Document:

EX-10.1

 Exhibit 10.1 

Execution Version 
 THIRD AMENDMENT
AGREEMENT 
 This THIRD AMENDMENT AGREEMENT (this “Amendment”) is made as of December 23, 2019 among: 

(a) COMPUTER TASK GROUP, INCORPORATED, a New York corporation (the “Borrower”); 

(b) the Lenders, as defined in the Credit Agreement, as hereinafter defined; and 

(c) KEYBANK NATIONAL ASSOCIATION, a national banking association, as the administrative agent for the Lenders under the Credit Agreement (the
“Administrative Agent”). 
 WHEREAS, the Borrower, the Administrative Agent and the Lenders are parties to that certain Credit and
Security Agreement, dated as of December 21, 2017 (as amended and as the same may from time to time be further amended, restated or otherwise modified, the “Credit Agreement”); 

WHEREAS, the Borrower, the Administrative Agent and the Lenders desire to amend the Credit Agreement to modify certain provisions thereof;

 WHEREAS, each capitalized term used herein and defined in the Credit Agreement, but not otherwise defined herein, shall have the meaning
given such term in the Credit Agreement; and 
 WHEREAS, unless otherwise specifically provided herein, the provisions of the Credit
Agreement revised herein are amended effective as of the date of this Amendment; 
 NOW, THEREFORE, in consideration of the premises and of
the mutual covenants herein and for other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Borrower, the Administrative Agent and the Lenders agree as follows: 

1. Amendment to Credit Agreement. The body of the Credit Agreement is hereby amended to delete the red, stricken text (indicated
textually in the same manner as the following example: stricken text) and to add the blue, double-underlined
text (indicated textually in the same manner as the following example: double-underlined text) as set forth in the pages of the Credit Agreement attached as Exhibit A hereto. 

2. Closing Deliveries. Concurrently with the execution of this Amendment, the Borrower shall: 

(a) deliver to the Administrative Agent evidence satisfactory to the Administrative Agent that, on the Third Amendment
Effective Date, the total of (i) the Revolving Credit Availability (calculated after giving pro forma effect to any borrowings on the Third Amendment Effective Date, minus (ii) any fees and expenses due under subparts (b) and
(d) below, minus (iii) any accounts payable of the Borrower with balances over sixty (60) days past due, shall be no less than Nine Million Dollars ($9,000,000); 

 (b) pay to the Administrative Agent, for the pro rata benefit of the
Lenders, an amendment fee of Sixty-Seven Thousand Five Hundred Dollars ($67,500); 
 (c) cause each Guarantor of Payment to
execute the attached Guarantor Acknowledgment and Agreement; 
 (d) cause Lien search results, a form reasonably acceptable
to Agent, to be delivered to Agent; and 
 (e) pay all legal fees and expenses of the Administrative Agent in connection with
this Amendment and any other Loan Documents. 
 3. Representations and Warranties. The Borrower hereby represents and warrants to the
Administrative Agent and the Lenders that (a) the Borrower has the legal power and authority to execute and deliver this Amendment; (b) the officers executing this Amendment have been duly authorized to execute and deliver the same and
bind the Borrower with respect to the provisions hereof; (c) the execution and delivery hereof by the Borrower and the performance and observance by the Borrower of the provisions hereof do not violate or conflict with the Organizational
Documents of the Borrower or any law applicable to the Borrower or result in a breach of any provision of or constitute a default under any other agreement, instrument or document binding upon or enforceable against the Borrower; (d) no Default
or Event of Default exists, nor will any occur immediately after the execution and delivery of this Amendment or by the performance or observance of any provision hereof; (e) each of the representations and warranties contained in the Loan
Documents is true and correct in all material respects as of the date hereof as if made on the date hereof, except to the extent that any such representation or warranty expressly states that it relates to an earlier date (in which case such
representation or warranty is true and correct in all material respects as of such earlier date); (f) the Borrower is not aware of any claim or offset against, or defense or counterclaim to, the Borrower’s obligations or liabilities under
the Credit Agreement or any other Related Writing; and (g) this Amendment constitutes a valid and binding obligation of the Borrower in every respect, enforceable in accordance with its terms. 

4. Waiver and Release. The Borrower, by signing below, hereby waives and releases the Administrative Agent, and each of the Lenders, and
their respective directors, officers, employees, attorneys, affiliates and subsidiaries, from any and all claims, offsets, defenses and counterclaims, that, in each case, may have arisen through the date hereof in connection with the Loan Documents
or the transactions contemplated thereby, such waiver and release being with full knowledge and understanding of the circumstances and effect thereof and after having consulted legal counsel with respect thereto. 

  
 2 

 5. References to Credit Agreement and Ratification. Each reference to the Credit
Agreement that is made in the Credit Agreement or any other Related Writing shall hereafter be construed as a reference to the Credit Agreement as amended hereby. Except as otherwise specifically provided herein, all terms and provisions of the
Credit Agreement are confirmed and ratified and shall remain in full force and effect and be unaffected hereby. This Amendment is a Loan Document. 

6. Counterparts. This Amendment may be executed in any number of counterparts, by different parties hereto in separate counterparts and
by facsimile or other electronic signature, each of which, when so executed and delivered, shall be deemed to be an original and all of which taken together shall constitute but one and the same agreement. 

7. Headings. The headings, captions and arrangements used in this Amendment are for convenience only and shall not affect the
interpretation of this Amendment. 
 8. Severability. Any provision of this Amendment that shall be prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such provision in any other
jurisdiction. 
 9. Governing Law. The rights and obligations of all parties hereto shall be governed by the laws of the State of New
York. 
 [Remainder of page intentionally left blank.] 

  
 3 

 JURY TRIAL WAIVER. THE BORROWER, THE ADMINISTRATIVE AGENT AND THE LENDERS, TO THE
EXTENT PERMITTED BY LAW, EACH HEREBY WAIVES ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, AMONG THE BORROWER, THE ADMINISTRATIVE AGENT AND THE LENDERS, OR ANY THEREOF, ARISING OUT OF,
IN CONNECTION WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH THIS AMENDMENT OR ANY NOTE OR OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS
RELATED THERETO. 
 IN WITNESS WHEREOF, the parties have executed and delivered this Amendment as of the date first set forth above. 

 

			
	COMPUTER TASK GROUP, INCORPORATED
		
	By:	 	/s/ John M. Laubacker
		 	John M. Laubacker
		 	 Chief Financial Officer, Treasurer & Senior
Vice President

	
	 KEYBANK NATIONAL ASSOCIATION
as the Administrative Agent and as a
Lender

		
	By:	 	/s/ Katherine C. Meadows
		 	Katherine C. Meadows
		 	Senior Vice President

  
 Signature Page 1 of 2 to

 Third Amendment Agreement 

 
			
	 MANUFACTURERS AND TRADERS
TRUST COMPANY

		
	By:	 	/s/ Michael Pick
	Name:	 	Michael Pick
	Title:	 	Vice President

  
 Signature Page 2 of 2 to

 Third Amendment Agreement 

 GUARANTOR ACKNOWLEDGMENT AND AGREEMENT 

Each of the undersigned consents and agrees to and acknowledges the terms of the foregoing Third Amendment Agreement dated as of
December 23, 2019. The undersigned further agree that the obligations of the undersigned pursuant to the Guaranty of Payment executed by the undersigned are hereby ratified and shall remain in full force and effect and be unaffected
hereby. 
 Each of the undersigned hereby waives and releases the Administrative Agent and the Lenders and their respective directors,
officers, employees, attorneys, affiliates and subsidiaries from any and all claims, offsets, defenses and counterclaims of any kind or nature, absolute and contingent, that, in each case, may have arisen through the date hereof in connection with
the Loan Documents or the transactions contemplated thereby, such waiver and release being with full knowledge and understanding of the circumstances and effect thereof and after having consulted legal counsel with respect thereto. 

JURY TRIAL WAIVER. EACH OF THE UNDERSIGNED, TO THE EXTENT PERMITTED BY LAW, HEREBY WAIVES ANY RIGHT TO HAVE A JURY PARTICIPATE IN
RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, AMONG THE BORROWER, THE ADMINISTRATIVE AGENT, THE LENDERS AND THE UNDERSIGNED, OR ANY THEREOF, ARISING OUT OF, IN CONNECTION WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP
ESTABLISHED AMONG THEM IN CONNECTION WITH THIS GUARANTOR ACKNOWLEDGMENT AND AGREEMENT, THE AMENDMENT OR ANY NOTE OR OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS RELATED THERETO. 

 

			
	CTG OF BUFFALO, INC.
	 COMPUTER TASK GROUP
INTERNATIONAL, INC.

		
	By:	 	/s/ John M. Laubacker
		 	John M. Laubacker
		 	President

 Signature Page to 

Guarantor Acknowledgment and Agreement 

 Exhibit A 

See attached. 

  

 
 CREDIT AND SECURITY AGREEMENT

 among 

COMPUTER TASK GROUP, INCORPORATED 

as Borrower 

THE LENDERS NAMED HEREIN 

as Lenders 
 and

 KEYBANK NATIONAL ASSOCIATION 

as Administrative Agent, Swing Line Lender and Issuing Lender 

KEYBANC CAPITAL MARKETS INC. 

as Lead Arranger and Sole Book Runner 
  

 
 dated as of

 December 21, 2017 
  

 
  

 
  

 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page	 
	 ARTICLE I. DEFINITIONS
	  	 	1	 
	 Section 1.1.
	  	Definitions	  	 	1	 
	 Section 1.2.
	  	Accounting Terms	  	 	3843	 
	 Section 1.3.
	  	Terms Generally	  	 	3943	 
	 Section 1.4.
	  	Foreign Exchange	  	 	3943	 
	
Section 1.5.
	  	Divisions	  	 	44	 
		
	 ARTICLE II. AMOUNT AND TERMS OF CREDIT
	  	 	3944	 
	 Section 2.1.
	  	Amount and Nature of Credit	  	 	3944	 
	 Section 2.2.
	  	Revolving Credit Commitment	  	 	4045	 
	 Section 2.3.
	  	Interest	  	 	4551	 
	 Section 2.4.
	  	Evidence of Indebtedness	  	 	4752	 
	 Section 2.5.
	  	Notice of Loans and Credit Events; Funding of Loans	  	 	4753	 
	 Section 2.6.
	  	Payment on Loans and Other Obligations	  	 	4954	 
	 Section 2.7.
	  	Prepayment	  	 	5056	 
	 Section 2.8.
	  	Commitment and Other Fees; Reduction of Revolving Credit Commitment	  	 	5157	 
	 Section 2.9.
	  	Computation of Interest and Fees	  	 	5258	 
	 Section 2.10.
	  	Mandatory Payments	  	 	5258	 
	 Section 2.11.
	  	Cash Collateral	  	 	5460	 
	 Section 2.12.
	  	Swap Obligations Keepwell Provision	  	 	5561	 
	 Section 2.13.
	  	Establishment of Reserves	  	 	5561	 
	 Section 2.14.
	  	Addition of Borrowing Base Company	  	 	5662	 
	 Section 2.15.
	  	Record of Advances; Application of Collections	  	 	5662	 
	 Section 2.16.
	  	Protective Advances	  	 	5763	 
		
	ARTICLE III. ADDITIONAL PROVISIONS RELATING TO EURODOLLARLIBOR FIXED RATE LOANS AND
DAILY LIBOR LOANS; INCREASED CAPITAL; TAXES	  	 	5864	 
	 Section 3.1.
	  	Requirements of Law	  	 	5864	 
	 Section 3.2.
	  	Taxes	  	 	6066	 
	 Section 3.3.
	  	Funding Losses	  	 	6571	 
	 Section 3.4.
	  	Eurodollar Rate or Daily LIBOR Rate Lending Unlawful; Inability to Determine Rate	  	 	6572	 
	 Section 3.5.
	  	Discretion of Lenders as to Manner of Funding	  	 	6672	 
	
Section 3.6.
	  	Effect of Benchmark Transition Event	  	 	73	 
		
	 ARTICLE IV. CONDITIONS PRECEDENT
	  	 	6674	 
	 Section 4.1.
	  	Conditions to Each Credit Event	  	 	6674	 
	 Section 4.2.
	  	Conditions to the First Credit Event	  	 	6775	 
		
	 ARTICLE V. COVENANTS
	  	 	7079	 
	 Section 5.1.
	  	Insurance	  	 	7079	 
	 Section 5.2.
	  	Money Obligations	  	 	7179	 
	 Section 5.3.
	  	Financial Statements, Collateral Reporting and Information	  	 	7180	 
	 Section 5.4.
	  	Financial Records	  	 	7483	 
	 Section 5.5.
	  	Franchises; Change in Business	  	 	7583	 
	 Section 5.6.
	  	ERISA Pension and Benefit Plan Compliance	  	 	7583	 
	 Section 5.7.
	  	Financial Covenants	  	 	7684	 

  
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 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page	 
	 Section 5.8.
	  	Borrowing	  	 	7684	 
	 Section 5.9.
	  	Liens	  	 	7886	 
	 Section 5.10.
	  	Regulations T, U and X	  	 	8088	 
	 Section 5.11.
	  	Investments, Loans and Guaranties	  	 	8088	 
	 Section 5.12.
	  	Merger and Sale of Assets	  	 	8190	 
	 Section 5.13.
	  	Acquisitions	  	 	8391	 
	 Section 5.14.
	  	Notice	  	 	8492	 
	 Section 5.15.
	  	Restricted Payments	  	 	8493	 
	 Section 5.16.
	  	Environmental Compliance	  	 	8493	 
	 Section 5.17.
	  	Affiliate Transactions	  	 	8594	 
	 Section 5.18.
	  	Use of Proceeds	  	 	8594	 
	 Section 5.19.
	  	Corporate Names and Locations of Collateral	  	 	8694	 
	 Section 5.20.
	  	Subsidiary Guaranties, Security Documents and Pledge of Stock or Other Ownership Interest	  	 	8695	 
	 Section 5.21.
	  	Collateral	  	 	8896	 
	 Section 5.22.
	  	Property Acquired Subsequent to the Closing Date and Right to Take Additional Collateral	  	 	9098	 
	 Section 5.23.
	  	Restrictive Agreements	  	 	9099	 
	 Section 5.24.
	  	Other Financial Covenants	  	 	9099	 
	 Section 5.25.
	  	Guaranty Under Material Indebtedness Agreement	  	 	91100	 
	 Section 5.26.
	  	Amendment of Organizational Documents	  	 	91100	 
	 Section 5.27.
	  	Fiscal Year of the Borrower	  	 	91100	 
	 Section 5.28.
	  	Compliance with Laws	  	 	91100	 
	 Section 5.29.
	  	Banking Relationship	  	 	91100	 
	 Section 5.30.
	  	Foreign Deposit Accounts	  	 	91100	 
	
Section 5.31.
	  	Beneficial Ownership	  	 	101	 
	
Section 
5.315.32.
	  	Further Assurances	  	 	92101	 
		
	 ARTICLE VI. REPRESENTATIONS AND WARRANTIES
	  	 	92101	 
	 Section 6.1.
	  	Corporate Existence; Subsidiaries; Foreign Qualification	  	 	92101	 
	 Section 6.2.
	  	Corporate Authority	  	 	92101	 
	 Section 6.3.
	  	Compliance with Laws and Contracts	  	 	93102	 
	 Section 6.4.
	  	Litigation and Administrative Proceedings	  	 	93102	 
	 Section 6.5.
	  	Title to Assets	  	 	93103	 
	 Section 6.6.
	  	Liens and Security Interests	  	 	94103	 
	 Section 6.7.
	  	Tax Returns	  	 	94103	 
	 Section 6.8.
	  	Environmental Laws	  	 	94103	 
	 Section 6.9.
	  	Locations	  	 	95104	 
	 Section 6.10.
	  	Continued Business	  	 	95104	 
	 Section 6.11.
	  	Employee Benefits Plans	  	 	95104	 
	 Section 6.12.
	  	Consents or Approvals	  	 	96105	 
	 Section 6.13.
	  	Solvency	  	 	96106	 
	 Section 6.14.
	  	Financial Statements	  	 	97106	 
	 Section 6.15.
	  	Regulations	  	 	97106	 
	 Section 6.16.
	  	Material Agreements	  	 	97106	 
	 Section 6.17.
	  	Intellectual Property	  	 	97106	 

  
 ii 

 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page	 
	 Section 6.18.
	  	Insurance	  	 	98107	 
	 Section 6.19.
	  	Deposit Accounts and Securities Accounts	  	 	98107	 
	 Section 6.20.
	  	Accurate and Complete Statements	  	 	98107	 
	 Section 6.21.
	  	Investment Company; Other Restrictions	  	 	98107	 
	
Section 6.22.
	  	Beneficial Ownership	  	 	107	 
	
Section 
6.226.23.
	  	Defaults	  	 	98107	 
		
	 ARTICLE VII. SECURITY
	  	 	98107	 
	 Section 7.1.
	  	Security Interest in Collateral	  	 	98107	 
	 Section 7.2.
	  	Cash Management System	  	 	98107	 
	 Section 7.3.
	  	Collections and Receipt of Proceeds by Administrative Agent	  	 	101110	 
	 Section 7.4.
	  	Administrative Agent’s Authority Under Pledged Notes	  	 	102111	 
	 Section 7.5.
	  	Commercial Tort Claims	  	 	103112	 
		
	 ARTICLE VIII. EVENTS OF DEFAULT
	  	 	103112	 
	 Section 8.1.
	  	Payments	  	 	103112	 
	 Section 8.2.
	  	Special Covenants	  	 	103112	 
	 Section 8.3.
	  	Other Covenants	  	 	103112	 
	 Section 8.4.
	  	Representations and Warranties	  	 	104113	 
	 Section 8.5.
	  	Cross Default	  	 	104113	 
	 Section 8.6.
	  	ERISA Default	  	 	104113	 
	 Section 8.7.
	  	Change in Control	  	 	104113	 
	 Section 8.8.
	  	Judgments	  	 	104113	 
	 Section 8.9.
	  	Material Adverse Change	  	 	105114	 
	 Section 8.10.
	  	Security	  	 	105114	 
	 Section 8.11.
	  	Validity of Loan Documents	  	 	105114	 
	 Section 8.12.
	  	Solvency	  	 	105114	 
		
	 ARTICLE IX. REMEDIES UPON DEFAULT
	  	 	106115	 
	 Section 9.1.
	  	Optional Defaults	  	 	106115	 
	 Section 9.2.
	  	Automatic Defaults	  	 	106115	 
	 Section 9.3.
	  	Letters of Credit	  	 	106116	 
	 Section 9.4.
	  	Offsets	  	 	107116	 
	 Section 9.5.
	  	Equalization Provisions	  	 	107116	 
	 Section 9.6.
	  	Collateral	  	 	108117	 
	 Section 9.7.
	  	Other Remedies	  	 	109118	 
	 Section 9.8.
	  	Application of Proceeds	  	 	109118	 
		
	 ARTICLE X. THE ADMINISTRATIVE AGENT
	  	 	110119	 
	 Section 10.1.
	  	Appointment and Authorization	  	 	110119	 
	 Section 10.2.
	  	Note Holders	  	 	111120	 
	 Section 10.3.
	  	Consultation With Counsel	  	 	111120	 
	 Section 10.4.
	  	Documents	  	 	111120	 
	 Section 10.5.
	  	Administrative Agent and Affiliates	  	 	112121	 
	 Section 10.6.
	  	Knowledge or Notice of Default	  	 	112121	 
	 Section 10.7.
	  	Action by Administrative Agent	  	 	112121	 
	 Section 10.8.
	  	Release of Collateral or Guarantor of Payment	  	 	112121	 

  
 iii 

 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page	 
	 Section 10.9.
	  	Delegation of Duties	  	 	113122	 
	 Section 10.10.
	  	Indemnification of Administrative Agent	  	 	113122	 
	 Section 10.11.
	  	Successor Administrative Agent	  	 	114123	 
	 Section 10.12.
	  	Issuing Lender	  	 	114123	 
	 Section 10.13.
	  	Swing Line Lender	  	 	114123	 
	 Section 10.14.
	  	Administrative Agent May File Proofs of Claim	  	 	114124	 
	 Section 10.15.
	  	No Reliance on Administrative Agent’s Customer Identification Program	  	 	115124	 
	 Section 10.16.
	  	Other Agents	  	 	115124	 
	 Section 10.17.
	  	Platform	  	 	116125	 
		
	 ARTICLE XI. MISCELLANEOUS
	  	 	116125	 
	 Section 11.1.
	  	Lenders’ Independent Investigation	  	 	116125	 
	 Section 11.2.
	  	No Waiver; Cumulative Remedies	  	 	116126	 
	 Section 11.3.
	  	Amendments, Waivers and Consents	  	 	117126	 
	 Section 11.4.
	  	Notices	  	 	118128	 
	 Section 11.5.
	  	Approved Electronic Communication System	  	 	119128	 
	 Section 11.6.
	  	Costs, Expenses and Documentary Taxes	  	 	120129	 
	 Section 11.7.
	  	Indemnification	  	 	120129	 
	 Section 11.8.
	  	Obligations Several; No Fiduciary Obligations	  	 	120130	 
	 Section 11.9.
	  	Execution in Counterparts	  	 	121130	 
	 Section 11.10.
	  	Successors and Assigns	  	 	121130	 
	 Section 11.11.
	  	Defaulting Lenders	  	 	125134	 
	 Section 11.12.
	  	Patriot Act Notice	  	 	128137	 
	 Section 11.13.
	  	Severability of Provisions; Captions; Attachments	  	 	128137	 
	 Section 11.14.
	  	Investment Purpose	  	 	128137	 
	 Section 11.15.
	  	Entire Agreement	  	 	129138	 
	 Section 11.16.
	  	Confidentiality	  	 	129138	 
	 Section 11.17.
	  	Limitations on Liability of the Issuing Lender	  	 	129139	 
	 Section 11.18.
	  	General Limitation of Liability	  	 	130139	 
	 Section 11.19.
	  	No Duty	  	 	130139	 
	 Section 11.20.
	  	Legal Representation of Parties	  	 	131140	 
	 Section 11.21.
	  	Acknowledgement and Consent to Bail-In of EEA Financial Institutions	  	 	131140	
	 Section 11.22.
	  	Governing Law; Submission to Jurisdiction	  	 	131140	 
	
Section 
11.23.
	  	Judgment Currency	  	 	141	 
	
Section 
11.24.
	  	ERISA Representations	  	 	141	 
	 Jury Trial Waiver
	  	 	Signature Page 1	 

  

			
	Exhibit A	 	Form of Revolving Credit Note
	Exhibit B	 	Form of Swing Line Note
	Exhibit C	 	Form of Notice of Loan
	Exhibit D	 	Form of Compliance Certificate
	Exhibit E	 	Form of Assignment and Assumption Agreement

  
 iv 

 TABLE OF CONTENTS 

 

					
	 	  	  	  	 Page

	Exhibit F-1	  	Form of U.S. Tax Compliance Certificate (For Foreign Lenders That Are Not Partnerships For U.S. Federal Income Tax Purposes)	  	
	Exhibit F-2	  	Form of U.S. Tax Compliance Certificate (For Foreign Participants That Are Not Partnerships For U.S. Federal Income Tax Purposes)	  	
	Exhibit F-3	  	Form of U.S. Tax Compliance Certificate (For Foreign Participants That Are Partnerships For U.S. Federal Income Tax Purposes)	  	
	Exhibit F-4	  	Form of U.S. Tax Compliance Certificate (For Foreign Lenders That Are Partnerships For U.S. Federal Income Tax Purposes)	  	
			
	Schedule 1	  	Commitments of Lenders	  	
	Schedule 2	  	Guarantors of Payment	  	
	Schedule 3	  	Pledged Securities	  	
	Schedule 4	  	Borrowing Base Companies	  	
	Schedule 5.3	  	Quarterly Reporting Periods	  	
	Schedule 5.8	  	Indebtedness	  	
	Schedule 5.9	  	Liens	  	
	Schedule 5.11	  	Permitted Foreign Subsidiary Loans, Guaranties and Investments	  	
	Schedule 6.1	  	Corporate Existence; Subsidiaries; Foreign Qualification	  	
	Schedule 6.4	  	Litigation and Administrative Proceedings	  	
	Schedule 6.5	  	Real Estate Owned by the Companies	  	
	Schedule 6.9	  	Locations	  	
	Schedule 6.11	  	Employee Benefits Plans	  	
	Schedule 6.16	  	Material Agreements	  	
	Schedule 6.17	  	Intellectual Property	  	
	Schedule 6.18	  	Insurance	  	
	Schedule 7.4	  	Pledged Notes	  	
	Schedule 7.5	  	Commercial Tort Claims	  	

  
 v 

 This CREDIT AND SECURITY AGREEMENT (as the same may from time to time be amended, restated
or otherwise modified, this “Agreement”) is made effective as of the 21st day of December, 2017 among: 
 (a)
COMPUTER TASK GROUP, INCORPORATED, a New York corporation (the “Borrower”); 
 (b) the lenders listed on
Schedule 1 hereto and each other Eligible Assignee, as hereinafter defined, that from time to time becomes a party hereto pursuant to Section 11.10 hereof (collectively, the “Lenders” and, individually, each a
“Lender”); and 
 (c) KEYBANK NATIONAL ASSOCIATION, a national banking association, as the administrative agent for
the Lenders under this Agreement (the “Administrative Agent”), the Swing Line Lender and the Issuing Lender. 
 WITNESSETH: 

WHEREAS, the Borrower, the Administrative Agent and the Lenders desire to contract for the establishment of credits in the aggregate principal
amounts hereinafter set forth, to be made available to the Borrower upon the terms and subject to the conditions hereinafter set forth; 

NOW, THEREFORE, it is mutually agreed as follows: 

ARTICLE I. DEFINITIONS 

Section 1.1. Definitions. As used in this Agreement, the following terms shall have the meanings set forth below: 

“Account” means an account, as that term is defined in the U.C.C. 

“Account Debtor” means an account debtor, as that term is defined in the U.C.C., or any other Person obligated to pay all or any
part of an Account in any manner and includes (without limitation) any Guarantor thereof. 
 “Acquisition” means any transaction
or series of related transactions for the purpose of or resulting, directly or indirectly, in (a) the acquisition of all or substantially all of the assets of any Person (other than a Company), or any business or division of any Person (other
than a Company), (b) the acquisition of in excess of fifty percent (50%) of the outstanding capital stock (or other equity interest) of any Person (other than a Company), or (c) the acquisition of another Person (other than a Company)
by a merger, amalgamation or consolidation or any other combination with such Person. 

 “Administrative Agent” means that term as defined in the first paragraph of this
Agreement. 
 “Administrative Agent Fee Letter” means the Administrative Agent Fee Letter between the Borrower and the
Administrative Agent, dated as of the Closing Date, as the same may from time to time be amended, restated or otherwise modified. 

“Advance Record” means that term as defined in Section 2.15(a) hereof. 

“Advantage” means any payment (whether made voluntarily or involuntarily, by offset of any deposit or other indebtedness or
otherwise) received by any Lender in respect of the Obligations, if such payment results in that Lender having less than its pro rata share (based upon its Commitment Percentage) of the Obligations then outstanding. 

“Affiliate” means, with respect to a specified Person, another Person that directly or indirectly through one or more
intermediaries, Controls or is Controlled by or is under common Control with the Person specified. 
 “Agent Parties” means that
term as defined in Section 10.17(b) hereof. 
 “Agreement” means that term as defined in the first paragraph of this
agreement. 

“Alternate
 Currency” means (a) Euros, and (b) any other currency, other than Dollars, agreed to by the Administrative Agent and the Lenders that (i) shall be freely transferable and convertible into Dollars, (ii) is dealt with in the
London interbank deposit market, and (iii) for which no central bank or other governmental authorization in the country of issue of such currency is required to give authorization for the use of such currency by any Lender for making Revolving
Loans unless such authorization has been obtained and remains in full force and effect. 

“Alternate
 Currency Exposure” means, at any time and without duplication, the sum of the Dollar Equivalent of (a) the aggregate principal amount of Alternate Currency Loans, and (b) the Letter of Credit Exposure that is denominated in one or
more Alternate Currencies. 
 “Alternate Currency Loan” means a Loan described in Section 2.2(a) hereof, that shall be denominated in an
Alternate Currency and on which the Borrower shall pay interest at the Derived Alternate Currency Rate. 

“Alternate
 Currency Maximum Amount” means Forty Million Dollars ($40,000,000). 
 “Alternate Currency Rate” means, with respect to an Alternate Currency Loan, for any Interest Period, a rate per
annum equal to the quotient obtained (rounded upwards, if necessary, to the nearest 1/16th
of 1%) by dividing (a) the rate of interest, determined by the Administrative Agent in accordance with its
usual procedures (which determination shall be conclusive absent manifest error) as published by Thomson Reuters (or other commercially available source providing such interest rate quotations as designated by the Administrative Agent from time
to 

  
 2 

 
time) for such Alternate Currency as the interbank lending rate
for leading banks in the applicable jurisdiction as of approximately 11:00 A.M. (Local Time) two Business Days prior to the beginning of such Interest Period (or such other time as the Administrative Agent may reasonably determine in light of the
rate setting mechanism), for deposits in the relevant Alternate Currency in immediately available funds with a maturity comparable to such Interest
Period, provided that, in the event that such rate quotation is not available for any reason, then the
Alternate Currency Rate for such Alternate Currency shall be the average (rounded upward to the nearest 1/16th of 1%) of the per annum rates at which deposits in immediately available funds in the
 relevant Alternate Currency for the relevant Interest Period and in the amount of the Alternate
Currency Loan to be disbursed or to remain outstanding during such Interest Period, as the case may be, are
offered to the Administrative Agent (or an affiliate of the Administrative Agent, in the Administrative Agent’s discretion) by leading banks in any Alternate
Currency market reasonably selected by the Administrative Agent or, if lower, at the option of the Administrative Agent, the per annum rate at which deposits in immediately available funds
in the relevant Alternate Currency for the relevant Interest Period and in the amount of the Alternate Currency are offered by the Administrative
Agent), determined as of 11:00 A.M. (Local
Time) (or as soon thereafter as practicable), two Business Days prior to the beginning of the relevant
Interest Period pertaining to such Alternate Currency Loan hereunder; by (b) 1.00 minus the Reserve
Percentage. Notwithstanding the foregoing, if at any time the Alternate Currency Rate as determined above is less than zero, it shall be deemed to be zero for purposes of this Agreement.

 “Anti-Corruption Laws” means all laws, rules, and regulations of any jurisdiction applicable to the Companies from time
to time concerning or relating to bribery or corruption (including, without limitation, the Foreign Corrupt Practices Act of 1977 (FCPA) (15 U.S.C. § 78dd-1, et seq.), as amended, and the rules and regulations thereunder). 

“Applicable Commitment Fee Rate” means: 

(a) for the period from the Closing Date through June 30, 2018, fifteen (15.00) basis points; and 

(b) thereafter, the number of basis points set forth in the following matrix: 

 

			
	 Average Revolving Credit Availability
	  	 Applicable Commitment Fee Rate

	Greater than thirty-three percent (33%) of the Revolving Credit Commitment	  	15.00 basis points
		
	Less than or equal to thirty-three percent (33%) of the Revolving Credit Commitment	  	20.00 basis points

 The first date on which the Applicable Commitment Fee Rate is subject to change is July 1, 2018. On and after
July 1, 2018, changes to the Applicable Commitment Fee Rate shall be effective on the first day of each fiscal quarter of the Borrower, based upon the Average Revolving Credit Availability for the last thirty (30) days of the prior fiscal
quarter. Notwithstanding anything herein to the contrary, (i) during any period when the Borrower shall have failed to timely deliver the Borrowing Base Certificate pursuant to Section 5.3(a) hereof, or

  
 3 

 
the collateral reporting required pursuant to Section 5.3(f) hereof, until such time as the appropriate Borrowing Base Certificate is delivered, the Applicable Commitment Fee Rate shall, at
the election of the Administrative Agent (which may be retroactively effective to the day upon which the Administrative Agent should have received the Borrowing Base Certificate), be the highest rate per annum indicated in the above pricing grid
regardless of the Average Revolving Credit Availability at such time, and (ii) in the event that any information or certification provided to the Administrative Agent in a Borrowing Base Certificate is shown to be inaccurate, and such
inaccuracy, if corrected, would have led to the application of a different Applicable Commitment Fee Rate for any period (an “Applicable Commitment Fee Period”) than the Applicable Commitment Fee Rate applied for such Applicable Commitment
Fee Period, then (A) the Borrower shall promptly deliver to the Administrative Agent a corrected Borrowing Base Certificate for such Applicable Commitment Fee Period, (B) the Applicable Commitment Fee Rate shall be determined based on the
recalculated Average Revolving Credit Availability (with reference to the corrected Borrowing Base Certificate), and (C) either (1) the Borrower shall promptly pay to the Administrative Agent, for the benefit of the Lenders, the accrued
additional fees owing as a result of an increased Applicable Commitment Fee Rate for such Applicable Commitment Fee Period, or (2) the appropriate Lenders shall reimburse the Borrower for the amount of any additional fees charged as a result of
a decreased Applicable Commitment Fee Rate for such Applicable Commitment Fee Period (unless a Cash Dominion Period shall exist at such time, in which case such amount shall be deposited into the Cash Collateral Account); provided that if the
Obligations under this Agreement have been paid in full the time such inaccuracy is shown to exist, the Borrower shall have no duty to provide any corrected Borrowing Base Certificate or to pay any additional fees pursuant to subpart (C)(1) above,
and the Lenders shall have no duty to refund any additional fees pursuant to subpart (C)(2) above. 
 “Applicable Margin” means:

 (a) for the period from the Closing Date through June 30, 2018, (i) one hundred fifty (150.00) basis points
for Eurodollar Loans and Daily LIBOR Loans, and (ii) and fifty (50.00) basis points for Base Rate Loans; and 

(b) thereafter, the number of basis points set forth in the following matrix: 

 

									
	 Average Revolving Credit Availability
	  	Applicable Basis Points
for
Eurodollar Loans and, 
Daily
LIBOR and Alternate
Currency Loans	 	  	Applicable Basis Points
for Base Rate Loans	 
	 Greater than sixty-six percent (66%) of the Revolving Credit Commitment
	  	 	150.00	 	  	 	50.00	 
	 Less than or equal to sixty-six percent (66%) but greater than thirty-three percent
(33%) of the Revolving Credit Commitment
	  	 	175.00	 	  	 	75.00	 
	 Less than or equal to thirty-three percent (33%) of the Revolving Credit Commitment
	  	 	200.00	 	  	 	100.00	 

  
 4 

 The first date on which the Applicable Margin is subject to change is July 1, 2018. On and after
July 1, 2018, changes to the Applicable Margin shall be effective on the first day of each fiscal quarter of the Borrower, based upon the Average Revolving Credit Availability for the last thirty (30) days of the prior fiscal quarter. The
above pricing matrix does not modify or waive, in any respect, the rights of the Administrative Agent and the Lenders to charge the Default Rate, or the rights and remedies of the Administrative Agent and the Lenders pursuant to Articles VIII and IX
hereof. Notwithstanding anything herein to the contrary, (i) during any period when the Borrower shall have failed to timely deliver the Borrowing Base Certificate pursuant to Section 5.3(a) hereof, or the collateral reporting required
pursuant to Section 5.3(f) hereof, until such time as the appropriate collateral reports and Borrowing Base Certificate are delivered, the Applicable Margin shall, at the election of the Administrative Agent (which may be retroactively
effective to the day upon which the Administrative Agent should have received the Borrowing Base Certificate), be the highest rate per annum indicated in the above pricing grid for Loans of that type, regardless of the Average Revolving Credit
Availability, and (ii) in the event that any information or certification provided to the Administrative Agent in a Borrowing Base Certificate is shown to be inaccurate, and such inaccuracy, if corrected, would have led to the application of a
different Applicable Margin for any period (an “Applicable Margin Period”) than the Applicable Margin applied for such Applicable Margin Period, then (A) the Borrower shall promptly deliver to the Administrative Agent a corrected
Borrowing Base Certificate for such Applicable Margin Period, (B) the Applicable Margin shall be determined based on the recalculated Average Revolving Credit Availability (with reference to the corrected Borrowing Base Certificate), and
(C) either (1) the Borrower shall promptly pay to the Administrative Agent, for the benefit of the Lenders, the accrued additional interest owing as a result of an increased Applicable Margin for such Applicable Margin Period, or
(2) the appropriate Lenders shall reimburse the Borrower for the amount of any additional interest charged as a result of a decreased Applicable Margin for such Applicable Margin Period (unless a Cash Dominion Period shall exist at such time,
in which case such amount shall be deposited into the Cash Collateral Account); provided that if the Obligations have been paid in full the time such inaccuracy is shown to exist, the Borrower shall have no duty to provide any corrected Borrowing
Base Certificate or to pay any additional interest pursuant to subpart (C)(i) above, and the Lenders shall have no duty to refund any additional interest pursuant to subpart (C)(ii) above. 

“Approved Electronic Communication System” means the StuckyNet System or any other equivalent electronic service, whether owned,
operated or hosted by the Administrative Agent, any Affiliate of the Administrative Agent or any other Person. 
 “Approved Fund”
means any Person (other than a natural Person) that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans, bonds and similar extensions of credit in the ordinary course of its activities that is
administered or managed by (a) a Lender, (b) an Affiliate of a Lender, or (c) an entity or an Affiliate of an entity that administers or manages a Lender. 

  
 5 

 “Assignment Agreement” means an Assignment and Assumption Agreement entered into
by a Lender and an Eligible Assignee (with the consent of any party whose consent is required by Section 11.10 hereof), and accepted by the Administrative Agent, in substantially the form of Exhibit E, or any other form approved by the
Administrative Agent. 
 “Average Revolving Credit Availability” means, for any period of thirty (30) consecutive days, the
average daily Revolving Credit Availability in effect during such period, as determined by the Administrative Agent (absent manifest error). 

“Authorized Officer” means a Financial Officer or other individual authorized by a Financial Officer (with evidence of such
authorization delivered to the Administrative Agent) to handle certain administrative matters in connection with this Agreement. 

“Bail-In Action” means the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect of
any liability of an EEA Financial Institution. 
 “Bail-In Legislation” means, with respect to any EEA Member Country implementing
Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law for such EEA Member Country from time to time that is described in the EU Bail-In Legislation Schedule. 

“Bank Product Agreements” means those certain cash management services and other agreements entered into from time to time between a
Company and the Administrative Agent or a Lender (or an Affiliate of a Lender) in connection with any of the Bank Products. 
 “Bank
Product Obligations” means all obligations, liabilities, contingent reimbursement obligations, fees and expenses owing by a Company to the Administrative Agent or any Lender (or an Affiliate of a Lender) pursuant to or evidenced by the Bank
Product Agreements. 
 “Bank Products” means a service or facility extended to a Company by the Administrative Agent or any Lender
(or an Affiliate of a Lender) for (a) credit cards and credit card processing services, (b) debit cards, purchase cards and stored value cards, (c) ACH transactions, and (d) cash management, including controlled disbursement,
accounts or services. 
 “Bankruptcy Code” means Title 11 of the United States Code entitled “Bankruptcy”, as now or
hereafter in effect, or any successor thereto, as hereafter amended. 
 “Base Rate” means, for any day, a rate per annum equal to
the highest of (a) the Prime Rate, (b) one-half of one percent (.50%) in excess of the Federal Funds Effective Rate, and (c) one percent (1%) in excess of the London interbank offered rate for loans in Eurodollars for a period of
one month (or, if such day is not a Business Day, such rate as calculated on the most recent Business Day). Any change in the Base Rate shall be effective immediately from and after such change in the Base Rate. Notwithstanding the foregoing, if at
any time the Base Rate as determined above is less than zero, it shall be deemed to be zero for purposes of this Agreement. 

  
 6 

 “Base Rate Loan” means a Revolving Loan described in Section 2.2(a) hereof,
that shall be denominated in Dollars and on which the Borrower shall pay interest at the Derived Base Rate. 
 “Benchmark Replacement” means the sum of: (a) the alternate benchmark rate (which may include Term SOFR) that
has been selected by the Administrative Agent and the Borrower giving due consideration to (i) any selection or recommendation of a replacement rate or the mechanism for determining such a rate by the Relevant Governmental Body or (ii) any
evolving or then-prevailing market convention for determining a rate of interest as a replacement to the Eurodollar Rate for U.S. Dollar-denominated syndicated credit facilities at such time and (b) the Benchmark Replacement Adjustment;
provided that, if the Benchmark Replacement as so determined would be less than zero, the Benchmark Replacement will be deemed to be zero for the purposes of this Agreement. 

“Benchmark
 Replacement Adjustment” means, with respect to any replacement of the Eurodollar Rate with an Unadjusted Benchmark Replacement for each applicable Interest Period, the spread adjustment, or method for calculating or determining such spread
adjustment (which may be a positive or negative value or zero) that has been selected by the Administrative Agent and the Borrower giving due consideration to (i) any selection or recommendation of a spread adjustment, or method for calculating
or determining such spread adjustment, for the replacement of LIBOR with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body or (ii) any evolving or then-prevailing market convention for determining a spread
adjustment, or method for calculating or determining such spread adjustment, for the replacement of the Eurodollar Rate with the applicable Unadjusted Benchmark Replacement for U.S. Dollar-denominated syndicated credit facilities at such
time. 

“Benchmark
 Replacement Conforming Changes” means, with respect to any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of “Base Rate,” the definition of “Interest
Period,” timing and frequency of determining rates and making payments of interest and other administrative matters) that the Administrative Agent decides may be appropriate to reflect the adoption and implementation of such Benchmark
Replacement and to permit the administration thereof by the Administrative Agent in a manner substantially consistent with market practice (or, if the Administrative Agent decides that adoption of any portion of such market practice is not
administratively feasible or if the Administrative Agent determines that no market practice for the administration of the Benchmark Replacement exists, in such other manner of administration as the Administrative Agent decides is reasonably
necessary in connection with the administration of this Agreement). 
 “Benchmark Replacement Date” means the earlier to occur of the following events with respect to the Eurodollar
Rate: 

(1) in the
case of clause (1) or (2) of the definition of “Benchmark Transition Event,” the later of (a) the date of the public statement or publication of information referenced therein and (b) the date on which the administrator
of the Eurodollar Rate permanently or indefinitely ceases to provide the Eurodollar Rate; or 

  
 7 

(2) in the
case of clause (3) of the definition of “Benchmark Transition Event,” the date of the public statement or publication of information referenced therein. 

“Benchmark
 Transition Event” means the occurrence of one or more of the following events with respect to the Eurodollar Rate: 

(1) a public
statement or publication of information by or on behalf of the administrator of the Eurodollar Rate announcing that such administrator has ceased or will cease to provide the Eurodollar Rate, permanently or indefinitely, provided that, at the time
of such statement or publication, there is no successor administrator that will continue to provide the Eurodollar Rate ; 

(2) a public
statement or publication of information by the regulatory supervisor for the administrator of the Eurodollar Rate, the U.S. Federal Reserve System, an insolvency official with jurisdiction over the administrator for the Eurodollar Rate, a resolution
authority with jurisdiction over the administrator for the Eurodollar Rate or a court or an entity with similar insolvency or resolution authority over the administrator for the Eurodollar Rate, which states that the administrator of the Eurodollar
Rate has ceased or will cease to provide the Eurodollar Rate permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide the Eurodollar Rate;
or 

(3) a public
statement or publication of information by the regulatory supervisor for the administrator of the Eurodollar Rate or a Relevant Governmental Body announcing that the Eurodollar Rate is no longer representative. 

“Benchmark
 Transition Start Date” means (a) in the case of a Benchmark Transition Event, the earlier of (i) the applicable Benchmark Replacement Date and (ii) if such Benchmark Transition Event is a public statement or publication of
information of a prospective event, the ninetieth
(90th) day prior to the expected date of such event as of such public statement or publication of information (or if the
expected date of such prospective event is fewer than ninety (90) days after such statement or publication, the date of such statement or publication) and (b) in the case of an Early Opt-in Election, the date specified by the
Administrative Agent or the Required Lenders, as applicable, by notice to the Borrower, the Administrative Agent (in the case of such notice by the Required Lenders) and the Lenders. 

“Benchmark
 Unavailability Period” means, if a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to the Eurodollar Rate and solely to the extent that the Eurodollar Rate has not been replaced with a Benchmark
Replacement, the period (a) beginning at the time that such Benchmark Replacement Date has occurred if, at such time, no Benchmark Replacement has replaced the Eurodollar Rate for all purposes hereunder in accordance with Section 3.6 and
(b) ending at the time that a Benchmark Replacement has replaced the Eurodollar Rate for all purposes hereunder pursuant to Section 3.6. 

“Borrower” means that term as defined in the first paragraph of this Agreement. 

  
 8 

 “Borrowing Base” means an amount equal to the total of the following: 

(a) up to eighty-five percent (85%) of the amount due and owing on Eligible Accounts Receivable; plus 

(b) the lesser of (A) up to eighty percent (80%) of the amount due and owing on Eligible Unbilled Accounts
Receivable, and (B) Seven Million Dollars ($7,000,000); plus 
 (c) the lesser of (A) up to eighty percent
(85%) of the amount due and owing on Eligible Extended Terms Account Receivable, and (B) Two Million Five Hundred Thousand Dollars ($2,500,000); minus 

(d) Reserves, if any; 
 provided
that, anything herein to the contrary notwithstanding, the Administrative Agent shall at all times have the right to modify or reduce such percentages, dollar amount caps or other components of the Borrowing Base from time to time, in its Permitted
Discretion; provided that the Administrative Agent shall give the Borrower at least one Business Day’s prior notice of any such reduction or modification. For the avoidance of doubt, it is acknowledged and agreed that any calculation of
modification or reduction made pursuant to more than one clause above shall be made without duplication. 
 “Beneficial Ownership Certification” means a certification regarding beneficial ownership required by the
Beneficial Ownership Regulation. 
 “Beneficial Ownership Regulation” means 31 C.F.R. § 1010.230. 
 “Borrowing Base Certificate” means a borrowing base certificate submitted through
the Approved Electronic Communication System, or a borrowing base certificate in such other form as agreed to in writing by the Administrative Agent and the Borrower. 

“Borrowing Base Company” means each Company listed on Schedule 4 hereto, and each additional Company that shall become a
Borrowing Base Company pursuant to Section 2.14 hereof. 
 “Business Day” means a day that is not a Saturday, a Sunday or anothera day of the year on which national banks are authorized or
required to close in Cleveland, Ohio, and, in addition,
(a) if the applicable Business Day relates to a
Eurodollar Loan, is a day of the year on which dealings in Dollar deposits are carried on in the London interbank Eurodollar
market, and (b) if the applicable Business Day relates to an Alternate Currency, is a day of the year on
which dealings in deposits are carried on in the relevant Alternate Currency. 

  
 9 

 “Capital Distribution” means a payment made, liability incurred or other
consideration (other than any stock dividend, stock split or other equity distribution payable only in capital stock or other equity of such Company) given by a Company to any Person that is not a Company, (a) for the purchase, acquisition,
redemption, repurchase, payment or retirement of any capital stock or other equity interest of such Company, or (b) as a dividend, return of capital or other distribution in respect of such Company’s capital stock or other equity interest.

 “Capitalized Lease Obligations” means obligations of the Companies for the payment of rent for any real or personal property
under leases or agreements to lease that, in accordance with GAAP, have been or should be capitalized on the books of the lessee and, for purposes hereof, the amount of any such obligation shall be the capitalized amount thereof determined in
accordance with GAAP. 
 “Cash Collateral Account” means a commercial Deposit Account designated as a “cash collateral
account” and maintained by one or more Credit Parties with the Administrative Agent, without liability by the Administrative Agent or the Lenders to pay interest thereon, from which account the Administrative Agent, on behalf of the Lenders,
shall have the exclusive right during the existence of an Event of Default or Cash Dominion Period to withdraw funds until all of the Secured Obligations are paid in full. 

“Cash Collateralize” means to deposit into a cash collateral account maintained with (or on behalf of) the Administrative Agent, and
under the sole dominion and control of the Administrative Agent, or to pledge and deposit with or deliver to the Administrative Agent, for the benefit of the Issuing Lender, as collateral for any Letter of Credit Exposure or obligations of the
Lenders to fund participations in respect of any Letter of Credit Exposure, cash or deposit account balances, or, if the Administrative Agent and the Issuing Lender shall agree in their sole discretion, other credit support, in each case pursuant to
documentation in form and substance satisfactory to the Administrative Agent and the Issuing Lender. For the purposes of this Agreement, “Cash Collateral” shall have a meaning correlative to the foregoing and shall include the proceeds of
such cash collateral and other credit support. 
 “Cash Dominion De-Activation Date” means, after a Cash Dominion Effective Date,
the last day of a thirty (30) consecutive day period during which (a) the Revolving Credit Availability shall have been, at all times during such period, greater than Six Million Seven Hundred Fifty Thousand Dollars ($6,750,000), and
(b) no Event of Default shall have occurred or be continuing; provided that (i) no more than three Cash Dominion De-Activation Dates may occur, and (ii) the Required Lenders, in waiving any Event of Default that has caused the
existence of a Cash Dominion Period, may also specify that such waiver ends such Cash Dominion Period and that the ending of such Cash Dominion Period shall not constitute a Cash Dominion De-Activation Date for purposes of the preceding clause (i).

 “Cash Dominion Effective Date” means any date on which (a) an Event of Default pursuant to Section 8.12 hereof
occurs, (b) the Administrative Agent or the Required Lenders give written notice to the Borrower that any other Event of Default exists and is being deemed to trigger a Cash Dominion Period, or (c) the Revolving Credit Availability is less
than Six Million Seven Hundred Fifty Thousand Dollars ($6,750,000). 

  
 10 

 “Cash Dominion Period” means each period commencing on a Cash Dominion Effective
Date and ending on the first Cash Dominion De-Activation Date occurring thereafter; provided that if three Cash Dominion Effective Dates occur, the Cash Dominion Period that begins on the next Cash Dominion Effective Date shall continue
notwithstanding the occurrence of a Cash Dominion De-Activation Date. 
 “Cash Security” means all cash, instruments, Deposit
Accounts, Securities Accounts and cash equivalents, in each case whether matured or unmatured, whether collected or in the process of collection, upon which a Credit Party presently has or may hereafter have any claim or interest, wherever located,
including but not limited to any of the foregoing that are presently or may hereafter be existing or maintained with, issued by, drawn upon by, or in the possession of the Administrative Agent or any Lender. 

“CFC” means a Controlled Foreign Corporation, as such term is defined in Section 957 of the Code. 

“CFC Holding Company” means any Domestic Subsidiary that is a disregarded entity for U.S. tax purposes and substantially all of the
assets of which consist of the equity interests or other securities of one or more CFCs. 
 “Change in Control” means: 

(a) the acquisition of, or, if earlier, the shareholder or director approval of the acquisition of, ownership or voting
control, directly or indirectly, beneficially (within the meaning of Rules 13d-3 and 13d-5 of the Exchange Act) or of record, on or after the Closing Date, by any Person or group (within the meaning of Sections 13d and 14d of the Exchange Act), of
shares representing more than thirty percent (30%) of the aggregate ordinary Voting Power represented by the issued and outstanding equity interests of the Borrower; 

(b) if, at any time during any period of twenty-four (24) consecutive months, a majority of the members of the board of
directors of the Borrower cease to be composed of individuals (i) who were members of that board of directors on the first day of such period, (ii) whose election or nomination to that board of directors was approved by individuals
referred to in subpart (i) hereof that constituted, at the time of such election or nomination, at least a majority of that board of directors, or (iii) whose election or nomination to that board of directors was approved by individuals
referred to in subparts (i) and (ii) hereof that constituted, at the time of such election or nomination, at least a majority of that board of directors; 

(c) if the Borrower shall cease to own, directly or indirectly, one hundred percent (100%) of the aggregate ordinary
Voting Power represented by the issued and outstanding equity interests of each Subsidiary Guarantor of Payment, except if as a result of merger, amalgamation or other disposition that is not prohibited by Section 5.12 hereof; or 

(d) the occurrence of a change in control, or other term of similar import used therein, as defined in any Material
Indebtedness Agreement that permits the holder thereof to accelerate or require the purchase or mandatory prepayment of the Indebtedness under such Material Indebtedness Agreement. 

  
 11 

 “Change in Law” means the occurrence, after the Closing Date, of any of the
following: (a) the adoption or taking effect of any Law, rule, regulation or treaty, (b) any change in any Law, rule, regulation or treaty or in the administration, interpretation, implementation or application thereof by any Governmental
Authority, or (c) the making or issuance of any request, rule, guideline or directive (whether or not having the force of law) by any Governmental Authority; provided that, notwithstanding anything herein to the contrary, (i) the
Dodd-Frank Act and all requests, rules, guidelines or directives thereunder, or issued in connection therewith, and (ii) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on
Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change in Law”, regardless of the date enacted,
adopted or issued. 
 “Closing Date” means the effective date of this Agreement as set forth in the first paragraph of this
Agreement. 
 “Closing Fee Letter” means the Closing Fee Letter between the Borrower and the Administrative Agent, dated as of the
Closing Date. 
 “Code” means the Internal Revenue Code of 1986, as amended, together with the rules and regulations promulgated
thereunder. 
 “Collateral” means (a) all of the Borrower’s existing and future (i) personal property,
(ii) Accounts, Investment Property, instruments, contract rights, chattel paper, documents, supporting obligations, letter-of-credit rights, Pledged Securities, Pledged Notes (if any), Commercial Tort Claims, General Intangibles, Inventory and
Equipment, (iii) funds now or hereafter on deposit in the Cash Collateral Accounts, if any, and (iv) Cash Security; and (b) Proceeds and products of any of the foregoing; provided that Collateral shall not include any Excluded
Properties. 
 “Collection” means any payment made to one or more Borrowing Base Companies from an Account Debtor or customer of
one or more Borrowing Base Companies including, but not limited to, cash, checks, drafts and any other form of payment. 
 “Commercial
Tort Claim” means a commercial tort claim, as that term is defined in the U.C.C. (Schedule 7.5 hereto lists all Commercial Tort Claims of the Credit Parties in existence as of the Closing Date.) 

“Commitment” means the obligation hereunder of the Lenders, during the Commitment Period, to make Loans and to participate in Swing
Loans and the issuance of Letters of Credit pursuant to the Revolving Credit Commitment, up to the Total Commitment Amount. 

  
 12 

 “Commitment Percentage” means, for each Lender, the percentage set forth opposite
such Lender’s name under the column headed “Commitment Percentage”, as listed in Schedule 1 hereto (taking into account any assignments pursuant to Section 11.10 hereof). 

“Commitment Period” means the period from the Closing Date to December 2022,
20202022
 or such earlier date on which the Commitment shall have been terminated pursuant to Article IX hereof. 

“Commodity Exchange Act” means the Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended from time to time, together with
the rules and regulations promulgated thereunder. 
 “Communications” means, that term as defined in Section 10.17(b) hereof.

 “Companies” means the Borrower and all Subsidiaries. 

“Company” means the Borrower or a Subsidiary. 

“Compliance Certificate” means a Compliance Certificate in the form of the attached Exhibit D. 

