Document:

SunOpta Inc.: Exhibit 10.1 - Filed by newsfilecorp.com

Execution Version 

BANK OF MONTREAL 
1 First
Canadian Place 
Toronto, Ontario 
M5X 1H3 
Canada 

BMO CAPITAL MARKETS
CORP. 
3 Times Square 
New York, NY 10036

CONFIDENTIAL 

July 30, 2015 

SunOpta Inc. 
2838 Bovaird Drive West 
Brampton,
Ontario L7A 0H2 
Canada 

SunOpta Foods Inc. 
7301 Ohms Lane, Suite 600

Edina, Minnesota 55439 
USA 

Attention: Robert McKeracher, Vice President and Chief
Financial Officer 

Project Shine 
$140.0 million Holdco PIK Toggle
Bridge Facility 
$290.0 million Opco Second Lien Bridge Facility

Commitment Letter 

Ladies and Gentlemen: 

You have advised Bank of Montreal
(“BMO”) and BMO Capital Markets Corp. (“BMOCM” and, together with
BMO and our affiliates, “we”, “us” or the “Commitment
Parties”) that SunOpta Inc. (the “Holdco Borrower”) and SunOpta Foods
Inc. (the “Opco Borrower” and, together with the Holdco Borrower, the
“Borrowers” or “you”), intend to acquire (the
“Acquisition”), directly or indirectly, the capital stock of the Target
(as defined in Exhibit A) and consummate the other Transactions (including the
finance transactions) described in Exhibit A. Capitalized terms used but not
defined herein shall have the meanings assigned to them in the Exhibits attached
hereto (such Exhibits, together with this letter, collectively, the
“Commitment Letter”). All references to “$” or “dollars” in
this Commitment letter mean US dollars. 

	1. 	
      Commitments

In connection with the
Transactions, BMO is pleased to advise you of its commitment to provide 100% of
the aggregate principal amount of each of the Bridge Facilities upon the terms
and subject only to the applicable conditions set forth in (a) Section 6 hereof,
(b) the paragraph titled “Conditions to Borrowing” under each of the Term Sheets
set forth as Exhibit B hereto (the “Holdco Term Sheet”) and Exhibit C
hereto (the “Opco Term Sheet” and, together with the Holdco Term Sheet,
the “Term Sheets”) and (c) Exhibit D hereto). BMO and any other initial
lender that becomes a party hereto pursuant to the provisions set forth in the
proviso to the third sentence of Section 2 below are sometimes referred to
herein, collectively, as the “Initial Lenders” and each, individually, as
an “Initial Lender”.

	2. 	
      Titles and Roles

It is agreed that (a) BMOCM will
act as the lead arranger (in such capacity, together with any other lead
arranger appointed pursuant to the provisions set forth in the proviso to the
third sentence of this Section 2, collectively, the “Lead Arranger”) and
the bookrunner for each of the Bridge Facilities (in such capacity, together
with any other bookrunner appointed pursuant to the provisions set forth in the
proviso to the third sentence of this Section 2, collectively, the
“Bookrunner”), and (b) BMO will act as administrative agent (in such
capacity, the “Bridge Administrative Agent”) for each of the Bridge
Facilities. It is further agreed that BMOCM shall have “lead left side”
designation and shall appear on the top left of any Information Materials (as
defined below) and all other offering or marketing materials in respect of the
Bridge Facilities and will have the role and responsibilities customarily
associated with such designation. Except as set forth below, you and we further
agree that no other titles will be awarded and no compensation (other than that
expressly contemplated by this Commitment Letter and the Fee Letter) will be
paid to any Lender (as defined below) in order to obtain its commitment to
participate in the Bridge Facilities unless you and we shall so agree; provided
that you may, on or prior to the date which is 15 business days after the date
of your acceptance of this Commitment Letter (the “Signing Date”),
appoint one or more additional lead arrangers and/or bookrunners for the Bridge
Facilities, and award such lead arrangers and/or bookrunners, additional agent
or co-agent, manager or co-manager titles or confer other titles in a manner and
with economics set forth in the immediately succeeding proviso (it being
understood that, to the extent you appoint any additional lead arrangers,
bookrunners, agents, co-agents, managers or co-managers or confer other titles
in respect of the Bridge Facilities, then, notwithstanding anything in Section 3
to the contrary, the commitments of BMO in respect of the Bridge Facilities, in
each case pursuant to and in accordance with this proviso, will be permanently
reduced by the amount of the commitments of such appointed entities (or their
relevant affiliates) in respect of each of the Bridge Facilities, with such
reduction allocated in the manner described in clause (y) of the succeeding
proviso, upon the execution by such financial institution (and any relevant
affiliate) of customary joinder documentation and, thereafter, each such
financial institution (and any relevant affiliate) shall constitute a
“Commitment Party,” “Lead Arranger” and/or “Bookrunner” hereunder and it or its
relevant affiliate providing such commitment shall constitute an “Initial
Lender” hereunder); provided, further, that, in connection with the appointment
of any additional lead arranger and/or any bookrunner for the Bridge Facilities
in accordance with the immediately preceding proviso, (x) the aggregate
economics payable to all such additional lead arrangers and/or joint bookrunners
(or any relevant affiliate thereof) in respect of any of the Bridge Facilities
shall not exceed 45% of the total economics that would otherwise be payable to
the Commitment Parties in respect of the Bridge Facilities pursuant to the Fee Letter (exclusive of any fees payable to the Bridge
Administrative Agent in its capacity as such) and (y) each additional lead
arranger and/or bookrunner (or its relevant affiliates) shall assume a
proportion of the commitments with respect to each of the Bridge Facilities
(with such commitments to be allocated ratably across each of the Bridge
Facilities) that is equal to the proportion of the economics allocated to such
lead arranger and/or joint bookrunner. 

2 

 

	3. 	
      Syndication and Approach to
  Market

The Lead Arranger reserves the
right, prior to or after the Closing Date (as defined below), to syndicate all
or a portion of the Initial Lenders’ commitments hereunder to a group of banks,
financial institutions and other institutional lenders and investors (together
with the Initial Lenders, the “Lenders”) identified by the Lead Arranger
in consultation with you and reasonably acceptable to you. Notwithstanding the
foregoing, the Lead Arranger will not syndicate to those banks, financial
institutions and other institutional lenders and investors (i) who are
competitors of you and your subsidiaries and of the Target and its subsidiaries
that are separately identified in writing by you to us from time to time, and
(ii) any of their affiliates (which, for the avoidance of doubt, shall not
include any bona fide debt investment funds that are affiliates of the persons
referenced in clause (i) above) that are either (a) identified in writing by you
from time to time or (b) readily identifiable on the basis of such affiliate’s
name (clauses (i) and (ii) above, collectively “Disqualified Lenders”).

Notwithstanding the Lead
Arranger’s right to syndicate the Bridge Facilities and receive commitments with
respect thereto, (i) each of the Initial Lenders shall not be relieved, released
or novated from their obligations hereunder (including its obligation to fund
its portion of the Bridge Facilities on the date of both the consummation of the
Acquisition and the date of the funding under the Bridge Facilities (the date of
such consummation and funding, the “Closing Date”)) in connection with
any syndication, assignment or participation of the Bridge Facilities, including
its commitment in respect thereof, until after the Closing Date has occurred,
(ii) no assignment or novation shall become effective with respect to all or any
portion of the Initial Lenders’ commitments in respect of the Bridge Facilities
until the funding of the Bridge Facilities on the Closing Date has occurred and
(iii) unless you otherwise agree in writing, each Commitment Party shall retain
exclusive control over all rights and obligations with respect to its
commitments and agreements in respect of the Bridge Facilities, including all
rights with respect to consents, modifications, supplements, waivers and
amendments, until after the Closing Date has occurred. 

3 

Without limiting your obligations
to assist with syndication efforts as set forth herein, it is understood that
the Commitment Parties’ commitments hereunder are not conditioned upon the
syndication of, or receipt of commitments in respect of, the Bridge Facilities
and in no event shall the commencement or successful completion of syndication
of the Bridge Facilities constitute a condition to the availability of the
Bridge Facilities on the Closing Date. The Lead Arranger may commence
syndication efforts promptly after the Signing Date and as part of its
syndication efforts, it is our intent to have Lenders commit to the Bridge
Facilities prior to the Closing Date (subject to the limitations set forth in
the preceding paragraph). Until the earliest of (a) the date on which a
Successful Syndication (as defined in the Fee Letter) is achieved and (b) the
date that is 60 days following the Closing Date (the “Syndication End
Date”), you agree to actively assist the Lead Arranger in completing a
timely syndication that is reasonably satisfactory to us and you. Such
assistance shall include, until the later of the Syndication End Date and the
Closing Date, (i) your using commercially reasonable efforts to ensure that any
syndication efforts benefit materially from your existing
lending and investment banking relationships and, to the extent appropriate and
necessary and not in contravention of the terms of the Acquisition Agreement,
the Target’s existing lending and investment banking relationships, (ii) direct
contact between senior management, certain representatives and certain relevant
non-legal advisors of you, on the one hand, and the proposed Lenders, on the
other hand (and, to the extent appropriate and necessary and not in
contravention of the terms of the Acquisition Agreement, your using commercially
reasonable efforts to arrange for contact between senior management of the
Target, on the one hand, and the proposed Lenders, on the other hand), in all
such cases at times and locations mutually agreed upon, (iii) your assistance
(including, to the extent appropriate and necessary and not in contravention of
the terms of the Acquisition Agreement, the use of commercially reasonable
efforts to cause the Target to assist) in the preparation of the Information
Materials (as defined below) and other customary offering and marketing
materials to be used in connection with the syndication of the Bridge
Facilities, (iv) your using commercially reasonable efforts to obtain, at your
expense, prior to the launch of general syndication of the Opco Notes, public
ratings for the Bridge Facilities and the Notes (the “Facilities
Ratings”) from each of Standard & Poor’s Ratings Services
(“S&P”) and Moody’s Investors Service, Inc. (“Moody’s”) and a
public corporate credit rating and a public corporate family rating
(collectively, the “Corporate Ratings” and, together with the Facilities
Ratings, the “Ratings”) in respect of each of the Holdco Borrower and the
Opco Borrower after giving effect to the Transactions from both of S&P and
Moody’s, respectively, (v) the hosting, with the Lead Arranger, of a reasonable
number of meetings and conference calls to be mutually agreed upon with
prospective Lenders at reasonable times and locations to be mutually agreed upon
and upon reasonable advance notice and (vi) your ensuring that, prior to the
later of the Syndication End Date and the Closing Date, there will not be any
competing issues, offerings, placements or arrangements of debt or equity
securities or commercial bank or other syndicated credit facilities by or on
behalf of you or any of your subsidiaries (and your using commercially
reasonable efforts, to the extent appropriate and necessary and not in
contravention of the terms of the Acquisition Agreement, to cause the Target to
ensure that there will not be any competing issues, offerings, placements or
arrangements of debt or equity securities or commercial bank or other syndicated
credit facilities of the Target or its subsidiaries) being offered, placed or
arranged (other than the Bridge Facilities, the Existing Credit Facilities (as
defined in Exhibit A), the Notes, the Equity Securities or any “demand
securities” issued in lieu of the any of the Notes pursuant to the Fee Letter
(the Notes and the “demand securities”, collectively, the “Takeout
Securities”), indebtedness of the Target and its subsidiaries disclosed in,
or otherwise permitted to be issued or incurred, prior to, or to remain
outstanding on, the Closing Date under, the Acquisition Agreement or other
indebtedness that has otherwise been consented to by the Lead Arranger) without
the consent of the Lead Arranger, if such issuance, offering, placement or
arrangement would materially impair the primary syndication of the Bridge
Facilities or the offering of the Notes or the Equity Securities (it being
understood and agreed that your and your subsidiaries’ and the Target’s and its
subsidiaries’ deferred purchase price obligations, ordinary course working
capital facilities and ordinary course capital lease, purchase money and
equipment financings will not be deemed to materially impair the primary
syndication of the Credit Facilities or the offering of the Notes or the Equity
Securities). Notwithstanding anything to the contrary contained in this
Commitment Letter, the Fee Letter or any other letter agreement or undertaking
concerning the financing of the Transactions to the contrary, your obligations
to assist in syndication efforts as provided herein (including commercially
reasonable efforts to obtain the Ratings and the compliance with any of the
provisions set forth in clauses (i) through (vi) above) shall not constitute a
condition to the commitments hereunder or the funding of the Bridge Facilities on the Closing Date and shall terminate on
the later of the Syndication End Date and the Closing Date. 

4 

Except as otherwise expressly
provided herein, the Lead Arranger, in its capacity as such, will manage all
aspects of any syndication of the Bridge Facilities, in consultation with you,
including decisions as to the selection of institutions to be approached and
when they will be approached, when their commitments will be accepted, which
institutions will participate (subject to your prior consent (not to be
unreasonably withheld, delayed or conditioned) , but in any event excluding
Disqualified Lenders), the allocation of the commitments among the Lenders and
the amount and distribution of fees among the Lenders. To assist the Lead
Arranger in its syndication efforts, you agree to promptly prepare and provide
(and, to the extent appropriate and necessary and not in contravention of the
terms of the Acquisition Agreement, to use commercially reasonable efforts to
cause the Target to provide) to us such customary information with respect to
you, the Target and each of your and their respective subsidiaries and the
Transactions set forth in clause (iii) of the preceding paragraph, the
historical financial information required to be provided in accordance with
paragraphs 4 and 5 of Exhibit D hereto and customary financial estimates,
forecasts and other projections delivered to us by you (the
“Projections”), as the Lead Arranger may reasonably request in connection
with the structuring, arrangement and syndication of the Bridge Facilities. For
the avoidance of doubt, you will not be required to provide any information to
the extent that the provision thereof would violate any law, rule or regulation,
or any obligation of confidentiality binding upon, or waive any attorney-client
privilege of, you, the Target or any of your or their respective subsidiaries or
affiliates. Notwithstanding anything herein to the contrary, the only financial
statements that shall be required to be provided to the Commitment Parties in
connection with the syndication of the Bridge Facilities shall be those required
to be delivered pursuant to paragraphs 4 and 5 of Exhibit D. 

You hereby acknowledge that (a)
the Lead Arranger will make available Information (as defined below),
Projections and other offering and marketing material and presentations,
including confidential information memoranda to be used in connection with the
syndication of the Bridge Facilities (any such memorandum, an “Information
Memorandum”, and such Information, Projections, other offering and marketing
material and Information Memoranda, collectively with the Term Sheet, the
“Information Materials”) on a confidential basis to the proposed
syndicate of Lenders by posting the Information Materials on Merrill DataSite,
IntraLinks, Debt X, SyndTrak Online, Debtdomain or another similar electronic
system and (b) certain of the Lenders may be “public side” Lenders (i.e.,
Lenders that wish to receive only information that (i) is publicly available,
(ii) is not material with respect to you, the Target or your or their respective
subsidiaries or securities for purposes of Canadian provincial, United States
federal and State securities laws or (iii) constitutes information of the type
that would be publicly available if the Target or its subsidiaries were public
reporting companies (as reasonably determined by you) (collectively, the
“Public Side Information”; any information that is not Public Side
Information, “Private Side Information”) and who may be engaged in
investment and other market related activities with respect to you, the Target
or your or their respective subsidiaries or securities (each, a “Public
Sider”, and each Lender that is not a Public Sider, a “Private
Sider”). You will be solely responsible for the contents of the Information
Materials and each of the Commitment Parties shall be entitled to use and rely
upon the information contained therein without responsibility for independent
verification thereof. 

5 

At the reasonable request of the
Lead Arranger, you agree to assist (and, to extent appropriate and necessary and
not in contravention of the terms of the Acquisition Agreement, use commercially
reasonable efforts to cause the Target to assist) us in preparing an additional
version of the Information Materials to be used in connection with the
syndication of the Bridge Facilities that includes only Public Side Information
with respect to you, the Target and/or any of your or their respective
subsidiaries or securities, to be used by Public Siders. The Public Side
Information will be substantially consistent with the information that would be
included in any offering memorandum for the Takeout Securities and in any
filings made by you and your subsidiaries with the Securities and Exchange
Commission and by the Target or any of its subsidiaries if the Target and/or its
subsidiaries were public reporting companies. It is understood that in
connection with your assistance described above, authorization letters in a form
customarily included in the Information Materials for bridge financings will be
included in any Information Materials (i.e., separate authorization letters
and/or Information Materials containing only Public Side Information and/or
Information Materials containing Private Side Information) that authorize the
distribution of the Information Materials to prospective Lenders, represent that
the additional version of the Information Materials contains only Public Side
Information with respect to you, the Target and your and its respective
subsidiaries and securities (other than as set forth in the following paragraph
of this Section 3), contain the representations set forth in Section 4 below and
exculpate us and our affiliates with respect to any liability related to the use
or misuse of the content of such Information Materials or related offering and
marketing materials by the recipients thereof, and exculpate you and your
subsidiaries, and the Target and its subsidiaries and affiliates in the event of
any unauthorized misuse of the Information Materials or related offering and
marketing materials by the recipients thereof. Before distribution of any
Information Materials, at our reasonable request, you agree to use commercially
reasonable efforts to identify that portion of the Information Materials that
may be distributed to the Public Siders as “Public Information”, which, at a
minimum, shall mean that the word “PUBLIC” shall appear prominently on the first
page thereof. By marking Information Materials as “PUBLIC”, you shall be deemed
to have authorized the Commitment Parties and the proposed Lenders to treat such
Information Materials as containing only Public Side Information (it being
understood that you shall not be under any obligation to mark the Information
Materials “PUBLIC”). We will not make any materials not marked “PUBLIC”
available to Public Siders. 

You acknowledge and agree that
the following documents, without limitation, may be distributed to both Private
Siders and Public Siders, unless you advise the Lead Arranger in writing
(including by email) within a reasonable time prior to their intended
distribution that such materials should only be distributed to Private Siders;
provided you have been given a reasonable opportunity to review such
materials and comply with provincial securities laws’ disclosure obligations:
(a) administrative materials prepared by the Lead Arranger for prospective
Lenders (such as a lender meeting invitation, bank allocation, if any, and
funding and closing memoranda), (b) term sheet (including revisions thereto) and
notification of changes in the Bridge Facilities’ terms and conditions and (c)
drafts and final versions of the Facilities Documentation. If you advise us in
writing (including by email), within a reasonable period of time prior to
dissemination, that any of the foregoing should be distributed only to Private
Siders, then Public Siders will not receive such materials without your consent.

The Holdco Borrower covenants and
agrees to use commercially reasonable efforts to access the equity markets on
market terms in consultation with BMO and BMOCM to place, issue or sell Equity Securities as contemplated by paragraph
(c) of Exhibit A on a timely basis on or immediately prior to the Closing Date.
From and after Signing Date until the Expiration Date (as defined below), you
agree not to place, issue or sell any equity securities other than the Equity
Securities without the consent of the Lead Arranger, if such placement, issuance
or sale would materially impair the offering of the Equity Securities as
contemplated by paragraph (c) of Exhibit A. If, after the tenth Business Day (as
defined in Exhibit D) of the Holdco Marketing Period (as defined in Exhibit D),
either the Equity Securities Investment Bank (as defined in Exhibit D)
determines in its reasonable judgment (after consultation with the Holdco
Borrower) or the Holdco Borrower determines in its reasonable judgment (after
consultation with the Equity Securities Investment Bank) that an Equity
Securities Transaction (as defined in Exhibit D) is not reasonably likely to be
consummated by the Closing Date, each of the Holdco Borrower and the Debt
Investment Banks (as defined in Exhibit D) shall use commercially reasonable
efforts to consummate a Holdco Debt Transaction on a timely basis on or
immediately prior to the Closing Date. 

6 

 

	4. 	
      Information

You hereby represent and warrant
that (with respect to information relating to the Target or any of its
subsidiaries or any controlled affiliate of any thereof, subject to compliance
with applicable law, to your knowledge), (a) all written information (such
information, other than (i) the Projections and (ii) information of a general
economic or industry specific nature, the “Information”) that has been or
will be made available to any Commitment Party, directly or indirectly, by you
or by any of your representatives on your behalf in connection with the
transactions contemplated hereby, when taken as a whole, is or will, when
furnished, be correct in all material respects and does not or will not, when
furnished and when taken as a whole, contain any untrue statement of a material
fact or omit to state a material fact necessary in order to make the statements
contained therein not materially misleading in light of the circumstances under
which such statements are made (after giving effect to all supplements and
updates thereto from time to time) and (b) the Projections that have been or
will be made available to us by you or your representatives in connection with
the transactions contemplated hereby have been or will be prepared in good faith
based upon assumptions that are believed by you to be reasonable at the time
when made, it being understood that the Projections are as to future events and
are not to be viewed as facts, the Projections are subject to significant
uncertainties and contingencies, many of which are beyond your control, no
assurance can be given that any particular Projections will be realized and
actual results during the period or periods covered by any such Projections may
differ significantly from the projected results and such differences may be
material. You agree that, if at any time prior to the later of the Syndication
End Date and the Closing Date, you become aware that any of the representations
and warranties in the preceding sentence would be incorrect in any material
respect (with respect to information relating to the Target or any of its
subsidiaries or any controlled affiliate of any thereof, subject to compliance
with applicable law, to your knowledge) if the Information and the Projections
were being furnished, and such representations were being made, at such time,
then you will (or, with respect to the Information and such Projections relating
to the Target or any of its subsidiaries or any controlled affiliated of any
thereof, will use commercially reasonable efforts to) promptly supplement the
Information and Projections such that such representations and warranties are
(with respect to information relating to the Target or any of its subsidiaries
or any controlled affiliate of any thereof, subject to compliance with
applicable law, to your knowledge) correct in all material respects under those
circumstances, it being understood that such supplementation shall cure any breach of such representations and warranties.
In arranging and syndicating the Bridge Facilities, each of the Commitment
Parties will be entitled to use and rely primarily on the Information and the
Projections without responsibility for independent verification thereof and does
not assume responsibility for the accuracy or completeness of the Information or
Projections. 

