Document:

FORBEARANCE AGREEMENT

 Exhibit 4.4.6 
  
 FORBEARANCE AGREEMENT 
  

This Forbearance Agreement (“Forbearance Agreement”) is entered into as of March 29, 2004 by and between Comerica Bank, successor to Imperial
Bank (“Bank”), and SYNBIOTICS CORPORATION, a California corporation (“Borrower”). This Forbearance Agreement is made with reference to the following facts: 
  
 A. Borrower is currently indebted to Bank pursuant to the Loan Documents (as defined below). Borrower acknowledges that it
is in default under the Loan Documents as set forth in Section I.C. below, and Borrower desires, inter alia, that Bank temporarily forbear from exercising its rights and remedies as to existing defaults under the Loan Documents as of the date of
execution of this Forbearance Agreement. 
  
 B. Bank desires full
repayment of the amounts that are due by Borrower under the Loan Documents. Bank is willing to temporarily forbear from exercising its rights and remedies as to existing defaults under the Loan Documents only in accordance with the terms and
conditions set forth in this Forbearance Agreement. 
  
 C. THIS
FORBEARANCE AGREEMENT ADDRESSES THE DEBTS AND/OR OBLIGATIONS OF BORROWER TO BANK WHICH ARE FULLY DESCRIBED HEREIN. THIS FORBEARANCE AGREEMENT DOES NOT PERTAIN TO ANY OTHER INDEBTEDNESS AND/OR OBLIGATIONS OF BORROWER (OR ANY OTHER PARTIES) TO BANK
NOT SPECIFICALLY ADDRESSED IN THIS FORBEARANCE AGREEMENT. ALL TERMS AND PROVISIONS OF ANY AGREEMENTS BETWEEN BORROWER AND BANK INCLUDING, BUT NOT LIMITED TO, THE LOAN DOCUMENTS, NOT SPECIFICALLY MODIFIED HEREIN, SHALL REMAIN IN FULL FORCE AND EFFECT
IN ACCORDANCE WITH THEIR ORIGINAL TERMS. 
  
 NOW, THEREFORE, in
consideration of (i) the above recitals and the mutual promises contained in this Forbearance Agreement; (ii) the execution of this Forbearance Agreement and all documents, instruments and agreements required to be executed in accordance with this
Forbearance Agreement; (iii) the satisfaction of all Conditions Precedent set forth in Section VI. below; and for other and further valuable consideration, the receipt and sufficiency of which is hereby acknowledged, it is hereby agreed as follows:

  
 I. ACKNOWLEDGMENT OF THE EXISTING
INDEBTEDNESS AND THE LOAN DOCUMENTS. 
  
 A. The Credit
Agreement and Other Loan Documents. 
  
 1. On
or about April 12, 2000, Borrower and Bank entered into that certain Credit Agreement (as amended, restated, modified, supplemented or revised from time to time, the “Credit Agreement”), pursuant to which Borrower promised to pay Bank the
principal amount of up to Ten Million Dollars ($10,000,000.00), together with interest on the funds disbursed thereunder at the rate provided for in the promissory notes described below. The Credit Agreement was amended pursuant to a First Amendment
to Credit Agreement dated as of April 18, 2000 (“First Amendment”), by a Second Amendment to Credit Agreement dated as of November 14, 2000 (“Second Amendment”) and by a 

 Third Amendment to Credit Agreement and Loan Documents and Waiver of Defaults dated as of January 25,
2002 (“Third Amendment”). In addition, Bank and Borrower entered into a Letter Agreement dated as of September 4, 2003. 
  
 2. Pursuant to the Credit Agreement, Borrower executed and delivered to Bank a (a) Promissory Note in the principal amount of Six Million
Dollars ($6,000,000.00) (as amended, restated, modified, supplemented or revised from time to time, the “Term Note”) and a (b) Revolving Note in the principal amount of Four Million Dollars ($4,000,000.00) (as amended, restated, modified,
supplemented or revised from time to time, the “Revolving Note”). Pursuant to the Second Amendment, Borrower executed and delivered to Bank a new Term Note in the principal amount of Six Million Three Hundred Thousand Dollars
($6,300,000.00). On or about January 25, 2002, pursuant to the Third Amendment, Borrower executed and delivered to Bank a Promissory Note in the principal amount of $7,132,000.00 (the “Note”), which Note replaced the Term Note and the
Revolving Note. 
  
 3. Also pursuant to the
Credit Agreement: (a) Borrower executed and delivered to Bank: (i) that certain Commercial Security Agreement dated as of April 12, 2000 (as amended, restated, modified, supplemented or revised from time to time, the “Commercial Security
Agreement”); (ii) that certain Commercial Pledge and Security Agreement dated as of April 12, 2000 (as amended, restated, modified, supplemented or revised from time to time, the “Commercial Pledge Agreement”); (iii) that certain
Patent Security Agreement dated as of April 12, 2000 (as amended, restated, modified, supplemented or revised from time to time, the “Patent Security Agreement”); and (iv) that certain Trademark Security Agreement dated as of April 12,
2000 (as amended, restated, modified, supplemented or revised from time to time, the “ Trademark Security Agreement”); and (b) W3Commerce LLC, a Delaware limited liability company, executed and delivered to Bank a Commercial Security
Agreement dated as of April 12, 2000 (as amended, restated, modified, supplemented or revised from time to time, the “W3C Commercial Security Agreement”). The Credit Agreement, Commercial Security Agreement, Commercial Pledge Agreement,
Patent Security Agreement, Trademark Security Agreement and W3C Commercial Security Agreement each grant Bank a valid, perfected, first priority security interest in the property described therein as collateral (the “Collateral”) securing
the Borrower’s obligations to Bank under the Loan Documents. 
  
 4. On or about April 12, 2000, Borrower executed and delivered to Bank two form UCC-1 financing statements. Bank filed the financing statements with the office of the Secretary of State of California. Bank has filed
the Patent Security Agreement and the Trademark Security Agreement with the United States Patent and Trademark Office. 
  
 5. Borrower has delivered to Bank a warrant to purchase stock dated December 1, 2000 granting to Bank stock warrants in Borrower for a
total of 250,000 shares of Borrower’s Common Stock, on terms and conditions more fully set forth therein. 
  
 6. On or about May 30, 2002, Bank and Borrower entered into a Letter Agreement pursuant to which Bank agreed to release the securities of
W3 Commerce, Inc. (“W3C Stock”) held by Bank as collateral in exchange for a security interest in 
  

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 100,000 shares of common stock of Borrower. As such, on or about May 30, 2002, (a) Bank and Borrower
entered into an Amendment to Commercial Pledge and Security Agreement including certain stock in Borrower as collateral and releasing Bank’s security interest in the W3C Stock securing the Borrower’s obligations under the Credit Agreement;
and (b) Colin Lucas Mudd (“Pledgor”) and Bank entered into a Stock Pledge Agreement whereby the Pledgor pledged certain stock of Borrower to secure the Borrower’s obligations under the Credit Agreement and Note, among other things.
Further references to the Collateral shall include the Borrower stock pledged to Bank and shall not include the W3C Stock. 
  
 7. On or about August 31, 2002, Bank and Borrower entered into a Consent Agreement pursuant to which, among other things, (a) Bank
consented to the sale of certain assets (“Subject Asset Sale”) by Borrower to Danam Acquisition Corp. and Drew Scientific Group PLC (collectively, “Buyers”), and (b) Borrower assigned to Bank a Secured Promissory Note, Guaranty
and Security Agreements to be executed in connection with the Subject Asset Sale. Further references to the Collateral shall include the aforesaid Secured Promissory Note, Guaranty and Security Agreements, and exclude the assets transferred to the
Buyers with the consent of Bank. 
  
 8. The
documents referenced above and all documents, security agreements and written amendments, notes and so forth related thereto are hereinafter collectively referred to as “Loan Documents.” 
  
 9. Borrower acknowledges that the Loan Documents constitute
duly authorized, valid, binding, fully perfected and continuing agreements and obligations of Borrower to Bank, enforceable in accordance with their respective terms; and that Borrower has no claims, cross-claims, counterclaims, setoffs or defenses
of any kind or nature which would in any way reduce or offset its obligations to Bank under the Loan Documents as of the date of this Forbearance Agreement. Borrower ratifies and reaffirms the continuing effectiveness of the Loan Documents and all
other instruments, documents and agreements entered into with Bank in connection with the Loan Documents. Borrower hereby confirms and ratifies Bank’s first priority lien and security interest in all Collateral, including all presently existing
and hereafter acquired Collateral. Borrower reaffirms that it shall execute such security agreements, financing statements and other documents as Bank may from time to time reasonably request to carry out the terms of this Forbearance Agreement and
the Loan Documents. Such liens and security interests shall secure all of the obligations of Borrower under this Forbearance Agreement and the Loan Documents. 
  

B. Existing Indebtedness. Borrower acknowledges and agrees that the current outstanding principal balance owed to Bank under the Loan Documents
is $4,670,645.89, plus accrued and unpaid interest through the date of this Forbearance Agreement, together with the Bank’s costs, expenses and reasonable attorneys’ fees, which but for this Forbearance Agreement would be fully due and
payable (“Existing Indebtedness”). 
  
 C. Defaults
Under Loan Agreements and Remedies. Borrower acknowledges and agrees that Borrower is in default under the terms and conditions of the Loan Documents in that, inter alia, Borrower failed to pay the amounts due in full when the loan matured on
January 25, 2004. 
  

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 Borrower acknowledges and agrees that but for this Forbearance Agreement the Bank is fully entitled to exercise all of
its rights and remedies under the Loan Documents, including but not limited to foreclosing on its Collateral. Borrower has no defense at law or equity, including the right of setoff, to the Bank’s claims for repayment of the Existing
Indebtedness. 
  
 II. LIMITED SCOPE OF
FORBEARANCE AGREEMENT. 
  
 Nothing contained in this
Forbearance Agreement shall be interpreted as or be deemed a release or a waiver by Bank of any of the terms and conditions of the Loan Documents, or any other documents, instruments and agreements between the parties hereto except as specifically
provided in this Forbearance Agreement. Unless specifically modified herein, all other terms and provisions of the Loan Documents shall remain in full force and effect in accordance with their original terms, and are hereby ratified and confirmed in
all respects. This Forbearance Agreement does not constitute a waiver or release by Bank of any obligations between Borrower and Bank, or a waiver by Bank of any defaults by Borrower under the Loan Documents, unless expressly so provided herein, nor
between Bank and any other person or entity. The Bank has no duty to advance any funds under the Loan Documents. 
  
 III. BANK’S AGREEMENT TO FORBEAR DURING FORBEARANCE PERIOD. 
  
 A. Forbearance Period. So long as no Event of Default occurs under this Forbearance Agreement, Bank hereby agrees to
forbear from exercising its rights and remedies under the Loan Documents commencing upon satisfaction (or waiver in writing by Bank) of the Conditions Precedents set forth in Section VI. hereof through 1:00 p.m. Pacific Time on May 5, 2004
(“Forbearance Period”). 
  
 B. Bank Remedies at
Expiration of Forbearance Period. Borrower acknowledges and agrees that immediately after the Forbearance Period expires, if the Existing Indebtedness to Bank is not paid in full, Bank may exercise all of the rights and remedies contained in the
Loan Documents, in this Forbearance Agreement, and under applicable law. 
  
