is proposed or make any other acquisition of any Company Share (including pursuant to an Offer) at a price that is different from the price per Company Share stated in the Press
Release; 
 (v) except as consented to by the Administrative Agent in writing (acting reasonably), not amend or
waive the Anti-Trust Condition or, if the Scheme has been switched to an Offer, the Acceptance Condition, save for (i) any amendment or waiver required by the Panel on Takeovers and Mergers, a court or any other applicable law, regulation or
regulatory body or (ii) a waiver of the Acceptance Condition to permit the Offer to become unconditional with acceptance of Company Shares in an aggregate amount of not less than the Acceptance Percentage of the Company Shares to which the
Offer relates; 
 (vi) except as consented to by the Administrative Agent in writing (acting reasonably), not
amend, waive or modify any other term of the Scheme Implementation Agreement or Offer Document, as applicable, in a manner that would be materially adverse to the Lenders other than any amendment, waiver or modification required by the Panel on
Takeovers and Mergers, the High Court of England and Wales or a court or any other applicable law, regulation or regulatory body; 
 (vii) not take any action which would require Borrower to make a mandatory offer for the Company Shares in accordance with Rule 9 of the Takeover Code; 

(viii) promptly provide the Administrative Agent with such information as it may reasonably request regarding the status
of the Acquisition (including, in the case of an Offer, the current level of acceptances) subject to any confidentiality, regulatory or other restrictions relating to the supply of such information; 

  
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 (ix) deliver to the Administrative Agent copies of each Offer Document,
receiving agent letter (in each case, to the extent a Conversion Notice has been delivered), any written agreement between Borrower and the Company with respect to a Scheme, all other material announcements and documents published or delivered
pursuant to the Offer or Scheme (other than the Cash Confirmation), all legally binding agreements entered into by Borrower in connection with an Offer or Scheme and use commercially reasonable efforts to cause the Company to deliver a copy of the
Scheme Circular, in each case except to the extent it is prohibited by law or regulation from doing so; 
 (x)
take any other steps necessary to ensure that, other than the Press Release, the Offer Press Release, the Scheme Circular or the Offer Document, as applicable, no public statement is made by it or any of its Subsidiaries in connection with the
Scheme or Offer, as applicable, referring to the Lenders and the Loan Documents without the prior written consent of the Lenders (not to be unreasonably withheld), unless required to do so by the Takeover Code, Panel on Takeovers and Mergers, any
regulation, any applicable stock exchange or any applicable government or other relevant regulatory authority; 

(xi) in the event that the Scheme is switched to an Offer, (A) within 15 Business Days procure that a press release
announcing, in compliance with Rule 2.5 of the Takeover Code, a firm intention to proceed with the Offer (the “Offer Press Release”) is issued, (B) deliver to the Administrative Agent (1) a Conversion Notice and (2) the
Offer Press Release and (C) except as consented to by the Administrative Agent in writing (acting reasonably), ensure that the terms and conditions contained in the Offer Document include the Acceptance Condition and the Anti-Trust Condition
and are otherwise consistent in all material respects with those contained in the Scheme Circular (to the extent applicable for an Offer); 
 (xii) not deliver more than one Conversion Notice to the Administrative Agent; 
 (xiii) in the case of an Offer, (x) not declare the Offer unconditional as to acceptances until UK Holdco has received valid acceptances of Company Shares in respect of an aggregate amount of not
less than the Acceptance Percentage of the Company Shares to which the Offer relates, and (y) as soon as reasonably practicable upon Borrower acquiring the Acceptance Percentage of the Company Shares to which the Offer relates, ensure that
notices under Section 979 of the Companies Act in respect of Company Shares are issued; 

  
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 (xiv) promptly provide the Administrative Agent with such information as it
may reasonably request regarding the Escrow Account and related matters and the Closing Date Contribution. 
 (i) Net Cash
Proceeds Received by Insurance Subsidiaries. In the event that any proceeds of any Prepayment Event are received by any Insurance Subsidiary and not applied to prepay the Loans or reduce the Commitments as a result of the penultimate sentence of
the definition of Net Cash Proceeds, the Borrower shall, or shall cause the applicable Insurance Subsidiary to, apply for, and the Borrower shall use, or shall cause the applicable Insurance Subsidiary to use, commercially reasonable efforts to
obtain, such approvals or consents as shall be necessary to permit such proceeds to be so distributed (as a dividend or otherwise). 
 (j) Fee Letters. The Borrower shall comply with its obligations under the Fee Letters. 
 Section 5.02. Financial Covenants. So long as any principal of or interest on any Loan or any other amount payable hereunder shall remain unpaid or any Lender shall have any Commitment
hereunder, the Borrower covenants and agrees that: 
 (a) Minimum Net Worth. The Borrower will not permit Net Worth as of
the last day of any fiscal quarter of the Borrower to be less than the sum of (i) $1,700,000,000 plus (ii) an amount equal to 50% of the Borrower’s Consolidated net income (if positive) for such fiscal quarter and for each
prior fiscal quarter of the Borrower ending after the Signing Date plus (iii) an amount equal to 50% of the aggregate Net Equity Proceeds of any Equity Issuances made after the Signing Date. 

(b) Leverage Ratio. The Borrower will not permit the Leverage Ratio as of the last day of any fiscal quarter of the Borrower to be
greater than 35%. 
 Section 5.03. Negative Covenants. So long as any principal of or interest on any Loan or any
other amount payable hereunder shall remain unpaid or any Lender shall have any Commitment hereunder, the Borrower covenants and agrees that: 
 (a) Financial Debt. The Borrower will not, and will not permit any Subsidiary to, create, incur, assume or permit to exist any Financial Debt, except: 

(i) Financial Debt created hereunder; 

  
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 (ii) Financial Debt existing on the date hereof and set forth in Schedule II
and extensions, renewals and replacements of any such Debt that (A) does not include Debt of an obligor that was not an obligor with respect to the Debt being extended, renewed or replaced, (B) does not increase the outstanding principal
amount of the Debt being extended, renewed or replaced and (C) is subordinated to at least the same extent as, and has a maturity not earlier than, and weighted average life to maturity not shorter than, the Debt being renewed or replaced;

 (iii) Financial Debt of the Borrower to any Subsidiary and of any Subsidiary to the Borrower or any other
Subsidiary; 
 (iv) Financial Debt of the Borrower in an aggregate principal amount not to exceed $150,000,000
incurred under a revolving credit facility on terms reasonably satisfactory to the Arranger and the Majority Lenders; 
 (v) Financial Debt in respect of capitalized lease obligations, synthetic lease obligations or secured by purchase money security interests, provided that the aggregate principal amount of
Financial Debt permitted by this clause (v) shall not exceed $25,000,000 at any time outstanding; 
 (vi)
Guaranties by the Borrower of Financial Debt incurred by its Subsidiaries otherwise permitted under this Section 5.03(a); 
 (vii) Financial Debt in respect of Hybrid Securities issued by the Borrower as to which no Subsidiary of the Borrower has any obligation; 