“Concentration Account” means a commercial Deposit Account designated “depository concentration account” and maintained by
the Borrower with the Administrative Agent without liability by the Administrative Agent to pay interest thereon, which account shall be under the exclusive control of the Administrative Agent during the existence of an Event of Default or Cash
Dominion Period and, other than during a Cash Dominion Period, the Administrative Agent shall transfer the funds therein to the Operating Account, and during a Cash Dominion Period, the Administrative Agent shall have the exclusive right to withdraw
funds and transfer such funds to the Cash Collateral Account. 
 “Confidential Information” means all confidential or proprietary
information about the Companies that has been furnished by any Company to the Administrative Agent or any Lender, whether furnished before or after the Closing Date and regardless of the manner in which it is furnished, but does not include any such
information that (a) is or becomes generally available to the public other than as a result of a disclosure by the Administrative Agent or such Lender not permitted by this Agreement, (b) was available to the Administrative Agent or such
Lender on a nonconfidential basis prior to its disclosure to the Administrative Agent or such Lender, or (c) becomes available to the Administrative Agent or such Lender on a nonconfidential basis from a Person other than any Company. 

“Connection Income Taxes” means Other Connection Taxes that are imposed on or measured by net income (however denominated) or that
are franchise Taxes or branch profits Taxes. 

  
 13 

 “Consideration” means, in connection with an Acquisition, the aggregate
consideration paid or to be paid, including borrowed funds, cash, deferred payments, the issuance of securities or notes, the assumption or incurring of Indebtedness (or obligations to give such foregoing consideration in the future), the payment of
consulting fees (except to the extent constituting reasonable compensation for services rendered) or fees for a covenant not to compete and any other consideration paid or to be paid to, or on behalf of, the seller or its equity holders for such
Acquisition. 
 “Consolidated” means the resultant consolidation of the financial statements of the Borrower and its Subsidiaries
in accordance with GAAP, including principles of consolidation consistent with those applied in preparation of the consolidated financial statements referred to in Section 6.13 hereof. 

“Consolidated Capital Expenditures” means, for any period, the amount of capital expenditures of the Borrower (specifically
including any software development costs that are capitalized), as determined on a Consolidated basis. 
 “Consolidated Depreciation
and Amortization Charges” means, for any period, the aggregate of all depreciation and amortization charges for fixed assets, leasehold improvements and general intangibles (specifically including goodwill) of the Borrower for such period, as
determined on a Consolidated basis. 
 “Consolidated EBITDA” means, for any period, as determined on a Consolidated basis,
Consolidated Net Earnings for such period (a) plus, without duplication, the aggregate amounts deducted in determining such Consolidated Net Earnings in respect of (i) Consolidated Interest Expense, (ii) Consolidated Income Tax Expense, (iii)
Consolidated Depreciation and Amortization Charges, (iv) non-cash expenses incurred in connection with stock-based compensation, (v) net losses from divested or discontinued operations, (vi) severance charges incurred by the Companies in an
aggregate amount not to exceed Five Million Dollars ($5,000,000) during the Commitment Period, and (vii) non-recurring non-cash losses not incurred in the ordinary course of business and other non-cash items reducing Consolidated Net Earnings, minus
(b) to the extent included in Consolidated Net Earnings for such period, (i) net gains from divested or discontinued operations, and (ii) non-recurring non-cash gains not incurred in the ordinary course of business and other non-cash items
increasing Consolidated Net Earnings; provided that, for any period during which an Acquisition is made pursuant to Section 5.13 hereof, Consolidated EBITDA shall be recalculated to include the “EBITDA” of the acquired company (with
appropriate pro forma adjustments acceptable to the Administrative Agent and calculated on the same basis as set forth in this definition) as if such Acquisition occurred at the beginning of such period, and the Borrower during the twelve (12) month
period following the date of any such Acquisition may include in the calculation of Consolidated EBITDA the necessary portion of the adjusted historical results of the entity acquired in such Acquisition that were achieved prior to the applicable
date of acquisition for such time period as is necessary for Borrower to have figures on a trailing four fiscal quarter basis from the date of determination with respect to such acquired entity. 

“Consolidated Fixed Charges” means, for any period, as determined on a Consolidated basis, the aggregate, without duplication, of
(a) Consolidated Interest Expense paid in cash, and (b) principal payments on Consolidated Funded Indebtedness (other than optional prepayments of the Revolving Loans), including payments on Capitalized Lease Obligations. 

  
 14 

 “Consolidated Funded Indebtedness” means, at any date, all Indebtedness
(including, but not limited to, short-term, long-term and Subordinated Indebtedness, if any, but excluding (a) Indebtedness described solely in clauses (c) and (e) of the definition of Indebtedness, and (b) Indebtedness
consisting of undrawn amounts under letters of credit) of the Borrower, as determined on a Consolidated basis. 
 “Consolidated Income
Tax Expense” means, for any period, all provisions for taxes based on the gross or net income of the Borrower (including, without limitation, any additions to such taxes, and any penalties and interest with respect thereto), as determined on a
Consolidated basis. 
 “Consolidated Interest Expense” means, for any period, the interest expense (including, without limitation,
the “imputed interest” portion of Capitalized Lease Obligations, synthetic leases and asset securitizations, all commissions, discounts and other fees and charges owed with respect to letters of credit and bankers’ acceptance
financing and net costs under Hedge Agreements and excluding deferred financing costs) of the Borrower for such period, as determined on a Consolidated basis. 

“Consolidated Net Earnings” means, for any period, the net income (loss) of the Borrower for such period, as determined on a
Consolidated basis. 
 “Consolidated Net Worth” means, at any date, the stockholders’ equity of the Borrower, determined as
of such date on a Consolidated basis. 
 “Consolidated Unfunded Capital Expenditures” means, for any period, Consolidated Capital
Expenditures that are not directly financed by the Companies with long-term Indebtedness (other than Revolving Loans) or Capitalized Lease Obligations, as determined on a Consolidated basis. 

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

“Control Agreement” means a Deposit Account Control Agreement or Securities Account Control Agreement. 

“Controlled Disbursement Account” means a commercial Deposit Account designated “controlled disbursement account” and
maintained by one or more Credit Parties with the Administrative Agent, without liability by the Administrative Agent to pay interest thereon. 

“Controlled Group” means a Company and each Person required to be aggregated with a Company under Code Section 414(b), (c),
(m) or (o). 

  
 15 

 “Credit Event” means the making by the Lenders of a Loan, the conversion by the
Lenders of a Base Rate Loan to a Daily LIBOR Loan or a Eurodollar Loan, the conversion of a Daily LIBOR Loan to a Eurodollar Loan, the continuation by the Lenders of a Eurodollar Loan after the end of the applicable Interest Period, the making by
the Swing Line Lender of a Swing Loan, or the issuance (or amendment or renewal) by the Issuing Lender of a Letter of Credit. 

“Credit Exposure” means, at any time, the sum of (a) the aggregate principal amount of all Revolving Loans outstanding, and
(b) the Letter of Credit Exposure. 
 “Credit Party” means the Borrower, and any Subsidiary or other Person that is a
Guarantor of Payment. 
 “Daily Interest Period” means, with respect to a Daily LIBOR Loan, the period commencing on the date such
Daily LIBOR Loan is made and ending on the next day, with successive Daily Interest Periods automatically commencing daily thereafter. 

“Daily LIBOR Loan” means a Revolving Loan described in Section 2.2(a) hereof, that shall be denominated in Dollars and on which
the Borrower shall pay interest at the Derived Daily LIBOR Rate. 
 “Daily LIBOR Rate” means, for any Daily Interest Period with
respect to a Daily LIBOR Loan, the per annum rate of interest (rounded upward, if necessary, to the nearest 1/16th of 1%) at which, determined by the Administrative Agent in accordance with its usual procedures (which determination shall be
conclusive absent manifest error) as of approximately 11:00 A.M. (London time) on the same day as the beginning of such Daily Interest Period, Dollar deposits in immediately available funds in an amount comparable to such Daily LIBOR Loan and with a
maturity of one day are offered to prime banks by leading banks in the London interbank market. Notwithstanding the foregoing, if at any time the Daily LIBOR Rate as determined above is less than zero, it shall be deemed to be zero for purposes of
this Agreement. 
 “Debtor Relief Laws” means the Bankruptcy Code, and all other liquidation, conservatorship, bankruptcy,
assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the United States or other applicable jurisdictions, from time to time in effect. 

“Default” means an event or condition that constitutes, or with the lapse of any applicable grace period or the giving of notice or
both would constitute, an Event of Default, and that has not been waived by the Required Lenders (or, if required hereunder, all of the Lenders) in writing. 

“Default Rate” means (a) with respect to any Loan or other Obligation for which a rate is specified, a rate per annum equal to
two percent (2%) in excess of the rate otherwise applicable thereto, and (b) with respect to any other amount, if no rate is specified or available, a rate per annum equal to two percent (2%) in excess of the Derived Base Rate from
time to time in effect. 

  
 16 

 “Defaulting Lender” means, subject to Section 11.11(b) hereof, any Lender
that (a) has failed to (i) fund all or any portion of its Loans within two Business Days of the date such Loans were required to be funded hereunder, unless such Lender notifies the Administrative Agent and the Borrower in writing that
such failure is the result of such Lender’s determination that one or more conditions precedent to funding (each of which conditions precedent, together with any applicable default, shall be specifically identified in such writing) has not been
satisfied, or (ii) pay to the Administrative Agent, the Issuing Lender, the Swing Line Lender or any other Lender any other amount required to be paid by it hereunder (including in respect of its participation in Letters of Credit or Swing
Loans) within two Business Days of the date when due, (b) has notified the Borrower, the Administrative Agent, the Issuing Lender or the Swing Line Lender in writing that it does not intend to comply with its funding obligations under this
Agreement, or has made a public statement to that effect (unless such writing or public statement relates to such Lender’s obligation to fund a Loan hereunder and states that such position is based on such Lender’s determination that a
condition precedent to funding (which condition precedent, together with any applicable default, shall be specifically identified in such writing or public statement) cannot be satisfied), (c) has failed, within three Business Days after
written request by the Administrative Agent or the Borrower, to confirm in writing to the Administrative Agent and the Borrower that it will comply with its prospective funding obligations hereunder (provided that such Lender shall cease to be a
Defaulting Lender pursuant to this subpart (c) upon receipt of such written confirmation by the Administrative Agent and the Borrower), or (d) has, or has a direct or indirect parent company that has, (i) become the subject of a
proceeding under any Debtor Relief Law, (ii) had appointed for it a receiver, custodian, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its business or
assets, including the Federal Deposit Insurance Corporation or any other state or federal regulatory authority acting in such a capacity, or (iii) become the subject of a Bail-In Action; provided that, a Lender shall not be a Defaulting Lender
solely by virtue of the ownership or acquisition of any equity interest in that Lender, or any direct or indirect parent company thereof, by a Governmental Authority, so long as such ownership interest does not result in or provide such Lender with
immunity from the jurisdiction of courts within the United States, or from the enforcement of judgments or writs of attachment on its assets, or permit such Lender (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any
contracts or agreements made with such Lender. Any determination by the Administrative Agent that a Lender is a Defaulting Lender under any one or more of subparts (a) through (d) above shall be conclusive and binding absent manifest
error, and such Lender shall be deemed to be a Defaulting Lender (subject to Section 11.11(b) hereof) upon delivery of written notice of such determination to the Borrower, the Issuing Lender, the Swing Line Lender and each Lender. 

“Derived Alternate
 Currency Rate” means a rate per annum equal to the sum of (a) the Applicable Margin (from time to time in effect) for Alternate Currency Loans, and (b) the Alternate Currency Rate applicable to the relevant Alternate
Currency. 
 “Deposit Account” means a deposit account, as that term
is defined in the U.C.C. 
 “Deposit Account Control Agreement” means each Deposit Account Control Agreement (or similar agreement
with respect to a Deposit Account that is not an Excluded Deposit Account) among a Credit Party, the Administrative Agent and a depository institution, to be in form and substance satisfactory to the Administrative Agent, as the same may from time
to time be amended, restated or otherwise modified. 

  
 17 

 “Derived Base Rate” means a rate per annum equal to the sum of the Applicable
Margin (from time to time in effect) for Base Rate Loans plus the Base Rate. 
 “Derived Daily LIBOR Rate” means a rate per annum
equal to the sum of the Applicable Margin (from time to time in effect) for Daily LIBOR Loans plus the Daily LIBOR Rate. 
 “Derived
Eurodollar Rate” means a rate per annum equal to the sum of the Applicable Margin (from time to time in effect) for Eurodollar Loans plus the Eurodollar Rate. 

“Dodd-Frank Act” means the Dodd–Frank Wall Street Reform and Consumer Protection Act (Pub.L. 111-203, H.R. 4173) signed into
law on July 21, 2010, as amended from time to time. 
 “Dollar” or the $ sign means lawful currency of the United States.

 “Domestic Subsidiary” means a Subsidiary that is not a Foreign Subsidiary. 

“Dormant Subsidiary” means a Company that (a) is not a Credit Party or the direct or indirect equity holder of a Credit Party,
(b) has aggregate assets of less than Two Hundred Fifty Thousand Dollars ($250,000) (or the foreign currency equivalent of such amount), (c) has no direct or indirect Subsidiaries with aggregate assets, for such Company and all such
Subsidiaries, of more than Two Hundred Fifty Thousand Dollars ($250,000) (or the foreign currency equivalent of such amount), and (d) is not a Guarantor of any Indebtedness incurred pursuant to any Material Indebtedness Agreement entered into
by a Credit Party. 

“Dollar
Equivalent” means (a) with respect to an Alternate Currency Loan or Letter of Credit denominated in an Alternate Currency, the Dollar equivalent of the amount of such Alternate Currency Loan or Letter of Credit denominated in such
Alternate Currency, determined by the Administrative Agent on the basis of its spot rate at approximately 11:00 A.M. (London time) on the date two Business Days before the date of such Alternate Currency Loan or issuance of such Letter of Credit
denominated in such Alternate Currency, for the purchase of the relevant Alternate Currency with Dollars for delivery on the date of such Alternate Currency Loan or Letter of Credit, and (b) with respect to any other amount, if such amount is
denominated in Dollars, then such amount in Dollars and, otherwise the Dollar equivalent of such amount, determined by the Administrative Agent on the basis of its spot rate at approximately 11:00 A.M. (London time) on the date for which the Dollar
equivalent amount of such amount is being determined, for the purchase of the relevant Alternate Currency with Dollars for delivery on such date; provided that, in calculating the Dollar Equivalent for purposes of determining (i) the
Borrower’s obligation to prepay Loans and Letters of Credit pursuant to Section 2.10 hereof, or (ii) the Borrower’s ability to request additional Loans or Letters of Credit pursuant to the Commitment, the Administrative Agent
may, in its discretion, on any Business Day selected by the Administrative Agent (prior to payment in full of the Obligations), calculate the Dollar Equivalent of each such Loan or Letter of Credit. The Administrative Agent shall notify the Borrower of the Dollar Equivalent
of such Alternate Currency Loan or any other amount, at the time that such Dollar Equivalent shall have been determined. 

  
 18 

“Early
Opt-in Election” means the occurrence of: 
 (i) a determination by the Administrative Agent that U.S. Dollar-denominated syndicated credit facilities being executed
at such time, or that include language similar to that contained in Section 3.6 are being executed or amended, as applicable, to incorporate or adopt a new benchmark interest rate to replace the Eurodollar Rate, and 

(ii) the
election by the Administrative Agent to declare that an Early Opt-in Election has occurred and the
provision by the Administrative Agent of written notice of such election to the Borrower and the
Lenders. 

“Early Termination Event” means that term as defined in Section 2.8(e) hereof. 

“EEA Financial Institution” means (a) any credit institution or investment firm established in any EEA Member Country which is
subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in subpart (a) of this definition, or (c) any financial institution
established in an EEA Member Country that is a subsidiary of an institution described in subparts (a) or (b) of this definition and is subject to consolidated supervision with its parent. 

“EEA Member Country” means any of the member states of the European Union, Iceland, Liechtenstein, and Norway. 

“EEA Resolution Authority” means any public administrative authority or any person entrusted with public administrative authority of
any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution. 
 “Eligible
Assignee” means any Person that meets the requirements to be an assignee under Section 11.10(b)(iii), (v) and (vi) hereof (subject to such consents, if any, as may be required under Section 11.10 (b)(iii) hereof). 

“Eligible Account Receivable” means an Account that is an account receivable (i.e., each specific invoice) of a Borrowing Base
Company that, at all times until it is collected in full, continuously meets the following requirements: 
 (a) is not
subject to any claim for credit, allowance or adjustment by the Account Debtor or any defense, dispute, set-off, retention payment, chargeback or counterclaim; provided that, that such Account Debtor has entered into an agreement acceptable to the
Administrative Agent waiving all of such rights, then the Administrative Agent, in its sole discretion, may permit such Account to be an Eligible Account Receivable; 

  
 19 

 (b) arose in the ordinary course of business of such Borrowing Base Company
from the performance (fully completed) of services rendered to the Account Debtor, and both of the following are true: (i) not more than ninety (90) days have elapsed since the invoice date, and (ii) not more than sixty (60) days
have elapsed since the date payment was due; 
 (c) is not owing from an Account Debtor with respect to which any Borrowing
Base Company has received any notice or has any knowledge of such Account Debtor’s insolvency or bankruptcy, or that such Account Debtor has suspended normal business operations, dissolved, liquidated or terminated its existence; 

(d) is not subject to a collateral assignment, pledge, mortgage, lien or security interest of any type except that granted to
or in favor of the Administrative Agent, for the benefit of the Lenders; 
 (e) does not relate to any goods repossessed,
lost, damaged, rejected or returned, or acceptance of which has been revoked or refused; 
 (f) is not evidenced by a
promissory note or any other instrument or by chattel paper; 
 (g) has not been determined by the Administrative Agent to be
unsatisfactory in any respect, in the exercise of its Permitted Discretion; 
 (h) is not a Government Account Receivable,
unless the security interest of the Administrative Agent, for the benefit of the Lenders, in such Government Account Receivable is filed in accordance with the Federal Assignment of Claims Act; 

(i) is not owing from another Company, an Affiliate of a Company; 

(j) is not a Foreign Account Receivable unless such Foreign Account Receivable is backed by a letter of credit or other credit
support reasonably acceptable to the Administrative Agent; 
 (k) is not owing from an Account Debtor that has failed to pay
more than fifty percent (50%) of its currently outstanding accounts receivable within either or both of the following (i) ninety (90) days of the invoice date, or (ii) sixty (60) days of the date payment was due; 

(l) with respect to an Account Debtor that, together with its Affiliates, owes one or more Borrowing Base Companies more than
twenty-five percent (25%) (or, with respect to Investment Grade Account Debtors, forty percent (40%)) of all accounts receivable of one or more Borrowing Base Companies, is not the portion of the accounts receivable that represents the
amount in excess of twenty-five percent (25%) (or, with respect to Investment Grade Account Debtors, forty percent (40%)) of such accounts receivable; 

  
 20 

 (m) is an Account in which the Administrative Agent, for the benefit of the
Lenders, has a valid and enforceable first priority security interest; 
 (n) has not arisen in connection with sales of
goods that were shipped or delivered to an Account Debtor on consignment, a sale or return basis, a guaranteed sale basis, a bill and hold basis, or on the basis of any similar understanding; 

(o) is not subject to any provision prohibiting assignment of the right to payment or requiring notice of or consent to such
assignment (except provisions that are not enforceable under the Uniform Commercial Code in the applicable jurisdiction); 

(p) is not owing from an Account Debtor located in a State or province that requires that such Borrowing Base Company, in order
to sue such Account Debtor in such jurisdiction’s courts or otherwise enforce its remedies against such Account Debtor through judicial process, to either (i) qualify to do business in such jurisdiction or (ii) file a report with the
taxation division of such jurisdiction for the then current year, unless, in each case, such Borrowing Base Company has fulfilled such requirements to the extent applicable for the then current year or fulfilled such other requirements that permit
such Credit Party to bring suit or otherwise enforce its remedies against such Account Debtor through judicial process; 

(q) is not an Account with respect to which any of the representations, warranties, covenants and agreements contained in this
Agreement or any of the Loan Documents are not or have ceased to be complete and correct, in any material respect or have been materially breached; 

(r) is not an Account that represents a progress/milestone billing (for the purposes hereof, “progress billing” means
any invoice for goods sold or leased or services rendered under a contract or agreement pursuant to which the Account Debtor’s obligation to pay such invoice is conditioned upon such Credit Party’s completion of any further performance
under the contract or agreement); 
 (s) is not owing by any State or any department, agency, or instrumentality thereof
unless such Borrowing Base Company has complied with any applicable statutory or regulatory requirements thereof in respect of the security interest of the Administrative Agent, for the benefit of the Lenders, as granted hereunder; 

(t) is not owing from an Account Debtor that is also a supplier to, or creditor of, any Company to the extent of the amount
owing to such supplier or creditor; 
 (u) does not represent a manufacturer’s or supplier’s credits, discounts,
incentive plans or similar arrangements entitling any Borrowing Base Company to discounts on future purchases therefrom, but only to the extent of such credits, discounts, plans or arrangements; and 

(v) is not owing from an Account Debtor that is a natural person (or the estate of a natural person). 

  
 21 

 “Eligible Extended Terms Account Receivable” means an Account that (a) meets
all of the all the requirements for an Eligible Accounts Receivable other than subpart (b)(i) of the definition of Eligible Accounts Receivable, and (b) not more than one hundred twenty (120) days have elapsed since the invoice date. 

“Eligible Unbilled Receivable” means, for any date, an Account that is an account receivable of a Borrowing Base Company that,
(a) if it had been billed prior to the end of the immediately preceding month, would have met all the requirements for an Eligible Account Receivable, and (b) is to be billed less than thirty (30) days after the applicable service has
been fully rendered. 
 “Environmental Laws” means all provisions of law (including the common law), statutes, ordinances, codes,
rules, guidelines, policies, procedures, orders-in-council, regulations, permits, licenses, judgments, writs, injunctions, decrees, orders, authorizations, certificates, approvals, registrations, awards and standards promulgated by a Governmental
Authority or by any court, agency, instrumentality, regulatory authority or commission of any of the foregoing concerning environmental health or safety and protection of natural resources, or regulation of the discharge of substances including
without limitation Hazardous Materials into, the environment. 
 “Environmental Permits” means all permits, licenses,
authorizations, certificates, approvals or registrations required by any Governmental Authority under any Environmental Laws. 

“Equipment” means equipment, as that term is defined in the U.C.C. 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the regulations promulgated
pursuant thereto. 
 “ERISA Event” means (a) the existence of a condition or event with respect to an ERISA Plan that
presents a risk of the imposition of an excise tax or any other liability on a Company or of the imposition of a Lien on the assets of a Company; (b) the engagement by a Company in a non-exempt “prohibited transaction” (as defined
under ERISA Section 406 or Code Section 4975) or a breach of a fiduciary duty under ERISA that could result in liability to a Company; (c) the application by a Controlled Group member for a waiver from the minimum funding requirements
of Code Section 412 or ERISA Section 302 or a Controlled Group member is required to provide security under Code Section 412(c)(4) or ERISA Section 302(c)(4); (d) the occurrence of a Reportable Event with respect to any
Pension Plan as to which notice is required to be provided to the PBGC; (e) the withdrawal by a Controlled Group member from a Multiemployer Plan in a “complete withdrawal” or a “partial withdrawal” (as such terms are
defined in ERISA Sections 4203 and 4205, respectively); (f) the involvement of, or occurrence or existence of any event or condition that makes likely the involvement of, a Multiemployer Plan in any reorganization under ERISA Section 4241;
(g) the failure of an ERISA Plan (and any related trust) that is intended to be qualified under Code Sections 401 and 501 to be so qualified 

  
 22 

 or the failure of any “cash or deferred arrangement” under any such ERISA Plan to meet the
requirements of Code Section 401(k); (h) the taking by the PBGC of any steps to terminate a Pension Plan or appoint a trustee to administer a Pension Plan, or the taking by a Controlled Group member of any steps to terminate a Pension
Plan; (i) the failure by a Controlled Group member or an ERISA Plan to satisfy any requirements of law applicable to an ERISA Plan; (j) the commencement, existence or threatening of a claim, action, suit, audit or investigation with
respect to an ERISA Plan, other than a routine claim for benefits; or (k) any incurrence by or any expectation of the incurrence by a Controlled Group member of any liability for post-retirement benefits under any Welfare Plan, other than as
required by ERISA Section 601, et. seq. or Code Section 4980B. 
 “ERISA Plan” means an “employee benefit
plan” (within the meaning of ERISA Section 3(3)) that a Controlled Group member at any time sponsors, maintains, contributes to, has liability with respect to or has an obligation to contribute to such plan. 

“EU Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any
successor entity), as in effect from time to time. 
 “Eurocurrency Liabilities” shall have the meaning assigned to that term in
Regulation D of the Board of Governors of the Federal Reserve System, as in effect from time to time. 
 “Eurodollar” means a
Dollar denominated deposit in a bank or branch outside of the United States. 
 “Eurodollar Loan” means a Revolving Loan described
in Section 2.2(a) hereof that shall be denominated in Dollars and on which the Borrower shall pay interest at the Derived Eurodollar Rate. 

“Eurodollar Rate” means, with respect to a Eurodollar Loan, for any Interest Period, a rate per annum equal to the quotient obtained
(rounded upward, if necessary, to the nearest 1/16th of 1%) by dividing (a) the rate of interest, determined by the Administrative Agent in accordance with its usual procedures (which determination shall be conclusive absent manifest error) as
of approximately 11:00 A.M. (London time) two Business Days prior to the beginning of such Interest Period pertaining to such Eurodollar Loan, as listed as the London interbank offered rate, as published by Thomson Reuters or Bloomberg (or, if for
any reason such rate is unavailable from Thomson Reuters or Bloomberg, from any other similar company or service that provides rate quotations comparable to those currently provided by Thomson Reuters or Bloomberg) for Dollar deposits in immediately
available funds with a maturity comparable to such Interest Period, provided that, in the event that such rate quotation is not available for any reason, then
the Eurodollar Rate shall be the average (rounded
upward to the nearest 1/16th of 1%) of the per annum rates at which deposits in immediately available funds in Dollars for the relevant Interest Period and in the amount of the
Eurodollar Loan to be disbursed or to remain outstanding during such Interest Period, as the case may be, are offered to the Administrative Agent (or
an Affiliate of the Administrative Agent, in the
Administrative Agent’s discretion) by leading banks in any Eurodollar market reasonably selected by the Administrative Agent, determined as of 11:00 A.M.
(London time) (or as soon thereafter as practicable),
two Business Days prior to the 

  
 23 

 beginning of the relevant
Interest Period pertaining to such Eurodollar Loan; by (b) 1.00 minus the Reserve
Percentage. Notwithstanding the foregoing, if at any time the Eurodollar Rate, as determined above, is less than zero, it shall be deemed to be zero for purposes of this Agreement. 

“Event of Default” means an event or condition that shall constitute an event of default as defined in Article VIII hereof. 

“Exchange Act” means the Securities Exchange Act of 1934, as amended. 

“Excluded Deposit Accounts” means those accounts held in the name of a Company (a) that are Foreign Deposit Accounts,
(b) Payroll Accounts, (c) zero balance and automated clearing house accounts, and (d) any Deposit Account, whose balance does not exceed Two Hundred Thousand Dollars ($200,000) at any time, and which is designated by the Borrower as
an Excluded Account in writing to the Administrative Agent, so long as the aggregate balance of all such designated Deposit Accounts does not exceed One Million Dollars ($1,000,000) at any time. 

“Excluded Property” means (a) any property, to the extent that (and for so long as) such grant of such security interest is
prohibited by any Requirement of Law or requires the consent of any Governmental Authority, which consent cannot be obtained or reasonably expected to be obtained by the Borrower after using commercially reasonable efforts; (b) any equity
interest in any Foreign Subsidiary that does not constitute Pledged Securities, or any properties or assets of a Foreign Subsidiary, in each case, and for so long as and to the extent that the granting of a Lien to the Administrative Agent on such
assets could reasonably be expected to have material negative tax consequences on the Borrower (including without limitation under Section 956 of the Code as in effect as of the Closing Date); (c) any treasury stock of a Company;
(d) any lease, contract, instrument, license or other agreement (or any rights thereunder), to the extent (and only to the extent) that the grant of a Lien therein would (i) constitute a violation of a restriction in favor of a third party
on such grant, or (ii) give any other party to such lease, contract, instrument, license or other agreement the right to terminate its obligations thereunder; provided that the limitation set forth in this clause (d) shall not affect,
limit, restrict or impair the grant by a Company of a Lien pursuant to this Agreement in any such lease, contract, instrument, license or other agreement (or any rights thereunder), to the extent that an otherwise applicable prohibition or
restriction on such grant is rendered ineffective by any Requirement of Law, including the U.C.C.; (e) any interest in any equity interests of any joint venture, partnership or other entity if such joint venture, partnership or other entity is
not a Subsidiary of such Company, in each case if and for so long as the grant of a Lien with respect thereto shall constitute a default under or termination pursuant to the terms of the joint venture agreement, partnership agreement or other
organizational documents of, or contract or other agreement of (or covering or purporting to cover the assets of) such joint venture, partnership or entity or its direct or indirect parent, or result in the loss of economic benefit or the
abandonment or invalidation of such Company of such Company’s interest in such equity interests; (f) any ITU Application for which a statement of use has not been filed (but only until such statement is filed, at which point such
application shall constitute Collateral hereunder) to the extent such an ITU Application would, under the Trademark Act, be deemed to be transferred in violation of 15 U.S.C. § 1060(a) as a result of the security interest granted herein, or
otherwise invalidated or made unenforceable as a 

  
 24 

 
result of the execution or performance of this Agreement; (g) any vehicle; (h) any real estate and any life insurance policies (including any cash surrender value thereof) owned by a
Company; or (i) any assets otherwise required to be pledged or perfected hereunder to the extent that, in the reasonable judgment of the Administrative Agent, the cost or burden of obtaining the pledge or perfection of such Collateral would
outweigh the benefits thereof to the Lenders; provided that “Excluded Property” shall not include any Proceeds, substitutions or replacements of Excluded Property (unless such Proceeds, substitutions or replacements would constitute
Excluded Property). 
 “Excluded Swap Obligations” means, with respect to any Credit Party, any Swap Obligation if, and to the
extent that, all or a portion of the guarantee of such Credit Party of, or the grant by such Credit Party of a security interest to secure, such Swap Obligation (or any guarantee thereof) is or becomes illegal under the Commodity Exchange Act or any
rule, regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such Credit Party’s failure to constitute an “eligible contract participant” as defined
in the Commodity Exchange Act (determined after giving effect to any “keepwell, support or other agreement” for the benefit of such Credit Party and any and all guarantees of such Credit Party’s Swap Obligations by other Credit
Parties), at the time such guarantee or grant of security interest of such Credit Party becomes, or would become, effective with respect to such Swap Obligation. If a Swap Obligation arises under a master agreement governing more than one swap, such
exclusion shall apply only to the portion of such Swap Obligation that is attributable to swaps for which such guarantee or security interest is, or becomes, illegal. 

“Excluded Taxes” means, with respect to a Recipient, any of the following Taxes imposed on or with respect to such Recipient or
required to be withheld or deducted from a payment to such Recipient, (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, (i) imposed as a result of such Recipient
being organized under the Laws of, or having its principal office located in, or, in the case of any Lender, having its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof), or
(ii) that are Other Connection Taxes; (b) in the case of a Lender, U.S. federal withholding Taxes imposed on amounts payable to or for the account of such Lender with respect to an applicable interest in a Loan or Commitment pursuant to a
Law in effect on the date on which (i) such Lender acquires such interest in the Loan or Commitment (other than pursuant to an assignment request by the Borrower under Section 11.3(c) hereof); or (ii) such Lender changes its lending
office, except in each case to the extent that, pursuant to Section 3.2 hereof, amounts with respect to such Taxes were payable either to such Lender’s assignor immediately before such Lender became a party hereto, or to such Lender
immediately before it changed its lending office; (c) Taxes attributable to such Recipient’s failure to comply with Section 3.2(c) hereof; and (d) any U.S. federal withholding Taxes imposed with respect to such Recipient pursuant
to FATCA. 
 “FATCA” means Sections 1471 through 1474 of the Code as in effect on the Closing Date (or any amended or successor
version that is substantively comparable to and not materially more onerous to comply with), any current or future regulations or official interpretations thereof and any agreements entered into pursuant to Section 1471(b)(1) of the Code. 

  
 25 

 “Federal Funds Effective Rate” means, for any day, the rate per annum (rounded
upward to the nearest one one-hundredth of one percent (1/100 of 1%)) announced by the Federal Reserve Bank of New York (or any successor) on such day as being the weighted average of the rates on overnight federal funds transactions arranged by
federal funds brokers on the previous trading day, as computed and announced by such Federal Reserve Bank (or any successor) in substantially the same manner as such Federal Reserve Bank computes and announces the weighted average it refers to as
the “Federal Funds Effective Rate” as of the Closing Date. 
 “Federal Reserve Bank of New York’s Website” means the website of the Federal Reserve Bank of New York at
http://www.newyorkfed.org, or any successor source. 
 “FCCR De-Activation
Date” means, after a FCCR Effective Date, the last day of a thirty (30) consecutive day period during which (a) the Revolving Credit Availability shall have been, at all times during such period, greater than Five Million Six Hundred
Twenty-Five Thousand Dollars ($5,625,000), and (b) no Event of Default shall have occurred or be continuing; provided that no more than three FCCR De-Activation Dates may occur. 

“FCCR Effective Date” means any date on which the Revolving Credit Availability is less than Five Million Six Hundred Twenty-Five
Thousand Dollars ($5,625,000). 
 “FCCR Testing Period” means each period commencing on a FCCR Effective Date and ending on the
first FCCR De-Activation Date occurring thereafter; provided that if three FCCR Effective Dates occur, the FCCR Testing Period that begins on the next FCCR Effective Date shall continue notwithstanding the occurrence of a FCCR De-Activation Date.

 “Financial Officer” means any of the following officers: chief executive officer, president, chief financial officer or
treasurer. Unless otherwise qualified, all references to a Financial Officer in this Agreement shall refer to a Financial Officer of the Borrower. 

“Fixed Charge Coverage Ratio” means, as determined on the last day of the most recently completed four Quarterly Reporting Periods,
on a Consolidated basis, the ratio of (a) Consolidated EBITDA, minus (i) Consolidated Unfunded Capital Expenditures, (ii) Consolidated Income Tax Expense paid in cash, and (iii) Capital Distributions made in cash, to
(b) Consolidated Fixed Charges. 
 “Foreign Account Receivable” means an Account that is an account receivable that arises
out of contracts with or orders from an Account Debtor that is not a resident of the United States or Canada (other than Quebec), or an Account payable in a currency other than Dollars. 

“Foreign Deposit Account” means any Deposit Account of a Company that is maintained outside of the United States. 

“Foreign Lender” means a Lender that is not a U.S. Person. 

  
 26 

 “Foreign Subsidiary” means a Subsidiary that is organized under the Laws of any
jurisdiction other than the United States, any state thereof or the District of Columbia. 
 “Fronting Exposure” means, at any
time there is a Defaulting Lender, (a) with respect to the Issuing Lender, such Defaulting Lender’s outstanding Letter of Credit Exposure (to the extent of such Defaulting Lender’s Commitment Percentage of the Revolving Credit
Commitment) with respect to Letters of Credit issued by the Issuing Lender, other than Letter of Credit Exposure as to which such Defaulting Lender’s participation obligation has been reallocated to other Lenders or Cash Collateralized in
accordance with the terms hereof; and (b) with respect to the Swing Line Lender, such Defaulting Lender’s Swing Line Exposure (to the extent of such Defaulting Lender’s Commitment Percentage of the Revolving Credit Commitment) made by
such Swing Line Lender, other than Swing Loans as to which such Defaulting Lender’s participation obligation has been reallocated to other Lenders. 

“GAAP” means generally accepted accounting principles in the United States as then in effect, which shall include the official
interpretations thereof by the Financial Accounting Standards Board, applied on a basis consistent with the past accounting practices and procedures of the Borrower. 

“General Intangibles” means (a) general intangibles, as that term is defined in the U.C.C.; and (b) choses in action,
causes of action, intellectual property, customer lists, corporate or other business records, inventions, designs, patents, patent applications, service marks, registrations, trade names, trademarks, copyrights, licenses, goodwill, computer
software, rights to indemnification and tax refunds. 
 “Government Account Receivable” means an Account that is an account
receivable that arises out of contracts with or orders from the United States or any of its departments, agencies or instrumentalities. 

“Governmental Authority” means the government of the United States or any other nation, or of any political subdivision thereof,
whether state or local, and any agency, department, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or
pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank), any securities exchange and any self-regulatory organization exercising such functions, and any group or body charged with
setting financial accounting or regulatory capital rules or standards (including, without limitation, the Financial Accounting Standards Board, the Bank for International Settlements or the Basel Committee on Banking Supervision or any successor or
similar authority to any of the foregoing). 
 “Guarantor” means a Person that shall have pledged its credit or property in any
manner for the payment or other performance of the indebtedness, contract or other obligation of another and includes (without limitation) any guarantor (whether of payment or of collection), surety, co-maker, endorser or Person that shall have
agreed conditionally or otherwise to make any purchase, loan or investment in order thereby to enable another to prevent or correct a default of any kind. 

  
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 “Guarantor of Payment” means each of the Companies designated a “Guarantor of
Payment” on Schedule 2 hereto, and any other Person that shall execute and deliver a Guaranty of Payment (or Guaranty of Payment Joinder) to the Administrative Agent, or become a party by joinder to the Guaranty of Payment that was
executed on the Closing Date, subsequent to the Closing Date. 
 “Guaranty of Payment” means each Guaranty of Payment executed and
delivered on or after the Closing Date in connection with this Agreement, as the same may from time to time be amended, restated or otherwise modified. 

“Guaranty of Payment Joinder” means each Guaranty of Payment Joinder, executed and delivered by a Guarantor of Payment for the
purpose of adding such Guarantor of Payment as a party to a previously executed Guaranty of Payment. 
 “Hedge Agreement” means
any (a) hedge agreement, interest rate swap, cap, collar or floor agreement, or other interest rate management device entered into by a Company with any Person in connection with any Indebtedness of such Company, or (b) currency swap
agreement, forward currency purchase agreement or similar arrangement or agreement designed to protect against fluctuations in currency exchange rates entered into by a Company. 

“Heightened Testing De-Activation Date” means, after a Heightened Testing Effective Date, the last day of a ninety
(90) consecutive day period during which the Revolving Credit Availability shall have been, at all times during such period, greater than both (a) fifty percent (50%) of the Borrowing Base, and (b) Ten Million Dollars
($10,000,000). 
 “Heightened Testing Effective Date” means any date on which the Revolving Credit Availability is less than
either (or both) (a) fifty percent (50%) of the Borrowing Base, or (b) Ten Million Dollars ($10,000,000). 
 “Heightened
Testing Period” means each period commencing on a Heightened Testing Effective Date and ending on the first Heightened Testing De-Activation Date occurring thereafter. 

“IBM”
 means International Business Machines Corporation, a Delaware corporation, and its subsidiaries. 

“IBM
Account Receivable” means an Account that is an account receivable that arises out of contracts with or orders from IBM. 

“IBM
Factoring Arrangement” means the factoring arrangement between Borrower and IBM whereby accounts receivable and proceeds thereof owing by IBM to Borrower are sold to Citibank, N.A., an accounts receivable factor. 

  
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 “Immaterial Subsidiary” means, at any date of determination, any one or more
Subsidiaries whose aggregate assets, when combined with the assets of the Dormant Subsidiaries (if any), on the last day of the most recent period for which balance sheets have been delivered pursuant to Section 5.3(b), (c) or
(d) were less than One Million Dollars ($1,000,000), as determined in accordance with GAAP, and which Subsidiaries have been designated in writing by the Borrower to the Administrative Agent as “Immaterial Subsidiaries”. 

“Indebtedness” means, for any Company, without duplication, (a) all obligations to repay borrowed money, direct or indirect,
incurred, assumed, or guaranteed, (b) all obligations in respect of the deferred purchase price of property or services (other than trade accounts payable in the ordinary course of business) that in accordance with GAAP would be included as
liabilities on a balance sheet, (c) all obligations under conditional sales or other title retention agreements, (d) all obligations (contingent or otherwise) under any letter of credit or banker’s acceptance, (e) all net
obligations under any currency swap agreement, interest rate swap, cap, collar or floor agreement or other interest rate management device or any Hedge Agreement (but taking into account only the mark-to-market value or, if any actual amount is due
as a result of the termination or close out of such transaction, that amount), (f) all synthetic leases, (g) all Capitalized Lease Obligations, (h) all obligations of such Company with respect to asset securitization financing
programs, (i) all obligations to advance funds to, or to purchase assets, property or services from, any other Person in order to maintain the financial condition of such Person, (j) all indebtedness of the types referred to in subparts
(a) through (i) above of any partnership or joint venture (other than a joint venture that is itself a corporation or limited liability company) in which such Company is a general partner or joint venturer, unless such indebtedness is
expressly made non-recourse to such Company or the general partner or venture is otherwise not directly liable for such indebtedness or the only assets of the general partner or venturer is the ownership of such partnership or joint venture,
(k) any other transaction (including forward sale or purchase agreements) having the functional effect of a borrowing of money entered into by such Company to finance its operations or capital requirements, and (l) any guaranty of any
obligation described in subparts (a) through (k) above (for purposes of this subpart (l), the amount of any guaranty shall be deemed to be an amount equal to the stated or determinable amount of the related primary obligations, or portion
thereof, in respect of which such guaranty is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof as determined by the guarantor in good faith). 

“Indemnified Taxes” means (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account
of any obligation of any Credit Party under any Loan Document, and (b) to the extent not otherwise described in the foregoing subpart (a), Other Taxes. 

“Intellectual Property Security Agreement” means each Intellectual Property Security Agreement, executed and delivered on or after
the Closing Date by a Credit Party, wherein such Credit Party, as the case may be, has granted to the Administrative Agent, for the benefit of the Lenders, a security interest in all intellectual property owned by such Credit Party, as the same may
from time to time be amended, restated or otherwise modified. 
 “Interest Adjustment Date” means the last day of each Interest
Period. 

  
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 “Interest Period” means, with respect to a EurodollarLIBOR Fixed
Rate Loan, the period commencing on the date such EurodollarLIBOR Fixed Rate Loan is made and ending on the last day of such period,
as selected by the Borrower pursuant to the provisions hereof, and, thereafter (unless such Eurodollar Loan is converted to a Base Rate Loan or a Daily LIBOR Loan), each subsequent period commencing on the last day of the immediately preceding
Interest Period and ending on the last day of such period, as selected by the Borrower pursuant to the provisions hereof. The duration of each Interest Period for
a
EurodollarLIBOR Fixed Rate Loan shall be one
month, two months, three months or six months, in each case as the Borrower may select upon notice, as set forth in Section 2.5 hereof; provided
that (a) if the Borrower shall fail to so select the
duration of any Interest Period at least three Business Days prior to the Interest Adjustment Date applicable to such Eurodollar Loan, the Borrower shall be deemed to have converted such Eurodollar Loan to a Base Rate Loan at the end of the then
current Interest Period; (b) each Alternate Currency Loan must be repaid on the last day of the
Interest Period applicable thereto. Notwithstanding the foregoing, no Interest Period shall extend beyond the last day of the Commitment Period. 

“Inventory” means inventory, as that term is defined in the U.C.C. 

“Investment Grade Account Debtor” means an Account Debtor that has, or whose Subsidiary or parent has, a long term issuer rating of
no less than Baa3 from Moody’s and BBB-from Standard & Poor’s. 
 “Investment Property” means investment
property, as that term is defined in the U.C.C., unless the Uniform Commercial Code as in effect in another jurisdiction would govern the perfection and priority of a security interest in investment property, and, in such case, “investment
property” shall be defined in accordance with the law of that jurisdiction as in effect from time to time. 
 “IRS” means the
United States Internal Revenue Service. 
 “Issuing Lender” means, as to any Letter of Credit transaction hereunder, the
Administrative Agent as issuer of the Letter of Credit, or, in the event that the Administrative Agent shall be unable to issue a Letter of Credit, such other Revolving Lender as shall be acceptable to the Administrative Agent and shall agree to
issue the Letter of Credit in its own name, but in each instance on behalf of the Revolving Lenders. 
 “ITU Application” means a
trademark application filed with the United States Patent and Trademark Office in Washington D.C. pursuant to 15 U.S.C. § 1051(b). 

“KeyBank” means KeyBank National Association, a national banking association, and its successors and assigns. 

“Landlord’s Waiver” means a landlord’s waiver in form and substance satisfactory to the Administrative Agent, delivered by
a Credit Party in connection with this Agreement, as such waiver may from time to time be amended, restated or otherwise modified. 

  
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 “Laws” means, collectively, all international, foreign, federal, state and local
statutes, treaties, rules, guidelines, regulations, ordinances, codes and administrative or judicial precedents or authorities, including the interpretation or administration thereof by any Governmental Authority charged with the enforcement,
interpretation or administration thereof, and all applicable administrative orders, directed duties, requests, licenses, authorizations and permits of, and agreements with, any Governmental Authority, in each case whether or not having the force of
law. 
 “Lender” means that term as defined in the first paragraph of this Agreement and, as the context requires, shall include
the Issuing Lender and the Swing Line Lender. 
 “Letter of Credit” means a commercial documentary letter of credit or standby
letter of credit that shall be issued by the Issuing Lender for the account of the Borrower or another Company, including amendments thereto, if any, and shall have an expiration date no later than the earlier of three hundred sixty-four
(364) days after its date of issuance (provided that such Letter of Credit may provide for the renewal thereof for additional one year periods). 

“Letter of Credit Commitment” means the commitment of the Issuing Lender, on behalf of the Revolving Lenders, to issue Letters of
Credit in an aggregate face amount of up to Ten Million Dollars ($10,000,000). 
 “Letter of Credit Exposure” means, at any time,
the Dollar Equivalent of the sum of (a) the aggregate undrawn
amount of all issued and outstanding Letters of Credit, and (b) the aggregate of the draws made on Letters of Credit that have not been reimbursed by the Borrower or converted to a Revolving Loan pursuant to Section 2.2(b)(iv) hereof.

 “Letter of Credit Fee” means, with respect to any Letter of Credit, for any day, an amount equal to (a) the undrawn
amount of such Letter of Credit, multiplied by (b) the Applicable Margin for Revolving Loans that are Eurodollar Loans in effect on such day divided by three hundred sixty (360). 

“LIBOR
Fixed Rate Loan” means a Eurodollar Loan or an Alternate Currency Loan. 

“Lien” means any mortgage, deed of trust, security interest, lien (statutory or other), charge, assignment, hypothecation,
encumbrance on, pledge or deposit of, or conditional sale, lease (other than operating leases), sale with a right of redemption or other title retention agreement and any capitalized lease with respect to any property (real or personal) or asset.

 “Loan” means a Revolving Loan or a Swing Loan. 

“Loan Documents” means, collectively, this Agreement, each Note, each Guaranty of Payment, each Guaranty of Payment Joinder, all
documentation relating to each Letter of Credit, each Security Document, each Landlord’s Waiver (or similar agreement), the Administrative Agent Fee Letter and the Closing Fee Letter, as any of the foregoing may from time to time be amended,
restated or otherwise modified or replaced, and any other document delivered pursuant thereto. 

  
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 “Lockbox” means the post office box rented by and in the name of one or more
Credit Parties in accordance with Section 7.2(a) hereof. 
 “Master Agreement” means that Master Agreement entered into by
and among the Borrower and the Administrative Agent in connection with the cash management services undertaken by the Administrative Agent on behalf of the Borrower. 

“Material Adverse Effect” means a material adverse effect on (a) the business or financial condition of the Borrower,
(b) the business or financial condition of the Companies taken as a whole, (c) the rights and remedies of the Administrative Agent or the Lenders under any Loan Document, or (d) the ability of the Credit Parties, taken as a whole, to
perform their obligations under the Loan Documents. 
 “Material Indebtedness Agreement” means any debt instrument, lease
(capital, operating or otherwise), guaranty, contract, commitment, agreement or other arrangement evidencing or entered into in connection with any Indebtedness of any Company or the Companies equal to or in excess of the amount of Three Million
Dollars ($3,000,000). 
 “Material Recovery Event” means (a) any casualty loss in respect of assets of Borrower or a Domestic
Subsidiary covered by casualty insurance, and (b) any compulsory transfer or taking under threat of compulsory transfer of any asset of the Borrower or a Domestic Subsidiary by any Governmental Authority; provided that, in the case of either
subpart (a) or (b) hereof, the proceeds received by the Companies from such loss, transfer or taking exceeds Two Hundred Fifty Thousand Dollars ($250,000). 

“Maximum Amount” means, for each Lender, the amount set forth opposite such Lender’s name under the column headed “Maximum
Amount” as set forth on Schedule 1 hereto, subject to (a) decreases pursuant to Section 2.8(f) hereof, and (b) assignments of interests pursuant to Section 11.10 hereof; provided that the Maximum Amount for the Swing
Line Lender shall exclude the Swing Line Commitment (other than its pro rata share), and the Maximum Amount of the Issuing Lender shall exclude the Letter of Credit Commitment (other than its pro rata share thereof). 

“Maximum Rate” means that term as defined in Section 2.3(d) hereof. 

“Maximum Revolving Amount” means Forty-Five Million Dollars ($45,000,000), as such amount may be reduced pursuant to
Section 2.8(f) hereof. 
 “Minimum Collateral Amount” means, at any time, (a) with respect to Cash Collateral consisting
of cash or deposit account balances, an amount equal to one hundred three percent (103%) of the Fronting Exposure of the Issuing Lender with respect to Letters of Credit issued and outstanding at such time, and (b) otherwise, an amount
determined by the Administrative Agent and the Issuing Lender in their sole discretion. 
 “Moody’s” means Moody’s
Investors Service, Inc., and any successor to such company. 

  
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 “Multiemployer Plan” means a Pension Plan that is subject to the requirements of
Subtitle E of Title IV of ERISA. 
 “Net Proceeds” means, with respect to any event, but only as and when received by the Borrower
or any of the Domestic Subsidiaries, (a) the cash proceeds received in respect of such event; net of (b) the sum of (i) all reasonable fees and out-of-pocket expenses paid or reimbursed in connection with such event, (ii) in the
case of a sale, transfer or other disposition of an asset, the amount of all payments required to be made as a result of such event to repay Indebtedness (other than Loans) secured by such asset or otherwise subject to mandatory prepayment as a
result of such event (it being understood that such amount shall include the amount of all distributions and other payments required to be made to minority equity holders by the recipient of such Net Proceeds as a result of such sale, transfer or
disposition), and (iv) the amount of all Taxes paid (or reasonably estimated to be payable), including the amount of any reserves reasonably established by the Borrower for the purpose of funding any liabilities that are incurred in connection
with the disposition of any asset (including pension and other post-employment benefit obligations associated with such disposition) and contingent liabilities reasonably estimated to be payable, in each case during the fiscal year that such event
occurred or the next succeeding fiscal year and that are directly attributable to such event (as determined reasonably and in good faith by a Financial Officer); provided that, to the extent that any such reserves are not utilized by the Borrower or
the Domestic Subsidiaries to fund the applicable liabilities prior to the end of such succeeding fiscal year of the Borrower, the amount of such unutilized reserves shall constitute “Net Proceeds.” 

“Non-Consenting Lender” means that term as defined in Section 11.3(c) hereof. 

“Non-Defaulting Lender” means, at any time, each Lender that is not a Defaulting Lender at such time. 

“Note” means a Revolving Credit Note or the Swing Line Note, or any other promissory note delivered pursuant to this Agreement. 

“Notice of Loan” means a Notice of Loan in the form of the attached Exhibit C. 

“Obligations” means, collectively, (a) all Indebtedness and other obligations now owing or hereafter incurred by the Borrower
or any other Credit Party to the Administrative Agent, the Swing Line Lender, the Issuing Lender, or any Lender pursuant to this Agreement and the other Loan Documents, and includes the principal of and interest on all Loans, and all obligations of
the Borrower or any other Credit Party pursuant to Letters of Credit; (b) each extension, renewal, consolidation or refinancing of any of the foregoing, in whole or in part; (c) the commitment and other fees, and any prepayment fees,
payable pursuant to this Agreement or any other Loan Document; (d) all fees and charges in connection with Letters of Credit; (e) every other liability, now or hereafter owing to the Administrative Agent or any Lender by any Company
pursuant to this Agreement or any other Loan Document; and (f) all Related Expenses. 

  
 33 

 “Operating Account” means a commercial Deposit Account designated “operating
account” and maintained by one or more Credit Parties with the Administrative Agent, without liability by the Administrative Agent to pay interest thereon, from which account the Borrower shall have the right to withdraw funds until the
Administrative Agent, on behalf of the Lenders, terminates such right after the occurrence of a Default or an Event of Default. 

“Organizational Documents” means, with respect to any Person (other than an individual), such Person’s Articles (Certificate)
of Incorporation, operating agreement or equivalent formation documents, and Regulations (Bylaws), or equivalent governing documents, and any amendments to any of the foregoing. 

“Other Connection Taxes” means, with respect to any Recipient, Taxes imposed as a result of a present or former connection between
such Recipient and the jurisdiction imposing such Taxes (other than connections arising from such Recipient having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security
interest under, engaged in any other transaction pursuant to or enforced any Loan Document, or sold or assigned an interest in any Loan, Letter of Credit or any Loan Document). 

“Other Taxes” means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise
from any payment made hereunder or under any other Loan Document, or from the execution, delivery, performance, or enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, this
Agreement or any other Loan Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment (other than an assignment requested by the Borrower pursuant to Section 11.3(c) hereof). 

“Participant” means that term as defined in Section 11.10(d) hereof. 

“Participant Register” means that term as defined in Section 11.10(d) hereof. 

“Patriot Act” means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct
Terrorism Act of 2001, USA Patriot Act, Title III of Pub. L. 107-56, signed into law October 26, 2001, as amended from time to time. 

“Payroll Accounts” means accounts solely used for payroll, medical benefits, flexible spending obligations, employee benefits and
fiduciary obligations. 
 “PBGC” means the Pension Benefit Guaranty Corporation, and its successor. 

“Pension Plan” means an ERISA Plan that is a “pension plan” (within the meaning of ERISA Section 3(2)). 

“Permitted Discretion” means a determination made by the Administrative Agent in the exercise of its reasonable credit judgment
(consistent with the asset-based nature of this credit). 