7 

 

	5. 	
      Fees

As consideration for the
commitment of the Commitment Parties hereunder and for the agreement of the Lead
Arranger and Bookrunner to perform the services described herein, you agree to
pay (or cause to be paid) the fees set forth in the Term Sheet and in the Fee
Letter dated the date hereof and delivered herewith with respect to the Bridge
Facilities (the “Fee Letter”), if and to the extent payable. Once paid,
except as provided in the Fee Letter or as separately agreed to in writing by
you and us, such fees shall not be refundable under any circumstances. 

	6. 	
      Conditions

The commitments of the Commitment
Parties hereunder to fund the Bridge Facilities on the Closing Date is subject
solely to (a) the conditions set forth in the section entitled “Conditions to
Borrowing” in each of Exhibit B and Exhibit C hereto and the conditions set
forth in Exhibit D hereto and (b) delivery of a customary borrowing notice
(clauses (a) and (b) subject, on the Closing Date, to the Certain Funds
Provisions (as defined below)); provided that such notice shall not
include (i) any representation or statement as to the absence (or existence) of
any default or event of default under the Facilities Documentation or (ii) the
truth or accuracy of the representations and warranties set forth in the
Facilities Documentation (other than the Specified Representations (as defined
below)) (collectively, the “Conditions”), and, upon satisfaction (or
waiver by the Lead Arranger) of such conditions, the initial funding of the
Bridge Facilities shall occur; it being understood and agreed that there are no
other conditions (implied or otherwise) to the commitments hereunder, including
compliance with the terms of this Commitment Letter, the Fee Letter and the
Facilities Documentation. 

Notwithstanding anything in this
Commitment Letter (including the immediately preceding paragraph), the Fee
Letter, the Facilities Documentation or any other agreement or other undertaking
concerning the financing of the Transactions to the contrary, (a) the only
representations and warranties the making or accuracy of which shall be a
condition to the availability and funding of the Bridge Facilities on the
Closing Date shall be (i) such of the representations and warranties made by or
with respect to the Target and its subsidiaries and their respective businesses
in the Acquisition Agreement, but only to the extent that you have (or your
applicable affiliate has) the right to terminate your (or its) obligations under
the Acquisition Agreement or decline to consummate the Acquisition as a result
of a breach of such representations and warranties in the Acquisition Agreement
(the “Specified Acquisition Agreement Representations”) and (ii) the
Specified Representations (as defined below) and (b) the terms of the Facilities
Documentation shall be in a form such that they do not impair the availability
or funding of the Bridge Facilities on the Closing Date if the conditions set
forth in the first paragraph of this Section 6 are satisfied or waived by the
Lead Arranger (it being understood that to the extent any security interest in
any Collateral (as defined in the Opco Term Sheet) is not or cannot be provided
and/or perfected on the Closing Date (other than the pledge and perfection of
the security interest in (i) the certificated capital stock of the Opco Borrower
owned by the Holdco Borrower, the certificated capital stock of each of the Opco
Borrower’s subsidiaries whose certificated capital stock is pledged to
secure the Existing North American Revolving Facility and the certificated
capital stock of the Target and each of its wholly owned material U.S. domestic
subsidiaries; provided that, to the extent that you have used
commercially reasonable efforts to procure the delivery thereof prior to the
Closing Date, certificated capital stock of the Target and its subsidiaries will
only be required to be delivered on the Closing Date pursuant to the terms set
forth above if such certificates are actually received from the Seller or the
Target and (ii) other assets pursuant to which a lien may be perfected by the
filing of a financing statement under the Uniform Commercial Code (or equivalent
Canadian personal property laws)) after your use of commercially reasonable
efforts to do so or without undue burden or expense, then the provision and/or
perfection of a security interest in such Collateral shall not constitute a
condition precedent to the availability of the Opco Bridge Facility on the
Closing Date but instead shall be required to be delivered after the Closing
Date pursuant to arrangements and timing to be mutually agreed by the Bridge
Administrative Agent and the Opco Borrower but, in any event, not later than 90
days after the Closing Date or such longer period as may be agreed by the Bridge
Administrative Agent in its reasonable discretion). For purposes hereof,
“Specified Representations” means the representations and warranties of
the applicable Borrower and, with respect to the Opco Bridge Facility, the
guarantors thereof, to be set forth in the Facilities Documentation relating to
existence of the applicable Borrower and, in the case of the Opco Bridge
Facility, the guarantors thereof (but not, for the avoidance of doubt, the
Target and its subsidiaries); organizational power and authority to enter into
the Facilities Documentation; due authorization, due execution, delivery and
enforceability, in each case, relating to the Facilities Documentation: the
incurrence of the loans to be made under the Bridge Facilities and the provision
of the guarantees under the Opco Bridge Facility, and the granting of the
security interests in the Collateral to secure the Opco Bridge Facility, do not
conflict with the organizational documents of the applicable Borrowers and, in
the case of the Opco Bridge Facility only, guarantors of the Opco Bridge
Facility; solvency as of the Closing Date (after giving effect to the
Transactions) of the applicable Borrower and its subsidiaries on a consolidated
basis (such representation and warranty to be determined in a manner consistent
with the manner in which solvency is determined in the solvency certificate in
the form set forth in Annex I to Exhibit D); Federal Reserve margin regulations;
the Investment Company Act; the incurrence of the loans to be made under the
Bridge Facilities and the use of proceeds thereof not violating anti-terrorism
laws, including the PATRIOT Act, OFAC and the FCPA, Part II.1 of the Criminal
Code (Canada), the Special Economic Measures Act (Canada), the United Nations
Act (Canada), the Proceeds of Crime (Money Laundering) and Terrorist Financing
Act (Canada), with respect to the Opco Bridge Facility only, subject to the
parenthetical in the immediately preceding sentence, creation, perfection and
validity of security interests in the Collateral. This paragraph and the
provisions herein shall be referred to as the “Certain Funds Provisions”. 

8 

The definitive documentation for
the each of Bridge Facilities (the “Facilities Documentation”) shall be
drafted initially by counsel for the Borrowers and shall (a) contain the terms
set forth in the Term Sheet set forth in Exhibit B or Exhibit C hereto, as
applicable, and shall contain only those conditions precedent, mandatory
prepayments, representations and warranties, affirmative and negative covenants,
financial covenants and events of default expressly set forth in such Term Sheet
and, to the extent such terms are not expressly set forth in such Term Sheet,
such other terms that are based on the Senior Secured Notes Indenture dated as
of January 18, 2013 between Wells Enterprises, Inc. and U.S. Bank National
Association, as Trustee and Notes Collateral Agent, governing its 6.75% Senior
Secured Notes due 2020(provided that the security documentation with
respect to the Opco Bridge Facility and any related term loans, exchange notes or Takeout Securities shall
be based on the security documentation for the Existing North American Credit
Facility (as defined on Exhibit A hereto)) and such other terms as the Borrowers
and Lead Arranger shall reasonably agree, (b) give due regard to the operational
requirements of the applicable Borrower and its subsidiaries in light of their
size, structure, industries, businesses, business practices, matters disclosed
in the Acquisition Agreement and proposed business plan and operations, and (c)
negotiated in good faith by the applicable Borrower and the Lead Arranger within
a reasonable period of time to be determined based on the expected Closing Date
and taking into account the timing of the syndication of the Bridge Facilities
and the pre-closing requirements of the Acquisition Agreement. To the extent any
of the Specified Representations are qualified by or subject to “material
adverse effect”, the definition thereof shall be “Material Adverse
Effect” (as defined in the Acquisition Agreement) for purposes of any
representations and warranties made or to be made on, or as of, the Closing Date
only (or a date prior thereto). This paragraph and the provisions herein are
referred to as the “Documentation Principles”. 

9 

 

	7. 	
      Expenses and
Indemnity

To induce the Commitment Parties
to enter into this Commitment Letter and the Fee Letter and to proceed with the
documentation of the Bridge Facilities, you agree: 

	
       
	
      (a) 
	
      to the extent that the Closing Date occurs, to reimburse
      each Commitment Party from time to time, upon presentation of a summary
      statement, for all reasonable, documented and invoiced out-of-pocket
      expenses, due diligence expenses, syndication expenses, travel expenses
      and reasonable fees, disbursements and other charges of Paul Hastings LLP
      and Goodmans LLP, US and Canadian counsel, respectively, to the Commitment
      Parties, and, if necessary and consented to by you, of local counsel to
      the Commitment Parties in each appropriate jurisdiction, in each case
      incurred in connection with the Bridge Facilities and the preparation,
      negotiation and enforcement of this Commitment Letter, the Fee Letter, the
      Facilities Documentation and any security arrangements in connection
      therewith; provided that, in the event that the Transactions are
      not consummated or the Closing Date does not occur, your reimbursement
      obligations for expenses of BMO and BMOCM are governed by that certain
      letter agreement dated June 23, 2015 between you and BMO and BMOCM (the
      “Expense Letter”). The foregoing provisions in this paragraph shall be
      superseded in each case, to the extent covered thereby, by the applicable
      provisions contained in the Facilities Documentation upon execution
      thereof and thereafter shall have no further force and effect,
  and

10 

	 
	(b) 
	to indemnify and hold harmless each Commitment Party,
      their respective affiliates and the respective officers, directors,
      employees, agents, controlling persons, members, advisors and other
      representatives and the successors and permitted assigns of each of the
      foregoing (each, an “Indemnified Person”), from and against any and
      all losses, claims, damages and liabilities of any kind or nature and
      reasonable, documented and invoiced out-of-pocket fees and expenses, joint
      or several, to which any such Indemnified Person may become subject to the
      extent arising out of, resulting from or in connection with, any claim,
      litigation, investigation or proceeding (including any inquiry or
      investigation), actual or threatened, relating to any of the foregoing (any of
      the foregoing, a “Proceeding”) in connection with this Commitment Letter,
      the Fee Letter, the Transactions or any related transaction contemplated hereby
      or thereby, the Bridge Facilities or any use of the proceeds thereof, regardless
      of whether any such Indemnified Person is a party thereto and whether or not
      such Proceeding is brought by you, your equityholders, your affiliates,
      creditors or any other third person, and to reimburse each such Indemnified
      Person within 30 days of any written demand for any reasonable and documented or
      invoiced out-of-pocket legal fees and expenses incurred in connection with
      investigating, responding to, or defending any of the foregoing of one firm of
      counsel for all such Indemnified Persons, taken as a whole and, if necessary, of
      a single firm of local counsel in each appropriate jurisdiction (which may
      include a single firm of special counsel acting in multiple jurisdictions) for
      all such Indemnified Persons, taken as a whole (and, solely in the case of an
      actual or perceived conflict of interest where the Indemnified Person affected
      by such conflict notifies you of the existence of such conflict and thereafter
      retains its own counsel, of one other firm of counsel for such affected
      Indemnified Person) or other reasonable and documented or invoiced out-of-pocket
      fees and expenses incurred in connection with investigating, responding to, or
      defending any of the foregoing; provided that the foregoing indemnity
      will not, as to any Indemnified Person, apply to any loss, claim, damage,
      liability, cost or expense to the extent it has been determined by a court of
      competent jurisdiction in a final, non-appealable judgment to have resulted from
      (i) the willful misconduct, bad faith or gross negligence of such Indemnified
      Person or any of its affiliates or any of its or their respective officers,
      directors, partners, members, employees, agents, advisors or other
      representatives or successors and assigns of any of the foregoing, (ii) a
      material breach of the obligations under this Commitment Letter, the Fee Letter
      or the Facilities Documentation of such Indemnified Person or any of such
      Indemnified Person’s affiliates or of any of its or their respective officers,
      directors, partners, members, employees, agents, advisors or other
      representatives or successors and assigns of any of the foregoing, (iii) in the
      case of a Proceeding initiated by you or one of your subsidiaries against the
      relevant Indemnified Person, a breach of the obligations under this Commitment
      Letter or the Term Sheets, the Fee Letter or the Facilities Documentation by
      such Indemnified Person or any of such Indemnified Person’s affiliates or of any
      of its or their respective officers, directors, partners, members, employees,
      agents, advisors or other representatives or successors and assigns of any of
      the foregoing or (iv) any Proceeding that does not arise from any act or
      omission by you or any of your affiliates and that is brought by any Indemnified
      Person against any other Indemnified Person; provided that the Bridge
      Administrative Agent, the Lead Arranger and the Bookrunner to the extent
      fulfilling their respective roles as an agent or arranger under the Bridge
      Facilities and in their capacities as such, shall remain indemnified in respect
      of such Proceedings to the extent that none of the exceptions set forth in any
      of clauses (i), (ii) and (iii) of the immediately preceding proviso applies to
      such person at such time.

11 

Notwithstanding any other
provision of this Commitment Letter, (a) no Indemnified Person shall be liable
for any damages arising from the use by others of information or other materials
obtained through internet, electronic, telecommunications or other information
transmission systems, except to the extent that such damages have resulted from
the willful misconduct, bad faith or gross negligence of such Indemnified Person
or any of its affiliates or any of its or their respective equityholders,
officers, directors, partners, employees, agents, controlling persons, members,
advisors or other representatives (as determined by a court of competent
jurisdiction in a final non-appealable judgment) and (b) none of you, the
Indemnified Persons, the Target, or any of your or their respective affiliates
or the respective directors, officers, employees, advisors and agents of the
foregoing shall be liable for any indirect, special, punitive or consequential
damages (including, without limitation, any loss of profits, business or
anticipated savings) in connection with this Commitment Letter, the Fee Letter,
the Transactions (including the Bridge Facilities and the use of proceeds
thereunder), or with respect to any activities related to the Bridge Facilities,
including the preparation of this Commitment Letter, the Fee Letter and the
Facilities Documentation; provided that nothing in this sentence shall
limit your indemnification obligations to the extent set forth herein to the
extent such indirect, special, punitive or consequential damages are included in
any third party claim in connection with which such Indemnified Person is
entitled to indemnification hereunder. 

You shall not be liable for any
settlement of any Proceeding effected without your written consent (which
consent shall not be unreasonably withheld or delayed, it being understood that
the withholding of consent due to non-satisfaction of any of the conditions
described in clauses (i) and (ii) of the succeeding paragraph (with “you” being
substituted for “such Indemnified Person” in each such clause) shall be deemed
reasonable), but if settled with your written consent or if there is a final and
non-appealable judgment by a court of competent jurisdiction for the plaintiff
in any such Proceeding, you agree to indemnify and hold harmless each
Indemnified Person from and against any and all losses and reasonable and
documented or invoiced legal or other out-of-pocket expenses by reason of such
settlement or judgment in accordance with and to the extent provided in the
other provisions of this Section 7. If the Indemnifying Party has reimbursed any
Indemnified Person for any legal or other expenses in accordance with such
request and there is a final and non-appealable determination by a court of
competent jurisdiction that the Indemnified Person was not entitled to
indemnification or contribution rights with respect to such payment pursuant to
this Section 7, then the Indemnified Person shall promptly refund such amount.

You shall not, without the prior
written consent of any Indemnified Person (which consent shall not be
unreasonably withheld or delayed, it being understood that the withholding of
consent due to non-satisfaction of any of the conditions described in clauses
(i) and (ii) of this sentence shall be deemed reasonable), effect any settlement
of any pending or threatened Proceeding in respect of which indemnity could have
been sought hereunder by such Indemnified Person unless such settlement (i)
includes an unconditional release of such Indemnified Person in form and
substance reasonably satisfactory to such Indemnified Person from all liability
or claims that are the subject matter of such Proceeding and (ii) does not
include any statement as to or any admission of fault, culpability, wrongdoing
or a failure to act by or on behalf of such Indemnified Person. 

Each Indemnified Person shall, in
consultation with you, give (subject to confidentiality or legal restrictions)
such information and assistance to you as you may reasonably request in connection with any Proceeding in connection with any losses,
claims, damages, liabilities and expenses. 

12 

 

	8. 	
      Sharing of Information, Absence of Fiduciary
      Relationships, Affiliate Activities

You acknowledge that the
Commitment Parties and their respective affiliates may be providing debt
financing, equity capital or other services (including, without limitation,
investment banking and financial advisory services, securities trading, hedging,
financing and brokerage activities and financial planning and benefits
counseling) to other persons in respect of which you, the Target and your and
their respective affiliates may have conflicting interests regarding the
transactions described herein and otherwise (including, without limitation, that
BMO or one of its affiliates is the administrative agent and a lender under the
Existing North American Facility and under the credit facility of the Target).
None of the Commitment Parties or their respective affiliates will use
confidential information obtained from you, the Target or your or its affiliates
or representatives by virtue of the transactions contemplated by this Commitment
Letter or their other relationships with you in connection with the performance
by them or their respective affiliates of services for other persons, and none
of the Commitment Parties or their affiliates will furnish any such information
to other persons, except to the extent expressly permitted in Section 9. You
also acknowledge that none of the Commitment Parties or their affiliates has any
obligation to use in connection with the transactions contemplated by this
Commitment Letter, or to furnish to you, confidential information obtained by
them from other persons. 

As you know, the Commitment
Parties and their affiliates are full service securities firms engaged, either
directly or through their affiliates, in various activities, including
securities trading, commodities trading, investment management, financing and
brokerage activities and financial planning and benefits counseling for both
companies and individuals. In the ordinary course of these activities, the
Commitment Parties and their affiliates may actively engage in commodities
trading or trade the debt and equity securities (or related derivative
securities) and financial instruments (including bank loans and other
obligations) of you, the Target, any of your or their respective subsidiaries
and affiliates and other companies which may be the subject of the arrangements
contemplated by this Commitment Letter for their own account and for the
accounts of their customers and may at any time hold long and short positions in
such securities. The Commitment Parties and their affiliates may also co-invest
with, make direct investments in, and invest or co-invest client monies in or
with funds or other investment vehicles managed by other parties, and such funds
or other investment vehicles may trade or make investments in securities of you,
the Target, any of your or their respective subsidiaries and affiliates or other
companies which may be the subject of the arrangements contemplated by this
Commitment Letter or engage in commodities trading with any thereof. The
Commitment Parties and their respective affiliates may have economic interests
that conflict with those of you or the Target. You agree that the Commitment
Parties will act under this Commitment Letter as independent contractors and
that nothing in this Commitment Letter or the Fee Letter will be deemed to
create an advisory, fiduciary or agency relationship or fiduciary or other
implied duty between the Commitment Parties and you or the Target, your or their
respective equityholders or your or their respective affiliates. You acknowledge
and agree that (a) the transactions contemplated by this Commitment Letter and
the Fee Letter are arm’s-length commercial transactions between the Commitment
Parties and, if applicable, their affiliates, on the one hand, and you, on the
other, (b) in connection therewith and with the process leading to such
transactions, each Commitment Party and its applicable affiliates (as the case
may be) are acting solely as principals and not as agents or fiduciaries of you, the Target, your or their
respective management, equityholders, creditors or affiliates or any other
person, (c) the Commitment Parties and their applicable affiliates (as the case
may be) have not assumed an advisory or fiduciary responsibility or any other
obligation in favor of you or your affiliates with respect to the transactions
contemplated hereby or the process leading thereto (irrespective of whether the
Commitment Parties or any of their respective affiliates have advised or are
currently advising you or the Target on other matters), except the obligations
expressly set forth in this Commitment Letter and the Fee Letter, (d) you have
consulted your own legal, accounting and financial advisory, regulatory and tax
advisors to the extent you deem appropriate and (e) you are responsible for
making your own independent judgment with respect to such transactions and the
process leading thereto. Please note that the Commitment Parties and their
affiliates have not provided any legal, accounting, regulatory or tax advice.
You agree that you will not claim, and hereby waive any such claim, that the
Commitment Parties or their applicable affiliates, as the case may be, have
rendered advisory services of any nature or respect, or owe a fiduciary or
similar duty to you or your affiliates, in connection with such transaction or
the process leading thereto. 

13 

 

	9. 	
      Confidentiality

You agree that you will not
disclose, directly or indirectly, the Fee Letter or the contents thereof or,
prior to your acceptance hereof, this Commitment Letter or the contents hereof
(including the Term Sheets and other Exhibits and attachments hereto) to any
person or entity without the prior written approval of the Lead Arranger (such
approval not to be unreasonably withheld, delayed or conditioned), except (a)
your affiliates, officers, directors, agents, employees, attorneys, accountants,
advisors, members or partners, in each case who are informed of the confidential
nature of this Commitment Letter, the Fee Letter and the contents hereof and
thereof and who are or have been advised of their obligation to keep the same
confidential, (b) if the Commitment Parties consent in writing to such proposed
disclosure or (c) pursuant to the order of any court or administrative agency in
any pending legal, judicial or administrative proceeding, or otherwise as
required by applicable law, rule, regulation or compulsory legal process or to
the extent requested or required by governmental and/or regulatory authorities,
in each case based on the reasonable advice of your legal counsel (in which case
you agree, to the extent practicable and not prohibited by applicable law, rule
or regulation to inform us promptly thereof prior to disclosure);
provided that (i) you may disclose this Commitment Letter and its
contents (but not the Fee Letter or its contents), to the Sellers, the Target,
the Target’s subsidiaries and the respective officers, directors, agents,
employees, attorneys, accountants, advisors, members, partners, stockholders,
controlling persons or equityholders of the foregoing who are informed of the
confidential nature of this Commitment Letter and the contents hereof and
thereof and who are or have been advised of their obligation to keep the same
confidential, (ii) you may disclose this Commitment Letter and its contents (but
not the Fee Letter or its contents) in any offering memorandum related to the
Takeout Securities or the Equity Securities (or any other debt or equity
securities issued in lieu of the Takeout Securities or the Equity Securities or
the Bridge Facilities), in any syndication or other marketing materials in
connection with the Bridge Facilities (including the Information Materials) or
in connection with any public or regulatory filing requirement relating to the
Transactions, (iii) you may disclose the Term Sheets and other Exhibits and
annexes to the Commitment Letter, and the contents thereof, to potential Lenders
and their affiliates involved in any related commitments and to rating agencies
in connection with obtaining the Ratings, (iv) you may disclose the aggregate
fee amount contained in the Fee Letter as part of Projections, pro forma
information or a generic disclosure of aggregate sources and uses related to fee amounts in
connection with the Transactions to the extent customary or required in offering
and marketing materials for the Bridge Facilities, the Takeout Securities or the
Equity Securities (or any other debt or equity securities issued in lieu of the
Takeout Securities, the Equity Securities or the Bridge Facilities) or to the
extent customary or required, in any public or regulatory filing requirement
relating to the Transactions, (v) you may make public disclosure of the
existence and amount of the commitments hereunder and of the identity of the
Bridge Administrative Agent, Bookrunner and Lead Arranger, (vi) to the extent
portions thereof have been redacted in a manner to be reasonably satisfactory to
us and you (including the portions thereof addressing fees payable to the
Commitment Parties and/or the Lenders), you may disclose the Fee Letter and the
contents thereof to the Sellers, the Target, the Target’s subsidiaries and the
respective officers, directors, agents, employees, attorneys, accountants,
advisors, members, partners, stockholders, controlling persons or equityholders
of the foregoing on a confidential and need to know basis, (vii) you may
disclose this Commitment Letter, the Fee Letter and the contents hereof and
thereof to the extent this Commitment Letter, the Fee Letter or the contents
hereof or thereof, as applicable, become publicly available other than by reason
of disclosure by you in breach of this Commitment Letter, and (viii) you may
disclose this Commitment Letter, the Fee Letter and the contents hereof and
thereof to any prospective additional lead arranger or additional bookrunner, in
either case to the extent in contemplation of appointing such person pursuant to
the provisions of the first proviso set forth in Section 2 of this Commitment
Letter and to any such person’s affiliates and its and their respective
officers, directors, employees, agents, attorneys, accountants, advisors,
members, partners, stockholders, controlling persons and equityholders who agree
to be bound by the confidentiality restrictions with respect thereto on
substantially the terms set forth in this paragraph. 