 C. Forbearance Limited to Specified Defaults. Borrower further acknowledges and agrees that Bank’s agreement to forbear during the Forbearance Period concerns only Borrower’s defaults which have been
identified herein and exist as of the date of execution of this Forbearance Agreement (“Existing Defaults”), but not as to any defaults which may arise in the future or which are unknown to Bank. 
  

	IV.	REIMBURSEMENT OF BANK’S FEES AND COSTS. 

  
 A. Forbearance and Documentation Fees. Prior to or contemporaneous with the execution of this Forbearance Agreement, Borrower shall pay Bank an
extension and forbearance fee in the amount of $1,500.00 and a documentation fees in the amount of $500.00. Neither the extension and forbearance fee nor the documentation fee shall be refundable or applied to the Existing Indebtedness or
Bank’s attorney’s fees and costs. 
  
 B. Borrower shall,
not later than 15 calendar days after receipt of a payment request from Bank or Bank’s counsel, reimburse Bank for all of Bank’s costs and expenses, including attorneys’ fees of Bank’s outside counsel, (“Costs”)
incurred in connection with: (a) enforcing 
  

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 Borrower’s obligations under the Loan Documents; (b) the negotiation, preparation and documentation of this
Forbearance Agreement and all accompanying documents; and (c) the recording of any instrument or document required hereunder to maintain and/or perfect Bank’s security interests in the Collateral. 
  
 C. By execution of this Forbearance Agreement, Borrower authorizes Bank to
collect the amounts set forth in this Section IV. by charging any of Borrower’s accounts at Bank. 
  
 V. AFFIRMATIVE COVENANTS. Borrower covenants and agrees as follows: 
  
 A. Required Payments. 
  
 1. Borrower shall pay Bank, on or before April 1, 2004, (i) a principal payment of $30,000.00, and (ii) all interest accrued under the
Loan Documents as of said date. 
  
 2. Borrower
shall pay Bank, on or before May 1, 2004, (i) a principal payment of $30,000.00, and (ii) all interest accrued under the Loan Documents as of said date. 
  
 B. Financial Reporting. Borrower shall continue to provide Bank with the following financial reporting: (1) monthly AC-1 and agings within 30 days
of the close of each such month; (2) a cash burn rate report by calendar quarter within 30 days of the close of each such quarter; (3) monthly financial statements within 30 days of the close of each such month; (4) annual audited financial
statements within 90 days of the close of each fiscal year; and (5) quarterly accounts receivable and inventory audits. 
  
 C. Cooperation in Business Valuation. Borrower shall cooperate with Marshall Stevens or such other entity as shall be designated by Bank for the
purpose of providing a business valuation report pertaining to Borrower’s business. 
  
 D. No Transfers to Redwood. Borrower shall not make any payments or transfer any consideration to Redwood West Coast LLC or any of its affiliates without the express written permission of Bank. 
  
 E. No Stock Distributions. Borrower shall not pay any dividends or
make any distributions on account of common or preferred stock, except that Borrower may make distributions of common stock, which may not be redeemable, carry any rights to payment or otherwise provide for any type of distribution. 
  
 F. Required Notices. In addition to any covenants which exist in the
Loan Documents, Borrower shall immediately give written notice to Bank in reasonable detail of: 
  
 1. Any change in the name of Borrower, or any company or partnership in which Borrower is a principal or retains a majority interest.
Borrower shall give Bank thirty days prior written notification of any such change; 
  
 2. Any change in the state of Borrower’s incorporation, or relocation of Borrower’s chief executive office. Borrower shall give
Bank thirty days prior written notification of any such change or relocation; 
  

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 3. Any change in the present location of the Collateral; 
  
 4. The occurrence of any Event of Default (as defined in
Section IX. below), or any condition, event or act which, with the giving of notice or the passage of time or both, would constitute an Event of Default under this Forbearance Agreement; 
  
 5. Any termination or cancellation of any insurance policy which Borrower is required to maintain, or any
uninsured or partially uninsured loss through liability or property damage, or through fire, theft or other cause affecting the Collateral in excess of an aggregate sum of $100,000; and 
  
 6. Any litigation initiated by or against Borrower for an amount in excess of $50,000. 
  
 G. Further Documents. At any time and from time to time Borrower shall
execute and deliver such further instruments and take such further action as may reasonably be requested by Bank to effect the purposes of this Forbearance Agreement. 
  
 VI. CONDITIONS PRECEDENT. This Forbearance Agreement shall not be binding upon Bank unless and until each of the following conditions
precedent (“Conditions Precedent”) are met, or are waived in writing by Bank: 
  
 A. Borrower shall have timely complied with and performed all of the acts and/or conditions specifically identified as conditions precedent in this Forbearance Agreement; 
  
 B. Borrower shall have paid the extension and forbearance fee and the
documentation fee specified in Section IV.A above; 
  
 C. Bank
shall have received such other documents, instruments and agreements, and obtained all necessary internal approvals as Bank may require; and 
  
 D. Borrower shall have executed and delivered to Bank a corporate resolution authorizing the execution of this Forbearance Agreement, certificates of
incumbency, good standing, and such other matters as Bank in its sole and absolute discretion may require, including those attached as Exhibit “A.” 
  
 VII. RELEASE OF CLAIMS As additional consideration for Bank to enter into this Forbearance Agreement, Borrower, for itself, its executors, administrators, general
partners, limited partners, employees, representatives, shareholders, predecessors, subsidiaries and/or affiliates, parents, heirs, trustees, trustors, beneficiaries, successors-in-interest, transferees, assigns, officers, directors, managers,
servants, employees, insurers, underwriters, successors, attorneys, and agents, now and in the future, and all persons acting by, through, under or in concert with Borrower, hereby releases and discharges Bank, and Bank’s past, present and
future administrators, affiliates, agents, assigns, attorneys, directors, employees, executors, heirs, officers, parents, partners, predecessors, representatives, parents shareholders, subsidiaries and successors, and each of them; and each of their
respective administrators, affiliates, agents, assigns, attorneys, directors, employees, executors, heirs, officers, parents, partners, predecessors, representatives, shareholders, subsidiaries and successors, and each of them; and 
  

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 all persons acting by, through, under or in concert with one or more of them, from any liabilities or claims arising out
of, related to or in any way connected any acts or omissions of Bank relating in any way to the Loan Documents, this Forbearance Agreement (except for matters relating to the performance of this Forbearance Agreement following the date of its
execution) and Borrower’s financial relationship with Bank and its predecessors-in-interest from the beginning of time through and including the date of execution of this Forbearance Agreement (collectively, “Released Matters”).

  
 VIII. REPRESENTATIONS AND WAIVERS CONCERNING RELEASE PROVISIONS
Borrower understands and has been advised by its legal counsel of the provisions of Section 1542 of the California Civil Code, which provides as follows: 
  
 A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which
if known by him must have materially affected his settlement with the debtor. 
  
 Borrower understands and hereby waives the provisions of California Civil Code Section 1542 and declares that it realizes it may have damages Borrower presently knows nothing about and that, as to them, Bank has been released pursuant to
these release provisions. Borrower also declares that it understands that Bank would not agree to enter into this Forbearance Agreement if the release provisions set forth above did not cover damages and their results which may not yet have
manifested themselves or may be unknown to or not anticipated at the present time by Borrower. 
  
 Borrower represents and warrants that Borrower is the owner of the claims hereby compromised and that Borrower has not heretofore assigned or transferred, nor purported to assign or transfer, to any person or entity
(“Person”) any of the Released Matters. Borrower further agrees to indemnify and hold harmless Bank from all liabilities, claims, demands, damages, costs, expenses, and attorneys’ fees incurred by Bank as the result of any Person
asserting any such assignment or transfer of any rights or claims. 
  
 IX.
EVENTS OF DEFAULT. An “Event of Default” shall exist under this Forbearance Agreement if any one or more of the following events occur: 
  
 A. Borrower shall fail to perform any of the affirmative covenants set forth in Section V. of this Forbearance Agreement; 
  
 B. Borrower shall fail to timely pay Bank’s attorney’s fees and
costs as required in Section IV.B. of this Forbearance Agreement; 
  
 C. A default shall occur in the performance of any material term, condition, covenant or agreement contained in this Forbearance Agreement, or in connection with any other obligation owing by Borrower to Bank; or 
  
 D. A default other than the Existing Defaults, shall occur in the performance
of any material term, condition, covenant or agreement contained in the Loan Documents; provided, however, that failure to pay the principal payments specified in the Loan Documents shall not constitute an event of default if Borrower pays the
principal and interest payments required in Section V.A. of this Forbearance Agreement; 
  

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 E. Bank shall receive at any time following the Closing Date an official report from the Secretary of
State for the state under whose laws Borrower is organized, or any other applicable state, federal or local office identifying current security interests or liens of record filed in or against the Collateral, indicating that except for Permitted
Liens, Bank’s security interest in the Collateral is not prior to all other security interests or liens of record reflected in the report; 
  
 F. Any representation or warranty made under this Forbearance Agreement, or any certificate or statement furnished or made to Bank pursuant thereto, shall
prove to be untrue or misleading in any material respect as of the date on which such representation or warranty is made; or 
  
 G. Borrower shall take any action to the effect that, or make any claim that, the Loan Documents including this Forbearance Agreement are not legal,
valid, binding agreements enforceable against any party executing same; or attempt in any way to terminate or declare ineffective or inoperative the same; or shall in any way whatsoever cease to give or provide the respective liens, security
interests, rights, titles, interests, remedies, powers or privileges intended to be created thereby; or 
  
 H. Borrower shall do any of the following acts, or violate any other term or provision of this Forbearance Agreement: (i) apply for or consent to the
appointment of a receiver, trustee, custodian, intervenor or liquidator of all or a substantial part of its assets; (ii) file a voluntary petition in bankruptcy court or admit in writing that it is unable to pay its debts as they become due; (iii)
make a general assignment for the benefit of creditors; (iv) file a petition or answer seeking reorganization or take advantage of any bankruptcy or insolvency laws; (v) file an answer admitting any of the material allegations of, or consent to, or
default in answering a petition filed against it, in any bankruptcy, reorganization or insolvency proceeding; or (vi) take any action for the purpose of effecting any of the foregoing; or 
  
 I. A judgment(s) or order for entry of judgment shall be entered against Borrower in an aggregate amount exceeding the sum
of $50,000 which is not stayed pending appeal, bonded or otherwise covered by insurance; or 
  
 J. Any of the following acts or events occur: (i) an order for relief, judgment or decree shall be entered by any court of competent jurisdiction or other competent authority approving a petition seeking
reorganization of Borrower; (ii) an order shall be entered by any court of competent jurisdiction or other competent authority appointing a receiver, custodian, trustee, intervenor or liquidator for Borrower as to all or substantially all of its
assets, and such order, judgment or decree shall continue un-stayed and in effect for a period of sixty (60) days; or (iii) an involuntary petition seeking bankruptcy, reorganization or receivership shall be filed against Borrower which is not
dismissed within sixty (60) days of the filing thereof; or (iv) an event of default under any of Borrower’s obligations to the Bank; or 
  