(viii) Financial Debt in respect of other subordinated securities of the Borrower so long as (a) the obligations of
the Borrower thereunder are unsecured and fully subordinated as to payment and performance in all respects to all of the obligations of the Borrower under this Agreement, (b) no Subsidiary of the Borrower has any obligations thereunder and
(c) such other subordinated securities do not have any required amortization, maturity, mandatory put, redemption, repayment, or other similar provision or requirement, or any cash interest thereon, and in any event is not payable, falling due
or capable of falling due, prior to at least 91 days after the Maturity Date, provided that the Borrower shall be permitted to make cash interest payments pursuant to the terms of such other subordinated securities so long as (x) no
payment Default or Event of Default has occurred and is continuing and (y) the interest rate in respect thereof shall be based on prevailing market rates at the time of issuance of such other subordinated securities; 

  
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 (ix) Permanent Financing of the Borrower so long as (a) the obligations
of the Borrower thereunder are unsecured, (b) no Subsidiary of the Borrower has any obligations thereunder, (c) such Permanent Financing does not have any required amortization, maturity, mandatory put, redemption, prepayment or other
similar provisions or requirement and is not payable, falling due or capable of falling due, prior to at least 91 days after the Maturity Date and (d) the Net Cash Proceeds thereof are applied to reduce the Commitments or prepay the Loans as
required hereunder; 
 (x) Financial Debt in respect of borrowings from a Federal Home Loan Bank in the ordinary
course of business and on ordinary business terms pursuant to a membership in such Federal Home Loan Bank; provided that the aggregate principal amount of Financial Debt permitted by this clause (x) shall not exceed $150,000,000 at any
time outstanding; 
 (xi) Financial Debt in addition to the foregoing, provided that the aggregate
principal amount of Financial Debt permitted by this clause (xi) shall not exceed $50,000,000 at any time outstanding; and 
 (xii) Financial Debt associated with the CitySquare Project, provided that the aggregate principal amount of Financial Debt permitted by this clause (xii) shall not exceed $50,000,000 at any
time outstanding. 
 The proceeds of any Debt incurred pursuant to this clause (a) shall be applied as required by Sections
2.04(c) and 2.09(c). 
 (b) Liens. The Borrower will not, nor will it permit any of its Subsidiaries to, create, incur,
assume or suffer to exist any Lien upon any of its Property, whether now owned or hereafter acquired, except Permitted Liens. 

(c) Mergers, Etc. The Borrower will not, and will not permit any of its Material Subsidiaries to, merge or consolidate with or
into, or convey, transfer, lease or otherwise dispose of, whether in one transaction or in a series of transactions, all or substantially all of the Property (whether now owned or hereafter acquired) of the Borrower or such Material Subsidiary to,
any Person, or liquidate or dissolve, except that, if at the time thereof and immediately after giving effect thereto no Default shall have occurred and be continuing, (i) any Material Subsidiary may merge into the Borrower in a transaction in
which the Borrower is the surviving corporation, (ii) any Material Subsidiary may sell, transfer, lease or otherwise dispose of its assets to the Borrower or to another Material Subsidiary, (iii) any Material Subsidiary 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 

  
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Lenders and (iv) Dispositions by any Material Subsidiary permitted by Section 5.03(d). 
 (d) Disposition of Assets. The Borrower will not, and will not permit any of its Material Subsidiaries to, sell, lease, transfer or otherwise dispose of any substantial part of its Property, or
grant any option or other right to purchase, lease or otherwise acquire any such Property, except (i) sales of inventory in the ordinary course of its business, (ii) sales of assets which are not material to the operation of the Borrower
or are no longer used or useful in connection with the operation of the Borrower, (iii) transfers of Property by any Material Subsidiary of the Borrower to the Borrower or any Material Subsidiary of the Borrower and (iv) Dispositions in
connection with the CitySquare Project; provided that the proceeds thereof are reinvested in the CitySquare Project or applied to prepay the Loans (it being understood that such proceeds may be held in a segregated account of the Borrower
until so applied) and (v) other sales, leases, transfers or other dispositions of assets generating Net Cash Proceeds not exceeding $50,000,000 in the aggregate for all such transactions; provided that such sales, leases, transfers or
other dispositions shall be for fair market value and at least 75% cash. The proceeds of any sales, leases, transfers or other dispositions shall be applied in accordance with Sections 2.04(c) and 2.09(c). 

(e) Transactions with Affiliates. The Borrower will not, and will not permit any of its Subsidiaries to, sell, lease or otherwise
transfer any Property to, or purchase, lease or otherwise acquire any assets from, or otherwise engage in any 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 and (b) transactions between or among the Borrower and its Wholly-Owned Subsidiaries not involving any other
Affiliate. 
 (f) Line of Business. The Borrower will not, and will not permit any of its Material Subsidiaries to, make
any material change in the nature or conduct of the business of the Borrower or such Material Subsidiary as conducted on the date hereof. 
 (g) Anti-dividend-block. Except to the extent required by applicable law, statute, rule, regulation, order or agreement with regulators, the Borrower will not permit any of its Subsidiaries to
agree to or have in effect any contractual restriction on the payment of dividends or the making of other distributions to the Borrower. 
 (h) Restricted Payments. The Borrower shall not, directly or indirectly declare or make, or agree to make, directly or indirectly, any Restricted Payment except (i) the Borrower may declare
and pay ordinary cash dividends with respect to its common stock not to exceed 27.5 cents per share per quarter, (ii) any 

  
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payment with respect to Equity-Linked Securities, if the proceeds of the issuance of such Equity-Linked Securities were applied in accordance with Sections 2.04(c) and 2.09(c) and (iii) the
Borrower may declare and make dividends and distributions on its Equity Interests that are payable only in its common stock. 

(i) Acquisitions. Other than the Acquisition, the Borrower shall not, nor shall it permit any of its Subsidiaries to,
(x) acquire (by merger or otherwise) a majority of the Equity Interests (with ordinary voting power) or all or substantially all of the assets of any other Person (other than a Subsidiary) for consideration in excess of $25,000,000 in the
aggregate for all such acquisitions under this clause (x) or (y) make investments in any other Person (other than a Subsidiary) by acquiring less than a majority of the Equity Interests (with ordinary voting power) of such Person
(excluding any investments made in connection with the Borrower’s and any Subsidiary’s normal investment management activities) for consideration in excess of $25,000,000 in the aggregate for all such acquisitions under this clause (y).