14 

The Commitment Parties and their
affiliates will use all information provided to them or such affiliates by or on
behalf of you hereunder or in connection with the Acquisition and the other
Transactions solely for the purpose of providing the services which are the
subject of this Commitment Letter and shall treat confidentially all such
information and shall not publish, disclose or otherwise divulge such
information; provided that nothing herein shall prevent the Commitment
Parties or their affiliates from disclosing any such information (a) pursuant to
the order of any court or administrative agency or in any pending legal,
judicial or administrative proceeding, or otherwise as required by applicable
law, rule, regulation or compulsory legal process based on the advice of counsel
(in which case the Commitment Parties agree (except with respect to any audit or
examination conducted by bank accountants or any governmental bank regulatory
authority exercising examination or regulatory authority), to the extent
practicable and not prohibited by applicable law, rule or regulation, to inform
you promptly thereof prior to disclosure), (b) upon the request or demand of any
regulatory authority having jurisdiction over the Commitment Parties or any of
their respective affiliates (in which case the Commitment Parties agree (except
with respect to any audit or examination conducted by bank accountants or any
governmental bank regulatory authority exercising examination or regulatory
authority), to the extent practicable and not prohibited by applicable law, rule
or regulation to inform you promptly thereof prior to disclosure), (c) to the
extent that such information becomes publicly available other than by reason of
improper disclosure by the Commitment Parties or any of their affiliates or any
related parties thereto in violation of any confidentiality obligations owing to
you, the Target, the Sellers or any of your or their respective affiliates
(including those set forth in this paragraph) or to the extent any such
information is developed independently by us without the use of any other
confidential information, (d) to the extent that such information is received by the Commitment Parties from a third party that is
not, to the Commitment Parties’ knowledge, subject to contractual or fiduciary
confidentiality obligations owing to you, the Target, the Sellers or any of your
or their respective affiliates or related parties, (e) to the Commitment
Parties’ affiliates and to their respective officers, directors, employees,
legal counsel, independent auditors, professionals and other experts or agents
who need to know such information in connection with the Transactions and who
are informed of the confidential nature of such information and who are subject
to customary confidentiality obligations of professional practice or who agree
to be bound by the terms of this paragraph (or language substantially similar
to, or no less restrictive than, this paragraph) (with each such Commitment
Party responsible for each such person’s compliance with this paragraph), (f) to
potential or prospective Lenders, participants or assignees and to any direct or
indirect contractual counterparty to any swap or derivative transaction (each a
“Swap Counterparty”) relating to the Borrowers or any of its
subsidiaries, in each case who agree to be bound by the terms of this paragraph
(or language substantially similar to, or no less restrictive than, this
paragraph); provided that the disclosure of any such information to any
Lenders, participants, assignees or Swap Counterparties or prospective Lenders,
participants, assignees or Swap Counterparties referred to above shall be made
subject to the acknowledgment and acceptance by such Lender, participant,
assignee or Swap Counterparty or prospective Lender, participant, assignee or
Swap Counterparty that such information is being disseminated on a confidential
basis (on substantially the terms set forth in this paragraph or as is otherwise
reasonably acceptable to you and such Commitment Party, including as expressly
agreed in any Information Materials or other marketing materials) in accordance
with the standard syndication processes of such Commitment Party or customary
market standards for dissemination of such type of information, (g) for purposes
of establishing a “due diligence” defense in connection with or arising out of
the issuance of securities or making of loans pursuant to this Commitment Letter
(h) with your prior written consent, to rating agencies on a confidential basis
in connection with obtaining the Ratings, (i) in connection with the exercise of
any remedy or enforcement of any rights hereunder in any litigation or
arbitration action or proceeding relating thereto, to the extent such disclosure
is reasonably necessary in connection with such litigation or arbitration action
or proceeding (provided that you shall be given notice thereof and a
reasonable opportunity to seek a protective court order with respect to such
information prior to such disclosure (it being understood that the refusal by a
court to grant such a protective order shall not prevent the disclosure of such
information thereafter) and (j) with your prior written consent. In the event
that the Bridge Facilities are funded, the Commitment Parties’ and their
respective affiliates’, if any, obligations under this paragraph shall be
superseded by the confidentiality provisions in the Facilities Documentation, to
the extent covered thereby, upon the initial funding thereunder. Otherwise, the
confidentiality provisions set forth in this paragraph shall survive the
termination of this Commitment Letter and expire and shall be of no further
effect on the date occurring on the second anniversary after the date hereof. 

15 

 

	10. 	
      Miscellaneous

This Commitment Letter and the
commitments hereunder shall not be assignable by any party hereto (other than
subject to the limitations set forth in Section 3, by the Commitment Parties to
any other Lender) without the prior written consent of each other party hereto
(and any attempted assignment without such consent shall be null and void). This
Commitment Letter and the commitments hereunder are intended to be solely for
the benefit of the parties hereto (and Indemnified Persons to the extent
expressly set forth herein) and are not intended to and do not confer any benefits upon, or create any rights in favor of, any
person other than the parties hereto (and Indemnified Persons to the extent
expressly set forth herein). Subject to the limitations set forth in Section 3
above, the Commitment Parties reserve the right to employ the services of their
respective affiliates or branches in providing services contemplated hereby and
to allocate, in whole or in part, to their affiliates or branches certain fees
payable to the Commitment Parties in such manner as the Commitment Parties and
their affiliates or branches may agree in their sole discretion and, to the
extent so employed, such affiliates or branches shall be entitled to the
benefits and protections afforded to, and subject to the provisions governing
the conduct of, the Commitment Parties hereunder (provided that the
Commitment Parties shall be liable for the actions or inactions of any such
person whose services are so employed). This Commitment Letter may not be
amended or any provision hereof waived or modified except by an instrument in
writing signed by each of the Commitment Parties and you. This Commitment Letter
may be executed in any number of counterparts, each of which shall be deemed an
original and all of which, when taken together, shall constitute one agreement.
Delivery of an executed counterpart of a signature page of this Commitment
Letter by facsimile transmission or other electronic transmission (e.g., a “PDF”
or “TIFF”) shall be effective as delivery of a manually executed counterpart
hereof. This Commitment Letter (including the Exhibits hereto), together with
the Fee Letter and the Expense Letter, (i) are the only agreements that have
been entered into among the parties hereto with respect to the Bridge
Facilities, and (ii) supersede all prior understandings, whether written or
oral, among us with respect to the Bridge Facilities and set forth the entire
understanding of the parties hereto with respect thereto.

16 

This Commitment Letter and the
Fee Letter shall be governed by, and construed in accordance with the laws of
the State of New York; provided that, notwithstanding the foregoing, it is
understood and agreed that (a) the interpretation of the definition of “Material
Adverse Effect” (as defined in Exhibit D) (and whether or not a Material Adverse
Effect has occurred), (b) the determination of the accuracy of any Specified
Acquisition Agreement Representations and whether as a result of any inaccuracy
thereof you (or your affiliate) have the right (taking into account any
applicable cure provisions) to terminate your (or its) obligations under the
Acquisition Agreement or decline to consummate the Acquisition and (c) the
determination of whether the Acquisition has been consummated in accordance with
the terms of the Acquisition Agreement, in each case shall be governed by, and
construed in accordance with, the laws of the State of Delaware, regardless of
the laws that might otherwise govern under applicable principles of conflicts of
laws thereof. 

EACH OF THE PARTIES HERETO
IRREVOCABLY WAIVES ANY RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING, SUIT,
CLAIM OR COUNTERCLAIM BROUGHT BY OR ON BEHALF OF ANY PARTY RELATED TO OR ARISING
OUT OF THE TRANSACTIONS, THIS COMMITMENT LETTER, THE FEE LETTER OR THE
PERFORMANCE OF SERVICES HEREUNDER OR THEREUNDER. The parties hereto hereby
submit to the exclusive jurisdiction of the federal and state courts located in
the Borough of Manhattan in the City of New York (or any appellate court
therefrom) in connection with any dispute related to this Commitment Letter or
the Fee Letter or any matters contemplated hereby or thereby, and agree that any
service of process, summons, notice or document by registered mail addressed to
such party shall be effective service of process for any suit, action or
proceeding relating to any such dispute . Each of the parties hereto irrevocably
and unconditionally waives any objection to the laying of venue of any such
suit, action or proceeding brought in any such court and any claim that any such
suit, action or proceeding has been brought in an inconvenient forum. A final judgment in any
such suit, action or proceeding brought in any such court may be enforced in any
other jurisdiction where such party is or may be subject by suit upon judgment.
Each of the parties hereto agrees that service of process, summons, notice or
document by registered mail addressed to you or us at the addresses set forth
above shall be effective service of process for any suit, action or proceeding
brought in any such court.

17 

We hereby notify you that
pursuant to the requirements of Proceeds of Crime (Money Laundering) and
Terrorist Financing Act (Canada) and the USA Patriot Act (Title III
of Pub. L. 107-56 (signed into law October 26, 2001)) (together, the “AML
Law”), each of us and each of the Lenders may be required to obtain, verify
and record information that identifies the Borrowers and the Guarantors, which
information may include their names, addresses, tax identification numbers and
other information that will allow each of us and the Lenders to identify the
Borrowers and the Guarantors in accordance with AML Law. This notice is given in
accordance with the requirements of AML Law and is effective for each of us and
the Lenders. 

The indemnification, compensation
(if applicable), reimbursement (if applicable), sharing of information, absence
of fiduciary relationships, no agency, affiliate activities, jurisdiction,
governing law, venue, waiver of jury trial, syndication (including the “Market
Flex” provisions in the Fee Letter) and confidentiality provisions contained
herein and in the Fee Letter shall remain in full force and effect regardless of
whether Facilities Documentation shall be executed and delivered and
notwithstanding the termination or expiration of this Commitment Letter or the
Commitment Parties’ commitments hereunder; provided that your obligations
under this Commitment Letter (other than your obligations with respect to (a)
assistance to be provided in connection with the syndication of such commitments
(including supplementing and/or correcting Information and Projections) prior to
the later of the Syndication End Date and the Closing Date and (b)
confidentiality of the Fee Letter and the contents thereof) shall automatically
terminate and be superseded by the provisions of the Facilities Documentation
upon the initial funding thereunder, and you shall automatically be released
from all liability in connection therewith at such time. You may terminate this
Commitment Letter and/or the Commitment Parties’ commitment with respect to the
Bridge Facilities hereunder at any time subject to the provisions of the
preceding sentence. In addition, in the event that a lesser amount of
indebtedness is required to fund the Transactions for any reason, you may reduce
the Initial Lenders’ commitments with respect to the Bridge Facilities (on a pro
rata basis amongst the Initial Lenders) in a manner consistent with the
allocation of purchase price reduction described under paragraph 1 of Exhibit D
and subject to the minimum size of the Opco Bridge Facility and the Opco Notes
set forth therein. 

Section headings used herein are
for convenience of reference only and are not to affect the construction of, or
to be taken into consideration in interpreting, this Commitment Letter. 

If the foregoing correctly sets
forth our agreement, please indicate your acceptance of the terms of this
Commitment Letter and the Fee Letter by returning to BMOCM on behalf of the
Commitment Parties, executed counterparts hereof and of the Fee Letter not later
than 11:59 p.m., New York time, on August 3, 2015. The Commitment Parties’
commitment and the obligation of the Lead Arranger hereunder will expire at such
time in the event that the Commitment Parties have not received such executed
counterparts in accordance with the immediately preceding sentence. If you do so
execute and deliver to us this Commitment Letter and the Fee Letter, we agree to
hold our commitment available for you until the earliest of (i) after execution of the Acquisition Agreement and prior to the
consummation of the Transactions, the termination of the Acquisition Agreement
by you (or your affiliates) or with your (or your affiliates’) written consent
in accordance with its terms (other than with respect to provisions therein that
expressly survive termination) in the event that the Acquisition is not
consummated, (ii) the consummation of the Acquisition with or without the
funding of the Bridge Facilities and (iii) 11:59 p.m., New York time, on the
Outside Date (as defined in the Acquisition Agreement as in effect on the date
hereof); provided that the Outside Date may be extended up to February 3,
2016 by the Sellers’ Representative or the Purchaser in accordance with Section
9.1(b)(i) of the Acquisition Agreement if (x) all conditions to closing set
forth in Article VIII of the Acquisition Agreement are satisfied or waived other
than the conditions set forth in Section 8.1 thereof and conditions that by
their nature are to be satisfied at the Closing (as defined in the Acqusition
Agreement) and (y) the parties to the Acquisition Agreement are still actively
seeking in good faith approval under the HSR Act (as defined in the Acquisition
Agreement); provided, further, that the Outside Date may be
extended up to February 3, 2016 by the Sellers’ Representative in accordance
with Section 9.1(b)(i) of the Acquisition Agreement if (x) all conditions to
closing set forth in Article VIII of the Acquisition Agreement are satisfied or
waived other than conditions that by their nature are to be satisfied at the
Closing (as defined in the Acqusition Agreement) and (y) the Closing (as defined
in the Acquisition Agreement) has not occurred (such earliest date, the
“Expiration Date”). Upon the occurrence of any of the events referred to
in the preceding sentence, this Commitment Letter and the commitments of each of
the Commitment Parties hereunder and the agreement of the Lead Arranger to
provide the services described herein shall automatically terminate unless the
Commitment Parties shall, in their discretion, agree to an extension in writing. 

18 

[Remainder of this page intentionally left blank]

19 

We are pleased to have been given
the opportunity to assist you in connection with the financing for the
Transactions. 

	Very truly yours, 
	 
	BANK OF MONTREAL 
	 	  
	By:  	/s/ James J. Goll
		Name: James J. Goll
	 	Title: Managing Director
	 	  
	BMO CAPITAL MARKETS CORP. 
	 	  
	By:   	/s/ James J. Goll
		Name: James J. Goll
	 	Title: Managing Director

[SIGNATURE PAGE TO COMMITMENT LETTER] 

Accepted and agreed to as of the date first written above: 

	 	SUNOPTA INC. 
	 	  
	 	  
	 	  
	 By:	/s/ Rick Albert
	 	Name: Rick Albert
	 	Title: Treasurer
	 	  
	 	  
	 	  
	 	SUNOPTA FOODS INC. 
	 	  
	 By:	/s/ Rick Albert
	 	Name: Rick Albert
	 	Title: Treasurer

[SIGNATURE PAGE TO COMMITMENT LETTER] 

EXHIBIT A 

PROJECT SHINE 
TRANSACTION DESCRIPTION 

Capitalized terms used but not
defined in this Exhibit A shall have the meanings given to them in the
Commitment Letter to which this Exhibit A is attached, including the other
Exhibits thereto. In the event any such capitalized term is subject to multiple
or differing definitions, the appropriate meaning thereof in this Exhibit A
shall be determined by reference to the context in which it is used. 

SunOpta Inc. and/or a
wholly-owned subsidiary owned by SunOpta Inc. (“Purchaser”) intends to
acquire (the “Acquisition”) the capital stock of Sunrise Holdings
(Delaware), Inc., a Delaware corporation (the “Target”), from the
sellers named on Schedule I to the Acquisition Agreement (collectively, the
“Sellers”).

In connection therewith, it is intended that: 

	
       
	
      (a) 
	
      Purchaser will consummate the Acquisition pursuant to
      that certain Purchase and Sale Agreement, dated as of July 30, 2015
      (together with all exhibits, annexes, schedules and other disclosure
      letters thereto, collectively, as modified, amended, supplemented,
      consented to or waived, the “Acquisition Agreement”), by and among
      the Sellers, Shine Seller Rep, LLC (the “Sellers’ Representative”)
      and the Purchaser, the Sellers will sell all of the equity interest in the
      Target to Purchaser and the Sellers will receive cash in exchange for
      their equity interests in the Target (the “Acquisition
      Consideration”).

	
       
	
       
	
       

	
       
	
      (b) 
	
      the Opco Borrower will enter into a consent and waiver
      (the “Existing North American Credit Facility Amendment”) to its
      seventh amended and restated revolving credit agreement dated July 27,
      2012 (as amended, the “Existing North American Credit Facility”
      and, together with the Organic Corporation B.V.’s amended and restated
      multipurpose facilities agreement dated September 25, 2012 (as amended,
      the “Existing European Credit Facility”), the “Existing Credit
      Facilities”) to cause the Transactions to be permitted (together with
      any other amendments that are requested by the Opco Borrower).

	
       
	
       
	
       

	
       
	
      (c) 
	
      The Holdco Borrower or an affiliate thereof will, at its
      option, either (i) issue and sell its common capital stock in US dollars
      only (the “Equity Securities”) in a public registered offering
      and/or a private placement in the US on or before the Closing Date (it
      being understood that a portion of the offering of Equity Securities may
      also be placed in Canada on a private basis only) yielding $140.0 million
      (the “Stock/Holdco Bridge Amount”) in gross cash proceeds and/or
      (ii) to the extent that Equity Securities (and/or other equity or
      equity-linked securities) yielding gross proceeds of less than the
      Stock/Holdco Bridge Amount are issued on or before the Closing Date, issue
      and sell unsecured, subordinated PIK-toggle notes (the “Holdco PIK
      Notes”) in a private placement offering in the US under Rule 144A or
      other private placement (it being understood that a portion of the
      offering of the Holdco PIK Notes may also be placed in Canada on a private
      basis only) yielding gross proceeds in US dollars that, when added to
      the gross proceeds received from the issuance of Equity Securities
under clause (c)(i) above does not exceed the Stock/Holdco Bridge Amount and/or
(iii) to the extent that Equity Securities (and/or other equity linked
securities) and Holdco PIK Notes collectively yielding gross cash proceeds of
less than the Stock/Holdco Bridge Amount are issued on or before the Closing
Date under clauses (c)(i) or (c)(ii), obtain increasing rate bridge loans under
the credit facility described in Exhibit B to the Commitment letter (the
“Holdco Bridge Facility”) in an aggregate principal amount that, when
added to the amount of gross proceeds raised from the issuance of such Equity
Securities (and/or other equity or equity-linked securities) and Holdco PIK
Notes is equal to the Stock/Holdco Bridge Amount; provided that, to the
extent that (i) the gross proceeds from the issuance of Equity Securities
(and/or other equity or equity-linked securities) and/or Holdco PIK Notes equals
or exceeds $100.0 million but is less than the Stock/Holdco Bridge Amount (the
“Holdco Deficiency”), the amount of the Holdco Deficiency shall not be
funded through the issuance or sale of Holdco PIK Notes and/or borrowings under
the Holdco Bridge Facility, but shall be added to the Bond/Opco Bridge Amount
and (ii) the Holdco PIK Notes are required to be issued on or prior to the
Closing Date with any original issue discount (“OID”) or upfront fees, at
the Holdco Borrower’s election, the Stock/Holdco Bridge Amount shall be
increased by an amount sufficient to fund any such OID or upfront fees (which
amounts shall be automatically added to the Commitment Parties’ commitments
under the Commitment Letter). 

A-1 

 

	 	
      (d) 
	
      The Opco Borrower will (i) issue and sell second lien
      secured notes (the “Opco Notes” and, together with the Holdco PIK
      Notes, the “Notes”) in a private placement offering in the US under
      Rule 144A or other private placement (it being understood that a portion
      of the offering of the Notes may also be placed in Canada on a private
      basis only) yielding $290.0 million (the “Bond/Opco Bridge Amount”)
      in gross cash proceeds and/or (ii) to the extent that Opco Notes yielding
      gross proceeds of less than the Bond/Opco Bridge Amount are issued on or
      before the Closing Date, obtain second lien secured increasing rate bridge
      loans under the senior second lien secured credit facility described in
      Exhibit B to the Commitment letter (the “Opco Bridge Facility” and,
      together with the Holdco Bridge Facility, the “Bridge Facilities”),
      in an aggregate principal amount that, when added to the amount of gross
      proceeds raised from the issuance of the Opco Notes is equal to the
      Bond/Opco Bridge Amount; provided that, to the extent that there is
      any Holdco Deficiency, the amount of the Holdco Deficiency shall be added
      to the Bond/Opco Bridge Amount and funded through the issuance and sale of
      additional Opco Notes and/or additional borrowings under the Opco Bridge
      Facility and (ii) the Opco Notes are required to be issued on or prior to
      the Closing Date with any OID or upfront fees, at the Opco Borrower’s
      election, the Bond/Opco Bridge Amount shall be increased by an amount
      sufficient to fund any such OID or upfront fees (which amounts shall be
      automatically added to the Commitment Parties’ commitments under the
      Commitment Letter).