 K. Any change should occur which, in the opinion of Bank, has resulted or could result in a Material Adverse Change. 
  

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 X. REMEDIES. If an Event of Default shall occur under this Forbearance Agreement, or any other agreement
referenced herein or executed in connection herewith, Bank may exercise, at its election, and without notice, demand, protest or presentment (which notice, demand, protest and presentment are expressly waived) in addition to all rights and remedies
granted to it in the Loan Documents, any or all of the following (failure to specify any remedy herein shall not limit Bank’s remedies, nor be deemed to create a conflict or contradiction with the Loan Documents): 
  
 A. Bank’s limited agreement to forbear under this Forbearance Agreement
shall immediately and automatically cease, and Bank may exercise all of its rights and remedies and may declare all amounts owed under the Loan Documents immediately due and payable; 
  
 B. Bank may proceed to enforce the Loan Documents and this Forbearance Agreement and exercise any or all of the rights and
remedies afforded to Bank by the California Commercial Code, the California Civil Code, the California Code of Civil Procedure or otherwise possessed by Bank; 
  

C. Bank may, to the fullest extent permitted by law: (1) sell its Collateral or any interest therein at public or private sale for cash or upon credit
and for immediate or future delivery and for such price and on such terms as Bank shall deem appropriate, and negotiate, endorse, assign, transfer and deliver to the purchaser or purchasers thereof (which may be Bank) the Collateral so sold, and
each purchaser at any sale shall hold the property sold absolutely free from any claim or right on the part of Borrower (and Borrower hereby waives, to the extent permitted by law, all rights of redemption, stay and/or appraisal which Borrower now
has or may at any time in the future have); and/or (2) obtain specific performance by Borrower of any covenant or undertaking of Borrower in the Loan Documents herein; and/or (3) without notice to Borrower, proceed by suit or suits at law or in
equity to foreclose its security interest and sell its Collateral or any portion thereof pursuant to judgment or decree of a court, courts or referee having competent jurisdiction; and/or (4) without notice to Borrower, exercise any of its rights
under, or foreclose its Collateral thereunder; 
  
 D. Without
regard to the adequacy of Bank’s Collateral, or to the solvency of Borrower, Bank may institute legal proceedings for the appointment of a receiver or receivers with respect to any or all of its Collateral pending foreclosure hereunder or for
the sale of any or all of its Collateral under the order of a court of competent jurisdiction or under other legal process; 
  
 E. Either personally, or by means of a court-appointed receiver, Bank may enter onto the premises where its Collateral is located and take possession of
all or any of its Collateral and exclude therefrom Borrower and all others claiming under Borrower, and perform any acts necessary or appropriate to care for, maintain, preserve and protect its Collateral. In the event Bank demands or attempts to
take possession of its Collateral in the exercise of any rights hereunder, Borrower promises and agrees to turn over promptly and to deliver complete possession thereof to Bank; 
  
 F. Without notice to or demand upon Borrower, Bank may make such payments and do such acts as Bank may deem necessary to
protect its security interest in its Collateral including, without limitation, paying, purchasing, contesting or compromising any encumbrance, charge or lien which is prior to or superior to the security interests granted in the Loan Documents and,
in exercising any such powers or authority, to pay all expenses incurred in connection therewith; and/or 
  

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 G. Enforce any of the rights and remedies available to it under the Loan Documents or this Forbearance
Agreement, or according to applicable law. 
  
 H. All rights and
remedies granted to Bank hereunder are cumulative, and Bank shall have the right to exercise any one or more of such rights and remedies alternatively, successively or concurrently as Bank may, in its sole and absolute discretion, deem advisable.

  
 XI. REVIVAL CLAUSE; SOLVENCY. If the incurring of any debt or the
payment of money or transfer of property made to Bank by or on behalf of Borrower should for any reason subsequently be declared to be “fraudulent” or “preferential” within the meaning of any state or federal law relating to
creditor’s rights, including, without limitation, fraudulent conveyances, preferences or otherwise voidable or recoverable payments of money or transfers of property, in whole or in part, for any reason (collectively, “Voidable
Transfers”) under the Bankruptcy Code or any other federal or state law, and Bank is required to repay or restore any such Voidable Transfer or the amount or any portion thereof, or upon the advice of its in-house counsel or outside counsel is
advised to do so, then, as to such Voidable Transfer or the amount repaid or restored (including all reasonable costs, expenses and attorneys’ fees of Bank related thereto), the liability of Borrower under the Loan Agreement, and all of
Bank’s rights and remedies under the Loan Agreement and this Forbearance Agreement shall automatically be revived, reinstated and restored and shall exist as though such Voidable Transfer had never been made to the extent of any harm to Bank.

  
 Borrower represents and warrants that the execution, delivery
and performance of this Forbearance Agreement will not (i) render Borrower insolvent as that term is defined below; (ii) leave Borrower with remaining assets which constitute unreasonably small capital given the nature of Borrower’s business;
or (iii) result in the incurrence of Debts (as defined below) beyond Borrower’s ability to pay them when and as they mature and become due and payable. For the purposes of this paragraph, “Insolvent” means that the present fair
salable value of assets is less than the amount that will be required to pay the probable liability on existing Debts as they become absolute and matured. For the purposes of this paragraph, “Debts” includes any legal liability for
indebtedness, whether matured or unmatured, liquidated or unliquidated, absolute, fixed or contingent. Borrower hereby acknowledges and warrants that it, in its corporate capacity that Borrower have derived or expect to derive a financial or other
benefit or advantage from this Forbearance Agreement. 
  

	XII.	REPRESENTATIONS AND WARRANTIES. Borrower hereby represents and warrants that: 

  
 A. Representations and Warranties. All Representations and Warranties contained in the Credit Agreement are true and
correct as of the date of this Forbearance Agreement. Except for the Existing Defaults identified in this Forbearance Agreement, no Event of Default has occurred and/or is continuing under any of the Loan Documents. 
  
 B. Further Representations. No representation or warranty of Borrower
contained in this Forbearance Agreement or in any documents provided to Bank in connection herewith 
  

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 (including any financial statements and/or financial information) misstates any material fact or omits to state a
material fact, the absence of which makes such representation, warranty or statement misleading. 
  
 XIII. AUTHORITY. Each party hereto represents and warrants to each other party that (i) it has authority to execute this Forbearance Agreement; (ii) the execution, delivery and performance of this Forbearance
Agreement does not require the consent or approval of any person, entity, governmental body, trust, trustor or other authority; (iii) this Forbearance Agreement is a valid, binding and legal obligation of the undersigned enforceable in accordance
with its terms, and does not contravene or conflict with any other agreement, indenture or undertaking to which any party hereto is a party; and (iv) each party hereto is the sole and lawful owner of all right, title, and interest in and to every
claim and other matter which the party purports to settle or compromise herein. 
  
 XIV. OTHER PROVISIONS Notices. All notices required to or permitted to be given to Bank under this Forbearance Agreement shall be addressed as follows: 
  

			
	 To:
	  	 Thomas G. Kinzel

	 	  	 Vice President – Western Division

	 	  	 Comerica Bank

	 	  	 Special Assets Group MC 4605

	 	  	 9920 S. La Cienega Blvd. Suite 623

	 	  	 Inglewood, California 90301

	 	  	 Telephone: 310-417-5760

	 	  	 Fax No. 310-338-6160

		
	 Copy:
	  	 Pillsbury Winthrop LLP

	 	  	 101 West Broadway, Suite 1800

	 	  	 San Diego, California 92101

	 	  	 Attn: Daniel C. Minteer, Esq.

	 	  	 Fax No. 858-509-4010

  
 All notices required
to or permitted to be given to Borrower under this Forbearance Agreement shall be addressed as follows: 
  

			
	 To:
	  	 Mr. Paul Hays

	 	  	 President and Chief Operating Officer

	 	  	 Synbiotics Corporation

	 	  	 11011 Via Frontera

	 	  	 San Diego, CA 92127

	 	  	 Telephone: 858-451-3771

	 	  	 Fax No. 858-451-5719

  
 The above addresses
may be changed effective upon receipt of a new address. Any notice required herein or permitted to be given shall be in writing and be personally served or sent by facsimile (upon confirmation of receipt) and overnight United States mail and shall
be deemed given when sent or, if mailed, when deposited in the United States mail so long as it is properly addressed. 
  

 - 11 - 

 B. Payment of Expenses. In the event any action (whether or not in a court proceeding) shall be
required to interpret, implement, modify, or enforce the terms and provisions of this Forbearance Agreement, or to declare rights under same, the prevailing party in such action shall recover from the losing party all of its fees and costs,
including, but not limited to, the reasonable attorneys’ fees and costs (if applicable) of Bank’s outside counsel. 
  
 C. Governing Law. This Forbearance Agreement shall be construed and interpreted in accordance with and shall be governed by the laws of the state
of California. The parties also hereby agree to submit to the jurisdiction of the California courts with respect to all matters relating to this Forbearance Agreement. 
  
 D. Successors, Assigns. This Forbearance Agreement shall be binding on and inure to the benefit of all of the parties
hereto, and upon the heirs, executors, administrators, legal representatives, successors and assigns of the parties hereto, and each of them. The terms and provisions of this Forbearance Agreement are for the exclusive benefit of Borrower and Bank,
and may not be transferred, assigned, pledged, set over or negotiated to any person or entity without the prior express written consent of Bank. Notwithstanding any other provisions contained herein, Bank may sell, transfer, negotiate, assign or
grant participations in all or a portion of its rights in any of the Loan Documents, in this Forbearance Agreement, to any person or entity without prior notice to Borrower, provided, however, that any such assignee shall be bound by the terms and
provisions of the Loan Documents and this Forbearance Agreement. 
  
 E. Complete Agreement of Parties. This Forbearance Agreement constitutes the entire agreement between Bank and Borrower arising out of, related to or connected with the subject matter of this Forbearance Agreement. Any supplements,
modifications, waivers or terminations of this Forbearance Agreement shall not be binding unless executed in writing by the parties to be bound thereby. No waiver of any provision of this Forbearance Agreement shall constitute a waiver of any other
provisions of this Forbearance Agreement (whether similar or not), nor shall such waiver constitute a continuing waiver unless otherwise expressly so provided. However, this Forbearance Agreement does not alter or amend any provision of any of the
Loan Documents except to the extent of the provisions expressly set forth herein. 
  
 F. Execution In Counterparts. This Forbearance Agreement may be executed in any number of counterparts each of which, when so executed and delivered, shall be deemed an original, and all of which together shall
constitute but one and the same agreement. 
  
 G. Contradictory
Terms/Severability. In the event that any term or provision of this Forbearance Agreement contradicts any term or provision of any other document, instrument or agreement between the parties including, but not limited to, any of the Loan
Documents, the terms of this Forbearance Agreement shall control. If any provision of this Forbearance Agreement shall be invalid, illegal or otherwise unenforceable, such provision shall be severable from all other provisions of this Forbearance
Agreement, and the validity, legality and enforceability of the remaining provisions of this Forbearance Agreement shall not be adversely affected or impaired, and shall thereby remain in full force and effect. 
  
 H. Headings. All headings contained herein are for convenience
purposes only, and shall not be considered when interpreting this Forbearance Agreement. 
  

 - 12 - 

 I. Continuing Cooperation. The parties hereto shall cooperate with each other in carrying out the
terms and intent of this Forbearance Agreement, and shall execute such other documents, instruments and agreements as are reasonably required to effectuate the terms and intent of this Forbearance Agreement. 
  