  
 34 

 “Permitted Foreign Subsidiary Loans, Guaranties and Investments” means: 

(a) the investments by the Borrower or a Domestic Subsidiary in a Foreign Subsidiary, in such amounts existing as of the
Closing Date and set forth on Schedule 5.11 hereto; 
 (b) the loans by the Borrower or a Domestic Subsidiary to a
Foreign Subsidiary, in such amounts existing as of the Closing Date and set forth on Schedule 5.11 hereto; 
 (c) the
guaranties by the Borrower or a Domestic Subsidiary of the Indebtedness of a Foreign Subsidiary, in such amounts existing as of the Closing Date and set forth on Schedule 5.11 hereto; 

(d) any investment by a Foreign Subsidiary in a Company, or a loan from a Foreign Subsidiary to a Company or a guaranty by a
Foreign Subsidiary of Indebtedness or other obligations of a Company; 
 (e) any guaranty by a Company in support of an
office lease entered into by a Foreign Subsidiary, in the ordinary course of business; 
 (f) any guaranty by a Company of
performance by a Foreign Subsidiary of the obligations of such Foreign Subsidiary to complete a project or other work under a customer contract, entered into in the ordinary course of business (so long as such guaranty is not a guaranty of
Indebtedness); and 
 (g) after the Closing Date, the loans by the Borrower or a Domestic Subsidiary to, the investments by
the Borrower or a Domestic Subsidiary in, and the guaranties by the Borrower or a Domestic Subsidiary of the Indebtedness of, Foreign Subsidiaries (including in connection with the consummation by a Foreign Subsidiary of an Acquisition permitted
pursuant to Section 5.13 hereof); provided that, if a Heightened Testing Period shall exist immediately prior to or after giving pro forma effect to such a loan, investment, or guaranty, the Borrower may not make any such loan, investment, or
guaranty or such future loans, investments, or guaranties (during such Heightened Testing Period). 
 “Permitted Investment” means
any investment of a Company, made after the Closing Date, in the stock (or other debt or equity instruments) of a Person (other than a Company), provided that, if a Heightened Testing Period shall exist immediately prior to, or after giving pro
forma effect to the making of any such investment, no Company may make such investment or such future investments (during such Heightened Testing Period) to the extent the aggregate amount of all “Permitted Investments” would exceed
aggregate amount of (i) Five Million Dollars ($5,000,000), plus (ii) the aggregate amount of the net reduction of such investments made after the Closing Date resulting from the repayment of a loan or advance or the repurchase, redemption,
sale or other disposition of such investment. 

  
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 “Person” means any individual, sole proprietorship, partnership, joint venture,
unincorporated organization, corporation, limited liability company, unlimited liability company, institution, trust, estate, Governmental Authority or any other entity. 

“Platform” means Debt Domain, Intralinks, Syndtrak or a substantially similar electronic transmission system selected by the
Administrative Agent. 
 “Pledge Agreement” means each of the Pledge Agreements, relating to the Pledged Securities, executed and
delivered in connection with this Agreement by the Borrower or a Guarantor of Payment, as applicable, in favor of the Administrative Agent, for the benefit of the Lenders, dated on or after the Closing Date, as any of the foregoing may from time to
time be amended, restated or otherwise modified. 
 “Pledged Notes” means any promissory note payable to a Credit Party, as
described on Schedule 7.4 hereto, and any additional or future promissory notes that may hereafter from time to time be payable to the one or more Credit Parties. 

“Pledged Securities” means all of the shares of capital stock or other equity interests of a direct Subsidiary of a Credit Party,
whether now owned or hereafter acquired or created, and all proceeds thereof; provided that Pledged Securities shall, to the extent (and only to the extent) that the granting of a Lien to the Administrative Agent on such equity interests could
reasonably be expected to have material negative tax consequences on the Borrower (including without limitation under Section 956 of the Code as in effect as of the Closing Date) exclude (a) shares of capital stock or other equity
interests of any Foreign Subsidiary that is not a first-tier Foreign Subsidiary, (b) shares of voting capital stock or other voting equity interests in any (A) first-tier Foreign Subsidiary or (B) CFC Holding Company, in excess of
sixty-five percent (65%) of the total outstanding shares of voting capital stock or other voting equity interest of such first-tier Foreign Subsidiary or CFC Holding Company, as applicable, and (c) shares of capital stock or other equity
interests of any Foreign Subsidiary, to the extent (and only to the extent) that the grant of a Lien therein would require the consent or approval of any works council (or similar body) or other third party or the consent, authorization or approval
under any Requirement of Law or by any Governmental Authority and such consent or approval cannot be obtained or reasonably expected to be obtained by a Credit Party after using commercially reasonable efforts. (Schedule 3 hereto lists, as of
the Closing Date, all of the Pledged Securities.) 
 “Prime Rate” means the interest rate established from time to time by the
Administrative Agent as the Administrative Agent’s prime rate, whether or not such rate shall be publicly announced; the Prime Rate may not be the lowest interest rate charged by the Administrative Agent for commercial or other extensions of
credit. Each change in the Prime Rate shall be effective immediately from and after such change. 
 “Proceeds” means
(a) proceeds, as that term is defined in the U.C.C., and any other proceeds, and (b) whatever is received upon the sale, exchange, collection or other disposition of Collateral or proceeds, whether cash or non-cash. Cash proceeds include,
without limitation, moneys, checks and Deposit Accounts. Proceeds include, without limitation, any Account arising when the right to payment is earned under a contract right, any insurance payable by 

  
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 reason of loss or damage to the Collateral, and any return or unearned premium upon any cancellation of
insurance. Except as expressly authorized in this Agreement, the right of the Administrative Agent and the Lenders to Proceeds specifically set forth herein, or indicated in any financing statement, shall never constitute an express or implied
authorization on the part of the Administrative Agent or any Lender to a Company’s sale, exchange, collection or other disposition of any or all of the collateral securing the Secured Obligations. 

“Protective Advance” means a protective advance made by the Administrative Agent in accordance with Section 2.16 hereof for the
following: 
 (a) to pay and discharge past due taxes, assessments and governmental charges, at any time levied on or with
respect to any of the Collateral to the extent that the applicable Company has failed to pay and discharge the same in accordance with the requirements of this Agreement or any of the other Loan Documents; 

(b) to pay and discharge any claims of other creditors that are secured by any Lien on any Collateral, other than a Lien
permitted by Section 5.9 hereof; 
 (c) to pay for the maintenance, repair, restoration and preservation of any
Collateral to the extent the Company that owns such Collateral fails to comply with its obligations in regard thereto under this Agreement and the other Loan Documents, or the Administrative Agent reasonably believes payment of the same is necessary
or appropriate to avoid a material loss or material diminution in value of such Collateral; 
 (d) to obtain and pay the
premiums on insurance for any Collateral to the extent the Companies fail to maintain such insurance in accordance with the requirements of this Agreement and the other Loan Documents; or 

(e) to otherwise maintain, protect or preserve the Collateral or the rights of the Lenders under the Loan Documents and is made
to enhance the likelihood of, or to maximize the amount of, repayment of the Secured Obligations. 
 “Quarterly Reporting Period”
means the period established by the Borrower as a fiscal quarter of the Borrower, as more specifically set forth on Schedule 5.3 hereto, as such Schedule 5.3 shall from time to time be replaced pursuant to Section 5.3(l) hereof. 

“Recipient” means, as applicable (a) the Administrative Agent, (b) any Lender, or (c) the Issuing Lender. 

“Register” means that term as described in Section 11.10(c) hereof. 

“Regularly Scheduled Payment Date” means the last day of each calendar month. 

“Related Expenses” means any and all out-of-pocket costs, liabilities and expenses (including, without limitation, damages,
penalties, reasonable attorneys’ fees, legal expenses, judgments and disbursements) (a) incurred by the Administrative Agent, or imposed upon or 

  
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asserted against the Administrative Agent or any Lender, in any attempt by the Administrative Agent and the Lenders to (i) obtain, preserve, perfect or enforce any Loan Document or any
security interest evidenced by any Loan Document; (ii) obtain payment, performance or observance of any and all of the Secured Obligations; or (iii) maintain, insure, audit, collect, preserve, repossess or dispose of any of the collateral
securing the Secured Obligations or any part thereof, including, without limitation, costs and expenses for appraisals, assessments and audits of any Company or any such collateral; or (b) incidental or related to subpart (a) above,
including, without limitation, interest thereupon from the date incurred, imposed or asserted until paid at the Default Rate. 

“Related Parties” means, with respect to any Person, such Person’s Affiliates and the partners, directors, officers, employees,
agents, trustees, administrators, managers, advisors and representatives of such Person and of such Person’s Affiliates. 

“Related Writing” means each Loan Document, each Borrowing Base Certificate and any other assignment, mortgage, security agreement,
guaranty agreement, subordination agreement, financial statement, audit report or other writing providing material information concerning any Company furnished by any Credit Party, or any of its officers, to the Administrative Agent or the Lenders
pursuant to or otherwise in connection with this Agreement; provided that no Bank Product Agreement or Hedge Agreement shall constitute a Related Writing hereunder. 

“Relevant
 Governmental Body” means the Federal Reserve Board and/or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Federal Reserve Board and/or the Federal Reserve Bank of New York or any successor thereto,
including without limitation the Alternative Reference Rates Committee. 

“Reportable Event” means a “reportable event” as that term is defined in Title IV of ERISA, except actions of general
applicability by the Secretary of Labor under Section 110 of such Act. 
 “Required Lenders” means the holders of more than
fifty percent (50%), based upon each Lender’s Commitment Percentage, of an amount (the “Total Amount”) equal to (a) during the Commitment Period, the Total Commitment Amount, or (b) after the Commitment Period, the Revolving
Credit Exposure; provided that (i) the portion of the Total Amount held or deemed to be held by any Defaulting Lender shall be excluded for purposes of making a determination of Required Lenders, and (ii) if there shall be two or more
unaffiliated Lenders (that are not Defaulting Lenders), Required Lenders shall constitute at least two unaffiliated Lenders. 

“Requirement of Law” means, as to any Person, any Law applicable to or binding upon such Person or any of its property. 

“Reserve” or “Reserves” means any amount that the Administrative Agent reserves, without duplication, pursuant to
Section 2.13 hereof, against the Borrowing Base. 

  
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 “Reserve Percentage” means, for any day, that percentage (expressed as a decimal)
that is in effect on such day, as prescribed by the Board of Governors of the Federal Reserve System (or any successor) for determining the maximum reserve requirement (including, without limitation, all basic, supplemental, marginal and other
reserves and taking into account any transitional adjustments or other scheduled changes in reserve requirements) for a member bank of the Federal Reserve System in Cleveland, Ohio, in respect of Eurocurrency Liabilities. The Eurodollar Rate and the Alternate Currency Rate shall be adjusted automatically on and
as of the effective date of any change in the Reserve Percentage. 
 “Restricted Payment” means, with respect to any
Company, (a) any Capital Distribution, or (b) any amount paid, or other consideration given, by such Company in repayment, redemption, retirement or repurchase, directly or indirectly, of any Subordinated Indebtedness (other than
Indebtedness owed to a Credit Party). 
 “Revolving Credit Availability” means, at any time, the amount equal to the Revolving
Credit Commitment minus the Revolving Credit Exposure. 
 “Revolving Credit Commitment” means the obligation hereunder, during the
Commitment Period, of (a) the Revolving Lenders (and each Revolving Lender) to make Revolving Loans, (b) the Issuing Lender to issue and each Revolving Lender to participate in, Letters of Credit pursuant to the Letter of Credit
Commitment, and (c) the Swing Line Lender to make, and each Revolving Lender to participate in, Swing Loans pursuant to the Swing Line Commitment; up to an aggregate principal amount outstanding at any time equal to the lesser of (i) the
Borrowing Base, or (ii) the Maximum Revolving Amount. 
 “Revolving Credit Exposure” means, at any time, the Dollar Equivalent of the sum of (a) the aggregate principal amount
of all Revolving Loans outstanding, (b) the Swing Line Exposure, and (c) the Letter of Credit Exposure. 
 “Revolving
Credit Note” means a Revolving Credit Note, in the form of the attached Exhibit A, executed and delivered pursuant to Section 2.4(a) hereof. 

“Revolving Lender” means a Lender with a percentage of the Revolving Credit Commitment as set forth on Schedule 1 hereto, or
that acquires a percentage of the Revolving Credit Commitment pursuant to Section 11.10 hereof. 
 “Revolving Loan” means a
loan made to the Borrower by the Revolving Lenders in accordance with Section 2.2(a) hereof. 
 “Sanctions” means any
sanctions administered or enforced from time to time by (a) the U.S. government, including those administered by the U.S. Department of the Treasury’s Office of Foreign Assets Control or the U.S. Department of State, or (b) the United
Nations Security Council, the European Union or Her Majesty’s Treasury of the United Kingdom, or other relevant sanctions authorities. 

“SEC” means the United States Securities and Exchange Commission, or any governmental body or agency succeeding to any of its
principal functions. 

  
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 “Secured Obligations” means, collectively, (a) the Obligations, (b) all
obligations and liabilities of the Companies owing to a Lender (or an entity that is an Affiliate of a then existing Lender) under Hedge Agreements, and (c) the Bank Product Obligations owing to a Lender (or an entity that is an Affiliate of a
then existing Lender) under Bank Product Agreements; provided that Secured Obligations of a Credit Party shall not include Excluded Swap Obligations owing from such Credit Party. 

“Securities Account” means a securities account, as that term is defined in the U.C.C. 

“Securities Account Control Agreement” means each Securities Account Control Agreement (or similar agreement with respect to a
Securities Account) among a Credit Party, the Administrative Agent and a Securities Intermediary, dated on or after the Closing Date, to be in form and substance satisfactory to the Administrative Agent, as the same may from time to time be amended,
restated or otherwise modified. 
 “Securities Intermediary” means a clearing corporation or a Person, including, without
limitation, a bank or broker, that in the ordinary course of its business maintains Securities Accounts for others and is acting in that capacity. 

“Security Account” means a commercial Deposit Account maintained with the Administrative Agent, without liability by the
Administrative Agent to pay interest thereon, as described in Section 7.2(f) hereof. 
 “Security Agreement” means each
Security Agreement, executed and delivered by one or more Guarantors of Payment in favor of the Administrative Agent, for the benefit of the Lenders, dated as of the Closing Date, and any other Security Agreement executed on or after the Closing
Date, as the same may from time to time be amended, restated or otherwise modified. 
 “Security Agreement Joinder” means each
Security Agreement Joinder, executed and delivered by a Guarantor of Payment for the purpose of adding such Guarantor of Payment as a party to a previously executed Security Agreement. 

“Security Document” means each Security Agreement, each Security Agreement Joinder, each Pledge Agreement, each Intellectual
Property Security Agreement, each Control Agreement, each U.C.C. Financing Statement or similar filing as to a jurisdiction located outside of the United States filed in connection herewith or perfecting any interest created in any of the foregoing
documents, and any other document pursuant to which any Lien is granted by a Company or any other Person to the Administrative Agent, for the benefit of the Lenders, as security for the Secured Obligations, or any part thereof, and each other
agreement executed or provided to the Administrative Agent in connection with any of the foregoing, as any of the foregoing may from time to time be amended, restated or otherwise modified or replaced. 

“Settlement Date” means that term as defined in Section 2.2(c)(ii) hereof. 

  
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“SOFR”
 with respect to any day means the secured overnight financing rate published for such day by the Federal Reserve Bank of New York, as the administrator of the benchmark, (or a successor administrator) on the Federal Reserve Bank of New York’s
Website. 
 “Standard & Poor’s” means S&P Global
Ratings, a business unit of Standard & Poor’s Financial Services LLC, a subsidiary of S&P Global Inc., and any successor thereto. 

“StuckyNet System” means the StuckyNet-Link internet-based communication system utilized by the Administrative Agent. 

“Subordinated Indebtedness” means Indebtedness that shall have been subordinated (by written terms or written agreement being, in
either case, in form and substance reasonably satisfactory to the Administrative Agent) in favor of the prior payment in full of the Obligations. 

“Subsidiary” means, with respect to any Person, a corporation, partnership, limited liability company, unlimited liability company
or other Person more than fifty percent (50%) of the Voting Power of which is owned, directly or indirectly, by such Person or by one or more other subsidiaries of such Person or by such Person and one or more subsidiaries of such Person.
Unless the context otherwise requires, Subsidiary herein shall be a reference to a Subsidiary of the Borrower. 
 “Supporting Letter of
Credit” means a standby letter of credit, in form and substance satisfactory to the Administrative Agent and the Issuing Lender, issued by an issuer satisfactory to the Administrative Agent and the Issuing Lender. 

“Swap Obligations” means, with respect to any Company, any obligation to pay or perform under any agreement, contract or transaction
that constitutes a “swap” within the meaning of section 1a(47) of the Commodity Exchange Act. 
 “Swing Line Commitment”
means the commitment of the Swing Line Lender to make Swing Loans to the Borrower, on a discretionary basis, up to the aggregate amount at any time outstanding of Ten Million Dollars ($10,000,000). 

“Swing Line Exposure” means, at any time, the aggregate principal amount of all Swing Loans outstanding. 

“Swing Line Lender” means KeyBank, as holder of the Swing Line Commitment. 

“Swing Line Note” means the Swing Line Note, in the form of the attached Exhibit B executed and delivered pursuant to
Section 2.4(b) hereof. 
 “Swing Loan” means a loan that shall be denominated in Dollars made to the Borrower by the Swing
Line Lender under the Swing Line Commitment, in accordance with Section 2.2(c) hereof. 

  
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 “Swing Loan Maturity Date” means, with respect to any Swing Loan, the earlier of
(a) the first Settlement Date after the date such Swing Loan is made, or (b) the last day of the Commitment Period. 

“Taxes” means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding),
assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto. 

“Term
SOFR” means the forward-looking term rate based on SOFR that has been selected or recommended by the Relevant Governmental Body. 

“Third
Amendment Effective Date” means December 23, 2019. 
 “Total
Commitment Amount” means the principal amount of Forty-Five Million Dollars ($45,000,000), or such lesser amount as shall be determined pursuant to Section 2.8(f) hereof. 

“Trade Date” means that term as defined in Section 11.10(b)(i) hereof. 

“U.C.C.” means the Uniform Commercial Code, as in effect from time to time in the State of New York. 

“U.C.C. Financing Statement” means a financing statement filed or to be filed in accordance with the Uniform Commercial Code, as in
effect from time to time, in the relevant state or states. 
 “U.S. Person” means any Person that is a “United States
person” as defined in Section 7701(a)(30) of the Code. 
 “U.S. Tax Compliance Certificate” means that term as defined
in Section 3.2(e) hereof. 

“Unadjusted
 Benchmark Replacement” means the Benchmark Replacement excluding the Benchmark Replacement Adjustment. 

“United States” means the United States of America. 

“Voting Power” means, with respect to any Person, the exclusive ability to control, through the ownership of shares of capital
stock, partnership interests, membership interests or otherwise, the election of members of the board of directors or other similar governing body of such Person. The holding of a designated percentage of Voting Power of a Person means the ownership
of shares of capital stock, partnership interests, membership interests or other interests of such Person sufficient to control exclusively the election of that percentage of the members of the board of directors or similar governing body of such
Person. 
 “Welfare Plan” means an ERISA Plan that is a “welfare plan” within the meaning of ERISA Section 3(l).

  
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 “Withholding Agent” means any Credit Party and the Administrative Agent. 

“Write-Down and Conversion Powers” means, with respect to any EEA Resolution Authority, the write-down and conversion powers of such
EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule. 

Section 1.2. Accounting Terms. 

(a) Generally. Any accounting term not specifically defined in this Article I shall have the meaning ascribed thereto by GAAP. 

(b) Changes in GAAP. If any change in the rules, regulations, pronouncements, opinions or other requirements of the Financial Accounting
Standards Board (or any successor thereto or agency with similar function) is made with respect to GAAP, or if the Borrower adopts the International Financial Reporting Standards, and such change or adoption results in a change in the calculation of
any component (or components in the aggregate) of the financial covenants set forth in Section 5.7 hereof or the related financial definitions, upon notice by any of the Administrative Agent, the Required Lenders or the Borrower, the parties
hereto will enter into good faith negotiations to amend such financial covenants and financial definitions in such manner as the parties shall agree, each acting reasonably, in order to reflect fairly such change or adoption so that the criteria for
evaluating the financial condition of the Borrower shall be the same in commercial effect after, as well as before, such change or adoption is made (in which case the method and calculating such financial covenants and definitions hereunder shall be
determined in the manner so agreed); provided that, until so amended, such calculations shall continue to be computed in accordance with GAAP as in effect prior to such change or adoption. Notwithstanding any accounting change after the Closing Date
that would require lease obligations that would be treated as operating leases as of the Closing Date to be classified and accounted for as capital leases or otherwise reflected on the Borrower’s Consolidated balance sheet, for the purposes of
determining compliance with any covenant contained herein, such obligations shall be treated in the same manner as operating leases are treated as of the Closing Date. 

Section 1.3. Terms Generally. The foregoing definitions shall be applicable to the singular and plural forms of the foregoing
defined terms. Unless otherwise defined in this Article I, terms that are defined in the U.C.C. are used herein as so defined. 

Section 1.4. Foreign Exchange. For purposes of any determination of whether any borrowing, investment, payment, Lien, or other
transaction is permitted under this Agreement (other than Section 5.30 hereof), all amounts in currencies other than Dollars shall be translated into Dollars at the exchange rate as of the date of determination; provided that (a) no
Default or Event of Default shall be deemed to have occurred solely as a result of any change in any exchange rate thereafter occurring; (b) if Indebtedness denominated in currencies other than Dollars is incurred to refinance other
Indebtedness denominated in the same foreign currency, and such refinancing would cause the applicable Dollar denominated restriction to be exceeded if calculated at the relevant currency exchange rate in effect on the date of such refinancing, such
Dollar denominated restriction shall be deemed not to have been exceeded so long as the 

  
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principal amount of such refinancing Indebtedness does not exceed the principal amount of such Indebtedness being refinanced, and (c) determinations of whether additional borrowings,
investments, payments, Liens, or other transactions are permitted under this Agreement shall, notwithstanding subpart (a) above, account for changes in any exchange rate with respect to other then existing borrowings, investments, payments,
Liens, or other transactions in currencies other than Dollars. 

Section 
1.5. Divisions. For all purposes under the Loan Documents, in connection with any division or plan of division under Delaware law (or any comparable event under a different jurisdiction’s laws): (a) if any asset, right, obligation or
liability of any Person becomes the asset, right, obligation or liability of a different Person, then it shall be deemed to have been transferred from the original Person to the subsequent Person, and (b) if any new Person comes into existence,
such new Person shall be deemed to have been organized on the first date of its existence by the holders of its equity interests at such time. Notwithstanding the foregoing, nothing in this Section 1.5 is intended to, and shall in no event be
deemed to apply to, impose any treatment or impact in any way, the tax treatment of any division or resulting from the implementation of any plan of division by or involving any Person.

 ARTICLE II. AMOUNT AND TERMS OF CREDIT 

Section 2.1. Amount and Nature of Credit. 

(a) Subject to the terms and conditions of this Agreement, the Lenders, during the Commitment Period and to the extent hereinafter provided,
shall make Loans to the Borrower, participate in Swing Loans made by the Swing Line Lender to the Borrower, and issue or participate in Letters of Credit at the request of the Borrower, in such aggregate amount as the Borrower shall request pursuant
to the Commitment; provided that in no event shall the aggregate principal amount of all Loans and Letters of Credit outstanding under this Agreement be in excess of the Total Commitment Amount. 

(b) Each Lender, for itself and not one for any other, agrees to make Loans, participate in Swing Loans, and issue or participate in Letters of
Credit, during the Commitment Period, on such basis that, immediately after the completion of any borrowing by the Borrower or the issuance of a Letter of Credit: 

(i)
the Dollar Equivalent of the aggregate outstanding principal
amount of Loans made by such Lender (other than Swing Loans made by the Swing Line Lender), when combined with such Lender’s pro rata share, if any, of the Letter of Credit Exposure and the Swing Line Exposure, shall not be in excess of the
Maximum Amount for such Lender; and 
 (ii) the aggregate outstanding principal amount of Loans (other than Swing
Loans) made by such Lender shall represent that percentage of the aggregate principal amount then outstanding on all Loans (other than Swing Loans) that shall be such Lender’s Commitment Percentage. 

  
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 Each borrowing (other than Swing Loans which shall be risk participated on a pro rata basis) from the
Lenders shall be made pro rata according to the respective Commitment Percentages of the Lenders. 
 (c) The Loans may be made as Revolving
Loans as described in Section 2.2(a) hereof, and as Swing Loans as described in Section 2.2(c) hereof, and Letters of Credit may be issued in accordance with Section 2.2(b) hereof. 

Section 2.2. Revolving Credit Commitment. 

(a) Revolving Loans. Subject to the terms and conditions of this Agreement, during the Commitment Period, the Revolving Lenders shall
make a Revolving Loan or Revolving Loans to the Borrower in such amount or amounts as the Borrower, through an Authorized Officer, may from time to time request, but not exceeding in aggregate principal amount at any time outstanding hereunder the
Revolving Credit Commitment, when such Revolving Loans are combined with the Letter of Credit Exposure and the Swing Line
Exposure; provided that the Borrower shall not request any Alternate Currency Loan (and the Lenders shall not be
obligated to make an Alternate Currency Loan) if, after giving effect thereto, the Alternate Currency Exposure would exceed the Alternate Currency Maximum Amount. The Borrower shall have the
option, subject to the terms and conditions set forth herein, to borrow Revolving Loans, maturing on the last day of the Commitment Period, by means of any combination of Base Rate Loans, Daily LIBOR Loans or, Eurodollar Loans, or Alternate Currency Loans. With respect to each
Alternate Currency Loan, subject to the other provisions of this Agreement, the Borrower shall receive all of the proceeds of such Alternate Currency Loan in one Alternate Currency and repay such Alternate Currency Loan in the same Alternate
Currency. Subject to the provisions of this Agreement, the Borrower shall be entitled under this Section 2.2(a) to borrow Revolving Loans, repay the same in whole or in part and re-borrow
Revolving Loans hereunder at any time and from time to time during the Commitment Period. The aggregate outstanding amount of all Revolving Loans shall be payable in full on the last day of the Commitment Period. 

(b) Letters of Credit. 

(i) Generally. Subject to the terms and conditions of this Agreement, during the Commitment Period, the Issuing Lender
shall, in its own name, on behalf of the Revolving Lenders, issue such Letters of Credit for the account of the Borrower or any other Company (provided that with respect to any Company that is not a Guarantor of Payment, the Borrower shall be a
co-applicant, and be jointly and severally liable, with respect to each Letter of Credit issued for the account of such Company), as the Borrower may from time to time request. The Borrower shall not request any Letter of Credit (and the Issuing
Lender shall not be obligated to issue any Letter of Credit) if, after giving effect thereto, (A) the Letter of Credit Exposure would exceed the Letter of Credit
Commitment, or (B) the Revolving Credit Exposure would exceed the Revolving Credit Commitment, or (C) with respect to a request for a Letter of Credit to be issued in an Alternate Currency, the Alternate Currency
Exposure would exceed the Alternate Currency Maximum Amount. The issuance of each Letter of Credit shall confer upon each Revolving Lender the benefits and liabilities of a participation
consisting of an undivided pro rata interest in the Letter of Credit to the extent of such Revolving Lender’s Commitment Percentage. 

  
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 (ii) Request for Letter of Credit. Each request for a Letter of
Credit shall be delivered to the Administrative Agent (and to the Issuing Lender, if the Issuing Lender is a Lender other than the Administrative Agent) by an Authorized Officer not later than 11:00 A.M. (Eastern time) three Business Days prior to
the date of the proposed issuance of the Letter of Credit (or such shorter period as may be acceptable to the Issuing Lender). Each such request shall be in a form acceptable to the Administrative Agent (and the Issuing Lender, if the Issuing Lender
is a Lender other than the Administrative Agent) and shall specify the face amount thereof, whether such Letter of Credit is a commercial documentary or a standby Letter of Credit, the account party, the beneficiary, the requested date of issuance,
amendment, renewal or extension, the expiry date thereof, and
thethe Alternate Currency if a Letter of Credit denominated in an Alternate Currency is requested, and
the nature of the transaction or obligation to be supported thereby. Concurrently with each such request, the Borrower, and any other Company for whose account the Letter of Credit is to be
issued, shall execute and deliver to the Issuing Lender an appropriate application and agreement, being in the standard form of the Issuing Lender for such letters of credit, as amended to conform to the provisions of this Agreement if required by
the Administrative Agent. The Administrative Agent shall give the Issuing Lender and each Revolving Lender notice of each such request for a Letter of Credit. In the event of any inconsistency between the terms and conditions of this Agreement and
the terms and conditions of any form of letter of credit application or other agreement submitted by the Borrower to, or entered into by the Borrower with, the Issuing Lender relating to any Letter of Credit, the terms and conditions of this
Agreement shall control. 
 (iii) Letter of Credit Fees. 

(A) Commercial Documentary Letters of Credit Fees. With respect to each Letter of Credit that shall be a commercial
documentary letter of credit and the drafts thereunder, whether issued for the account of the Borrower or a Company, the Borrower agrees to (1) pay to the Administrative Agent, for the pro rata benefit of the Revolving Lenders, a non-refundable
commission based upon the face amount of such Letter of Credit, which shall be paid quarterly in arrears, on each Regularly Scheduled Payment Date, in an amount equal to the aggregate sum of the Letter of Credit Fee for such Letter of Credit for
each day of such quarter; and (2) pay to the Administrative Agent, for the sole benefit of the Issuing Lender such other issuance, amendment, renewal, negotiation, draw, acceptance, telex, courier, postage and similar transactional fees as are
customarily charged by the Issuing Lender in respect of the issuance and administration of similar letters of credit under its fee schedule as in effect from time to time. 

  
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 (B) Standby Letters of Credit Fees. With respect to each Letter of
Credit that shall be a standby letter of credit and the drafts thereunder, if any, whether issued for the account of the Borrower or a Company, the Borrower agrees to (1) pay to the Administrative Agent, for the pro rata benefit of the
Revolving Lenders, a non-refundable commission based upon the face amount of such Letter of Credit, which shall be paid quarterly in arrears, on each Regularly Scheduled Payment Date, in an amount equal to the aggregate sum of the Letter of Credit
Fee for such Letter of Credit for each day of such quarter; (2) pay to the Administrative Agent, for the sole benefit of the Issuing Lender, an additional Letter of Credit fee, which shall be paid on each date that such Letter of Credit shall
be issued, amended or renewed at the rate of fifteen basis points percent (15.00 bps) of the face amount of such Letter of Credit; and (3) pay to the Administrative Agent, for the sole benefit of the Issuing Lender, such other issuance,
amendment, renewal, negotiation, draw, acceptance, telex, courier, postage and similar transactional fees as are customarily charged by the Issuing Lender in respect of the issuance and administration of similar letters of credit under its fee
schedule as in effect from time to time. 
 (iv) Refunding of Letters of Credit with Revolving Loans. Whenever a
Letter of Credit shall be drawn, the Borrower shall immediately reimburse the Issuing Lender for the amount drawn. In the event that the amount drawn shall not have been reimbursed by the Borrower on the date of the drawing of such Letter of Credit,
at the sole option of the Administrative Agent, the Borrower shall be deemed to have requested a Revolving Loan, subject to the provisions of Sections 2.2(a) and 2.5 hereof (other than the requirement set forth in Section 2.5(d) hereof), in the
amount drawn. Such Revolving Loan shall be evidenced by the Revolving Credit Notes (or, if a Lender has not requested a Revolving Credit Note, by the records of the Administrative Agent and such Lender). Each Revolving Lender agrees to make a
Revolving Loan on the date of such notice, subject to no conditions precedent whatsoever. Each Revolving Lender acknowledges and agrees that its obligation to make a Revolving Loan pursuant to Section 2.2(a) hereof when required by this
Section 2.2(b)(iv) shall be absolute and unconditional and shall not be affected by any circumstance whatsoever, including, without limitation, the occurrence and continuance of a Default or Event of Default, and that its payment to the
Administrative Agent, for the account of the Issuing Lender, of the proceeds of such Revolving Loan shall be made without any offset, abatement, recoupment, counterclaim, withholding or reduction whatsoever and whether or not the Revolving Credit
Commitment shall have been reduced or terminated. The Borrower irrevocably authorizes and instructs the Administrative Agent to apply the proceeds of any borrowing pursuant to this Section 2.2(b)(iv) to reimburse, in full (other than the
Issuing Lender’s pro rata share of such borrowing),the Issuing Lender for the amount drawn on such Letter of Credit. Each such Revolving Loan shall be deemed to be a Base Rate Loan unless otherwise requested by and available to the Borrower
hereunder. Each Revolving Lender is hereby authorized to record on its records relating to its Revolving Credit Note (or, if such Revolving Lender has not requested a Revolving Credit Note, its records relating to Revolving Loans) such Revolving
Lender’s pro rata share of the amounts paid and not reimbursed on the Letters of Credit. 

  
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 (v) Participation in Letters of Credit. If, for any reason, the
Administrative Agent (and the Issuing Lender if the Issuing Lender is a Lender other than the Administrative Agent) shall be unable to or, in the opinion of the Administrative Agent, it shall be impracticable to, convert any amount drawn under a
Letter of Credit to a Revolving Loan pursuant to the preceding subsection, or if the amount not reimbursed is a Letter
of Credit drawn in an Alternate Currency, the Administrative Agent (and the Issuing Lender if the Issuing Lender is a Lender other than the Administrative Agent) shall have the right to request
that each Revolving Lender fund a participation in the amount due (or the Dollar Equivalent with respect to a
Letter of Credit in an Alternate Currency) with respect to such Letter of Credit, and the Administrative Agent shall promptly notify each Revolving Lender thereof (by facsimile or email (in each
case confirmed by telephone) or telephone (confirmed in writing)). Upon such notice, but without further action, the Issuing Lender hereby agrees to grant to each Revolving Lender, and each Revolving Lender hereby agrees to acquire from the Issuing
Lender, an undivided participation interest in the amount due with respect to such Letter of Credit in an amount equal to such Revolving Lender’s Commitment Percentage of the principal amount due with respect to such Letter of Credit. In
consideration and in furtherance of the foregoing, each Revolving Lender hereby absolutely and unconditionally agrees, upon receipt of notice as provided above, to pay to the Administrative Agent, for the account of the Issuing Lender, such
Revolving Lender’s ratable share of the amount due with respect to such Letter of Credit (determined in accordance with such Revolving Lender’s Commitment Percentage). Each Revolving Lender acknowledges and agrees that its obligation to
acquire participations in the amount due under any Letter of Credit that is drawn but not reimbursed by the Borrower pursuant to this subsection (v) shall be absolute and unconditional and shall not be affected by any circumstance whatsoever,
including, without limitation, the occurrence and continuance of a Default or Event of Default, and that each such payment shall be made without any offset, abatement, recoupment, counterclaim, withholding or reduction whatsoever and whether or not
the Revolving Credit Commitment shall have been reduced or terminated. Each Revolving Lender shall comply with its obligation under this subsection (v) by wire transfer of immediately available funds (in Dollars, and in the case of a Letter of Credit issued and drawn in an Alternate Currency, the Dollar Equivalent for
amounts drawn in such Alternate Currency), in the same manner as provided in Section 2.5 hereof with respect to Revolving Loans. Each Revolving Lender is hereby authorized to record on its
records such Revolving Lender’s pro rata share of the amounts paid and not reimbursed on the Letters of Credit. 

(vi) Auto-Renewal Letters of Credit. If the Borrower so requests, a Letter of Credit shall have an automatic renewal
provision; provided that any Letter of Credit that has an automatic renewal provision must permit the Administrative Agent (or the applicable Issuing Lender if the Issuing Lender is a Lender other than the Administrative Agent) to prevent any such
renewal by giving prior notice to the beneficiary thereof not later than thirty (30) days prior to the renewal date of such Letter of Credit (or such other period as agreed to by the Administrative Agent and the Issuing Lender). Once any such
Letter of Credit that has automatic renewal provisions has been issued, the Revolving Lenders shall be deemed to have authorized (but may not require) the Administrative Agent (and the Issuing Lender) to permit at any time the renewal of such Letter
of Credit to an expiry date not later than one year after the last day of the Commitment Period. 

  
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 (vii) Letters of Credit Outstanding Beyond the Commitment Period. If
any Letter of Credit is outstanding upon the termination of the Commitment, then, upon such termination, the Borrower shall deposit with the Administrative Agent, for the benefit of the Issuing Lender, with respect to all outstanding Letters of
Credit, either cash or a Supporting Letter of Credit, which, in each case, is (A) in an amount equal to one hundred three percent (103%) of the undrawn amount of the outstanding Letters of Credit, and (B) free and clear of all rights
and claims of third parties. The cash shall be deposited in an escrow account at a financial institution designated by the Issuing Lender. The Issuing Lender shall be entitled to withdraw (with respect to the cash) or draw (with respect to the
Supporting Letter of Credit) amounts necessary to reimburse the Issuing Lender for payments to be made under the Letters of Credit and any fees and expenses associated with such Letters of Credit, or incurred pursuant to the reimbursement agreements
with respect to such Letters of Credit. The Borrower shall also execute such documentation as the Administrative Agent or the Issuing Lender may reasonably require in connection with the survival of the Letters of Credit beyond the Commitment or
this Agreement. After expiration of all undrawn Letters of Credit, the Supporting Letter of Credit or the remainder of the cash, as the case may be, shall promptly be returned to the Borrower. 

(c) Swing Loans. 

(i) Generally. Subject to the terms and conditions of this Agreement, during the Commitment Period, the Swing Line
Lender shall make a Swing Loan or Swing Loans to the Borrower in such amount or amounts as the Borrower, through an Authorized Officer, may from time to time request and to which the Swing Line Lender may agree; provided that the Borrower shall not
request any Swing Loan if, after giving effect thereto, (A) the Revolving Credit Exposure would exceed the Revolving Credit Commitment, or (B) the Swing Line Exposure would exceed the Swing Line Commitment. Each Swing Loan shall be due and
payable on the Swing Loan Maturity Date applicable thereto. Each Swing Loan shall be made in Dollars. 
 (ii) Refunding of
Swing Loans. As often as the Administrative Agent, in its sole discretion, deems appropriate, but in no event later than 11:00 A.M. (Eastern time) on each Wednesday (or the next Business Day if such Wednesday is not a Business Day) (each a
“Settlement Date”), the Swing Line Lender shall require (and the Revolving Lenders and the Borrower agree that the Swing Line Lender shall have the right to so require) that the then outstanding Swing Loans be refinanced as a Revolving
Loan. Such Revolving Loan shall be a Base Rate Loan unless otherwise requested by and available to the Borrower hereunder. Upon receipt of such notice by the Borrower and the Revolving Lenders, the Borrower shall be deemed, on such day, to have
requested a Revolving Loan in the principal amount of such Swing Loan in accordance with Sections 2.2(a) and 2.5 hereof (other than the requirement set forth in Section 2.5(d) hereof). Such Revolving Loan shall be evidenced by the Revolving
Credit Notes (or, if a Revolving Lender has not requested a Revolving Credit Note, by the records of the Administrative Agent and such Revolving Lender). Each Revolving Lender agrees to make a Revolving Loan on the date of such notice, subject to no
conditions precedent whatsoever. Each Revolving 

  
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Lender acknowledges and agrees that such Revolving Lender’s obligation to make a Revolving Loan pursuant to Section 2.2(a) hereof when required by this Section 2.2(c)(ii) is
absolute and unconditional and shall not be affected by any circumstance whatsoever, including, without limitation, the occurrence and continuance of a Default or Event of Default, and that its payment to the Administrative Agent, for the account of
the Swing Line Lender, of the proceeds of such Revolving Loan shall be made without any offset, abatement, recoupment, counterclaim, withholding or reduction whatsoever and whether or not the Revolving Credit Commitment shall have been reduced or
terminated. The Borrower irrevocably authorizes and instructs the Administrative Agent to apply the proceeds of any borrowing pursuant to this Section 2.2(c)(ii) to repay in full such Swing Loan. Each Revolving Lender is hereby authorized to
record on its records relating to its Revolving Credit Note (or, if such Revolving Lender has not requested a Revolving Credit Note, its records relating to Revolving Loans) such Revolving Lender’s pro rata share of the amounts paid to refund
such Swing Loan. 
 (iii) Participation in Swing Loans. If, for any reason, the Swing Line Lender is unable to or, in
the opinion of the Administrative Agent, it is impracticable to, convert any Swing Loan to a Revolving Loan pursuant to the preceding Section 2.2(c)(ii), then on any day that a Swing Loan is outstanding (whether before or after the maturity
thereof), the Administrative Agent shall have the right to request that each Revolving Lender fund a participation in such Swing Loan, and the Administrative Agent shall promptly notify each Revolving Lender thereof (by facsimile or email (in each
case confirmed by telephone), or telephone (confirmed in writing)). Upon such notice, but without further action, the Swing Line Lender hereby agrees to grant to each Revolving Lender, and each Revolving Lender hereby agrees to acquire from the
Swing Line Lender, an undivided participation interest in the right to share in the payment of such Swing Loan in an amount equal to such Revolving Lender’s Commitment Percentage of the principal amount of such Swing Loan. In consideration and
in furtherance of the foregoing, each Revolving Lender hereby absolutely and unconditionally agrees, upon receipt of notice as provided above, to pay to the Administrative Agent, for the benefit of the Swing Line Lender, such Revolving Lender’s
ratable share of such Swing Loan (determined in accordance with such Revolving Lender’s Commitment Percentage). Each Revolving Lender acknowledges and agrees that its obligation to acquire participations in Swing Loans pursuant to this
Section 2.2(c)(iii) is absolute and unconditional and shall not be affected by any circumstance whatsoever, including, without limitation, the occurrence and continuance of a Default or an Event of Default, and that each such payment shall be
made without any offset, abatement, recoupment, counterclaim, withholding or reduction whatsoever and whether or not the Revolving Credit Commitment shall have been reduced or terminated. Each Revolving Lender shall comply with its obligation under
this Section 2.2(c)(iii) by wire transfer of immediately available funds, in the same manner as provided in Section 2.5 hereof with respect to Revolving Loans to be made by such Revolving Lender. 

  
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 Section 2.3. Interest. 

(a) Revolving Loans. 

(i) Base Rate Loan. The Borrower shall pay interest on the unpaid principal amount of a Revolving Loan that is a Base
Rate Loan outstanding from time to time from the date thereof until paid at the Derived Base Rate from time to time in effect. Interest on such Base Rate Loan shall be payable, commencing December 31, 2017, and continuing on each Regularly
Scheduled Payment Date thereafter and at the maturity thereof. 
 (ii) Daily LIBOR Loans. The Borrower shall pay
interest on the unpaid principal amount of a Revolving Loan that is a Daily LIBOR Loan outstanding from time to time from the date thereof until paid, at the Derived Daily LIBOR Rate from time to time in effect. Interest on such Daily LIBOR Loan
shall be payable, commencing December 31, 2017, and continuing on each Regularly Scheduled Payment Date thereafter and at the maturity thereof. 

(iii) Eurodollar Loans. The Borrower shall pay interest on the unpaid principal amount of each Revolving Loan that is a
Eurodollar Loan outstanding from time to time, with the interest rate to be fixed in advance on the first day of the Interest Period applicable thereto through the last day of the Interest Period applicable thereto (but subject to changes in the
Applicable Margin for Eurodollar Loans), at the Derived Eurodollar Rate. Interest on such Eurodollar Loan shall be payable on each Interest Adjustment Date with respect to an Interest Period (provided that, if an Interest Period shall exceed three
months, the interest must also be paid every three months, commencing three months from the beginning of such Interest Period). 

(iii)
 Alternate Currency Loans. The Borrower shall pay interest on the unpaid principal amount of each Alternate Currency Loan outstanding from time to time, with the interest rate to be fixed in advance on the first day of the Interest Period applicable
thereto through the last day of the Interest Period applicable thereto (but subject to changes in the Applicable Margin for Alternate Currency Loans), at the Derived Alternate Currency Rate. Interest on such Alternate Currency Loan shall be payable
on each Interest Adjustment Date with respect to an Interest Period (provided that, if an Interest Period shall exceed three months, the interest must also be paid every three months, commencing three months from the beginning of such Interest
Period). 
 (b) Swing Loans. The Borrower shall pay interest to the
Administrative Agent, for the sole benefit of the Swing Line Lender (and any Revolving Lender that shall have funded a participation in such Swing Loan), on the unpaid principal amount of each Swing Loan outstanding from time to time from the date
thereof until paid at the Derived Daily LIBOR Rate from time to time in effect. Interest on each Swing Loan shall be payable on the Swing Loan Maturity Date applicable thereto. Each Swing Loan shall bear interest for a minimum of one day. 

  
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 (c) Default Rate. Anything herein to the contrary notwithstanding, if an Event of
Default shall occur and be continuing, upon the election of the Administrative Agent or the Required Lenders (i) the principal of each Loan and the unpaid interest thereon shall bear interest, until paid, at the Default Rate, (ii) the fee
for the aggregate undrawn amount of all issued and outstanding Letters of Credit shall be increased by two percent (2%) in excess of the rate otherwise applicable thereto, and (iii) in the case of any other amount not paid when due from
the Borrower hereunder or under any other Loan Document, such amount shall bear interest at the Default Rate; provided that, during the existence of an Event of Default under Section 8.12 hereof, the applicable Default Rate shall apply without
any election or action on the part of the Administrative Agent or any Lender. 
 (d) Limitation on Interest. In no event shall the
rate of interest hereunder exceed the maximum rate allowable by law. Notwithstanding anything to the contrary contained in any Loan Document, the interest paid or agreed to be paid under the Loan Documents shall not exceed the maximum rate of
non-usurious interest permitted by applicable Law (the “Maximum Rate”). If the Administrative Agent or any Lender shall receive interest in an amount that exceeds the Maximum Rate, the excess interest shall be applied to the principal of
the Loans or, if it exceeds such unpaid principal, refunded to the Borrower. In determining whether the interest contracted for, charged, or received by the Administrative Agent or a Lender exceeds the Maximum Rate, such Person may, to the extent
permitted by applicable Law, (i) characterize any payment that is not principal as an expense, fee, or premium rather than interest, (ii) exclude voluntary prepayments and the effects thereof, and (iii) amortize, prorate, allocate,
and spread in equal or unequal parts the total amount of interest throughout the contemplated term of the Obligations. 

Section 2.4. Evidence of Indebtedness. 

(a) Revolving Loans. Upon the request of a Revolving Lender, to evidence the obligation of the Borrower to repay the portion of the
Revolving Loans made by such Revolving Lender and to pay interest thereon, the Borrower shall execute a Revolving Credit Note, payable to the order of such Revolving Lender in the principal amount equal to its Commitment Percentage of the Maximum
Revolving Amount, or, if less, the aggregate unpaid principal amount of Revolving Loans made by such Revolving Lender; provided that the failure of a Revolving Lender to request a Revolving Credit Note shall in no way detract from the
Borrower’s obligations to such Revolving Lender hereunder. 
 (b) Swing Loans. Upon the request of the Swing Line Lender, to
evidence the obligation of the Borrower to repay the Swing Loans and to pay interest thereon, the Borrower shall execute a Swing Line Note, payable to the order of the Swing Line Lender in the principal amount of the Swing Line Commitment, or, if
less, the aggregate unpaid principal amount of Swing Loans made by the Swing Line Lender; provided that the failure of the Swing Line Lender to request a Swing Line Note shall in no way detract from the Borrower’s obligations to the Swing Line
Lender hereunder. 

  
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 Section 2.5. Notice of Loans and Credit Events; Funding of Loans. 

(a) Notice of Loans and Credit Events. The Borrower, through an Authorized Officer, shall provide to the Administrative Agent a Notice
of Loan prior to (i) 11:00 A.M. (Eastern time) on the proposed date of borrowing of, or conversion of a Loan to, a Base Rate Loan, (ii) 11:00 A.M. (Eastern time) three Business Days prior to the proposed date of borrowing of, continuation
of, or conversion of a Loan to, a
EurodollarLIBOR Fixed Rate Loan, (iii) 11:00
A.M. (Eastern time) on the proposed date of borrowing of, or conversion of a Loan to, a Daily LIBOR Loan, and (iv) 2:00 P.M. (Eastern time) on the proposed date of borrowing of a Swing Loan (or such later time as agreed to from time to time by
the Swing Line Lender); provided that, if a request for a Revolving Loan that is a Base Rate Loan shall not be on a Settlement Date, such request shall be deemed to be a request for a Swing Loan (unless the Administrative Agent shall elect to have
the Revolving Lenders fund such request with a Revolving Loan that meets the requirements of this Section 2.6) so long as the Swing Line Exposure does not exceed the Swing Line Commitment. An Authorized Officer of the Borrower may verbally
request a Loan, so long as a Notice of Loan is received by the end of the same Business Day, and, if the Administrative Agent or any Lender provides funds or initiates funding based upon such verbal request, the Borrower shall bear the risk with
respect to any information regarding such funding that is later determined to have been incorrect. The Borrower shall comply with the notice provisions set forth in Section 2.2(b) hereof with respect to Letters of Credit. 

(b) Funding of Loans. The Administrative Agent shall notify each Revolving Lender of the date, amount, the type of currency and Interest Period (if applicable) promptly upon
the receipt of a Notice of Loan (other than for a Swing Loan, or a Revolving Loan to be funded as a Swing Loan), and, in any event, by 2:00 P.M. (Eastern time) on the date such Notice of Loan is received. On the date that the Credit Event set forth
in such Notice of Loan is to occur, each such Revolving Lender shall provide to the Administrative Agent, not later than 3:00 P.M. (Eastern time), the amount in
Dollars, or, with respect to an Alternate Currency, in the applicable Alternate Currency, in federal or other immediately available funds, required of it. If the Administrative Agent shall elect to advance the proceeds of such Loan prior to receiving funds from such Revolving Lender, the
Administrative Agent shall have the right, upon prior notice to the Borrower, to debit any account of the Borrower or otherwise receive such amount from the Borrower, promptly after demand, in the event that such Revolving Lender shall fail to
reimburse the Administrative Agent in accordance with this subsection (b). The Administrative Agent shall also have the right to receive interest from such Revolving Lender at the Federal Funds Effective Rate in the event that such Revolving Lender
shall fail to provide its portion of the Loan on the date requested and the Administrative Agent shall elect to provide such funds. 

(c) Conversion and Continuation of Loans. 

(i) At the request of the Borrower to the Administrative Agent, subject to the notice and other provisions of this Agreement,
the appropriate Lenders shall convert a Base Rate Loan or a Daily LIBOR Loan to one or more Eurodollar Loans at any time and shall convert a Eurodollar Loan to a Base Rate Loan or a Daily LIBOR Loan on any Interest Adjustment Date applicable
thereto. Swing Loans may be converted by the Swing Line Lender to Revolving Loans in accordance with Section 2.2(c)(ii)
hereof.
No
Alternate Currency Loan may be converted to a Base Rate Loan, Eurodollar Loan or LIBOR Loan and no Base Rate
Loan, Eurodollar Loan, or LIBOR Loan may be converted to an Alternate Currency Loan. 

  
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 (ii) At the request of the Borrower to the Administrative Agent, subject to
the notice and other provisions of this Agreement, the appropriate Lenders shall continue one or more Eurodollar Loans as of the end of the applicable Interest Period as a new Eurodollar Loan with a new Interest Period. 

(d) Minimum Amount for Loans. Each request for: 

(i) a Base Rate Loan shall be in an amount of not less than Five Hundred Thousand Dollars ($500,000), increased by increments
of One Hundred Thousand Dollars ($100,000); provided that, during a Cash Dominion Period, there shall be no minimum amount for Base Rate Loans; 

(ii) a EurodollarLIBOR Fixed Rate Loan or Daily LIBOR Loan shall be in an amount of not
less than Five Hundred Thousand Dollars ($500,000), increased by increments of One Hundred Thousand Dollars
($100,000) (or, with respect to an Alternate Currency Loan, such approximately comparable amount as shall result
in an amount rounded to the nearest whole number); and 
 (iii) a
Swing Loan shall be in an amount of not less than One Hundred Thousand Dollars ($100,000), or such lower amount as may be agreed by the Swing Line Lender. 

(e) Interest Periods. The Borrower shall not request that Daily LIBOR Loans and EurodollarLIBOR Fixed
Rate Loans be outstanding for more than fiveseven different interest periods at the same time. 

Section 2.6. Payment on Loans and Other Obligations. 

(a) Payments Generally. Each payment made hereunder or under any other Loan Document by a Credit Party shall be made without any offset,
abatement, recoupment, counterclaim, withholding or reduction whatsoever, except as otherwise provided by Section 3.2 hereof. 
 (b) Payments in Alternate Currency. With respect to any Alternate Currency Loan, all payments (including prepayments) to any
Lender of the principal of or interest on such Alternate Currency Loan shall be made in the same Alternate Currency as the original Loan. For clarification, the amount outstanding on any Alternate Currency Loan for purposes of repayment on the last
day of the applicable Interest Period shall be measured in the Alternate Currency and not by the Dollar Equivalent of such amount. With respect to any Letter of Credit issued in an Alternate Currency, all payments to the Issuing Lender (and to any
Lender that shall have funded its participation in such Letter of Credit) shall be made in the Dollar Equivalent (as determined on the date of drawing of such Letter of Credit) of the amount of such Alternate Currency Letter 

  
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of Credit. All such payments
shall be remitted by the Borrower to the Administrative Agent, at the address of the Administrative Agent for notices referred to in Section 11.4 hereof (or at such other office or account as designated in writing by the Administrative Agent to
the Borrower), for the account of the Lenders (or the Issuing Lender or the Swing Line Lender, as appropriate) not later than 11:00 A.M. (Eastern time) on the due date thereof in same day funds. Any such payments received by the Administrative Agent
after 11:00 A.M. (Eastern time) shall be deemed to have been made and received on the next Business Day. 

(bc) Payments from Borrower. AllWith respect to
(i) any Loan (other than an Alternate Currency Loan), or (ii) any other payment to the Administrative Agent and the Lenders that shall not be covered by subsection (b) above, all
such payments (including prepayments) to the Administrative Agent of the principal of or interest on each Loan or other payment, including but not limited to principal, interest, fees or any other
amount owed by the Borrower under this Agreement, shall be made in Dollars. All payments described in this subsection (b) shall be remitted to the Administrative Agent, at the address of the Administrative Agent for notices referred to in
Section 11.4 hereof for the account of the appropriate Lenders (or the Issuing Lender or the Swing Line Lender, as appropriate) not later than 1:00 P.M. (Eastern time) on the due date thereof in immediately available funds. Any such payments
received by the Administrative Agent (or the Issuing Lender or the Swing Line Lender) after 1:00 P.M. (Eastern time) shall be deemed to have been made and received on the next Business Day. 

(cd) Payments to Lenders. On each Settlement Date (and more
frequently if deemed appropriate by the Administrative Agent), the Administrative Agent shall distribute to each Lender its ratable share receipt of payments hereunder, the Administrative Agent shall immediately distribute to the appropriate Lenders
(except with respect to Swing Loans, which shall be paid to the Swing Line Lender and any Lender that has funded a participation in the Swing Loans, or, with respect to Letters of Credit, certain of which payments shall be paid to the Issuing
Lender) their respective ratable shares, if any, of the amount of principal payments received by the Administrative Agent for the account of such Lender. With respect to interest, commitment fees and other payments received by the Administrative
Agent from the Borrower, the Administrative Agent shall promptly distribute to each Lender its ratable share, if any, of the amount of interest, commitment fee or other payment received by the Administrative Agent for the account of such Lender.
Payments received by the Administrative Agent in Dollars
shall be delivered to the Lenders in Dollars in immediately
available funds. Each
appropriatePayments received by the Administrative Agent in any Alternate Currency shall be delivered
to the Lenders in such Alternate Currency in same day funds. Each Lender shall record any principal, interest or other payment, the principal amounts of Base Rate Loans, Daily LIBOR Loans,
Eurodollar Loans, Alternate Currency Loans, Swing Loans and
Letters of Credit, the type of currency for each Loan, all
prepayments and the applicable dates, including Interest Periods, with respect to the Loans made, and payments received by such Lender, by such method as such Lender may generally employ; provided that failure to make any such entry shall in no way
detract from the obligations of the Borrower under this Agreement or any Note. The aggregate unpaid amount of Loans, types of Loans, Interest Periods and similar information with respect to the Loans and Letters of Credit set forth on the records of
the Administrative Agent shall be rebuttably presumptive evidence with respect to such information, including the amounts of principal, interest and fees owing to each Lender. 