	 	
       
	
       

	 	
      (e) 
	
      Immediately after giving effect to the Acquisition, the
      principal, accrued and unpaid interest, fees, premium, if any, and other
      amounts, other than (i) contingent obligations not then due and payable
      and that by their terms survive the termination of the Target Credit Facility (as defined
below) and (ii) certain existing letters of credit outstanding under the Target
Credit Facility that on the Closing Date will be grandfathered into, or
backstopped by, the Existing Credit Facilities or cash collateralized in a
manner satisfactory to the issuing banks thereof, under that certain Credit
Agreement, dated as of March 19, 2013 (as amended, supplemented or otherwise
modified from time to time prior to the date hereof, the “Target Credit
Facility”), by and among Sunrise Growers, Inc., Farm Capital
Incorporated and Pacific Ridge Farms, LLC, as borrowers, Sunrise Holdings
(Delaware), Inc., as a guarantor, certain financial institutions, as lenders,
and Bank of Montreal, as administrative agent, will be repaid in full in
connection with the other Transactions and all commitments to extend credit
under the Target Credit Facility will be terminated and any security interests
and guarantees in connection therewith shall be terminated and/or released (the
“Refinancing”). 

A-2 

 

	 	
      (f) 
	
      The proceeds of (i) borrowings of up to $50.0 million
      under the Existing North American Credit Facility plus, at either
      Borrowers’ election, an additional $20.0 million to fund incremental peak
      working capital fluctuations of the Target and its subsidiaries plus, at
      either Borrowers’ election, an amount sufficient to fund any OID or
      upfront fees required to be funded in connection with the issuance of any
      Holdco PIK Notes or the Opco Notes (or any Takeout Securities issued in
      lieu of either thereof), (ii) the Holdco Bridge Facility, the Holdco PIK
      Notes and/or the Equity Securities (or any Takeout Securities issued in
      lieu of the Holdco PIK Notes), (iii) the Opco Bridge Facility and/or the
      Opco Notes (or any Takeout Securities issued in lieu of the Opco Notes)
      and (iv) available cash on hand, if any, of the Holdco Borrower and its
      subsidiaries and the Target and its subsidiaries on the Closing Date will
      be applied to pay (A) the Acquisition Consideration, (B) the fees, costs
      and expenses incurred in connection with the Transactions (such fees,
      costs and expenses, the “Transaction Costs”) and (C) for the
      Refinancing (the amounts set forth in clauses (A) through (C) above,
      collectively, the “Acquisition Costs”).

The transactions described above
(including the payment of Transaction Costs) are collectively referred to herein
as the “Transactions”. 

A-3 

EXHIBIT B 

PROJECT SHINE 
HOLDCO INCREASING RATE BRIDGE
FACILITY 
SUMMARY OF PRINCIPAL TERMS AND
CONDITIONS1 

	
      Borrower: 
	
      SunOpta Inc 

	
       
	
       

	
      Transaction: 
	
      As set forth in Exhibit A to the Commitment Letter.
    

	
       
	
       

	
      Bridge Administrative Agent: 
	
      BMO will act as sole and exclusive administrative agent
      for the Bridge Facility (in such capacity, the “Holdco Bridge
      Administrative Agent”) for a syndicate of banks, financial
      institutions and other institutional lenders and investors determined in
      consultation with, and reasonably acceptable to, the Borrower (together
      with the Initial Lenders, the “Holdco Bridge Lenders”), and will
      perform the duties customarily associated with such role. 

	
       
	
       

	
      Bridge Lead Arranger and Bridge Bookrunner:
      
	
      BMOCM will act as the lead arranger for the Holdco Bridge
      Facility and lead bookrunner for the Holdco Bridge Facility, and will
      perform the duties customarily associated with such roles. 

	
       
	
       

	
      Bridge Loans: 
	
      The Holdco Bridge Lenders will make increasing rate
      bridge loans (the “Holdco Bridge Loans”) to the Holdco Borrower,
      available in a single borrowing on the Closing Date, in an aggregate
      principal amount as described in paragraph (c) of Exhibit A (the
      “Holdco Bridge Facility”). 

	
       
	
       

	
      Currency 
	
      US dollars only. 

	
       
	
       

	
      Purpose: 
	
      The proceeds of the Holdco Bridge Facility will be used
      by the Holdco Borrower on the Closing Date, together with the proceeds of
      the borrowings under the Existing North American Credit Facility, proceeds
      from the issuance of the Equity Securities (if any) , proceeds from the
      issuance of the Holdco PIK Notes (if any) (or any Takeout Securities
      issued in lieu of the Holdco PIK Notes), the proceeds of the Opco Bridge
      Facility, the proceeds from the issuance of the Opco Notes (if any) (or
      any “demand securities” issued in lieu of the Opco Notes) and available
      cash on hand, if any, at the Holdco Borrower and the Opco Borrower, the
      Target and their respective subsidiaries, solely to pay Acquisition Costs.
      

_________________________________

  1 All capitalized terms used but not defined herein
shall have the meanings given to them in the Commitment Letter to which this
Term Sheet is attached, including the Exhibits thereto. In the event any such
capitalized term is subject to multiple or differing definitions, the
appropriate meaning thereof in this Exhibit B shall be determined by reference
to the context in which it is used. 

B-1 

	
      Ranking: 
	
      The Holdco Bridge Facility will constitute unsecured
      senior subordinated indebtedness of the Holdco Borrower, subordinated in
      right of payment on such terms only to the obligations of the Holdco
      Borrower under any indebtedness of the Opco Borrower and its subsidiaries
      for which the Holdco Borrower is also obligated (whether directly or by
      guarantee), including the Existing North American Credit Facility and the
      Opco Bridge Facility and/or the Opco Notes, and will contain payment
      subordination provisions customary for recently issued high yield
      unsecured senior subordinated debt securities. The Holdco Bridge Facility
      will otherwise rank equal in right of payment with all other existing and
      future senior indebtedness of the Holdco Borrower and senior to all
      existing and future subordinated indebtedness of the Holdco Borrower that
      expressly provides for its subordination to the Holdco Bridge Facility.
      Any indebtedness of Unrestricted Subsidiaries (as defined below) shall be
      non-recourse to the Holdco Borrower. 

	
       
	
       

	
      Guarantees: 
	
      None. 

	
       
	
       

	
      Security: 
	
      None. 

	
       
	
       

	
      PIK Toggle: 
	
      Interest on any Holdco Bridge Loans will be payable in
      full in cash by the Holdco Borrower in the case of the first two interest
      payments that apply to full quarterly interest periods after the Closing
      Date. Thereafter, with respect to each interest period prior to the final
      maturity, acceleration or full redemption of the Holdco Bridge Loans, at
      any time that there is a Distributable Cash Amount (to be defined in the
      Holdco Bridge Facilities Documentation (as defined below) as the sum of
      (x) unrestricted cash held by the Holdco Borrower and (y) the amount of
      unrestricted cash held by the Opco Borrower or its domestic subsidiaries
      that is permitted to be distributed to the Holdco Borrower under any
      operative financing facilities or agreements of the Opco Borrower and
      applicable law, in the case of each of the preceding clauses (x) and (y)
      calculated as of the date that is 15 days prior to the beginning of the
      applicable interest period, and subject to thresholds and exceptions to be
      mutually agreed), the Holdco Borrower shall first apply the Distributable
      Cash Amount as a cash payment in respect of the outstanding interest
      payments (a “Cash Payment”) and second make the remaining interest
      payment (if any) by adding such interest to the principal amount (a
      “PIK Payment”). Notwithstanding anything to the contrary
      herein, with respect to each interest period for which the Holdco Borrower
      has made a PIK Payment, interest shall be payable (as to the portion of
      the interest subject to such PIK Payment only) at the applicable rate for
      such interest period as set forth below plus 75 basis points (such 75 basis point
increase, the “PIK Margin Increase”). 

B-2 

 

	Interest Rates: 	The Holdco Bridge Loans will initially bear
      interest at a rate per annum equal to the sum of the greater of (i) the
      London interbank offered rate (“LIBOR”) for US dollars (for interest
      periods of 1, 2, 3 or 6 months, as selected by the Holdco Borrower) and
      (ii) 1.00% plus, in each case, the Spread. The “Spread” will initially
      equal 10.25% (before giving effect to any PIK Margin Increase) or 11.00%
      (after giving effect to any PIK Margin Increase). If the Holdco Bridge
      Loans are not repaid in full within three months following the Closing
      Date, the Spread will increase by 75 basis points at the end of such three
      month period and will increase by an additional 75 basis points at the end
      of each three month period thereafter. 
	  	  
		Notwithstanding anything to the contrary set
      forth above, at no time, other than as provided under the heading “Default
      Rate” below, shall the per annum yield on the Holdco Bridge Loans exceed
      the amount specified in the Fee Letter in respect of the Holdco Bridge
      Facility as the “Holdco Total Cap”, or, with
      respect to any interest period for which the Holdco Borrower has made a
      PIK Payment (and as to the portion of the interest subject to such PIK
      Payment only), exceed the amount specified in the Fee Letter in respect of
      the Holdco Bridge Facility as the “Holdco PIK Total
      Cap”. 
	  	  
		Upon the occurrence of a Holdco Demand Failure
      Event (as defined in the Fee Letter), the outstanding Holdco Bridge Loans
      will automatically and immediately accrue interest at the Holdco Total Cap
      (or, with respect to any interest period for which the Holdco Borrower has
      made a PIK Payment, the Holdco PIK Total Cap (as to the portion of the
      interest subject to such PIK Payment only)). 
	  	  
		Following the Initial Holdco Bridge Loan
      Maturity Date, all outstanding Holdco Extended Term Loans will accrue
      interest at a rate equal to the Holdco Total Cap (or, with respect to any
      interest period for which the Holdco Borrower has made a PIK Payment, the
      Holdco PIK Total Cap (as to the portion of the interest subject to such
      PIK Payment only)). 
	  	  
	
      Interest Payments: 
	
      Interest on the Holdco Bridge Facility will be payable
  quarterly in arrears. 

B-3 

 

	
      Default Rate: 
	
      Upon the occurrence and during the continuance of any
      payment or bankruptcy event of default, overdue principal, interest, fees
      and other amounts shall bear interest at the applicable interest rate plus
      2.0% per annum. 

	
       
	
       

	
      Maturity: 
	
      All Holdco Bridge Loans will have an initial maturity
      date that is the one year anniversary of the Closing Date (the “Holdco
      Bridge Loan Maturity Date”), which shall automatically be extended as
      provided below. If any of the Holdco Bridge Loans have not been previously
      repaid in full on or prior to the Holdco Bridge Loan Maturity Date, so
      long as no bankruptcy event of default has occurred and is continuing as
      of such date, such Holdco Bridge Loans shall automatically be extended
      into and become senior unsecured term loans (each, a “Holdco Extended
      Term Loan”) due on the date that is seven years and six months
      after the Closing Date and having the terms set forth in Annex II to this
      Exhibit B. The date on which Holdco Bridge Loans become Holdco Extended
      Term Loans is referred to as the “Holdco Extension Date”.

	
       
	
       

		
      At any time on or after the Holdco Extension Date, from
      time to time at the option of the Holdco Bridge Lenders, but no more than
      a number of times to be mutually agreed upon in any calendar quarter,
      indebtedness under the Holdco Extended Term Loans may be exchanged (in
      whole or in part) for exchange notes (the “Holdco Exchange Notes”)
      having an equal principal amount to the indebtedness so exchanged and
      having the terms set forth in Annex III to this Exhibit B; provided
      that the Holdco Borrower may defer each issuance of a series of Holdco
      Exchange Notes until such time as the Holdco Borrower shall have received
      requests to issue an aggregate of at least $40,000,000 in aggregate
      principal amount of Holdco Exchange Notes (or less, if used to exchange
      the entire outstanding amount of the Holdco Extended Term Loans for Holdco
      Exchange Notes). 

	
       
	
       

		
      The Holdco Extended Term Loans will be governed by the
      provisions of the Holdco Bridge Facility Documentation and will have the
      same terms as the Holdco Bridge Facility except as expressly set forth in
      Annex II to this Exhibit B. The Holdco Extended Term Loans will not be
      considered to constitute new indebtedness of the Holdco Borrower but will
      evidence the same indebtedness as was evidenced by the Holdco Bridge
      Loans, which indebtedness will continue with full force and effect in the
      form of Holdco Extended Term Loans. The Holdco Exchange Notes will be
      issued pursuant to an indenture that will have the terms set
forth in Annex III to this Exhibit B. 

B-4 

		
      The Holdco Bridge Facility, the Holdco Extended Term
      Loans and the Holdco Exchange Notes shall rank equal in right of payment
      for all purposes. 

	
         
	
       

	 	 
	
      Mandatory Prepayment: 
	
      The Holdco Borrower will be required to prepay the Holdco
      Bridge Loans on a pro rata basis at 100% of the outstanding
      principal amount thereof plus accrued and unpaid interest with (a) the net
      cash proceeds from the issuance of the Equity Securities, (b) the net cash
      proceeds from the Holdco PIK Notes and any other debt issuances by the
      Holdco Borrower (but not by the Opco Borrower or any of its subsidiaries);
      provided that, in the event any Holdco Bridge Lender or affiliate
      of a Holdco Bridge Lender purchases debt securities from the Holdco
      Borrower pursuant to a permitted securities demand at an issue price that
      is above the level at which such Holdco Bridge Lender or affiliate has
      reasonably determined such debt securities can be resold by such Holdco
      Bridge Lender or affiliate to a bona fide third party at the time of such
      purchase (and notifies the Holdco Borrower thereof), the net cash proceeds
      received by the Holdco Borrower in respect of such debt securities may, at
      the option of such Holdco Bridge Lender or affiliate, be applied first to
      prepay the Holdco Bridge Loans of such Holdco Bridge Lender or affiliate
      (provided that if there is more than one such Holdco Bridge Lender or
      affiliate then such net cash proceeds will be applied pro rata to
      prepay the Holdco Bridge Loans of all such Holdco Bridge Lenders or
      affiliates in proportion to such Holdco Bridge Lenders’ or affiliates’
      principal amount of debt securities purchased from the Holdco Borrower)
      prior to being applied to prepay the Holdco Bridge Loans held by other
      Holdco Bridge Lenders, and (c) the net cash proceeds from any non-ordinary
      course asset sales or dispositions or receipt of insurance proceeds by the
      Holdco Borrower or any of its restricted subsidiaries in excess of amounts
      required to be paid to lenders under the Existing Credit Facilities, the
      Opco Bridge Facility, the Opco Notes and/or any documentation governing
      any indebtedness of any restricted subsidiary of the Holdco Borrower
      (other than the Opco Borrower and its subsidiaries) (except in the case of
      any sale of the capital stock and assets of Opta Minerals Inc. (“Opta
      Minerals”), any other subsidiary of the Holdco Borrower (other than
      the Opco Borrower and its subsidiaries) or any minority interest owned by
      the Holdco Borrower or its restricted subsidiaries (other than the Opco
      Borrower and its subsidiaries), the proceeds of which
      will be applied to the Holdco Bridge Loans before application to the Opco
      Bridge Facility and the Opco Notes), in the case of any such prepayments
      pursuant to the foregoing clause (c) above, with exceptions, baskets and
      reinvestment provisions usual and customary for financings of this type to
      be set forth in the Holdco Bridge Facility Documentation and subject to
      the Documentation Principles, except that there shall be no reinvestment
      rights in respect of net cash proceeds (less the pro rata portion thereof
      attributable to minority interest ownership thereof) of any sale of the
      capital stock or assets of Opta Minerals (with such net cash proceeds also
      calculated after giving effect to required payoff of Opta Minerals’ credit
      facility and any other outstanding indebtedness of Opta Minerals in the
      case of the sale of assets of Opta Minerals) for so long as the Holdco
      Bridge Facility is outstanding. 

B-5 

		
      The Holdco Borrower will also be required to offer to
      prepay the Holdco Bridge Loans following the occurrence of a change of
      control (to be defined in the Holdco Bridge Facility Documentation and
      subject to the Documentation Principles) at 100% of the outstanding
      principal amount thereof, plus accrued and unpaid interest to the date of
      repayment. 

	
       
	
       

		
      These mandatory prepayment provisions will not apply to
      the Holdco Extended Term Loans. 

	
       
	
       

	
      Optional Prepayment: 
	
      The Holdco Bridge Facility may be prepaid, in whole or in
      part, without penalty or premium, at par plus accrued and unpaid interest
      upon not less than three business days’ prior written notice, at the
      option of the Holdco Borrower at any time; provided that, upon the
      occurrence of a Holdco Demand Failure Event, except as otherwise limited
      by the provisions set forth in section of the Fee Letter entitled “Holdco
      Securities Demand”, the outstanding Holdco Bridge Loans will automatically
      and immediately be subject to the call protection provisions applicable to
      the Holdco Exchange Notes. 

	
       
	
       

	
      Right to Resell Bridge Facility: 
	
      Each Holdco Bridge Lender shall have the absolute and
      unconditional right to resell or assign the Holdco Bridge Loans held by it
      in compliance with applicable law to any third party at any time, with the
      consent of the Holdco Borrower (not to be unreasonably withheld,
      conditioned or delayed) and with notice to the Holdco Bridge
      Administrative Agent; provided that the Holdco Borrower’s consent
      shall not be required (i) at any time after the Holdco Bridge Loan
      Maturity Date, (ii) after the occurrence and during the continuance of a
      Holdco Demand Failure Event or payment or bankruptcy event of default or (iii) to the
      extent that the Initial Lenders would continue to hold a majority in
      aggregate principal amount of the Holdco Bridge Loans after giving effect
      to such sale or assignment. The Holdco Bridge Lenders will be permitted to
      sell participations in their Holdco Bridge Loans without restriction in
      accordance with applicable law and consistent with the Documentation
      Principles. 

B-6 

	
      Conditions to Borrowing: 
	
      The availability of the borrowing under the Holdco Bridge
      Facility on the Closing Date shall be subject solely to the applicable
      conditions set forth in Exhibit D of the Commitment Letter. 

	
       
	
       

	
      Bridge Facility Documentation: 
	
      The definitive documentation for the Holdco Bridge
      Facility (the “Holdco Bridge Facility Documentation”) shall be in
      form customary for financings of this nature and consistent with the
      Documentation Principles. 

	
       
	
       

	
      Representations and Warranties: 
	
      The Holdco Bridge Facility Documentation will contain
      customary representations and warranties for financings of this nature and
      consistent with the Documentation Principles. 

	
       
	
       

	
      Covenants: 
	
      The Holdco Bridge Facility Documentation will contain
      such affirmative and negative covenants applicable to the Holdco Borrower
      and the restricted subsidiaries as are usual and customary for financings
      of this nature and consistent with the Documentation Principles; it being
      understood and agreed that the covenants of the Holdco Bridge Loans (and
      the Holdco Extended Term Loans and the Holdco Exchange Notes) will be
      incurrence-based covenants customary for Rule 144A “for life” holdco high
      yield transactions, otherwise consistent with the Documentation Principles
      and reflecting the provisions of Annex I to Exhibit B. Prior to the Holdco
      Bridge Loan Maturity Date, the debt and lien incurrence and restricted
      payment covenants of the Holdco Bridge Loans will be more restrictive than
      those of the Holdco Extended Term Loans and the Holdco Exchange Notes, as
      reasonably agreed by the Lead Arranger and the Borrower. 

	
       
	
       

	
      Unrestricted Subsidiaries: 
	
      Opta Minerals plus other “Unrestricted
      Subsidiaries” (to be defined in a manner consistent with similar holdco
      high yield transactions and otherwise consistent with the Documentation
      Principles) are herein referred to as “Unrestricted Subsidiaries”.
      For the avoidance of doubt, all subsidiaries of the Holdco Borrower that
      are not Unrestricted Subsidiaries are “restricted subsidiaries.”

	
       
	
       

	
      Events of Default: 
	
      The Holdco Bridge Facility Documentation will contain
    customary Events of Default for a financing of this type
      and consistent with the Documentation Principles and otherwise reflecting
      the provisions of Annex I to Exhibit B, limited to: (subject to
      materiality thresholds, baskets, grace periods and other exceptions and
      qualifications to be agreed upon): nonpayment of principal, interest or
      other amounts; violation of covenants; inaccuracy of representations and
      warranties in any material respect; cross payment default; cross
      acceleration to material indebtedness; bankruptcy or insolvency of the
      Holdco Borrower or its material restricted subsidiaries; material monetary
    judgments. 

B-7 

	
      Voting: 
	
      Amendments and waivers of the Holdco Bridge Facility
      Documentation will require the approval of Holdco Bridge Lenders holding
      more than 50% of the aggregate principal amount of the Holdco Bridge
      Facility, except that the consent of each Holdco Bridge Lender directly
      adversely affected thereby shall be required with respect to (a)
      reductions of principal (it being understood that a waiver of any
      condition precedent or the waiver of any default, event of default or
      mandatory prepayment shall not constitute a reduction in principal),
      interest (other than a waiver of default interest) or fees payable to such
      Holdco Bridge Lender, (b) extensions of the final maturity of the Holdco
      Bridge Facility (it being understood that a waiver of any condition
      precedent or the waiver of any default, event of default or mandatory
      prepayment shall not constitute an extension of the final maturity date)
      of such Holdco Bridge Lender or the due date of any interest or fee
      payment and (c) changes in voting percentages. 