 J. Consultation With Counsel. Each party hereto acknowledges that (i)
it has been represented by counsel of its own choice at each stage in the negotiation of this Forbearance Agreement; (ii) it has relied on such counsel’s advice throughout all of the negotiations which preceded the execution of this Forbearance
Agreement, and in connection with the preparation and execution of this Forbearance Agreement; (iii) such counsel has read this Forbearance Agreement; (iv) such counsel has advised such party concerning the validity and effectiveness of this
Forbearance Agreement, and the transactions to be consummated in accordance therewith and/or each party has had the opportunity to consult with counsel and has voluntarily waived doing so; and (v) each party hereto is freely and voluntarily entering
into this Forbearance Agreement. 
  
 [Text continues next page] 
  

 - 13 - 

 XV. JURY TRIAL WAIVER. BORROWER AND BANK EACH ACKNOWLEDGE THAT THE RIGHT TO TRIAL BY JURY IS A CONSTITUTIONAL ONE,
BUT THAT IT MAY BE WAIVED. EACH OF THEM, AFTER CONSULTING OR HAVING HAD THE OPPORTUNITY TO CONSULT, WITH COUNSEL OF THEIR CHOICE, KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHT EITHER OF THEM MAY HAVE TO A TRIAL BY JURY IN ANY LITIGATION
BASED UPON OR ARISING OUT OF THIS FORBEARANCE AGREEMENT OR ANY OF THE LOAN DOCUMENTS, OR ANY OF THE TRANSACTIONS CONTEMPLATED BY THIS FORBEARANCE AGREEMENT OR ANY COURSE OF CONDUCT, DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN), OR ACTION OF ANY OF
THEM. THESE PROVISIONS SHALL NOT BE DEEMED TO HAVE BEEN MODIFIED IN ANY RESPECT OR RELINQUISHED BY BANK OR BORROWER, EXCEPT BY A WRITTEN INSTRUMENT EXECUTED BY EACH OF THEM. 
  
 AGREED AND ACCEPTED: 
  

					
	 COMERICA BANK
	 	 
			
	 By:
	 	 /s/ Thomas G. Kinzel

	 	 Dated: March 29, 2004

	 	 	 Thomas G. Kinzel
	 	 
	 	 	 Vice President – Western Division
	 	 
		
	 SYNBIOTICS CORPORATION,
	 	 
	 A California corporation
	 	 
			
	 By:
	 	 /s/ Keith A. Butler

	 	 Dated: 3/29/04

	 	 	Keith A. Butler	 	 
	 Title:
	 	 V.P. – Finance and CFO            
	 	 

  

 - 14 - 

 EXHIBIT A 
  

[Corporate Resolutions] 
  

 - 15 - 

 CORPORATE RESOLUTIONS TO BORROW 
  

			
	Borrower:	  	 Synbiotics Corporation

  
 I, the undersigned
officer of Synbiotics Corporation, Inc., (the “Corporation”), HEREBY CERTIFY that the Corporation is organized and existing under and by virtue of the laws of the State of California. 
  
 I FURTHER CERTIFY that attached hereto as Attachments 1 and 2 are true and
complete copies of the Articles of Incorporation, as amended, and the Bylaws of the Corporation, each of which is in full force and effect on the date hereof. 
  

I FURTHER CERTIFY that at a meeting of the Directors of the Corporation, duly called and held, at which a quorum was present and voting (or by other
duly authorized corporate action in lieu of a meeting), the following resolutions were adopted. 
  
 BE IT RESOLVED, that any one (1) of the following named officers, employees, or agents of this Corporation, whose actual signatures are shown below:

  

					
	 NAMES

	  	 POSITION

	 	 ACTUAL SIGNATURES

	Keith A. Butler	  	 V.P. Finance & CFO
	 	/s/ Keith A. Butler

  
 acting for and on behalf of this
Corporation and as its act and deed be, and they hereby are, authorized and empowered: 
  
 Borrow Money. To borrow from time to time from Comerica Bank (“Bank”), on such terms as may be agreed upon between the officers, employees, or agents of the Corporation and Bank, such sum or sums of
money as in then- judgment should be borrowed, without limitation. 
  
 Execute Forbearance Documents. To execute and deliver to Bank the
Forbearance Agreement dated as of March 29, 2004, and any other agreement entered into between Corporation and Bank in connection with the Loan Documents (as that term is defined in the Forbearance Agreement), all as amended or extended from time to
time, and also to execute and deliver to Bank one or more renewals, extensions, modifications, refinancings, consolidations, or substitutions for the Loan Documents, or any portion thereof. 
  
 Negotiate Items. To draw, endorse, and discount with Bank all drafts,
trade acceptances, promissory notes, or other evidences of indebtedness payable to or belonging to the Corporation or in which the Corporation may have an interest, and either to receive cash for the same or to cause such proceeds to be credited to
the account of the Corporation with Bank, or to cause such other disposition of the proceeds derived therefrom as they may deem advisable. 
  
 Further Acts. In the case of indebtedness due under the Loan Documents, to do and perform, such other acts and things, to pay any and all fees and
costs, and to execute and deliver such other documents and agreements as they may in their discretion deem reasonably necessary or proper in order to carry into effect the provisions of the Forbearance Agreement and these Resolutions. 
  
 BE IT FURTHER RESOLVED, that any and all acts authorized pursuant to these
resolutions and performed prior to the passage of these resolutions are hereby ratified and approved, than these; Resolutions shall 
  

 - 16 - 

 remain in full force and effect and Bank may rely on these Resolutions until written notice of their revocation shall
have been delivered to and received by Bank. Any such notice shall not affect any of the Corporation’s agreements or commitments in effect at the time notice is given. 
  
 I FURTHER CERTIFY that the officers, employees, and agents named above are duly elected, appointed, or employed by or for
the Corporation, as the case may be, and occupy the positions set forth opposite their respective names; that the foregoing Resolutions now stand of record on the books of the Corporation; and that the Resolutions are in full force and effect and
have not been modified or revoked in any manner whatsoever. 
  
 IN
WITNESS WHEREOF, I have hereunto set my hand on March 29, 2004 and attest that the signatures set opposite the names listed above are their genuine signatures. 
  

			
	 CERTIFIED AND ATTESTED BY:

		
	 X
	 	 /s/ Keith A. Butler

	 	 	Keith A. Butler

  

 - 17 -Form of Class A Preferred Stock Purchase Warrant of Symmetry Medical Inc.

 Exhibit 10.1 
  
 This Warrant and any shares acquired upon the exercise of this Warrant have not been registered under the Securities Act
of 1933, as amended, and may not be transferred, sold or otherwise disposed of except while such a registration is in effect or pursuant to an exemption from registration under said Act. 
  
 This Warrant and any shares acquired upon the exercise of this Warrant
are subject to certain restrictions on transfer and certain tag-along and other rights and obligations contained in that certain Stockholders Agreement dated as of October 18, 2000, as amended and modified from time to time. Any transferee of these
securities takes subject to the terms of such agreement, a copy of which is on file with the Company. 
  
 SYMMETRY MEDICAL, INC. 
  
 Form of Class A Preferred Stock Purchase Warrant 
  

			
	 No. P-        
	  	Warsaw, Indiana
	 	  	 

  
 Symmetry Medical,
Inc., a Delaware corporation (the “Company”), for value received, hereby certifies that                     
(“                    ”), or registered assigns, is entitled to purchase from the Company 1,961.261 duly authorized, validly issued,
fully paid and nonassessable shares of Class A Preferred Stock, par value $0.01 per share (the “Preferred Stock”), of the Company at the purchase price per share of $0.01 (the “Initial Warrant Price”), at any time
or from time to time prior to 5:00 P.M., Warsaw, Indiana time, on June 11, 2013 (the “Expiration Date”), all subject to the terms, conditions and adjustments set forth below in this Warrant. 
  
 This Warrant is one of the Class A Preferred Stock Purchase Warrants (the
“Preferred Warrants”, such term to include any such warrants issued in substitution therefor) originally issued in connection with the execution and delivery of the Senior Subordinated Loan Agreement dated as of June 11, 2003 (as
from time to time in effect, the “Loan Agreement”) among the Company and the Lenders named therein (the “Purchasers”). This Warrant and the other Preferred Warrants issued on the date hereof in connection with the
Loan Agreement (collectively, the “Warrants”) evidence rights to purchase an aggregate of 3,530.269 shares of Preferred Stock, subject to adjustment as provided herein. Certain capitalized terms used in this Warrant are defined in
Section 13 hereof. 
  
 1. EXERCISE OR CONVERSION
OF WARRANT. 
  
 1.1. Manner of Exercise or Conversion;
Payment. 
  
 1.1.1. Exercise. Subject
to Section 1.5, this Warrant may be exercised by the holder hereof, in whole or in part, during normal business hours on any Business Day on 

 or prior to the Expiration Date, by surrender of this Warrant to the Company at its office maintained
pursuant to Section 12.2(a) hereof, accompanied by a subscription in substantially the form attached to this Warrant (or a reasonable facsimile thereof) duly executed by such holder and accompanied by payment, in cash or by check payable to the
order of the Company (or by any combination of such methods), in the amount obtained by multiplying (a) the number of shares of Preferred Stock (without giving effect to any adjustment thereof) designated in such subscription by (b) the Initial
Warrant Price, and such holder shall thereupon be entitled to receive the number of duly authorized, validly issued, fully paid and nonassessable shares of Preferred Stock (or Other Securities) determined as provided in Sections 2 through 4 hereof.

  
 1.1.2. Conversion. Subject to Section
1.5, this Warrant may be converted by the holder hereof, in whole or in part, into shares of Preferred Stock, during normal business hours on any Business Day on or prior to the Expiration Date, by surrender of this Warrant to the Company at its
office maintained pursuant to Section 12.2(a) hereof, accompanied by a conversion notice in substantially the form attached to this Warrant (or a reasonable facsimile thereof) duly executed by such holder, and such holder shall thereupon be entitled
to receive a number of duly authorized, validly issued, fully paid and nonassessable shares of Preferred Stock (or Other Securities) equal to: 
  
 (i) an amount equal to: 
  

	 	(a)	an amount equal to (x) the number of shares of Preferred Stock (or Other Securities) determined as provided in Sections 2 through 4 hereof which such holder would be entitled to
receive upon exercise of this Warrant for the number of shares of Preferred Stock designated in such conversion notice multiplied by (y) the Market Price of each such share of Preferred Stock (or such Other Securities) so receivable upon such
exercise 

  

	 	    	minus 

  

	 	(b)	an amount equal to (x) the number of shares of Preferred Stock (without giving effect to any adjustment thereof) designated in such conversion notice multiplied by (y) the
Initial Warrant Price 

  

	 	divided	by 

  
 (ii) such Market Price of each such share of Preferred Stock (or Other Securities). 
  
 For all purposes of this Warrant (other than this Section 1.1), any
reference herein to the exercise of this Warrant shall be deemed to include a reference to the conversion of this Warrant into Preferred Stock (or other Securities) in accordance with the terms of this Section 1.1.2. 
  

 -2- 

 1.2. When Exercise Effective. Each exercise of this Warrant shall be deemed to have been effected
immediately prior to the close of business on the Business Day on which this Warrant shall have been surrendered to the Company as provided in Section 1.1 hereof, and at such time the Person or Persons in whose name or names any certificate or
certificates for shares of Preferred Stock (or Other Securities) shall be issuable upon such exercise as provided in Section 1.3 hereof shall be deemed to have become the holder or holders of record thereof. 
  