 ARTICLE 6 
 EVENTS OF DEFAULT 

Section 6.01. Events of Default. The following events shall be Events of Default (each, an “Event of
Default”): 
 (a) The Borrower shall fail to pay any principal of any Loan when the same becomes due and payable; or
the Borrower shall fail to pay any interest on any Loan or any Commitment Fee, Duration Fee or any other amount payable hereunder when due and such failure remains unremedied for three Business Days; 

(b) Any representation or warranty made by the Borrower herein or in connection with this Agreement shall prove to have been incorrect in
any material respect when made or deemed made; 
 (c) (i) The Borrower shall fail to perform or observe any term, covenant or
agreement contained in Section 5.01(a)(iii), 5.01(c)(ii), 5.01(g), 5.01(h), 5.01(i), 5.01(j), 5.02 or 5.03; or (ii) the Borrower shall fail to perform or observe any other term, covenant or agreement contained in this Agreement on its part
to be performed or observed, and such failure remains unremedied for 30 days after notice thereof shall have been given to the Borrower by the Administrative Agent; 
 (d) The Borrower or any of its Subsidiaries shall fail to pay any principal of any Debt (other than Debt hereunder) which is outstanding in an aggregate principal amount of at least $10,000,000, or its
equivalent in other currencies (in this clause (d) called “Material Debt”), when the same becomes due and payable (whether at scheduled maturity, by required prepayment, 

  
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acceleration, demand or otherwise); or any other event shall occur or condition shall exist under any agreement or instrument relating to any Material Debt, if the effect of such event or
condition is to accelerate, or to permit the acceleration of, the maturity of any Material Debt, or to require the same to be prepaid or defeased (other than by a regularly required payment); 

(e) The Borrower, UK Holdco or any of the Borrower’s Material Subsidiaries shall generally not pay its debts as such debts become
due, or shall admit in writing its inability to pay its debts generally, or shall make a general assignment for the benefit of creditors; or any proceeding shall be instituted by or against the Borrower, UK Holdco or any of the Borrower’s
Material Subsidiaries seeking to adjudicate it a bankrupt or insolvent, or seeking liquidation, winding up, reorganization, arrangement, adjustment, protection, relief, or composition of it or its debts under any law relating to bankruptcy,
insolvency or reorganization or relief of debtors, or seeking the entry of an order for relief or the appointment of a receiver, trustee, custodian or other similar official for it or for any substantial part of its Property and, in the case of any
such proceeding instituted against the Borrower, UK Holdco or any of the Borrower’s Material Subsidiaries, such proceeding shall remain undismissed or unstayed for a period of 60 days; or the Borrower, UK Holdco or any of the Borrower’s
Material Subsidiaries shall take any corporate action to authorize any of the actions set forth above in this clause (e); 
 (f)
In connection with the actual or alleged insolvency of the Borrower or any Insurance Subsidiary, any Insurance Regulatory Authority shall appoint a rehabilitator, receiver, custodian, trustee, conservator or liquidator or the like (collectively, a
“conservator”) for the Borrower or such Insurance Subsidiary, or cause possession of all or any substantial portion of the Property of the Borrower or such Insurance Subsidiary to be taken by any conservator; 

(g) Any judgment or order for the payment of money in excess of $10,000,000 shall be rendered against the Borrower or any of its
Subsidiaries and there shall be any period of 45 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; 

(h) An ERISA Event shall have occurred that, in the opinion of the Majority Lenders, when taken together with all other ERISA Events that
have occurred, would reasonably be expected to have a Material Adverse Effect; 
 (i) (x) There shall occur a Change in Control
or (y) the Borrower shall cease to own, directly or indirectly, 100% of the Voting Shares of UK Holdco; and 

  
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 (j) This Agreement shall at any time and for any reason be declared by a court of competent
jurisdiction to be null and void, or a proceeding shall be commenced by the Borrower or any Subsidiary, seeking to establish the invalidity or unenforceability thereof (exclusive of questions of interpretation of any provision thereof), or the
Borrower or any Subsidiary shall repudiate or deny in writing any portion of its liability or obligations hereunder. 

Notwithstanding the foregoing, for the period from the Signing Date until the date which is 90 days after the Closing Date (the
“Clean-Up Period”), a breach of any representation or warranty hereunder or any covenant, condition or agreement herein existing by reason of circumstances existing on the Closing Date and relating solely to the business or
operations of the Company and its Subsidiaries (or any obligation to procure or ensure in relation thereto) shall not constitute an Event of Default (except for the purpose of Section 2.06(b)) if and for so long as the circumstances giving rise
to such breach: 
 (a) are capable of being cured during the Clean-up Period and Borrower and its Subsidiaries are using
reasonable efforts to cure such breach (it being understood for the avoidance of doubt that untrue disclosure or financial statements cannot be cured by amending, supplementing or restating such disclosure or financial statements); 

(b) have not been knowingly caused or approved by Borrower; and 
 (c) have not had, and would not reasonably be expected to have, a Material Adverse Effect; 
 Section 6.02. Remedies. (a) Subject to Section 6.02(b) below, if any Event of Default shall occur and be continuing, then the Administrative Agent (x) shall at the request, or
may with the consent, of the Majority Lenders, by notice to the Borrower, declare the Commitments to be terminated, whereupon the same shall forthwith terminate, and (y) shall at the request, or may with the consent, of the Majority Lenders, by
notice to the Borrower, declare the Loans, all interest thereon and all other amounts whatsoever payable under this Agreement to be forthwith due and payable, whereupon the Loans, all such interest and all such amounts shall become and be forthwith
due and payable, without presentment, demand, protest or further notice of any kind, all of which are hereby expressly waived by the Borrower; provided, however, that in the event of an Event of Default with respect to the Borrower of
the kind referred to in clause (e) of Section 6.01 above or with respect to the Borrower or any Insurance Subsidiary of the kind referred to in clause (f) of Section 6.01 above, (A) the Commitments shall automatically
terminate and (B) the Loans, all such interest and all such amounts shall automatically become and be due and payable, without presentment, demand, protest or any notice of any kind, all of which are hereby expressly waived by the Borrower.

  
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 (b) During the Certain Funds Period, (i) the remedies set forth in Section 6.02(a)
shall only be available during the continuance of an Event of Default that (A) is a Major Default, (B) results from a breach of one or more Major Representations in any material respect or (C) results from a breach of a Major Covenant
and (ii) the Administrative Agent and the Lenders shall not, except as provided under clause (i) of this Section 6.02(b) and except in connection with any Debt Incurrence and Equity Issuance as expressly provided herein, (A) if
the conditions specified in Section 3.02 have been satisfied, decline or refuse or fail to make available any Loans, (B) cancel any of the Commitments to the extent to do so would prevent or limit the making of a Loan, (C) cancel,
accelerate or cause repayment or prepayment of any amounts owing hereunder to the extent to do so would prevent or limit the making of a Loan, (D) exercise any right of set-off or counterclaim in respect of a Loan or a requested Loan to the
extent to do so would prevent or limit the making of a Loan or (E) rescind, terminate or cancel this Agreement or any of the Commitments or exercise any similar right or remedy or make or enforce any claim hereunder it may have to the extent to
do so would prevent or limit the making of a Loan. After the Certain Funds Period, all of the rights, remedies and entitlements of the Administrative Agent and the Lenders shall be available notwithstanding that certain rights, remedies and
entitlements were not exercised or available during the Certain Funds Period. For the avoidance of doubt, nothing in this clause (b) shall effect the Borrower’s obligation to pay interest in accordance with Section 2.06(b).