	
       
	
       

	
      Replacement of Lenders 
	
      The Holdco Bridge Facility Documentation shall contain
      customary provisions for replacing (a) defaulting lenders, (b) Lenders
      asserting a claim for any funding protection whether for increased costs,
      taxes, required indemnity payments or otherwise and (c) non-consenting
      Lenders in connection with amendments and waivers requiring the consent of
      all Lenders under the Holdco Bridge Facility or of all Lenders directly
      affected thereby so long as the consent of Lenders holding at least 50.1%
      of the aggregate amount of loans and commitments under the Holdco Bridge
      Facility, or of the Lenders affected thereby, has been obtained.

	
       
	
       

	
      Cost and Yield Protection: 
	
      Customary for facilities of this type and consistent with
      the Documentation Principles. 

	
       
	
       

	
      Expenses and Indemnification: 
	
      Customary for facilities of this type and consistent with
      the Documentation Principles. 

	
       
	
       

	
      Governing Law and Forum: 
	
      New York 

B-8 

	
      US Counsel to the Bridge Administrative
      Agent: 
	
      Paul Hastings LLP 

	
       
	
       

	
      Canadian Counsel to the Bridge Administrative
      Agent: 
	
      Goodmans LLP 

B-9 

ANNEX I TO 
EXHIBIT B 

	Guarantees 
	  	  
	Opco Facilities 
	  	  
	• 	The
      Opco Facilities (including the Opco Bridge Loans, Opco Extended Term
      Loans, Opco Exchange Notes and any Takeout Securities issued in lieu of
      the Opco Notes, collectively, the “Opco Facilities”) shall
      benefit from upstream guarantees from domestic restricted subsidiaries of
      the Opco Borrower (to the extent they guarantee the Existing North
      American Credit Facility) and a downstream guarantee from the Holdco
      Borrower. 
	  	  
	Holdco Facilities 
	  	  
	• 	There will be no upstream guarantees of the Holdco
      Facilities (as defined below) from any subsidiaries. 
	General Covenant Structure 
	  	  
	Opco Facilities 
	  	  
	• 	The
      covenants under the Opco Facilities shall regulate the Holdco Borrower and
      its restricted subsidiaries (with the Opco Borrower being such a
      restricted subsidiary). 
	  	  
	Holdco Facilities 
	  	  
	• 	The covenants under the Holdco Facilities
      (including the Holdco Bridge Loans, Holdco Extended Term Loans, Holdco
      Exchange Notes and any Takeout Securities issued in lieu of the Holdco PIK
      Notes, collectively, the “Holdco Facilities” and, together
      with the Opco Facilities, the “Facilities”) shall regulate
      the Holdco Borrower and its restricted subsidiaries (with the Opco
      Borrower being such a restricted subsidiary). 
	  	  
	Financial Reporting 
	  	  
	• 	Financial reporting under each Facility shall be at the Holdco
      Borrower and its subsidiaries on a consolidated basis. 
	  	  
	Restricted Payments Covenant 
	  	  
	• 	Tested
      at the Holdco Borrower under both the Opco Facilities and Holdco
      Facilities. 
	  	  
	Opco Facilities 
	  	  
	• 	
      Customary covenant, but regulating restricted payments by
      the Holdco Borrower and its restricted subsidiaries and consisting of a
      customary 50% Consolidated Net Income “build-up” test and related Fixed
      Charge Coverage Ratio condition, in each case using the Holdco Borrower’s
      financials, with customary exceptions to be negotiated consistent with the
      Documentation Principles, plus the additional exceptions described below.
      

Annex I-B-1 

		
      o 
	
      For so long as any Holdco Facilities are outstanding, the
      Opco Facilities will treat any cash payment of principal or interest on
      the Holdco Facilities as a “Restricted Payment” by the Holdco Borrower,
      with exceptions from this particular limitation to include (i) a basket
      that will be in an amount sufficient to (a) fund any interest payments on
      the Holdco Facilities that are required by the terms thereof to be paid in
      cash and (b) fund certain voluntary cash interest payments on the Holdco
      Facilities, (ii) repayments or redemptions of principal and accrued
      interest under Holdco Facilities made by exchange for, or with the
      proceeds of a substantially concurrent sale of, common equity by the
      Holdco Borrower and (iii) the exception described in the bullet below.
    

	 	  	  
		
      o 
	
      In addition, the Opco Facilities will permit the
      repayment or redemption of principal and accrued interest under Holdco
      Facilities made by exchange for, or with the proceeds of a substantially
      concurrent sale of, indebtedness (or preferred stock) of the Holdco
      Borrower; provided that such indebtedness (or preferred stock) (1)
      is incurred in an aggregate principal amount (or issued having an
      aggregate liquidation preference) equal to or less than the Holdco
      Facilities being refinanced (taking into account any accrual of PIK
      interest to the date of refinancing, and plus any additional indebtedness
      incurred to pay premiums and expenses), (2) is, in the case of
      indebtedness, pari passu with or subordinated to the guarantee of Holdco
      under the Opco Facilities and is unsecured, (3) has a stated maturity (or,
      in the case of the preferred stock, mandatory redemption, if any, or
      mandatory payment of liquidation preference, if any) no earlier than the
      Holdco Facilities being refinanced and at least 91 days later than the
      stated maturity of the Opco Facilities and a weighted average life to
      maturity equal to or greater than the Holdco Facilities being refinanced,
      (4) includes limitations on cash interest (or dividend) payments no more
      favorable to the debtholders (or preferred stockholders) than those of the
      Holdco Facilities being refinanced and (5) bears interest (or accrues
      dividends) at a rate no greater than the interest rate applicable to the
      Holdco Facilities being refinanced. 

	 	  	  
	
      • 
	
      For so long as any Holdco Facilities are outstanding, the
      Opco Facilities shall contain an additional covenant regulating certain
      restricted payments by the Opco Borrower, consisting of a customary 50% of
      Consolidated Net Income “build-up” test and related Fixed Charge Coverage
      Ratio condition, in each case using the Holdco Borrower’s financials, with
      customary exceptions to be negotiated consistent with the Documentation
      Principles, including (i) a basket that will be in an amount sufficient to
      (a) fund any interest payments on the Holdco Facilities that are required
      by the terms thereof to be paid in cash and (b) fund certain voluntary
      cash interest payments on the Holdco Facilities, (ii) an exception for
      excess asset sale proceeds that the Holdco Borrower may be required to
      apply to the Existing Credit Facilities or the Holdco Facilities (it being
      understood that proceeds of sales of assets of the European business shall
      first be required to be offered to repay indebtedness under the Existing
      European Credit Facility, the Existing North American Credit Facility, and
      the Opco Facilities, in accordance with their terms, prior to being
      available to be offered to repay Holdco Facilities), (iii) an exception
      for customary expenses at the Holdco Borrower, (iv) repayments or
      redemptions of principal and accrued interest under Opco Facilities made
      by exchange for, or with the proceeds of a substantially concurrent sale
      of, common equity by the Opco Borrower and (v) repayment or redemption of
      principal and accrued interest under Opco Facilities made by exchange for,
      or with the proceeds of a substantially concurrent sale of, indebtedness
      (or preferred stock) of the Opco Borrower; provided that such
      indebtedness (or preferred stock) (1) is incurred in an aggregate
      principal amount (or issued having an aggregate liquidation preference)
      equal to or less than the Opco Facilities being refinanced, and plus any
      additional indebtedness incurred to pay premiums and expenses), (2) is, in
      the case of indebtedness, pari passu with or subordinated to the Existing
      North American Credit Facility and (3) has a stated maturity (or, in the
      case of the preferred stock, mandatory redemption, if any, or mandatory
      payment of liquidation preference, if any) no earlier than the Opco
      Facilities being refinanced and a weighted average life to maturity equal
      to or greater than the Opco Facilities being refinanced .
  

Annex I-B-2 

	 	o	This additional covenant shall regulate only
      dividends by the Opco Borrower to the Holdco Borrower and repurchases by
      the Opco Borrower of the Holdco Borrower’s stock and shall not regulate
      investments by the Opco Borrower or repurchases of the Opco Borrower’s
      debt by the Opco Borrower. 
	 	  	  
	 •	For the avoidance of doubt, the Opco
      Facilities shall not restrict the payment by Holdco of obligations owing
      by it under the ABL and shall not restrict the upstreaming of funds from
      the Opco Borrower to the Holdco Borrower to be used for such purpose.
  
	 	  	  
	 • 	The Opco Facilities shall permit any
      AHYDO “catch-up” payments to be made, but only if required under
      applicable tax laws. 
	 	  	  
	Holdco Facilities 
	 	  	  
	• 	 	Customary restricted payment covenant, consisting of a
      customary 50% Consolidated Net Income “build-up” test and related Fixed
      Charge Coverage Ratio condition, in each case using the Holdco Borrower’s
      financials, with customary exceptions to be negotiated consistent with the
      Documentation Principles, plus exceptions that match any additional
      exceptions described above, as applicable. 
	 	  	  
	• 	 	The
      Holdco Facilities shall permit any AHYDO “catch-up” payments to be made,
      but only if required under applicable tax laws. 
	 	  	  
	Debt and Preferred Stock Incurrence Covenant
    
	 	  	  
	• 	 	Tested
      at the Holdco Borrower under both the Opco Facilities and Holdco
      Facilities (all ratios are to be calculated using the Holdco Borrower’s
      financials). 
	 	  	  
	Opco Facilities 
	 	  	  
	• 	 	The
      Fixed Charge Coverage Ratio permission will be capped for non-guarantors
      at an amount to be agreed. 
	 	  	  
	• 	 	The credit facilities basket shall permit growth
      based on accounts receivable and inventory, not fixed asset collateral
      borrowing base. 

Annex I-B-3 

	• 	
      There shall be no restriction on the Opco Borrower or the
      Holdco Borrower borrowing under the ABL, but any application of such
      borrowings to the Holdco Borrower’s debt (other than payments of the ABL)
      would be subject to the Restricted Payments covenant described above.
    

	 	 
	• 	
      Other baskets (including a general basket) to be agreed,
      and certain of these baskets (including the general basket) to be agreed
      may also be capped for non-guarantors. 

	
      
	
      

	
      Holdco Facilities 

	 	 
	• 	
      The credit facilities basket shall permit growth based on
      accounts receivable and inventory, not fixed asset collateral borrowing
      base. 

	 	 
	• 	
      There shall be no restriction on the Holdco Borrower
      borrowing under the ABL, but any application of such borrowings to the
      Holdco Borrower’s debt (other than payments of the ABL) would be subject
      to the Restricted Payments covenant described above. 

	 	 
	• 	
      Other baskets (including a general basket) to be agreed.
      

	 
	
      Asset Sale Covenant 

	 	 
	• 	
      Tested at the Holdco Borrower under both the Opco
      Facilities and Holdco Facilities. 

	 	 
	• 	
      Repayment of ABL debt and other debt of the Opco Borrower
      using proceeds from all asset sales shall satisfy the asset sale covenant
      in both the Holdco Facilities and the Opco Facilities. Repayment of debt
      of Opta Minerals using proceeds of sale of assets of Opta Minerals shall
      satisfy the asset sale covenant in both the Holdco Facilities and Opco
      Facilities. 

	 	 
	
      Opco Facilities only 

	
      
	
      

	• 	
      If any Excess Proceeds remain and are required to be
      applied to payment of the Holdco Facilities, the additional restricted
      payment covenant in the Opco Facilities shall permit the Opco Borrower to
      make restricted payments to the Holdco Borrower with “Excess Proceeds”
      from asset sales (it being understood that proceeds of sales of assets of
      the European business shall first be required to be offered to repay
      indebtedness under the Existing European Credit Facility, the Existing
      North American Credit Facility and the Opco Facilities, in accordance with
      their terms, prior to being available to be offered to repay Holdco
      Facilities). 

	 	 
	• 	
      If any Excess Proceeds from any sale of Opta Minerals
      remain after repayment of Opta Minerals’ debt, such proceeds shall be
      applied first to reduce the Holdco Facilities (if permitted by the
      Existing Credit Facilities), and thereafter to reduce the Opco Facilities.
      

	 	 
	
      
	
      

	
      
	
      

	
      Affiliate Transactions Covenant 

	 	 
	
               • 
	
      The Opco Facilities and the Holdco Facilities shall
      permit all dealings and transactions between and among (1) the Opco
      Borrower and its restricted subsidiaries and (2) the Holdco Borrower and
      its restricted subsidiaries, as well as other exceptions for dealings
      between and among such persons and other
affiliates.

Annex I-B-4 

	Lien Covenant 
	 	 
	• 	The
      lien covenant in both Facilities shall regulate the Holdco Borrower and
      the Lien covenant of the Opco Facilities shall regulate the guarantors of
      such Facilities, and all ratio calculations shall be calculated using the
      Holdco Borrower’s financials. 
	 	 
	Dividend Stoppers Covenant 
	 	 
	• 	The
      additional restricted payment covenant described above in the Opco
      Facilities shall be expressly permitted by the Holdco Facilities. 
	 	 
	Merger Covenant 
	 	 
	• 	Each
      Facility shall contain a single covenant at the Holdco Borrower pertaining
      to a merger of the Holdco Borrower or a sale of substantially all its
      assets 
	 	 
	Change of Control 
	 	 
	• 	Each
      Facility shall contain a single covenant at the Holdco Borrower pertaining
      to a change of control of the Holdco Borrower and the Holdco Borrower
      ceasing to own 100% of the capital stock of the Opco Borrower. 
	 	 
	Defaults 
	 	 
	• 	Each
      Facility shall contain defaults pertaining to the Holdco Borrower and its
      restricted subsidiaries (including the Opco Borrower). 
	 	 
	Definitions 
	 	 
	• 	The
      Holdco Consolidated Net Income definition shall not exclude the Opco
      Borrower’s net income due to the additional restricted payments covenant
      at the Opco Borrower described above. 
	 	 
	Other Changes 
	 	 
	• 	Such other changes reasonably requested by the
      Borrowers and agreed by the Lead Arranger (acting reasonably) to reflect
      the need for ongoing operational flexibility, consistent with the
      foregoing and the Documentation Principles. 

Annex I-B-5 

ANNEX II TO
 EXHIBIT B 

HOLDCO EXTENDED TERM LOANS 

	
      Maturity: 
	
      The Holdco Extended Term Loans will mature on the date
      that is seven years and six months after the Closing Date. 

	
	 
	
      Interest Rate: 
	
      The Holdco Extended Term Loans will bear interest at a
      rate per annum equal to the Holdco Total Cap (or, with respect to any
      interest period for which the Holdco Borrower has made a PIK Payment, the
      Holdco PIK Total Cap (as to the portion of the interest subject to such
      PIK Payment only)). 

	
	 
	
	
      Interest shall be payable quarterly and on the maturity
      date of the Holdco Extended Term Loans, in each case payable in arrears
      and computed on the basis of a 365-day year. 

	
	 
	
      Default Rate: 
	
      Upon the occurrence and during the continuance of any
      payment or bankruptcy event of default, overdue principal, interest, fees
      and other amounts shall bear interest at the applicable interest rate plus
      2.0% per annum. 

	
	 
	
      Guarantees: 
	
    None. 

	
	 
	
      Security: 
	
    None. 

	
	 
	
      Covenants, Defaults and Mandatory Offers to
      Purchase: 
	
      Upon and after the Holdco Bridge Loan Maturity Date, the
      covenants, mandatory prepayments (other than with respect to a change of
      control, with respect to which the provisions of the Holdco Bridge Loans
      will apply) and defaults which would be applicable to the Holdco Exchange
      Notes, if issued, will also be applicable to the Holdco Extended Term
      Loans in lieu of the corresponding provisions of the Holdco 
Bridge
      Loan Documentation. 

	
	 
	
      Optional Prepayment: 
	
      The Holdco Extended Term Loans may be prepaid, in whole
      or in part, at par, plus accrued and unpaid interest upon not less than
      three days’ prior written notice, at the option of the Holdco Borrower at
      any time; provided that upon the occurrence of a Holdco Demand Failure
      Event, the outstanding Holdco Extended Term Loans will automatically and
      immediately be subject to the call protection provisions applicable to the
      Holdco Exchange Notes. 

	
	 
	
      Governing Law and Forum: 
	
  New York. 

Annex II-B-1 

ANNEX III TO 
EXHIBIT B 

HOLDCO EXCHANGE NOTES 

	Issuer: 	The Borrower will issue the Holdco Exchange
      Notes under an indenture. The Holdco Borrower or an affiliate, in its
      capacity as the issuer of the Holdco Exchange Notes, is referred to as the
      “Holdco Issuer”. 
	  	  
	Principal Amount: 	The Holdco Exchange Notes will be issued on or
      after the Holdco Extension Date. The principal amount of any Holdco
      Exchange Note will equal 100% of the aggregate principal amount of the
      Holdco Extended Term Loan for which it is exchanged. In the case of a
      partial exchange, the minimum amount of Holdco Extended Term Loans to be
      exchanged for Holdco Exchange Notes will be $40,000,000 (or less if used
      to exchange the entire outstanding amount of the Holdco Extended Term
      Loans). 
	  	  
	Maturity: 	The Holdco Exchange Notes will mature on the
      date that is seven years and six months after the Closing Date. 
	  	  
	Interest Rate: 	The Holdco Exchange Notes will bear interest
      payable semi-annually at a weighted average yield which shall not exceed
      the Holdco Total Cap (or, with respect to any interest period for which
      the Holdco Borrower has made a PIK Payment, the Holdco PIK Total Cap (as
      to the portion of the interest subject to such PIK Payment only)). 
	  	  
	Guarantees: 	None. 
	  	  
	Security: 	None. 
	  	  
	Offer of Purchase upon Change of Control: 	The Holdco Issuer will be required to make an
      offer to repurchase the Holdco Exchange Notes following the occurrence of
      a change of control (to be defined in a manner consistent with high- yield
      debt offerings giving effect to the Documentation Principles) at a price
      in cash equal to 101% (or 100% in the case of Holdco Exchange Notes held
      by the Commitment Parties or their respective affiliates excluding Holdco
      Exchange Notes held by them in connection with market making activities or
      asset management affiliates purchasing the Holdco Exchange Notes in the
      ordinary course of their business as part of a regular distribution of the
      Holdco Exchange Notes (“Asset Management Affiliates”)) of
      the outstanding principal amount thereof, plus accrued and unpaid interest
      to the date of repurchase, unless the Holdco Issuer shall redeem such
      Holdco Exchange Notes pursuant to the “Optional Redemption” section below.
    

Annex III-B-1 

 

	
      Offer to Purchase from Asset Sale Proceeds:
      
	
      The Holdco Issuer will be required to make an offer to
      repurchase the Holdco Exchange Notes (and, if outstanding, prepay the
      Holdco Extended Term Loans) on a pro rata basis, which offer shall
      be at 100% of the principal amount thereof plus accrued and unpaid
      interest to the date of repurchase with a portion of the net cash proceeds
      from any non-ordinary course asset sales or dispositions or receipt of
      insurance proceeds by the Holdco Borrower or its restricted subsidiaries
      in excess of amounts required to be paid to lenders under the Existing
      Credit Facilities, the Opco Bridge Facility, the Opco Notes and/or any
      documentation governing any indebtedness of any restricted subsidiary of
      the Holdco Borrower (other than the Opco Borrower and its subsidiaries)
      (except in the case of a sale of assets or capital stock of Opta Minerals,
      any other subsidiary of the Holdco Borrower (other than the Opco Borrower
      and its subsidiaries) or any minority interest owned by the Holdco
      Borrower or its restricted subsidiaries (other than the Opco Borrower and
      its subsidiaries), the proceeds of which will be offered to be applied to
      the repurchase of Holdco Exchange Notes before application to the Opco
      Bridge Facility and the Opco Notes), with such proceeds being applied to
      the Holdco Extended Term Loans and the Holdco Exchange Notes in a manner
      to be agreed, subject to exceptions, baskets and reinvestment provisions
      usual and customary for financings of this type, except that there shall
      be no reinvestment rights in respect of net cash proceeds (less the pro
      rata portion thereof attributable to minority interest ownership thereof)
      of any sale of the capital stock or assets of Opta Minerals (with such net
      cash proceeds also calculated after giving effect to required payoff of
      Opta Minerals’ credit facility and any other outstanding indebtedness of
      Opta Minerals in the case of sales of assets of Opta Minerals) for so long
      as the Holdco Bridge Facility is outstanding. 

	  	  
	
      Optional Redemption: 
	
      Except as set forth in the next two succeeding
      paragraphs, the Holdco Exchange Notes shall be no-call in the first year
      following the Holdco Bridge Loan Maturity Date, and thereafter shall be
      redeemable during the second and third years following such date at a
      redemption prices equal to par plus 2.00% and 1.00%, respectively.
  

	  	  
		
      Prior to the one year anniversary of the Holdco Bridge
      Loan Maturity Date, the Holdco Issuer may redeem Holdco
Exchange Notes at a redemption price equal to
      par plus a customary make-whole premium (calculated as of any redemption
      date using the weekly average yield on traded U.S. treasury securities
  adjusted to a constant maturity of one year plus 50 basis points). 

Annex III-B-2 

		Prior to the one year anniversary of the Holdco
      Bridge Loan Maturity Date, the Holdco Borrower may redeem up to 100% of
      the aggregate principal amount of the Holdco Exchange Notes with proceeds
      from qualified equity offerings of the Holdco Borrower at a redemption
      price equal to par plus 2.00%. 
	  	  
		Notwithstanding any of the foregoing, any
      Holdco Exchange Notes held by (and for so long as they are held by) the
      Commitment Parties or their respective affiliates (other than Asset
      Management Affiliates or Holdco Exchange Notes purchased in the secondary
      market) shall be redeemable at any time and from time to time at the
      option of the Holdco Borrower at a redemption price equal to par plus
      accrued and unpaid interest to the redemption date. 
	  	  
	Defeasance Provisions: 	Customary for high yield transactions and
      consistent with the Documentation Principles. 
	  	  
	Amendment/Waiver: 	Customary for high yield transactions and
      consistent with the Documentation Principles. 
	  	  