 1.3. Delivery of Stock Certificates, etc. As soon as practicable after
each exercise of this Warrant, in whole or in part, and in any event within ten days thereafter, the Company at its expense (including the payment by it of any applicable issue taxes) will cause to be issued in the name of and delivered to the
holder hereof or, subject to Section 9 hereof, as such holder (upon payment by such holder of any applicable transfer taxes) may direct: 
  
 (a) a certificate or certificates for the number of duly authorized, validly issued, fully paid and nonassessable shares of Preferred
Stock (or Other Securities) to which such holder shall be entitled upon such exercise including any fractional share; and 
  
 (b) in case such exercise is in part only, a new Warrant or Warrants of like tenor, dated the date hereof and calling in the aggregate on
the face or faces thereof for the number of shares of Preferred Stock equal (without giving effect to any adjustment thereof) to the number of such shares called for on the face of this Warrant minus the number of such shares designated by the
holder upon such exercise as provided in Section 1.1 hereof. 
  
 1.4. Company to Reaffirm Obligations. The Company will, at the time of each exercise of this Warrant, upon the request of the holder hereof, acknowledge in writing its continuing obligation to afford to such holder all rights to
which such holder shall continue to be entitled after such exercise in accordance with the terms of this Warrant; provided, however, that if the holder of this Warrant shall fail to make any such request, such failure shall not affect
the continuing obligation of the Company to afford such rights to such holder. 
  
 1.5. Inclusion of Dividends on Preferred Stock. The Company hereby covenants and agrees that the shares of Preferred Stock issued upon conversion or exercise of this Warrant pursuant to this Section 1 shall
represent a right to receive all dividends that would have accrued on such shares of Preferred Stock from the date of this Warrant through the date of such exercise had such shares of Preferred Stock been issued on the date of this Warrant, and such
shares of Preferred Stock shall accrue dividends after the date of such exercise in accordance with the Company’s certificate of incorporation, and the Company will pay, in cash, to the holder of this Warrant all such dividends and accrued
dividends at such time as such dividends are declared and paid to holders of Preferred Stock. 
  
 2. ADJUSTMENT OF PREFERRED STOCK ISSUABLE UPON EXERCISE. 
  
 2.1. General; Number of Shares; Warrant Price. The number of shares of Preferred Stock which the holder of this
Warrant shall be entitled to receive upon each exercise hereof 
  

 -3- 

 shall be determined by multiplying the number of shares of Preferred Stock which would otherwise (but for the provisions
of this Section 2) be issuable upon such exercise, as designated by the holder hereof pursuant to Section 1.1 hereof, by the fraction of which (a) the numerator is the Initial Warrant Price and (b) the denominator is the Warrant Price in effect on
the date of such exercise. The “Warrant Price” shall initially be the Initial Warrant Price, shall be adjusted and readjusted from time to time as provided in this Section 2 and, as so adjusted or readjusted, shall remain in effect until a
further adjustment or readjustment thereof is required by this Section 2. 
  
 2.2. Adjustment of Warrant Price. 
  
 2.2.1. Issuance of Additional Shares of Preferred Stock. In case the Company at any time or from time to time after the date hereof shall issue or sell Additional Shares of Preferred Stock (including Additional
Shares of Preferred Stock deemed to be issued pursuant to Section 2.3 or 2.4 hereof) without consideration or for a consideration per share less than the greater of the Market Price or the Warrant Price in effect immediately prior to such issue or
sale, then, and in each such case, subject to Section 2.7 hereof, such Warrant Price shall be reduced, concurrently with such issue or sale, to a price determined by multiplying such Warrant Price by a fraction: 
  
 (a) the numerator of which shall be (i) the number of shares
of Preferred Stock outstanding immediately prior to such issue or sale plus (ii) the number of shares of Preferred Stock which the aggregate consideration received by the Company for the total number of such Additional Shares of Preferred Stock so
issued or sold would purchase at the greater of such Market Price and such Warrant Price; and 
  
 (b) the denominator of which shall be the number of shares of Preferred Stock outstanding immediately after such issue or sale.

  
 2.2.2. Dividends and Distributions. In
case the Company at any time or from time to time after the date hereof shall declare, order, pay or make a dividend or other distribution (including without limitation any distribution of cash, other or additional stock or other securities or
property or Options, by way of dividend or spin-off, reclassification, recapitalization or similar corporate rearrangement or otherwise), or such dividend shall otherwise accrue (other than the stated dividends on the Preferred Stock set forth in
the Company’s certificate of incorporation), on the Preferred Stock, other than a dividend payable in Additional Shares of Preferred Stock, then, and in each such case, subject to Section 2.7 hereof, the Warrant Price in effect immediately
prior to the close of business on the record date fixed for the determination of holders of any class of securities entitled to receive such dividend or distribution shall be reduced, effective as of the close of business on such record date, to a
price determined by multiplying such Warrant Price by a fraction: 
  
 (x) the numerator of which shall be the Market Price in effect on such record date or, if the Preferred Stock trades on an ex-dividend basis, on the date prior to the commencement of ex-dividend trading, less the
amount of such dividend or distribution (as determined in good faith by the Board of Directors of the Company) applicable to one share of Preferred Stock; and 
  

 -4- 

 (y) the denominator of which shall be such Market Price. 
  
 2.3. Treatment of Options and Convertible Securities. In case the
Company at any time or from time to time after the date hereof shall issue, sell, grant or assume, or shall fix a record date for the determination of holders of any class of securities entitled to receive, any Options or Convertible Securities,
then, and in each such case, the maximum number of Additional Shares of Preferred Stock (as set forth in the instrument relating thereto, without regard to any provisions contained therein for a subsequent adjustment of such number the purpose of
which is to protect against dilution) at any time issuable upon the exercise of such Options or, in the case of Convertible Securities and Options therefor, the conversion or exchange of such Convertible Securities, shall be deemed to be Additional
Shares of Preferred Stock issued as of the time of such issue, sale, grant or assumption or, in case such a record date shall have been fixed, as of the close of business on such record date (or, if the Preferred Stock trades on an ex-dividend
basis, on the date prior to the commencement of ex-dividend trading); provided, however, that such Additional Shares of Preferred Stock shall not be deemed to have been issued unless the consideration per share (determined pursuant to
Section 2.5 hereof) of such shares would be less than the greater of the Market Price or the Warrant Price in effect on the date of and immediately prior to such issue, sale, grant or assumption or immediately prior to the close of business on such
record date (or, if the Preferred Stock trades on an ex-dividend basis, on the date prior to the commencement of ex-dividend trading), as the case may be; and provided, further, that in any such case in which Additional Shares of
Preferred Stock are deemed to be issued: 
  
 (a)
no further adjustment of the Warrant Price shall be made upon the exercise of such Options or the conversion or exchange of such Convertible Securities and the consequent issue or sale of Convertible Securities or shares of Preferred Stock;

  
 (b) if such Options or Convertible Securities
by their terms provide, with the passage of time or otherwise, for any increase in the consideration payable to the Company, or decrease in the number of Additional Shares of Preferred Stock issuable, upon the exercise, conversion or exchange
thereof (by change of rate or otherwise), the Warrant Price computed upon the original issue, sale, grant or assumption thereof (or upon the occurrence of the record date, or date prior to the commencement of ex-dividend trading, as the case may be,
with respect thereto), and any subsequent adjustments based thereon, shall, upon any such increase or decrease becoming effective, be recomputed to reflect such increase or decrease insofar as it affects such Options, or the rights of conversion or
exchange under such Convertible Securities, which are outstanding at such time; 
  
 (c) upon the expiration (or purchase by the Company and cancellation or retirement) of any such Options which shall not have been
exercised, or the expiration of any rights of conversion or exchange under any such Convertible Securities which (or purchase by the Company and cancellation or retirement of any such Convertible Securities the rights of conversion or exchange under
which) shall not have been exercised, the Warrant Price computed upon the original issue, sale, grant or assumption 
  

 -5- 

 thereof (or upon the occurrence of the record date, or date prior to the commencement of ex-dividend
trading, as the case may be, with respect thereto), and any subsequent adjustments based thereon, shall, upon (and effective as of) such expiration (or such cancellation or retirement, as the case may be), be recomputed as if: 
  
 (i) in the case of Options or Convertible Securities, the
only Additional Shares of Preferred Stock issued or sold were the Additional Shares of Preferred Stock, if any, actually issued or sold upon the exercise of such Options or the conversion or exchange of such Convertible Securities and the
consideration received therefor was the consideration actually received by the Company for the issue, sale, grant or assumption of all such Options, whether or not exercised, plus the consideration actually received by the Company upon such
exercise, or for the issue or sale of all such Convertible Securities which were actually converted or exchanged, plus the additional consideration, if any, actually received by the Company upon such conversion or exchange, and 
  
 (ii) in the case of Options for Convertible Securities, only
the Convertible Securities, if any, actually issued or sold upon the exercise of such Options were issued at the time of the issue, sale, grant or assumption of such Options, and the consideration received by the Company for the Additional Shares of
Preferred Stock deemed to have then been issued was the consideration actually received by the Company for the issue, sale, grant or assumption of all such Options, whether or not exercised, plus the consideration deemed to have been received by the
Company (pursuant to Section 2.5 hereof) upon the issue or sale of such Convertible Securities with respect to which such Options were actually exercised; and 
  

(d) no readjustment pursuant to clause (b) or (c) above (either individually or cumulatively together with all prior readjustments as
made in respect of such Options or Convertible Securities) shall have the effect of increasing the Warrant Price by a proportion (relative to the Warrant Price in effect immediately prior to such readjustment) in excess of the inverse of the
aggregate proportional adjustment thereof made in respect of the issue, sale, grant or assumption of such Options or Convertible Securities. 
  
 If the consideration provided for in any Option or the additional consideration, if any, payable upon the conversion or exchange of any Convertible Security shall be
reduced, or the rate at which any Option is exercisable or any Convertible Security is convertible into or exchangeable for shares of Preferred Stock shall be increased, at any time under or by reason of provisions with respect thereto designed to
protect against dilution, then, effective concurrently with each such change, the Warrant Price then in effect shall first be adjusted to eliminate the effects (if any) of the issuance (or deemed issuance) of such Option or Convertible Security on
the Warrant Price and then readjusted as if such Option or Convertible Security had been issued on the date of such change with the terms in effect after such change, but only if as a result of such adjustment the Warrant Price then in effect
hereunder is thereby reduced. 
  
 2.4. Treatment of Stock
Dividends, Stock Splits, etc. In case the Company at any time or from time to time after the date hereof shall declare or pay any dividend on the Preferred Stock 
  

 -6- 

 payable in Preferred Stock, or shall effect a subdivision of the outstanding shares of Preferred Stock into a greater
number of shares of Preferred Stock (by reclassification or otherwise than by payment of a dividend in Preferred Stock), then, and in each such case, Additional Shares of Preferred Stock shall be deemed to have been issued (a) in the case of any
such dividend, immediately after the close of business on the record date for the determination of holders of any class of securities entitled to receive such dividend, or (b) in the case of any such subdivision, at the close of business on the day
immediately prior to the day upon which such corporate action becomes effective. 
  