  
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(de) Timing of Payments. Whenever any payment to be made hereunder,
including, without limitation, any payment to be made on any Loan, shall be stated to be due on a day that is not a Business Day, such payment shall be made on the next Business Day and such extension of time shall in each case be included in the
computation of the interest payable on such Loan; provided that, with respect to a EurodollarLIBOR Fixed Rate Loan, if the next Business Day shall fall in the
succeeding calendar month, such payment shall be made on the preceding Business Day and the relevant Interest Period shall be adjusted accordingly. 

Section 2.7. Prepayment. 

(a) Right to Prepay. 

(i) The Borrower shall have the right at any time or from time to time to prepay, on a pro rata basis for all of the
appropriate Lenders (except with respect to Swing Loans, which shall be paid to the Swing Line Lender and any Revolving Lender that has funded a participation in such Swing Loan), all or any part of the principal amount of the Loans then
outstanding, as designated by the Borrower. Such payment shall include interest accrued on the amount so prepaid to the date of such prepayment and any amount payable under Article III hereof with respect to the amount being prepaid. Prepayments of
Loans shall be without any premium or penalty, except as provided in Section 3.3 with respect to Eurodollar Loans and, to the extent such prepayment is accompanied by a reduction in the Revolving Credit Commitment, any early termination fee
payable under Section 2.8(e) hereof. 
 (ii) The Borrower shall have the right, at any time or from time to time, to
prepay, for the benefit of the Swing Line Lender (and any Revolving Lender that has funded a participation in such Swing Loan), all or any part of the principal amount of the Swing Loans then outstanding, as designated by the Borrower, plus interest
accrued on the amount so prepaid to the date of such prepayment. 
 (b) Notice of Prepayment. The Borrower shall give the
Administrative Agent irrevocable written notice of prepayment of (i) a Base Rate Loan, Daily LIBOR Loan or Swing Loan by no later than 11:00 A.M. (Eastern time) on the Business Day on which such prepayment is to be made, and (ii) a EurodollarLIBOR Fixed
Rate Loan by no later than 1:00 P.M. (Eastern time) three Business Days before the Business Day on which such prepayment is to be made; provided that this notice requirement shall not be
applicable, during a Cash Dominion Period, with respect to the daily application of funds in the Cash Collateral Accounts to prepay the Loans. 

(c) Minimum Amount for Eurodollar Loans. Each prepayment of a
EurodollarLIBOR Fixed
Rate Loan shall be in the principal amount of not less than the lesser of Five Hundred Thousand Dollars ($500,000), or the principal amount of such Loan, (or, with respect to an
Alternate Currency Loan, the Dollar Equivalent (rounded to a comparable amount) of such amount), or, with respect to a Swing Loan, the principal balance of such Swing Loan, except in the case of a
mandatory payment pursuant to Section 2.10(b) or Article III hereof. 

  
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 Section 2.8. Commitment and Other Fees; Reduction of Revolving Credit
Commitment. 
 (a) Commitment Fee. The Borrower shall pay to the Administrative Agent, for the ratable account of the Revolving
Lenders, as a consideration for the Revolving Credit Commitment, a commitment fee, for each day from the Closing Date through the last day of the Commitment Period, in an amount equal to (i) (A) the Maximum Revolving Amount at the end of
such day, minus (B) the Revolving Credit Exposure (exclusive of the Swing Line Exposure) at the end of such day, multiplied by (ii) the Applicable Commitment Fee Rate in effect on such day divided by three hundred sixty (360). The
commitment fee shall be payable monthly in arrears, commencing on December 31, 2017 and continuing on the last day of each Regularly Scheduled Payment Date thereafter, and on the last day of the Commitment Period. 

(b) Administrative Agent Fee. The Borrower shall pay to the Administrative Agent, for its sole benefit, the fees set forth in the
Administrative Agent Fee Letter. 
 (c) Collateral Audit Fees. The Borrower shall promptly reimburse the Administrative Agent, for its
sole benefit, for all costs and expenses relating to collateral field audits and any other collateral assessment expenses that may be conducted from time to time by or on behalf of the Administrative Agent, the scope and frequency of which shall be
in the reasonable discretion of the Administrative Agent; provided that, other than (i) during the continuance of an Event of Default, or (ii) if the Average Revolving Credit Availability has been less than Ten Million Dollars for the
immediately preceding thirty (30) days; such audits and collateral assessments shall be conducted no more frequently than once per fiscal year of the Borrower. 

(d) Authorization to Debit Account. Each Credit Party hereby agrees that the Administrative Agent has the right to debit from any
Deposit Account (other than an Excluded Deposit Account) of the Borrower or any other Credit Party, amounts owing to the Administrative Agent and the Lenders by the Borrower under this Agreement and the Loan Documents for payment of fees, expenses
and other amounts incurred or owing in connection therewith, provided that, absent an Event of Default, the Administrative Agent shall provide prior notice to the Borrower of any such debits. 

(e) Early Termination Fee. If the Borrower terminates or reduces in whole the Revolving Credit Commitment (the “Early Termination
Event”), then the Borrower shall pay to the Administrative Agent, for the benefit of the Lenders, an early termination fee in an amount equal to: 

(i) if the Early Termination Event shall occur prior to the first anniversary of the Closing Date, one percent (1%) of the
average of the Total Commitment Amount as in effect on the last day of each calendar month from the Closing Date to the date of the Early Termination Event; or 

(ii) if the Early Termination Event shall occur on or after the first anniversary of the Closing Date but prior to the second
anniversary of the Closing Date, one-half percent (1/2%) of the average of the Total Commitment Amount as in effect on the last day of each of the twelve (12) calendar months immediately preceding the date of the Early Termination Event;

  
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 provided that, if the Early Termination Event shall occur on or after the second anniversary of the Closing
Date or if the Commitment is terminated pursuant to a refinancing from the Administrative Agent and the Lenders (or an Affiliate of the Administrative Agent and the Lenders) or in connection with a Change of Control, then the early termination fees
set forth in this subsection (e) shall not be applicable. 
 (f) Optional Reduction of Revolving Credit Commitment. The Borrower
may at any time and from time to time permanently reduce in whole or ratably in part the Maximum Revolving Amount to an amount not less than the then existing Revolving Credit Exposure, by giving the Administrative Agent not fewer than three
Business Days’ written notice of such reduction, provided that any such partial reduction shall be in an aggregate amount, for all of the Lenders, of not less than Five Million Dollars ($5,000,000), increased in increments of Five Hundred
Thousand Dollars ($500,000). The Administrative Agent shall promptly notify each Revolving Lender of the date of each such reduction and such Revolving Lender’s proportionate share thereof. After each such partial reduction, the commitment fees
payable hereunder shall be calculated upon the Maximum Revolving Amount as so reduced. If the Borrower reduces in whole the Maximum Revolving Amount, on the effective date of such reduction (the Borrower having prepaid in full the unpaid principal
balance, if any, of the Loans, together with all interest (if any), any early termination fees as set forth in subsection (e) above (if any), and commitment and other fees accrued and unpaid with respect thereto, and all other Obligations, and
provided that no Letter of Credit Exposure or Swing Line Exposure shall exist), all of the Revolving Credit Notes shall be delivered to the Administrative Agent marked “Canceled” and the Administrative Agent shall redeliver such Revolving
Credit Notes to the Borrower. Any partial reduction in the Maximum Revolving Amount shall be effective during the remainder of the Commitment Period. Upon each decrease of the Maximum Revolving Amount, the Total Commitment Amount shall be decreased
by the same amount. 
 Section 2.9. Computation of Interest and Fees. With the exception of Base Rate Loans, interest on Loans,
Letter of Credit fees, Related Expenses and commitment and other fees and charges hereunder shall be computed on the basis of a year having three hundred sixty (360) days and calculated for the actual number of days elapsed. With respect to
Base Rate Loans, interest shall be computed on the basis of a year having three hundred sixty-five (365) days or three hundred sixty-six (366) days, as the case may be, and calculated for the actual number of days elapsed. 

Section 2.10. Mandatory Payments. 

(a) Revolving Credit Exposure. If, at any time, the Revolving Credit Exposure shall exceed the Revolving Credit Commitment, the Borrower
shall, as promptly as practicable, but in no event later than the next Business Day, pay an aggregate principal amount of the Revolving Loans sufficient to bring the Revolving Credit Exposure within the Revolving Credit Commitment. Each such
mandatory prepayment shall be applied in the following order (i) first, on a pro rata basis for the Lenders, to outstanding Base Rate Loans, and (ii) second, on a pro rata 

  
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 basis for the Lenders, to outstanding Eurodollar Loans; provided that, if the outstanding principal amount
of any Eurodollar Loan shall be reduced to an amount less than the minimum amount set forth in Section 2.5(d) hereof as a result of such prepayment, then such Eurodollar Loan shall be converted into a Base Rate Loan on the date of such
prepayment. If, at any time, the Alternate Currency Exposure shall exceed the Alternate Currency Maximum Amount, the
Borrower shall, as promptly as practicable, but in no event later than the next Business Day, pay an aggregate principal amount of the Alternate Currency Loans sufficient to bring the Alternate Currency Exposure within the Alternate Currency Maximum
Amount. 
 (b) Swing Line Exposure. If, at any time, the Swing Line
Exposure shall exceed the Swing Line Commitment, the Borrower shall, as promptly as practicable, but in no event later than the next Business Day, pay an aggregate principal amount of the Swing Loans sufficient to bring the Swing Line Exposure
within the Swing Line Commitment. 
 (c) Mandatory Prepayments. The Borrower shall make mandatory prepayments (each a “Mandatory
Prepayment”) in accordance with the following provisions: 
 (i) Sale of Assets. Upon the sale or other
disposition of any assets by the Borrower or a Domestic Subsidiary (permitted pursuant to Section 5.12 hereof) to any Person (other than to another Company), in the ordinary course of business and sales permitted pursuant to Sections
5.12(d)-(i) hereof, and, to the extent the proceeds of such sale or other disposition are in excess of Two Hundred Fifty Thousand Dollars ($250,000) during any fiscal year of the Borrower and are not to be reinvested in fixed assets or other
assets useful to the business (including Acquisitions) within three hundred sixty (360) days of such sale or other disposition, the Borrower shall make a Mandatory Prepayment, within five (5) Business Days following the expiration of such
time period, in an amount equal to one hundred percent (100%) of the Net Proceeds of such disposition. 
 (ii)
Material Recovery Event. Within ten Business Days after the occurrence of a Material Recovery Event, the Borrower shall furnish to the Administrative Agent written notice thereof. To the extent the proceeds from insurance attributable to such
Material Recovery Event are not to be reinvested in fixed assets or other assets useful to the business (including Acquisitions permitted hereunder) within three hundred sixty (360) days of such Material Recovery Event, the Borrower shall make
a Mandatory Prepayment, within five (5) Business Days following the expiration of such time period, in an amount equal to one hundred percent (100%) of the Net Proceeds from insurance attributable to such Material Recovery Event. 

(iii) Additional Indebtedness. If, at any time, any of the Borrower or a Domestic Subsidiary shall incur Indebtedness
other than Indebtedness permitted pursuant to Section 5.8 hereof (which other Indebtedness shall not be incurred without the prior written consent of the Administrative Agent and the Required Lenders), the Borrower shall make a Mandatory
Prepayment, on the date that such Indebtedness is incurred, in an amount equal to one hundred percent (100%) of the Net Proceeds of such Indebtedness. 

  
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 (iv) Additional Equity. Within thirty (30) days after any equity
offering in a capital raising transaction (other than, for the avoidance of doubt, the offering or exercise of stock options or other equity awards pursuant to management incentive plans) in excess of Five Million Dollars ($5,000,000) during any
fiscal year of the Borrower by any Credit Party to a Person that is not a Credit Party (which shall be only with the prior written consent of the Administrative Agent and the Required Lenders), the Borrower shall make a Mandatory Prepayment in an
amount equal to one hundred percent (100%) of the Net Proceeds of such equity offering. 
 (d) Application of Mandatory
Prepayments. During a Cash Dominion Period, each Mandatory Prepayment made pursuant to subsection (c) above shall be made by the Borrower by causing all proceeds received by the Borrower in connection with the applicable sale, Material
Recovery Event, incurrence of Indebtedness, or equity offering, as the case may be, to be deposited into the Cash Collateral Account and applied pursuant to Section 2.15 as if such amounts were Collections. During any other period, each
Mandatory Prepayment required to be made pursuant to subsection (c) above shall be applied be applied in the following order: (i) first, on a pro rata basis for the Lenders, to outstanding Base Rate Loans, (ii) second, on a pro rata
basis for the Lenders, to outstanding Daily LIBOR Loans, and (iii) third, on a pro rata basis for the Lenders, to outstanding EurodollarLIBOR Fixed Rate Loans; provided that, if the outstanding principal
amount of any
EurodollarLIBOR Fixed Rate Loan shall be reduced
to an amount less than the minimum amount set forth in Section 2.5(d) hereof as a result of such prepayment, then such Eurodollar Loan shall be converted into a Base Rate Loan on the date of such prepayment; provided that, notwithstanding the
foregoing, if no Event of Default has occurred and is continuing, then any such Mandatory Prepayment applicable to any EurodollarLIBOR Fixed Rate Loan shall be postponed until the last day of the
applicable Interest Period with respect to such
EurodollarLIBOR Fixed Rate Loan (unless the
Lenders agree to waive all breakage compensation in connection therewith). Any prepayment of a Eurodollar Loan or Swing Loan pursuant to this Section 2.10 shall be subject to the prepayment provisions set forth in Article III hereof.

 Section 2.11. Cash Collateral. At any time that there shall exist a Defaulting Lender, within three Business Days
following the written request of the Administrative Agent or the Issuing Lender (with a copy to the Administrative Agent), the Borrower shall Cash Collateralize the Issuing Lender’s Fronting Exposure with respect to such Defaulting Lender
(determined after giving effect to Section 11.11(a)(iv) hereof and any Cash Collateral provided by such Defaulting Lender) in an amount not less than the Minimum Collateral Amount. 

(a) Grant of Security Interest. The Borrower, and to the extent provided by any Defaulting Lender, such Defaulting Lender, hereby grants
to the Administrative Agent, for the benefit of the Issuing Lender, and agrees to maintain, a first priority security interest in all such Cash Collateral as security for the Defaulting Lender’s obligation to fund participations in respect of
the Letter of Credit Exposure, to be applied pursuant to subsection (b) below. If, at any time, the Administrative Agent determines that Cash Collateral is subject to any right or claim of any Person other than the Administrative Agent and the
Issuing Lender as herein provided, or that the total amount of such Cash Collateral is less than the Minimum Collateral Amount, the Borrower will, promptly upon demand by the Administrative Agent, pay or provide to the Administrative Agent
additional Cash Collateral in an amount sufficient to eliminate such deficiency (after giving effect to any Cash Collateral provided by such Defaulting Lender). 

  
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 (b) Application. Notwithstanding anything to the contrary contained in this
Agreement, Cash Collateral provided under this Section 2.11 or Section 11.11 in respect of Letters of Credit shall be applied to the satisfaction of the Defaulting Lender’s obligation to fund participations in respect of the Letter of
Credit Exposure (including, as to Cash Collateral provided by a Defaulting Lender, any interest accrued on such obligation) for which the Cash Collateral was so provided, prior to any other application of such property as may otherwise be provided
for herein. 
 (c) Termination of Requirement. Cash Collateral (or the appropriate portion thereof) provided to reduce the Issuing
Lender’s Fronting Exposure shall no longer be required to be held as Cash Collateral pursuant to this Section 2.11 following (i) the elimination of the applicable Fronting Exposure (including by the termination of Defaulting Lender
status of the applicable Lender), or (ii) the determination by the Administrative Agent and the Issuing Lender that there exists excess Cash Collateral; provided that (A) subject to Section 11.11 hereof, the Person providing Cash
Collateral and the Issuing Lender may agree that Cash Collateral shall be held to support future anticipated Fronting Exposure or other obligations, and (B) the extent that such Cash Collateral was provided by the Borrower, such Cash Collateral
shall remain subject to any security interest granted pursuant to the Loan Documents. 
 Section 2.12. Swap Obligations Keepwell
Provision. The Borrower hereby absolutely, unconditionally and irrevocably undertakes to provide such funds or other support as may be needed from time to time by each other Credit Party in order for such Credit Party to honor its obligations
under the Loan Documents in respect of the Swap Obligations. The obligations of the Borrower under this Section 2.12 shall remain in full force and effect until all Secured Obligations are paid in full. The Borrower intends that this
Section 2.12 constitute, and this Section 2.12 shall be deemed to constitute, a “keepwell, support, or other agreement” for the benefit of each other Credit Party for all purposes of Section 1a(18)(A)(v)(II) of the Commodity
Exchange Act. 
 Section 2.13. Establishment of Reserves. The Administrative Agent, on behalf of the Lenders, shall have the
right, from time to time, in its Permitted Discretion, to establish Reserves in such amounts and with respect to such matters as the Administrative Agent deems necessary or appropriate, and to increase or decrease such Reserves. In exercising such
Permitted Discretion, the Administrative Agent may take into account factors that (a) will or could reasonably be expected to adversely affect the value of any collateral securing the Obligations, the enforceability or priority of the Liens of
the Administrative Agent or the amount that the Administrative Agent, for the benefit of the Lenders, would be likely to receive in the liquidation of such collateral, or (b) may demonstrate that any collateral report or financial information
concerning the Credit Parties is incomplete, inaccurate or misleading in any material respect. In exercising such Permitted Discretion, Reserves may be established against anticipated obligations, contingencies or conditions affecting the Companies,
including, without limitation, (i) tax liabilities and other obligations owing to Governmental Authorities, (ii) asserted and anticipated litigation liabilities, (iii) anticipated remediation for compliance with Environmental 

  
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 Laws, (iv) obligations owing to any lessor of real property, any warehouseman, any processor or any
mortgagor on third party mortgaged sites, (v) obligations or liabilities of the Companies under Hedge Agreements, and (vi) Bank Product Obligations. Reserves may also be established with respect to the dilution of accounts receivable, as a
result of field examinations or other collateral assessments. 
 Section 2.14. Addition of Borrowing Base Company. At the
request of the Borrower and at the sole discretion of the Administrative Agent, a Domestic Subsidiary may become a Borrowing Base Company hereunder, provided that, in addition to the Administrative Agent’s consent, (a) such Domestic
Subsidiary shall have complied with all requirements of Section 5.20 hereof, (b) the assets of such Domestic Subsidiary shall have been subject to a collateral field audit and otherwise evaluated for borrowing base eligibility purposes in
a manner and by field auditors satisfactory to the Administrative Agent, and (c) such Domestic Subsidiary shall have provided to the Administrative Agent such corporate governance and authorization documents and an opinion of counsel and any
other documents and items as may be deemed necessary or advisable by the Administrative Agent, all of the foregoing to be in form and substance reasonably satisfactory to the Administrative Agent. 

Section 2.15. Record of Advances; Application of Collections. 

(a) Maintenance of Record of Advances. The Administrative Agent, on behalf of the Lenders, shall maintain records in respect of the
Credit Parties that shall reflect (i) the aggregate outstanding principal amount of Revolving Loans and accrued interest, (ii) the unreimbursed Letter of Credit drawings, (iii) the aggregate outstanding principal amount of Swing Loans
and accrued interest, and (iv) all other Obligations that shall have become payable hereunder (the “Advance Record”). Each entry by the Administrative Agent in the Advance Record shall be, to the extent permitted by applicable Law and
absent manifest error, prima facie evidence of the data entered. Such entries by the Administrative Agent shall not be a condition to the Borrower’s obligation to repay the Obligations. 

(b) Charges, Credits and Reports. The Borrower hereby authorizes the Administrative Agent, on behalf of the Lenders, to charge the
Advance Record with all Revolving Loans, Swing Loans and all other Obligations under this Agreement or any other Loan Document. The Advance Record will be credited in accordance with the provisions of this Agreement with all payments received by the
Administrative Agent directly from the Borrower or any other Credit Party or otherwise for the account of the Borrower or any other Credit Party pursuant to this Agreement. The Administrative Agent shall send the Borrower monthly statements in
accordance with the Administrative Agent’s standard procedures. Any and all such periodic or other statements or reconciliations of the Advance Record shall be final, binding and conclusive upon the Borrower and the other Credit Parties in all
respects, absent manifest error, unless the Administrative Agent receives specific written objection thereto from the Borrower within thirty (30) Business Days after such statements or reconciliation shall have been sent to the Borrower. 

  
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 (c) Application of Specific Payments. Except for the crediting to the Advance Record
of Collections deposited to one or more Cash Collateral Accounts as provided below, the Borrower shall make all other payments to be made by the Borrower under this Agreement with respect to the Obligations not later than 1:00 P.M. (Eastern time) on
the day when due, without setoff, counterclaim, defense or deduction of any kind. Payments received after 1:00 P.M. (Eastern time) shall be deemed to have been received on the next Business Day. Prior to the occurrence of an Event of Default, the
Borrower may specify to the Administrative Agent the Obligations to which such payment is to be applied. If the Borrower does not specify an application for such payment or if an Event of Default has occurred, the Administrative Agent shall apply
such payment in its discretion. 
 (d) Crediting of Collections. For the purpose of calculating interest on the Obligations and
determining the aggregate amount of Loans outstanding, the amount of the Revolving Credit Exposure and the availability for additional Revolving Loans and Letters of Credit, all Collections or other funds deposited into any Cash Collateral Account
shall be credited to the account of the Borrower on the next Business Day after the Business Day on which the Administrative Agent has received notice of the deposit of the proceeds of such Collections or other funds into such Cash Collateral
Account (including automated clearinghouse and federal wire transfers); provided that, immediately available funds shall be applied on the same Business Day. Such Collections or other funds shall be credited as follows: (i) first to any costs
and expenses due under this Agreement, (ii) second, to any fees due and payable under this Agreement, (iii) third, to Swing Loans, (iv) fourth to Base Rate Loans, and (v) fifth to Eurodollar Loans. If such Collections made on a
date other than a Settlement Date are in excess of the aggregate amount of Swing Loans outstanding, then such Collections may, in the discretion of the Administrative Agent depending on the amount of such payment, be credited towards the Swing Line
Lender’s pro rata share of Revolving Loans outstanding until such payments can be reallocated among the Revolving Lenders on the next Settlement Date. From time to time, upon advance written notice to the Borrower, the Administrative Agent may
adopt such additional or modified regulations and procedures as the Administrative Agent may deem reasonable and appropriate with respect to the operation of the Cash Collateral Accounts and not substantially inconsistent with the terms of this
Agreement. 
 (e) Application of Deposits in Cash Collateral Accounts. During a Cash Dominion Period, deposits of Collections or other
funds to any Cash Collateral Account shall be credited to the Advance Record of the Borrower on a daily basis in accordance with subsection (d) above, and thereby reduce the Swing Line Exposure or the Revolving Credit Exposure (other than in
respect of the undrawn amount of any Letter of Credit outstanding) as the Administrative Agent may choose, in its sole discretion; provided that, prior to the occurrence of an Event of Default, the Administrative Agent will use reasonable efforts to
avoid applications of payments that would cause prepayment of a Eurodollar Loan prior to the expiration of the applicable Interest Period. Upon payment in full of the Secured Obligations and the termination of the Commitment, deposits of Collections
or other funds to any Cash Collateral Account shall be credited by the Administrative Agent as directed by the Borrower. 

Section 2.16. Protective Advances. The Administrative Agent may, during the existence of an Event of Default, in its Permitted
Discretion, make Protective Advances without the consent of the Lenders, so long as after giving effect to such Protective Advances, the aggregate amount of outstanding Protective Advances shall not exceed five percent (5%) of the Total 

  
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 Commitment Amount. A Protective Advance is for the account of the Borrower and shall constitute Obligations.
Any such Protective Advances incurred after the occurrence and during the continuance of an Event of Default shall be deemed to have been made in connection with the exercise of remedies by the Administrative Agent and shall have the priority set
forth in Section 9.8 hereof as expenses of the Administrative Agent incurred in connection with the exercise of remedies under this Agreement or the other Loan Documents. To the extent the Administrative Agent makes Protective Advances, the
Borrower hereby agrees to promptly reimburse the Administrative Agent, on demand, for all such Protective Advances. The advance of any such Protective Advances on any one occasion shall not obligate the Administrative Agent to advance any Protective
Advances on any other occasion and nothing in this Section 2.16 shall be construed as excusing any Company from the performance of any covenant or other agreement of such Company with respect to any of the foregoing matters as set forth in this
Agreement or in any of the other Loan Documents. The Revolving Lenders shall reimburse the Administrative Agent for any Protective Advances to the extent that the Administrative Agent does not receive reimbursement pursuant to any other provision of
this Agreement, and, at the sole option of the Administrative Agent, the Administrative Agent may reimburse itself for Protective Advances through the making of a Swing Loan or by requesting that the Revolving Lenders fund a Revolving Loan, subject
to no conditions precedent whatsoever (but, for clarification, subject to the first sentence hereof) other than notice to the Revolving Lenders in accordance with Section 2.5(a) hereof. 

ARTICLE III. ADDITIONAL PROVISIONS RELATING TO 

EURODOLLARLIBOR FIXED RATE LOANS AND DAILY LIBOR LOANS; INCREASED 

CAPITAL; TAXES 

Section 3.1. Requirements of Law. 

(a) If any Change in Law shall: 

(i) impose, modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement
against assets of, deposits with or for the account of, or credit extended or participated in by, any Lender (except any reserve requirement reflected in the Eurodollar
Rate or, Daily LIBOR Rate or the Alternate Currency Rate) or the Issuing Lender; 
 (ii) subject any Recipient to any Taxes (other than
(A) Indemnified Taxes, (B) Taxes described in subparts (b) through (d) of the definition of Excluded Taxes and (C) Connection Income Taxes) on any Loan, Letter of Credit, or Commitment or other obligation hereunder, or its
deposits, reserves, other liabilities or capital attributable thereto; or 
 (iii) impose on any Lender or the Issuing Lender
or the London interbank market any other condition, cost or expense (other than Taxes) affecting this Agreement or Loans made by such Lender or any Letter of Credit or participation therein; 

  
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 and the result of any of the foregoing is to increase the cost to such Lender of making, converting into,
continuing or maintaining
EurodollarLIBOR Fixed Rate Loans or issuing or
participating in Letters of Credit, or to reduce any amount receivable hereunder in respect thereof, then, in any such case, the Borrower shall pay to such Lender, within fifteen (15) days after receipt of a written request therefor, any
additional amounts necessary to compensate such Lender for such increased cost or reduced amount receivable (provided such request shall include a reasonably detailed explanation of the basis for such request and the method for calculating such
amount). If any Lender becomes entitled to claim any additional amounts pursuant to this subsection (a), such Lender shall promptly notify the Borrower (with a copy to the Administrative Agent) of the event with reasonable detail by reason of which
it has become so entitled. 
 (b) If any Lender shall have determined that, after the Closing Date, any Change in Law regarding
capital adequacy or liquidity, or liquidity requirements, or in the interpretation or application thereof by a Governmental Authority or compliance by such Lender or any corporation controlling such Lender with any request or directive regarding
capital adequacy or liquidity (whether or not having the force of law) from any Governmental Authority shall have the effect of reducing the rate of return on such Lender’s or such corporation’s capital as a consequence of its obligations
hereunder, or under or in respect of any Letter of Credit, to a level below that which such Lender or such corporation could have achieved but for such Change in Law (taking into consideration the policies of such Lender or such corporation with
respect to capital adequacy and liquidity), then from time to time, upon submission by such Lender to the Borrower (with a copy to the Administrative Agent) of a written request therefor (which shall include the method for calculating such amount
and reasonable detail with respect to such calculation), the Borrower shall pay or cause to be paid to such Lender within fifteen (15) days of such request, such additional amount or amounts as will compensate such Lender or such corporation
for such reduction (provided such request shall include a reasonably detailed explanation of the basis for such request and the method for calculating such amount). 

(c) For purposes of this Section 3.1 and Section 3.4(a) hereof, the Dodd-Frank Act, any requests, rules, guidelines or directives
concerning capital adequacy promulgated by the Bank for International Settlements, or the Basel Committee on Banking Regulations and Supervisory Practices (or any successor or similar authority) under Basel III, and any rules, regulations, orders,
requests, guidelines and directives adopted, issued, promulgated or implemented in connection with any of the foregoing, regardless of the date adopted, issued, promulgated or implemented, are deemed to have been introduced and adopted after the
Closing Date. 
 (d) A certificate as to any additional amounts payable pursuant to this Section 3.1 submitted by any Lender to the
Borrower (with a copy to the Administrative Agent) shall be conclusive absent manifest error provided such certificate includes the reasonably detailed explanation and method of calculation described above. In determining any such additional
amounts, such Lender may use any method of averaging and attribution that it (in its sole discretion) shall deem applicable. The obligations of the Borrower pursuant to this Section 3.1 shall survive the termination of this Agreement and the
payment of the Loans and all other amounts payable hereunder. 

  
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 (e) Notwithstanding anything in this Section 3.1 to the contrary, (i) no Lender
shall receive compensation pursuant to this Section 3.1, unless such Lender is generally seeking compensation from other borrowers with respect to its similarly affected loans under agreements with such borrowers having provisions similar to
this Section 3.1; and (ii) the Borrower shall not be required to compensate a Lender pursuant to this Section for any increased costs or reductions incurred more than two hundred seventy (270) days prior to the date that such Lender
notifies the Borrower of the request for such compensation. 
 Section 3.2. Taxes. 

(a) Payments Free of Taxes; Obligation to Withhold; Payments on Account of Taxes. 

(i) Any and all payments by or on account of any obligation of any Credit Party under any Loan Document shall be made without
deduction or withholding for any Taxes, except as required by applicable Laws. If any applicable Laws (as determined in the good faith discretion of the applicable Withholding Agent) require the deduction or withholding of any Tax from any such
payment by the Administrative Agent or a Credit Party, then the Administrative Agent or such Credit Party shall be entitled to make such deduction or withholding, upon the basis of the information and documentation received pursuant to subsection
(e) below. 
 (ii) If any Credit Party or the Administrative Agent shall be required by the Code to withhold or deduct
any Taxes, including both United States federal backup withholding and withholding taxes, from any payment, then (A) the applicable Withholding Agent shall withhold or make such deductions as are determined by the Withholding Agent to be
required based upon the information and documentation it has received pursuant to subsection (e) below, (B) the Withholding Agent shall timely pay the full amount withheld or deducted to the relevant Governmental Authority in accordance
with the Code (as such amount may be determined on the advice of counsel or other professionals that may advise the Withholding Agent, in its discretion), and (C) to the extent that the withholding or deduction is made on account of Indemnified
Taxes, the sum payable by the applicable Credit Party shall be increased as necessary so that, after any required withholding or the making of all required deductions (including deductions applicable to additional sums payable under this
Section 3.2), the applicable Recipient receives an amount equal to the sum it would have received had no such withholding or deduction been made. 

(iii) If any Credit Party or the Administrative Agent shall be required by any applicable Laws other than the Code to withhold
or deduct any Taxes from any payment, then (A) such Credit Party or the Administrative Agent, as required by such Laws, shall withhold or make such deductions as are determined by it to be required based upon the information and documentation
it has received pursuant to subsection (e) below, (B) such Credit Party or the Administrative Agent, to the extent required by such Laws, shall timely pay the full amount withheld or deducted to the relevant Governmental Authority in
accordance with such Laws, and (C) to the extent that the withholding or deduction is 

  
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made on account of Indemnified Taxes, the sum payable by the applicable Credit Party shall be increased as necessary so that, after any required withholding or the making of all required
deductions (including deductions applicable to additional sums payable under this Section 3.2), the applicable Recipient receives an amount equal to the sum it would have received had no such withholding or deduction been made. 

(b) Payment of Other Taxes by the Credit Parties. Without limiting the provisions of subsection (a) above, the Credit Parties shall
timely pay to the relevant Governmental Authority in accordance with applicable Law, or, at the option of the Administrative Agent, timely reimburse it for the payment of, any Other Taxes. 

(c) Tax Indemnifications. 

(i) Each of the Credit Parties shall, and does hereby, jointly and severally indemnify each Recipient, and shall make payment
in respect thereof within ten (10) days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section 3.2) payable or paid by
such Recipient, or required to be withheld or deducted from a payment to such Recipient, and any penalties, interest and reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally
imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to the Borrower by a Lender or the Issuing Lender (with a copy to the Administrative Agent), or by the Administrative
Agent on its own behalf or on behalf of a Lender or the Issuing Lender, shall be conclusive absent manifest error. 
 (ii)
Each Lender and the Issuing Lender shall, and does hereby, severally indemnify, and shall make payment in respect thereof within ten (10) days after demand therefor, (A) the Administrative Agent against any Indemnified Taxes attributable
to such Lender or the Issuing Lender (but only to the extent that any Credit Party has not already indemnified the Administrative Agent for such Indemnified Taxes and, without limiting the obligation of the Credit Parties to do so), (B) the
Administrative Agent and the Credit Parties, as applicable, against any Taxes attributable to such Lender’s failure to comply with the provisions of Section 10.10(d) hereof relating to the maintenance of a Participant Register, and
(C) the Administrative Agent and the Credit Parties, as applicable, against any Excluded Taxes attributable to such Lender or the Issuing Lender, in each case, that are payable or paid by the Administrative Agent or a Credit Party in connection
with any Loan Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such
payment or liability delivered to any Lender by the Administrative Agent or Credit Party shall be conclusive absent manifest error. Each Lender and the Issuing Lender hereby authorize the Administrative Agent to set off and apply any and all amounts
at any time owing to such Lender or the Issuing lender, as the case may be, under this Agreement or any other Loan Document against any amount due to the Administrative Agent under this subpart (ii). 

  
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 (d) Evidence of Payments. As soon as practicable after any payment of Taxes by any
Credit Party to a Governmental Authority, as provided in this Section 3.2, the Borrower shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a
copy of any return reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent. 
 (e)
Status of Lenders; Tax Documentation. 
 (i) Any Lender that is entitled to an exemption from or reduction of
withholding Tax with respect to payments made under any Loan Document shall deliver to the Borrower and the Administrative Agent, at the time or times reasonably requested by the Borrower or the Administrative Agent, such properly completed and
executed documentation reasonably requested by the Borrower or the Administrative Agent as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, any Lender, if reasonably requested by the Borrower
or the Administrative Agent, shall deliver such other documentation prescribed by applicable Law or reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent to determine whether or not
such Lender is subject to backup withholding or information reporting requirements. Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other than such
documentation set forth in Section 3.2(e)(ii)(A), (ii)(B) and (ii)(D) below) shall not be required if, in the Lender’s reasonable judgment, such completion, execution or submission would subject such Lender to any material unreimbursed
cost or expense, or would materially prejudice the legal or commercial position of such Lender. 
 (ii) Without limiting the
generality of the foregoing, 
 (A) any Lender that is a U.S. Person shall deliver to the Borrower and the Administrative
Agent on or prior to the date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable written request of the Borrower or the Administrative Agent), executed copies of IRS Form W-9 certifying
that such Lender is exempt from U.S. federal backup withholding tax; 
 (B) any Foreign Lender shall, to the extent it is
legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from
time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), whichever of the following is applicable: 

  
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 (1) in the case of a Foreign Lender claiming the benefits of an income tax
treaty to which the United States is a party (y) with respect to payments of interest under any Loan Document, executed copies of IRS Form W-8BEN-E (or W-8BEN, as applicable) establishing an exemption from, or reduction of, U.S. federal
withholding Tax pursuant to the “interest” article of such tax treaty, and (z) with respect to any other applicable payments under any Loan Document, IRS Form W-8BEN-E (or W-8BEN, as applicable) establishing an exemption from, or
reduction of, U.S. federal withholding Tax pursuant to the “business profits” or “other income” article of such tax treaty; 

(2) executed originals of IRS Form W-8ECI; 

(3) in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of
the Code, (y) a certificate substantially in the form of Exhibit F-1 to the effect that such Foreign Lender is not a “bank” within the meaning of Section 881(c)(3)(A) of the Code, a “10 percent shareholder” of
the Borrower within the meaning of Section 881(c)(3)(B) of the Code, or a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code (a “U.S. Tax Compliance Certificate”), and (z) executed
copies of IRS Form W-8BEN-E (or W-8BEN, as applicable); or 
 (4) to the extent a Foreign Lender is not the beneficial
owner, executed copies of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN-E (or W-8BEN, as applicable), a U.S. Tax Compliance Certificate substantially in the form of Exhibit F-2 or Exhibit F-3, IRS Form W-9, and other
certification documents from each beneficial owner, as applicable; provided that if, the Foreign Lender is a partnership and one or more direct or indirect partners of such Foreign Lender are claiming the portfolio interest exemption, such Foreign
Lender may provide a U.S. Tax Compliance Certificate, substantially in the form of Exhibit F-4 hereto on behalf of each such direct and indirect partner; 

(C) any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative
Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the
Administrative Agent), executed copies (or originals, as required) of any other form prescribed by applicable Law as a basis for claiming exemption from or a reduction in U.S. federal withholding Tax, duly completed, together with such supplementary
documentation as may be prescribed by applicable Law to permit the Borrower or the Administrative Agent to determine the withholding or deduction required to be made; and 

  
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 (D) if a payment made to a Lender under any Loan Document would be subject
to U.S. federal withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall
deliver to the Borrower and the Administrative Agent at the time or times prescribed by Law and at such time or times reasonably requested by the Borrower or the Administrative Agent such documentation prescribed by applicable Law (including as
prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Borrower or the Administrative Agent as may be necessary for the Borrower and the Administrative Agent to comply with their
obligations under FATCA and to determine that such Lender has complied with such Lender’s obligations under FATCA or to determine the amount to deduct and withhold from such payment. Solely for purposes of this subpart (D), “FATCA”
shall include any amendments made to FATCA after the Closing Date. 
 (iii) Each Lender agrees that if, any form or
certification it previously delivered pursuant to this Section 3.2 expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrower and the Administrative Agent in writing of
its legal inability to do so. 
 (f) Treatment of Certain Refunds. Unless required by applicable Laws, at no time shall the
Administrative Agent have any obligation to file for or otherwise pursue on behalf of a Lender or the Issuing Lender, or have any obligation to pay to any Lender or the Issuing Lender, any refund of Taxes withheld or deducted from funds paid for the
account of such Lender or the Issuing Lender, as the case may be. If any Recipient determines, in its sole but reasonable discretion, that it has received a refund of any Taxes as to which it has been indemnified by any Credit Party or with respect
to which any Credit Party has paid additional amounts pursuant to this Section 3.2, it shall pay to such Credit Party an amount equal to such refund (but only to the extent of indemnity payments made, or additional amounts paid, by such Credit
Party under this Section 3.2 with respect to the Taxes giving rise to such refund); net of all out-of-pocket expenses (including Taxes) incurred by such Recipient, as the case may be, and without interest (other than any interest paid by the
relevant Governmental Authority with respect to such refund), provided that each Credit Party, upon the request of the Recipient, agrees to repay the amount paid over to such Credit Party (plus any penalties, interest or other charges imposed by the
relevant Governmental Authority) to the Recipient in the event the Recipient is required to repay such refund to such Governmental Authority. Notwithstanding anything to the contrary in this subsection, in no event will the applicable Recipient be
required to pay any amount to such Credit Party pursuant to this subsection the payment of which would place the Recipient in a less favorable net after-Tax position than such Recipient would have been in if the Tax subject to indemnification and
giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never been paid. This subsection shall not be construed to require any Recipient to
make available its tax returns (or any other information relating to its taxes that it deems confidential) to any Credit Party or any other Person. 

(g) Survival. Each party’s obligations under this Section 3.2 shall survive the resignation or replacement of the
Administrative Agent or any assignment of rights by, or the replacement of, a Lender or the Issuing Lender, the termination of the Commitment and the repayment, satisfaction or discharge of all other Obligations. 

  
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 (h) Status of Administrative Agent. If not delivered pursuant to
Section 3.2(e)(ii) above, on or before the date that KeyBank (and any successor or replacement Administrative Agent) becomes the Administrative Agent hereunder, it shall deliver to the Borrower a duly executed copy of IRS Form W-9 (or any
successor form) (or, if such Administrative Agent is not a U.S. Person, a U.S. branch withholding certificate on IRS Form W-8IMY (or any successor form) evidencing its agreement with the Borrower to be treated as a U.S. Person (with respect to
amounts received on account of any Lender) and IRS Form W-8ECI (or any successor form) (with respect to amounts received on its own account)). 

Section 3.3. Funding Losses. The Borrower agrees to indemnify each Lender, promptly after receipt of a written request therefor,
and to hold each Lender harmless from, any loss or expense that such Lender may sustain or incur as a consequence of (a) default by the Borrower in making a borrowing of, conversion into or continuation of EurodollarLIBOR Fixed
Rate Loans after the Borrower has given a notice (including a written or verbal notice that is subsequently revoked) requesting the same in accordance with the provisions of this Agreement,
(b) default by the Borrower in making any prepayment of or conversion from EurodollarLIBOR Fixed Rate Loans after the Borrower has given a notice (including
a written or verbal notice that is subsequently revoked) thereof in accordance with the provisions of this Agreement, (c) the making of a prepayment of a
EurodollarLIBOR Fixed Rate Loan on a day that is
not the last day of an Interest Period applicable thereto, (d) the making of a prepayment of a Swing Loan on a day that is not the Swing Loan Maturity Date applicable thereto, (e) any conversion of a EurodollarLIBOR Fixed
Rate Loan to a Base Rate Loan or a Daily LIBOR Loan on a day that is not the last day of an Interest Period applicable thereto, or (f) any compulsory assignment of such Lender’s
interests, rights and obligations under this Agreement pursuant to Section 11.3(c) or 11.11(d) hereof. Such indemnification shall be in an amount equal to the excess, if any, of (i) the amount of interest that would have accrued on the
amounts so prepaid, or not so borrowed, converted or continued, for the period from the date of such prepayment or of such failure to borrow, convert or continue to the last day of such Interest Period (or, in the case of a failure to borrow,
convert or continue, the Interest Period that would have commenced on the date of such failure) or the applicable Swing Loan Maturity Date in each case at the applicable rate of interest for such Loans provided for herein over (ii) the amount
of interest (as reasonably determined by such Lender) that would have accrued to such Lender on such amount by placing such amount on deposit for a comparable period with leading banks in the appropriate London interbank market, along with any
administration fee charged by such Lender. A certificate as to any amounts payable pursuant to this Section 3.3 submitted to the Borrower (with a copy to the Administrative Agent) by any Lender, together with a reasonably detailed calculation
and description of such amounts, shall be conclusive absent manifest error provided that such certificate includes a computation of such amount in reasonable detail. The obligations of the Borrower pursuant to this Section 3.3 shall survive the
termination of this Agreement and the payment of the Loans and all other amounts payable hereunder. 

  
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 Section 3.4. Eurodollar Rate or, Daily LIBOR Rate or Alternate Currency Rate Lending Unlawful; Inability to Determine Rate. 
 (a) If any Lender shall determine
(which determination shall, upon notice thereof to the Borrower and the Administrative Agent, be conclusive and binding on the Borrower) that, after the Closing Date, (i) the introduction of or any change in or in the interpretation of any Law
makes it unlawful, or (ii) any Governmental Authority asserts that it is unlawful, for such Lender to make or continue any Loan as, or to convert (if permitted pursuant to this Agreement) any Loan into, a EurodollarLIBOR Fixed
Rate Loan or a Daily LIBOR Loan, the obligations of such Lender to make, continue or convert into any such
EurodollarLIBOR Fixed Rate Loan or Daily LIBOR
Loan shall, upon such determination, be suspended until such Lender shall notify the Administrative Agent that the circumstances causing such suspension no longer exist, and all outstanding EurodollarLIBOR Fixed
Rate Loans and Daily LIBOR Loans payable to such Lender shall automatically convert (if conversion is permitted under this Agreement) into a Base Rate Loan, or be repaid (if no conversion is
permitted) at the end of the then current Interest Periods with respect thereto or sooner, if required by Law or such assertion. 

(b) If the Administrative Agent or the Required Lenders determine that for any reason adequate and reasonable means do not exist for
determining the Eurodollar Rate or
the, Daily LIBOR Rate or Alternate Currency Rate with respect to a proposed Daily LIBOR Loan,
for any requested Interest Period with respect to a proposed
EurodollarLIBOR Fixed Rate Loan, or that the
Eurodollar Rate
or, Daily LIBOR Rate, or Alternate Currency Rate for any requested Interest Period with
respect to a proposed
EurodollarLIBOR Fixed Rate Loan or the Daily LIBOR
Rate with respect to a proposed Daily LIBOR Loan does not adequately and fairly reflect the cost to the Lenders of funding such Loan, the Administrative Agent will promptly so notify the Borrower and each Lender. Thereafter, the obligation of the
Lenders to make or maintain such
EurodollarLIBOR Fixed
 Rate Loan or Daily LIBOR Loan shall be suspended until the Administrative Agent (upon the instruction of the Required Lenders) revokes such notice. Upon receipt of such notice, the Borrower may
revoke any pending request for a borrowing of, conversion to or continuation of such EurodollarLIBOR Fixed Rate Loan or Daily LIBOR Loan or, failing that, will be
deemed to have converted such request into a request for a borrowing of a Base Rate Loan in the amount specified therein. 

Section 3.5. Discretion of Lenders as to Manner of Funding. Notwithstanding any provision of this Agreement to the contrary, each
Lender shall be entitled to fund and maintain its funding of all or any part of such Lender’s Loans in any manner such Lender deems to be appropriate; it being understood, however, that for the purposes of this Agreement all determinations
hereunder shall be made as if such Lender had actually funded and maintained each Eurodollar Loan or Alternate Currency
Loan during the applicable Interest Period for such Loan through the purchase of deposits having a maturity corresponding to such Interest Period and bearing an interest rate equal to the
Eurodollar Rate or Alternate Currency Rate for such
Interest Period. 

  
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Section 
3.6. Effect of Benchmark Transition Event. 
 (a) Benchmark Replacement. Notwithstanding anything to the contrary herein or in any other Loan Document, (i) upon the
determination of the Administrative Agent (which shall be conclusive absent manifest error) that a Benchmark Transition Event has occurred or (ii) upon the occurrence of an Early Opt-in Election, as applicable, the Administrative Agent and the
Borrower may amend this Agreement to replace the Eurodollar Rate with a Benchmark Replacement, by a written document executed by the Borrower and the Administrative Agent, subject to the requirements of this Section 3.6. Notwithstanding the
requirements of Section 11.3 or anything else to the contrary herein or in any other Loan Document, any such amendment with respect to a Benchmark Transition Event will become effective and binding upon the Administrative Agent, the Borrower
and the Lenders at 5:00 p.m. on the fifth (5th) Business Day after the Administrative Agent has posted such proposed amendment to all Lenders and the Borrower so long as the Administrative Agent has not received, by such time, written notice of
objection to such amendment from Lenders comprising the Required Lenders, and any such amendment with respect to an Early Opt-in Election will become effective and binding upon the Administrative Agent, the Borrower and the Lenders on the date that
Lenders comprising the Required Lenders have delivered to the Administrative Agent written notice that such Required Lenders accept such amendment. No replacement of the Eurodollar Rate with a Benchmark Replacement pursuant to this Section 3.6
will occur prior to the applicable Benchmark Transition Start Date. 
 (b) Benchmark Replacement Conforming Changes. In connection with the implementation of a Benchmark Replacement, the
Administrative Agent will have the right to make Benchmark Replacement Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such Benchmark Replacement
Conforming Changes will become effective without any further action or consent of any other party to this Agreement. 

(c) Notices;
Standards for Decisions and Determinations. The Administrative Agent will promptly notify the Borrower and the Lenders in writing of (i) any occurrence of a Benchmark Transition Event or an Early Opt-in Election, as applicable, and its related
Benchmark Replacement Date and Benchmark Transition Start Date, (ii) the implementation of any Benchmark Replacement, (iii) the effectiveness of any Benchmark Replacement Conforming Changes and (iv) the commencement or conclusion of
any Benchmark Unavailability Period. Any determination, decision or election that may be made by the Administrative Agent or Lenders pursuant to this Section 3.6, including, without limitation, any determination with respect to a tenor,
comparable replacement rate or adjustment, or implementation of any Benchmark Replacement Rate Conforming Changes, or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action,
will be conclusive and binding on all parties hereto absent manifest error and may be made in its or their sole discretion and without consent from any other party hereto, except, in each case, as expressly required pursuant to this Section 3.6
and shall not be a basis of any claim of liability of any kind or nature by any party hereto, all such claims being hereby waived individually be each party hereto. 

  
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(d) Benchmark
Unavailability Period. Upon the Borrower’s receipt of notice of the commencement of a Benchmark Unavailability Period, the Borrower may revoke any request for a Eurodollar Loan borrowing, a conversion to or a continuation of Eurodollar Loans to be made, converted or continued during
any Benchmark Unavailability Period and, failing that, the Borrower will be deemed to have converted any such request into a request for a Borrowing of or conversion to Alternate Currency Loans. During any Benchmark Unavailability Period, the
components of Alternate Currency Loans based upon the Eurodollar Rate will not be used in any determination of Alternate Currency Rate. 

(e) LIBOR
Notification. The interest rate on Eurodollar Loans and Daily LIBOR Loans is determined by reference to the Eurodollar Rate, which is derived from the London interbank offered rate. The London interbank offered rate is intended to represent the rate
at which contributing banks may obtain short-term borrowings from each other in the London interbank market. In July 2017, the U.K. Financial Conduct Authority announced that, after the end of 2021, it would no longer persuade or compel contributing
banks to make rate submissions to the ICE Benchmark Administration (together with any successor to the ICE Benchmark Administrator, the “IBA”) for purposes of the IBA setting the London interbank offered rate. As a result, it is possible
that commencing in 2022, the London interbank offered rate may no longer be available or may no longer be deemed an appropriate reference rate upon which to determine the interest rate on Eurodollar Loans and Daily LIBOR Loans. In light of this
eventuality, public and private sector industry initiatives are currently underway to identify new or alternative reference rates to be used in place of the London interbank offered rate. In the event that the London interbank offered rate is no
longer available or in certain other circumstances as set forth in this Section 3.6, such Section provides a mechanism for determining an alternative rate of interest. The Administrative Agent will notify the Borrower, pursuant to this
Section 3.6 in advance of any change to the reference rate upon which the interest rate on Eurodollar Loans and Daily LIBOR Loans is based. However, the Administrative Agent does not warrant or accept any responsibility for, and shall not have
any liability with respect to, the administration, submission or any other matter related to the London interbank offered rate or other rates in the definition of “Eurodollar Rate” or with respect to any alternative or successor rate
thereto, or replacement rate therefor or thereof, including, without limitation, whether the composition or characteristics of any such alternative, successor or replacement reference rate, as it may or may not be adjusted pursuant to this
Section 3.6, will be similar to, or produce the same value or economic equivalence of, the Eurodollar Rate or have the same volume or liquidity as did the London interbank offered rate prior to its discontinuance or unavailability. If a
Benchmark Replacement occurs pursuant to this Section 3.6, the Daily LIBOR Rate shall be modified to incorporate revisions consistent with those being made to the Eurodollar Rate, at the reasonable discretion of the Administrative
Agent. 
 ARTICLE IV. CONDITIONS PRECEDENT 

Section 4.1. Conditions to Each Credit Event. The obligation of the Lenders, the Issuing Lender and the Swing Line Lender to
participate in any Credit Event shall be conditioned, in the case of each Credit Event, upon the following: 
 (a) all conditions precedent
as listed in Section 4.2 hereof required to be satisfied prior to the first Credit Event shall have been satisfied prior to or as of the first Credit Event; 

  
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 (b) the Borrower shall have submitted a Notice of Loan (or with respect to a Letter of
Credit, complied with the provisions of Section 2.2(b)(ii) hereof) and otherwise complied with Section 2.5 hereof; 
 (c) no
Default or Event of Default shall then exist or immediately after such Credit Event would exist (provided that the conversion into, or continuation of, a Daily LIBOR Loan or a Eurodollar Loan shall not constitute a Credit Event solely for purposes
of this Section 4.1(c)); and 

(d) each of the representations and warranties contained in Article VI hereof shall be true in all material respects as if made on and as of
the date of such Credit Event, except to the extent that any thereof expressly relate to an earlier date (provided that the conversion into, or continuation of, a Daily LIBOR Loan or a Eurodollar Loan or the amendment, renewal, reinstatement or
extension of a Letter of Credit, shall not constitute a Credit Event solely for purposes of this Section 4.1 (d))..; and 

(e) with
respect to each request by the Borrower for an Alternate Currency Loan or for a Letter of Credit to be issued in an Alternate Currency, there shall not have occurred any change in any national or international financial, political or economic
conditions or currency exchange rates or exchange controls that, in the reasonable opinion of the Administrative Agent and the Required Lenders (and the Issuing Lender, with respect to any Letter of Credit to be issued in an Alternate Currency)
would make it impracticable for such Loan or Letter of Credit to be denominated in the relevant Alternate Currency. 

Each request by the Borrower for a Credit Event shall be deemed to be a representation and warranty by the Borrower as of the date of such request as to the
satisfaction of the conditions precedent specified in subsections (c) and (d) above. Notwithstanding the failure to satisfy the conditions precedent set forth in this Section, unless otherwise directed by the Required Lenders, the
Administrative Agent may, but shall have no obligation to, continue to make Loans, and the Issuing Lender may, but shall have no obligation to, issue, amend, renew or extend, or cause to be issued, amended, renewed or extended, any Letter of Credit
for the ratable account and risk of the Lenders from time to time, if the Administrative Agent believes that making such Loans or issuing, amending, renewing or extending, or causing the issuance, amendment, renewal or extension of, any such Letter
of Credit is in the best interests of the Lenders. 
 Section 4.2. Conditions to the First Credit Event. The Borrower shall
cause the following conditions to be satisfied on or prior to the Closing Date. The obligation of the Lenders, the Issuing Lender and the Swing Line Lender to participate in the first Credit Event is subject to the Borrower satisfying each of the
following conditions prior to or concurrently with such Credit Event: 
 (a) Notes as Requested. The Borrower shall have executed and
delivered to (i) each Revolving Lender requesting a Revolving Credit Note such Revolving Lender’s Revolving Credit Note, and (ii) the Swing Line Lender the Swing Line Note, if requested by the Swing Line Lender. 

  
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 (b) Subsidiary Documents. Each Guarantor of Payment shall have executed and delivered
to the Administrative Agent (i) a Guaranty of Payment, in form and substance satisfactory to the Administrative Agent, and (ii) a Security Agreement and such other documents or instruments, as may be required by the Administrative Agent to
create or perfect the Liens of the Administrative Agent in the assets of such Guarantor of Payment, all to be in form and substance satisfactory to the Administrative Agent. 