 ARTICLE 7 
 THE ADMINISTRATIVE AGENT 

Section 7.01. Appointment of Administrative Agent. GS is hereby appointed Administrative Agent hereunder and each Lender
hereby authorizes GS to act as Administrative Agent in accordance with the terms hereof. The Administrative Agent hereby agrees to act in its capacity as such upon the express conditions contained herein. The provisions of this Article 7 are solely
for the benefit of the Administrative Agent and Lenders and neither the Borrower nor any of its Subsidiaries shall have any rights as a third party beneficiary of any of the provisions thereof. In performing its functions and duties hereunder, the
Administrative Agent shall act solely as an agent of Lenders and does not assume and shall not be deemed to have assumed any obligation towards or relationship of agency or trust with or for the Borrower or any of its Subsidiaries. 

Section 7.02. Power and Duties. Each Lender irrevocably authorizes the Administrative Agent to take such action on such
Lender’s behalf and to exercise such powers, rights and remedies hereunder as are specifically delegated or granted to the Administrative Agent by the terms hereof, together with such powers, rights and remedies as are reasonably incidental
thereto. The 

  
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Administrative Agent shall have only those duties and responsibilities that are expressly specified herein. The Administrative Agent may exercise such powers, rights and remedies and perform such
duties by or through its agents or employees. The Administrative Agent shall not have, by reason hereof, a fiduciary relationship in respect of any Lender; and nothing herein, expressed or implied, is intended to or shall be so construed as to
impose upon the Administrative Agent any obligations in respect hereof except as expressly set forth herein. 

Section 7.03. General Immunity.  
 (a) No Responsibility for Certain Matters. The Administrative Agent shall not be responsible to any Lender for the execution, effectiveness, genuineness, validity, enforceability, collectability or
sufficiency hereof or for any representations, warranties, recitals or statements made herein or made in any written or oral statements or in any financial or other statements, instruments, reports or certificates or any other documents furnished or
made by the Administrative Agent to the Lenders or by or on behalf of the Borrower to the Administrative Agent or any Lender in connection herewith and the transactions contemplated hereby or for the financial condition or business affairs of the
Borrower or its Subsidiaries or any other Person liable for the payment of any obligations hereunder, nor shall the Administrative Agent be required to ascertain or inquire as to the performance or observance of any of the terms, conditions,
provisions, covenants or agreements contained herein or as to the use of the proceeds of the Loans or as to the existence or possible existence of any Event of Default or Default or to make any disclosures with respect to the foregoing. Anything
contained herein to the contrary notwithstanding, the Administrative Agent shall not have any liability arising from confirmations of the amount of outstanding Loans or the component amounts thereof. 

(b) Exculpatory Provisions. None of the Administrative Agent nor any of its officers, partners, members, directors, employees or
agents shall be liable to Lenders for any action taken or omitted by the Administrative Agent hereunder or in connection herewith except to the extent caused by the Administrative Agent’s gross negligence or willful misconduct, as determined by
a final, non-appealable judgment of a court of competent jurisdiction. The Administrative Agent shall be entitled to refrain from any act or the taking of any action (including the failure to take an action) in connection herewith or from the
exercise of any power, discretion or authority vested in it hereunder unless and until the Administrative Agent shall have received instructions in respect thereof from the Majority Lenders (or such other Lenders as may be required to give such
instructions under Section 8.01) and, upon receipt of such instructions from the Majority Lenders (or such other Lenders, as the case may be), the Administrative Agent shall be entitled to act or (where so instructed) refrain from acting, or to
exercise such power, discretion or authority, in accordance with such instructions. Without 

  
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prejudice to the generality of the foregoing, (i) the Administrative Agent shall be entitled to rely, and shall be fully protected in relying, upon any communication, instrument or document
believed by it to be genuine and correct and to have been signed or sent by the proper Person or Persons, and shall be entitled to rely and shall be protected in relying on opinions and judgments of attorneys (who may be attorneys for the Borrower
and its Subsidiaries), accountants, experts and other professional advisors selected by it; and (ii) no Lender shall have any right of action whatsoever against the Administrative Agent as a result of the Administrative Agent acting or (where
so instructed) refraining from acting hereunder in accordance with the instructions of the Majority Lenders (or such other Lenders as may be required to give such instructions under Section 8.01). 

(c) Delegation of Duties. The Administrative Agent may perform any and all of its duties and exercise its rights and powers under
this Agreement 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
Affiliates. The exculpatory, indemnification and other provisions of this Section 7.03 and of Section 7.06 shall apply to any the Affiliates of the Administrative Agent and shall apply to their respective activities in connection with the
syndication of the facilities provided for herein as well as activities as the Administrative Agent. All of the rights, benefits, and privileges (including the exculpatory and indemnification provisions) of this Section 7.03 and of
Section 7.06 shall apply to any such sub-agent and to the Affiliates of any such sub-agent, and shall apply to their respective activities as sub-agent as if such sub-agent and Affiliates were named herein. Notwithstanding anything herein to
the contrary, with respect to each sub-agent appointed by the Administrative Agent, (i) such sub-agent shall be a third party beneficiary under this Agreement with respect to all such rights, benefits and privileges (including exculpatory
rights and rights to indemnification) and shall have all of the rights and benefits of a third party beneficiary, including an independent right of action to enforce such rights, benefits and privileges (including exculpatory rights and rights to
indemnification) directly, without the consent or joinder of any other Person, against any or all of the Borrower and its Subsidiaries and the Lenders, (ii) such rights, benefits and privileges (including exculpatory rights and rights to
indemnification) shall not be modified or amended without the consent of such sub-agent, and (iii) such sub-agent shall only have obligations to the Administrative Agent and not to the Borrower, any Subsidiary of the Borrower, any Lender or any
other Person and none of the Borrower, any Subsidiary of the Borrower, any Lender or any other Person shall have any rights, directly or indirectly, as a third party beneficiary or otherwise, against such sub-agent. 

Section 7.04. Administrative Agent Entitled To Act As Lender. The agency hereby created shall in no way impair or affect any
of the rights and powers of, or impose any duties or obligations upon, the Administrative Agent in 

  
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its individual capacity as a Lender hereunder. With respect to its participation in the Loans, the Administrative Agent shall have the same rights and powers hereunder as any other Lender and may
exercise the same as if it were not performing the duties and functions delegated to it hereunder, and the term “Lender” shall, unless the context clearly otherwise indicates, include the Administrative Agent in its individual capacity.
The Administrative Agent and its Affiliates may accept deposits from, lend money to, own securities of, and generally engage in any kind of banking, trust, financial advisory or other business with the Borrower or any of its Affiliates as if it were
not performing the duties specified herein, and may accept fees and other consideration from the Borrower for services in connection herewith and otherwise without having to account for the same to Lenders. 