	Covenants: 	Customary for high yield transactions and
      consistent with the Documentation Principles and otherwise reflecting the
      provisions of Annex I to Exhibit B. 
	  	  
	Registration Rights: 	None. 
	  	  
	Right to Transfer Holdco Exchange
      Notes: 	The holders of the Holdco Exchange Notes
      (including the Holdco Bridge Lenders) shall have the right to transfer
      such Holdco Exchange Notes to any third parties, subject to compliance
      with applicable securities and other law. 
	  	  
	Events of Default: 	Customary for high yield transactions and
      consistent with the Documentation Principles and otherwise reflecting the
      provisions of Annex I to Exhibit B. 
	  	  
	Governing Law and Forum: 	New York. 

Annex III-B-3 

EXHIBIT C 

PROJECT SHINE 
OPCO SECOND LIEN INCREASING RATE
BRIDGE FACILITY 
SUMMARY OF PRINCIPAL TERMS AND CONDITIONS2

	Borrower: 	SunOpta Foods Inc 
	
       
	
       

	
      Transaction: 
	
      As set forth in Exhibit A to the Commitment Letter.
    

	
       
	
       

	
      Bridge Administrative Agent and Collateral
      Agent: 
	
      BMO will act as sole and exclusive administrative agent
      and collateral agent for the Opco Bridge Facility (in such capacity, the
      “Opco Bridge Administrative Agent”) for a syndicate of banks,
      financial institutions and other institutional lenders and investors
      determined in consultation with and reasonably acceptable to the Opco
      Borrower (together with the Initial Lenders, the “Opco Bridge
      Lenders”), and will perform the duties customarily associated with
      such role. 

	
       
	
       

	
      Bridge Lead Arranger and Bridge Bookrunner:
      
	
      BMOCM will act as the lead arranger for the Opco Bridge
      Facility and lead bookrunner for the Opco Bridge Facility, and will
      perform the duties customarily associated with such roles. 

	
       
	
       

	
      Bridge Loans: 
	
      The Opco Bridge Lenders will make increasing rate second
      lien secured bridge loans (the “Opco Bridge Loans”) to the Opco
      Borrower, available in a single borrowing on the Closing Date in an
      aggregate principal amount of in an aggregate principal amount as
      described in paragraph (d) of Exhibit A (the “Opco Bridge
      Facility”). 

	
       
	
       

	
      Currency 
	
      US dollars only. 

	
       
	
       

	
      Purpose: 
	
      The proceeds of the Opco Bridge Facility will be used by
      the Opco Borrower on the Closing Date, together with the proceeds of the
      borrowings under the Existing North American Credit Facility, proceeds
      from the issuance of the Opco Notes (if any) (or any Takeout Securities
      issued in lieu of the Opco Notes), proceeds of the Holdco Bridge Facility,
      proceeds from the issuance of Equity Securities (if any), proceeds from
      the issuance of the Holdco PIK Notes (or any Takeout Securities issued in
      lieu of the Holdco PIK Notes) and available cash on hand, if any, at the
      Opco Borrower and the Holdco Borrower and the Target and their respective
      subsidiaries, solely to pay Acquisition Costs. 

__________________________

  2 All capitalized terms used but not defined herein
shall have the meanings given to them in the Commitment Letter to which this
Term Sheet is attached, including the Exhibits thereto. In the event any such
capitalized term is subject to multiple or differing definitions, the
appropriate meaning thereof in this Exhibit C shall be determined by reference
to the context in which it is used. 

	
      Ranking: 
	
      The Opco Bridge Facility will rank equal in right of
      payment with all existing and future senior indebtedness (including the
      Existing North American Credit Facility) of the Opco Borrower and
      Guarantors and senior to all existing and future subordinated indebtedness
      of the Opco Borrower and Guarantors that expressly provides for its
      subordination to the Opco Bridge Facility (including, in the case of the
      Holdco Borrower, the Holdco Bridge Facility). The Opco Bridge Facility
      shall have a claim on Collateral that is junior only to the claim on such
      Collateral of the Existing North American Credit Facility. Any
      indebtedness of Unrestricted Subsidiaries (as defined below) shall be
      non-recourse to the Opco Borrower and Guarantors. 

	
       
	
     

	
      Guarantees: 

	
      All of the obligations of the Opco Borrower under the
      Opco Bridge Facility will be unconditionally guaranteed jointly and
      severally on an equal priority senior second lien secured basis by the
      Holdco Borrower and those subsidiaries of the Opco Borrower that are
      guarantors under the Existing North American Credit Facility (the
      “Subsidiary Guarantors” and, together with the Holdco Borrower, the
      “Guarantors”). For clarity, the Target and its subsidiaries shall,
      after giving effect to the Acquisition, immediately become Guarantors to
      extent required by the term of the Existing North American Credit
      Facility. 

	
       
	
     

	
      Security: 
	
      (1) All obligations of the Opco Borrower under the Opco
      Bridge Facility and (2) any Guarantees thereof will be secured by a
      perfected second priority security interest in the same assets of the Opco
      Borrower, the Holdco Borrower and the Subsidiary Guarantors that secure
      the obligations under the Existing North American Credit Facility (the
      “Collateral”). 

	
       
	
     

		
      The liens on the Collateral securing the Existing North
      American Credit Facility will be senior in priority to the liens on such
      Collateral securing the Opco Bridge Facility and any permitted
      refinancings thereof. The priority of the security interests and related
      creditor rights between the Existing North American Credit Facility, the
      Holdco Bridge Facility and the Opco Bridge Facility will be set forth in a
      customary intercreditor agreement (the “Intercreditor
      Agreement”) on terms and conditions to be mutually agreed.
  

	 	 
	
      Interest Rates: 
	
      The Opco Bridge Loans will initially bear interest at a
      rate per annum equal to the sum of the greater of the (i) London interbank
      offered rate (“LIBOR”) for US dollars (for interest periods of 1, 2, 3 or 6 months as selected by theOpco Borrower) and (ii) 1.00% plus the Spread. The
      “Spread” will initially equal 6.00%. If the Opco BridgeLoans are not repaid in full within three months followingthe Closing Date, the Spread will increase by 50 basis pointsat the end of such three month period and will increase by an additional 50 basis points at the end of each three month period thereafter

C-2 

		
      Notwithstanding anything to the contrary set forth above,
      at no time, other than as provided under the heading “Default Rate” below,
      shall the per annum yield on Opco Bridge Loans be greater than the Opco
      Total Cap (as defined in the Fee Letter). 

	
       
	
   

		
      Upon the occurrence of an Opco Demand Failure Event (as
      defined in the Fee Letter), the outstanding Opco Bridge Loans will
      automatically and immediately accrue interest at the Opco Total Cap.
    

	
       
	
   

		
      Following the Opco Bridge Loan Maturity Date, all
      outstanding Opco Extended Term Loans will accrue interest at the Opco
      Total Cap. 

	
       
	
   

	
       
	
   

	
      Interest Payments: 
	
      Interest on the Opco Bridge Loans will be payable in
      arrears at the end of each interest period and, for interest periods of
      greater than 3 months, every three months, and on the Initial Opco Bridge
      Loan Maturity Date. Calculation of interest shall be on the basis of
      actual days elapsed in a year of 360 days. 

	
       
	
   

	
      Default Rate: 
	
      Upon the occurrence and during the continuance of any
      payment or bankruptcy event of default, overdue principal, interest, fees
      and other amounts shall bear interest at the applicable interest rate plus
      2.0% per annum. 

	
       
	
   

	
      Maturity: 
	
      All Opco Bridge Loans will have an initial maturity date
      that is the one year anniversary of the Closing Date (the “Opco Bridge
      Loan Maturity Date”), which shall automatically be extended as
      provided below. If any of the Opco Bridge Loans have not been previously
      repaid in full on or prior to the Opco Bridge Loan Maturity Date, so long
      as no bankruptcy event of default has occurred and is continuing as of
      such date, such Opco Bridge Loans shall automatically be extended into and
      become senior secured second lien term loans (each, an “Opco Extended
      Term Loan”) due on the date that is seven years after the
      Closing Date and having the terms set forth in Annex II to this Exhibit C.
      The date on which Opco Bridge Loans become Opco Extended Term Loans is
      referred to as the “Opco Extension Date”.

C-3 

		
      At any time on or after the Opco Extension Date, from
      time to time at the option of the Opco Bridge Lenders, but no more than a
      number of times to be mutually agreed upon in any calendar quarter,
      indebtedness under the Opco Extended Term Loans may be exchanged (in whole
      or in part) for exchange notes (the “Opco Exchange Notes”) having
      an equal principal amount to the indebtedness so exchanged and having the
      terms set forth in Annex III to this Exhibit C; provided that the
      Opco Borrower may defer each issuance of a series of Opco Exchange Notes
      until such time as the Opco Borrower shall have received requests to issue
      an aggregate of at least $50,000,000 in aggregate principal amount of Opco
      Exchange Notes (or less if used to exchange the entire outstanding
  amount of the Opco Extended Term Loans).  

	 	 
		
      The Opco Extended Term Loans will be governed by the
      provisions of the Opco Bridge Facility Documentation and will have the
      same terms as the Opco Bridge Facility except as expressly set forth in
      Annex II to this Exhibit C. The Opco Extended Term Loans will not be
      considered to constitute new indebtedness of the Opco Borrower but will
      evidence the same indebtedness as was evidenced by the Opco Bridge Loans,
      which indebtedness will continue with full force and effect in the form of
      Opco Extended Term Loans. The Opco Exchange Notes will be issued pursuant
      to an indenture that will have the terms set forth in Annex III to this
      Exhibit C. 

	 	 
		
      The Opco Bridge Facility, the Opco Extended Term Loans
      and the Opco Exchange Notes shall rank equal in right of payment for all
      purposes. 

	 	 
	
      Mandatory Prepayment: 
	
      The Opco Borrower will be required to prepay the Opco
      Bridge Loans on a pro rata basis at 100% of the outstanding
      principal amount thereof plus accrued and unpaid interest with (a) the net
      cash proceeds from the issuance of the Opco Notes; provided that,
      in the event any Opco Bridge Lender or affiliate of a Opco Bridge Lender
      purchases debt securities from the Opco Borrower pursuant to a permitted
      securities demand at an issue price that is above the level at which such
      Opco Bridge Lender or affiliate has reasonably determined such debt
      securities can be resold by such Opco Bridge Lender or affiliate to a bona
      fide third party at the time of such purchase (and notifies the Opco
      Borrower thereof), the net cash proceeds received by the Opco Borrower in
      respect of such debt securities may, at the option of such Opco Bridge
      Lender or affiliate, be applied first to prepay the Opco Bridge Loans of
      such Opco Bridge Lender or affiliate (provided that if there is
      more than one such Opco Bridge Lender or affiliate then such
      net cash proceeds will be applied pro rata to prepay the Opco
      Bridge Loans of all such Opco Bridge Lenders or affiliates in proportion
      to such Opco Bridge Lenders’ or affiliates’ principal amount of debt
      securities purchased from the Opco Borrower) prior to being applied to
      prepay the Opco Bridge Loans held by other Opco Bridge Lenders, (b) the
      net cash proceeds of certain debt issuances (to be defined in a mutually
      acceptable manner) by the Opco Borrower or any of its restricted
      subsidiaries, (c) the net cash proceeds of from certain equity offerings
      (subject to exceptions to be agreed, including, without limitation, equity
      issued to employee stock plans or similar plans) by the Holdco Borrower or
      any of its restricted subsidiaries occurring after the date that the
      Holdco PIK Notes (if any) and the Holdco Bridge Loans (if any) are repaid
      in full and (d) the net cash proceeds from any non-ordinary course asset
      sales or dispositions or receipt of insurance proceeds by the Opco
      Borrower or any of its restricted subsidiaries in excess of amounts either
      reinvested or required to be paid to the lenders under the Existing Credit
      Facilities (and, in the case of sales of assets or capital stock of Opta
      Minerals, any other subsidiary of the Holdco Borrower (other than the Opco
      Borrower and its subsidiaries) or any minority interest owned by the
      Holdco Borrower or its restricted subsidiaries (other than the Opco
      Borrower and its subsidiaries), the Holdco Facilities) or the holders of
      certain other indebtedness, in the case of any such prepayments pursuant
      to the foregoing clauses (b), (c) and (d) above with exceptions, baskets
      and reinvestment provisions usual and customary for financings of this
      type to be set forth in the Opco Bridge Facility Documentation and subject
      to the Documentation Principles, except that in the case of clause (d),
      there shall be no reinvestment rights in respect of net cash proceeds
      (less the pro rata portion thereof attributable to minority interest
      ownership thereof) of any sale of the capital stock or assets of Opta
      Minerals (with such net cash proceeds also calculated after giving effect
      to required payoff of Opta Minerals’ credit facility and any other
      outstanding indebtedness of Opta Minerals in the case of sales of assets
      of Opta Minerals) for so long as the Holdco Bridge Facility is
  outstanding. 

 C-4 

	 	The Opco Borrower will also be required to
      offer to prepay the Opco Bridge Loans following the occurrence of a change
      of control (to be defined in the Opco Bridge Facility Documentation and
      subject to the Documentation Principles) at 100% of the outstanding
      principal amount thereof, plus accrued and unpaid interest to the date of
    repayment. 

C-5 

	
      Optional Prepayment: 
	
      The Opco Bridge Facility may be prepaid, in whole or in
      part, without penalty or premium, at par plus accrued and unpaid interest
      upon not less than three business days’ prior written notice, at the
      option of the Opco Borrower at any time; provided that, upon the
      occurrence of an Opco Demand Failure Event, except as otherwise limited by
      the provisions set forth in the section of the Fee Letter entitled
      “Securities Demand”, the outstanding Opco Bridge Loans will automatically
      and immediately be subject to the call protection provisions applicable to
      the Opco Exchange Notes. 

	 	 
	
      Right to Resell Bridge Facility: 
	
      Each Opco Bridge Lender shall have the absolute and
      unconditional right to resell or assign the Opco Bridge Loans held by it
      in compliance with applicable law to any third party at any time, with the
      consent of the Opco Borrower (not to be unreasonably withheld, conditioned
      or delayed) and with notice to the Opco Bridge Administrative Agent;
      provided that the Opco Borrower’s consent shall not be required (i)
      at any time after the Opco Bridge Loan Maturity Date, (ii) after the
      occurrence and during the continuance of an Opco Demand Failure Event or
      payment or bankruptcy event of default or (iii) to the extent that the
      Initial Lenders would continue to hold a majority in aggregate principal
      amount of the Opco Bridge Loans after giving effect to such sale or
      assignment. 

		 
		
      The Opco Bridge Lenders will be permitted to sell
      participations in their Opco Bridge Loans without restriction in
      accordance with applicable law and consistent with the Documentation
      Principles. 

	 	 
	
      Conditions to Borrowing: 
	
      The availability of the borrowing under the Opco Bridge
      Facility on the Closing Date shall be subject solely to the applicable
      conditions set forth in Exhibit D to the Commitment Letter. 

	
       
	
       

	
      Bridge Facility Documentation: 
	
      The definitive documentation for the Opco Bridge Facility
      (the “Opco Bridge Facility Documentation”) shall be in form
      customary for financings of this nature and consistent with the
      Documentation Principles. 

	
       
	
       

	
      Representations and Warranties: 
	
      The Opco Bridge Facility Documentation will contain
      customary representations and warranties for financings of this nature
      applying to the Opco Borrower and its restricted subsidiaries. 

	
       
	
       

	
      Covenants: 
	
      The Opco Bridge Facility Documentation will contain such
      affirmative and negative covenants applicable to the Holdco Borrower, the
      Opco Borrower and its restricted subsidiaries as are usual and customary for financings of this nature,
      consistent with the Documentation Principles, it being understood and
      agreed that the covenants of the Opco Bridge Loans (and the Opco Extended
      Term Loans and the Opco Exchange Notes) will be incurrence-based
      covenants, customary for other Rule 144A “for life” high yield
      transactions, otherwise consistent with the Documentation Principles and
      reflecting the provisions of Annex I to Exhibit C. Prior to the Opco
      Bridge Loan Maturity Date, the debt and lien incurrence and the restricted
      payment covenants of the Opco Bridge Loans will be more restrictive than
      those of the Opco Extended Term Loans and the Opco Exchange Notes, as
      reasonably agreed by the Lead Arranger and the Opco Borrower. 

C-6 

	
      Unrestricted Subsidiaries: 
	
      Opta Minerals plus other “Unrestricted
      Subsidiaries” (to be defined in a manner consistent with similar high
      yield debt offerings and otherwise consistent with the Documentation
      Principles) are herein referred to as “Unrestricted
      Subsidiaries”. For the avoidance of doubt, all subsidiaries of the
      Holdco Borrower that are not Unrestricted Subsidiaries are “restricted
      subsidiaries.” 

	
       
	
       

	
      Events of Default: 
	
      The Opco Bridge Facility Documentation will contain
      customary Events of Default for a financing of this type and consistent
      with the Documentation Principles and otherwise reflecting the provisions
      of Annex I to Exhibit C, limited to: (subject to materiality thresholds,
      baskets, grace periods and other exceptions and qualifications to be
      agreed upon): nonpayment of principal, interest or other amounts;
      violation of covenants; inaccuracy of representations and warranties in
      any material respect; cross payment default; cross acceleration to
      material indebtedness; bankruptcy or insolvency of the Opco Borrower or
      its material restricted subsidiaries; material monetary judgments; ERISA
      and Canadian pension events and actual or asserted invalidity of a
      Guarantor’s guaranty. 

	
       
	
       

	
      Voting: 
	
      Amendments and waivers of the Opco Bridge Facility
      Documentation will require the approval of Opco Bridge Lenders holding
      more than 50% of the aggregate principal amount of the Opco Bridge
      Facility, except that the consent of each Opco Bridge Lender directly
      adversely affected thereby shall be required with respect to (a)
      reductions of principal (it being understood that a waiver of any
      condition precedent or the waiver of any default, event of default or
      mandatory prepayment shall not constitute a reduction in principal),
      interest (other than a waiver of default interest) or fees payable to such
      Opco Bridge Lender, (b) extensions of the final maturity of the Opco
      Bridge Facility (it being understood that a waiver of any condition precedent or
      the waiver of any default, event of default or mandatory prepayment shall
      not constitute an extension of the final maturity date) of such Opco
      Bridge Lender or the due date of any interest or fee payment, (c) releases
      of all or substantially all Guarantors or Collateral and (d) changes in
      voting thresholds. 

C-7 

	
    Replacement of Lenders 
	
      The Opco Bridge Facility Documentation shall contain
      customary provisions for replacing (a) defaulting lenders, (b) Lenders
      asserting a claim for any funding protection whether for increased costs,
      taxes, required indemnity payments or otherwise and (c) non-consenting
      Lenders in connection with amendments and waivers requiring the consent of
      all Lenders under the Opco Bridge Facility or of all Lenders directly
      affected thereby so long as the consent of Lenders holding at least 50.1%
      of the aggregate amount of loans and commitments under the Opco Bridge
  Facility, or of the Lenders affected thereby, has been obtained.

	
     
	
       

	
    Cost and Yield Protection: 
	
      Customary for facilities of this type and consistent with
      the Documentation Principles. 

	
     
	
       

	
    Expenses and Indemnification: 
	
      Customary for facilities of this type and consistent with
      the Documentation Principles. 

	
     
	
       

	
    Governing Law and Forum: 
	
      New York 

	
     
	
       

	
      US Counsel to the Bridge Administrative
    Agent: 
	
      Paul Hastings LLP 

	
     
	
       

	
      Canadian Counsel to the Bridge Administrative
    Agent: 
	
      Goodmans LLP 

C-8 

ANNEX I TO 
EXHIBIT C 

	Guarantees 
	  	  
	Opco Facilities 
	  	  
	• 	The
      Opco Facilities (including the Opco Bridge Loans, Opco Extended Term
      Loans, Opco Exchange Notes and any Takeout Securities issued in lieu of
      the Opco Notes, collectively, the “Opco Facilities”) shall
      benefit from upstream guarantees from domestic restricted subsidiaries of
      the Opco Borrower (to the extent they guarantee the Existing North
      American Credit Facility) and a downstream guarantee from the Holdco
      Borrower. 
	  	  
	Holdco Facilities 
	  	  
	• 	There will be no upstream guarantees of the Holdco
      Facilities (as defined below) from any subsidiaries. 
	General Covenant Structure 
	  	  
	Opco Facilities 
	  	  
	• 	The
      covenants under the Opco Facilities shall regulate the Holdco Borrower and
      its restricted subsidiaries (with the Opco Borrower being such a
      restricted subsidiary). 
	  	  
	Holdco Facilities 
	  	  
	• 	The
      covenants under the Holdco Facilities (including the Holdco Bridge Loans,
      Holdco Extended Term Loans, Holdco Exchange Notes and any Takeout
      Securities issued in lieu of the Holdco PIK Notes, collectively, the
      “Holdco Facilities” and, together with the Opco Facilities,
      the “Facilities”) shall regulate the Holdco Borrower and its
      restricted subsidiaries (with the Opco Borrower being such a restricted
      subsidiary). 
	 
    	  
	Financial Reporting 
	  	  
	• 	Financial reporting under each Facility shall be at the Holdco
      Borrower and its subsidiaries on a consolidated basis. 
	 
    	  
	Restricted Payments Covenant 
	  	  
	• 	Tested
      at the Holdco Borrower under both the Opco Facilities and Holdco
      Facilities. 
	 
    	  
	Opco Facilities 
	  	  
	• 	Customary covenant, but regulating restricted
      payments by the Holdco Borrower and its restricted subsidiaries and
      consisting of a customary 50% Consolidated Net Income “build-up” test and
      related Fixed Charge Coverage Ratio condition, in each case using the
      Holdco Borrower’s financials, with customary exceptions to be negotiated
      consistent with the Documentation Principles, plus the additional
      exceptions described below. 