(c) Pledge Agreements. The Borrower and each Guarantor of Payment that has a Subsidiary shall have (i) executed and delivered to
the Administrative Agent, for the benefit of the Lenders, a Pledge Agreement, in form and substance satisfactory to the Administrative Agent, with respect to the Pledged Securities, (ii) executed and delivered to the Administrative Agent, for
the benefit of the Lenders, appropriate transfer powers for each of the Pledged Securities that are certificated, and (iii) delivered to the Administrative Agent, for the benefit of the Lenders, the Pledged Securities (to the extent such
Pledged Securities are certificated). 
 (d) Intellectual Property Security Agreements. Each Credit Party that owns federally
registered intellectual property shall have executed and delivered to the Administrative Agent, for the benefit of the Lenders, an Intellectual Property Security Agreement, in form and substance satisfactory to the Administrative Agent. 

(e) Control Agreements. The Borrower shall have delivered to the Administrative Agent an executed Control Agreement, in form and
substance satisfactory to the Administrative Agent, for each Deposit Account (other than Excluded Deposit Accounts) and each Securities Account maintained by a Credit Party not held with the Administrative Agent. 

(f) Lien Searches. With respect to the property owned or leased by any Credit Party, and any other property securing the Obligations,
the Borrower shall have caused to be delivered to the Administrative Agent (i) the results of Uniform Commercial Code lien searches, satisfactory to the Administrative Agent and the Lenders, (ii) the results of federal and state tax lien
and judicial lien searches and pending litigation and bankruptcy searches, in each case satisfactory to the Administrative Agent and the Lenders, and (iii) Uniform Commercial Code termination statements reflecting termination of all U.C.C.
Financing Statements previously filed by any Person and not expressly permitted pursuant to Section 5.9 hereof. 
 (g) Officer’s
Certificate, Resolutions, Organizational Documents. The Borrower shall have delivered to the Administrative Agent an officer’s certificate (or comparable domestic or foreign documents) certifying the names of the officers of each Credit
Party authorized to sign the Loan Documents, together with the true signatures of such officers and certified copies of (i) the resolutions of the board of directors (or comparable domestic or foreign documents) of such Credit Party evidencing
approval of the execution, delivery and performance of the Loan Documents and the execution, delivery and performance of other Related Writings to which such Credit Party is a party, and the consummation of the transactions contemplated thereby, and
(ii) the Organizational Documents of such Credit Party. 

  
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 (h) Good Standing and Full Force and Effect Certificates. The Borrower shall have
delivered to the Administrative Agent a good standing certificate or full force and effect certificate (or comparable document, if neither certificate is available in the applicable jurisdiction), as the case may be, for each Credit Party, issued on
or about the Closing Date by the Secretary of State in the state or states where such Credit Party is incorporated or formed or qualified as a foreign entity. 

(i) Legal Opinion. The Borrower shall have delivered to the Administrative Agent an opinion of counsel (which may be the general counsel
for the Borrower) for the Borrower and each other Credit Party, in form and substance satisfactory to the Administrative Agent and the Lenders. 

(j) Insurance Certificates. The Borrower shall have delivered to the Administrative Agent certificates of insurance on ACORD 25 and 27
or 28 form and proof of endorsements satisfactory to the Administrative Agent and the Lenders, providing for adequate personal property and liability insurance for each Company, with the Administrative Agent, on behalf of the Lenders, listed as
lender’s loss payee and additional insured, as appropriate. 
 (k) Cash Management Systems. The Borrower shall have established
(i) the cash management system, specified in Section 7.2 hereof, and executed the Master Agreement, in form and substance satisfactory to the Administrative Agent, and (ii) a Cash Collateral Account, Operating Account, Controlled
Disbursement Account and Lockbox arrangement, in each case satisfactory to the Administrative Agent. 
 (l) Customer List. The
Borrower shall have delivered to the Administrative Agent a complete list of all Account Debtors of each Borrowing Base Company, including but not limited to the name, address and contact information of each such Account Debtor, in form and detail
satisfactory to the Administrative Agent. 
 (m) Collateral Field Audit. The Administrative Agent shall have received the results of
(i) a collateral field audit to be in form and substance satisfactory to the Administrative Agent, and (ii) if required by the Administrative Agent in its sole discretion, a update to such collateral field audit in form and substance
satisfactory to the Administrative Agent. 
 (n) Revolving Credit Availability. On the Closing Date, the Revolving Credit Availability
shall be no less than Four Million Five Hundred Thousand Dollars ($4,500,000); provided that, for purposes of calculating the Revolving Credit Availability under this Section 4.2(r), Revolving Credit Exposure shall include, without duplication,
(i) any fees and expenses due under Section 4.2(w) hereof, (ii) any accounts payable of the Borrowing Base Companies with balances over sixty (60) days past due, and (iii) the Borrower’s initial credit request under the
Revolving Credit Commitment. 
 (o) Advertising Release Form. The Borrower shall have delivered to the Administrative Agent an
advertising release form, authorizing the Administrative Agent to publicize the transaction and specifically to use the name of the Borrower in connection with “tombstone” advertisements in one or more publications selected by the
Administrative Agent. 

  
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 (p) Borrowing Base Certificate. The
BorrowersBorrower shall have delivered to the
Administrative Agent (through the Approved Electronic Communication System) a Borrowing Base Certificate as of the Closing Date. 

(q) Administrative Agent Fee Letter, Closing Fee Letter and Other Fees. The Borrower shall have (i) executed and delivered to the
Administrative Agent, the Administrative Agent Fee Letter and paid to the Administrative Agent, for its sole account, the fees stated therein, (ii) executed and delivered to the Administrative Agent, the Closing Fee Letter and paid to the
Administrative Agent, for the benefit of the Lenders, the fees stated therein, and (iii) paid all legal fees and expenses of the Administrative Agent in connection with the preparation and negotiation of the Loan Documents; provided that the
Borrower receives a reasonably detailed invoice with respect to such fees and expenses prior to the Closing Date. 
 (r) Existing Credit
Agreement. The Borrower shall have terminated the Credit Agreement between the Borrower and KeyBank as agent, dated as of October 30, 2015, as amended, which termination shall be deemed to have occurred upon payment in full of all of the
Indebtedness outstanding thereunder and termination of the commitments established therein. 
 (s) Closing Certificate. The Borrower
shall have delivered to the Administrative Agent and the Lenders an officer’s certificate certifying that, as of the Closing Date, (i) all conditions precedent set forth in this Article IV have been satisfied, (ii) no Default or Event
of Default exists or immediately after the first Credit Event will exist, (iii) the Revolving Credit Availability, as calculated pursuant to Section 4.2(n) hereof, is no less than Four Million Five Hundred Thousand Dollars ($4,500,000),
and (iv) each of the representations and warranties contained in Article VI hereof are true and correct as of the Closing Date in all material respects (provided that such materiality qualifier shall not be applicable to any representations and
warranties that already are qualified or modified by materiality or Material Adverse Effect in the text thereof). 
 (t) Letter of
Direction. The Borrower shall have delivered to the Administrative Agent a letter of direction authorizing the Administrative Agent, on behalf of the Lenders, to disburse the proceeds of the Loans, which letter of direction includes the
authorization to transfer funds under this Agreement and the wire instructions that set forth the locations to which such funds shall be sent. 

(u) No Material Adverse Change. No material adverse change, in the opinion of the Administrative Agent, shall have occurred in the
financial condition, operations or prospects of the Companies since December 31, 2016. 
 (v)
KYC Information. Upon the reasonable request of any Lender at least three (3) days prior to the Closing
Date, the Borrower shall have provided to such Lender (i) the documentation and other information so requested in connection with applicable “know your customer” and anti-money-laundering rules and regulations, including the PATRIOT
Act, and (ii) if any Credit Party qualifies as a “legal entity customer” under the Beneficial Ownership Regulation, a Beneficial Ownership Certification, in form and substance satisfactory to the Administrative Agent. 

  
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(vw) Miscellaneous. The Borrower shall have provided to the
Administrative Agent and the Lenders such other items and shall have satisfied such other conditions as may be reasonably required by the Administrative Agent or the Lenders. 

ARTICLE V. COVENANTS 

Section 5.1. Insurance. Each Company shall at all times maintain insurance upon its Inventory, Equipment and other personal
property in such form, written by such companies, in such amounts, for such periods, and against such risks as may be reasonably acceptable to the Administrative Agent or as is generally consistent with insurance coverage maintained by the Companies
on the Closing Date, with provisions reasonably satisfactory to the Administrative Agent for, with respect to Credit Parties, payment of all losses thereunder to the Administrative Agent, for the benefit of the Lenders, and such Company as their
interests may appear (with lender’s loss payable and additional insured endorsements, as appropriate, in favor of the Administrative Agent, for the benefit of the Lenders). If required by the Administrative Agent, the Borrower shall provide
copies of such policies to the Administrative Agent. Any such policies of insurance shall provide for no fewer than thirty (30) days’ (or ten days’ in the case of non-payment) prior written notice of cancellation to the Administrative
Agent and the Lenders. Sums received by the Administrative Agent, for the benefit of the Lenders, in payment of insurance losses, returns, or unearned premiums under the policies shall be deposited into the Cash Collateral Account. The
Administrative Agent is hereby authorized to act as attorney-in-fact for the Companies in obtaining, adjusting, settling and canceling such insurance and indorsing any drafts. In the event of failure to provide such insurance as herein provided, the
Administrative Agent may, at its option, provide such insurance and the Borrower shall pay to the Administrative Agent, upon demand, the cost thereof. Should the Borrower fail to pay such sum to the Administrative Agent upon demand, interest shall
accrue thereon, from the date of demand until paid in full, at the Default Rate. Within ten days of the Administrative Agent’s written request, the Borrower shall furnish to the Administrative Agent such information about the insurance of the
Companies as the Administrative Agent may from time to time reasonably request, which information shall be prepared in form and detail satisfactory to the Administrative Agent. 

Section 5.2. Money Obligations. Each Company shall pay in full (except to the extent the failure to so pay could not reasonably be
expected to result in a Material Adverse Effect or a material federal tax Lien) (a) prior in each case to the date when penalties would attach, all taxes, assessments and governmental charges and levies (except only those so long as and to the
extent that the same shall be contested in good faith by appropriate and timely proceedings and for which adequate provisions have been established in accordance with GAAP) for which it may be or become liable or to which any or all of its
properties may be or become subject; (b) all of its wage obligations to its employees in compliance with the Fair Labor Standards Act (29 U.S.C. §§ 206 207) or any comparable provisions, and, in the case of the Foreign Subsidiaries,
those obligations under foreign laws with respect to employee source deductions, obligations and 

  
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employer obligations to its employees; and (c) all of its other obligations calling for the payment of money (except only those so long as and to the extent that the same shall be contested
in good faith and for which adequate provisions have been established in accordance with GAAP) before such payment becomes overdue. 

Section 5.3. Financial Statements, Collateral Reporting and Information. 

(a) Borrowing Base. The Borrower shall deliver to the Administrative Agent and the Lenders, as frequently as the Administrative Agent
may request, but no less frequently than by 5:00 P.M. (Eastern time) twenty-five (25) days after the end of each calendar month (or the next Business Day if such day is not a Business Day), a Borrowing Base Certificate (for the period ending on
the last day of the prior calendar month) prepared and certified by a Financial Officer; provided that, anything herein to the contrary notwithstanding, if the Average Revolving Credit Availability is less than or equal to TenSix Million Seven Hundred Fifty Thousand Dollars
($10,000,0006,750,000
) as of the end of any calendar month, the Borrower shall, for such period of time as may be determined by the Administrative Agent, in its Permitted Discretion, be required to deliver a Borrowing
Base Certificate to the Administrative Agent by 5:00 P.M. (Eastern time) on each Wednesday of each calendar week (or the next Business Day if such Wednesday is not a Business Day) for the weekly period ending on the Friday of the week prior to the
date such Borrowing Base Certificate is submitted. Each such Borrowing Base Certificate shall be updated for all activity (sales, billings, collections, credits and similar information) impacting the accounts receivable of the Borrowing Base
Companies from the date of the immediately preceding Borrowing Base Certificate to the date of such Borrowing Base Certificate. The determination as to which accounts receivable constitute Eligible Accounts Receivable to be included on each
Borrowing Base Certificate shall, absent a request from the Administrative Agent that such amounts be calculated more frequently, be the amount that is calculated and updated monthly pursuant to subsection (f) below. 

(b) Quarterly Financials. The Borrower shall deliver to the Administrative Agent and the Lenders, within forty-five (45) days after
the end of each Quarterly Reporting Period of each fiscal year (or, if earlier, within five days after the date on which the Borrower shall be required to submit its Form 10-Q), balance sheets of the Companies as of the end of such period and
statements of income (loss), stockholders’ equity and cash flow for the Quarterly Reporting Period and fiscal year-to-date periods and comparisons to the prior year (Quarterly Reporting Period and year-to-date), all prepared on a Consolidated
basis, in form and detail satisfactory to the Administrative Agent and the Lenders and certified by a Financial Officer. 
 (c) Monthly
Financials. The Borrower shall deliver to the Administrative Agent and the Lenders, within thirty (30) days after the end of each calendar month, if the Average Revolving Credit Availability as of the last day of such calendar month is less
than or equal to Ten Million Dollars ($10,000,000), monthly internal unaudited balance sheets of the Borrower, as of the end of such calendar month and statements of income (loss) for the month and fiscal year-to-date periods and comparisons to the
prior year (calendar month and year-to-date periods), all prepared on a Consolidated basis, in form and detail satisfactory to the Administrative Agent and the Lenders and certified by a Financial Officer. 

  
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 (d) Annual Audit Report. The Borrower shall deliver to the Administrative Agent and
the Lenders, within ninety (90) days after the end of each fiscal year of the Borrower (or, if earlier, within five days after the date on which the Borrower shall be required to submit its Form 10-K), an annual audit report of the Companies
for that year prepared on a Consolidated basis, in form and detail satisfactory to the Administrative Agent and the Lenders and certified by an opinion of (i) KPMG LLP or another “big four” accounting firm or (ii) such other
independent public accountant satisfactory to the Administrative Agent (without a “going concern” or like qualification or exception and without any qualification or exception as to the scope of such audit), which report shall include
balance sheets and statements of income (loss), stockholders’ equity and cash-flow for that period. 
 (e) Compliance
Certificate. The Borrower shall deliver to the Administrative Agent and the Lenders, concurrently with the delivery of the financial statements set forth in subsections (b) and (d) above, a Compliance Certificate. 

(f) Accounts Receivable Aging Report. The Borrower shall deliver to the Administrative Agent and the Lenders, within twenty-five
(25) days after the end of each calendar month, an accounts receivable aging report, in form and substance satisfactory to the Administrative Agent and the Lenders, (i) aged by the original invoice date of accounts receivable of the
Borrowing Base Companies, prepared as of the last day of the preceding calendar month, reconciled to the month-end balance sheet and month-end Borrowing Base Certificate, together with the calculation of the current month-end Eligible Accounts
Receivable, Eligible Unbilled Receivables and Eligible Extended Term Accounts Receivable of the Borrowing Base Companies, (ii) upon the Administrative Agent’s request, an aging by original invoice date of all existing accounts receivable,
specifying the names, current value and dates of invoices for each Account Debtor of the Borrowing Base Companies, and (iii) that includes any other information the Administrative Agent shall reasonably request with respect to such accounts
receivable and its evaluation of such reports. 
 (g) Accounts Payable Aging Report. The Borrower shall deliver to the Administrative
Agent and the Lenders, within twenty-five (25) days after the end of each calendar month, in form and detail reasonably satisfactory to the Administrative Agent and the Lenders, an aging summary of the accounts payable of the Borrowing Base
Companies, dated as of the last day of the preceding calendar month. 
 (h) Management Reports. The Borrower shall deliver to the
Administrative Agent and the Lenders, concurrently with the delivery of the quarterly and annual financial statements set forth in subsections (b) and (d) above, a copy of any management report, letter or similar writing furnished to the
Companies by the accountants in respect of the systems, operations, financial condition or properties of the Companies. 
 (i) Customer
List. The Borrower shall deliver to the Administrative Agent an updated customer list, concurrently with the delivery of any field audit report and upon request by any field examiner of the Administrative Agent, that sets forth all Account
Debtors of the Borrowing Base Companies, including but not limited to the name, address and contact information of each such Account Debtor, in form and detail reasonably satisfactory to the Administrative Agent. 

  
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 (j) Pro-Forma Projections. The Borrower shall deliver to the Administrative Agent and
the Lenders, within sixty (60) days after the end of each fiscal year of the Borrower, annual pro-forma projections of the Companies for the then current fiscal year, to be in form and detail acceptable to the Administrative Agent (and at a
minimum to include pro-forma projections of balance sheets, statements of income and cash flow) and presented on a quarterly year to date basis. 

(k) Shareholder and SEC Documents. The Borrower shall deliver to the Administrative Agent and the Lenders (or give notice of the
availability thereof on the SEC Edgar website), as soon as available, (i) copies of Form 10-Q quarterly reports, Form 10-K annual reports and Form 8-K current reports, (ii) upon the request of the Administrative Agent, copies of any other
filings made by the Borrower with the SEC, and (iii) notice of (and, upon the request of the Administrative Agent, copies of) any other information that is provided by the Borrower to its shareholders generally. 

(l) Reporting Periods. If, at any time, the information set forth on Schedule 5.3 hereto becomes inaccurate, or does not set
forth each Quarterly Reporting Period for the following fiscal year of the Borrower, the Borrower shall promptly deliver to the Administrative Agent a replacement Schedule 5.3 that includes such additional or corrected information, in form
and substance satisfactory to Lender. 
 (m) SEC Reporting; Electronic Delivery; Final Statements. Notwithstanding anything to the
contrary contained in this Agreement, all financial statements and reports required hereunder (including, without limitation, those required pursuant to Section 5.3(b) and (d) hereof) shall, upon notice of such filing from the Borrower to
the Administrative Agent, be deemed delivered to the Administrative Agent and the Lenders upon delivery of such financial statements and reports to the SEC pursuant to the Borrower’s public company reporting requirements (and such financial
statements and reports shall be readily available to the Administrative Agent and Lenders). In addition, upon the filing of the Borrower’s 10-Q report with the SEC for any Quarterly Reporting Period, such report shall be deemed to satisfy the
requirements of subsection (a) above, and upon the filing of the Borrower’s 10-K report with the SEC for any fiscal year, such report shall be deemed to satisfy the requirements of subsection (b) above. All financial statements and
reports required to be delivered pursuant to this Section 5.3 may, at the Borrower’s option, be delivered via electronic mail to the Administrative Agent and the Lenders in accordance with Section 11.4 hereof. 

(n) Foreign Deposit Accounts. The Borrower shall deliver to the Administrative Agent within thirty (30) days after the end of each
month (if and only if such month ends during a Heightened Testing Period) a report, in form and detail reasonably acceptable to the Administrative Agent, showing the aggregate trial balance of the Foreign Deposit Accounts as of the end of such
month. 

  
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 (o) Financial Information of the Companies. The Borrower shall deliver to the
Administrative Agent and the Lenders, within ten days of the written request of the Administrative Agent or any Lender, such other information about the financial condition, properties and operations of any Company as the Administrative Agent or
such Lender may from time to time reasonably request, which information shall be submitted in form and detail reasonably satisfactory to the Administrative Agent or such Lender. 

(p) Delivery Through Approved Electronic Communication System. Unless otherwise required by the Administrative Agent, all documents and
other information required to be provided to the Administrative Agent pursuant to Section 5.3(a) (Borrowing Base Certificate), Section 5.3(f) (Accounts Receivable Aging Report), and Section 5.3(h) (Accounts Payable Aging Report),
shall be delivered to the Administrative Agent through the Approved Electronic Communication System. 
 Section 5.4. Financial
Records. Each Company shall at all times maintain records and books of account, including, without limiting the generality of the foregoing, appropriate provisions for possible losses and liabilities, all in accordance with GAAP and, in all
material respects, Requirements of Law, and at all reasonable times (during normal business hours, and except during the continuance of an Event of Default, upon reasonable advance notice to such Company) permit the Administrative Agent or any
Lender, or any representative of the Administrative Agent or such Lender, to examine such Company’s books and records and to make excerpts therefrom and transcripts thereof. 

Section 5.5. Franchises; Change in Business. 

(a) Each Company (other than a Dormant Subsidiary) shall preserve and maintain at all times its existence, and its rights and franchises
necessary for its business, except as otherwise permitted pursuant to Section 5.12 hereof. 
 (b) No Company shall engage in any
business if, as a result thereof, the general nature of the business of the Companies taken as a whole would be substantially changed from the general nature of the business the Companies are engaged in on the Closing Date. 

Section 5.6. ERISA Pension and Benefit Plan Compliance. 

(a) No Company shall incur any material accumulated funding deficiency within the meaning of ERISA, or any material liability to the PBGC,
established thereunder in connection with any ERISA Plan. 
 (b) The Borrower shall furnish to the Administrative Agent and the Lenders: 

(i) as soon as possible and in any event within thirty (30) days after any Company knows or has reason to know that any
Reportable Event with respect to any ERISA Plan has occurred that could reasonably be expected to have a Material Adverse Effect, a statement of a Financial Officer of such Company, setting forth details as to such Reportable Event and the action
that such Company proposes to take with respect thereto, together with a copy of the notice of such Reportable Event given to the PBGC if a copy of such notice is available to such Company, and 

  
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 (ii) promptly after receipt thereof, a copy of any notice such Company, or
any member of the Controlled Group may receive from the PBGC or the IRS with respect to any ERISA Plan administered by such Company if the subject matter of such notice could reasonably be expected to involve a material liability; provided that this
latter subpart shall not apply to notices of general application promulgated by the PBGC or the IRS. 
 (c) The Borrower shall promptly
notify the Administrative Agent of any material taxes assessed, proposed to be assessed or that the Borrower has reason to believe may be assessed against a Company by the IRS with respect to any ERISA Plan. 

(d) As soon as practicable, and in any event within twenty (20) days, after any Company shall become aware that an ERISA Event that could
reasonably be expected to have a Material Adverse Effect shall have occurred, such Company shall provide the Administrative Agent with notice of such ERISA Event with a certificate by a Financial Officer of such Company setting forth the details of
the event and the action such Company or another Controlled Group member proposes to take with respect thereto. 
 (e) The Borrower shall, at
the request of the Administrative Agent or any Lender, deliver or cause to be delivered to the Administrative Agent or such Lender, as the case may be, true and correct copies of any documents relating to the ERISA Plan of any Company. 

As used in this Section 5.6, “material” means the measure of a matter of significance that shall be determined as being an amount equal to five
percent (5%) of Consolidated Net Worth. 
 Section 5.7. Financial Covenants. 

(a) Minimum Consolidated EBITDA. The Borrower shall not suffer or permit the Consolidated EBITDA, as determined for the most recently
completed four Quarterly Reporting Periods of the Borrower, to be less than Five Million Dollars ($5,000,000). 
 (b) Fixed Charge
Coverage Ratio. During any FCCR Testing Period, the Borrower shall not suffer or permit at any time the Fixed Charge Coverage Ratio (as determined as of the end of the most recently completed fiscal quarter of the Borrower) to be less than 1.10
to 1.00. 
 (c) Capital Expenditures. The Companies shall not invest in Consolidated Capital Expenditures more than an aggregate
amount equal to Five Million Dollars ($5,000,000) during any period of twelve (12) calendar months. 
 Section 5.8.
Borrowing. No Company shall create, incur or have outstanding any Indebtedness of any kind; provided that this Section 5.8 shall not apply to the following: 

(a) the Loans, the Letters of Credit and any other Indebtedness and Obligations under this Agreement and the other Loan Documents; 

  
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 (b) any loans granted to, or Capitalized Lease Obligations entered into by, any Company for
the purchase, improvement, construction or lease of fixed assets and furniture (and refinancings of such loans or Capitalized Lease Obligations), which loans and Capitalized Lease Obligations shall only be secured by the fixed assets being
purchased, improved, constructed or leased, so long as the aggregate principal amount of all such loans and Capitalized Lease Obligations for all Companies shall not exceed Two Million Dollars ($2,000,000) at any time outstanding; 

(c) the Indebtedness existing on the Closing Date, in addition to the other Indebtedness permitted to be incurred pursuant to this
Section 5.8, as set forth in Schedule 5.8 hereto (and any extension, renewal or refinancing thereof but only to the extent that the principal amount thereof does not increase after the Closing Date, except for capitalized interest and
financing costs); 
 (d) loans to, and guaranties of Indebtedness of, a Company from a Company so long as (i) each such Company is a
Credit Party or (ii) neither Company is a Credit Party; 
 (e) Indebtedness of any Credit Party owing to any Subsidiary that is not a
Credit Party, so long as such Indebtedness shall be subordinated to the Secured Obligations on terms satisfactory to the Administrative Agent; 

(f) Indebtedness under any Hedge Agreement, so long as such Hedge Agreement shall have been entered into in the ordinary course of business and
not for speculative purposes; 
 (g) Permitted Foreign Subsidiary Loans, Guaranties and Investments, so long as no Default or Event of
Default shall exist prior to, or after giving pro forma effect to, the making of such loan, guaranty or investment; 
 (h) Indebtedness
consisting of loans made to a Company, secured only by real estate and/or life insurance policies (including any cash surrender value thereof) owned by such Company, so long as, solely in the case of loans secured by real estate and loans secured by
life insurance policies where the lender is not the insurer (i) the Borrower notifies the Administrative Agent and the Lenders of such loans (and any related Liens) in writing at least thirty (30) days prior to the date such loans are
made, and (ii) the Administrative Agent and the Lenders consent to such loans prior to the making of such loans (and if earlier, prior to any Company entering into any agreement with respect thereto); 

(i) Indebtedness (other than Indebtedness for borrowed money) of a Company in respect of performance bonds, bid bonds, appeal bonds, surety
bonds, customs bonds and similar obligations, in each case incurred in the ordinary course of business and consistent with past business practices of such Company; 

(j) Indebtedness of any Person that becomes a Subsidiary after the Closing Date (provided that such Indebtedness (i) is either purchase
money Indebtedness, a Capitalized Lease Obligation or Indebtedness incurred solely for the financing of equipment or real property, (ii) exists at the time such Person becomes a Subsidiary and (iii) is not created in contemplation of or in
connection with such Person becoming a Subsidiary); 

  
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 (k) Indebtedness of the Companies owed in respect of any overdrafts and related liabilities
owing to financial institutions arising from treasury, depository, automated clearinghouse and cash management services provided to such Companies by such financial institutions; 

(l) Indebtedness arising from agreements of a Company providing for contingent indemnification, adjustment of acquisition price or similar
obligations, in each case, to the extent such obligations are incurred or assumed in connection with the acquisition or disposition of any business or assets by a Company; 

(m) Indebtedness consisting of the financing of insurance premiums (with the insurance company providing such financing) in the ordinary course
of business and consistent with past business practices of such Company; and 

(n)

Indebtedness of Foreign Subsidiaries, not covered by the Indebtedness listed above, in an aggregate
principal amount for all Foreign Subsidiaries not to exceed Twenty Million Dollars ($20,000,000) at any time outstanding; and 

(no) other Indebtedness not covered by the Indebtedness listed above, in
an aggregate principal amount for all Companies not to exceed Five Million Dollars ($5,000,000) at any time outstanding. 

Section 5.9. Liens. No Company shall create, assume or suffer to exist (upon the happening of a contingency or otherwise) any Lien
upon any of its property or assets, whether now owned or hereafter acquired; provided that this Section 5.9 shall not apply to the following: 

(a) Liens for taxes not yet due or that are being actively contested in good faith by appropriate proceedings and for which adequate reserves
shall have been established in accordance with GAAP; 
 (b) other statutory Liens incidental to the conduct of its business or the ownership
of its property and assets that (i) were not incurred in connection with the incurring of Indebtedness or the obtaining of advances or credit, and (ii) do not in the aggregate materially detract from the value of its property or assets or
materially impair the use thereof in the operation of its business; 
 (c) any Lien granted to the Administrative Agent, for the benefit of
the Lenders (and Affiliates thereof); 
 (d) the Liens existing on the Closing Date as set forth in Schedule 5.9 hereto and
replacements, extensions, renewals, refundings or refinancings thereof, but only to the extent that the amount of debt secured thereby, and the amount and description of property subject to such Liens, shall not be increased (except for capitalized
interest and financing costs); 

  
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 (e) purchase money Liens on fixed assets securing the loans and Capitalized Lease
Obligations pursuant to Section 5.8(b) hereof, provided that such Lien is limited to the purchase price, improvement or construction costs and only attaches to the property being acquired, improved or constructed; 

(f) easements or other minor defects or irregularities in title of real or personal property not interfering in any material respect with the
use of such property in the business of any Company; 
 (g) Liens (other than any lien created by Section 4069 of ERISA and securing an
obligation of any employer or employers which is delinquent) incurred or deposits made in the ordinary course of business in connection with workers’ compensation, unemployment insurance and other types of social security, or to secure the
performance of tenders, statutory obligations, surety and appeal bonds, payment and performance bonds, return of money bonds and other similar obligations (not incurred in connection with the borrowing of money or the obtaining of advances or
credits to finance the purchase price of property); 
 (h) customary set-off rights against depository accounts permitted hereunder in favor
of banks at which a Company maintains such depository accounts, which set-off rights only secure the obligations of such Company to pay ordinary course fees and bank charges; 

(i) judgment and attachment liens not giving rise to an Event of Default and notices of lis pendens and associated rights related to litigation
being contested in good faith by the Companies in appropriate proceedings and for which adequate reserves have been made; 
 (j) Liens
securing permitted Indebtedness of Foreign Subsidiaries that attach solely to the assets of such Foreign Subsidiaries; 
 (k) Liens securing
the Indebtedness permitted by Section 5.8(h) hereof, so long as such Liens attach only to real estate and/or life insurance policies (including any cash surrender value thereof) owned by a Company; 

(l) Liens securing Indebtedness permitted by Section 5.8(j) hereof; provided that (i) such Lien is not created in contemplation of or
in connection with such acquisition or such Person becoming a Subsidiary, as the case may be; (ii) such Lien shall not apply to any other property or assets of such Company and (iii) such Lien shall secure only those obligations which it
secures on the date on which such Person becomes a Subsidiary; 
 (m) Liens, not incurred in connection with the incurring of Indebtedness,
on the property or assets of any Person that becomes a Subsidiary after the Closing Date; provided that (i) such Lien is not created in contemplation of or in connection with such acquisition or such Person becoming a Subsidiary, as the case
may be; and (ii) such Lien shall secure only those obligations which it secures on the date on which such Person becomes a Subsidiary; 

(n) Liens (i) consisting of customary rights and restrictions contained in agreements relating to any disposition of assets in a
transaction permitted under this Agreement pending the completion thereof and (ii) on assets subject to escrow or similar arrangements that secure indemnification obligations for any transaction permitted under this Agreement; 

  
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 (o) Liens consisting of rights reserved by or vested in any Person by the terms of any
lease, license, franchise, grant or permit held by a Company or by a statutory provision, to terminate any such lease, license, franchise, grant or permit; 

(p) Liens that are incurred in the ordinary course of business consisting of pledges or deposits to secure liability for reimbursement or
indemnification obligations of insurance carriers providing or administering insurance for a Company; or

(q)

Liens incurred through the IBM Factoring Arrangement;
or 

(qr) other Liens, in addition to the Liens listed above, not incurred in
connection with the incurring of Indebtedness, securing amounts, in the aggregate for all Companies, not to exceed Five Hundred Thousand Dollars ($500,000) at any time. 

No Company shall enter into any contract or agreement that would prohibit the Administrative Agent or the Lenders from acquiring a security interest, mortgage
or other Lien on, or a collateral assignment of, any of the property or assets of such Company (or, in the case of Foreign Subsidiaries, on any Collateral) other than a contract or agreement: 

(i) in connection with the purchase, improvement, construction or lease of tangible assets, or permitted Indebtedness incurred
for such purpose (including a permitted replacement or refinancing thereof), that prohibits Liens on such tangible assets; 

(ii) in connection with a permitted disposition of such Company’s assets that prohibits Liens on such assets pending such
disposition; or 
 (iii) that is permitted pursuant to Section 5.23 hereof. 

Section 5.10. Regulations T, U and X. No Company shall take any action that would result in any non-compliance of the Loans or
Letters of Credit with Regulations T, U or X, or any other applicable regulation, of the Board of Governors of the Federal Reserve System. 

Section 5.11. Investments, Loans and Guaranties. No Company shall (a) create, acquire or hold any Subsidiary, (b) make
or hold any investment in any stocks, bonds or securities of any kind, (c) be or become a party to any joint venture or other partnership, (d) make or keep outstanding any advance or loan to any Person, or (e) be or become a Guarantor
of any kind (other than a Guarantor of Payment under the Loan Documents); provided that this Section 5.11 shall not apply to the following: 

(i) any endorsement of a check or other medium of payment for deposit or collection through normal banking channels or similar
transaction in the normal course of business; 

  
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 (ii) any investment in direct obligations of the United States or in
certificates of deposit issued by a member bank (having capital resources in excess of Five Hundred Million Dollars ($500,000,000)) of the Federal Reserve System; 

(iii) any investment in commercial paper or securities that at the time of such investment is assigned the highest quality
rating in accordance with the rating systems employed by either Moody’s or Standard & Poor’s; 
 (iv) the
holding of each of the Subsidiaries listed on Schedule 6.1 hereto, and the creation, acquisition and holding of and any investment in any new Subsidiary after the Closing Date so long as such new Subsidiary shall have been created, acquired
or held, and investments made, in accordance with the terms and conditions of this Agreement; 
 (v) loans to, investments in
and guaranties of the Indebtedness (permitted under Section 5.8(d) hereof) of, a Company from or by a Company so long as (i) each such Company is a Credit Party, or (ii) neither Company is a Credit Party; 

(vi) Indebtedness of any Credit Party owing to any Subsidiary that is not a Credit Party, so long as Indebtedness shall be
subordinated to the Obligations on terms satisfactory to the Administrative Agent; 
 (vii) Permitted Investments or
Permitted Foreign Subsidiary Loans, Guaranties and Investments, so long as no Default or Event of Default shall exist prior to, or after giving pro forma effect to, the making of such loan, guaranty or investment; 

(viii) investments received in compromise or settlement of litigation or disputes or as the result of enforcement of any Lien
by a Company or in an insolvency proceeding; 
 (ix) Investments made in the Borrower’s Non-qualified Key Employee
Deferred Compensation Plan; 
 (x) any Acquisition permitted under Section 5.13 hereof; 

(xi) any advance or loan to an officer or employee of a Company as an advance on commissions, travel and other items in the
ordinary course of business, so long as all such advances and loans from all Companies aggregate not more than the maximum principal sum of One Hundred Thousand Dollars ($100,000) at any time outstanding; 

(xi) (A) Accounts and other trade credit extended in the ordinary course of business and consistent with past business
practices of the Companies, (B) notes, or stock or other securities issued by Account Debtors to a Company pursuant to negotiated agreements with respect to settlement of such Account Debtor’s Accounts in the ordinary course of business
and (C) investments received in the ordinary course of business in connection with the bankruptcy or reorganization of, or settlement of disputes with, or judgments against, or foreclosure or deed in lieu of foreclosure with respect to,
customers and suppliers; 

  
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 (xii) Investments in the form and arising out of Hedge Agreements permitted
under this Agreement; and 
 (xiii) Investments of any Person existing at the time such Person becomes a Subsidiary of a
Borrower or consolidates or merges with a Borrower or any of the Subsidiaries so long as such investments were not made in contemplation of such Person becoming a Subsidiary or of such merger, and any renewal or extension thereof. 

For purposes of this Section 5.11, the amount of any investment shall be based upon the initial amount invested and shall not include any appreciation in
value or return on such investment but shall take into account repayments, redemptions. distributions and return of capital. 

Section 5.12. Merger and Sale of Assets. No Company shall merge, amalgamate or consolidate with any other Person, or sell, lease
or transfer or otherwise dispose of any assets to any Person other than in the ordinary course of business, except that, if no Default or Event of Default shall then exist or immediately thereafter shall begin to exist: 

(a) a Company (other than the Borrower) may merge with (i) the Borrower (provided that the Borrower shall be the continuing or surviving
Person) or (ii) any one or more Guarantors of Payment (provided that at least one Guarantor of Payment shall be the continuing or surviving Person); 

(b) a Company (other than the Borrower) may sell, lease, transfer or otherwise dispose of any of its assets to (i) the Borrower or
(ii) any Guarantor of Payment; 
 (c) a Company (other than a Credit Party) may merge with or sell, lease, transfer or otherwise dispose
of any of its assets to any other Company; 
 (d) a Company may sell, lease, transfer or otherwise dispose of any assets that are obsolete or
no longer useful or no longer used in such Company’s business and may sell its corporate headquarters in Buffalo, New York; 
 (e) a
Company may sell, transfer and dispose of (i) accounts receivable or note receivables in connection with the compromise, settlement or collection thereof (provided that if any such Account was listed as an Eligible Account Receivable in the
most recent certificates delivered pursuant to Section 5.3(a) or (f) hereof, the Borrower shall give the Administrative Agent prior notice of such sale, transfer or disposition) or (ii) investments received in connection with the
bankruptcy or reorganization of, or settlement of disputes with, or judgments against, or foreclosure or deed in lieu of foreclosure with respect to, customers and suppliers of a Company, and (ii) cash and investments permitted by each of
Section 5.11(ii) and (iii); 

  
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 (f) a Company may make a disposition resulting from any casualty or other insured damage to,
or any taking under power of eminent domain or by condemnation or similar proceeding of, any property or asset of any Company; 
 (g) a
Company may sell, transfer, lease or otherwise dispose of property that is exchanged, or the proceeds thereof are applied, in each case, in a substantially contemporaneous acquisition of similar replacement property; 

(h) a Company may enter into any leases, subleases, licenses or sublicenses of property in the ordinary course of business that do not
materially interfere with the business of the Borrower and its Subsidiaries; 
 (i) a Company may sell, transfer, lease or otherwise dispose
of property in the ordinary course of business consisting of the abandonment of intellectual property rights which, in the reasonable good faith determination of the Borrower and in the exercise of its reasonable business judgment, are not material
to the conduct of the business of the Borrower and its Subsidiaries; 
 (j) a Company may voluntarily terminate any Hedge Agreements; and 

(k) Acquisitions may be effected in accordance with the provisions of Section 5.13 hereof.; and 

(l)

the Borrower may sell IBM Account Receivables owing from IBM pursuant to the IBM Factoring
Arrangement. 
 Section 5.13. Acquisitions. No Company shall effect
an Acquisition; provided that a Company may effect an Acquisition so long as such Acquisition meets all of the following requirements: 
 (a)
in the case of an Acquisition that involves a merger, amalgamation or other combination including the Borrower, the Borrower shall be the surviving entity; 

(b) in the case of an Acquisition that involves a merger, amalgamation or other combination including a Credit Party (other than the Borrower),
a Credit Party shall be the surviving entity; 
 (c) the business to be acquired shall be similar to the lines of business of the Companies;

 (d) no Default or Event of Default shall exist prior to or, after giving pro forma effect to such Acquisition, thereafter shall begin to
exist; 
 (e) if the Accounts and Inventory acquired in connection with such Acquisition are proposed to be included in the determination of
the Borrowing Base, the Administrative Agent shall have conducted a field examination and appraisal of such Accounts and Inventory to its reasonable satisfaction; 

  
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 (f) such Acquisition is not actively opposed by the board of directors (or similar governing
body) of the selling Persons or the Persons whose equity interests are to be acquired; and 
 (g) if a Heightened Testing Period exists
immediately prior to, and/or after giving pro forma effect to such Acquisition: 
 (i) the Borrower shall have provided to
the Administrative Agent and the Lenders, at least twenty (20) days prior to such Acquisition (or such shorter period agreed to by the Administrative Agent its sole discretion), (A) a summary of the legal structure of the Acquisition in
form and detail reasonably satisfactory to the Administrative Agent, (B) a proposed sources-and-uses in form and detail reasonably satisfactory to the Administrative Agent (provided that the Borrower shall give the Administrative Agent prompt
written notice of any material change in respect of such sources-and-uses), and (C) historical financial statements of the target entity and a pro forma financial statement of the Companies accompanied by a certificate of a Financial Officer
showing (1) pro forma compliance with Section 5.7 hereof, both before and after giving effect to the proposed Acquisition, and (2) positive EBITDA for the target entity or business during the most recently completed four fiscal
quarters; 
 (ii) the Revolving Credit Availability shall be no less than twenty-five percent (25%) of the Maximum
Revolving Amount after giving effect to such Acquisition; and 
 (iii) the Borrower shall have obtained the prior written
consent of the Administrative Agent and the Required Lenders with respect to any Acquisition by a Company (A) in which the aggregate Consideration paid (or given) by the Companies, when added to all other Acquisitions for all Companies during
the Commitment Period (effected without the prior written consent of the Administrative Agent and the Required Lenders), would exceed the aggregate amount of Five Million Dollars ($5,000,000), or (B) if the Consolidated EBITDA for the period of
the most recently completed four Quarterly Periods of the Borrower, recalculated on a pro forma basis to include the “EBITDA” of the acquired company (with appropriate pro forma adjustments acceptable to the Administrative Agent and
calculated on the same basis as set forth in the definition of Consolidated EBITDA) as if such Acquisition occurred at the beginning of such four quarter period, would be less than the actual Consolidated EBITDA for such period. 

Section 5.14. Notice. The Borrower shall cause a Financial Officer to promptly notify the Administrative Agent and the Lenders, in
writing, whenever any of the following shall occur: 
 (a) a Default or Event of Default has occurred, or could reasonably be expected to
occur hereunder, or any representation or warranty made in Article VI hereof or elsewhere in this Agreement or in any other Related Writing may for any reason cease in any material respect to be true and complete when made or deemed to have been
made; 

  
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 (b) the Borrower learns of a litigation or proceeding against the Borrower before a court,
administrative agency or arbitrator that could reasonably be expected to have a Material Adverse Effect; or 
 (c) the Borrower learns that
there has occurred or begun to exist any event, condition or thing that is reasonably likely to have a Material Adverse Effect. 
 Section 5.15. Restricted Payments. 

(a)
Section 5.15. Restricted
Payments. No Company shall make or commit itself to make any Restricted Payment, except that the Borrower may make Capital Distributions in cash in the form of dividends or stock repurchases so long as either
(a) each of the following conditions are met (Ai) no Default or Event of Default shall have existed at any time in the
period of twelve (12) consecutive months ending on the date of such Capital Distributions, or, after giving pro forma effect to such Capital Distributions, thereafter shall begin to exist, (Bii) no FCCR Testing Period shall then exist or, after giving pro forma effect to such Capital Distributions, thereafter shall begin to exist, and (Ciii) the aggregate amount of Capital Distributions made by the Borrower shall not exceed Ten Million Dollars
($10,000,000(A) during any period of twenty-four
consecutive months, or
( ending on or prior to April 13, 2020, the total of (y) Twenty-Two Million Five Hundred
Thirty-Two Thousand Nine Hundred Sixty-Two Dollars ($22,532,962) minus (z) the aggregate amount of Capital Distributions made pursuant to subpart (c) below, or (B) during any period of twenty-four consecutive months ending thereafter,
Ten Million Dollars ($10,000,000); 
 (b) the Borrower may make Capital Distributions in cash in the form of dividends or stock repurchases so long as no Default, Event of Default or Heightened Testing Period shall exist immediately prior to or after giving pro forma effect to such Capital Distribution.; and 

(c)
 in addition to the Capital Distributions permitted pursuant to
subparts (a) and (b) above, the Borrower may make Capital Distributions in cash in connection with that certain tender offer to occur on or about April 13, 2018 in an aggregate amount not to exceed Twenty-Two Million Five Hundred
Thirty-Two Thousand Nine Hundred Sixty-Two Dollars ($22,532,962). 

Section 5.16. Environmental Compliance. Each Company shall comply with any and all Environmental Laws and Environmental Permits
including, without limitation, all Environmental Laws in jurisdictions in which such Company owns or operates a facility or site, arranges for disposal or treatment of hazardous substances, solid waste or other wastes, accepts for transport any
hazardous substances, solid waste or other wastes or holds any interest in real property or otherwise, except for such non-compliance as could not reasonably be expected to have a Material Adverse Effect. The Borrower shall furnish to the
Administrative Agent and the Lenders, promptly after receipt thereof, a copy of any notice any Company may receive from any Governmental Authority or private Person, or otherwise, that any litigation or proceeding

  
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pertaining to any environmental, health or safety matter has been filed or is threatened against such Company, any real property in which such Company holds any interest or any past or present
operation of such Company if such litigation or proceeding involves a matter that could be reasonably be expected to have a Material Adverse Effect on such Company. No Company shall allow the release or disposal of hazardous waste, solid waste or
other wastes on, under or to any real property in which any Company holds any ownership interest or performs any of its operations, in violation of any Environmental Law, except if such violation could not reasonably be expected to have a Material
Adverse Effect. As used in this Section 5.16, “litigation or proceeding” means any demand, claim, notice, suit, suit in equity action, administrative action, investigation or inquiry whether brought by any Governmental Authority or
private Person, or otherwise. The Borrower shall defend, indemnify and hold the Administrative Agent and the Lenders harmless against all costs, expenses, claims, damages, penalties and liabilities of every kind or nature whatsoever (including
attorneys’ fees) arising out of or resulting from the noncompliance of any Company with any Environmental Law. Such indemnification shall survive any termination of this Agreement. 

Section 5.17. Affiliate Transactions. No Company shall, directly or indirectly, enter into or permit to exist any transaction or
series of transactions (including, without limitation, the purchase, sale, lease or exchange of any property or the rendering of any service) with any Affiliate of a Company (other than a Company that is a Credit Party) on terms that shall be
materially less favorable to such Company than those that might be obtained at the time in a transaction with a Person that is not an Affiliate of a Company; provided that the foregoing shall not prohibit (a) the payment of customary and
reasonable directors’ fees, (b) any transaction between a Company and an Affiliate of a Company that are based on reasonably allocation of overhead and administrative expense or transfers in accordance with Tax transfer pricing rules,
(c) transactions that consist the consideration of which solely consists of equity interests of the Borrower, (d) Indebtedness permitted by Section 5.8(d), (e) or (g), and (e) investments permitted by Section 5.11(v),
(vi) or (vii). 
 Section 5.18. Use of Proceeds. The Borrower’s use of the proceeds of the Loans shall be for working
capital and other general corporate purposes of the Companies and for the refinancing of existing Indebtedness. The Borrower will not, directly or indirectly, use the proceeds of the Loans, or lend, contribute or otherwise make available such
proceeds to any Subsidiary, joint venture partner or other Person, (a) (i) to fund any activities or business of or with any Person, or in any country or territory, that, at the time of such funding, is, or whose government is, the subject
of Sanctions, or (ii) in any other manner that would result in a violation of Sanctions by any Person (including any Person participating in the Loans, whether as underwriter, advisor, investor, or otherwise); or (b) in furtherance of an
offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of Anti-Corruption Laws. 

Section 5.19. Corporate Names and Locations of Collateral. No Company shall (a) change its corporate name, or (b) change
its state, province or other jurisdiction, or form of organization, or extend or continue its existence in or to any other jurisdiction (other than its jurisdiction of organization at the date of this Agreement); unless, in each case, the Borrower
shall have provided the Administrative Agent with at least thirty (30) days’ prior written notice 

  
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thereof. The Borrower shall also provide the Administrative Agent with at least fifteen (15) days’ prior written notification of (i) any change in the location of the office where
any Credit Party’s records pertaining to its Accounts are kept; (ii) the location of any new places of business and the changing or closing of any of its existing places of business; and (iii) any change in the location of any Credit
Party’s chief executive office in which case such Credit Party shall use commercially reasonably efforts to cause to be executed a Landlord’s Waiver with respect to such location (unless such location is owned by a Credit Party or already
subject to a Landlord’s Waiver). In the event of any of the foregoing or if otherwise deemed appropriate by the Administrative Agent, the Administrative Agent is hereby authorized to file new U.C.C. Financing Statements describing the
Collateral and otherwise in form and substance sufficient for recordation wherever necessary or appropriate, as determined in the Administrative Agent’s sole discretion, to perfect or continue perfected the security interest of the
Administrative Agent, for the benefit of the Lenders, in the Collateral. The Borrower shall pay all filing and recording fees and taxes in connection with the filing or recordation of such U.C.C. Financing Statements and security interests and shall
promptly reimburse the Administrative Agent therefor if the Administrative Agent pays the same. Such amounts not so paid or reimbursed shall be Related Expenses hereunder. 

Section 5.20. Subsidiary Guaranties, Security Documents and Pledge of Stock or Other Ownership Interest. 

(a) Domestic Subsidiary Guaranties and Security Documents. Each Domestic Subsidiary (that is not a Dormant Subsidiary or an Immaterial
Subsidiary) created, acquired or held subsequent to the Closing Date, shall promptly execute and deliver to the Administrative Agent, for the benefit of the Lenders, a Guaranty of Payment (or a Guaranty of Payment Joinder) of all of the Secured
Obligations and a Security Agreement (or a Security Agreement Joinder), as appropriate, such agreements to be prepared by the Administrative Agent and in form and substance acceptable to the Administrative Agent, along with any such other supporting
documentation, Security Documents, corporate governance and authorization documents, and an opinion of counsel (which may be the general counsel of the Borrower, in the reasonable discretion of the Administrative Agent) as may be deemed necessary or
advisable by the Administrative Agent. With respect to a Subsidiary that has been classified as a Dormant Subsidiary or an Immaterial Subsidiary, at such time that such Subsidiary no longer meets the requirements of a Dormant Subsidiary or an
Immaterial Subsidiary, the Borrower shall provide to the Administrative Agent prompt written notice thereof, and shall provide, with respect to such Subsidiary, all of the documents referenced in the foregoing sentence. In addition, each such
Subsidiary shall be subject to the Patriot Act requirements set forth in Section 11.14 hereof. 
 (b) Foreign Subsidiary Guaranties
and Security Documents. If, as a result of a Change in Law, any Foreign Subsidiaries may, without reasonable risk of material negative tax consequences on the Borrower, execute and deliver a Guaranty of Payment of all of the Secured Obligations
and/or a Security Agreement, such Foreign Subsidiaries shall, within sixty (60) days of the request of the Administrative Agent (or such longer time as agreed to in writing by the Administrative Agent in its reasonable discretion), execute and
deliver a Guaranty of Payment (or a Guaranty of Payment Joinder) of all of the Secured Obligations and a Security Agreement (or a Security Agreement Joinder), as appropriate, such agreements to be prepared by the

  
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Administrative Agent and in form and substance reasonably acceptable to the Administrative Agent, along with any such other supporting documentation, Security Documents, corporate governance and
authorization documents, and opinions of counsel as may be deemed necessary or advisable by the Administrative Agent, all of which shall be at the Borrower’s cost, payable upon request therefor (including, without limitation, any foreign
counsel, or foreign notary, filing, registration or similar, fees, costs or expenses). 
 (c) Pledge of Stock or Other Ownership
Interest. With respect to the creation or acquisition of a Domestic Subsidiary or first-tier Foreign Subsidiary of the Borrower or a Domestic Subsidiary, the Borrower shall deliver to the Administrative Agent, for the benefit of the Lenders, all
of the share certificates (or other evidence of equity) owned by a Credit Party pursuant to the terms of a Pledge Agreement prepared by the Administrative Agent and in form and substance satisfactory to the Administrative Agent, and executed by the
appropriate Credit Party; provided that, for so long as and to the extent that, the granting of a Lien to the Administrative Agent on such assets could reasonably be expected to have material negative tax consequences on the Borrower (including
without limitation under Section 956 of the Code as in effect as of the Closing Date), no such pledge shall be deemed to include (i) shares of capital stock or other equity interests of any Foreign Subsidiary that is not a first-tier
Foreign Subsidiary, and (ii) shares of voting capital stock or other voting equity interests in any (A) first-tier Foreign Subsidiary or (B) CFC Holding Company, in excess of sixty-five percent (65%) of the total outstanding
shares of voting capital stock or other voting equity interest of such first-tier Foreign Subsidiary or CFC Holding Company, as applicable. 