Section 7.05. Lenders’ Representations, Warranties And Acknowledgment. 

(a) Each Lender represents and warrants that it has made its own independent investigation of the financial condition and affairs of the
Borrower and its Subsidiaries in connection with the making of the Loans hereunder and that it has made and shall continue to make its own appraisal of the creditworthiness of Borrower and its Subsidiaries. The Administrative Agent shall not have
any duty or responsibility, either initially or on a continuing basis, to make any such investigation or any such appraisal on behalf of Lenders or to provide any Lender with any credit or other information with respect thereto, whether coming into
its possession before the making of the Loans or at any time or times thereafter, and the Administrative Agent shall not have any responsibility with respect to the accuracy of or the completeness of any information provided to Lenders. 

(b) Each Lender, by delivering its signature page to this Agreement or an Assignment and Acceptance and funding its Loans on the Closing
Date, shall be deemed to have acknowledged receipt of, and consented to and approved, this Agreement and each other document required to be approved by the Administrative Agent, the Majority Lenders or Lenders, as applicable on the Signing Date.

 Section 7.06. Right To Indemnity. Each Lender, in proportion to its pro rata share of the Commitments or the
aggregate principal amount of outstanding Loans hereunder, severally agrees to indemnify the Administrative Agent and the Arranger, to the extent that the Administrative Agent shall not have been reimbursed by the Borrower, for and against any and
all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses (including counsel fees and disbursements) or disbursements of any kind or nature whatsoever which may be imposed on, incurred by or asserted
against the Administrative Agent or the Arranger in exercising its powers, rights and remedies or performing its duties hereunder or under the other Loan Documents 

  
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or otherwise in its capacity as the Administrative Agent or the Arranger in any way relating to or arising out of this Agreement or the other Loan Documents; provided, no Lender shall be
liable for any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements resulting from the Administrative Agent’s or the Arranger’s gross negligence or willful
misconduct, as determined by a final, non-appealable judgment of a court of competent jurisdiction. If any indemnity furnished to the Administrative Agent or the Arranger for any purpose shall, in the opinion of the Administrative Agent, be
insufficient or become impaired, the Administrative Agent may call for additional indemnity and cease, or not commence, to do the acts indemnified against until such additional indemnity is furnished; provided, in no event shall this sentence
require any Lender to indemnify the Administrative Agent against any liability, obligation, loss, damage, penalty, action, judgment, suit, cost, expense or disbursement in excess of such Lender’s pro rata share thereof as determined based on
the principal amount of such Lender’s Commitments or outstanding Loans hereunder as a percentage of the aggregate principal amount of the total Commitments or outstanding Loans of the Lenders; and provided further, this sentence shall
not be deemed to require any Lender to indemnify the Administrative Agent against any liability, obligation, loss, damage, penalty, action, judgment, suit, cost, expense or disbursement described in the proviso in the immediately preceding sentence.

 Section 7.07. Successor Administrative Agent. The Administrative Agent shall have the right to resign at any time
by giving prior written notice thereof to Lenders and Borrower and the Administrative Agent may be removed at any time with or without cause by an instrument or concurrent instruments in writing delivered to Borrower and the Administrative Agent and
signed by the Majority Lenders. The Administrative Agent shall have the right to appoint a financial institution to act as the Administrative Agent hereunder, subject to the reasonable satisfaction of Borrower and the Majority Lenders, and the
Administrative Agent’s resignation shall become effective on the earliest of (i) 30 days after delivery of the notice of resignation, (ii) the acceptance of such successor Administrative Agent by the Borrower and the Majority Lenders
or (iii) such other date, if any, agreed to by the Majority Lenders. Upon any such notice of resignation or any such removal, if a successor Administrative Agent has not already been appointed by the retiring Administrative Agent, the Majority
Lenders shall have the right, upon five Business Days’ notice to the Borrower, to appoint a successor Administrative Agent. If neither the Majority Lenders nor the Administrative Agent have appointed a successor Administrative Agent, the
Majority Lenders shall be deemed to have succeeded to and become vested with all the rights, powers, privileges and duties of the retiring Administrative Agent. Upon the acceptance of any appointment as Administrative Agent hereunder by a successor
Administrative Agent, that successor Administrative Agent shall thereupon succeed to and become vested with all the rights, powers, privileges 

  
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and duties of the retiring or removed Administrative Agent and the retiring or removed Administrative Agent shall promptly transfer to such successor Administrative Agent all sums received and
held for the account of the Lenders (not otherwise distributed to the Lenders) and all records and other documents necessary or appropriate in connection with the performance of the duties of the successor Administrative Agent under the Loan
Documents, whereupon such retiring or removed Administrative Agent shall be discharged from its duties and obligations hereunder. After any retiring or removed Administrative Agent’s resignation or removal hereunder as Administrative Agent, the
provisions of this Article 7 shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Administrative Agent hereunder. 
 Section 7.08. Arranger, Etc. The Arranger, the Syndication Agent and the Documentation Agent named on the cover page of this Agreement, in their capacities as such, shall have no obligation,
liability or responsibility hereunder. 
 ARTICLE 8 
 MISCELLANEOUS 
 Section 8.01. Amendments, Etc. No
amendment or waiver of any provision of this Agreement, 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 Majority Lenders, and then such
amendment, waiver or consent shall be effective only in the specific instance and for the specific purpose for which given; provided, however, that no such amendment, waiver or consent shall, unless in writing and signed by each Lender
affected thereby, do any of the following: (a) increase the Commitment of any Lender or subject it to any additional obligations, (b) reduce the principal of, or interest on, any Loan or any fee or other amounts payable hereunder or
(c) postpone any date fixed for any payment of principal of, or interest on, any Loan or any fee or other amount payable hereunder; and provided further that no amendment, waiver or consent shall, unless in writing and signed by all the
Lenders, do any of the following: (i) waive any of the conditions specified in Section 3.01 or 3.02, (ii) change the percentage of the Commitments or of the aggregate unpaid principal amount of the Loans, or the number of Lenders,
which shall be required for the Lenders or any of them to take any action hereunder or (iii) amend this Section 8.01; and provided further that no amendment, waiver or consent shall, unless in writing and signed by the
Administrative Agent in addition to the Lenders required above to take such action, affect the rights or duties of the Administrative Agent under this Agreement. This Agreement and the other agreements and instruments referred to herein constitute
the entire agreement of the parties with respect to the subject matter hereof and thereof. 