 2.5. Computation of Consideration. For the purposes of this Section 2: 
  
 (a) the consideration for the issue or sale of any Additional Shares of Preferred Stock shall, irrespective of the accounting treatment of
such consideration: 
  
 (i) insofar as it
consists of cash, be computed at the amount of cash actually received by the Company net of any expenses paid or incurred by the Company or any commissions or compensations paid or concessions or discounts allowed to underwriters, dealers or others
performing similar services in connection with such issue or sale; 
  
 (ii) insofar as it consists of property (including securities) other than cash actually received by the Company, be computed at the fair value thereof at the time of such issue or sale, as determined in good faith by
the Board of Directors of the Company; 
  
 (iii)
insofar as it consists neither of cash nor of other property, be computed as having no value; and 
  
 (iv) in case Additional Shares of Preferred Stock are issued or sold together with other stock or securities or other assets of the
Company for a consideration which covers both, be the portion of such consideration so received, computed as provided in clauses (i), (ii) and (iii) above, allocable to such Additional Shares of Preferred Stock, all as determined in good faith by
the Board of Directors of the Company; 
  
 (b)
Additional Shares of Preferred Stock deemed to have been issued pursuant to Section 2.3 hereof shall be deemed to have been issued for a consideration per share determined by dividing: 
  
 (i) the total amount of cash and other property, if any, received and receivable by the Company as direct
consideration for the issue, sale, grant or assumption of the Options or Convertible Securities in question, plus the minimum aggregate amount of additional consideration (as set forth in the instruments relating thereto, without regard to any
provision contained therein for a subsequent adjustment of such consideration the purpose of which is to protect against dilution) payable to the Company upon the exercise in full of such Options or the conversion or exchange of such Convertible
Securities or, in the 
  

 -7- 

 case of Options for Convertible Securities, the exercise of such Options for Convertible Securities and
the conversion or exchange of such Convertible Securities, in each case computing such consideration as provided in the foregoing clause (a), 
  
 by 
  
 (ii) the maximum number of shares of Preferred Stock (as set forth in the instruments relating thereto, without regard to any provision
contained therein for a subsequent adjustment of such number the purpose of which is to protect against dilution) issuable upon the exercise of such Options or the conversion or exchange of such Convertible Securities; and 
  
 (c) Additional Shares of Preferred Stock deemed to have been
issued pursuant to Section 2.4 hereof shall be deemed to have been issued for no consideration. 
  
 2.6. Adjustments for Combinations, etc. In case the outstanding shares of Preferred Stock shall be combined or consolidated, by reclassification or
otherwise, into a lesser number of shares of Preferred Stock, the Warrant Price in effect immediately prior to such combination or consolidation shall, concurrently with the effectiveness of such combination or consolidation, be proportionately
increased. 
  
 2.7. Minimum Adjustment of Warrant Price. If
the amount of any adjustment of the Warrant Price required pursuant to this Section 2 would be less than one-tenth (1/10) of one percent (1%) of the Warrant Price in effect at the time such adjustment is otherwise so required to be made, such amount
shall be carried forward and adjustment with respect thereto made at the time of and together with any subsequent adjustment which, together with such amount and any other amount or amounts so carried forward, shall aggregate at least one tenth
(1/10) of one percent (1%) of such Warrant Price. 
  
 2.8.
Shares Deemed Outstanding. For all purposes of the computations to be made pursuant to this Section 2, (i) there shall be deemed to be outstanding all shares of Preferred Stock issuable pursuant to the exercise of Options outstanding on June
11, 2003 and the conversion of Convertible Securities outstanding on June 11, 2003, including without limitation the Preferred Warrants, (ii) immediately after any Additional Shares of Preferred Stock are deemed to have been issued pursuant to
Section 2.3 or 2.4 hereof, such Additional Shares shall be deemed to be outstanding, (iii) treasury shares shall not be deemed to be outstanding and (iv) no adjustment shall be made in the Warrant Price upon the issuance of shares of Preferred Stock
pursuant to the exercise of Options or the conversion of the Preferred Warrants so outstanding, but this Section 2.8 shall not prevent other adjustments in the Warrant Price arising by virtue of such outstanding Options or Convertible Securities
pursuant to the provisions of Section 2.3 hereof; provided, however, that, for purposes of calculating adjustments to the Warrant Price, there shall be deemed to be outstanding immediately after giving effect to any issuance of shares
of Preferred Stock, Options or Convertible Securities all shares of Preferred Stock issuable upon the exercise of Options and conversion of Convertible Securities then outstanding (including without limitation the Warrants) after giving effect to
antidilution provisions contained in all such outstanding Options and Convertible Securities which cause an adjustment in the number of 
  

 -8- 

 shares of Preferred Stock so issuable, either by virtue of such issuance of shares of Preferred Stock, Options or
Convertible Securities or by virtue of the operation of such antidilution provisions. 
  
 3. CONSOLIDATION, MERGER, ETC. 
  
 3.1. Adjustments for Consolidation, Merger, Sale of Assets, Reorganization, etc. In case the Company after the date hereof (a) shall consolidate
with or merge into any other Person and shall not be the continuing or surviving corporation of such consolidation or merger, or (b) shall permit any other Person to consolidate with or merge into the Company and the Company shall be the continuing
or surviving Person but, in connection with such consolidation or merger, the Preferred Stock or Other Securities shall be changed into or exchanged for stock or other securities of any other Person or cash or any other property, or (c) shall
transfer all or substantially all of its properties or assets to any other Person, or (d) shall effect a capital reorganization or reclassification of the Preferred Stock or Other Securities (other than a capital reorganization or reclassification
to the extent that such capital reorganization or reclassification results in the issue of Additional Shares of Preferred Stock for which adjustment in the Warrant Price is provided in Section 2.2.1 or 2.2.2 hereof), then, and in the case of each
such transaction, proper provision shall be made so that, upon the basis and the terms and in the manner provided in this Warrant, the holder of this Warrant, upon the exercise hereof at any time after the consummation of such transaction, shall be
entitled to receive (at the aggregate Warrant Price in effect at the time of such consummation for all Preferred Stock or Other Securities issuable upon such exercise immediately prior to such consummation), in lieu of the Preferred Stock or Other
Securities issuable upon such exercise prior to such consummation, the greatest amount of securities, cash or other property to which such holder would actually have been entitled as a shareholder upon such consummation if such holder had exercised
the rights represented by this Warrant immediately prior thereto, subject to adjustments (subsequent to such consummation) as nearly equivalent as possible to the adjustments provided for in Sections 2, 3 and 4 hereof; provided,
however, that if a purchase, tender or exchange offer shall have been made to and accepted by the holders of more than 50% of the outstanding shares of Preferred Stock, and if the holder of such Warrants so designates in a notice given to the
Company on or before the date immediately preceding the date of the consummation of such transaction, the holder of such Warrants shall be entitled to receive the greatest amount of securities, cash or other property to which such holder would
actually have been entitled as a shareholder if the holder of such Warrants had exercised such Warrants prior to the expiration of such purchase, tender or exchange offer and accepted such offer, subject to adjustments (from and after the
consummation of such purchase, tender or exchange offer) as nearly equivalent as possible to the adjustments provided for in Sections 2, 3 and 4 hereof. 
  
 3.2. Assumption of Obligations. Notwithstanding anything contained in the Warrants or in the Loan Agreement to the contrary, the Company will not
effect any of the transactions described in clauses (a) through (d) of Section 3.1 hereof unless, prior to the consummation thereof, each person (other than the Company) which may be required to deliver any stock, securities, cash or property upon
the exercise of this Warrant as provided herein shall assume, by written instrument delivered to, and reasonably satisfactory to, the holder of this Warrant, (a) the obligations of the Company under this Warrant (and if the Company shall survive the
consummation of such transaction, such assumption shall be in addition to, and shall not release 
  

 -9- 

 the Company from, any continuing obligations of the Company under this Warrant) and (b) the obligation to deliver to such
holder such shares of stock, securities, cash or property as, in accordance with the foregoing provisions of this Section 3, such holder may be entitled to receive, and such Person shall have similarly delivered to such holder an opinion of counsel
for such Person, which counsel shall be reasonably satisfactory to such holder, stating that this Warrant shall thereafter continue in full force and effect and the terms hereof (including without limitation all of the provisions of this Section 3)
shall be applicable to the stock, securities, cash or property which such Person may be required to deliver upon any exercise of this Warrant or the exercise of any rights pursuant hereto. Nothing in this Section 3 shall be deemed to authorize the
Company to enter into any transaction not otherwise permitted by the Loan Agreement. 
  
 4. OTHER DILUTIVE EVENTS. In case any event shall occur as to which the provisions of Section 2 or 3 hereof are not strictly applicable but the failure to make any adjustment would not, in the reasonable opinion of the holders of Warrants
exercisable for a majority of the Preferred Stock issuable upon exercise of all of the Warrants (the “Majority Holders”), fairly protect the purchase rights represented by this Warrant in accordance with the essential intent and
principles of such Sections, then, in each such case, at the request of any holder, the Company shall appoint a firm of independent investment bankers of recognized national standing (which shall be completely independent of the Company and shall be
reasonably satisfactory to the Majority Holders), which shall give their opinion upon the adjustment, if any, on a basis consistent with the essential intent and principles established in Sections 2 and 3 hereof, necessary to preserve, without
dilution, the purchase rights represented by this Warrant. Upon receipt of such opinion, the Company will promptly mail a copy thereof to the holder of this Warrant and shall make the adjustments described therein. 
  
 5. NO DILUTION OR IMPAIRMENT. The Company will not, by amendment of its certificate of
incorporation or through any consolidation, merger, reorganization, transfer of assets, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant,
but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such action as may be necessary or appropriate in order to protect the rights of the holder of this Warrant against dilution or other
impairment. Without limiting the generality of the foregoing, the Company (a) will not permit the par value of any shares of stock receivable upon the exercise of this Warrant to exceed the amount payable therefor upon such exercise, (b) will take
all such action as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable shares of stock on the exercise of the Warrants from time to time outstanding, (c) will not take any action which
results in any adjustment of the Warrant Price if the total number of shares of Preferred Stock (or Other Securities) issuable after the action upon the exercise of all of the Warrants would exceed the total number of shares of Preferred Stock (or
Other Securities) then authorized by the Company’s certificate of incorporation and available for the purpose of issue upon such exercise, and (d) will not issue any capital stock of any class which is preferred as to dividends or as to the
distribution of assets upon voluntary or involuntary dissolution, liquidation or winding-up, unless the rights of the holders thereof shall be limited to a fixed sum or percentage of par value or a sum determined by reference to a formula based on a
published index of interest rates, an interest rate publicly announced by a financial institution or a similar indicator of interest rates in respect of participation in dividends and to a fixed sum or percentage of par value in any such
distribution of assets. 
  