Annex I-C-1 

		
    o 
	
      For so long as any Holdco Facilities are outstanding, the
      Opco Facilities will treat any cash payment of principal or interest on
      the Holdco Facilities as a “Restricted Payment” by the Holdco Borrower,
      with exceptions from this particular limitation to include (i) a basket
      that will be in an amount sufficient to (a) fund any interest payments on
      the Holdco Facilities that are required by the terms thereof to be paid in
      cash and (b) fund certain voluntary cash interest payments on the Holdco
      Facilities, (ii) repayments or redemptions of principal and accrued
      interest under Holdco Facilities made by exchange for, or with the
      proceeds of a substantially concurrent sale of, common equity by the
      Holdco Borrower and (iii) the exception described in the bullet below.
  

	 
    	
    
	
  

		
    o 
	
      In addition, the Opco Facilities will permit the
      repayment or redemption of principal and accrued interest under Holdco
      Facilities made by exchange for, or with the proceeds of a substantially
      concurrent sale of, indebtedness (or preferred stock) of the Holdco
      Borrower; provided that such indebtedness (or preferred stock) (1)
      is incurred in an aggregate principal amount (or issued having an
      aggregate liquidation preference) equal to or less than the Holdco
      Facilities being refinanced (taking into account any accrual of PIK
      interest to the date of refinancing, and plus any additional indebtedness
      incurred to pay premiums and expenses), (2) is, in the case of
      indebtedness, pari passu with or subordinated to the guarantee of Holdco
      under the Opco Facilities and is unsecured, (3) has a stated maturity (or,
      in the case of the preferred stock, mandatory redemption, if any, or
      mandatory payment of liquidation preference, if any) no earlier than the
      Holdco Facilities being refinanced and at least 91 days later than the
      stated maturity of the Opco Facilities and a weighted average life to
      maturity equal to or greater than the Holdco Facilities being refinanced,
      (4) includes limitations on cash interest (or dividend) payments no more
      favorable to the debtholders (or preferred stockholders) than those of the
      Holdco Facilities being refinanced and (5) bears interest (or accrues
      dividends) at a rate no greater than the interest rate applicable to the
  Holdco Facilities being refinanced. 

	 
    	
    
	
  

	• 	
      For so long as any Holdco Facilities are outstanding, the
      Opco Facilities shall contain an additional covenant regulating certain
      restricted payments by the Opco Borrower, consisting of a customary 50% of
      Consolidated Net Income “build-up” test and related Fixed Charge Coverage
      Ratio condition, in each case using the Holdco Borrower’s financials, with
      customary exceptions to be negotiated consistent with the Documentation
      Principles, including (i) a basket that will be in an amount sufficient to
      (a) fund any interest payments on the Holdco Facilities that are required
      by the terms thereof to be paid in cash and (b) fund certain voluntary
      cash interest payments on the Holdco Facilities, (ii) an exception for
      excess asset sale proceeds that the Holdco Borrower may be required to
      apply to the Existing Credit Facilities or the Holdco Facilities (it being
      understood that proceeds of sales of assets of the European business shall
      first be required to be offered to repay indebtedness under the Existing
      European Credit Facility, the Existing North American Credit Facility, and
      the Opco Facilities, in accordance with their terms, prior to being
      available to be offered to repay Holdco Facilities), (iii) an exception
      for customary expenses at the Holdco Borrower, (iv) repayments or
      redemptions of principal and accrued interest under Opco Facilities made
      by exchange for, or with the proceeds of a substantially concurrent sale
      of, common equity by the Opco Borrower and (v) repayment or redemption of
      principal and accrued interest under Opco Facilities made by exchange for,
      or with the proceeds of a substantially concurrent sale of, indebtedness
      (or preferred stock) of the Opco Borrower; provided that such
      indebtedness (or preferred stock) (1) is incurred in an aggregate
      principal amount (or issued having an aggregate liquidation preference)
      equal to or less than the Opco Facilities being refinanced, and plus any
      additional indebtedness incurred to pay premiums and expenses), (2) is, in
      the case of indebtedness, pari passu with or subordinated to the Existing
      North American Credit Facility and (3) has a stated maturity (or, in the
      case of the preferred stock, mandatory redemption, if any, or mandatory
      payment of liquidation preference, if any) no earlier than the Opco
      Facilities being refinanced and a weighted average life to maturity equal
      to or greater than the Opco Facilities being refinanced .
  

Annex I-C-2 

		
      o 
	
      This additional covenant shall regulate only dividends by
      the Opco Borrower to the Holdco Borrower and repurchases by the Opco
      Borrower of the Holdco Borrower’s stock and shall not regulate investments
      by the Opco Borrower or repurchases of the Opco Borrower’s debt by the
      Opco Borrower. 

		
       
	
       

	•
		
      For the avoidance of doubt, the Opco Facilities shall not
      restrict the payment by Holdco of obligations owing by it under the ABL
      and shall not restrict the upstreaming of funds from the Opco Borrower to
      the Holdco Borrower to be used for such purpose. 

		
       
	
       

	•
		
      The Opco Facilities shall permit any AHYDO “catch-up”
      payments to be made, but only if required under applicable tax laws.
    

		
     
	
   

	
      Holdco Facilities 

	
       
	
       
	
       

	•
		
      Customary restricted payment covenant, consisting of a
      customary 50% Consolidated Net Income “build-up” test and related Fixed
      Charge Coverage Ratio condition, in each case using the Holdco Borrower’s
      financials, with customary exceptions to be negotiated consistent with the
      Documentation Principles, plus exceptions that match any additional
      exceptions described above, as applicable. 

		
       
	
       

	•
		
      The Holdco Facilities shall permit any AHYDO “catch-up”
      payments to be made, but only if required under applicable tax laws.
    

		
     
	
   

	
      Debt and Preferred Stock Incurrence Covenant
    

	
       
	
       
	
       

	•
		
      Tested at the Holdco Borrower under both the Opco
      Facilities and Holdco Facilities (all ratios are to be calculated using
      the Holdco Borrower’s financials). 

	
       
	
       
	
       

	
      Opco Facilities 

	
       
	
       
	
       

	•
		
      The Fixed Charge Coverage Ratio permission will be capped
      for non-guarantors at an amount to be agreed. 

		
       
	
       

	• 		
      The credit facilities basket shall permit growth based on
      accounts receivable and inventory, not fixed asset collateral borrowing
      base. 

Annex I-C-3 

	• 	
      There shall be no restriction on the Opco Borrower or the
      Holdco Borrower borrowing under the ABL, but any application of such
      borrowings to the Holdco Borrower’s debt (other than payments of the ABL)
      would be subject to the Restricted Payments covenant described above.
    

	  	  
	• 	
      Other baskets (including a general basket) to be agreed,
      and certain of these baskets (including the general basket) to be agreed
      may also be capped for non-guarantors. 

	  	  
	
      Holdco Facilities 

	  	  
	• 	
      The credit facilities basket shall permit growth based on
      accounts receivable and inventory, not fixed asset collateral borrowing
      base. 

	  	  
	• 	
      There shall be no restriction on the Holdco Borrower
      borrowing under the ABL, but any application of such borrowings to the
      Holdco Borrower’s debt (other than payments of the ABL) would be subject
      to the Restricted Payments covenant described above. 

	  	  
	• 	
      Other baskets (including a general basket) to be agreed.
      

	  	  
	
      Asset Sale Covenant 

	  	  
	• 	
      Tested at the Holdco Borrower under both the Opco
      Facilities and Holdco Facilities. 

	  	  
	• 	
      Repayment of ABL debt and other debt of the Opco Borrower
      using proceeds from all asset sales shall satisfy the asset sale covenant
      in both the Holdco Facilities and the Opco Facilities. Repayment of debt
      of Opta Minerals using proceeds of sale of assets of Opta Minerals shall
      satisfy the asset sale covenant in both the Holdco Facilities and Opco
      Facilities. 

	  	  
	
      Opco Facilities only 

	  	  
	• 	
      If any Excess Proceeds remain and are required to be
      applied to payment of the Holdco Facilities, the additional restricted
      payment covenant in the Opco Facilities shall permit the Opco Borrower to
      make restricted payments to the Holdco Borrower with “Excess Proceeds”
      from asset sales (it being understood that proceeds of sales of assets of
      the European business shall first be required to be offered to repay
      indebtedness under the Existing European Credit Facility, the Existing
      North American Credit Facility and the Opco Facilities, in accordance with
      their terms, prior to being available to be offered to repay Holdco
      Facilities). 

	  	  
	• 	
      If any Excess Proceeds from any sale of Opta Minerals
      remain after repayment of Opta Minerals’ debt, such proceeds shall be
      applied first to reduce the Holdco Facilities (if permitted by the
      Existing Credit Facilities), and thereafter to reduce the Opco Facilities.
      

	  	  
	
      
	
      

	
      Affiliate Transactions Covenant 

	  	  
	• 	
      The Opco Facilities and the Holdco Facilities shall
      permit all dealings and transactions between and among (1) the Opco
      Borrower and its restricted subsidiaries and (2) the Holdco Borrower and
      its restricted subsidiaries, as well as other exceptions for dealings
      between and among such persons and other affiliates.

Annex I-C-4 

	Lien Covenant 
	 	 
	• 	The
      lien covenant in both Facilities shall regulate the Holdco Borrower and
      the Lien covenant of the Opco Facilities shall regulate the guarantors of
      such Facilities, and all ratio calculations shall be calculated using the
      Holdco Borrower’s financials. 
	 	 
	Dividend Stoppers Covenant 
	 	 
	• 	The
      additional restricted payment covenant described above in the Opco
      Facilities shall be expressly permitted by the Holdco Facilities. 
	 	 
	Merger Covenant 
	 	 
	• 	Each
      Facility shall contain a single covenant at the Holdco Borrower pertaining
      to a merger of the Holdco Borrower or a sale of substantially all its
      assets 
	 	 
	Change of Control 
	 	 
	• 	Each
      Facility shall contain a single covenant at the Holdco Borrower pertaining
      to a change of control of the Holdco Borrower and the Holdco Borrower
      ceasing to own 100% of the capital stock of the Opco Borrower. 
	 	 
	Defaults 
	 	 
	• 	Each
      Facility shall contain defaults pertaining to the Holdco Borrower and its
      restricted subsidiaries (including the Opco Borrower). 
	 	 
	Definitions 
	 	 
	• 	The
      Holdco Consolidated Net Income definition shall not exclude the Opco
      Borrower’s net income due to the additional restricted payments covenant
      at the Opco Borrower described above. 
	 	 
	Other Changes 

     
	• 	Such other changes reasonably requested by the
      Borrowers and agreed by the Lead Arranger (acting reasonably) to reflect
      the need for ongoing operational flexibility, consistent with the
      foregoing and the Documentation Principles. 

Annex I-C-5 

ANNEX II TO 
EXHIBIT C 

OPCO EXTENDED TERM LOANS 

	
      Maturity: 
	
      The Opco Extended Term Loans will mature on the date that
      is seven years after the Closing Date. 

	 	 
	
      Interest Rate: 
	
      The Opco Extended Term Loans will bear interest at a rate
      per annum equal to the Opco Total Cap. Interest shall be payable quarterly
      and on the maturity date of the Opco Extended Term Loans, in each case
      payable in arrears and computed on the basis of a 365-day year. 

	 	 
	
      Default Rate: 
	
      Upon the occurrence and during the continuance of any
      payment or bankruptcy event of default, overdue principal, interest, fees
      and other amounts shall bear interest at the applicable interest rate plus
      2.0% per annum. 

	 	 
	
      Guarantees: 
	
      Same as the Opco Bridge Loans. 

	 	 
	
      Security: 
	
      Same as the Opco Bridge Loans. 

	 	 
	
      Covenants, Defaults and Mandatory Offers to
      Purchase: 
	
      The covenants, mandatory offers to purchase and defaults
      which would be applicable to the Opco Exchange Notes, if issued, will also
      be applicable to the Opco Extended Term Loans in lieu of the corresponding
      provisions of the Opco Bridge Facility. 

	 	 
	
      Optional Prepayment: 
	
      The Opco Extended Term Loans may be prepaid, in whole or
      in part, at par, plus accrued and unpaid interest upon not less than three
      days’ prior written notice, at the option of the Opco Borrower at any
      time; provided that upon the occurrence of an Opco Demand Failure Event,
      the outstanding Opco Extended Term Loans will automatically and
      immediately be subject to the call protection provisions applicable to the
      Opco Exchange Notes. 

Annex II-C-1 

ANNEX III TO 
EXHIBIT C 

OPCO EXCHANGE NOTES 

	
      Issuer: 
	
      The Borrower will issue the Opco Exchange Notes under an
      indenture. The Opco Borrower or an affiliate, in its capacity as the
      issuer of the Opco Exchange Notes, is referred to as the “Opco
      Issuer”. 

	 	 
	
      Principal Amount: 
	
      The Opco Exchange Notes will be issued on or after the
      Opco Extension Date. The principal amount of any Opco Exchange Note will
      equal 100% of the aggregate principal amount of the Opco Extended Term
      Loan for which it is exchanged. In the case of a partial exchange, the
      minimum amount of Opco Extended Term Loans to be exchanged for Opco
      Exchange Notes will be $50,000,000 (or less if used to exchange the entire
      outstanding amount of the Opco Extended Term Loans). 

	 	 
	
      Maturity: 
	
      The Opco Exchange Notes will mature on the date that is
      seven years after the Closing Date. 

	 	 
	
      Interest Rate: 
	
      The Opco Exchange Notes will bear interest payable semi-
      annually at a weighted average yield which shall not exceed the Opco Total
      Cap. 

	 	 
	
      Guarantees: 
	
      Same as the Opco Extended Term Loans. 

	 	 
	
      Security: 
	
      Same as the Opco Extended Term Loans. 

	 	 
	
      Offer of Purchase upon Change of Control:
      
	
      The Opco Issuer will be required to make an offer to
      repurchase the Opco Exchange Notes following the occurrence of a change of
      control (to be defined in a manner consistent with the high- yield debt
      offerings and consistent with the Documentation Principles) at a price in
      cash equal to 101% (or 100% in the case of Opco Exchange Notes held by the
      Commitment Parties or their respective affiliates excluding Opco Exchange
      Notes held by them in connection with market making activities or asset
      management affiliates purchasing the Opco Exchange Notes in the ordinary
      course of their business as part of a regular distribution of the Opco
      Exchange Notes (“Asset Management Affiliates”)) of the outstanding
      principal amount thereof, plus accrued and unpaid interest to the date of
      repurchase, unless the Opco Issuer shall redeem such Opco Exchange Notes
      pursuant to the “Optional Redemption” section below. 

	 	 
	
      Offer to Purchase from Asset Sale Proceeds:
	
      The Opco Issuer will be required to make an offer to
    repurchase the Opco Exchange Notes (and, if outstanding,
      prepay the Opco Extended Term Loans) on a pro rata basis, which
      offer shall be at 100% of the principal amount thereof plus accrued and
      unpaid interest to the date of repurchase with a portion of the net cash
      proceeds from any non- ordinary course asset sales or dispositions
      (including as a result of casualty or condemnation) by the Holdco Borrower
      or any of its subsidiaries in excess of amounts either reinvested or
      required to be paid to lenders under the Existing Credit Facilities (and,
      in the case of sales of assets or capital stock of Opta Minerals, any
      other subsidiary of the Holdco Borrower (other than the Opco Borrower and
      its subsidiaries) or any minority interest owned by the Holdco Borrower or
      its restricted subsidiaries (other than the Opco Borrower and its
      subsidiaries), the Holdco Facilities), with such proceeds being applied to
      the Opco Extended Term Loans, the Opco Exchange Notes and the Opco Notes
      in a manner to be agreed, subject to other exceptions and baskets usual
      and customary for financings of this type consistent with the
      Documentation Principles, except that there shall be no reinvestment
      rights in respect of net cash proceeds (less the pro rata portion thereof
      attributable to minority interest ownership thereof) of any sale of the
      capital stock or assets of Opta Minerals (with such net cash proceeds also
      calculated after giving effect to required payoff of Opta Minerals’ credit
      facility and any other outstanding indebtedness of Opta Minerals in the
      case of sales of assets of Opta Minerals) for so long as the Holdco Bridge
    Facility is outstanding. 

Annex III-C-1 

	
      Optional Redemption: 
	
      The Opco Exchange Notes will be non-callable (subject to
      the exceptions in the three succeeding paragraphs below) until the third
      anniversary of the Closing Date. Thereafter, each Opco Exchange Note will
      be redeemable at the option of the Borrower at par plus accrued interest
      plus a premium equal to three quarters of the coupon on such Exchange Note
      during the fourth year after the Closing Date, one half of the coupon on
      such Exchange Note during the fifth year after the Closing Date and
      one-quarter of the coupon on such Exchange Note during the sixth year
      after the Closing Date, which call premiums shall decline to zero on the
      date that is the sixth anniversary of the Closing Date. 

	 	 
		
      Prior to the third anniversary of the Closing Date, the
      Opco Borrower may redeem Opco Exchange Notes at a make- whole price based
      on US Treasury notes with a maturity closest to the third anniversary of
      the Closing Date plus 50 basis points; provided that notwithstanding the
      foregoing, prior to the third anniversary of the Closing Date, the
      Issuer may redeem up to 10% of the aggregate principal amount of such Opco
      Exchange Notes during each twelve-month period commencing with the date of
      first exchange into Opco Exchange Notes at a price equal to 103% of the
      aggregate principal amount thereof plus any accrued and unpaid interest
      thereon. 

Annex III-C-2 

		
      Prior to the third anniversary of the Closing Date, the
      Opco Borrower may redeem up to 35.0% in the aggregate of the Opco Exchange
      Notes with proceeds from qualified equity offerings of the Holdco Borrower
      at a redemption price equal to par plus the coupon on such Opco Exchange
      Notes. 

	 	 
		
      The optional redemption provisions will be otherwise
      customary for high yield transactions consistent with the Documentation
      Principles. 

	 	 
		
      Notwithstanding any of the foregoing, any Opco Exchange
      Notes held by (and for so long as they are held by) the Commitment Parties
      or their respective affiliates (other than Asset Management Affiliates or
      Opco Exchange Notes purchased in the secondary market) shall be redeemable
      at any time and from time to time at the option of the Opco Borrower at a
      redemption price equal to par plus accrued and unpaid interest to the
      redemption date. 

	 	 
	
      Defeasance Provisions: 
	
      Customary for high yield transactions and consistent with
      the Documentation Principles. 

	 	 
	
      Amendment/Waiver: 
	
      Customary for high yield transactions and consistent with
      the Documentation Principles. 

	 	 
	
      Covenants: 
	
      Customary for high yield transactions and consistent with
      the Documentation Principles and otherwise reflecting the provisions of
      Annex I to Exhibit C. 

	 	 
	
      Registration Rights: 
	
      None. 

	 	 
	
      Right to Transfer Opco Exchange Notes:
    
	
      The holders of the Opco Exchange Notes (including the
      Opco Bridge Lenders) shall have the right to transfer such Opco Exchange
      Notes to any third parties, subject to compliance with applicable
      securities and other law. 

	 	 
	
      Events of Default: 
	
      Customary for high yield transactions and consistent with
      the Documentation Principles and otherwise reflecting the provisions of
      Annex I to Exhibit C. 

Annex III-C-3 

	
      Governing Law and Forum: 
	
      New York. 

Annex III-C-4 

EXHIBIT D 

PROJECT SHINE 
SUMMARY OF ADDITIONAL
CONDITIONS3 

The borrowings under the Bridge
Facilities shall be subject to satisfaction of the following conditions, in the
sole determination of the Lead Arranger (subject in all respects to the Certain
Funds Provisions): 

	
      1. 
	
      The Acquisition shall have been consummated, or
      substantially simultaneously with the borrowing under the Bridge
      Facilities shall be consummated, in all material respects in accordance
      with the terms of the Acquisition Agreement, after giving effect to any
      modifications, amendments, consents, waivers or requests by you (or your
      affiliate) thereto, other than those (including the effects of any
      requests) that are materially adverse to the interests of the Lenders,
      without the prior consent of the Lead Arranger (such consent not to be
      unreasonably withheld, delayed or conditioned); provided that (a)
      any reduction in the amount referred to in clause (A) of Section 2.2(a)(i)
      of the Acquisition Agreement (the “Base Purchase Price”) shall not
      be deemed to be materially adverse to the interests of the Lenders;
      provided, further, that, any such reduction in the Base
      Purchase Price shall be applied 100% to reduce the amount of funding under
      the Holdco Bridge Facility, the Holdco PIK Notes and/or the Equity
      Securities ratably and thereafter, to reduce the amount of funded debt
      under the Opco Bridge Facility and the Opco Notes; provided,
      further that the amount of funded debt under the Opco Bridge
      Facility and the Opco Notes (and/or any Takeout Securities issued in lieu
      of any Opco Notes) shall not be less than $250,000,000 and (b) any
      amendment, modification, waiver, consent or request in respect of the
      definition of “Material Adverse Effect” shall be deemed to be materially
      adverse to the interests of the Lenders.

	
       
	
       

	
      2. 
	
      (a) Except as set forth on the Seller Disclosure Schedule
      (as defined in the Acquisition Agreement), since December 31, 2014 through
      the date of the Acquisition Agreement, there has not occurred any event
      that would reasonably be expected to have, individually or in the
      aggregate, a Material Adverse Effect (as defined in the Acquisition
      Agreement) and (b) between the date of the Acquisition Agreement and the
      Closing Date (as defined in the Acquisition Agreement), there has been no
      event, circumstance, development, change or effect that would reasonably
      be expected to have a Material Adverse Effect. Any disclosure with respect
      to a section or schedule of the Acquisition Agreement (including any
      section of the Seller Disclosure Schedule) shall be deemed to have been
      disclosed for other sections and schedules of the Acquisition Agreement
      (including a section of the Seller Disclosure Schedule) where the
      relevance of such disclosure would be reasonably apparent.

	
       
	
       

	
      3. 
	