(d) Perfection or Registration of Interest in Foreign Shares or Foreign Deposit Accounts. With respect to any Foreign Deposit Accounts
or any foreign shares pledged to the Administrative Agent, for the benefit of the Lenders, on or after the Closing Date, the Administrative Agent shall at all times, in the discretion of the Administrative Agent or the Required Lenders, have the
right to perfect, at the Borrower’s cost, payable upon request therefor (including, without limitation, any foreign counsel, or foreign notary, filing, registration or similar, fees, costs or expenses), its security interest in such Foreign
Deposit Accounts or shares in the respective foreign jurisdiction. Such perfection may include the requirement that the applicable Company promptly execute and deliver to the Administrative Agent a separate pledge document (prepared by the
Administrative Agent and in form and substance satisfactory to the Administrative Agent), covering such Foreign Deposit Accounts or equity interests, that conforms to the requirements of the applicable foreign jurisdiction, together with an opinion
of local counsel as to the perfection of the security interest provided for therein, and all other documentation necessary or desirable to effect the foregoing and to permit the Administrative Agent to exercise any of its rights and remedies in
respect thereof. 
 Section 5.21. Collateral. Each Credit Party shall: 

(a) at all reasonable times and, except during the continuance of an Event of Default, upon reasonable prior notice, allow the Administrative
Agent and the Lenders by or through any of the Administrative Agent’s officers, agents, employees, attorneys or accountants to (i) examine, inspect and make extracts from such Credit Party’s books and other records, including, without
limitation, the tax returns of such Credit Party, (ii) arrange for verification of such Credit Party’s Accounts, under reasonable procedures, directly with Account Debtors or by other methods, and (iii) examine and inspect such Credit
Party’s Inventory and Equipment, wherever located; 

  
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 (b) promptly furnish to the Administrative Agent or any Lender upon reasonable request
(i) additional statements and information with respect to the Collateral, and all writings and information relating to or evidencing any of such Credit Party’s Accounts (including, without limitation, computer printouts or typewritten
reports listing the mailing addresses of all present Account Debtors), and (ii) any other writings and information as the Administrative Agent or such Lender may request; 

(c) promptly notify the Administrative Agent in writing upon the acquisition or creation of any Accounts with respect to which the Account
Debtor is the United States of America or any other Governmental Authority, to the extent the aggregate face value of all such Accounts exceeds Two Hundred Thousand Dollars ($200,000) at any time outstanding; 

(d) promptly notify the Administrative Agent in writing upon the acquisition or creation by any Credit Party of a Deposit Account (that is not
an Excluded Deposit Account) or Securities Account not listed on the notice provided to the Administrative Agent pursuant to Section 6.19 hereof, or upon any Deposit Account of a Credit Party ceasing to be an Excluded Deposit Account, and,
prior to or simultaneously with the creation of such Deposit Account or Securities Account (or promptly after any Deposit Account ceases to be an Excluded Deposit Account), provide for the execution of a Deposit Account Control Agreement or
Securities Account Control Agreement with respect thereto, if required by the Administrative Agent or the Required Lenders; 
 (e) promptly
notify the Administrative Agent in writing whenever Equipment or Inventory of a Credit Party, valued in excess of Two Hundred Fifty Thousand Dollars ($250,000), is located at a location of a third party (other than another Company) that is not
subject to a Landlord’s Waiver, bailee’s waiver, processor’s waiver, consignee’s waiver or similar document (as applicable) and use commercially reasonable efforts to cause to be executed any Landlord’s Waiver, bailee’s
waiver, processor’s waiver, consignee’s waiver or similar document or notice that may be required by the Administrative Agent or the Required Lenders; 

(f) promptly notify the Administrative Agent and the Lenders in writing of any information that the Credit Parties have or may receive with
respect to the material Collateral that might reasonably be determined to materially and adversely affect the value thereof or the rights of the Administrative Agent and the Lenders with respect thereto; 

(g) maintain such Credit Party’s (i) Equipment in good operating condition and repair, ordinary wear and tear excepted, and
(ii) other items of Collateral, taken as an entirety, in such conditions as is consistent with generally accepted business practices, ordinary wear and tear excepted; 

  
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 (h) deliver to the Administrative Agent, to hold as security for the Secured Obligations all
of the Credit Parties’ certificated Investment Property (other than Excluded Properties), whose face value, in the aggregate for all Credit Parties, exceeds Two Hundred Thousand Dollars ($200,000), in suitable form for transfer by delivery, or
accompanied by duly executed instruments of transfer or assignment in blank, all in form and substance satisfactory to the Administrative Agent, or in the event such Investment Property is in the possession of a Securities Intermediary or credited
to a Securities Account, execute with the related Securities Intermediary a Securities Account Control Agreement over such Securities Account in favor of the Administrative Agent, for the benefit of the Lenders, in form and substance satisfactory to
the Administrative Agent; 
 (i) if requested by the Administrative Agent or if material to the business of any Company, provide to the
Administrative Agent, on a quarterly basis (as necessary), a list of any patents, trademarks or copyrights that have been federally registered by, or any federally registered patents, trademarks or copyrights acquired by, a Credit Party during such
quarter, and provide for the execution of an appropriate Intellectual Property Security Agreement; and 
 (j) upon request of the
Administrative Agent, promptly take such action and promptly make, execute and deliver all such additional and further items, deeds, assurances, instruments and any other writings as the Administrative Agent may from time to time deem reasonably
necessary or appropriate, including, without limitation, chattel paper, to carry into effect the intention of this Agreement, or so as to completely vest in and ensure to the Administrative Agent and the Lenders their respective rights hereunder and
in or to the Collateral. 
 Each Credit Party hereby authorizes the Administrative Agent, on behalf of the Lenders, to file U.C.C. Financing Statements or
other appropriate notices with respect to the Collateral. If certificates of title or applications for title are issued or outstanding with respect to any of the Inventory or Equipment constituting Collateral of any Credit Party, such Credit Party
shall, upon request of the Administrative Agent, (i) execute and deliver to the Administrative Agent a short form security agreement, prepared by the Administrative Agent and in form and substance satisfactory to the Administrative Agent, and
(ii) deliver such certificate or application to the Administrative Agent and cause the interest of the Administrative Agent, for the benefit of the Lenders, to be properly noted thereon. Each Credit Party hereby authorizes the Administrative
Agent or the Administrative Agent’s designated agent (but without obligation by the Administrative Agent to do so) to incur Related Expenses (whether prior to, upon, or subsequent to any Default or Event of Default), and the Borrower shall
promptly repay, reimburse, and indemnify the Administrative Agent and the Lenders for any and all Related Expenses. All Related Expenses are payable to the Administrative Agent upon demand therefor; the Administrative Agent may, at its option, debit
Related Expenses directly to any Deposit Account (other than an Excluded Deposit Account) of a Company located at the Administrative Agent. 

Section 5.22. Property Acquired Subsequent to the Closing Date and Right to Take Additional Collateral. The Borrower shall provide
the Administrative Agent with prompt written notice with respect to any material personal property (other than Excluded Properties and Collateral subject to a first priority perfected Lien in favor of the Administrative Agent under by 

  
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 a Security Agreement) acquired by any Credit Party subsequent to the Closing Date. In addition to any other
right that the Administrative Agent and the Lenders may have pursuant to this Agreement or otherwise, upon written request of the Administrative Agent, whenever made, the Borrower shall, and shall cause each Guarantor of Payment to, grant to the
Administrative Agent, for the benefit of the Lenders, as additional security for the Secured Obligations, a first Lien on personal property (subject to Liens permitted under this Agreement) of the Borrower and each Guarantor of Payment (other than
for leased equipment or equipment subject to a purchase money security interest in which the lessor or purchase money lender of such equipment holds a first priority security interest, in which case, the Administrative Agent shall have the right to
obtain a security interest junior only to such lessor or purchase money lender and Excluded Property), including, without limitation, such property acquired subsequent to the Closing Date, in which the Administrative Agent does not have a first
priority Lien. The Borrower agrees that, within ten days after the date of such written request, to secure all of the Secured Obligations by delivering to the Administrative Agent security agreements, intellectual property security agreements,
pledge agreements, mortgages (or deeds of trust, if applicable) or other documents, instruments or agreements or such thereof as the Administrative Agent may require with respect to any of the Credit Parties. The Borrower shall pay all recordation,
legal and other expenses in connection therewith. 
 Section 5.23. Restrictive Agreements. Except as set forth in this
Agreement, the Borrower shall not, and shall not permit any of its Subsidiaries to, directly or indirectly, create or otherwise cause or suffer to exist or become effective any encumbrance or restriction on the ability of any Subsidiary to
(a) make, directly or indirectly, any dividend or other capital distribution to the Borrower, (b) make, directly or indirectly, loans or advances or capital contributions to the Borrower or (c) transfer, directly or indirectly, any of
the properties or assets of such Subsidiary to the Borrower; except for such encumbrances or restrictions existing under or by reason of (i) applicable Law, (ii) customary non-assignment provisions in leases or other agreements entered in
the ordinary course of business and consistent with past practices of such Companies, (iii) customary restrictions in security agreements or mortgages securing Indebtedness, or capital leases, of a Company to the extent such restrictions shall
only restrict the transfer of the property subject to such security agreement, mortgage or lease, (iv) any agreement in effect at the time such Person becomes a Subsidiary, so long as such agreement was not entered into in contemplation of such
Person becoming a Subsidiary, or (v) customary restrictions in agreements evidencing permitted Indebtedness of Foreign Subsidiaries to the extent such restrictions shall only restrict Foreign Subsidiaries. 

Section 5.24. Other Financial Covenants. In the event that any Credit Party shall enter into, or shall have entered into, any
Material Indebtedness Agreement, wherein the financial covenants contained therein shall be more restrictive than the financial covenants set forth herein, then the Credit Parties shall immediately be bound hereunder (without further action) by such
more restrictive financial covenants with the same force and effect as if such financial covenants were written herein for so long as such financial covenants are in effect pursuant to such Material Indebtedness Agreement. In addition to the
foregoing, the Borrower shall provide prompt written notice to the Administrative Agent of the creation or existence of any Material Indebtedness Agreement that has such more restrictive financial covenants, and shall, within fifteen (15) days
thereafter (if requested by the Administrative Agent), execute and deliver to the Administrative Agent an amendment to this Agreement that incorporates such more restrictive financial covenants, with such amendment to be in form and substance
satisfactory to the Administrative Agent. 

  
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 Section 5.25. Guaranty Under Material Indebtedness Agreement. No Company that is
not a Credit Party shall be or become a Guarantor of the Indebtedness incurred pursuant to any Material Indebtedness Agreement entered into by a Credit Party unless such Company shall also be a Guarantor of Payment under this Agreement prior to or
concurrently therewith. 
 Section 5.26. Amendment of Organizational Documents. Without the prior written consent of the
Administrative Agent, no Credit Party shall amend its Organizational Documents in any manner adverse to the Lenders. 

Section 5.27. Fiscal Year of Borrower. The Borrower shall not change the date of its fiscal year-ends listed on Schedule
5.3 hereto without the prior written consent of the Administrative Agent. 
 Section 5.28. Compliance with Laws. The
Borrower shall, and shall cause each Subsidiary to, comply in all material respects with all Laws, rules, regulations, orders, writs, judgments, injunctions, decrees or awards to which it may be subject including, without limitation, all
Environmental Laws, Anti-Corruption Laws and applicable Sanctions. The Borrower shall maintain in effect and enforce such policies and procedures as it has determined to be reasonably necessary to promote compliance by the Borrower, the Subsidiaries
and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions. 
 Section 5.29.
Banking Relationship. Until payment in full of the Obligations, the Borrower shall maintain its primary banking and depository relationship with the Administrative Agent. 

Section 5.30. Foreign Deposit Accounts. 

(a) The Borrower shall not at any time permit any Collections that constitute payments with respect to any Eligible Account Receivable to be
deposited into any Foreign Deposit Accounts (unless the Borrower causes any such amounts to be transferred into the Concentration Account pursuant to the terms of Section 7.2(b) hereof). 

(b) The Borrower shall not, during a Heightened Testing Period, (i) transfer or permit to be transferred, from any Deposit Account
maintained by a Company in the United States, any funds into any Foreign Deposit Account, or (ii) cause or permit the balance of any Foreign Deposit Account of the Borrower or any Domestic Subsidiary to increase (unless the Borrower causes a
corresponding amount to be transferred into the Concentration Account pursuant to the terms of Section 7.2(b) hereof). 

  
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Section 
5.31. Beneficial Ownership. The Borrower shall provide to the Administrative Agent and the Lenders: (a) confirmation of the accuracy of the information set forth in the most recent Beneficial Ownership Certification provided to the
Administrative Agent and Lenders, promptly following any request therefor (or an updated Beneficial Ownership Certification if applicable); (b) a new Beneficial Ownership Certification, in form and substance acceptable to the Administrative
Agent and each Lenders, when the individual(s) to be identified as a Beneficial Owner have changed; and (c) such other KYC Information reasonably requested by the Administrative Agent or any Lender. 

Section 5.315.32. Further Assurances. The Borrower shall, and shall cause
each other Credit Party to, promptly upon request by the Administrative Agent, or the Required Lenders through the Administrative Agent, (a) correct any material defect or error that may be discovered in any Loan Document or in the execution,
acknowledgment, filing or recordation thereof, and (b) do, execute, acknowledge, deliver, record, re-record, file, re-file, register and re-register any and all such further acts, deeds, certificates, assurances and other instruments as the
Administrative Agent, or the Required Lenders through the Administrative Agent, may reasonably require from time to time in order to carry out more effectively the purposes of the Loan Documents. 

ARTICLE VI. REPRESENTATIONS AND WARRANTIES 

Section 6.1. Corporate Existence; Subsidiaries; Foreign Qualification. Each Company is duly organized, validly existing, and in
good standing (or comparable concept in the applicable jurisdiction) under the Laws of its state or jurisdiction of incorporation or organization, and is duly qualified and authorized to do business and is in good standing (or comparable concept in
the applicable jurisdiction) as a foreign entity in the jurisdictions set forth opposite its name on Schedule 6.1 hereto, which are all of the states or jurisdictions where the character of its property or its business activities makes such
qualification necessary and where the failure to so qualify could reasonably be expected to result in a Material Adverse Effect. Schedule 6.1 hereto sets forth, as of the Closing Date, each Subsidiary (and whether such Subsidiary is a Dormant
Subsidiary), its state (or jurisdiction) of formation, its relationship to the Borrower, including the percentage of each class of stock or other equity interest owned by a Company, each Person that owns the stock or other equity interest of each
Company (other than the Borrower), and its tax identification number, the location of its chief executive office and its principal place of business. As of the Closing Date, the Borrower, directly or indirectly, owns all of the equity interests of
each of its Subsidiaries. 
 Section 6.2. Corporate Authority. Each Credit Party has the right and power and is duly authorized
and empowered to enter into, execute and deliver the Loan Documents to which it is a party and to perform and observe the provisions of the Loan Documents. The Loan Documents to which each Credit Party is a party have been duly authorized and
approved by such Credit Party’s board of directors or other governing body, as applicable, and are the legal, valid and binding obligations of such Credit Party, enforceable against such Credit Party in accordance with their respective terms.
The execution, delivery and performance of the Loan Documents do not conflict with, result in a breach in any of the provisions of, constitute a default under, or result in the creation of a Lien (other than Liens permitted under Section 5.9
hereof) upon any assets or property of any Company under the provisions of, such Company’s Organizational Documents or any material agreement to which such Company is a party. 

  
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 Section 6.3. Compliance with Laws and Contracts. Each Company: 

(a) holds permits, certificates, licenses, orders, registrations, franchises, authorizations, and other approvals from any Governmental
Authority necessary for the conduct of its business and is in compliance with all applicable Laws relating thereto, except where the failure to do so would not have a Material Adverse Effect; 

(b) is in compliance with all federal, state, local, or foreign applicable statutes, rules, regulations, and orders including, without
limitation, those relating to environmental protection, occupational safety and health, and equal employment practices, except where the failure to be in compliance would not have a Material Adverse Effect; 

(c) is not in violation of or in default under any agreement to which it is a party or by which its assets are subject or bound, except with
respect to any violation or default that would not have a Material Adverse Effect; 
 (d) has ensured that no Company, or to the knowledge of
any Company, any director, officer, agent, employee or Affiliate of a Company, is a Person that is, or is controlled by Persons that are (i) the subject of any Sanctions, or (ii) located, organized or resident in a country or territory
that is, or whose government is, the subject of Sanctions; 
 (e) is in compliance with all applicable Bank Secrecy Act (“BSA”) and
anti-money laundering Laws and regulations; 
 (f) has ensured that no Company or any director, officer, agent, employee or other person
acting on behalf of a Company has taken any action, directly or indirectly, that would result in a material violation by such persons of Anti-Corruption Laws, and the Credit Parties have instituted and maintain policies and procedures designed to
promote continued compliance therewith; and 
 (g) is in compliance with the Patriot Act. 

Section 6.4. Litigation and Administrative Proceedings. Except as disclosed on Schedule 6.4 hereto, there are (a) no
lawsuits, actions, investigations, examinations or other proceedings pending or threatened against any Company, or in respect of which any Company may have any liability, in any court or before or by any Governmental Authority, arbitration board, or
other tribunal, (b) no orders, writs, injunctions, judgments, or decrees of any court or Governmental Authority to which any Company is a party or by which the property or assets of any Company are bound, and (c) no grievances, disputes,
or controversies outstanding with any union or other organization of the employees of any Company, or threats of work stoppage, strike, or pending demands for collective bargaining, that in the case of (a), (b) and (c) could reasonably be
expected to have a Material Adverse Effect. 

  
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 Section 6.5. Title to Assets. Each Company has good title to and ownership of
all property it purports to own, which property is free and clear of all Liens, except those permitted under Section 5.9 hereof. As of the Closing Date, the Borrower and the Domestic Subsidiaries own the real estate listed on Schedule
6.5 hereto. 
 Section 6.6. Liens and Security Interests. On and after the Closing Date, except for Liens permitted pursuant
to Section 5.9 hereof, (a) there is and will be no U.C.C. Financing Statement or similar notice of Lien outstanding covering any personal property of any Company (other than U.C.C. Financing Statements filed in connection with operating
leases and bailments of property and any U.C.C. Financing Statement that are filed without authorization and that have not yet become known to the Borrower, in which case the Borrower shall promptly after gaining knowledge thereof, contest such
U.C.C. Financing Statement in good faith); (b) there is and will be no mortgage or charge outstanding covering any real property of any Company; and (c) no real or personal property of any Company is subject to any Lien of any kind. The
Administrative Agent, for the benefit of the Lenders, upon the filing of the U.C.C. Financing Statements and taking such other actions necessary to perfect its Lien against collateral of the corresponding type as authorized hereunder will have a
valid and enforceable first Lien on the collateral securing the Secured Obligations (subject to Liens permitted under this Agreement). No Company has entered into any contract or agreement (other than a contract or agreement entered into in
connection with the purchase or lease of fixed assets that prohibits Liens on such fixed assets) that exists on or after the Closing Date that would prohibit the Administrative Agent or the Lenders from acquiring a Lien on, or a collateral
assignment of, any of the property or assets of any Company, except as permitted by Section 5.9 hereof. 
 Section 6.7. Tax
Returns. All federal, state, provincial and local tax returns and other reports required by law to be filed in respect of the income, business, properties and employees of each Company have been filed and all taxes, assessments, fees and other
governmental charges that are due and payable have been paid, except (i) as otherwise permitted herein, (ii) taxes that are being contested in good faith by appropriate proceedings and for which adequate reserves have been set aside on the
books in accordance with GAAP, or (iii) if the failure to file such reports or pay such taxes could not reasonably be expected to have a Material Adverse Effect or result in a material federal tax Lien. The provision for taxes on the books of
each Company comports with the requirements of GAAP for all years not closed by applicable statutes and for the current fiscal year. 

Section 6.8. Environmental Laws. Each Company is in compliance with all Environmental Laws, including, without limitation, all
Environmental Laws in all jurisdictions in which any Company owns or operates, or has owned or operated, a facility or site, arranges or has arranged for disposal or treatment of hazardous substances, solid waste or other wastes, accepts or has
accepted for transport any hazardous substances, solid waste or other wastes or holds or has held any interest in real property or otherwise, except for such noncompliance which could not reasonably be expected to have a Material Adverse Effect. As
of the Closing Date and as of each date on which any Loan is made or Letter of Credit is issued, no litigation or proceeding arising under, relating to or in connection with any Environmental Law or Environmental Permit is pending or, to the best
knowledge of each Company, threatened, against any Company. No release, threatened release or disposal of hazardous waste, solid waste or 

  
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 other wastes is occurring, or has occurred (other than those that are currently being remediated in
accordance with Environmental Laws), on, under or to any real property in which any Company holds any interest or performs any of its operations, in violation of any Environmental Law, except as could not reasonably be expected to have a Material
Adverse Effect. As used in this Section 6.8, “litigation or proceeding” means any demand, claim, notice, suit, suit in equity, action, administrative action, investigation or inquiry whether brought by any Governmental Authority or
private Person, or otherwise. 
 Section 6.9. Locations. As of the Closing Date, the Credit Parties have places of business or
maintain their Accounts and Equipment at the locations (including third party locations) set forth on Schedule 6.9 hereto, and each Credit Party’s chief executive office is set forth on Schedule 6.9 hereto. Schedule 6.9
hereto further specifies whether each location, as of the Closing Date, (a) is owned by the Credit Parties, or (b) is leased by a Credit Party from a third party, and, if leased by a Credit Party from a third party, if a Landlord’s
Waiver has been requested. As of the Closing Date, Schedule 6.9 hereto correctly identifies the name and address of each third party location where assets of the Credit Parties are located. 

Section 6.10. Continued Business. As of the Closing Date and as of each date on which any Loan is made or Letter of Credit is
issued, there exists no actual, pending, or, to the Borrower’s knowledge, any threatened termination, cancellation or limitation of, or any modification or change in the business relationship of any Company and any customer or supplier, or any
group of customers or suppliers, whose purchases or supplies, individually or in the aggregate, are material to the business of any Company, and there exists no present condition or state of facts or circumstances that would have a Material Adverse
Effect or prevent a Company from conducting such business or the transactions contemplated by this Agreement in substantially the same manner in which it was previously conducted. 

Section 6.11. Employee Benefits Plans. 

(a) Schedule 6.11 hereto identifies each ERISA Plan that is subject to Title IV of ERISA as of the Closing Date. 

(b) Except as could not reasonably be expected to have a Material Adverse Effect or result in a Lien on the assets of any Credit Party: 

(i) no ERISA Event has occurred or is expected to occur with respect to an ERISA Plan; 

(ii) full payment has been made of all amounts that a Controlled Group member is required, under applicable Law or under the
governing documents, to have paid as a contribution to or a benefit under each ERISA Plan; 
 (iii) the liability of each
Controlled Group member with respect to each ERISA Plan has been fully funded based upon reasonable and proper actuarial assumptions, has been fully insured, or has been fully reserved for on its financial statements; 

  
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 (iv) with respect to each ERISA Plan that is intended to be qualified under
Code Section 401(a), 
 (A) the ERISA Plan and any associated trust operationally comply with the applicable
requirements of Code Section 401(a), 
 (B) the ERISA Plan and any associated trust have been amended to comply with all
such requirements as currently in effect, other than those requirements for which a retroactive amendment can be made within the “remedial amendment period” available under Code Section 401(b) (as extended under Treasury Regulations
and other Treasury pronouncements upon which taxpayers may rely), 
 (C) the ERISA Plan and any associated trust (1) is
entitled to rely on a favorable opinion letter issued by the IRS, or (2) if permitted under rules then in effect as adopted by the IRS, has received a favorable determination letter from the IRS, stating that the ERISA Plan qualifies under Code
Section 401(a), that the associated trust qualifies under Code Section 501(a) and, if applicable, that any cash or deferred arrangement under the ERISA Plan qualifies under Code Section 401(k), unless the ERISA Plan was first adopted
at a time for which the above-described “remedial amendment period” has not yet expired; 
 (D) the ERISA Plan
currently satisfies the requirements of Code Section 410(b), without regard to any retroactive amendment that may be made within the above-described “remedial amendment period”; and 

(E) no contribution made to the ERISA Plan is subject to an excise tax under Code Section 4972. 

(v) With respect to any Pension Plan, the “accumulated benefit obligation” of Controlled Group members with respect to the Pension
Plan (as determined in accordance with Statement of Accounting Standards No. 87, “Employers’ Accounting for Pensions”) does not exceed the fair market value of Pension Plan assets. 

Section 6.12. Consents or Approvals. As of the Closing Date and as of each date on which any Loan is made or Letter of Credit is
issued, no consent, approval or authorization of, or filing, registration or qualification with, any Governmental Authority or any other Person is required to be obtained or completed by any Company in connection with the execution, delivery or
performance of any of the Loan Documents, that has not already been obtained or completed (other than the filing of U.C.C. financing statements and the Intellectual Property Security Agreement). 

  
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 Section 6.13. Solvency. The Borrower has received consideration that is the
reasonably equivalent value of the obligations and liabilities that the Borrower has incurred to the Administrative Agent and the Lenders. The Borrower is not insolvent as defined in any applicable state, federal or relevant foreign statute, nor
will the Borrower be rendered insolvent by the execution and delivery of the Loan Documents to the Administrative Agent and the Lenders. The Borrower is not engaged or about to engage in any business or transaction for which the assets retained by
it are or will be an unreasonably small amount of capital, taking into consideration the obligations to the Administrative Agent and the Lenders incurred hereunder. The Borrower does not intend to, nor does it believe that it will, incur debts
beyond its ability to pay such debts as they mature. 
 Section 6.14. Financial Statements. The audited Consolidated financial
statements of the Borrower, for the fiscal year ended December 31, 2016 and the unaudited Consolidated financial statements of the Borrower for the Quarterly Reporting Period ended July 1, 2017, furnished to the Administrative Agent and
the Lenders, have been prepared in accordance with GAAP, and fairly present in all material respects the financial condition of the Companies as of the dates of such financial statements and the results of their operations for the periods then
ending. Since the dates of such statements, there has been no change in any Company’s financial condition, properties or business or any change in any Company’s accounting procedures that could reasonably be expected to result in a
Material Adverse Effect. 
 Section 6.15. Regulations. No Company is engaged principally or as one of its important activities,
in the business of extending credit for the purpose of purchasing or carrying any “margin stock” (within the meaning of Regulation U of the Board of Governors of the Federal Reserve System of the United States). Neither the granting of any
Loan (or any conversion thereof) or Letter of Credit nor the use of the proceeds of any Loan or Letter of Credit will violate, or be inconsistent with, the provisions of Regulation T, U or X or any other Regulation of such Board of Governors. 

Section 6.16. Material Agreements. Except as disclosed on Schedule 6.16 hereto, as of the Closing Date, no Company is a
party to any (a) debt instrument (excluding the Loan Documents); (b) lease (capital, operating or otherwise), whether as lessee or lessor thereunder; (c) contract, commitment, agreement, or other arrangement involving the purchase or
sale of any inventory by it, or the license of any right to or by it; (d) contract, commitment, agreement, or other arrangement with any of its “Affiliates” (as such term is defined in the Exchange Act) other than a Company;
(e) management or employment contract or contract for personal services with any of its Affiliates that is not otherwise terminable at will or on less than ninety (90) days’ notice without liability; (f) collective bargaining
agreement; or (g) other contract, agreement, understanding, or arrangement with a third party; that, as to subparts (a) through (g) above, if violated, breached, or terminated for any reason, would have or would be reasonably expected
to have a Material Adverse Effect. 
 Section 6.17. Intellectual Property. Each Company owns, or has the right to use, all of
the patents, patent applications, industrial designs, designs, trademarks, service marks, copyrights and licenses, and rights with respect to the foregoing, necessary for the conduct of its business without any known conflict with the rights of
others, except as could not reasonably be expected to result in a Material Adverse Effect. Schedule 6.17 hereto sets forth all federally registered patents, trademarks, copyrights, service marks and license agreements owned by each Credit
Party as of the Closing Date. 

  
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 Section 6.18. Insurance. Each Company maintains with financially sound and
reputable insurers insurance with coverage and limits as required by law and as is customary with Persons engaged in the same businesses as the Companies. 

Section 6.19. Deposit Accounts and Securities Accounts. The Borrower has provided to the Administrative Agent a list of all banks,
other financial institutions and Securities Intermediaries at which the Borrower and any Guarantor of Payment maintain Deposit Accounts or Securities Accounts as of the Closing Date, which list correctly identifies the name, address and telephone
number of each such financial institution or Securities Intermediary, the name in which the account is held, a description of the purpose of the account, and the complete account number therefor, and, in the case of Deposit Accounts, whether such
Deposit Accounts are Excluded Deposit Accounts. 
 Section 6.20. Accurate and Complete Statements. Neither the Loan Documents
nor any written statement made by any Company in connection with any of the Loan Documents contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements contained therein or in the Loan Documents
not misleading. After due inquiry by the Borrower, there is no known fact that any Company has not disclosed to the Administrative Agent and the Lenders that has or is likely to have a Material Adverse Effect. 

Section 6.21. Investment Company; Other Restrictions. No Company is (a) an “investment company” or a company
“controlled” by an “investment company” within the meaning of the Investment Company Act of 1940, as amended, or (b) subject to any foreign, federal, state or local statute or regulation limiting its ability to incur
Indebtedness. 

Section 
6.22. Beneficial Ownership. As of the Third Amendment Effective Date, the information included in the Beneficial Ownership Certification, if applicable, is true and correct in all respects.

 Section 6.226.23. Defaults. No Default or Event of Default exists, nor will
any begin to exist immediately after the execution and delivery hereof. 
 ARTICLE VII. SECURITY 

Section 7.1. Security Interest in Collateral. In consideration of and as security for the full and complete payment of all of the
Secured Obligations, the Borrower hereby grants to the Administrative Agent, for the benefit of the Lenders (and Affiliates thereof that hold Secured Obligations), a security interest in the Collateral. 

Section 7.2. Cash Management System. The Borrower shall establish and maintain, until the payment in full of the Secured
Obligations and the termination of the Commitment, the cash management systems described below: 

  
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 (a) Lockbox. Within five Business Days after the Closing Date, the Borrowing Base
Companies shall (i) establish lockbox arrangements with the Administrative Agent, on behalf of the Lenders (one or more lockboxes hereunder collectively referred to herein as the “Lockbox”), which shall be governed by the Master
Agreement, and, within ten Business Days after the Closing Date, shall request in writing and otherwise take such reasonable steps to ensure that each Account Debtor forward all Collections paid by cash or check from such Account Debtor directly to
the Lockbox (if any Borrowing Base Companies neglect or refuse to notify any Account Debtor to remit all such Collections to the Lockbox, the Administrative Agent shall be entitled to make such notification), (ii) hold in trust for the
Administrative Agent, as fiduciary for the Administrative Agent, all such Collections received by the Borrowing Base Companies, and (iii) not commingle any such Collections with any other funds or property of the Borrowing Base Companies, but
will hold such funds separate and apart in trust and as fiduciary for the Administrative Agent until deposit is made into the Concentration Account. 

(b) Concentration Account. On or before the Closing Date, the Borrower shall have established a Concentration Account with the
Administrative Agent. All moneys received by Credit Parties, including Collections from services rendered or from Account Debtors of the Borrowing Base Companies sent to the Lockbox, shall be deposited directly on a daily basis, and in any event no
later than the first Business Day after the date of receipt thereof, into the Concentration Account in the identical form in which such moneys were received and Collections were made (except for any necessary endorsements) whether by cash or check.
All amounts deposited in the Concentration Account from the Lockbox or any other source shall be under the sole and exclusive control of the Administrative Agent. No Credit Party shall have any interest in or control over such funds; provided that,
(i) during a Cash Dominion Period, the Administrative Agent shall transfer funds from the Concentration Account to the Cash Collateral Account on a daily basis, and (ii) other than during a Cash Dominion Period, the Administrative Agent
shall transfer funds from the Concentration Account to the Operating Account on a daily basis, for use by the Borrower, in its sole discretion, for purposes not prohibited by this Agreement. The Concentration Account shall not be subject to any
deduction, set off, banker’s lien or any other right in favor of any Person other than the Administrative Agent. 
 (c) Cash
Collateral Accounts. On or before the Closing Date, the Borrower shall have established one or more Cash Collateral Accounts with the Administrative Agent, on behalf of the Lenders. During a Cash Dominion Period, all Collections from sales of
services rendered or from Account Debtors deposited in the Lockbox or the Concentration Account shall be deposited on a daily basis, and in any event no later than the first Business Day after the date of receipt thereof, into the Cash Collateral
Accounts in the identical form in which such Collections were made (except for any necessary endorsements) whether by cash, check or other form of payment. All amounts deposited in Cash Collateral Accounts from the Lockbox, the Concentration Account
or any other source shall be under the sole and exclusive control of the Administrative Agent. No Credit Party shall have any interest in or control over such funds. The Cash Collateral Account shall not be subject to any deduction, set off,
banker’s lien or any other right in favor of any Person other than the Administrative Agent. 

  
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 (d) Operating Accounts. The Borrower shall maintain, in its name, one or more
Operating Accounts with the Administrative Agent, into which account the Administrative Agent shall, (i) from time to time, deposit proceeds of the Revolving Loans made to the Borrower for use by the Companies in accordance with the provisions
of Section 5.18 hereof, and (ii) other than during a Cash Dominion Period, transfer funds from the Concentration Account on a daily basis for use by the Credit Parties in their sole discretion. Unless otherwise agreed by the Administrative
Agent and the Borrower, any Revolving Loan requested by the Borrower and made under this Agreement shall be deposited into the Operating Account. During a Cash Dominion Period, the Borrower shall not accumulate or maintain cash in the Operating
Account or payroll or other such accounts, as of any date of determination, in excess of any checks outstanding against the Controlled Disbursement Account (or Controlled Disbursement Accounts) and other deposit accounts approved by the
Administrative Agent (such as medical benefit accounts, flexible spending accounts and automated clearing house accounts) as of that date, and amounts necessary to meet minimum balance requirements. 

(e) Controlled Disbursement Accounts. The Borrower shall maintain, in the name of the Borrower, a Controlled Disbursement Account with
the Administrative Agent, on behalf of the Lenders. The Borrower may maintain more than one Controlled Disbursement Account. The Borrower shall base its requests for Revolving Loans on, among other things, the daily balance of the Controlled
Disbursement Account (or Controlled Disbursement Accounts). The Borrower shall not, and shall not cause or permit any Company, to maintain cash in any Controlled Disbursement Account, as of any date of determination, in excess of checks outstanding
against such account as of that date, and amounts necessary to meet minimum balance requirements. 
 (f) Lockbox and Security
Accounts. The Lockbox established pursuant to the Lockbox agreement and the Cash Collateral Accounts, the Operating Account and the Controlled Disbursement Accounts shall be Security Accounts, with all cash, checks and other similar items of
payment in such accounts securing payment of the Secured Obligations. 
 (g) Costs of Collection. All reasonable costs of collection
of the Accounts of the Credit Parties, including out-of-pocket expenses, administrative and record-keeping costs, reasonable attorneys’ fees, and all service charges and costs related to the establishment and maintenance of the Security
Accounts shall be the sole responsibility of the Borrower, whether the same are incurred by the Administrative Agent or the Credit Parties. The Credit Parties hereby indemnify and hold the Administrative Agent harmless from and against any loss or
damage with respect to any deposits made in the Security Accounts that are dishonored or returned for any reason. If any deposits are dishonored or returned unpaid for any reason, the Administrative Agent, in its sole discretion, may charge the
amount thereof against the Cash Collateral Account or any other Security Account or other Deposit Account (that is not an Excluded Deposit Account) of one or more Credit Parties. The Administrative Agent shall not be liable for any loss or damage
resulting from any error, omission, failure or negligence on the part of the Administrative Agent, except losses or damages resulting from the Administrative Agent’s own gross negligence or willful misconduct, as determined by a final judgment
of a court of competent jurisdiction. 
 (h) Return of Funds. Upon the payment in full of the Secured Obligations (other than
continuing indemnification obligations and any Bank Product Obligations) and the termination of the Commitment hereunder, (i) the Administrative Agent’s security interests and other rights in funds in the Security Accounts shall terminate,
(ii) all rights to such funds shall revert to the Credit Parties, as applicable, and (iii) the Administrative Agent will, at the Borrower’s expense, take such steps as the Borrower may reasonably request to evidence the termination of
such security interests and to effect the return to the Credit Parties of such funds. 

  
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 (i) Attorney-in-Fact to Endorse Documents. The Administrative Agent, or the
Administrative Agent’s designated agent, is hereby constituted and appointed attorney-in-fact for each Credit Party with authority and power to endorse after the occurrence and during the continuance of an Event of Default or a Cash Dominion
Period, any and all instruments, documents, and chattel paper upon the failure of such Credit Party to do so. Such authority and power, being coupled with an interest, shall be (i) irrevocable until all of the Secured Obligations are paid,
(ii) exercisable by the Administrative Agent at any time and without any request upon any Credit Party by the Administrative Agent to so endorse, and (iii) exercisable in the name of the Administrative Agent or any Credit Party. Each
Credit Party hereby waives presentment, demand, notice of dishonor, protest, notice of protest, and any and all other similar notices with respect thereto, regardless of the form of any endorsement thereof. The Administrative Agent shall not be
bound or obligated to take any action to preserve any rights therein against prior parties thereto. 
 (j) Foreign Deposit Accounts.
Anything to the contrary contained elsewhere in this Section 7.2 notwithstanding, the Borrower may maintain and fund Foreign Deposit Accounts and such Foreign Deposit Accounts shall not be subject to subsections (a) through (i) above
other than as may be needed to comply with Section 5.30 hereof. 
 Section 7.3. Collections and Receipt of Proceeds by
Administrative Agent. Each Credit Party hereby constitutes and appoints the Administrative Agent, or the Administrative Agent’s designated agent, as the Borrower’s attorney-in-fact to exercise, at any time, all or any of the following
powers which, being coupled with an interest, shall be irrevocable until the complete and full payment of all of the Secured Obligations: 

(a) after the occurrence and during the continuance of an Event of Default or a Cash Dominion Period, to receive, retain, acquire, take,
endorse, assign, deliver, accept, and deposit, in the name of the Administrative Agent or such Credit Party, any and all of such Credit Party’s cash, instruments, chattel paper, documents, Proceeds of Accounts, Proceeds of services rendered,
collection of Accounts, and any other writings relating to any of the Collateral. Each Credit Party hereby waives presentment, demand, notice of dishonor, protest, notice of protest, and any and all other similar notices with respect thereto,
regardless of the form of any endorsement thereof. The Administrative Agent shall not be bound or obligated to take any action to preserve any rights therein against prior parties thereto; 

(b) to transmit to Account Debtors, on any or all of such Credit Party’s Accounts, after the occurrence and during the continuance of an
Event of Default, notice of assignment to the Administrative Agent, for the benefit of the Lenders, thereof and the security interest therein, and to request from such Account Debtors at any time, in the name of the Administrative Agent or such
Credit Party, information concerning the Borrower’s Accounts and the amounts owing thereon; 

  
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 (c) after the occurrence and during the continuance of an Event of Default, to transmit to
purchasers of any or all of such Credit Party’s services, notice of the Administrative Agent’s security interest therein, and to request from such purchasers at any time, in the name of the Administrative Agent or such Credit Party,
information concerning the services rendered by such Credit Party and the amounts owing thereon by such purchasers; 
 (d) after the
occurrence and during the continuance of an Event of Default, to notify and require Account Debtors on such Credit Party’s Accounts and purchasers of such Credit Party’s services to make payment of their indebtedness directly to the
Administrative Agent; 
 (e) after the occurrence and during the continuance of an Event of Default, ]to enter into or assent to such
amendment, compromise, extension, release or other modification of any kind of, or substitution for, the Accounts, or any thereof, as the Administrative Agent, in its sole discretion, may deem to be advisable; 

(f) after the occurrence and during the continuance of an Event of Default, to enforce the Accounts or any thereof, or any other Collateral, by
suit or otherwise, to maintain any such suit or other proceeding in the name of the Administrative Agent or one or more Credit Parties, and to withdraw any such suit or other proceeding. The Credit Parties agree to lend every assistance requested by
the Administrative Agent in respect of the foregoing, all at no cost or expense to the Administrative Agent and including, without limitation, the furnishing of such witnesses and of such records and other writings as the Administrative Agent may
require in connection with making legal proof of any Account. The Credit Parties agree to reimburse the Administrative Agent in full for all court costs and attorneys’ fees and every other cost, expense or liability, if any, incurred or paid by
the Administrative Agent in connection with the foregoing, which obligation of such Credit Parties shall constitute Obligations, shall be secured by the Collateral and shall bear interest, until paid, at the Default Rate; 

(g) after the occurrence and during the continuance of an Event of Default or a Cash Dominion Period, to take or bring, in the name of the
Administrative Agent or such Credit Party, all steps, actions, suits, or proceedings deemed by the Administrative Agent necessary or desirable to effect the receipt, enforcement, and collection of the Collateral; and 

(h) after the occurrence and during the continuance of an Event of Default or a Cash Dominion Period, to accept all collections in any form
relating to the Collateral, including remittances that may reflect deductions, and to deposit the same into the Cash Collateral Accounts or, at the option of the Administrative Agent, to apply them as a payment against the Loans or any other Secured
Obligations in accordance with this Agreement. 
 Section 7.4. Administrative Agent’s Authority Under Pledged Notes. For
the better protection of the Administrative Agent and the Lenders hereunder, each Credit Party, as appropriate, has executed (or will execute, with respect to future Pledged Notes) an appropriate endorsement on (or separate from) each Pledged Note
and has deposited (or will deposit, with respect to future Pledged Notes) such Pledged Note with the Administrative Agent, for the benefit of the Lenders. Such Credit Party irrevocably authorizes and empowers the Administrative Agent, for the
benefit of the Lenders, to, during the occurrence and continuation 

  
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 of an Event of Default, (a) ask for, demand, collect and receive all payments of principal of and
interest on the Pledged Notes; (b) compromise and settle any dispute arising in respect of the foregoing; (c) execute and deliver vouchers, receipts and acquittances in full discharge of the foregoing; (d) exercise, in the
Administrative Agent’s discretion, any right, power or privilege granted to the holder of any Pledged Note by the provisions thereof including, without limitation, the right to demand security or to waive any default thereunder;
(e) endorse such Credit Party’s name to each check or other writing received by the Administrative Agent as a payment or other proceeds of or otherwise in connection with any Pledged Note; (f) enforce delivery and payment of the
principal and/or interest on the Pledged Notes, in each case by suit or otherwise as the Administrative Agent may desire; and (g) enforce the security, if any, for the Pledged Notes by instituting foreclosure proceedings, by conducting public
or other sales or otherwise, and to take all other steps as the Administrative Agent, in its discretion, may deem advisable in connection with the forgoing; provided, however, that nothing contained or implied herein or elsewhere shall obligate the
Administrative Agent to institute any action, suit or proceeding or to make or do any other act or thing contemplated by this Section 7.4 or prohibit the Administrative Agent from settling, withdrawing or dismissing any action, suit or
proceeding or require the Administrative Agent to preserve any other right of any kind in respect of the Pledged Notes and the security, if any, therefor. 

Section 7.5. Commercial Tort Claims. If any Credit Party shall at any time hold or acquire a Commercial Tort Claim with a
reasonably estimated value of more than Two Hundred Fifty Thousand Dollars ($250,000), such Credit Party shall promptly notify the Administrative Agent thereof in a writing signed by such Credit Party, that sets forth the details thereof and grants
to the Administrative Agent (for the benefit of the Lenders) a Lien thereon and on the Proceeds thereof, all upon the terms of this Agreement, with such writing to be prepared by and in form and substance reasonably satisfactory to the
Administrative Agent. 
 ARTICLE VIII. EVENTS OF DEFAULT 

Any of the following specified events shall constitute an Event of Default (each an “Event of Default”): 

Section 8.1. Payments. If (a) the interest on any Loan, any commitment or other fee, or any other Obligation not listed in
subpart (b) hereof, shall not be paid in full within five days when due and payable, or (b) the principal of any Loan, any reimbursement obligation under any Letter of Credit that has been drawn, or any amount owing pursuant to
Section 2.11 shall not be paid in full when due and payable. 
 Section 8.2. Special Covenants. If any Company shall fail
or omit to perform and observe Section 5.7, 5.8, 5.9, 5.11, 5.12, 5.13, 5.15, 5.23, 5.25 or 5.30 hereof. 
 Section 8.3. Other
Covenants. 
 (a) If any Company shall fail or omit to perform and observe Section 5.3 or 5.4, and that Default shall not have been
fully corrected within five days after the earlier of (i) any Financial Officer of such Company becomes aware of the occurrence thereof, or (ii) the giving of written notice thereof to the Borrower by the Administrative Agent that the
specified Default is to be remedied. 

  
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 (b) If any Company shall fail or omit to perform or observe any agreement or other provision
(other than those referred to in Section 8.1, 8.2 or 8.3(a) hereof) contained or referred to in this Agreement or any Related Writing that is on such Company’s part to be complied with, and that Default shall not have been fully corrected
within thirty (30) days after the earlier of (i) any Financial Officer of such Company becomes aware of the occurrence thereof, or (ii) the giving of written notice thereof to the Borrower by the Administrative Agent or the Required
Lenders that the specified Default is to be remedied. 
 Section 8.4. Representations and Warranties. If any representation,
warranty or statement made in or pursuant to this Agreement or any other Related Writing or any other material information furnished by any Company to the Administrative Agent or the Lenders, or any thereof, shall have been false or erroneous when
made or deemed to have been made in any material respect (except that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality or Material Adverse Effect in the
text thereof). 
 Section 8.5. Cross Default. If any Company shall default in the payment of principal or interest due and owing
under any Material Indebtedness Agreement beyond any period of grace provided with respect thereto or in the performance or observance of any other agreement, term or condition contained in any agreement under which such obligation is created, if
the effect of such default is to allow the acceleration of the maturity of such Indebtedness or to permit the holder thereof to cause such Indebtedness to become due prior to its stated maturity. 

Section 8.6. ERISA Default. The occurrence of one or more ERISA Events that the Required Lenders determine could reasonably be
expected to have a Material Adverse Effect. 
 Section 8.7. Change in Control. If any Change in Control shall occur. 

Section 8.8. Judgments. There is entered against any Company: 

(a) a final judgment or order for the payment of money by a court of competent jurisdiction, that remains unpaid or unstayed and undischarged
for a period (during which execution shall not be effectively stayed) of thirty (30) days after the date on which the right to appeal has expired, provided that such occurrence shall constitute an Event of Default only if the aggregate of all
such judgments for all such Companies (less any amount that will be covered by the proceeds of insurance), shall exceed Three Million Dollars ($3,000,000), or, during a Cash Dominion Period, Revolving Credit Availability during such period of thirty
(30) days. 
 (b) any one or more non-monetary final judgments that are not covered by insurance, or, if covered by insurance, for which
the insurance company has not agreed to or acknowledged coverage, and that, in either case, the Required Lenders reasonably determine have, or could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect and, in
either case, (i) enforcement proceedings are commenced by the prevailing party or any creditor upon such judgment or order, or (ii) there is a period of five consecutive Business Days during which a stay of enforcement of such judgment, by
reason of a pending appeal or otherwise, is not in effect. 

  
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 Section 8.9. Material Adverse Change. Any condition or event that has an
Material Adverse Effect shall have occurred. 
 Section 8.10. Security. If any Lien granted in this Agreement or any other Loan
Document in favor of the Administrative Agent, for the benefit of the Lenders, shall be determined to be (a) void, voidable or invalid, or is subordinated or not otherwise given the priority contemplated by this Agreement and the Borrower (or
the appropriate Credit Party) has failed to promptly execute appropriate documents to correct such matters, or (b) unperfected as to any material amount of collateral (as determined by the Administrative Agent, in its reasonable discretion) and
the Borrower (or the appropriate Credit Party) has failed to promptly execute appropriate documents to correct such matters. 

Section 8.11. Validity of Loan Documents. If (a) any material provision, in the sole opinion of the Administrative Agent, of
any Loan Document shall at any time cease to be valid, binding and enforceable against any Credit Party; (b) the validity, binding effect or enforceability of any Loan Document against any Credit Party shall be contested by any Credit Party;
(c) any Credit Party shall deny that it has any or further liability or obligation under any Loan Document; or (d) any Loan Document shall be terminated, invalidated or set aside, or be declared ineffective or inoperative or in any way
cease to give or provide to the Administrative Agent and the Lenders the benefits purported to be created thereby. 
 Section 8.12.
Solvency. If any Company (other than a Dormant Subsidiary or an Immaterial Subsidiary that is not a Credit Party) shall (a) except as permitted pursuant to Section 5.12 hereof, discontinue business; (b) generally not pay its debts
as such debts become due; (c) make a general assignment for the benefit of creditors; (d) apply for or consent to the appointment of an interim receiver, a receiver, a receiver and manager, an administrator, a sequestrator, a monitor, a
custodian, a trustee, an interim trustee, a liquidator, an agent or any other similar official of all or a substantial part of its assets or of such Company; (e) be adjudicated a debtor or insolvent or have entered against it an order for
relief under the Bankruptcy Code, or under any other bankruptcy insolvency, liquidation, winding-up, corporate or similar statute or Law, foreign, federal, state or provincial, in any applicable jurisdiction, now or hereafter existing, as any of the
foregoing may be amended from time to time, or other applicable statute for jurisdictions outside of the United States, as the case may be; (f) file a voluntary petition under the Bankruptcy Code or seek relief under any bankruptcy or
insolvency or analogous Law in any jurisdiction outside of the United States, or file a proposal or notice of intention to file such petition; (g) have an involuntary proceeding under the Bankruptcy Code filed against it and the same shall not
be controverted within ten (10) days, or shall continue undismissed for a period of sixty (60) days from commencement of such proceeding or case; (h) file a petition, an answer, an application or a proposal seeking reorganization or
an arrangement with creditors or seeking to take advantage of any other Law (whether federal, provincial or state, or, if applicable, other jurisdiction) relating to relief of debtors, or admit (by 

  
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 answer, by default or otherwise) the material allegations of a petition filed against it in any bankruptcy,
reorganization, insolvency or other proceeding (whether federal, provincial or state, or, if applicable, other jurisdiction) relating to relief of debtors; (i) suffer or permit to continue unstayed and in effect for thirty (30) consecutive
days any judgment, decree or order entered by a court of competent jurisdiction, that approves a petition or an application or a proposal seeking its reorganization or appoints an interim receiver, a receiver and manager, an administrator,
custodian, trustee, interim trustee or liquidator of all or a substantial part of its assets, or of such Company; (j) have an administrative receiver appointed over the whole or substantially the whole of its assets, or of such Company; or
(k) have a moratorium declared in respect of any of its Indebtedness, or any analogous procedure or step is taken in any jurisdiction. 

ARTICLE IX. REMEDIES UPON DEFAULT 

Notwithstanding any contrary provision or inference herein or elsewhere: 

Section 9.1. Optional Defaults. If any Event of Default referred to in Section 8.1, 8.2, 8.3, 8.4, 8.5, 8.6, 8.7, 8.8, 8.9,
8.10 or 8.11 hereof shall occur, the Administrative Agent may, with the consent of the Required Lenders, and shall, at the written request of the Required Lenders, give written notice to the Borrower to: 

(a) terminate the Commitment, if not previously terminated, and, immediately upon such election, the obligations of the Lenders, and each
thereof, to make any further Loan, and the obligation of the Issuing Lender to issue any Letter of Credit, immediately shall be terminated; and/or 

(b) accelerate the maturity of all of the Obligations (if the Obligations are not already due and payable), whereupon all of the Obligations
shall become and thereafter be immediately due and payable in full without any presentment or demand and without any further or other notice of any kind, all of which are hereby waived by the Borrower. 

Section 9.2. Automatic Defaults. If any Event of Default referred to in Section 8.12 hereof shall occur: 

(a) all of the Commitment shall automatically and immediately terminate, if not previously terminated, and no Lender thereafter shall be under
any obligation to grant any further Loan, nor shall the Issuing Lender be obligated to issue any Letter of Credit; and 
 (b) the principal
of and interest then outstanding on all of the Loans, and all of the other Obligations, shall thereupon become and thereafter be immediately due and payable in full (if the Obligations are not already due and payable), all without any presentment,
demand or notice of any kind, which are hereby waived by the Borrower. 

  
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 Section 9.3. Letters of Credit. If the maturity of the Obligations shall be
accelerated pursuant to Section 9.1 or 9.2 hereof, the Borrower shall immediately deposit with the Administrative Agent, as security for the obligations of the Borrower and any other Company to reimburse the Administrative Agent and the
Revolving Lenders for any then outstanding Letters of Credit, cash equal to one hundred three percent (103%) of the sum of the aggregate undrawn balance of any then outstanding Letters of Credit. The Administrative Agent and the Lenders are
hereby authorized, at their option, to deduct any and all such amounts from any deposit balances then owing by any Lender (or any Affiliate of such Lender, wherever located) to or for the credit or account of any Company (other than Excluded Deposit
Accounts), as security for the obligations of the Borrower and any Company to reimburse the Administrative Agent, the Issuing Lender and the Revolving Lenders for any then outstanding Letters of Credit. 

Section 9.4. Offsets. If there shall occur or exist any Event of Default referred to in Section 8.12 hereof or if the
maturity of the Obligations is accelerated pursuant to Section 9.1 or 9.2 hereof, each Lender shall have the right at any time to set off against, and to appropriate and apply toward the payment of, any and all of the Obligations then owing by
the Borrower or a Guarantor of Payment to such Lender (including, without limitation, any participation purchased or to be purchased pursuant to Section 2.2(b), 2.2(c) or 9.5 hereof), whether or not the same shall then have matured, any and all
deposit (general or special) balances and all other indebtedness then held or owing by such Lender (including, without limitation, by branches and agencies or any Affiliate of such Lender, wherever located) to or for the credit or account of the
Borrower or any Guarantor of Payment, all without notice to or demand upon the Borrower or any other Person, all such notices and demands being hereby expressly waived by the Borrower. Each Lender agrees to notify the Borrower and the Administrative
Agent promptly after any such set off and application (provided that the failure to give such notice shall not affect the validity of such set off and application). In the event that any Defaulting Lender shall exercise any such right of setoff,
(a) all amounts so set off shall be paid over immediately to the Administrative Agent for further application in accordance with the provisions of Section 11.11 hereof and, pending such payment, shall be segregated by such Defaulting
Lender from its other funds and deemed held in trust for the benefit of the Administrative Agent, the Issuing Lender, and the Lenders, and (b) the Defaulting Lender shall provide promptly to the Administrative Agent a statement describing in
reasonable detail the Obligations owing to such Defaulting Lender as to which it exercised such right of setoff. The rights of each Lender, the Issuing Lender and their respective Affiliates under this Section 9.4 are in addition to other
rights and remedies (including other rights of setoff) that such Lender, the Issuing Lender or their respective Affiliates may have. 

Section 9.5. Equalization Provisions. Each Lender agrees with the other Lenders that, if it at any time shall obtain any Advantage
over the other Lenders, or any thereof, in respect of the Obligations (except as to Swing Loans and Letters of Credit prior to the Administrative Agent’s giving of notice to participate and except under Article III hereof), it shall purchase
from the other Lenders, for cash and at par, such additional participation in the Obligations as shall be necessary to nullify such Advantage. If any such Advantage resulting in the purchase of an additional participation as aforesaid shall be
recovered in whole or in part from the Lender receiving such Advantage, each such purchase shall be rescinded, and the purchase price restored (but without interest unless the Lender receiving such Advantage is required to pay interest on such
Advantage to the Person recovering such Advantage from such Lender) ratably to the extent of the recovery. Each Lender further agrees with the other Lenders that if it at any time shall receive any payment for or on behalf of the Borrower (or
through any Guarantor of Payment) on 

  
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 any Indebtedness owing by the Borrower pursuant to this Agreement (whether by voluntary payment, by
realization upon security, by reason of offset of any deposit or other indebtedness, by counterclaim or cross-action, by the enforcement of any right under any Loan Document, or otherwise), it will apply such payment first to any and all Obligations
owing by the Borrower to that Lender (including, without limitation, any participation purchased or to be purchased pursuant to this Section 9.5 or any other section of this Agreement). Each Credit Party agrees that any Lender so purchasing a
participation from the other Lenders or any thereof pursuant to this Section 9.5 may exercise all of its rights of payment (including the right of set-off) with respect to such participation as fully as if such Lender were a direct creditor of
such Credit Party in the amount of such participation. 
 Section 9.6. Collateral. The Administrative Agent and the Lenders
shall at all times have the rights and remedies of a secured party under the U.C.C., in addition to the rights and remedies of a secured party provided elsewhere within this Agreement, in any other Related Writing executed by the Borrower or
otherwise provided in law or equity. Upon the occurrence and during the continuance of an Event of Default and at all times thereafter, the Administrative Agent may require the Borrower to assemble the collateral securing the Secured Obligations,
which the Borrower agrees to do, and make it available to the Administrative Agent and the Lenders at a reasonably convenient place to be designated by the Administrative Agent. The Administrative Agent may, with or without notice to or demand upon
the Borrower and with or without the aid of legal process, make use of such force as may be necessary to enter any premises where such collateral, or any thereof, may be found and to take possession thereof (including anything found in or on such
collateral that is not specifically described in this Agreement, each of which findings shall be considered to be an accession to and a part of such collateral) and for that purpose may pursue such collateral wherever the same may be found, without
liability for trespass or damage caused thereby to the Borrower. After any delivery or taking of possession of the collateral securing the Secured Obligations, or any portion thereof, pursuant to this Agreement, then, with or without resort to the
Borrower personally or any other Person or property, all of which the Borrower hereby waives, and upon such terms and in such manner as the Administrative Agent may deem advisable, the Administrative Agent, in its discretion, may sell, assign,
transfer and deliver any of such collateral at any time, or from time to time. No prior notice need be given to the Borrower or to any other Person in the case of any sale of such collateral that the Administrative Agent determines to be perishable
or to be declining speedily in value or that is customarily sold in any recognized market, but in any other case the Administrative Agent shall give the Borrower not fewer than ten days prior notice of either the time and place of any public sale of
such collateral or of the time after which any private sale or other intended disposition thereof is to be made. The Borrower waives advertisement of any such sale and (except to the extent specifically required by the preceding sentence) waives
notice of any kind in respect of any such sale. At any such public sale, the Administrative Agent or the Lenders may purchase such collateral, or any part thereof, free from any right of redemption, all of which rights the Borrower hereby waives and
releases. After deducting all Related Expenses, and after paying all claims, if any, secured by Liens having precedence over this Agreement, the Administrative Agent may apply the net proceeds of each such sale to or toward the payment of the
Secured Obligations, whether or not then due, as required by Section 9.8(b) hereof. Any excess, to the extent permitted by law, shall be paid to the Borrower, and the Borrower shall remain liable for any deficiency. In addition, the
Administrative Agent shall at all times have the right to obtain new collateral field audits or similar assessments of the collateral securing the Secured Obligations, the cost of which shall be paid by the Borrower. 