  
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 Section 8.02. Notices, Etc. (a) Any notice or other communication herein
required or permitted to be given to the Borrower, the Administrative Agent or the Arranger, shall be sent to such Person’s address as set forth below, and in the case of any Lender, the address as indicated in such Lender’s Administrative
Questionnaire or otherwise indicated by such Lender to the Administrative Agent in writing. Except as otherwise set forth in Section 8.02(b), each notice hereunder shall be in writing and may be personally served or sent by telefacsimile
(except for any notices sent to the Administrative Agent) or United States mail or courier service and shall be deemed to have been given when delivered in person or by courier service and signed for against receipt thereof, upon receipt of
telefacsimile, or three Business Days after depositing it in the United States mail with postage prepaid and properly addressed; provided, no notice to the Administrative Agent or the Arranger shall be effective until received by such Person;
provided further, any such notice or other communication shall at the request of Administrative Agent be provided to any sub-agent appointed pursuant to Section 7.03(c) hereto as designated by the Administrative Agent from time to time.

 (i) if to the Borrower, to The Hanover Insurance Group, Inc., Attention: Charles F. Cronin (Telecopy
No. 508-926-1693), email: ccronin@hanover.com; and 
 (ii) if to the
Administrative Agent, to Goldman Sachs Bank USA., 30 Hudson Street, 38th Floor, Jersey City, NJ 07302, Attention: Lauren Day, emails: gsd.link@gs.com; ficc-sbdagency-nydallas@gs.com. 
 (b) Electronic Communications. 
 (i) Notices and other
communications to the Administrative Agent, the Arranger and the Lenders hereunder may be delivered or furnished by electronic communication (including e mail and Internet or intranet websites, including the Platform) pursuant to procedures approved
by Administrative Agent, provided that the foregoing shall not apply to notices to the Administrative Agent or to any Lender pursuant to Article 2 if such Person has notified Administrative Agent that it is incapable of receiving notices under such
Section 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 

  
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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. 
 (ii) The Borrower understands that the distribution
of material through an electronic medium is not necessarily secure and that there are confidentiality and other risks associated with such distribution and agrees and assumes the risks associated with such electronic distribution. 

(iii) The Platform and any Approved Electronic Communications are provided “as is” and “as available”.
Neither the Administrative Agent nor any of its officers, directors, employees, agents, advisors or representatives (the “Agent Affiliates”) warrant the accuracy, adequacy, or completeness of the Approved Electronic Communications
or the Platform and each expressly disclaims liability for errors or omissions in the Platform and the Approved Electronic Communications. 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 the Agent Affiliates in connection with the Platform or the Approved Electronic Communications. 

(iv) Each of the Borrower, each Lender, and the Administrative Agent agrees that the Administrative Agent may, but shall
not be obligated to, store any Approved Electronic Communications on the Platform in accordance with Administrative Agent’s customary document retention procedures and policies. 

(v) Any notice of Default or Event of Default may be provided by telephone if confirmed promptly thereafter by delivery of
written notice thereof. 
 (c) Private Side Information Contacts. Each Public Lender agrees to cause at least one
individual at or on behalf of such Public Lender to at all times have selected the “Private Side Information” or similar designation on the content declaration screen of the Platform in order to enable such Public Lender or its delegate,
in accordance with such Public Lender’s compliance procedures and applicable law, including United States federal and state securities laws, to make reference to information that is not made available through the “Public Side
Information” portion of the Platform and that may contain Non-Public Information with respect to the Borrower, its Subsidiaries or their securities for 

  
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purposes of United States federal or state securities laws. In the event that any Public Lender has determined for itself to not access any information disclosed through the Platform or
otherwise, such Public Lender acknowledges that (i) other Lenders may have availed themselves of such information and (ii) neither Borrower nor Administrative Agent has any responsibility for such Public Lender’s decision to limit the
scope of the information it has obtained in connection with this Agreement and the other Loan Documents. 

Section 8.03. No Waiver; Remedies. No failure on the part of any Lender or the Administrative Agent to exercise, and no delay
in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any such right preclude any other or further exercise thereof or the exercise of any other right. The remedies herein provided are
cumulative and not exclusive of any remedies provided by law. 
 Section 8.04. Costs, Expenses and Indemnification.
(a) The Borrower agrees to pay and reimburse on demand all reasonable out-of-pocket costs and expenses of the Administrative Agent and the Arranger in connection with the preparation, execution, delivery and administration of this Agreement
and the other documents to be delivered hereunder, including, without limitation, the reasonable fees and disbursements of counsel for the Administrative Agent with respect thereto and with respect to advising the Administrative Agent as to its
rights and responsibilities under this Agreement. The Borrower further agrees to pay on demand all reasonable out-of-pocket costs and expenses, if any, incurred by the Administrative Agent or any Lender in connection with any waiver, modification or
enforcement of this Agreement and the other documents to be delivered hereunder, including, without limitation, the fees, disbursements and other charges of counsel for the Administrative Agent. 

(b) The Borrower agrees to indemnify the Administrative Agent, the Arranger, each Lender and each of their respective Affiliates and
their respective officers, directors, employees, agents, advisors, partners, members and representatives (each, an “Indemnified Party”) from and against any and all losses, damages, liabilities, penalties, judgments, costs, expenses
and disbursements (including fees and disbursements of counsel), of any kind or nature whatsoever, joint or several, that may be imposed on, incurred by or asserted or awarded against any Indemnified Party, in each case arising out of or relating to
this Agreement or any investigation, litigation or proceeding or the preparation of any defense with respect thereto arising out of or in connection with or relating to this Agreement, the transactions contemplated hereby or thereby or any use made
or proposed to be made with the proceeds of the Loans, whether or not such investigation, litigation or proceeding is brought by the Borrower, any of its shareholders or creditors, an Indemnified Party or any other Person, or an Indemnified Party is
otherwise a party thereto, and whether or not any of the conditions precedent set forth in Article 3 are satisfied or the other 

  
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transactions contemplated by this Agreement are consummated, except to the extent any of the foregoing results from such Indemnified Party’s gross negligence or willful misconduct as
determined in a judgment by a court of competent jurisdiction. Notwithstanding anything herein to the contrary, no Indemnified Party shall be entitled to any claim for indemnification under this Section 8.04(b) in respect of any taxes, which
are subject to indemnification pursuant solely to Section 2.13 of this Agreement. The Borrower agrees not to assert any claim against any Indemnified Party, on any theory of liability, for consequential, indirect, special or punitive damages
arising out of or otherwise relating to this Agreement or any of the transactions contemplated hereby or thereby or the actual or proposed use of the proceeds of the Loans. 
 (c) If any payment of principal of, or Conversion or Continuation of, any Eurodollar Loan is made other than on the last day of an Interest Period for such Loan as a result of any optional or mandatory
prepayment, acceleration of the maturity of the Loans pursuant to Section 6.01 or for any other reason whatsoever, the Borrower shall pay to the Administrative Agent for the account of such Lender any amounts required to compensate such Lender
for any additional losses, costs or expenses which it may reasonably incur as a result of such payment, Continuation or Conversion and the liquidation or reemployment of deposits or other funds acquired by such Lender to fund or maintain such Loan.
A certificate as to the amount of such losses, costs and expenses, submitted to the Borrower and the Administrative Agent by such Lender, shall be conclusive and binding for all purposes, absent manifest error. 