 -10- 

 6. COMPANY’S REPORT AS TO ADJUSTMENTS. In each case of any adjustment or readjustment in the shares of Preferred
Stock (or Other Securities) issuable upon the exercise of this Warrant, the Company at its expense will promptly compute such adjustment or readjustment in accordance with the terms of this Warrant and prepare a report setting forth such adjustment
or readjustment and showing in reasonable detail the method of calculation thereof and the facts upon which such adjustment or readjustment is based, including a statement of (a) the consideration received or to be received by the Company for any
Additional Shares of Preferred Stock issued or sold or deemed to have been issued, (b) the number of shares of Preferred Stock outstanding or deemed to be outstanding, and (c) the Warrant Price in effect immediately prior to such issue or sale and
as adjusted and readjusted (if required by Section 2 hereof) on account thereof. The Company will forthwith mail a copy of each such report to each holder of a Warrant and will, upon the written request at any time of any holder of a Warrant,
furnish to such holder a like report setting forth the Warrant Price at the time in effect and showing in reasonable detail how it was calculated. The Company will also keep copies of all such reports at its office maintained pursuant to Section
12.2(a) hereof and will cause the same to be available for inspection at such office during normal business hours by any holder of a Warrant or any prospective purchaser of a Warrant designated by the holder thereof. 
  
 7. NOTICES OF CORPORATE ACTION. In the event of 

 
 (a) any taking by the Company of a record of the holders
of any class of securities for the purpose of determining the holders thereof who are entitled to receive any dividend or other distribution, or any right to subscribe for, purchase or otherwise acquire any shares of stock of any class or any other
securities or property, or to receive any other right, or 
  
 (b) any capital reorganization of the Company, any reclassification or recapitalization of the capital stock of the Company or any consolidation or merger involving the Company and any other Person or any transfer of
all or substantially all the assets of the Company to any other Person, or 
  
 (c) any voluntary or involuntary dissolution, liquidation or winding-up of the Company, 
  
 (d) any issuance of any Preferred Stock, Convertible Security or Option by the Company, 
  
 the Company will mail to each holder of a Warrant a notice specifying (i) the date or
expected date on which any such record is to be taken for the purpose of such dividend, distribution or right, and the amount and character of such dividend, distribution or right, (ii) the date or expected date on which any such reorganization,
reclassification, recapitalization, consolidation, merger, transfer, dissolution, liquidation or winding-up is to take place, the time, if any such time is to be fixed, as of which the holders of record of Preferred Stock (or Other Securities) shall
be entitled to exchange their shares of Preferred Stock (or Other Securities) for the securities or 
  

 -11- 

 other property deliverable upon such reorganization, reclassification, recapitalization, consolidation, merger, transfer,
dissolution, liquidation or winding-up and a description in reasonable detail of the transaction and (iii) the date of such issuance, together with a description of the security so issued and the consideration received by the Company therefor. Such
notice shall be mailed at least 45 days prior to the date therein specified. 
  
 8. REGISTRATION OF WARRANTS AND PREFERRED STOCK. If any shares of Preferred Stock required to be reserved for purposes of exercise of this Warrant require registration with or approval of any governmental authority under any federal or
state law (other than the Securities Act) before such shares may be issued upon exercise, the Company will, at its expense and as expeditiously as possible, use its best efforts to cause such shares to be duly registered or approved, as the case may
be. At any such time as the Preferred Stock is listed on any national securities exchange, the Company will, at its expense, obtain promptly and maintain the approval for listing on each such exchange, upon official notice of issuance, the shares of
Preferred Stock issuable upon exercise of the then outstanding Warrants and maintain the listing of such shares after their issuance; and the Company will also list on such national securities exchange, will register under the Exchange Act and will
maintain such listing of, any Other Securities that at any time are issuable upon exercise of the Warrants, if and at the time that any securities of the same class shall be listed on such national securities exchange by the Company. 
  
 9. RESTRICTIONS ON TRANSFER. 
  
 9.1. Restrictive Legends. Except as otherwise permitted by this
Section 9, each certificate for Preferred Stock (or Other Securities) issued upon the exercise of any Warrant, each certificate issued upon the direct or indirect transfer of any such Preferred Stock (or Other Securities), all Warrants originally
issued pursuant to the Loan Agreement and each Warrant issued upon direct or indirect transfer or in substitution for any Warrant pursuant to Section 12 hereof shall be deemed to be Stockholder Shares (as such term is defined in the Stockholders
Agreement) and shall be transferable only upon satisfaction of the conditions specified in Section 2 of the Stockholders Agreement or Section 2 of the Joinder, as applicable, and in this Section 9, and shall be stamped or otherwise imprinted with
legends in substantially the form required by Section 4 of the Stockholders Agreement. 
  
 9.2. Notice of Proposed Transfer; Opinion of Counsel. Prior to any transfer of any Stockholder Shares which are not registered under an effective registration statement under the Securities Act, the holder
thereof will give written notice to the Company of such holder’s intention to effect such transfer and to comply in all other respects with this Section 9.2. Each such notice (a) shall describe the manner and circumstances of the proposed
transfer, and (b) shall designate counsel for the holder giving such notice, which counsel shall be reasonably acceptable to the Company. The holder giving such notice will submit a copy thereof to the counsel designated in such notice. The
following provisions shall then apply: 
  
 (i) If
in the opinion of such counsel the proposed transfer may be effected without registration of such Stockholder Shares under the Securities Act, such holder shall thereupon be entitled to transfer such Stockholder Shares in accordance with the terms
of the notice delivered by such holder to the Company. Each certificate representing such Stockholder Shares issued upon or in 
  

 -12- 

 connection with such transfer shall bear the restrictive legends required by Section 9.1 hereof, unless
the related restrictions on transfer provided for in the Stockholders Agreement shall have ceased and terminated as to such Stockholder Shares pursuant to Section 9.3 hereof. 
  
 (ii) If in the opinion of such counsel the proposed transfer may not legally be effected without
registration of such Stockholder Shares under the Securities Act (such opinion to state the basis of the legal conclusions reached therein), thereafter such holder shall not be entitled to transfer such Stockholder Shares until either (x) receipt by
the Company of a further notice from such holder pursuant to the foregoing provisions of this Section 9.2 and fulfillment of the provisions of clause (i) above or (y) such Stockholder Shares have been effectively registered under the Securities Act.

  
 The Company will pay the reasonable fees and disbursements of counsel for any
holder of Stockholder Shares and of counsel for the Company in connection with all opinions rendered by them pursuant to this Section 9.2 and pursuant to Section 9.3 hereof. 
  
 Notwithstanding any other provision of this Section 9 or of the Stockholders Agreement, no opinion of counsel shall be
necessary for a transfer of Stockholder Shares by the holder thereof to a subsidiary, shareholder, partner or other affiliate or an Approved Fund of such holder, if the transferee agrees in writing to be subject to the terms hereof to the same
extent as if such transferee were the original Purchaser hereof. 
  
 9.3. Termination of Restrictions. The restrictions imposed by this Section 9 upon the transferability of Stockholder Shares shall cease and terminate as to any particular Stockholder Shares (a) when such Stockholder Shares shall have
been effectively registered under the Securities Act, or (b) when, in the opinions of both counsel for the holder thereof and counsel for the Company, such restrictions are no longer required in order to insure compliance with the Securities Act or
Section 2 of the Stockholders Agreement or Section 2 of the Joinder Agreement, as applicable. Whenever such restrictions shall cease and terminate as to any Stockholder Shares, the holder thereof shall be entitled to receive from the Company,
without expense (other than applicable transfer taxes, if any), new securities of like tenor not bearing the applicable legends required by Section 9.1 hereof. 
  

10. AVAILABILITY OF INFORMATION. If the Company shall have filed a registration statement pursuant to the requirements of Section 12 of the Exchange Act or a
registration statement pursuant to the requirements of the Securities Act, the Company will comply with the reporting requirements of Sections 13 and 15(d) of the Exchange Act and will comply with all other public information reporting requirements
of the Commission (including Rule 144 promulgated by the Commission under the Securities Act) from time to time in effect and relating to the availability of an exemption from the Securities Act for the sale of any Stockholder Shares. The Company
will also cooperate with each holder of any Stockholder Shares in supplying such information as may be necessary for such holder to complete and file any information reporting forms presently or hereafter required by the Commission as a condition to
the availability of an exemption from the Securities Act for the sale of any Stockholder Shares. If any holder of Preferred Warrants, or any Preferred Stock or Common 
  

 -13- 

 Stock issued pursuant to the exercise or conversion of such Preferred Warrants, does not otherwise receive pursuant to
the Senior Subordinated Loan Agreement or that certain Credit Agreement dated as of the date hereof among the Company, Olympus/Symmetry Holdings LLC, Wachovia Bank, National Association, for itself and as Administrative Agent for the other Lenders
(as defined therein) from time to time party thereto (the “Credit Agreement”), quarterly and annual financial statements of the Company, then the Company agrees to use commercially reasonable efforts to deliver such financial
statements to each such holder of Preferred Warrants or Preferred Stock or Common Stock issued pursuant to the exercise or conversion of such Preferred Warrants at such time as such financial statements are (or would be if the applicable provisions
of the Credit Agreement remained in effect) delivered to the lenders under the Credit Agreement. 
  
 11. RESERVATION OF STOCK, ETC. The Company will at all times reserve and keep available, solely for issuance and delivery upon exercise of the Warrants, the number of shares of Preferred Stock of each class (or Other
Securities) from time to time issuable upon exercise of all Warrants at the time outstanding. All shares of Preferred Stock (or Other Securities) issuable upon exercise of any Warrants shall be duly authorized and, when issued upon such exercise,
shall be validly issued and, in the case of shares, fully paid and nonassessable with no liability on the part of the holders thereof. 
  
 12. OWNERSHIP, TRANSFER AND SUBSTITUTION OF WARRANTS. 
  
 12.1. Ownership of Warrants. The Company may treat the person in whose name any Warrant is registered on the register
kept at the office of the Company maintained pursuant to Section 12.2(a) hereof as the owner and holder thereof for all purposes, notwithstanding any notice to the contrary, except that, if and when any Warrant is properly assigned in blank, the
Company may (but shall not be obligated to) treat the bearer thereof as the owner of such Warrant for all purposes, notwithstanding any notice to the contrary. Subject to Section 9 hereof, a Warrant, if properly assigned, may be exercised by a new
holder without a new Warrant first having been issued. 
  
 12.2.
Office; Transfer and Exchange of Warrants. 
  
 (a) The Company will maintain an office (which may be an agency maintained at a bank) in Warsaw, Indiana where notices, presentations and demands in respect of this Warrant may be made upon it. Such office shall be maintained at 220 West
Market Street, Warsaw, Indiana 46580 until such time as the Company shall notify the holders of the Warrants of any change of location of such office within Warsaw, Indiana. 
  
 (b) The Company shall cause to be kept at its office maintained pursuant to Section 12.2(a) hereof a
register for the registration and transfer of the Warrants. The names and addresses of holders of Warrants, the transfers thereof and the names and addresses of transferees of Warrants shall be registered in such register. The Person in whose name
any Warrant shall be so registered shall be deemed and treated as the owner and holder thereof for all purposes of this Warrant, and the Company shall not be affected by any notice or knowledge to the contrary. 
  

 -14- 

 (c) Upon the surrender of any Warrant, properly endorsed, for registration of transfer or
for exchange at the office of the Company maintained pursuant to Section 12.2(a) hereof, the Company at its expense will (subject to compliance with Section 9 hereof, if applicable) execute and deliver to or upon the order of the holder thereof a
new Warrant or Warrants of like tenor, in the name of such holder or as such holder (upon payment by such holder of any applicable transfer taxes) may direct, calling in the aggregate on the face or faces thereof for the number of shares of
Preferred Stock called for on the face or faces of the Warrant or Warrants so surrendered. 
  