      After giving effect to the Transactions, the Holdco
      Borrower and its subsidiaries (excluding the Target and its subsidiaries)
      shall have outstanding no third party indebtedness for borrowed money in excess of $720 million
(other than non-recourse indebtedness of Opta Minerals and assuming the Existing
Credit Facilities are fully drawn) and from the date hereof until the Closing
Date, the Holdco Borrower and its subsidiaries (excluding the Target and its
subsidiaries) shall only incur third party indebtedness for borrowed money for
working capital purposes in the ordinary course of business (as reasonably
determined in good faith by the Holdco Borrower) except for (i) indebtedness
incurred to finance the Transactions and (ii) indebtedness not in excess of $10
million to finance other acquisitions. 

_______________________________________

3 All capitalized terms used but not defined herein
shall have the meanings given to them in the Commitment Letter to which this
Term Sheet is attached, including the Exhibits thereto. In the event any such
capitalized term is subject to multiple or differing definitions, the
appropriate meaning thereof in this Exhibit D shall be determined by reference
to the context in which it is used. 

 

	
      4. 
	
      The Lead Arranger shall have received (a) unaudited
      combined balance sheets and related statements of income and cash flows of
      Target and its subsidiaries for each fiscal quarter (that is not the last
      fiscal quarter of a fiscal year) commencing on or after December 31, 2014,
      and ended at least 45 days prior to the Closing Date, and (b) audited
      combined balance sheets and related statements of income and cash flows of
      Target and its subsidiaries for the three most recently completed fiscal
      years ended at least 90 days before the Closing Date. The Lead Arranger
      acknowledges receipt of the audited financial statements of the Target and
      its subsidiaries for the three years ended December 31, 2014 and of the
      unaudited financial statements of the Target and its subsidiaries for the
      fiscal quarter ended March 31, 2015.

	
       
	
       

	
      5. 
	
      The Lead Arranger shall have received a pro forma
      consolidated balance sheet and related pro forma consolidated statement of
      income of the Holdco Borrower for the twelve month period ending on the
      last day of the most recently completed four-fiscal quarter period ended
      at least 90 days prior to the Closing Date (if the end of such period is a
      fiscal year-end of the Holdco Borrower) or ended at least 45 days prior to
      the Closing Date (if the end of such period is not a fiscal year end of
      the Holdco Borrower), in each case, prepared after giving effect to the
      Transactions as if the Transactions had occurred as of such date (in the
      case of such balance sheet) or at the beginning of such period (in the
      case of the statement of income), which need not include adjustments for
      purchase accounting (including adjustments of the type contemplated by
      Financial Accounting Standards Board Accounting Standards Codification
      805, Business Combinations (formerly SFAS 141R)).

	
       
	
       

	
      6. 
	
      The Bridge Administrative Agent and the Lead Arranger
      shall have received, no later than three days prior to the Closing Date,
      all documentation and other information about the Borrowers and the
      Guarantors as has been reasonably requested in writing by the Bridge
      Administrative Agent and the Lead Arranger at least ten Business Days
      prior to the Closing Date that is required by regulatory authorities under
      applicable “know your customer” and anti-money laundering rules and
      regulations, including without limitation AML Law.

	
       
	
       

	
      7. 
	
      (a) (i) With respect to the Holdco Bridge Facility, (x)
      the execution and delivery by the Holdco Borrower of the Holdco Bridge
      Facility Documentation (as defined in Exhibit B), which shall be in
      accordance with the terms of the Commitment Letter and the Holdco Term
      Sheet and subject to Certain Funds Provisions and the Documentation
      Principles set forth in the Commitment Letter and (y) delivery to the
      Bridge Administrative Agent of (i) a customary borrowing notice (subject
      to the Certain Funds Provisions), customary legal opinions, customary
      officer’s closing certificates, organizational documents, customary
      evidence of authorization and good standing certificates in the
      jurisdiction of formation, in each case, with respect to the Holdco Borrower, and (ii) a
solvency certificate, dated as of the Closing Date and after giving effect to
the Transactions, substantially in the form of Annex I attached to this Exhibit
D, of a senior authorized financial executive or officer of the Holdco Borrower.

D-2 

(b) with respect to the Opco Bridge
Facility, (x) the execution and delivery by the Opco Borrower and the Guarantors
(as such term are defined in Exhibit C) of the Opco Bridge Facility
Documentation (as defined in Exhibit C) (including guarantees by the applicable
guarantors, which shall include the Target and its subsidiaries only after
consummation of the Acquisition), which shall be in accordance with the terms of
the Commitment Letter and the Opco Term Sheet and subject to the Certain Funds
Provisions and the Documentation Principles set forth in the Commitment Letter
and (y) delivery to the Bridge Administrative Agent of (i) a customary borrowing
notice (subject to the Certain Funds Provisions), customary legal opinions,
customary officer’s closing certificates, organizational documents, customary
evidence of authorization and good standing certificates in jurisdictions of
formation/organization, in each case with respect to the Opco Borrower and the
Guarantors (to the extent applicable) and (ii) a solvency certificate, dated as
of the Closing Date and after giving effect to the Transactions, substantially
in the form of Annex I attached to this Exhibit D, of a senior authorized
financial executive or officer of the Holdco Borrower or the Opco Borrower; 

	
      8. 
	
      With respect to the Opco Bridge Facility, subject in all
      respects to the Certain Funds Provisions, all documents and instruments
      required to create and perfect the Bridge Administrative Agent’s security
      interest in the Collateral (as defined in Exhibit C) shall have been
      executed and delivered and, if applicable, be in proper form for
      filing.

	
       
	
       

	
      9. 
	
      All fees required to be paid on the Closing Date pursuant
      to the Commitment Letter and the Fee Letter and reasonable and documented
      out-of-pocket expenses required to be paid on the Closing Date pursuant to
      the Commitment Letter, to the extent invoiced at least three Business Days
      prior to the Closing Date, shall, upon the borrowing under the Bridge
      Facilities, have been paid (which amounts may be offset against the
      proceeds of the Bridge Facilities).

	
       
	
       

	
      10. 
	
      (a) With respect to the Opco Bridge Facility, (1) you
      shall have engaged one or more investment banks reasonably acceptable to
      the Lead Arranger (in such capacity, the “Debt Investment Banks”)
      to act as book-running managers and as underwriters, initial purchasers or
      placement agents to sell or privately place the Opco Notes and any related
      Takeout Securities to be issued by the Opco Borrower to consummate the
      Acquisition (the “Opco Debt Transactions”) (the Lead Arranger
      hereby acknowledges that such reasonably acceptable Debt Investment Banks
      have been so engaged) and (2) you shall have provided the Debt Investment
      Banks with (A) a customary preliminary offering memorandum (the “Opco
      Offering Memorandum”) suitable for use in a customary “high yield road
      show” relating to the Opco Notes and in customary form for preliminary
      offering memoranda used in private placements of non-convertible debt
      securities, including or incorporating all financial statements and other
      information (which financial statements and other information may also
      relate to the Holdco Borrower) that would customarily be included in
      offering memoranda for use in the United States under Rule 144A (it being
      understood none of such information need include financial statements
      required by Rules 3-09, 3-10 or 3-16 of Regulation S-X, Compensation
      Discussion and Analysis or other information required
by Item 402 of Regulation S-K and the executive compensation and related person
disclosure rules related to SEC Release Nos. 33-8732A, 34-54302A and IC-27444A
and other customary exceptions); provided that this condition shall be
deemed satisfied if the Opco Offering Memorandum excludes the “description of
notes” and other information or sections that would customarily be provided by
the Debt Investment Banks or their counsel; provided further that
the only information relating to the Target and its subsidiaries required to be
included in the Opco Offering Memorandum shall consist of the Required
Information (as defined in Annex II to this Exhibit D) and (B) drafts of
customary “comfort” letters with respect to the financial information in the
Opco Offering Memorandum by auditors of the Target and the Holdco Borrower,
which such auditors are prepared to issue upon completion of customary
procedures. The Debt Investment Banks shall have been afforded a period of at
least 17 consecutive Business Days following delivery by the Opco Borrower of an
Opco Offering Memorandum including the information described in clause (2)(A)
above (such information, the “Opco Notes Marketing Information”) (the
“Opco Marketing Period”) and prior to the Closing Date to seek to offer
and sell or privately place the Opco Notes with qualified purchasers thereof; provided, however, that (x) such 17 consecutive Business Day
period will not commence until September 9, 2015, (y) if such 17 consecutive
Business Day period has not ended prior to December 18, 2015, it will not
commence until January 4, 2016 and (z) November 27, 2015 shall not be considered
a Business Day for purposes of the Opco Marketing Period. For purposes of this
Exhibit D, Business Day means any day that is not a Saturday, a Sunday or other
day on which commercial banks in New York, New York or Toronto, Ontario are
required or authorized by applicable law to be closed; provided, further, that if you shall in good faith reasonably believe that the Opco
Notes Marketing Information has been delivered, you may deliver to the
Commitment Parties a written notice to that effect (stating when you believe the
delivery of the Opco Notes Marketing Information to the Debt Investment Banks
was completed), in which case you shall be deemed to have complied with such
obligation to furnish the Opco Notes Marketing Information and the Debt
Investment Banks shall be deemed to have received the Opco Notes Marketing
Information, unless the Commitment Parties in good faith reasonably believe that
you have not completed the delivery of such Opco Notes Marketing Information
and, not later than 5:00 p.m. (New York time) two business days after the
delivery of such notice by you, deliver a written notice to you to that effect
(stating with specificity which such Opco Notes Marketing Information has not
been delivered); provided, that notwithstanding the foregoing, the
delivery of the Opco Notes Marketing Information shall be satisfied at any time
at which (and so long as) the Debt Investment Banks shall have actually received
the Opco Notes Marketing Information, regardless of whether or when any such
notice is delivered by you. 

D-3 

(b) With respect to the Holdco Bridge
Facility, (1) you shall have engaged Debt Investment Banks to act as
book-running managers and as underwriters, initial purchasers or placement
agents to sell or privately place the Holdco PIK Notes and any related Takeout
Securities to be issued by the Holdco Borrower to consummate the Acquisition
(the “Holdco Debt Transactions”) (the Lead Arranger hereby acknowledges
that such reasonably acceptable Debt Investment Banks have been so engaged) and
(2) you shall have provided the Debt Investment Banks with (A) a customary
preliminary offering memorandum (the “Holdco Offering Memorandum”)
suitable for use in a customary “high yield road show” relating to the Holdco
PIK Notes or such other debt securities, as the case may be, and in customary form for preliminary offering
memoranda used in private placements of non-convertible debt securities,
including or incorporating all financial statements and other information that
would customarily be included in offering memoranda for use in the United States
under Rule 144A (it being understood none of such information need include
financial statements required by Rules 3-09, 3-10 or 3-16 of Regulation S-X,
Compensation Discussion and Analysis or other information required by Item 402
of Regulation S-K and the executive compensation and related person disclosure
rules related to SEC Release Nos. 33-8732A, 34-54302A and IC-27444A and other
customary exceptions); provided that this condition shall be deemed
satisfied if the Holdco Offering Memorandum excludes the “description of notes”
and other information or sections that would customarily be provided by the Debt
Investment Banks or their counsel; provided further that the only
information relating to the Target and its subsidiaries required to be included
in the Holdco Offering Memorandum shall consist of the Required Information (as
defined in Annex II to this Exhibit D) and (B) drafts of customary “comfort”
letters with respect to the financial information in the Holdco Offering
Memorandum by auditors of the Target and the Holdco Borrower which such auditors
are prepared to issue upon completion of customary procedures. The Debt
Investment Banks shall have been afforded a period of at least 17 consecutive
business days following delivery by the Holdco Borrower of a Holdco Offering
Memorandum including the information described in clause (2)(A) above (such
information, the “Holdco Notes Marketing Information”) (the “Holdco
Marketing Period”) and prior to the Closing Date to seek to offer and sell
or privately place the Holdco PIK Notes or the other debt securities with
qualified purchasers thereof; provided, however, that (x) such 17
consecutive Business Day period will not commence until September 9, 2015, (y)
if such 17 consecutive Business Day period has not ended prior to December 18,
2015, it will not commence until January 4, 2016 and (z) November 27, 2015 shall
not be considered a Business Day for purposes of the Holdco Marketing Period; provided, further, that if you shall in good faith reasonably
believe that the Holdco Notes Marketing Information has been delivered, you may
deliver to the Commitment Parties a written notice to that effect (stating when
you believe the delivery of the Holdco Notes Marketing Information to the Debt
Investment Banks was completed), in which case you shall be deemed to have
complied with such obligation to furnish the Holdco Notes Marketing Information
and the Debt Investment Banks shall be deemed to have received the Holdco Notes
Marketing Information, unless the Commitment Parties in good faith reasonably
believe that you have not completed the delivery of such Holdco Notes Marketing
Information and, not later than 5:00 p.m. (New York time) two business days
after the delivery of such notice by you, deliver a written notice to you to
that effect (stating with specificity which such Holdco Notes Marketing
Information has not been delivered); provided, that notwithstanding the
foregoing, the delivery of the Holdco Notes Marketing Information shall be
satisfied at any time at which (and so long as) the Debt Investment Banks shall
have actually received the Holdco Notes Marketing Information, regardless of
whether or when any such notice is delivered by you.

D-4 

 

	
      11. 
	
      You shall have engaged one or more investment banks
      reasonably acceptable to the Lead Arranger (in such capacity, the
      “Equity Securities Investment Banks”) to act as book- running
      managers and/or as underwriters, initial purchasers or placement agents,
      to sell or underwrite the Equity Securities to be issued by the Holdco
      Borrower pursuant to a registered public offering in the United States or
      in a private placement, including pursuant to Rule 144A or other exemption from registration
under the Securities Act of 1933, as amended (the “Equity Securities
Transaction”) (the Lead Arranger hereby acknowledges that such reasonably
acceptable Equity Securities Investment Banks have been so engaged).

D-5 

 

	
      12. 
	
      The Specified Acquisition Agreement Representations shall
      be true and correct, but only to the extent that SunOpta Inc. has (or an
      applicable affiliate has) the right to terminate SunOpta Inc.’s (or such
      affiliate’s) obligations under the Acquisition Agreement or decline to
      consummate the Acquisition as a result of a breach of such representations
      and warranties in the Acquisition Agreement and the Specified
      Representations shall be true and correct in all material respects (where
      not already qualified by materiality, otherwise in all respects) (except
      in the case of any Specified Representation which expressly relates to a
      given date or period, such representation and warranty shall be true and
      correct in all material respects (where not already qualified by
      materiality, otherwise in all respects) as of the respective date or
      respective period, as the case may be).

D-6 

ANNEX I TO 
EXHIBIT D 

FORM OF SOLVENCY CERTIFICATE 

SOLVENCY CERTIFICATE 
of 
[BORROWERS]

AND THEIR SUBSIDIARIES 

The undersigned hereby certifies,
solely in such undersigned’s capacity as [chief financial officer] of the
Borrowers, and not individually, and without personal liability, as follows: 

As
  of the date hereof, after giving effect to the consummation of the Transactions,
  including the making of the loans under the Existing North American Facility,
  the incurrence of the loans under the Bridge Facilities and the issuance of the
  Notes on the date hereof, and after giving effect to the application of the
  proceeds of such indebtedness:

	 	
      (a) 
	
      The fair value of the assets of the Holdco Borrower and
      its subsidiaries, on a consolidated basis, exceeds, on a consolidated
      basis, their debts and liabilities, subordinated, contingent or
      otherwise;

	 	
       
	
       

	 	
      (b) 
	
      The present fair saleable value of the property of the
      Holdco Borrower and its subsidiaries, on a consolidated basis, is greater
      than the amount that will be required to pay the probable liability, on a
      consolidated basis, of their debts and other liabilities, subordinated,
      contingent or otherwise, as such debts and other liabilities become
      absolute and matured;

	 	
       
	
       

	 	
      (c) 
	
      The Holdco Borrower and its subsidiaries, on a
      consolidated basis, are able to pay their debts and liabilities,
      subordinated, contingent or otherwise, as such liabilities become absolute
      and matured;

	 	
       
	
       

	 	
      (d) 
	
      The Holdco Borrower and its subsidiaries, on a
      consolidated basis, are not engaged in, and are not about to engage in,
      business for which they have unreasonably small capital; and

	 	
       
	
       

	 	
      (e) 
	
      Neither the Holdco Borrower [nor the Opco Borrower] are
      an “insolvent person” within the meaning of the Bankruptcy and
      Insolvency Act (Canada).

For purposes of this Solvency
Certificate, the amount of any contingent liability at any time shall be
computed as the amount that would reasonably be expected to become an actual and
matured liability. Capitalized terms used but not otherwise defined herein shall
have the meanings assigned to them in the Commitment Letter. 

[Signature Page Follows] 

IN WITNESS WHEREOF, the
undersigned has executed this Solvency Certificate in such undersigned’s
capacity as [chief financial officer] of the Borrowers, on behalf of the
Borrowers, and not individually, and without personal liability, as of the date
first stated above. 

	 	[___________________] 
	 	  
	 	  
	 	  
	 By: 	
	 	Name: 
	 	Title: 

Annex I-D-2 

ANNEX II TO 
EXHIBIT D 

Capitalized terms used in this Annex II to Exhibit D but not
defined in this Annex II to Exhibit D have the meanings assigned to such terms
in the Acquisition Agreement. 

“Debt Investment Banks” has the meaning assigned to such
term in Exhibit D. “Required Information” means the following:

	
      (i) 
	
      audited consolidated financial statements (and related
      footnotes) of the Company and its Subsidiaries prepared on a consolidated
      basis in accordance with GAAP and of the type required by Regulation S-X
      under the Securities Act for an offering of debt securities, together with
      an audit report thereon, for each of the fiscal years in the three-year
      period ending December 31, 2014;

	
       
	
       

	
      (ii) 
	
      unaudited and reviewed consolidated financial statements
      (and related footnotes) of the Company and its Subsidiaries prepared on a
      consolidated basis in accordance with GAAP and of the type required by
      Regulation S-X under the Securities Act for an offering of debt securities
      for the six-month periods ended June 30, 2015 and 2014 or, if the
      Marketing Period shall not have been completed by the Staleness Date, for
      the nine- month periods ending September 30, 2015 and 2014;

	
       
	
       

	
      (iii) 
	
      historical financial information and historical financial
      data of the Company and its Subsidiaries solely to the extent such
      information and data is necessary in order for you to prepare (A)
      customary pro forma financial statements in accordance with Article 11 of
      Regulation S-X under the Securities Act for the following periods: (I) the
      fiscal year ended December 31, 2014, (II) the six months ended June 30,
      2015 or, if the Marketing Period shall not have been completed by the
      Staleness Date, the nine months ended September 30, 2015 and (III) the six
      months ended June 30, 2014 or, if the Marketing Period shall not have been
      completed by the Staleness Date, for the nine months ending September 30,
      2014 (and related footnotes) and (B) a customary “Pro Forma Adjusted
      EBITDA” presentation of the Company and its Subsidiaries;

	
       
	
       

	
      (iv) 
	
      data and information of the Company and its Subsidiaries
      reasonably required in order to prepare an abbreviated “Business” section
      for the Offering Documents, describing the business of the Company and its
      Subsidiaries;

	
       
	
       

	
      (v) 
	
      data and information of the Company and its Subsidiaries
      reasonably required in order to prepare an abbreviated “Management’s
      Discussion and Analysis of Financial Condition and Results of Operations”
      section for the Offering Documents, containing a customary results of
      operations discussion relating to the financial statements described in
      clauses (i) and (ii) above;

	
       
	
       

	
      (vi) 
	
      a description of risk factors relating to the business of
      the Company and its Subsidiaries for the Offering Documents (other than
      any such risk factors relating to global or national economic, financial
      or political conditions or risk factors affecting the Company’s industry
      generally); and

Annex II-D-1 

	
      (vii) 
	
      all other historical financial and historical accounting
      data that is reasonably required by the Debt Investment Banks, solely to
      the extent such information and data is necessary for the underwriter or
      initial purchaser of an offering of such securities to receive customary
      “comfort” (including customary “negative assurance” comfort) from
      independent accountants in connection with the Financing, which such
      auditors are prepared to provide upon completion of customary
      procedures.

Annex II-D-2SJW-6.30.15-EX10.1

Exhibit 10.1

April 30, 2015

Andy Gere
Vice President of Operations
San Jose Water Company

Dear Andy: 

I am pleased to inform you that San Jose Water Company’s Board of Directors, at their meeting held on April 29, 2015, approved your promotion to Chief Operating Officer effective as of April 29, 2015.

In addition to the increased responsibility and authority that accompanies your new position, your annual base salary will be increased to $280,000 and your annual short-term incentive bonus target will be set at $60,000.  Your actual bonus may range from 0 to 150 percent of target based on corporate and individual performance, and you may earn up to an additional 50 percent of target for exceptional individual performance.  The payment of your salary and bonuses will be subject to the company’s collection of all applicable withholding taxes. 

SJW Corp.’s Executive Compensation Committee also approved the award of:  (i) service-based restricted stock units (“RSUs”) under SJW Corp.’s Long-Term Incentive Plan covering 501 shares of common stock which will vest in three equal installments upon completion of each year of service over the three year period measured from April 29, 2015, the effective date of the award and (ii) performance-based RSUs covering a target number of shares of 501.  Such performance-based award will vest based on the level of achievement of a performance goal based on the SJW Corp.’s return on equity measured over the 2015 calendar year and continued service through December 31, 2015.  The maximum number of shares issuable under such performance-based award will be 150 percent of the target number of shares and no shares will be issued if the minimum threshold level of performance is not attained. 

Personally, and on behalf of San Jose Water Company’s Board of Directors, please accept our gratitude for your outstanding work to date.  Congratulations on this important career milestone, and I look forward to working with you in your new capacity.

Very truly yours,

/s/ W. Richard Roth
W. Richard Roth
Chairman, President & Chief Executive Officer

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