  
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 Section 9.7. Other Remedies. The remedies in this Article IX are in addition to,
and not in limitation of, any other right, power, privilege, or remedy, either in law, in equity, or otherwise, to which the Lenders may be entitled. The Administrative Agent shall exercise the rights under this Article IX and all other collection
efforts on behalf of the Lenders and no Lender shall act independently with respect thereto, except as otherwise specifically set forth in this Agreement. In addition, the Administrative Agent shall be entitled to exercise remedies, pursuant to the
Loan Documents, against collateral securing the Secured Obligations, on behalf of any Affiliate of a Lender that holds Secured Obligations, and no Affiliate of a Lender shall act independently with respect thereto, except as otherwise specifically
set forth in this Agreement. 
 Section 9.8. Application of Proceeds. 

(a) Payments Prior to Exercise of Remedies. Prior to the exercise by the Administrative Agent, on behalf of the Lenders, of remedies
under this Agreement or the other Loan Documents, all monies received by the Administrative Agent in connection with the Revolving Credit Commitment shall be applied, unless otherwise required by the terms of the other Loan Documents or by
applicable Law, to the Loans and Letters of Credit, as appropriate; provided that the Administrative Agent shall have the right at all times to apply any payment received from the Borrower first to the payment of all obligations (to the extent not
paid by the Borrower) incurred by the Administrative Agent pursuant to Sections 11.6 and 11.7 hereof and to the payment of Related Expenses. 

(b) Payments Subsequent to Exercise of Remedies. After the exercise by the Administrative Agent or the Required Lenders of remedies
under this Agreement or the other Loan Documents, all monies received by the Administrative Agent shall be applied, unless otherwise required by the terms of the other Loan Documents or by applicable Law, as follows: 

(i) first, to the payment of all costs, expenses and other amounts (to the extent not paid by the Borrower) incurred by the
Administrative Agent pursuant to Sections 11.6 and 11.7 hereof and to the payment of Related Expenses to the Administrative Agent; 

(ii) second, to the payment pro rata of (A) interest then accrued and payable on the outstanding Loans, (B) any fees
then accrued and payable to the Administrative Agent, (C) any fees then accrued and payable to the Issuing Lender or the holders of the Letter of Credit Commitment in respect of the Letter of Credit Exposure, (D) any commitment fees,
amendment fees and similar fees shared pro rata among the Lenders entitled thereto under this Agreement that are then accrued and payable, and (E) to the extent not paid by the Borrower, to the obligations incurred by the Lenders (other than
the Administrative Agent) pursuant to Sections 11.6 and 11.7 hereof; 

  
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 (iii) third, for payment of principal outstanding on the Loans and the
Letter of Credit Exposure, on a pro rata basis to the Lenders, based upon each such Lender’s Commitment Percentage, provided that the amounts payable in respect of the Letter of Credit Exposure shall be held and applied by the Administrative
Agent as security for the reimbursement obligations in respect thereof, and, if any Letter of Credit shall expire without being drawn, then the amount with respect to such Letter of Credit shall be distributed to the Lenders, on a pro rata basis in
accordance with this clause (iii); 
 (iv) fourth, for the payment of (A) the Indebtedness under any Hedge Agreement
with a Lender (or an entity that is an Affiliate of a then existing Lender), such amount to be based upon the net termination obligation of the Borrower under such Hedge Agreement, (B) the Bank Product Obligations owing to a Lender (or an
entity that is an Affiliate of a then existing Lender) under Bank Product Agreements, and (C) any remaining Secured Obligations; with such payment to be pro rata among (A), (B) and (C) of this subpart (iv); and 

(v) finally, any remaining surplus after all of the Secured Obligations have been paid in full, to the Borrower or to
whomsoever shall be lawfully entitled thereto. 
 Each Lender hereby agrees to promptly provide all information reasonably requested by the Administrative
Agent regarding any Bank Product Obligations owing to such Lender (or Affiliate of such Lender) or any Hedge Agreement entered into by a Company with such Lender (or Affiliate of such Lender), and each such Lender, on behalf of itself and any of its
Affiliates, hereby agrees to promptly provide notice to the Administrative Agent upon such Lender (or any of its Affiliates) entering into any such Hedge Agreement or cash management services agreement. 

ARTICLE X. THE ADMINISTRATIVE AGENT 

The Lenders authorize KeyBank and KeyBank hereby agrees to act as agent for the Lenders in respect of this Agreement upon the terms and
conditions set forth elsewhere in this Agreement, and upon the following terms and conditions: 
 Section 10.1. Appointment and
Authorization. 
 (a) General. Each Lender hereby irrevocably appoints and authorizes the Administrative Agent to take such action
as agent on its behalf and to exercise such powers hereunder as are delegated to the Administrative Agent by the terms hereof, together with such powers as are reasonably incidental thereto. Neither the Administrative Agent nor any of its
Affiliates, directors, officers, attorneys or employees shall (i) be liable for any action taken or omitted to be taken by it or them hereunder or in connection herewith, except for its or their own gross negligence or willful misconduct (as
determined by a final non-appealable judgment of a court of competent jurisdiction), or be responsible in any manner to any of the Lenders for the effectiveness, enforceability, genuineness, validity or due execution of this Agreement or any other
Loan Documents, (ii) be under any obligation to any Lender to ascertain or to inquire as to the performance or observance of any of the terms, covenants or conditions hereof or thereof on the part of the Borrower or any other Company, or the
financial condition of the Borrower or any 

  
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 other Company, or (iii) be liable to any of the Companies for consequential damages resulting from any
breach of contract, tort or other wrong in connection with the negotiation, documentation, administration or collection of the Loans or Letters of Credit or any of the Loan Documents. Notwithstanding any provision to the contrary contained in this
Agreement or in any other Loan Document, the Administrative Agent shall not have any duty or responsibility except those expressly set forth herein, nor shall the Administrative Agent have or be deemed to have any fiduciary relationship with any
Lender or participant, and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or any other Loan Document or otherwise exist against the Administrative Agent. Without limiting the
generality of the foregoing sentence, the use of the term “agent” herein and in other Loan Documents with reference to the Administrative Agent is not intended to connote any fiduciary or other implied (or express) obligations arising
under agency doctrine of any applicable Law. Instead, such term is used merely as a matter of market custom, and is intended to create or reflect only an administrative relationship between independent contracting parties. The provisions of this
Article X are solely for the benefit of the Administrative Agent and the Lenders, and neither the Borrower nor any of the Credit Parties shall have rights as a third-party beneficiary of any of such provisions. 

(b) Bank Products and Hedging Products. Each Lender that is providing Bank Products or products in connection with a Hedge Agreement (or
whose Affiliate is providing such products) hereby irrevocably authorizes the Administrative Agent to take such action as agent on its behalf (and its Affiliate’s behalf) with respect to the collateral securing the Secured Obligations and the
realization of payments with respect thereto pursuant to Section 9.8(b)(iii) hereof. The Borrower and each Lender agree that the indemnification and reimbursement provisions of this Agreement shall be equally applicable to the actions of the
Administrative Agent pursuant to this subsection (b). Each Lender hereby represents and warrants to the Administrative Agent that it has the authority to authorize the Administrative Agent as set forth above. 

Section 10.2. Note Holders. The Administrative Agent may treat the payee of any Note as the holder thereof (or, if there is no
Note, the holder of the interest as reflected on the books and records of the Administrative Agent) until written notice of transfer shall have been filed with the Administrative Agent, signed by such payee and in form satisfactory to the
Administrative Agent (such transfer to have been made in accordance with Section 11.10 hereof). 
 Section 10.3. Consultation
With Counsel. The Administrative Agent may consult with legal counsel selected by the Administrative Agent and shall not be liable for any action taken or suffered in good faith by the Administrative Agent in accordance with the opinion of such
counsel. 
 Section 10.4. Documents. The Administrative Agent shall not be under any duty to examine into or pass upon the
validity, effectiveness, genuineness or value of any Loan Document or any other Related Writing furnished pursuant hereto or in connection herewith or the value of any collateral obtained hereunder, and the Administrative Agent shall be entitled to
assume that the same are valid, effective and genuine and what they purport to be. 

  
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 Section 10.5. Administrative Agent and Affiliates. KeyBank and its Affiliates
may make loans to, issue letters of credit for the account of, accept deposits from, acquire equity interests in and generally engage in any kind of banking, trust, financial advisory, underwriting or other business with the Companies and Affiliates
as though KeyBank were not the Administrative Agent hereunder and without notice to or consent of any Lender. Each Lender acknowledges that, pursuant to such activities, KeyBank or its Affiliates may receive information regarding any Company or any
Affiliate (including information that may be subject to confidentiality obligations in favor of such Company or such Company’s Affiliate) and acknowledge that the Administrative Agent shall be under no obligation to provide such information to
other Lenders. With respect to Loans and Letters of Credit (if any), KeyBank and its Affiliates shall have the same rights and powers under this Agreement as any other Lender and may exercise the same as though KeyBank were not the Administrative
Agent, and the terms “Lender” and “Lenders” include KeyBank and its Affiliates, to the extent applicable, in their individual capacities. 

Section 10.6. Knowledge or Notice of Default. The Administrative Agent shall not be deemed to have knowledge or notice of the
occurrence of any Default or Event of Default unless the Administrative Agent has received written notice from a Lender or the Borrower referring to this Agreement, describing such Default or Event of Default and stating that such notice is a
“notice of default”. In the event that the Administrative Agent receives such a notice, the Administrative Agent shall give notice thereof to the Lenders. The Administrative Agent shall take such action with respect to such Default or
Event of Default as shall be reasonably directed by the Required Lenders (or, if so specified by this Agreement, all Lenders); provided that, unless and until the Administrative Agent shall have received such directions, the Administrative Agent may
(but shall not be obligated to) take such action, or refrain from taking such action, with respect to such Default or Event of Default as it shall deem advisable, in its discretion, for the protection of the interests of the Lenders. 

Section 10.7. Action by Administrative Agent. Subject to the other terms and conditions hereof, so long as the Administrative
Agent shall be entitled, pursuant to Section 10.6 hereof, to assume that no Default or Event of Default shall have occurred and be continuing, the Administrative Agent shall be entitled to use its discretion with respect to exercising or
refraining from exercising any rights that may be vested in it by, or with respect to taking or refraining from taking any action or actions that it may be able to take under or in respect of, this Agreement. The Administrative Agent shall incur no
liability under or in respect of this Agreement by acting upon any notice, certificate, warranty or other paper or instrument believed by it to be genuine or authentic or to be signed by the proper party or parties, or with respect to anything that
it may do or refrain from doing in the reasonable exercise of its judgment, or that may seem to it to be necessary or desirable in the premises. Without limiting the foregoing, no Lender shall have any right of action whatsoever against the
Administrative Agent as a result of the Administrative Agent’s acting or refraining from acting hereunder in accordance with the instructions of the Required Lenders. 

Section 10.8. Release of Collateral or Guarantor of Payment. Each Lender hereby irrevocably authorize the Administrative Agent, at
its option and in its sole discretion, to release any Liens granted to the Administrative Agent by the Credit Parties on any Collateral (a) upon 

  
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the termination of all Commitments and satisfaction of all Secured Obligations (other than Bank Product Obligations); (b) constituting property being sold or disposed of if the Credit Party
disposing of such property certifies to the Administrative Agent that the sale or disposition is made in compliance with the terms of this Agreement (and the Administrative Agent may rely conclusively on any such certificate, without further
inquiry), and to the extent that the property being sold or disposed of constitutes one hundred percent (100%) of the equity interests of a Subsidiary, the Administrative Agent is authorized to release any Guaranty of Payment provided by such
Subsidiary; (c) constituting property leased to a Credit Party under a lease which has expired or been terminated in a transaction permitted under this Agreement; (d) as required to effect any sale or other disposition of such Collateral
in connection with any exercise of remedies of the Administrative Agent and the Lenders pursuant to Article IX; or (e) as provided in any Security Agreement or Pledged Agreement. Except as provided in the preceding sentence, the
Administrative Agent will not release any Liens on Collateral without the prior written authorization of the Required Lenders. Any such release shall not in any manner discharge, affect, or impair the Obligations or any Liens (other than those
expressly being released) upon (or obligations of the Credit Parties in respect of) all interests retained by the Credit Parties, including the proceeds of any sale, all of which shall continue to constitute part of the Collateral. Nothing in this
paragraph shall relieve the Administrative Agent of any obligations to release the Liens on any Collateral to the extent required under any Loan Document if the Credit Parties have satisfied the conditions for such release. 

Section 10.9. Delegation of Duties. The Administrative Agent may execute any of its duties under this Agreement or any other Loan
Document by or through agents, employees or attorneys-in-fact and shall be entitled to advice of counsel and other consultants or experts concerning all matters pertaining to such duties. The Administrative Agent shall not be responsible for the
negligence or misconduct of any agent or attorney-in-fact that it selects in the absence of gross negligence or willful misconduct, as determined by a final and non-appealable judgment of a court of competent jurisdiction. 

Section 10.10. Indemnification of Administrative Agent. The Lenders agree to indemnify the Administrative Agent (to the extent not
reimbursed by the Borrower) ratably, according to their respective Commitment Percentages, from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses (including attorneys’ fees
and expenses) or disbursements of any kind or nature whatsoever that may be imposed on, incurred by or asserted against the Administrative Agent in its capacity as agent in any way relating to or arising out of this Agreement or any other Loan
Document, or any action taken or omitted by the Administrative Agent with respect to this Agreement or any other Loan Document, provided that no Lender shall be liable for any portion of such liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses (including attorneys’ fees and expenses) or disbursements resulting from the Administrative Agent’s gross negligence or willful misconduct, as determined by a final and non-appealable judgment of
a court of competent jurisdiction, or from any action taken or omitted by the Administrative Agent in any capacity other than as agent under this Agreement or any other Loan Document. No action taken in accordance with the directions of the Required
Lenders shall be deemed to constitute gross negligence or willful misconduct for purposes of this Section 10.10. The undertaking in this Section 10.10 shall survive repayment of the Loans, cancellation of the Notes, if any, expiration or
termination of the Letters of Credit, termination of the Commitment, any foreclosure under, or modification, release or discharge of, any or all of the Loan Documents, termination of this Agreement and the resignation or replacement of the
administrative agent. 

  
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 Section 10.11. Successor Administrative Agent. The Administrative Agent may
resign as agent hereunder by giving not fewer than thirty (30) days prior written notice to the Borrower and the Lenders. If the Administrative Agent shall resign under this Agreement, then either (a) the Required Lenders shall appoint
from among the Lenders a successor agent for the Lenders (with the consent of the Borrower so long as an Event of Default does not exist and which consent shall not be unreasonably withheld), or (b) if a successor agent shall not be so
appointed and approved within the thirty (30) day period following the Administrative Agent’s notice to the Lenders of its resignation, then the Administrative Agent shall appoint a successor agent that shall serve as agent until such time
as the Required Lenders appoint a successor agent. If no successor agent has accepted appointment as the Administrative Agent by the date that is thirty (30) days following a retiring Administrative Agent’s notice of resignation, the
retiring Administrative Agent’s resignation shall nevertheless thereupon become effective, and the Lenders shall assume and perform all of the duties of the Administrative Agent hereunder until such time, if any, as the Required Lenders appoint
a successor agent as provided for above. Upon its appointment, such successor agent shall succeed to the rights, powers and duties as agent, and the term “Administrative Agent” means such successor effective upon its appointment, and the
former agent’s rights, powers and duties as agent shall be terminated without any other or further act or deed on the part of such former agent or any of the parties to this Agreement. After any retiring Administrative Agent’s resignation
as the Administrative Agent, the provisions of this Article X shall inure to its benefit as to any actions taken or omitted to be taken by it while it was the Administrative Agent under this Agreement and the other Loan Documents. 

Section 10.12. Issuing Lender. The Issuing Lender shall act on behalf of the Revolving Lenders with respect to any Letters of
Credit issued by the Issuing Lender and the documents associated therewith. The Issuing Lender shall have all of the benefits and immunities (a) provided to the Administrative Agent in this Article X with respect to any acts taken or omissions
suffered by the Issuing Lender in connection with the Letters of Credit and the applications and agreements for letters of credit pertaining to such Letters of Credit as fully as if the term “Administrative Agent”, as used in this Article
X, included the Issuing Lender with respect to such acts or omissions, and (b) as additionally provided in this Agreement with respect to the Issuing Lender. 

Section 10.13. Swing Line Lender. The Swing Line Lender shall act on behalf of the Revolving Lenders with respect to any Swing
Loans. The Swing Line Lender shall have all of the benefits and immunities (a) provided to the Administrative Agent in this Article X with respect to any acts taken or omissions suffered by the Swing Line Lender in connection with the Swing
Loans as fully as if the term “Administrative Agent”, as used in this Article X, included the Swing Line Lender with respect to such acts or omissions, and (b) as additionally provided in this Agreement with respect to the Swing Line
Lender. 

  
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 Section 10.14. Administrative Agent May File Proofs of Claim. In case of the
pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to any Credit Party, (a) the Administrative Agent (irrespective of whether the
principal of any Loan shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether the Administrative Agent shall have made any demand on the Borrower) shall be entitled and empowered, by intervention
in such proceeding or otherwise, to (i) file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans, and all other Obligations that are owing and unpaid and to file such other documents as
may be necessary or advisable in order to have the claims of the Lenders and the Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders and the Administrative Agent and their
respective agents and counsel and all other amounts due the Lenders and the Administrative Agent) allowed in such judicial proceedings, and (ii) collect and receive any monies or other property payable or deliverable on any such claims and to
distribute the same; and (b) any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender to make such payments to the Administrative Agent
and, in the event that the Administrative Agent shall consent to the making of such payments directly to the Lenders, to pay to the Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the
Administrative Agent and its agents and counsel, and any other amounts due the Administrative Agent. Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or consent to or accept or adopt on behalf of any Lender
any plan of reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of any Lender or to authorize the Administrative Agent to vote in respect of the claim of any Lender in any such proceeding. 

Section 10.15. No Reliance on Administrative Agent’s Customer Identification Program. Each Lender acknowledges and agrees
that neither such Lender, nor any of its Affiliates, participants or assignees, may rely on the Administrative Agent to carry out such Lender’s or its Affiliate’s, participant’s or assignee’s customer identification program, or
other obligations required or imposed under or pursuant to the Patriot Act or the regulations thereunder, including the regulations contained in 31 CFR 103.121 (as hereafter amended or replaced, the “CIP Regulations”), or any other
anti-terrorism Law, including any programs involving any of the following items relating to or in connection with the Borrower, its Affiliates or agents, the Loan Documents or the transactions hereunder: (a) any identity verification
procedures, (b) any record keeping, (c) any comparisons with government lists, (d) any customer notices, or (e) any other procedures required under the CIP Regulations or such other Laws. 

Section 10.16. Other Agents. The Administrative Agent shall have the continuing right from time to time to designate one or more
Lenders (or its or their Affiliates) as “syndication agent”, “co-syndication agent”, “documentation agent”, “co-documentation agent”, “book runner”, “lead arranger”, “joint lead
arranger”, “arrangers” or other designations for purposes hereof. Any such designation referenced in the previous sentence or listed on the cover of this Agreement shall have no substantive effect, and any such Lender and its
Affiliates so referenced or listed shall have no additional powers, duties, responsibilities or liabilities as a result thereof, except in its capacity, as applicable, as the Administrative Agent, a Lender, the Swing Line Lender or the Issuing
Lender hereunder. 

  
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 Section 10.17. Platform. 

(a) Each Credit Party agrees that the Administrative Agent may, but shall not be obligated to, make the Communications (as defined below)
available to the Issuing Lender, the Swing Line Lender and the other Lenders by posting the Communications on the Platform. 
 (b) The
Platform is provided “as is” and “as available.” The Agent Parties (as defined below) do not warrant the adequacy of the Platform and expressly disclaim liability for errors or omissions in the Communications. No warranty of any
kind, express, implied or statutory, including, without limitation, any warranty of merchantability, fitness for a particular purpose, non-infringement of third-party rights or freedom from viruses or other code defects, is made by any Agent Party
in connection with the Communications or the Platform. In no event shall the Administrative Agent or any of its Related Parties (collectively, the “Agent Parties”) have any liability to the Borrower or the other Credit Parties, any Lender
or any other Person or entity for damages of any kind, including, without limitation, direct or indirect, special, incidental or consequential damages, losses or expenses (whether in tort, contract or otherwise) arising out of the Borrower’s ,
any Credit Party’s or the Administrative Agent’s transmission of communications through the Platform. “Communications” means, collectively, any notice, demand, communication, information, document or other material provided by or
on behalf of any Credit Party pursuant to any Loan Document or the transactions contemplated therein that is distributed to the Administrative Agent, any Lender, the Issuing Lender or the Swing Line Lender by means of electronic communications
pursuant to this Section, including through the Platform. 
 ARTICLE XI. MISCELLANEOUS 

Section 11.1. Lenders’ Independent Investigation. Each Lender, by its signature to this Agreement, acknowledges and agrees
that the Administrative Agent has made no representation or warranty, express or implied, with respect to the creditworthiness, financial condition, or any other condition of any Company or with respect to the statements contained in any information
memorandum furnished in connection herewith or in any other oral or written communication between the Administrative Agent and such Lender. Each Lender represents that it has made and shall continue to make its own independent investigation of the
creditworthiness, financial condition and affairs of the Companies in connection with the extension of credit hereunder, and agrees that the Administrative Agent has no duty or responsibility, either initially or on a continuing basis, to provide
any Lender with any credit or other information with respect thereto (other than such notices as may be expressly required to be given by the Administrative Agent to the Lenders hereunder), whether coming into its possession before the first Credit
Event hereunder or at any time or times thereafter. Each Lender further represents that it has reviewed each of the Loan Documents. 

  
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 Section 11.2. No Waiver; Cumulative Remedies. No omission or course of dealing
on the part of the Administrative Agent, any Lender or the holder of any Note (or, if there is no Note, the holder of the interest as reflected on the books and records of the Administrative Agent) in exercising any right, power or remedy hereunder
or under any of the other Loan Documents shall operate as a waiver thereof; nor shall any single or partial exercise of any such right, power or remedy preclude any other or further exercise thereof or the exercise of any other right, power or
remedy hereunder or under any of the Loan Documents. The remedies herein provided are cumulative and in addition to any other rights, powers or privileges held under any of the Loan Documents or by operation of law, by contract or otherwise. 

Section 11.3. Amendments, Waivers and Consents. 

(a) General Rule. No amendment, modification, termination, or waiver of any provision of any Loan Document nor consent to any variance
therefrom (other than those made in connection with
Section 3.6), shall be effective unless the same shall be in writing and signed by the Required Lenders and then such waiver or consent shall be effective only in the specific instance and
for the specific purpose for which given. 
 (b) Exceptions to the General Rule. Notwithstanding the provisions of subsection
(a) of this Section 11.3: 
 (i) Consent of Lenders Affected Required. No amendment, modification, waiver or
consent shall (A) extend or increase the Commitment of any Lender without the written consent of such Lender, (B) extend the date scheduled for payment of any principal (excluding mandatory prepayments) of or interest on the Loans or
Letter of Credit reimbursement obligations or commitment fees payable hereunder without the written consent of each Lender directly affected thereby, (C) reduce the principal amount of any Loan, the stated rate of interest thereon (provided
that the institution of the Default Rate or post default interest and a subsequent removal of the Default Rate or post default interest shall not constitute a decrease in interest rate pursuant to this Section 11.3) or the stated rate of
commitment fees payable hereunder, without the consent of each Lender directly affected thereby, (D) change the manner of pro rata application of any payments made by the Borrower to the Lenders hereunder, without the consent of each Lender
directly affected thereby, (E) without the unanimous consent of the Lenders, change the definitions of “Borrowing Base”, “Eligible Accounts Receivable”, “Eligible Unbilled Accounts Receivable” and “Eligible
Extended Terms Account Receivable”, (F) without the unanimous consent of the Lenders, change any percentage voting requirement, voting rights, or the Required Lenders definition in this Agreement, (G) without the unanimous consent of
the Lenders, release the Borrower or any Guarantor of Payment material amount of collateral securing the Secured Obligations, except in connection with a transaction specifically permitted hereunder, or (H) without the unanimous consent of the
Lenders, amend this Section 11.3 or Section 9.5 or 9.8 hereof. 

  
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 (ii) Provisions Relating to Special Rights and Duties. No provision
of this Agreement affecting the Administrative Agent in its capacity as such shall be amended, modified or waived without the consent of the Administrative Agent. The Administrative Agent Fee Letter may be amended or modified by the Administrative
Agent and the Borrower without the consent of any other Lender. No provision of this Agreement relating to the rights or duties of the Issuing Lender in its capacity as such shall be amended, modified or waived without the consent of the Issuing
Lender. No provision of this Agreement relating to the rights or duties of the Swing Line Lender in its capacity as such shall be amended, modified or waived without the consent of the Swing Line Lender. 

(iii) Technical and Conforming Modifications. Notwithstanding the foregoing, technical and conforming modifications to
the Loan Documents may be made with the consent of the Borrower and the Administrative Agent (A) if such modifications are not adverse to the Lenders and are requested by Governmental Authorities, or (B) to cure any ambiguity, defect or
inconsistency. 
 (c) Replacement of Non-Consenting Lender. If, in connection with any proposed amendment, waiver or consent
hereunder, the consent of all Lenders is required, but only the consent of Required Lenders is obtained, (any Lender withholding consent as described in this subsection (c) being referred to as a “Non-Consenting Lender”), then, so
long as the Administrative Agent is not the Non-Consenting Lender, the Administrative Agent may (and shall, if requested by the Borrower), at the sole expense of the Borrower, upon notice to such Non-Consenting Lender and the Borrower, require such
Non-Consenting Lender to assign and delegate, without recourse (in accordance with the restrictions contained in Section 11.10 hereof) all of its interests, rights and obligations under this Agreement to a financial institution acceptable to
the Administrative Agent and the Borrower that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); provided that (i) such Non-Consenting Lender shall have received payment of an amount
equal to the outstanding principal of its Loans, accrued interest thereon, accrued fees and all other amounts payable to it hereunder, from such financial institution (to the extent of such outstanding principal and accrued interest and fees) or the
Borrower (in the case of all other amounts, including any breakage compensation under Article III hereof), and (ii) the applicable assignee shall have consented to the proposed amendment, waiver or consent at issue. 

(d) Generally. Notice of amendments, waivers or consents ratified by the Lenders hereunder shall be forwarded by the Administrative
Agent to all of the Lenders. Each Lender or other holder of a Note, or if there is no Note, the holder of the interest as reflected on the books and records of the Administrative Agent (or interest in any Loan or Letter of Credit) shall be bound by
any amendment, waiver or consent obtained as authorized by this Section 11.3, regardless of its failure to agree thereto. 
 (e)
Defaulting Lender. Any Defaulting Lender’s right to consent, vote, approve or disapprove any amendment, waiver or consent with respect to this Agreement or the other Loan Documents shall be restricted as referenced in
Section 11.11(a)(i) hereof. 

  
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 Section 11.4. Notices. All notices, requests, demands and other communications
provided for hereunder shall be in writing and, if to the Borrower, mailed or delivered to it, addressed to it at the address specified on the signature pages of this Agreement, except as otherwise specifically provided in 5.3(p) hereof, if to the
Administrative Agent or a Lender, mailed or delivered to it, addressed to the address of the Administrative Agent or such Lender specified on the signature pages of this Agreement, or, as to each party, at such other address as shall be designated
by such party in a written notice to each of the other parties. All notices, statements, requests, demands and other communications provided for hereunder shall be deemed to be received when delivered (if received during normal business hours on a
Business Day, such Business Day, otherwise the following Business Day) or two Business Days after being deposited in the mails with postage prepaid by registered or certified mail, addressed as aforesaid, or sent by facsimile or electronic
communication, in each case of facsimile or electronic communication with telephonic confirmation of receipt. All notices hereunder shall not be effective until received (or deemed to be received). For purposes of Article II hereof, the
Administrative Agent shall be entitled to rely on telephonic instructions from any person that the Administrative Agent in good faith believes is an Authorized Officer, and the Borrower shall hold the Administrative Agent and each Lender harmless
from any loss, cost or expense resulting from any such reliance. 
 Section 11.5. Approved Electronic Communication System. 

(a) Unless otherwise specifically identified therein, each posting to an Approved Electronic Communication System shall be deemed to be a
representation and warranty by the Borrower, the Authorized Officer submitting the information to the Approved Electronic Communication System, and, if such Authorized Officer is not a Financial Officer, the Financial Officer who authorized such
Authorized Officer to submit such information, as of the date of such posting, of the accuracy of the information provided with respect thereto, and that each of the representations and warranties contained in this Agreement and the other Loan
Documents are true and correct as if made on and as of the date of such posting. 
 (b) Although the Approved Electronic Communication System
is secured with generally-applicable security procedures and policies implemented or modified from time to time, the Borrower and each other Credit Party acknowledge and agree that the distribution of material through an electronic medium is not
necessarily secure and that there are confidentiality and other risks associated with such distribution. In consideration for the convenience and other benefits afforded by such distribution and for the other consideration provided hereunder, the
receipt and sufficiency of which is hereby acknowledged, the Borrower and each other Credit Party hereby approves of the use of the Approved Electronic Communication System and understands and assumes the risks of using such forms of communication.

 (c) The Approved Electronic Communication System is provided “as is” and “as available”. Neither the Administrative
Agent nor any of the Administrative Agent’s Affiliates, officers, directors, attorneys, agents or employees warrant the accuracy, adequacy or completeness of the Approved Electronic Communication System and each expressly disclaims any
liability for errors or omissions in the Approved Electronic Communication System. No warranty of any kind, express, implied or statutory, including, without limitation, any warranty of merchantability, fitness for a particular purpose,
non-infringement of third party rights or freedom from viruses or other code defects, is made by the Administrative Agent (or any of the Administrative Agent’s Affiliates, officers, directors, attorneys, agents or employees) in connection with
the Approved Electronic Communication System. 

  
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 (d) The Borrower and each other Credit Party agrees that the Administrative Agent may, but
shall not be obligated to, store information provided through the Approved Electronic Communication System in accordance with the Administrative Agent’s generally-applicable document retention procedures and policies in effect from time to
time. 
 Section 11.6. Costs, Expenses and Documentary Taxes. The Borrower agrees to pay on demand all costs and expenses of the
Administrative Agent and all Related Expenses, including but not limited to (a) bank meeting, administration, travel and out-of-pocket expenses, including but not limited to attorneys’ fees and expenses, of the Administrative Agent in
connection with the preparation, negotiation and closing of the Loan Documents and the administration of the Loan Documents, and the collection and disbursement of all funds hereunder and the other instruments and documents to be delivered
hereunder, (b) extraordinary expenses of the Administrative Agent in connection with the administration of the Loan Documents and the other instruments and documents to be delivered hereunder, and (c) the reasonable fees and expenses of
special counsel for the Administrative Agent, with respect to the foregoing, and of local counsel, if any, who may be retained by said special counsel with respect thereto. The Borrower also agrees to pay on demand all costs and expenses (including
Related Expenses) of the Administrative Agent and the Lenders, including reasonable attorneys’ fees and expenses, in connection with the restructuring or enforcement of the Obligations, this Agreement or any other Related Writing. In addition,
the Borrower shall pay any and all stamp, transfer, documentary and other similar taxes, assessments, charges and fees payable or determined to be payable in connection with the execution and delivery of the Loan Documents, and the other instruments
and documents to be delivered hereunder, and agrees to hold the Administrative Agent and each Lender harmless from and against any and all liabilities with respect to or resulting from any delay in paying or failure to pay such taxes or fees. All
obligations provided for in this Section 11.6 shall survive any termination of this Agreement. 
 Section 11.7.
Indemnification. The Borrower agrees to defend, indemnify and hold harmless the Administrative Agent and the Lenders (and their respective Affiliates, officers, directors, attorneys, agents and employees) from and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses (including attorneys’ fees) or disbursements of any kind or nature whatsoever that may be imposed on, incurred by or asserted against the
Administrative Agent or any Lender in connection with any investigative, administrative or judicial proceeding (whether or not such Lender or the Administrative Agent shall be designated a party thereto) or any other claim by any Person (including
Borrower or any other Credit Party) relating to or arising out of any Loan Document or any actual or proposed use of proceeds of the Loans or any of the Obligations, or any activities of any Company or its Affiliates; provided that no Lender nor the
Administrative Agent shall have the right to be indemnified under this Section 11.7 for its own gross negligence or willful misconduct, as determined by a final and non-appealable judgment of a court of competent jurisdiction. All obligations
provided for in this Section 11.7 shall survive any termination of this Agreement. 

  
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 Section 11.8. Obligations Several; No Fiduciary Obligations. The obligations of
the Lenders hereunder are several and not joint. Nothing contained in this Agreement and no action taken by the Administrative Agent or the Lenders pursuant hereto shall be deemed to constitute the Administrative Agent or the Lenders a partnership,
association, joint venture or other entity. No default by any Lender hereunder shall excuse the other Lenders from any obligation under this Agreement; but no Lender shall have or acquire any additional obligation of any kind by reason of such
default. The relationship between the Borrower and the Lenders with respect to the Loan Documents and the other Related Writings is and shall be solely that of debtor and creditors, respectively, and neither the Administrative Agent nor any Lender
shall have any fiduciary obligation toward any Credit Party with respect to any such documents or the transactions contemplated thereby. 

Section 11.9. Execution in Counterparts. This Agreement may be executed in any number of counterparts and by different parties
hereto in separate counterparts, and by facsimile or other electronic signature, each of which counterparts when so executed and delivered shall be deemed to be an original and all of which taken together shall constitute but one and the same
agreement. 
 Section 11.10. Successors and Assigns. 

(a) Successors and Assigns Generally. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and assigns permitted hereby, except that neither the Borrower nor any other Credit Party may assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the
Administrative Agent and each Lender, and no Lender may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an assignee in accordance with the provisions of subsection (b) of this Section 11.10,
(ii) by way of participation in accordance with the provisions of subsection (d) of this Section 11.10, or (iii) by way of pledge or assignment of a security interest subject to the restrictions of subsection (e) of this
Section 11.10 (and any other attempted assignment or transfer by any party hereto shall be null and void). Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their
respective successors and assigns permitted hereby, Participants to the extent provided in subsection (d) of this Section 11.10 and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent and
the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement. 
 (b) Assignments by Lenders. Any
Lender may at any time assign to one or more assignees all or a portion of its rights and obligations under this Agreement (including, without limitation (i) such Lender’s Commitment, (ii) all Loans made by such Lender,
(iii) such Lender’s Notes (if any), and (iv) such Lender’s interest in any Letter of Credit or Swing Loan); provided that any such assignment shall be subject to the following conditions: 

  
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 (i) Minimum Amounts. 

(A) no minimum amount is required to be assigned in the case of (x) an assignment of the entire remaining amount of the
assigning Lender’s Commitment (to the extent the Commitment is still in effect) and the Loans at the time owing to such Lender, (y) contemporaneous assignments to related Approved Funds (determined after giving effect to such assignments)
that equal at least the amount specified in subpart (b)(i)(B) of this Section 11.10 in the aggregate, or (z) in the case of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund; and 

(B) in any case not described in subpart (b)(i)(A) of this Section 11.10, the aggregate amount of each such assignment
(determined as of the date the Assignment Agreement with respect to such assignment is delivered to the Administrative Agent (or, if “Trade Date” is specified in the Assignment Agreement, as of the Trade Date) shall not be less than Five
Million Dollars ($5,000,000), unless each of the Administrative Agent and, so long as no Default or Event of Default has occurred and is continuing, the Borrower otherwise consents (each such consent not to be unreasonably withheld or delayed). 

(ii) Proportionate Amounts. Each partial assignment shall be made as an assignment of a proportionate part of all the
assigning Lender’s rights and obligations under this Agreement with respect to the Loans or the portion of such Lender’s Commitment assigned, except that this subpart (ii) shall not prohibit any Lender from assigning all or a portion
of its rights and obligations with respect to separate facilities on a non-pro rata basis. 
 (iii) Required Consents.
No consent shall be required for any assignment except to the extent required by subsection (b)(i)(B) of this Section 11.10 and, in addition: 

(A) the consent of the Borrower (such consent not to be unreasonably withheld or delayed) shall be required unless (1) a
Default or Event of Default has occurred and is continuing at the time of such assignment, or (2) such assignment is to a Lender, an Affiliate of a Lender or an Approved Fund; provided that (y) the Borrower shall be deemed to have
consented to any such assignment unless it shall object thereto by written notice to the Administrative Agent within three Business Days after having received notice thereof, and (z) the Borrower’s consent shall not be required during the
primary syndication of the Commitment; 
 (B) the consent of the Administrative Agent (such consent not to be unreasonably
withheld or delayed) shall be required for assignments to a Person that is not a Lender, an Affiliate of a Lender or an Approved Fund; and 

(C) the consent of the Issuing Lender and the Swing Line Lender shall be required for any assignment in respect of the
Revolving Credit Commitment. 

  
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 (iv) Assignment Agreement. The parties to each assignment shall
execute and deliver to the Administrative Agent an Assignment Agreement, together with a processing and recordation fee of Three Thousand Five Hundred Dollars ($3,500); provided that the Administrative Agent may, in its sole discretion, elect to
waive such processing and recordation fee in the case of any assignment. The assignee, if it is not a Lender, shall deliver to the Administrative Agent an administrative questionnaire in a form supplied by the Administrative Agent. 

(v) No Assignment to Certain Persons. No such assignment shall be made to (A) the Borrower or any of the
Borrower’s Affiliates or Subsidiaries, or (B) to any Defaulting Lender or any Person that, upon becoming a Lender, would constitute a Defaulting Lender. 

(vi) No Assignment to Natural Persons. No such assignment shall be made to a natural Person (or a holding company,
investment vehicle or trust for, or owned and operated for the primary benefit of, a natural Person). 
 (vii) Certain
Additional Payments. In connection with any assignment of rights and obligations of any Defaulting Lender hereunder, no such assignment shall be effective unless and until, in addition to the other conditions thereto set forth herein, the
parties to the assignment shall make such additional payments to the Administrative Agent in an aggregate amount sufficient, upon distribution thereof as appropriate (which may be outright payment, purchases by the assignee of participations or
subparticipations, or other compensating actions, including funding, with the consent of the Borrower and the Administrative Agent, the applicable pro rata share of Loans previously requested but not funded by the Defaulting Lender, to each of which
the applicable assignee and assignor hereby irrevocably consent), to (A) pay and satisfy in full all payment liabilities then owed by such Defaulting Lender to the Administrative Agent, the Issuing Lender, the Swing Line Lender and each other
Lender hereunder (and interest accrued thereon), and (B) acquire (and fund as appropriate) its full pro rata share of all Loans and participations in Letters of Credit and Swing Loans in accordance with its Commitment Percentage.
Notwithstanding the foregoing, in the event that any assignment of rights and obligations of any Defaulting Lender hereunder shall become effective under applicable Law without compliance with the provisions of this subpart (vii), then the assignee
of such interest shall be deemed to be a Defaulting Lender for all purposes of this Agreement until such compliance occurs. 

(viii) Treatment as Lenders. Subject to acceptance and recording thereof by the Administrative Agent pursuant to
subsection (c) of this Section 11.10, from and after the effective date specified in each Assignment Agreement, the assignee thereunder shall be a party to this Agreement, and, to the extent of the interest assigned by such Assignment
Agreement, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment Agreement, be released from its obligations under this Agreement (and,
in the case of an Assignment Agreement covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits of Article III and
Sections 11.6 and 11.7 hereof with respect to facts and circumstances occurring prior to the effective date of such assignment; provided that, except to the extent otherwise expressly agreed by the affected

  
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parties, no assignment by a Defaulting Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender’s having been a Defaulting Lender. Any
assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this subpart shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in
accordance with subsection (d) of this Section 11.10. 
 (c) Register. The Administrative Agent, acting solely for this
purpose as an agent of the Borrower, shall maintain at one of its offices a copy of each Assignment Agreement delivered to it and a register (the “Register”) for the recordation of the names and addresses of the Lenders, and the Commitment
of, and principal amounts (and stated interest) of the Loans owing to, each Lender from time to time. The entries in the Register shall be conclusive absent manifest error, and the Borrower, the Administrative Agent and the Lenders shall treat each
Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement. The Register shall be available for inspection by the Borrower and any Lender at any reasonable time and from time
to time upon reasonable prior notice. 
 (d) Participations. Any Lender may at any time, without the consent of, or notice to, the
Borrower or the Administrative Agent, sell participations to any Person (other than a natural Person, or a holding company, investment vehicle or trust for, or owned and operated for the primary benefit of, a natural Person, or the Borrower or any
of the Borrower’s Affiliates or Subsidiaries) (each, a “Participant”) in all or a portion of such Lender’s rights and obligations under this Agreement and the other Loan Documents (including, without limitation, all or a portion
of the Commitment and the Loans and participations owing to it and the Notes, if any, held by it); provided that (i) such Lender’s obligations under this Agreement and the other Loan Documents shall remain unchanged, (ii) such Lender
shall remain solely responsible to the other parties hereto for the performance of such obligations, and (iii) the Borrower, the Administrative Agent, the Issuing Lender, the Swing Line Lender and the Lenders shall continue to deal solely and
directly with such Lender in connection with such Lender’s rights and obligations under this Agreement and each of the other Loan Documents. For the avoidance of doubt, each Lender shall be responsible for the indemnity under Section 10.10
with respect to any payments made by such Lender to any of its Participants. 
 Any agreement or instrument pursuant to which a Lender sells such a
participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided that such agreement or instrument may provide that
such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver with respect to the following (to the extent that it affects such Participant): (i) any increase in the portion of the participation
amount of any Participant over the amount thereof then in effect, or any extension of the Commitment Period; or (ii) any reduction of the principal amount of or extension of the time for any payment of principal on any Loan, or the reduction of
the rate of interest or extension of the time for payment of interest on any Loan, or the reduction of the commitment fee. The Borrower agrees that each Participant shall be entitled to the benefits of Article III hereof (subject to the requirements
and limitations therein, including the requirements under Section 3.2(e) hereof (it 

  
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being understood that the documentation required under Section 3.2(e) hereof shall be delivered to the participating Lender)) to the same extent as if it were a Lender and had acquired its
interest by assignment pursuant to subsection (b) of this Section 11.10; provided that such Participant shall not be entitled to receive any greater payment under Article III hereof, with respect to any participation, than its
participating Lender would have been entitled to receive, except to the extent such entitlement to receive a greater payment results from a Change in Law that occurs after the Participant acquired the applicable participation. To the extent
permitted by law, each Participant also shall be entitled to the benefits of Section 9.4 hereof as though it were a Lender; provided that such Participant agrees to be subject to Section 9.5 hereof as though it were a Lender. Each Lender
that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each
Participant’s interest in the Loans or other obligations under the Loan Documents (the “Participant Register”); provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including
the identity of any Participant or any information relating to a Participant’s interest in any commitments, loans, letters of credit or its other obligations under any Loan Document) to any Person except to the extent that such disclosure is
necessary to establish that such commitment, loan, letter of credit or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations. The entries in the Participant Register shall be conclusive
absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary. For the avoidance of
doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register. 

(e) Certain Pledges. Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this
Agreement to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank; provided that no such pledge or assignment shall release such Lender from any of its obligations hereunder or
substitute any such pledgee or assignee for such Lender as a party hereto. 
 Section 11.11. Defaulting Lenders. 

(a) Defaulting Lender Adjustments. Notwithstanding anything to the contrary contained in this Agreement, if any Lender becomes a
Defaulting Lender, then, until such time as such Lender is no longer a Defaulting Lender, to the extent permitted by applicable Law: 

(i) Waivers and Amendments. Such Defaulting Lender’s right to approve or disapprove any amendment, waiver or
consent with respect to this Agreement shall be restricted as set forth in the definition of Required Lenders. 
 (ii)
Defaulting Lender Waterfall. Any payment of principal, interest, fees or other amounts received by the Administrative Agent for the account of such Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to Article IX hereof
or otherwise) or received by the Administrative Agent from a Defaulting Lender pursuant to Section 9.4 hereof shall be applied at such time or times as may be determined by the 

  
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Administrative Agent as follows: (A) first, to the payment of amounts owing by such Defaulting Lender to the Administrative Agent hereunder; (B) second, to the payment on a pro rata
basis of any amounts owing by such Defaulting Lender to the Issuing Lender or Swing Line Lender hereunder; (C) third, to Cash Collateralize the Issuing Lender’s Fronting Exposure with respect to such Defaulting Lender in accordance with
Section 2.11 hereof; (D) fourth, as the Borrower may request (so long as no Default or Event of Default exists), to the funding of any Loan in respect of which such Defaulting Lender has failed to fund its portion thereof as required by
this Agreement, as determined by the Administrative Agent; (E) fifth, if so determined by the Administrative Agent and the Borrower, to be held in a deposit account and released pro rata in order to (1) satisfy such Defaulting
Lender’s potential future funding obligations with respect to Loans under this Agreement, and (2) Cash Collateralize the Issuing Lender’s future Fronting Exposure with respect to such Defaulting Lender with respect to future Letters
of Credit issued under this Agreement, in accordance with Section 2.11 hereof; (F) sixth, to the payment of any amounts owing to the Lenders, the Issuing Lender or the Swing Line Lender as a result of any judgment of a court of competent
jurisdiction obtained by any Lender, the Issuing Lender or the Swing Line Lender against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement; (G) seventh, so long as no Default or
Event of Default exists, to the payment of any amounts owing to the Borrower as a result of any judgment of a court of competent jurisdiction obtained by the Borrower against such Defaulting Lender as a result of such Defaulting Lender’s breach
of its obligations under this Agreement; and (H) eighth, to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction; provided that, if (y) such payment is a payment of the principal amount of any Loans or any
Letters of Credit in respect of which such Defaulting Lender has not fully funded its appropriate share, and (z) such Loans were made or reimbursement of any payment on any Letters of Credit were made or the related Letters of Credit were
issued at a time when the conditions set forth in Section 4.1 hereof were satisfied or waived, such payment shall be applied solely to pay the Loans of, and the Letter of Credit Exposure owed to, all Non-Defaulting Lenders on a pro rata basis
prior to being applied to the payment of any Loans of, or Letter of Credit Exposure owed to, such Defaulting Lender until such time as all Loans and funded and unfunded participations in the Letter of Credit Exposure and Swing Loans are held by the
Lenders pro rata in accordance with the Commitment under the applicable facility without giving effect to Section 11.11(a)(iv) hereof. Any payments, prepayments or other amounts paid or payable to a Defaulting Lender that are applied (or held)
to pay amounts owed by a Defaulting Lender or to post Cash Collateral pursuant to this Section 11.11(a)(ii) hereof shall be deemed paid to and redirected by such Defaulting Lender, and each Lender irrevocably consents hereto. 

(iii) Certain Fees. 

(A) No Defaulting Lender shall be entitled to receive any Commitment Fee for any period during which that Lender is a
Defaulting Lender (and the Borrower shall not be required to pay any such fee that otherwise would have been required to have been paid to that Defaulting Lender). 

  
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 (B) Each Defaulting Lender shall be entitled to receive letter of credit
fees, as set forth in Section 2.2(b)(iii) hereof for any period during which that Lender is a Defaulting Lender only to the extent allocable to its Commitment Percentage of the stated amount of Letters of Credit for which it has provided Cash
Collateral pursuant to Section 2.11 hereof. 
 (C) With respect to any fee not required to be paid to any Defaulting
Lender pursuant to subpart (A) or (B) above, the Borrower shall (1) pay to each Non-Defaulting Lender that portion of any such fee otherwise payable to such Defaulting Lender with respect to such Defaulting Lender’s participation
in the Letter of Credit Exposure or Swing Loans that has been reallocated to such Non-Defaulting Lender pursuant to subpart (iv) below, (2) pay to the Issuing Lender and Swing Line Lender, as applicable, the amount of any such fee
otherwise payable to such Defaulting Lender to the extent allocable to the Issuing Lender’s or Swing Line Lender’s Fronting Exposure to such Defaulting Lender, and (3) not be required to pay the remaining amount of any such fee. 

(iv) Reallocation of Participations to Reduce Fronting Exposure. All or any part of such Defaulting Lender’s
participation in the Letter of Credit Exposure and Swing Loans shall be reallocated among the Non-Defaulting Lenders in accordance with their respective Commitment Percentages with respect thereto (calculated without regard to such Defaulting
Lender’s Commitment) but only to the extent that such reallocation does not cause the aggregate Revolving Credit Exposure of any Non-Defaulting Lender to exceed such Non-Defaulting Lender’s Commitment Percentage with respect to the
Revolving Credit Commitment. No reallocation hereunder shall constitute a waiver or release of any claim of any party hereunder against a Defaulting Lender arising from that Lender having become a Defaulting Lender, including any claim of a
Non-Defaulting Lender as a result of such Non-Defaulting Lender’s increased exposure following such reallocation. 
 (v)
Cash Collateral, Repayment of Swing Loans. If the reallocation described in subpart (iv) above cannot, or can only partially, be effected, the Borrower shall, without prejudice to any right or remedy available to it hereunder or under
law, (y) first, prepay Swing Loans in an amount equal to the Swing Line Lender’s Fronting Exposure and (z) second, Cash Collateralize the Issuing Lenders’ Fronting Exposure in accordance with the procedures set forth in
Section 2.11 hereof. 
 (b) Defaulting Lender Cure. If Borrower, the Administrative Agent, the Swing Line Lender and the Issuing
Lender agree in writing that a Lender is no longer a Defaulting Lender, the Administrative Agent will so notify the parties hereto, whereupon as of the effective date specified in such notice and subject to any conditions set forth therein (which
may include arrangements with respect to any Cash Collateral), that Lender will, to the extent applicable, purchase at par that portion of outstanding Loans of the other Lenders or take such other actions as the Administrative Agent may determine to
be reasonably necessary to cause the Loans and funded and unfunded participations in Letters of Credit and Swing Loans to be held pro rata by the Lenders in accordance with the Commitments under the applicable facility (without giving

  
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effect to Section 11.11(a)(iv) hereof), whereupon such Lender will cease to be a Defaulting Lender; provided that (i) no adjustments will be made retroactively with respect to fees
accrued or payments made by or on behalf of the Borrower while that Lender was a Defaulting Lender, and (ii) except to the extent otherwise expressly agreed by the affected parties, no change hereunder from Defaulting Lender to Lender will
constitute a waiver or release of any claim of any party hereunder arising from that Lender’s having been a Defaulting Lender. 
 (c)
New Swing Loan and Letters of Credit. So long as any Lender is a Defaulting Lender, (i) the Swing Line Lender shall not be required to fund any Swing Loan unless it is satisfied that it will have no Fronting Exposure after giving effect
to such Swing Loan, and (ii) the Issuing Lender shall not be required to issue, extend, renew or increase any Letter of Credit unless it is satisfied that it will have no Fronting Exposure after giving effect thereto. 

(d) Replacement of Defaulting Lenders. Each Lender agrees that, during the time in which any Lender is a Defaulting Lender, the
Administrative Agent shall have the right (and the Administrative Agent shall, if requested by the Borrower), at the sole expense of the Borrower, upon notice to such Defaulting Lender and the Borrower, to require that such Defaulting Lender assign
and delegate, without recourse (in accordance with the restrictions contained in Section 11.10 hereof), all of its interests, rights and obligations under this Agreement to an Eligible Assignee, approved by the Borrower (unless an Event of
Default shall exist) and the Administrative Agent, that shall assume such obligations. 
 Section 11.12. Patriot Act Notice.
Each Lender, and the Administrative Agent (for itself and not on behalf of any other party), hereby notifies the Credit Parties that, pursuant to the requirements of the Patriot Act, such Lender and the Administrative Agent are required to obtain,
verify and record information that identifies the Credit Parties, which information includes the name and address of each of the Credit Parties and other information that will allow such Lender or the Administrative Agent, as applicable, to identify
the Credit Parties in accordance with the Patriot Act. The Borrower shall provide, to the extent commercially reasonable, such information and take such actions as are reasonably requested by the Administrative Agent or a Lender in order to assist
the Administrative Agent or such Lender in maintaining compliance with the Patriot Act. 
 Section 11.13. Severability of
Provisions; Captions; Attachments. Any provision of this Agreement that shall be prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction. The several captions to sections and subsections herein are inserted for convenience only and shall be ignored in
interpreting the provisions of this Agreement. Each schedule or exhibit attached to this Agreement shall be incorporated herein and shall be deemed to be a part hereof. 

Section 11.14. Investment Purpose. Each of the Lenders represents and warrants to the Borrower that such Lender is entering into
this Agreement with the present intention of acquiring any Note issued pursuant hereto (or, if there is no Note, the interest as reflected on the books and records of the Administrative Agent) for investment purposes only and not for the purpose of
distribution or resale, it being understood, however, that each Lender shall at all times retain full control over the disposition of its assets. 

  
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 Section 11.15. Entire Agreement. This Agreement, any Note and any other Loan
Document or other agreement, document or instrument attached hereto or executed on or as of the Closing Date integrate all of the terms and conditions mentioned herein or incidental hereto and supersede all oral representations and negotiations and
prior writings with respect to the subject matter hereof (except with respect to any provisions of the Administrative Agent Fee Letter or any mandate letter, term sheet and fee letter between the Borrower and KeyBank that by their terms survive the
termination of such agreements, in each case, which shall remain in full force and effect after the Closing Date). 
 Section 11.16.
Confidentiality. The Administrative Agent and each Lender shall hold all Confidential Information in accordance with the customary procedures of the Administrative Agent or such Lender for handling confidential information of this nature, and in
accordance with safe and sound banking practices. Notwithstanding the foregoing, the Administrative Agent or any Lender may in any event make disclosures of, and furnish copies of Confidential Information (a) to another agent under this
Agreement or another Lender; (b) when reasonably required by any bona fide transferee or participant in connection with the contemplated transfer of any Loans or Commitment or participation therein (provided that (i) each such prospective
transferee or participant shall have an agreement for the benefit of the Borrower with such prospective transferor Lender or participant containing substantially similar provisions to those contained in this Section 11.16, (ii) the
prospective transferee or participant shall be a Eligible Assignee and (iii) the approval of the Borrower to such transfer shall have been obtained if required under Section 11.10(b)(iii)(A)); (c) to the parent corporation or other
Affiliates of the Administrative Agent or such Lender, and to their respective auditors and attorneys; and (d) as required or requested by any Governmental Authority or representative thereof, or pursuant to legal process, provided, that,
unless specifically prohibited by applicable Law or court order, the Administrative Agent or such Lender, as applicable, shall notify the chief financial officer of the Borrower of any request by any Governmental Authority or representative thereof
(other than any such request in connection with an examination of the financial condition of the Administrative Agent or such Lender by such Governmental Authority), and of any other request pursuant to legal process, for disclosure of any such
non-public information prior to disclosure of such Confidential Information. Notwithstanding anything contained herein to the contrary, the Administrative Agent, each Lender, the Borrower and its Affiliates may disclose to any and all Persons,
without limitation of any kind, the tax treatment and tax structure of the transactions contemplated hereby and by the other Loan Documents and materials of any kind (including opinions or other tax analyses) that are provided to the Administrative
Agent, any Lender, the Borrower or its Affiliates relating to such tax treatment and tax structure; it being understood that this authorization is retroactively effective to the commencement of the first discussions between or among any of the
parties regarding the transactions contemplated hereby and by the other Loan Documents. In no event shall the Administrative Agent or any Lender be obligated or required to return any materials furnished by or on behalf of any Company. The Borrower
hereby agrees that the failure of the Administrative Agent or any Lender to comply with the provisions of this Section 11.16 shall not relieve the Borrower of any of the obligations to the Administrative Agent and the Lenders under this
Agreement and the other Loan Documents. 