 12.3. Replacement of Warrants. Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of any Warrant and, in the case of any such loss, theft or
destruction of any Warrant held by a Person other than a Purchaser or any institutional investor, upon delivery of indemnity reasonably satisfactory to the Company in form and amount or, in the case of any such mutilation, upon surrender of such
Warrant for cancellation at the office of the Company maintained pursuant to Section 12.2(a) hereof, the Company at its expense will execute and deliver, in lieu thereof, a new Warrant of like tenor and dated the date hereof. 
  
 13. DEFINITIONS. As used herein, unless the context otherwise requires, the following terms
have the following respective meanings: 
  
 Additional Shares
of Preferred Stock: All shares (including treasury shares) of Preferred Stock issued or sold (or, pursuant to Section 2.3 or 2.4 hereof, deemed to be issued) by the Company after the date hereof, whether or not subsequently reacquired or retired
by the Company, other than (i) 100,803.946 shares of Preferred Stock issued and outstanding on June 11, 2003 and (ii) the shares of Preferred Stock issued upon the exercise of any of the Preferred Warrants. 
  
 Approved Fund: In the case of Antares Capital Corporation, any trust,
limited or general partnership, limited liability company, corporation or other limited purpose entity that invests in loans (a “fund”) and is managed by Antares Capital Corporation, an affiliate of Antares Capital Corporation or the same
investment advisor of Antares Capital Corporation or by an affiliate of such investment advisor, or any finance company, insurance company, investment bank or other financial institution which temporarily warehouses loans for any of the foregoing.

  
 Business Day: Any day other than a Saturday or a Sunday
or a day on which commercial banking institutions in Boston, Massachusetts, New York, New York or Warsaw, Indiana are authorized by law to be closed. Any reference to “days” (unless Business Days are specified) shall mean calendar days.

  
 Commission: The Securities and Exchange Commission or
any other federal agency at the time administering the Securities Act. 
  
 Company: As defined in the introduction to this Warrant, such term to include any corporation which shall succeed to or assume the obligations of the Company hereunder in compliance with Section 3 hereof. 
  

 -15- 

 Convertible Securities: Any evidences of indebtedness, shares of stock (other than Preferred
Stock) or other securities directly or indirectly convertible into or exchangeable for Additional Shares of Capital Stock other than the shares of Class A Preferred Stock outstanding as of June 11, 2003 or issued in connection with the conversion or
exercise of the Preferred Warrants. 
  
 Credit Agreement:
As defined in Section 10 of this Warrant. 
  
 Exchange Act:
The Securities Exchange Act of 1934, or any similar federal statute, and the rules and regulations of the Commission thereunder, all as the same shall be in effect at the time. 
  
 Expiration Date: As defined in the introduction to this Warrant. 
  
 Joinder: The Joinder and Amendment to Stockholders Agreement dated as
of June 11, 2003 by and among Windjammer Mezzanine & Equity Fund II, L.P., Olympus/Symmetry Holdings LLC and Olympus Growth Fund III, L.P.  
  
 Loan Agreement: As defined in the introduction to this Warrant. 
  
 Market Price: On any date specified herein, the amount per share of Preferred Stock equal to (a) the last sale price
of Preferred Stock, regular way, on such date or, if no such sale takes place on such date, the average of the closing bid and asked prices thereof on such date, in each case as officially reported on the principal national securities exchange on
which Preferred Stock is then listed or admitted to trading, or (b) if Preferred Stock is not then listed or admitted to trading on any national securities exchange but is designated as a national market system security by the NASD, the last trading
price of Preferred Stock on such date, or (c) if there shall have been no trading on such date or if Preferred Stock is not so designated, the average of the closing bid and asked prices of Preferred Stock on such date as shown by the NASD automated
quotation system, or (d) if Preferred Stock is not then listed or admitted to trading on any national exchange or quoted in the over-the-counter market, the higher of (x) $1,000.00 or (y) the fair value thereof determined in good faith by the Board
of Directors of the Company as of a date which is within 15 days of the date as of which the determination is to be made. 
  
 NASD: The National Association of Securities Dealers, Inc. 
  

Options: Rights, options or warrants to subscribe for, purchase or otherwise acquire either Additional Shares of Preferred Stock or Convertible
Securities. 
  
 Other Securities: Any stock (other than
Preferred Stock) and other securities of the Company or any other person (corporate or otherwise) which the holders of the Warrants at any time shall be entitled to receive, or shall have received, upon the exercise of the Warrants, in lieu of or in
addition to Preferred Stock, or which at any time shall be issuable or shall have been issued in exchange for or in replacement of Preferred Stock or Other Securities pursuant to Section 3 hereof or otherwise. 
  
 Person: A corporation, an association, a partnership, an organization,
a business, an individual, a government or political subdivision thereof or a governmental agency. 
  

 -16- 

 Preferred Stock: The Company’s Class A Preferred Stock, par value $0.01 per share.

  
 Preferred Warrants: Those Warrants dated as of June 11,
2003 providing for the purchase from the Company of shares of Class A Preferred Stock,. 
  
 Purchasers: As defined in the introduction to this Warrant. 
  
 Securities Act: The Securities Act of 1933, or any similar federal statute, and the rules and regulations of the Commission thereunder, all as the
same shall be in effect at the time. 
  
 Stockholder
Shares: As defined in the Stockholders Agreement. 
  
 Stockholders Agreement: The Stockholders Agreement dated as of October 18, 2000 between the Company, Olympus/Symmetry Holdings LLC and the Stockholders (as defined therein), as amended and modified from time to time. 
  
 Warrant Price: As defined in Section 2.1 hereof. 
  
 Warrants: The Common Warrants and the Preferred Warrants,
collectively. 
  
 14. REMEDIES. The Company stipulates that the remedies at law of
the holder of this Warrant in the event of any default or threatened default by the Company in the performance of or compliance with any of the terms of this Warrant are not and will not be adequate and that, to the fullest extent permitted by law,
such terms may be specifically enforced by a decree for the specific performance of any agreement contained herein or by an injunction against a violation of any of the terms hereof or otherwise 
  
 15. NO RIGHTS OR LIABILITIES AS A STOCKHOLDER. Nothing contained in this Warrant shall be
construed as conferring upon the holder hereof any rights as a stockholder of the Company or as imposing any obligation on such holder to purchase any securities or as imposing any liabilities on such holder as a stockholder of the Company, whether
such obligation or liabilities are asserted by the Company or by creditors of the Company. 
  
 16. NOTICES. Any notice or other communication in connection with this Warrant shall be deemed to be delivered if in writing (or in the form of a telex or telecopy) addressed as hereinafter provided and if either (x)
actually delivered at said address (evidenced in the case of a telex by receipt of the correct answerback) or (y) in the case of a letter, three Business Days shall have elapsed after the same shall have been deposited in the United States mails,
postage prepaid and registered or certified: (a) if to any holder of any Warrant, at the registered address of such holder as set forth in the register kept at the office of the Company maintained pursuant to Section 12.2(a) hereof; or (b) if to the
Company, to the attention of its President at its office maintained pursuant to Section 12.2(a) hereof; provided, however, that the exercise of any Warrant shall be effective in the manner provided in Section 1 hereof. 
  

 -17- 

 [the remainder of this page is intentionally left blank] 

 17. MISCELLANEOUS. This Warrant and any term hereof may be changed, waived, discharged or terminated only by an
instrument in writing signed by the party against which enforcement of such change, waiver, discharge or termination is sought. This Warrant shall be construed and enforced in accordance with and governed by the laws of the State of New York. The
section headings in this Warrant are for purposes of convenience only and shall not constitute a part hereof. 
  

			
	 SYMMETRY MEDICAL, INC.

		
	 By:
	 	  

	 Title:
	 	 

 FORM OF SUBSCRIPTION 
  
 [To be executed only upon exercise of Preferred Warrant] 
  
 To Symmetry Medical, Inc. 
  
 The undersigned registered holder of the within Warrant hereby irrevocably exercises such Warrant for, and purchases thereunder,
                    1 shares of the Preferred Stock and herewith makes payment of $             therefor, and requests that the certificates for such shares be issued in the name of, and
delivered to                     , whose address
is                    . 
  

			
	 Dated:
	 	  

	 	 	(Signature must conform in all respects to name of holder as specified on the face of Warrant)
		
	 	 	  

	 	 	        (Street Address)
		
	 	 	  

	 	 	 (City)    (State)    (Zip Code)

	1	Insert here the number of shares called for on the face of this Warrant (or, in the case of a partial exercise, the portion thereof as to which this Warrant is being
exercised), in either case without making any adjustment for Additional Shares of Preferred Stock or any other stock or other securities or property or cash which, pursuant to the adjustment provisions of this Warrant, may be delivered upon
exercise. In the case of a partial exercise, a new Warrant or Warrants will be issued and delivered, representing the unexercised portion of the Warrant, to the holder surrendering the Warrant. 

 FORM OF CONVERSION NOTICE 
  
 [To be executed only upon conversion of Preferred Warrant] 
  
 To Symmetry Medical, Inc. 
  
 The undersigned registered holder of the within Warrant hereby irrevocably converts such Warrant with respect to
                    1 shares of the Preferred Stock which such holder would be entitled to receive upon the exercise hereof, and requests that the certificates for such shares be issued in the name of, and delivered to
                    , whose address
is                    . 
  

			
	 Dated:
	 	  

	 	 	(Signature must conform in all respects to name of holder as specified on the face of Warrant)
		
	 	 	  

	 	 	         (Street Address)

		
	 	 	  

	 	 	 (City)    (State)    (Zip Code)

	1	Insert here the number of shares called for on the face of this Warrant (or, in the case of a partial conversion, the portion thereof as to which this Warrant is
being converted), in either case without making any adjustment for Additional Shares of Preferred Stock or any other stock or other securities or property or cash which, pursuant to the adjustment provisions of this Warrant, may be delivered upon
exercise. In the case of a partial conversion, a new Warrant or Warrants will be issued and delivered, representing the unconverted portion of the Warrant, to the holder surrendering the Warrant. 

 FORM OF ASSIGNMENT 
  
 [To be executed only upon transfer of Preferred Warrant] 
  
 For value received, the undersigned registered holder of the within Warrant hereby sells, assigns and transfers unto
                     the right represented by such Warrant to purchase
                    1 shares of Preferred Stock of Symmetry Medical, Inc. to which such Warrant relates, and appoints                      Attorney
to make such transfer on the books of Symmetry Medical, Inc. maintained for such purpose, with full power of substitution in the premises. 
  

			
	 Dated:
	 	  

	 	 	(Signature must conform in all respects to name of holder as specified on the face of Warrant)
		
	 	 	  

	 	 	        (Street Address)
		
	 	 	  

	 	 	 (City)    (State)    (Zip Code)

  

	
	Signed in the presence of:
	
	  

  

	1	Insert here the number of shares called for on the face of this Warrant (or, in the case of a partial exercise, the portion thereof as to which this Warrant is being
exercised), in either case without making any adjustment for Additional Shares of Preferred Stock or any other stock or other securities or property or cash which, pursuant to the adjustment provisions of this Warrant, may be delivered upon
exercise. In the case of a partial exercise, a new Warrant or Warrants will be issued and delivered, representing the unexercised portion of the Warrant, to the holder surrendering the Warrant.

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