Section 8.05. Binding Effect. This Agreement shall become effective upon satisfaction of the conditions set forth in
Section 3.01 and delivery of the notice by the Administrative Agent referred to therein and thereafter shall be binding upon and inure to the benefit of the Borrower, the Administrative Agent and each Lender and their respective successors and
permitted assigns, except that the Borrower shall not have the right to assign its rights hereunder or any interest herein without the prior written consent of the Lenders. 
 Section 8.06. Assignments and Participations. (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 the Borrower may not 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 Eligible Assignee in accordance with the provisions of clause (b) of this Section, (ii) by way of participation in
accordance with the provisions of clause (d) of this Section or (iii) by way of pledge or assignment of a security interest in accordance with clause (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 

  
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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 clause
(d) of this Section and, to the extent expressly contemplated hereby, the Affiliates of each of the Administrative Agent and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement. 

(b) Assignments by Lenders. Any Lender may at any time assign to one or more Eligible Assignees all or a portion of its rights and
obligations under this Agreement (including all or a portion of its Commitment and the Loans at the time owing to it); provided, that 
 (i) except 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 or an
Affiliate of a Lender or an Approved Fund with respect to a Lender, the aggregate amount of the Commitment (which for this purpose includes Loans outstanding thereunder) or, if the applicable 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 Agreement with respect to such assignment is delivered to the Administrative Agent or, if “Trade Date”
is specified in the Assignment and Acceptance, as of the Trade Date) shall not be less than $10,000,000 or an integral multiple of $1,000,000 in excess thereof, unless each of the Administrative Agent and, unless an Event of Default has occurred and
is continuing, the Borrower otherwise consent (each such consent not to be unreasonably withheld or delayed); 

(ii) 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; 
 (iii) any
assignment of a Commitment or Loan must be approved by the Administrative Agent (such approval not to be unreasonably withheld) unless the Person that is the proposed assignee is itself a Lender with a Commitment or an Affiliate of such Lender
(whether or not the proposed assignee would otherwise qualify as an Eligible Assignee); 
 (iv) the parties to
each assignment shall execute and deliver to the Administrative Agent an Assignment and Acceptance, together with a processing and recordation fee of $3,500 and the Eligible Assignee, if it shall not be a Lender, shall deliver to the Administrative
Agent an Administrative Questionnaire; and 

  
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 (v) any assignment of Commitments during the Certain Funds Period shall be
subject to written confirmation of the Borrower for the sole and exclusive purpose of permitting the Borrower to confirm that the required consent from its financial adviser has been obtained to the effect that such assignment will not and could not
reasonably be expected to materially affect or be prejudicial to such financial adviser in its capacity as the issuer of the cash confirmation statement contained in the Press Release, the Scheme Circular, the Offer Press Release or the Offer
Documents, as applicable in connection with the Acquisition (it being understood that the Borrower shall request such consent promptly and in good faith). 
 Subject to acceptance and recording thereof by the Administrative Agent pursuant to clause (c) of this Section, from and after the “Effective Date” specified in each Assignment and
Acceptance, the Eligible Assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment and Acceptance, 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 Acceptance, be released from its obligations under this Agreement (and, in the case of an Assignment and Acceptance 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 2.13 and 8.04 with respect to facts and circumstances occurring prior to such Signing Date. 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 clause (d) of this Section. 
 (c) Register. The Administrative Agent, acting solely for this
purpose as non-fiduciary agent of the Borrower, shall maintain at its address specified in Section 8.02 a copy of each Assignment and Acceptance 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 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. 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. 
 (d)
Participations. Any Lender may at any time, without the consent of, or notice to any Person, sell participations to any Person (other than a natural person or the Borrower or any of the Borrower’s Affiliates or Subsidiaries) (each,

  
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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 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 and the Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement. Each Lender that sells a participation
pursuant to this Section 8.06(d) shall, acting solely for U.S. federal income tax purposes as a non-fiduciary agent of the Borrower, maintain a register on which it records the name and address of each participant and the principal amounts of
each participant’s participation interest with respect to the Term Loan (each, a “Participant Register”); provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register to
any Person (including the identity of any participant or any information relating to a participant’s interest in any Commitments, Loans or its other obligations under this Agreement) except to the extent that any relevant party, acting
reasonably and in good faith, determines that such disclosure is necessary to establish that such Commitment, Loan or other obligation is in registered form under section 5f.103-1(c) of the United States Treasury Regulations. Unless otherwise
required by the IRS or any other taxing authority, or required under section 5f.103-1(c) of the United States Treasury Regulations, any disclosure required by the foregoing sentence shall be made by the relevant Lender directly and solely to the IRS
or such other relevant taxing authority. The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of a participation
with respect to the Term Loan for all purposes under this Agreement, notwithstanding any notice to the contrary. 
 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, modification or waiver described in the first proviso of Section 8.01 that
affects such Participant or any thereof described in the second proviso of Section 8.01. Subject to clause (e) of this Section, the Borrower agrees that each Participant shall be entitled to the benefits of 2.13 to the same extent as if it
were a Lender and had acquired its interest by assignment pursuant to clause (b) of this Section. To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 8.04(c) as though it were a Lender.

 (e) Limitations upon Participant Rights. A Participant shall not be entitled to receive any greater payment under
Sections 2.10 and 2.13 than the applicable Lender would have been entitled to receive with respect to the 

  
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participation sold to such Participant, unless the sale of the participation to such Participant is made with the Borrower’s prior written consent. 

(f) Certain Pledges. Any Lender, without the consent of the Borrower or the Administrative Agent may at any time grant security
interest in all or any portion of its rights under this Agreement 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. 
 Section 8.07. Governing Law; Submission to Jurisdiction.
(a) Governing Law. This Agreement shall be governed by, and construed in accordance with, the law of the State of New York. 
 (b) Consent to Jurisdiction. Subject to clause (e) of the following sentence, all judicial proceedings brought against any party arising out of or relating hereto, or any of the obligations
under this Agreement, shall be brought in any federal court of the United States of America sitting in the borough of Manhattan or, if that court does not have subject matter jurisdiction, in any state court of competent jurisdiction in the city or
country of New York. By executing and delivering this agreement, the Borrower, for itself and its Subsidiaries and in connection with its properties, irrevocably (a) accepts generally and unconditionally the exclusive jurisdiction and venue of
such courts; (b) waives any defense of forum non conveniens; (c) agrees that service of all process in any such proceeding in any such court may be made by registered or certified mail, return receipt requested, to its address
provided in accordance with Section 8.02; (d) agrees that service as provided in clause (c) above is sufficient to confer personal jurisdiction over the Borrower and its Subsidiaries in any such proceeding in any such court, and
otherwise constitutes effective and binding service in every respect; and (e) agrees that the Administrative Agent and Lenders retain the right to serve process in any other manner permitted by law or to bring proceedings against the Borrower
or any of its Subsidiaries in the courts of any other jurisdiction in connection with the enforcement of any judgment. 

Section 8.08. Severability. In case any provision in this Agreement shall be held to be invalid, illegal or unenforceable,
such provision shall be severable from the rest of this Agreement, and the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 

Section 8.09. Execution in Counterparts. This Agreement may be executed in any number of counterparts and by different
parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Any counterpart hereof may be executed and delivered via
telecopier, and each such 

  
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counterpart so executed and delivered shall have the same force and effect as an originally executed and delivered counterpart hereof. 

Section 8.10. Survival. The obligations of the Borrower under Sections 2.02(b), 2.10, 2.13 and 8.04, and the obligations of
the Lenders under Section 7.06, shall survive the repayment of the Loans and the termination of the Commitments. In addition, each representation and warranty made, or deemed to be made by any Notice of Borrowing, herein or pursuant hereto
shall survive the making of such representation and warranty, and no Lender shall be deemed to have waived, by reason of making any Loan, any Default or Event of Default that may arise by reason of such representation or warranty proving to have
been false or misleading, notwithstanding that such Lender or the Administrative Agent may have had notice or knowledge or reason to believe that such representation or warranty was false or misleading at the time such extension of credit was made.

 Section 8.11. Waiver of Jury Trial. EACH OF THE BORROWER, THE ADMINISTRATIVE AGENT AND THE LENDERS HEREBY
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. 

Section 8.12. Confidentiality. Each of the Administrative Agent and the Lenders agrees that it will maintain in confidence
and will not disclose, publish or disseminate any confidential information designated as such by the Borrower which it has or shall acquire in connection herewith relating to the business, operations, property, condition (financial or otherwise) or
prospects of the Borrower and its Subsidiaries, except that such information may be disclosed if and to the extent that: (a) such information is in the public domain at the time of disclosure except as a result of a breach of this paragraph by
the disclosing party; (b) such information is required to be disclosed by subpoena or similar process of applicable law or regulations, provided that such Person agrees that it will, to the extent permissible and practicable, give the
Borrower prompt notice of such disclosure; (c) such information is requested to be disclosed to any regulatory or administrative body, commission or self-regulatory body to whose jurisdiction it may be subject or that reasonably claims
authority to regulate or oversee any aspect of its business or that of any of its affiliates; (d) such information is disclosed to counsel, auditors or other professional advisors to such Person, and to any affiliates of such Person, and to its
and its affiliates’ respective partners, members, directors, officers, employees, agents and other representatives, provided that such counsel, auditors, advisors, affiliates, partners, members, directors, officers, employees, agents,
advisors and other representatives are advised to keep such information confidential as set forth herein; (e) such information is disclosed in connection with any litigation or dispute between it and the Borrower concerning this Agreement, so
long as the person to whom such 

  
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information shall be disclosed shall have agreed to keep such information confidential as set forth in this Section 8.12; (f) such information is disclosed to any other party hereto;
(g) such information is disclosed, subject to an agreement containing provisions substantially the same as or no less restrictive than those in this Section 8.12, to (x) any assignee of or Participant in, or any prospective assignee
of or Participant in, any of its rights or obligations under this Agreement or (y) any actual or prospective counterparty (or its advisors) to any swap or derivative transaction relating to the Borrower and its obligations hereunder;
(h) such information is disclosed with the consent of the Borrower and (i) such information is disclosed to any rating agency when required by such rating agency, provided that, prior to any disclosure, such rating agency shall
undertake in writing to preserve the confidentiality of any confidential information relating to the Borrower and its Subsidiaries received by it from the Administrative Agent or any Lender. In addition, the Administrative Agent and each Lender may
disclose the existence of this Agreement and the information about this Agreement to market data collectors, similar services providers to the lending industry, and service providers to the Administrative Agent and the Lenders in connection with the
administration and management of this Agreement. 
 Section 8.13. No Fiduciary Relationship. The Administrative
Agent, the Arranger, each Lender and their Affiliates (collectively, solely for purposes of this paragraph, the “Lenders”), may have economic interests that conflict with those of the Borrower and its Subsidiaries, their
stockholders and/or their affiliates. Borrower agrees that nothing herein or otherwise will be deemed to create an advisory, fiduciary or agency relationship or fiduciary or other implied duty between any Lender, on the one hand, and the Borrower,
its Subsidiaries, its stockholders or its affiliates, on the other. Borrower acknowledges and agrees that (i) the transactions contemplated by the Loan Documents (including the exercise of rights and remedies hereunder and thereunder) are
arm’s-length commercial transactions between the Lenders, on the one hand, and the Borrower, on the other, and (ii) in connection therewith and with the process leading thereto, (x) no Lender has assumed an advisory or fiduciary
responsibility in favor of the Borrower or any of its Subsidiaries, its stockholders or its affiliates with respect to the transactions contemplated hereby (or the exercise of rights or remedies with respect thereto) or the process leading thereto
(irrespective of whether any Lender has advised, is currently advising or will advise the Borrower or any of its Subsidiaries, its stockholders or its Affiliates on other matters) or any other obligation to the Borrower or any of its Subsidiaries
except the obligations expressly set forth in the Loan Documents and (y) each Lender is acting solely as principal and not as the agent or fiduciary of the Borrower or any of its Subsidiaries, its management, stockholders, creditors or any
other Person. Borrower acknowledges and agrees that it has consulted its own legal and financial advisors to the extent it deemed appropriate and that it is responsible for making its own independent judgment with respect to such transactions and
the 

  
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process leading thereto. Borrower agrees that it will not claim that any Lender has rendered advisory services of any nature or respect, or owes a fiduciary or similar duty to it or any of its
Subsidiaries, in connection with such transaction or the process leading thereto. 
 Section 8.14. USA PATRIOT Act.
Each Lender hereby notifies the Borrower that pursuant to the requirements of the PATRIOT 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. 

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

			
	Borrower
	
	THE HANOVER INSURANCE GROUP, INC.
		
	By:	 	 
		 	Name:
		 	Title:

  

			
	Administrative Agent
	
	 GOLDMAN SACHS BANK USA, as Administrative Agent

		
	By:	 	 
		 	Name:
		 	Title:
		
	By:	 	 
		 	Name:
		 	Title:

 
			
	Lenders
	
	GOLDMAN SACHS BANK USA, as Lender
		
	By:	 	 
		 	Name:
		 	Title:

 
			
	Lenders
	
	MORGAN STANLEY BANK, N.A., as Lender
		
	By:	 	 
		 	Name:
		 	Title:

  

 
			
	Lenders
	
	 WELLS FARGO BANK, NATIONAL ASSOCIATION, as Lender

		
	By:	 	 
		 	Name:
		 	Title:

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