  
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 Section 11.17. Limitations on Liability of the Issuing Lender. The Borrower
assumes all risks of the acts or omissions of any beneficiary or transferee of any Letter of Credit with respect to its use of such Letters of Credit. Neither the Issuing Lender nor any of its officers or directors shall be liable or responsible for
(a) the use that may be made of any Letter of Credit or any acts or omissions of any beneficiary or transferee in connection therewith; (b) the validity, sufficiency or genuineness of documents, or of any endorsement thereon, even if such
documents should prove to be in any or all respects invalid, insufficient, fraudulent or forged; (c) payment by the Issuing Lender against presentation of documents that do not comply with the terms of a Letter of Credit, including failure of
any documents to bear any reference or adequate reference to such Letter of Credit; or (d) any other circumstances whatsoever in making or failing to make payment under any Letter of Credit, except that the account party on such Letter of
Credit shall have a claim against the Issuing Lender, and the Issuing Lender shall be liable to such account party, to the extent of any direct, but not consequential, damages suffered by such account party that such account party proves were caused
by (i) the Issuing Lender’s willful misconduct or gross negligence (as determined by a final and non-appealable judgment of a court of competent jurisdiction) in determining whether documents presented under a Letter of Credit comply with
the terms of such Letter of Credit, or (ii) the Issuing Lender’s willful failure to make lawful payment under any Letter of Credit after the presentation to it of documentation strictly complying with the terms and conditions of such
Letter of Credit. In furtherance and not in limitation of the foregoing, the Issuing Lender may accept documents that appear on their face to be in order, without responsibility for further investigation. 

Section 11.18. General Limitation of Liability. No claim may be made by any Credit Party or any other Person against the
Administrative Agent, the Issuing Lender, or any other Lender or the Affiliates, directors, officers, employees, attorneys or agents of any of them for any damages other than actual compensatory damages in respect of any claim for breach of contract
or any other theory of liability arising out of or related to the transactions contemplated by this Agreement or any of the other Loan Documents, or any act, omission or event occurring in connection therewith; and the Borrower, each Lender, the
Administrative Agent and the Issuing Lender hereby, to the fullest extent permitted under applicable Law, waive, release and agree not to sue or counterclaim upon any such claim for any special, indirect, consequential or punitive damages, whether
or not accrued and whether or not known or suspected to exist in their favor and regardless of whether any Lender, Issuing Lender, or the Administrative Agent has been advised of the likelihood of such loss of damage. 

Section 11.19. No Duty. All attorneys, accountants, appraisers, consultants and other professional persons (including the firms or
other entities on behalf of which any such Person may act) retained by the Administrative Agent or any Lender with respect to the transactions contemplated by the Loan Documents shall have the right to act exclusively in the interest of the
Administrative Agent or such Lender, as the case may be, and shall have no duty of disclosure, duty of loyalty, duty of care, or other duty or obligation of any type or nature whatsoever to the Borrower, any other Companies, or any other Person,
with respect to any matters within the scope of such representation or related to their activities in connection with such representation. The Borrower agrees, on behalf of itself and its Subsidiaries, not to assert any claim or counterclaim against
any such persons with regard to such matters, all such claims and counterclaims, now existing or hereafter arising, whether known or unknown, foreseen or unforeseeable, being hereby waived, released and forever discharged. 

  
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 Section 11.20. Legal Representation of Parties. The Loan Documents were
negotiated by the parties with the benefit of legal representation and any rule of construction or interpretation otherwise requiring this Agreement or any other Loan Document to be construed or interpreted against any party shall not apply to any
construction or interpretation hereof or thereof. 
 Section 11.21. Acknowledgement and Consent to Bail-In of EEA Financial
Institutions. Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any EEA Financial Institution
arising under any Loan Document, to the extent such liability is unsecured, may be subject to the Write-Down and Conversion Powers of an EEA Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by: 

(a) the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder that may
be payable to it by any party hereto that is an EEA Financial Institution; and 
 (b) the effects of any Bail-in Action on any such
liability, including, if applicable: 
 (i) a reduction in full or in part or cancellation of any such liability; 

(ii) a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEA Financial
Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such
liability under this Agreement or any other Loan Document; or 
 (iii) the variation of the terms of such liability in
connection with the exercise of the Write-Down and Conversion Powers of any EEA Resolution Authority. 
 Section 11.22. Governing
Law; Submission to Jurisdiction. 
 (a) Governing Law. This Agreement, each of the Notes and any other Related Writing shall be
governed by and construed in accordance with the Laws of the State of New York and the respective rights and obligations of the Borrower, the Administrative Agent, and the Lenders shall be governed by the Laws of the State of New York. 

(b) Submission to Jurisdiction. The Borrower hereby irrevocably submits to the non-exclusive jurisdiction of any New York state or
federal court sitting in New York County, New York, over any action or proceeding arising out of or relating to this Agreement, the Obligations or any other Related Writing, and the Borrower hereby irrevocably agrees that all claims in respect of
such action or proceeding may be heard and determined in such New York state or federal court. The Borrower, on behalf of itself and its Subsidiaries, hereby irrevocably 

  
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 waives, to the fullest extent permitted by law, any objection it may now or hereafter have to the laying of
venue in any action or proceeding in any such court as well as any right it may now or hereafter have to remove such action or proceeding, once commenced, to another court on the grounds of FORUM NON CONVENIENS or otherwise. The Borrower agrees that
a final, non-appealable judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. 

Section 11.23. Judgment
Currency. 
 (a) This is an international transaction in which the obligations of the Credit Parties under this Agreement to make payment
to or for account of the Administrative Agent or the Lenders in a specified currency (“Original Currency”) shall not be discharged or satisfied by any tender or recovery pursuant to any judgment expressed in or converted into any other
currency (“Judgment Currency”) except to the extent that such tender or recovery results in the effective receipt by the Administrative Agent or such Lender of the full amount in Original Currency payable to the Administrative Agent or
such Lender under this Agreement. 
 (b) If the Administrative Agent, on behalf of the Lenders, or any other holder of the Obligations (the “Applicable
Creditor”), obtains a judgment or judgments against any Credit Party in respect of any sum adjudged to be due to the Administrative Agent or the Lenders hereunder or under the Notes (the “Judgment Amount”) in a Judgment Currency other
than the Original Currency, the obligations of such Credit Party in connection with such judgment shall be discharged only to the extent that (i) on the Business Day following receipt by the Applicable Creditor of any sum adjudged to be so due
in the Judgment Currency, such Applicable Creditor, in accordance with the normal banking procedures in the relevant jurisdiction, can purchase the Original Currency with the Judgment Currency, and (ii) if the amount of Original Currency that
could have been purchased pursuant to subpart (i) above is less than the amount of Original Currency that could have been purchased with the Judgment Amount on the date or dates the Judgment Currency was originally due and owing to the
Administrative Agent or the Lenders hereunder (the “Loss”), such Credit Party or the Borrower, as a separate obligation and notwithstanding any such judgment, indemnifies the Administrative Agent or such Lender, as the case may be, against
such Loss. The Borrower hereby agrees to such indemnification. For purposes of determining the equivalent in one currency of another currency as provided in this Section 11.23, such amount shall include any premium and costs payable in
connection with the conversion into or from any currency. The obligations of the Credit Parties contained in this Section 11.23 shall survive the termination of this Agreement and the payment of all other amounts owing hereunder. 

Section 
11.24. ERISA Representations. 
 (a) Each Lender (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and
(y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of the Administrative Agent and its affiliates, and not, for the avoidance of doubt, to or for the
benefit of the Borrower or any other Credit Party, that at least one of the following is and will be true: 

(i)
 such Lender is not using “plan assets” (within the meaning of 29 C.F.R. § 2510.3-101, as modified by Section 3(42) of ERISA) of one or more Benefit Plans in connection with the Loans, the Letters of Credit or the
Commitment; 

  
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(ii)
 the transaction exemption set forth in one or more PTEs, such as PTE 84-14 (a class exemption for certain transactions determined by independent qualified professional asset managers), PTE 95-60 (a class exemption for certain transactions involving
insurance company general accounts), PTE 90-1 (a class exemption for certain transactions involving insurance company pooled separate accounts), PTE 91-38 (a class exemption for certain transactions involving bank collective investment funds) or PTE
96-23 (a class exemption for certain transactions determined by in-house asset managers), is applicable with respect to such Lender’s entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the
Commitment and this Agreement; 
 (iii) (A) such Lender is an investment fund managed by a “Qualified Professional Asset Manager” (within the
meaning of Part VI of PTE 84-14), (B) such Qualified Professional Asset Manager made the investment decision on behalf of such Lender to enter into, participate in, administer and perform the Loans, the Letters of Credit, the Commitment and
this Agreement, (C) the entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitment and this Agreement satisfies the requirements of sub-sections (b) through (g) of Part I of
PTE 84-14 and (D) to the best knowledge of such Lender, the requirements of subsection (a) of Part I of PTE 84-14 are satisfied with respect to such Lender’s entrance into, participation in, administration of and performance of the
Loans, the Letters of Credit, the Commitment and this Agreement; or 

(iv)
 such other representation, warranty and covenant as may be agreed in writing between the Administrative Agent, in its sole discretion, and such Lender. 

(b) In
addition, unless either (i) subsection (a)(i) above is true with respect to a Lender or (ii) a Lender has provided another representation, warranty and covenant in accordance with subsection (a)(iv) above, such Lender further
(A) represents and warrants, as of the date such Person became a Lender party hereto, to, and (B) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit
of, the Administrative Agent and its affiliates and not, for the avoidance of doubt, to or for the benefit of the Borrower or any other Credit Party, that none of the Administrative Agent or any of its affiliates is a fiduciary with respect to the
assets of such Lender involved in such Lender’s entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement (including in connection with the reservation or exercise
of any rights by the Administrative Agent under this Agreement, any Loan Document or any documents related hereto or thereto). 

  
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(c) The
Administrative Agent hereby informs the Lenders that each such Person is not undertaking to provide impartial investment advice, or to give advice in a fiduciary capacity, in connection with the transactions contemplated hereby, and that such Person
has a financial
interest in the transactions contemplated hereby in that such Person or an Affiliate thereof (i) may
receive interest or other payments with respect to the Loans, the Letters of Credit, the Commitment and this Agreement, (ii) may recognize a gain if it extended the Loans, the Letters of Credit or the Commitment for an amount less than the
amount being paid for an interest in the Loans, the Letters of Credit or the Commitment by such Lender or (iii) may receive fees or other payments in connection with the transactions contemplated hereby, the Loan Documents or otherwise,
including structuring fees, commitment fees, arrangement fees, facility fees, upfront fees, underwriting fees, ticking fees, agency fees, administrative agent or collateral agent fees, utilization fees, minimum usage fees, letter of credit fees,
fronting fees, deal-away or alternate transaction fees, amendment fees, processing fees, term out premiums, banker’s acceptance fees, breakage or other early termination fees or fees similar to the foregoing. 
 [Remainder of page left intentionally blank] 

  
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 JURY TRIAL WAIVER. TO THE EXTENT PERMITTED BY LAW, THE BORROWER, THE ADMINISTRATIVE
AGENT AND EACH LENDER WAIVE ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, AMONG THE BORROWER, THE ADMINISTRATIVE AGENT AND THE LENDERS, OR ANY THEREOF, ARISING OUT OF, IN CONNECTION
WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH THIS AGREEMENT OR ANY NOTE OR OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS RELATED THERETO.

 IN WITNESS WHEREOF, the parties have executed and delivered this Credit and Security Agreement as of the date first set forth above. 

 

									
	Address:	 	 800 Delaware Avenue
 Buffalo, New York
14209-2094
	  	        	  	COMPUTER TASK GROUP, INCORPORATED
		 	Attention: Chief Financial Officer,	  		  		 	
					
		 	Treasurer & Senior Vice President	  		  	By:	 	  

		 		  		  		 	John M. Laubacker
		 		  		  		 	Chief Financial Officer, Treasurer & Senior Vice President
				
	Address:	 	127 Public Square	  		  	KEYBANK NATIONAL ASSOCIATION
		 	Cleveland, Ohio 44114-1306	  		  		 	as the Administrative Agent, the Swing Line
		 	Attention: KeyBank Business Capital	  		  		 	Lender, the Issuing Lender and as a
		 		  		  		 	Lender
					
		 		  		  	By:	 	  

		 		  		  		 	Jonathan Roe
		 		  		  		 	Vice President

  
 Signature Page 1 of 2 to

 Credit and Security Agreement 

									
	Address:	 	
                 
	  		  	 MANUFACTURERS AND TRADERS
TRUST COMPANY, as a Lender

					
		 	
                 
	  		  	By:	 	
                     
                                         
                   

		 	
                     
        
	  	    	  	Name:	 	              

		 	Attention:	  		  	Title:	 	  

  
 Signature Page 2 of 2 to

 Credit and Security Agreement 

 SCHEDULE 1 

COMMITMENTS OF LENDERS 
  

													
	 LENDERS
	  	REVOLVING
CREDIT
COMMITMENT
PERCENTAGE	 	 	REVOLVING
CREDIT
COMMITMENT
AMOUNT	 	  	MAXIMUM
AMOUNT	 
	 KeyBank National Association
	  	 	65	% 	 	$	29,250,000	 	  	$	29,250,000	 
		  	 	35	% 	 	$	15,750,000	 	  	$	15,750,000	 
		  	  
	  
	 	 	  
	  
	 	  	  
	  
	 
	 Total Commitment Amount
	  	 	100	% 	 	$	45,000,000.00	 	  	$	45,000,000.00	 
		  	  
	  
	 	 	  
	  
	 	  	  
	  
	 

  
 S-1 

 SCHEDULE 2 

GUARANTORS OF PAYMENT 
 CTG of Buffalo, Inc., a
New York corporation 
 Computer Task Group International, Inc., a Delaware corporation 

  
 S-2 

 SCHEDULE 3 

PLEDGED SECURITIES 
  

															
	 Pledgor
	  	 Name of Subsidiary
	  	Jurisdiction
of Subsidiary	  	Shares	 	  	Certificate
Number	  	Ownership
Percentage	 
	 Computer Task Group, Incorporated
	  	CTG of Buffalo, Inc.	  	New York	  	 	10	 	  	1	  	 	100	% 
	 Computer Task Group, Incorporated
	  	Computer Task Group International, Inc.	  	Delaware	  	 	100	 	  	2	  	 	100	% 
	 Computer Task Group, Incorporated
	  	Computer Task Group of Delaware, Inc.	  	Delaware	  	 	100	 	  	1	  	 	100	% 
	 Computer Task Group, Incorporated
	  	Computer Task Group (Holdings) Limited	  	United
Kingdom	  	 	5000	 	  	1	  	 	100	%* 
	 Computer Task Group, Incorporated
	  	Computer Task Group of Canada, Inc.	  	Ontario,
Canada	  	 	4000	 	  	C-1	  	 	100	%* 
	 Computer Task Group, Incorporated
	  	Computer Task Group Luxembourg PSF S.A.	  	Luxembourg	  	 	27,095	 	  	1	  	 	99	%* 
	 Computer Task Group International, Inc.
	  	Computer Task Information Technology Services Private	  	India	  	 	399,990	 	  	3	  	 	99	%* 
	 Computer Task Group International, Inc.
	  	Computer Task Group Europe B.V	  	Netherlands	  	 	5000	 	  	N/A	  	 	99	%* 
	 Computer Task Group International, Inc.
	  	CTG Government Services, LLC	  	New York	  	 	N/A	 	  	N/A	  	 	100	% 

  

	*	 100% of non-voting shares and equity interests and 65% of voting shares or equity interest of each first-tier
Foreign Subsidiary constitute Pledged Securities. 

  
 S-3 

 SCHEDULE 4 

BORROWING BASE COMPANIES 
 Computer Task Group,
Incorporated, a New York corporation 
 CTG of Buffalo, Inc., a New York corporation 

Computer Task Group International, Inc., a Delaware corporation 

  
 S-4 

 EXHIBIT A 

FORM OF 
 REVOLVING CREDIT NOTE 

 

					
	$                        	  		  	                , 20__

 FOR VALUE RECEIVED, the undersigned, COMPUTER TASK GROUP, INCORPORATED, a New York corporation (the
“Borrower”), promises to pay, on the last day of the Commitment Period, as defined in the Credit Agreement (as hereinafter defined), to the order of
                 (“Lender”) at the main office of KEYBANK NATIONAL ASSOCIATION, as the Administrative Agent, as hereinafter defined, 127 Public Square,
Cleveland, Ohio 44114 1306 the principal sum of 

[                         
                                         
              AND 00/100]
                                         
                                         
  DOLLARS 
 or the aggregate unpaid principal amount of all Revolving Loans, as defined in the Credit Agreement, made by Lender to the Borrower
pursuant to Section 2.2(a) of the Credit Agreement, whichever is less (or, in the event of currency fluctuations
on Alternate Currency Loans, such greater amount as may be outstanding), in lawful money of the United States of America.; provided that Revolving
Loans that are Alternate Currency Loans, as defined in the Credit Agreement, shall be payable in the applicable Alternate Currency, as defined in the Credit Agreement, at the place or places designated in the Credit Agreement. The Borrower also
agrees to pay any additional amount that is required to be paid pursuant to Section 11.23 of the Credit
Agreement.. 

As used herein, “Credit Agreement” means the Credit and Security Agreement dated as of December 21, 2017, among the Borrower,
the Lenders, as defined therein, and KeyBank National Association, as the administrative agent for the Lenders (the “Administrative Agent”), as the same may from time to time be amended, restated or otherwise modified. Each capitalized
term used herein that is defined in the Credit Agreement and not otherwise defined herein shall have the meaning ascribed to it in the Credit Agreement. 

The Borrower also promises to pay interest on the unpaid principal amount of each Revolving Loan from time to time outstanding, from the date
of such Revolving Loan until the payment in full thereof, at the rates per annum that shall be determined in accordance with the provisions of Section 2.3(a) and (c) of the Credit Agreement. Such interest shall be payable on each date
provided for in such Section 2.3(a); provided that interest on any principal portion that is not paid when due shall be payable on demand. 

The portions of the principal sum hereof from time to time representing Base Rate Loans, Daily LIBOR Loans and EurodollarLIBOR Fixed
Rate Loans, interest owing thereon and payments of principal and interest of any thereof, shall be shown on the records of Lender by such method as Lender may generally employ; provided that
failure to make any such entry shall in no way detract from the obligations of the Borrower under this Note or the Credit Agreement. 

All payments of principal of and interest on this Note shall be made in immediately available funds. 

  
 E-1 

 This Note is one of the Revolving Credit Notes referred to in the Credit Agreement and is
entitled to the benefits thereof. Reference is made to the Credit Agreement for a description of the right of the undersigned to make prepayments, the right of the holder hereof to declare this Note due prior to its stated maturity, and other terms
and conditions upon which this Note is issued. 
 Except as expressly provided in the Credit Agreement, the Borrower expressly waives
presentment, demand, protest and notice of any kind. This Note shall be governed by and construed in accordance with the laws of the State of New York. 

JURY TRIAL WAIVER. THE BORROWER, TO THE EXTENT PERMITTED BY LAW, HEREBY WAIVES ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY
DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, AMONG THE BORROWER, THE ADMINISTRATIVE AGENT AND THE LENDERS, OR ANY THEREOF, ARISING OUT OF, IN CONNECTION WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN
CONNECTION WITH THIS NOTE OR ANY OTHER NOTE OR INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS RELATED THERETO. 

 

			
	COMPUTER TASK GROUP, INCORPORATED
		
	By:	 	
                     
                        

	Name:	 	
                     
                                         
   

	Title:	 	
                     
                                         
   

  
 E-2 

 EXHIBIT B 

FORM OF 
 SWING LINE NOTE 

 

					
	$[10,000,000]	  		  	[                     , 20__]

 FOR VALUE RECEIVED, the undersigned, COMPUTER TASK GROUP, INCORPORATED, a New York corporation (the
“Borrower”), promises to pay to the order of KEYBANK NATIONAL ASSOCIATION (the “Swing Line Lender”) at the main office of KEYBANK NATIONAL ASSOCIATION, as the Administrative Agent, as hereinafter defined, 127 Public Square,
Cleveland, Ohio 44114 1306 the principal sum of 
  

					
	[TEN MILLION AND 00/100]	  		  	DOLLARS

 or the aggregate unpaid principal amount of all Swing Loans, as defined in the Credit Agreement (as hereinafter defined), made
by the Swing Line Lender to the Borrower pursuant to Section 2.2(c) of the Credit Agreement, whichever is less, in lawful money of the United States of America on the earlier of the last day of the Commitment Period, as defined in the Credit
Agreement, or, with respect to each Swing Loan, the Swing Loan Maturity Date applicable thereto. 
 As used herein, “Credit
Agreement” means the Credit and Security Agreement dated as of December 21, 2017, among the Borrower, the Lenders, as defined therein, and KeyBank National Association, as the administrative agent for the Lenders (the “Administrative
Agent”), as the same may from time to time be amended, restated or otherwise modified. Each capitalized term used herein that is defined in the Credit Agreement and not otherwise defined herein shall have the meaning ascribed to it in the
Credit Agreement. 
 The Borrower also promises to pay interest on the unpaid principal amount of each Swing Loan from time to time
outstanding, from the date of such Swing Loan until the payment in full thereof, at the rates per annum that shall be determined in accordance with the provisions of Section 2.3(b) and (c) of the Credit Agreement. Such interest shall be
payable on each date provided for in such Section 2.3(b); provided that interest on any principal portion that is not paid when due shall be payable on demand. 

The principal sum hereof from time to time, and the payments of principal and interest thereon, shall be shown on the records of the Swing
Line Lender by such method as the Swing Line Lender may generally employ; provided that failure to make any such entry shall in no way detract from the obligations of the Borrower under this Note or the Credit Agreement. 

All payments of principal of and interest on this Note shall be made in immediately available funds. 

This Note is the Swing Line Note referred to in the Credit Agreement and is entitled to the benefits thereof. Reference is made to the Credit
Agreement for a description of the right of the undersigned to make prepayments, the right of the holder hereof to declare this Note due prior to its stated maturity, and other terms and conditions upon which this Note is issued. 

  
 E-3 

 Except as expressly provided in the Credit Agreement, the Borrower expressly waives
presentment, demand, protest and notice of any kind. This Note shall be governed by and construed in accordance with the laws of the State of New York. 

JURY TRIAL WAIVER. THE BORROWER, TO THE EXTENT PERMITTED BY LAW, HEREBY WAIVES ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE,
WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, AMONG THE BORROWER, THE ADMINISTRATIVE AGENT AND THE LENDERS, OR ANY THEREOF, ARISING OUT OF, IN CONNECTION WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION
WITH THIS NOTE OR ANY OTHER NOTE OR INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS RELATED THERETO. 
  

			
	COMPUTER TASK GROUP, INCORPORATED
		
	By:	 	
                     
                        

	Name:	 	
                     
                                         
   

	Title:	 	
                     
                                         
   

  
 E-4 

 EXHIBIT C 

FORM OF 
 NOTICE OF LOAN 

                    ,
20         
 KeyBank National Association, as the Administrative Agent 

127 Public Square 
 Cleveland, Ohio 44114-1306 

Attention: KeyBank Business Capital 
 Ladies and Gentlemen: 

The undersigned, Computer Task Group, Incorporated, a New York corporation (the “Borrower”) refers to the Credit and Security
Agreement, dated as of December 21, 2017 (as the same may from time to time be amended, restated or otherwise modified, the “Credit Agreement”, the terms defined therein being used herein as therein defined), among the undersigned,
the Lenders, as defined in the Credit Agreement, and KeyBank National Association, as the administrative agent for the Lenders (the “Administrative Agent”), and hereby gives you notice, pursuant to Section 2.5 of the Credit Agreement
that the Borrower hereby requests a Loan under the Credit Agreement, and in connection therewith sets forth below the information relating to the Loan (the “Proposed Loan”) as required by Section 2.5 of the Credit Agreement: 

 

	 	(a)	 The Business Day of the Proposed Loan is
                    , 20__. 

  

	 	(b)	 The amount of the Proposed Loan is
$                    . 

  

	 	(c)	 The Proposed Loan is to be a Base Rate Loan
             / Eurodollar Loan              / Daily LIBOR
             / Alternate Currency Loan
             / Swing Loan             (Check one.) 

 

	 	(d)	 If the Proposed Loan is a
EurodollarLIBOR Fixed Rate Loan, the Interest Period requested is one month
            , two months             , three months
            , six months             (Check one.) 

 

	 	(e)	 If the Proposed Loan is an
Alternate Currency Loan, the Alternate Currency requested is                     . 

The undersigned hereby certifies on behalf of the Borrower that the following statements are true on the date hereof, and will be true on the
date of the Proposed Loan: 
 (i) the representations and warranties contained in each Loan Document are correct, before and
after giving effect to the Proposed Loan and the application of the proceeds therefrom, as though made on and as of such date; 

  
 E-5 

 (ii) no event has occurred and is continuing, or would result from such
Proposed Loan, or the application of proceeds therefrom, that constitutes a Default or Event of Default; and 
 (iii) the
conditions set forth in Section 2.5 and Article IV of the Credit Agreement have been satisfied. 
  

			
	COMPUTER TASK GROUP, INCORPORATED
		
	By:	 	
                     
                        

	Name:	 	
                     
                                         
   

	Title:	 	
                     
                                         
   

  
 E-6 

 EXHIBIT D 

FORM OF 
 COMPLIANCE CERTIFICATE

 For [the Quarterly Reporting Period][fiscal year] ended
                     
 THE UNDERSIGNED HEREBY
CERTIFIES THAT: 
 (1) I am the duly elected [President] or [Chief Financial Officer] of Computer Task Group, Incorporated, a New York
corporation (the “Borrower”); 
 (2) I am familiar with the terms of that certain Credit and Security Agreement, dated as of
December 21, 2017, among the Borrower, the lenders party thereto (together with their respective successors and assigns, collectively, the “Lenders”), as defined in the Credit Agreement, and KeyBank National Association, as the
Administrative Agent (as the same may from time to time be amended, restated or otherwise modified, the “Credit Agreement”, the terms defined therein being used herein as therein defined), and the terms of the other Loan Documents, and I
have made, or have caused to be made under my supervision, a review in reasonable detail of the transactions and condition of the Borrower and its Subsidiaries during the accounting period covered by the attached financial statements; 

(3) The review described in paragraph (2) above did not disclose, and I have no knowledge of, the existence of any condition or event that
constitutes or constituted a Default or Event of Default, at the end of the accounting period covered by the attached financial statements or as of the date of this Certificate; 

(4) The representations and warranties made by the Borrower contained in each Loan Document are true and correct as though made on and as of
the date hereof; and 
 (5) Set forth on Attachment I hereto are calculations of the financial covenants set forth in Section 5.7 of the
Credit Agreement, which calculations show compliance with the terms thereof. 
 IN WITNESS WHEREOF, I have signed this certificate the
         day of             , 20        . 

 

			
	COMPUTER TASK GROUP, INCORPORATED

 
			
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  
 E-7 

 EXHIBIT E 

FORM OF 
 ASSIGNMENT AND ASSUMPTION
AGREEMENT 
 This Assignment and Assumption Agreement (this “Assignment Agreement”) is dated as of the Effective Date set forth
below and is entered into by and between [the][each]1 Assignor identified in Section 1 below ([the][each, an] “Assignor”) and [the][each] 2 Assignee identified in Section 2 below ([the][each, an] “Assignee”). [It is understood and agreed that the rights and obligations of [the Assignors][the Assignees]3 hereunder are several and not joint.]4 Capitalized terms used but not defined herein shall have the meanings given to them in the Credit and
Security Agreement identified below (as amended, the “Credit Agreement”), receipt of a copy of which is hereby acknowledged by [the][each] Assignee. The Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed
to and incorporated herein by reference and made a part of this Assignment Agreement as if set forth herein in full. 
 For an agreed
consideration, [the][each] Assignor hereby irrevocably sells and assigns to [the Assignee][the respective Assignees], and [the][each] Assignee hereby irrevocably purchases and assumes from [the Assignor][the respective Assignors], subject to and in
accordance with the Standard Terms and Conditions and the Credit Agreement, as of the Effective Date inserted by the Administrative Agent as contemplated below (a) all of [the Assignor’s][the respective Assignors’] rights and
obligations in [its capacity as a Lender][their respective capacities as Lenders] under the Credit Agreement and any other documents or instruments delivered pursuant thereto to the extent related to the amount and percentage interest identified
below of all of such outstanding rights and obligations of [the Assignor][the respective Assignors] under the respective facilities identified below (including without limitation any letters of credit, guaranties, and swing loans included in such
facilities), and (b) to the extent permitted to be assigned under applicable Law, all claims, suits, causes of action and any other right of [the Assignor (in its capacity as a Lender)][the respective Assignors (in their respective capacities
as Lenders)] against any Person, whether known or unknown, arising under or in connection with the Credit Agreement, any other documents or instruments delivered pursuant thereto or the loan transactions governed thereby or in any way based on or
related to any of the foregoing, including, but not limited to, contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity related to the rights and obligations sold and assigned pursuant to subpart
(a) above (the rights and obligations sold and assigned by [the][any] Assignor to [the][any] Assignee pursuant to subparts (a) and (b) above being referred to herein collectively as [the][an] “Assigned Interest”). Each such
sale and assignment is without recourse 
  

	1 	 For bracketed language here and elsewhere in this form relating to the Assignor(s), if the assignment is from a
single Assignor, choose the first bracketed language. If the assignment is from multiple Assignors, choose the second bracketed language. 

	2 	 For bracketed language here and elsewhere in this form relating to the Assignee(s), if the assignment is to a
single Assignee, choose the first bracketed language. If the assignment is to multiple Assignees, choose the second bracketed language. 

	3 	 Select as appropriate. 

	4 	 Include bracketed language if there are either multiple Assignors or multiple Assignees. 

  
 E-8 

 to [the][any] Assignor and, except as expressly provided in this Assignment Agreement, without
representation or warranty by [the][any] Assignor. 
  

					
	1.	  	Assignor[s]:	  	                                      
          
			
		  		  	                                      
          
			
	2.	  	Assignee[s]:	  	                                      
          
			
		  		  	                                      
          
		  		  	[Assignee is an [Affiliate][Approved Fund] of [identify Lender]
			
	3.	  	Borrower:	  	Computer Task Group, Incorporated
			
	4.	  	Administrative Agent:	  	[KeyBank National Association], as the administrative agent under the Credit Agreement
			
	5.	  	Credit Agreement:	  	[The [$45,000,000] Credit and Security Agreement dated as of December 21, 2017 among Computer Task Group, Incorporated, the Lenders parties thereto, [KeyBank National Association], as Administrative Agent.]
			
	6.	  	Assigned Interest[s]:	  	

  

																					
	 Assignor[s]
	  	 Assignee[s]
	  	 Commitment Assigned
	  	Aggregate
Amount of
Commitment/Loans
for all
Lenders	 	  	Amount of
Commitment/
Loans
Assigned	 	  	Percentage
Assigned of
Commitment /
Loans5	 	  	CUSIP
Number	 
		  		  		  	$	         	 	  	$	         	 	  	 	%	 	  			
		  		  		  	$	         	 	  	$	         	 	  	 	%	 	  			
		  		  		  	$	         	 	  	$	         	 	  	 	%	 	  			

  

					
	17.	  	Trade Date:	  	                                      
          ]6

 8.          Effective Date:
                                         
                , 20          [TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF
RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.] 
 [Remainder of page intentionally left blank.] 

 

	5 	 Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans of all Lenders thereunder.

	6 	 To be completed if the Assignor(s) and the Assignee(s) intend that the minimum assignment amount is to be
determined as of the Trade Date. 

  
 E-9 

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

 

			
	ASSIGNOR[S]
	[NAME OF ASSIGNOR]

 
			
		
	By:	 	 
	Title:	 	

 
			
	
	[NAME OF ASSIGNOR]

 
			
		
	By:	 	 
	Title:	 	

 
			
	
	ASSIGNEE[S]
	[NAME OF ASSIGNEE]

 
			
		
	By:	 	 
	Title:	 	

 
			
	
	[NAME OF ASSIGNEE]

 
			
		
	By:	 	 
	Title:	 	

  

			
	[Consented to and]7 Accepted:
	
	[KEYBANK NATIONAL ASSOCIATION], as Administrative Agent
		
	By:	 	
	Title:	 	
	
	[Consented to:]8
	
	[NAME OF RELEVANT PARTY]
		
	By:	 	
	Title:	 	

  
  

	7 	 To be added only if the consent of the Administrative Agent is required by the terms of the Credit Agreement.

	8 	 To be added only if the consent of the Borrower and/or other parties is required by the terms of the Credit
Agreement. 

  
 E-10 

 ANNEX 1 

STANDARD TERMS AND CONDITIONS FOR 

ASSIGNMENT AND ASSUMPTION AGREEMENT 

1. Representations and Warranties. 

1.1 Assignor[s]. [The][Each] Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of [the][the
relevant] Assigned Interest, (ii) [the][such] Assigned Interest is free and clear of any lien, encumbrance or other adverse claim, (iii) it has full power and authority, and has taken all action necessary, to execute and deliver this
Assignment Agreement and to consummate the transactions contemplated hereby, and (iv) it is not a Defaulting Lender; and (b) assumes no responsibility with respect to (i) any statements, warranties or representations made in or in
connection with the Credit Agreement or any other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the financial condition of
the Borrower, any of its Subsidiaries or Affiliates or any other Person obligated in respect of any Loan Document, or (iv) the performance or observance by the Borrower, any of its Subsidiaries or Affiliates or any other Person of any of their
respective obligations under any Loan Document. 
 1.2. Assignee[s]. [The][Each] Assignee (a) represents and warrants that
(i) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment Agreement and to consummate the transactions contemplated hereby and to become a Lender under the Credit Agreement, (ii) it
meets all the requirements to be an assignee under Section 11.9 of the Credit Agreement (subject to such consents, if any, as may be required thereunder), (iii) from and after the Effective Date, it shall be bound by the provisions of the
Credit Agreement as a Lender thereunder and, to the extent of [the][the relevant] Assigned Interest, shall have the obligations of a Lender thereunder, (iv) it is sophisticated with respect to decisions to acquire assets of the type represented
by the Assigned Interest and either it, or the Person exercising discretion in making its decision to acquire the Assigned Interest, is experienced in acquiring assets of such type, (v) it has received a copy of the Credit Agreement, and has
received or has been accorded the opportunity to receive copies of the most recent financial statements delivered pursuant to Section 5.3 thereof, as applicable, and such other documents and information as it deems appropriate to make its own
credit analysis and decision to enter into this Assignment Agreement and to purchase [the][such] Assigned Interest, (vi) it has, independently and without reliance upon the Administrative Agent or any other Lender, and based on such documents
and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Assignment Agreement and to purchase [the][such] Assigned Interest, and (vii) if it is a Foreign Lender, attached to the Assignment
Agreement is any documentation required to be delivered by it pursuant to the terms of the Credit Agreement, duly completed and executed by [the][such] Assignee; and (b) agrees that (i) it will, independently and without reliance on the
Administrative Agent, [the][any] Assignor or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents,
and (ii) it will perform in accordance with their terms all of the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender. 

  
 E-11 

 2. Payments. From and after the Effective Date, the Administrative Agent shall make
all payments in respect of [the][each] Assigned Interest (including payments of principal, interest, fees and other amounts) to [the][the relevant] Assignor for amounts which have accrued to but excluding the Effective Date and to [the][the
relevant] Assignee for amounts which have accrued from and after the Effective Date. Notwithstanding the foregoing, the Administrative Agent shall make all payments of interest, fees or other amounts paid or payable in kind from and after the
Effective Date to [the][the relevant] Assignee. 
 3. General Provisions. This Assignment Agreement shall be binding upon, and inure
to the benefit of, the parties hereto and their respective successors and assigns. This Assignment Agreement may be executed in any number of counterparts, which together shall constitute one instrument. Delivery of an executed counterpart of a
signature page of this Assignment Agreement by facsimile or electronic communication shall be effective as delivery of a manually executed counterpart of this Assignment Agreement. This Assignment Agreement shall be governed by, and construed in
accordance with, the law of the State of New York. 

  
 E-12 

 EXHIBIT F-1 

FORM OF 
 U.S. TAX COMPLIANCE
CERTIFICATE 
 (For Foreign Lenders That Are Not Partnerships For U.S. Federal Income Tax Purposes) 

Reference is hereby made to that certain Credit and Security Agreement, dated as of December 21, 2017 (the “Credit Agreement”),
among Computer Task Group, Incorporated, a New York corporation (the “Borrower”), the Lenders, as defined therein, and KeyBank National Association, as the administrative agent for the Lenders (the “Administrative Agent”). 

Pursuant to the provisions of Section 3.2 of the Credit Agreement, the undersigned hereby certifies that (a) it is the sole record
and beneficial owner of the Loan(s) (as well as any Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (b) it is not a bank within the meaning of Section 881(c)(3)(A) of the Code, (c) it is not a
ten percent (10%) shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code and (iv) it is not a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code.

 The undersigned has furnished the Administrative Agent and the Borrower with a certificate of its non-U.S. Person status on IRS Form
W-8BEN-E. By executing this certificate, the undersigned agrees that (i) if the information provided on this certificate changes, the undersigned shall promptly so inform the Borrower and the Administrative Agent, and (ii) the undersigned
shall have at all times furnished the Borrower and the Administrative Agent with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two
calendar years preceding such payments. 
 Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have
the meanings given to them in the Credit Agreement. 
  

			
	[NAME OF LENDER]
		
	By:	 	 
		 	 Name:
 Title:

	Date:                     , 20[    ]

  
 E-13 

 EXHIBIT F-2 

FORM OF 
 U.S. TAX COMPLIANCE
CERTIFICATE 
 (For Foreign Participants That Are Not Partnerships For U.S. Federal Income Tax Purposes) 

Reference is hereby made to that certain Credit and Security Agreement, dated as of December 21, 2017 (the “Credit Agreement”),
among Computer Task Group, Incorporated, a New York corporation (the “Borrower”), the Lenders, as defined therein, and KeyBank National Association, as the administrative agent for the Lenders (the “Administrative Agent”). 

Pursuant to the provisions of Section 3.2 of the Credit Agreement, the undersigned hereby certifies that (a) it is the sole record
and beneficial owner of the participation in respect of which it is providing this certificate, (b) it is not a bank within the meaning of Section 881(c)(3)(A) of the Code, (c) it is not a ten percent (10%) shareholder of the
Borrower within the meaning of Section 871(h)(3)(B) of the Code, and (d) it is not a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code. 

The undersigned has furnished its participating Lender with a certificate of its non-U.S. Person status on IRS Form W-8BEN-E. By executing
this certificate, the undersigned agrees that (i) if the information provided on this certificate changes, the undersigned shall promptly so inform such Lender in writing, and (ii) the undersigned shall have at all times furnished such
Lender with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments. 

Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit
Agreement. 
  

			
	[NAME OF PARTICIPANT]
		
	By:	 	 
		 	 Name:
 Title:

	Date:                     , 20[    ]

  
 E-14 

 EXHIBIT F-3 

FORM OF 
 U.S. TAX COMPLIANCE
CERTIFICATE 
 (For Foreign Participants That Are Partnerships For U.S. Federal Income Tax Purposes) 

Reference is hereby made to that certain Credit and Security Agreement, dated as of December 21, 2017 (the “Credit Agreement”),
among Computer Task Group, Incorporated, a New York corporation (the “Borrower”), the Lenders, as defined therein, and KeyBank National Association, as the administrative agent for the Lenders (the “Administrative Agent”). 

Pursuant to the provisions of Section 3.2 of the Credit Agreement, the undersigned hereby certifies that (a) it is the sole record
owner of the participation in respect of which it is providing this certificate, (b) its direct or indirect partners/members are the sole beneficial owners of such participation, (c) with respect such participation, neither the undersigned
nor any of its direct or indirect partners/members is a bank extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or business within the meaning of Section 881(c)(3)(A) of the Code, (d) none of its
direct or indirect partners/members is a ten percent (10%) shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code and (e) none of its direct or indirect partners/members is a controlled foreign corporation
related to the Borrower as described in Section 881(c)(3)(C) of the Code. 
 The undersigned has furnished its participating Lender
with IRS Form W-8IMY accompanied by one of the following forms from each of its partners/members that is claiming the portfolio interest exemption: (i) an IRS Form W-8BEN or W-8BEN-E or (ii) an IRS Form W-8IMY accompanied by an IRS Form
W-8BEN or W-8BEN-E from each of such partner’s/member’s beneficial owners that is claiming the portfolio interest exemption. By executing this certificate, the undersigned agrees that (A) if the information provided on this
certificate changes, the undersigned shall promptly so inform such Lender and (B) the undersigned shall have at all times furnished such Lender with a properly completed and currently effective certificate in either the calendar year in which
each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments. 
 Unless otherwise defined
herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement. 
  

			
	[NAME OF PARTICIPANT]
		
	By:	 	 
		 	 Name:
 Title:

	
	Date:                     , 20[    ]

  
 E-15 

 EXHIBIT F-4 

FORM OF 
 U.S. TAX COMPLIANCE
CERTIFICATE 
 (For Foreign Lenders That Are Partnerships For U.S. Federal Income Tax Purposes) 

Reference is hereby made to that certain Credit and Security Agreement, dated as of December 21, 2017 (the “Credit Agreement”),
among Computer Task Group, Incorporated, a New York corporation (the “Borrower”), the Lenders, as defined therein, and KeyBank National Association, as the administrative agent for the Lenders (the “Administrative Agent”). 

Pursuant to the provisions of Section 3.2 of the Credit Agreement, the undersigned hereby certifies that (a) it is the sole record
owner of the Loan(s) (as well as any Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (b) its direct or indirect partners/members are the sole beneficial owners of such Loan(s) (as well as any Note(s)
evidencing such Loan(s)), (c) with respect to the extension of credit pursuant to the Credit Agreement or any other Loan Document, neither the undersigned nor any of its direct or indirect partners/members is a bank extending credit pursuant to
a loan agreement entered into in the ordinary course of its trade or business within the meaning of Section 881(c)(3)(A) of the Code, (d) none of its direct or indirect partners/members is a ten percent (10%) shareholder of the
Borrower within the meaning of Section 871(h)(3)(B) of the Code and (e) none of its direct or indirect partners/members is a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code. 

The undersigned has furnished the Administrative Agent and the Borrower with IRS Form W-8IMY accompanied by one of the following forms from
each of its partners/members that is claiming the portfolio interest exemption: (i) an IRS Form W-8BEN or W-8BEN-E or (ii) an IRS Form W-8IMY accompanied by an IRS Form W-8BEN or W-8BEN-E from each of such partner’s/member’s
beneficial owners that is claiming the portfolio interest exemption. By executing this certificate, the undersigned agrees that (A) if the information provided on this certificate changes, the undersigned shall promptly so inform the Borrower
and the Administrative Agent, and (B) the undersigned shall have at all times furnished the Borrower and the Administrative Agent with a properly completed and currently effective certificate in either the calendar year in which each payment is
to be made to the undersigned, or in either of the two calendar years preceding such payments. 
 Unless otherwise defined herein, terms
defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement. 
  

			
	[NAME OF LENDER]
		
	By:	 	 
		 	 Name:
 Title:

	
	Date:                     , 20[    ]

  
 E-16jpmcreditagreementfinal1

                                                                                                                                                                                                                                                                                                                                                         CREDIT AGREEMENT                                                                             dated as of                                                                         December 19, 2019                                                                              among                                                        HARMONIC INC. and HARMONIC INTERNATIONAL GmbH                                                                               and                                                                   JPMORGAN CHASE BANK, N.A.                                                                                                                                                                                                 

 

                             TABLE OF CONTENTS                                                                              Page   ARTICLE I DEFINITIONS ......................................................................................................................... 1        SECTION 1.01 Defined Terms ..................................................................................................... 1        SECTION 1.02 Classification of Loans and Borrowings ........................................................... 28        SECTION 1.03 Terms Generally ................................................................................................ 28        SECTION 1.04 Accounting Terms; GAAP ................................................................................ 29        SECTION 1.05 Interest Rates; LIBOR Notification .................................................................. 29        SECTION 1.06 Status of Obligations ......................................................................................... 30        SECTION 1.07 Times of Day ..................................................................................................... 30        SECTION 1.08 Rounding ........................................................................................................... 30   ARTICLE II THE CREDITS ...................................................................................................................... 30        SECTION 2.01 Commitments .................................................................................................... 30        SECTION 2.02 Loans and Borrowings ...................................................................................... 30        SECTION 2.03 Borrowing Procedures; Requests for Revolving Borrowings ........................... 31        SECTION 2.04 Letters of Credit ................................................................................................ 32        SECTION 2.05 Funding of Borrowings ..................................................................................... 35        SECTION 2.06 Interest Elections ............................................................................................... 35        SECTION 2.07 Termination and Reduction of Commitment .................................................... 36        SECTION 2.08 Repayment of Loans; Evidence of Debt ........................................................... 36        SECTION 2.09 Prepayment of Loans......................................................................................... 37        SECTION 2.10 Fees ................................................................................................................... 38        SECTION 2.11 Interest ............................................................................................................... 38        SECTION 2.12 Alternate Rate of Interest; Illegality .................................................................. 39        SECTION 2.13 Increased Costs ................................................................................................. 41        SECTION 2.14 Break Funding Payments .................................................................................. 42        SECTION 2.15 Withholding of Taxes; Gross-Up ...................................................................... 42        SECTION 2.16 Payments Generally; Allocation of Proceeds .................................................... 45        SECTION 2.17 Returned Payments............................................................................................ 46        SECTION 2.18 Determination of Dollar Amounts .................................................................... 47        SECTION 2.19 Judgment Currency ........................................................................................... 47   ARTICLE III REPRESENTATIONS AND WARRANTIES .................................................................... 47        SECTION 3.01 Organization; Powers ........................................................................................ 47        SECTION 3.02 Authorization; Enforceability ............................................................................ 47        SECTION 3.03 Governmental Approvals; No Conflicts ............................................................ 48        SECTION 3.04 Financial Condition; No Material Adverse Change .......................................... 48        SECTION 3.05 Properties .......................................................................................................... 48        SECTION 3.06 Litigation and Environmental Matters .............................................................. 48        SECTION 3.07 Compliance with Laws and Agreements; No Default ....................................... 49        SECTION 3.08 Investment Company Status .............................................................................. 49        SECTION 3.09 Taxes ................................................................................................................. 49        SECTION 3.10 Compliance with Swiss Non-Bank Rules ......................................................... 49        SECTION 3.11 ERISA ............................................................................................................... 49        SECTION 3.12 Disclosure .......................................................................................................... 49        SECTION 3.13 Material Agreements ......................................................................................... 50        SECTION 3.14 Solvency ............................................................................................................ 50        SECTION 3.15 Insurance ........................................................................................................... 50                                          i 

 

                                                                                    SECTION 3.16 Capitalization and Subsidiaries ......................................................................... 50        SECTION 3.17 Security Interest in Collateral ............................................................................ 51        SECTION 3.18 Employment Matters ......................................................................................... 51        SECTION 3.19 Margin Regulations ........................................................................................... 51        SECTION 3.20 Use of Proceeds ................................................................................................. 51        SECTION 3.21 No Burdensome Restrictions............................................................................. 51        SECTION 3.22 Anti-Corruption Laws and Sanctions ................................................................ 51        SECTION 3.23 Plan Assets; Prohibited Transactions ................................................................ 52   ARTICLE IV CONDITIONS ..................................................................................................................... 52        SECTION 4.01 Effective Date ................................................................................................... 52        SECTION 4.02 Each Credit Event ............................................................................................. 54   ARTICLE V AFFIRMATIVE COVENANTS ........................................................................................... 55        SECTION 5.01 Financial Statements; Borrowing Base and Other Information ........................ 55        SECTION 5.02 Notices of Material Events ................................................................................ 57        SECTION 5.03 Existence; Conduct of Business ........................................................................ 58        SECTION 5.04 Payment of Obligations ..................................................................................... 58        SECTION 5.05 Maintenance of Properties ................................................................................. 58        SECTION 5.06 Books and Records; Inspection Rights ............................................................. 58        SECTION 5.07 Compliance with Laws and Material Contractual Obligations ......................... 59        SECTION 5.08 Compliance with Swiss Non-Bank Rules ......................................................... 59        SECTION 5.09 Use of Proceeds ................................................................................................. 59        SECTION 5.10 Accuracy of Information ................................................................................... 59        SECTION 5.11 Insurance ........................................................................................................... 59        SECTION 5.12 Casualty and Condemnation ............................................................................. 60        SECTION 5.13 Depository Banks .............................................................................................. 60        SECTION 5.14 Additional Collateral; Further Assurances ........................................................ 60        SECTION 5.15 Post-Closing Obligations .................................................................................. 61   ARTICLE VI NEGATIVE COVENANTS ................................................................................................ 61        SECTION 6.01 Indebtedness ...................................................................................................... 61        SECTION 6.02 Liens .................................................................................................................. 63        SECTION 6.03 Fundamental Changes ....................................................................................... 65        SECTION 6.04 Investments, Loans, Advances, Guarantees and Acquisitions .......................... 65        SECTION 6.05 Asset Sales ........................................................................................................ 67        SECTION 6.06 Sale and Leaseback Transactions ...................................................................... 68        SECTION 6.07 Swap Agreements ............................................................................................. 68        SECTION 6.08 Restricted Payments; Certain Payments of Indebtedness.................................. 68        SECTION 6.09 Transactions with Affiliates .............................................................................. 69        SECTION 6.10 Restrictive Agreements ..................................................................................... 70        SECTION 6.11 Amendment of Material Documents ................................................................. 70        SECTION 6.12 Financial Covenants .......................................................................................... 70   ARTICLE VII EVENTS OF DEFAULT .................................................................................................... 71   ARTICLE VIII MISCELLANEOUS.......................................................................................................... 74        SECTION 8.01 Notices .............................................................................................................. 74        SECTION 8.02 Waivers; Amendments ...................................................................................... 75        SECTION 8.03 Expenses; Indemnity; Damage Waiver ............................................................. 75        SECTION 8.04 Successors and Assigns ..................................................................................... 77                                        ii  

 

                                                                                    SECTION 8.05 Survival ............................................................................................................. 78        SECTION 8.06 Counterparts; Integration; Effectiveness; Electronic Execution ....................... 79        SECTION 8.07 Severability ....................................................................................................... 79        SECTION 8.08 Right of Setoff ................................................................................................... 79        SECTION 8.09 Governing Law; Jurisdiction; Consent to Service of Process ........................... 80        SECTION 8.10 California Judicial Reference ............................................................................ 80        SECTION 8.11 WAIVER OF JURY TRIAL ............................................................................. 82        SECTION 8.12 Headings ............................................................................................................ 82        SECTION 8.13 Confidentiality .................................................................................................. 82        SECTION 8.14 Non-reliance; Violation of Law ........................................................................ 83        SECTION 8.15 USA PATRIOT Act .......................................................................................... 83        SECTION 8.16 Disclosure .......................................................................................................... 83        SECTION 8.17 Interest Rate Limitation..................................................................................... 83        SECTION 8.18 No Fiduciary Duty, etc ...................................................................................... 83        SECTION 8.19 Marketing Consent ............................................................................................ 84   ARTICLE IX LOAN GUARANTY ........................................................................................................... 84        SECTION 9.01 Guaranty ............................................................................................................ 84        SECTION 9.02 Guaranty of Payment .......................................................................................... 85        SECTION 9.03 No Discharge or Diminishment of Loan Guaranty ............................................. 85        SECTION 9.04 Defenses Waived ............................................................................................... 85        SECTION 9.05 Rights of Subrogation ......................................................................................... 86        SECTION 9.06 Reinstatement; Stay of Acceleration ................................................................... 86        SECTION 9.07 Information ........................................................................................................ 86        SECTION 9.08 Termination ....................................................................................................... 86        SECTION 9.09 Taxes ................................................................................................................. 86        SECTION 9.10 Maximum Liability ............................................................................................ 87        SECTION 9.11 Contribution ...................................................................................................... 87        SECTION 9.12 Liability Cumulative ......................................................................................... 87        SECTION 9.13 Keepwell ........................................................................................................... 88   ARTICLE X THE BORROWER REPRESENTATIVE. ........................................................................... 88        SECTION 10.01 Appointment; Nature of Relationship ............................................................. 88        SECTION 10.02 Powers ............................................................................................................. 88        SECTION 10.03 Employment of Agents ................................................................................... 88        SECTION 10.04 Notices ............................................................................................................ 88        SECTION 10.05 Successor Borrower Representative ................................................................ 89        SECTION 10.06 Execution of Loan Documents; Borrowing Base Certificate .......................... 89        SECTION 10.07 Reporting ......................................................................................................... 89   ARTICLE XI LIMITATIONS FOR SWISS BORROWER. ...................................................................... 89        SECTION 11.01 Limitations for Swiss Borrower ...................................................................... 89    EXHIBITS:  Exhibit A – Borrowing Base Certificate   Exhibit B – Compliance Certificate   Exhibit C – Joinder Agreement                                        iii  

 

      CREDIT  AGREEMENT  dated  as  of  [●]  (as  it  may  be  amended,  restated,  supplemented or  otherwise modified from time to time, this “Agreement”), among HARMONIC INC. and HARMONIC  INTERNATIONAL GmbH, as Borrowers, the other Loan Parties party hereto, and JPMORGAN CHASE  BANK, N.A., as Lender.               The parties hereto agree as follows:                                     ARTICLE I                                    Definitions         SECTION 1.01   Defined  Terms.  As  used  in  this  Agreement,  the  following  terms  have  the  meanings specified below:         “Account” has the meaning assigned to such term in the Security Agreement.         “Account Debtor” means any Person obligated on an Account.         “Acquisition” means any transaction, or any series of related transactions, consummated on or after  the Effective Date, by which any Loan Party or any Subsidiary (a) acquires any going business or all or  substantially all of the assets of any Person, whether through purchase of assets, merger or otherwise or (b)  directly or indirectly acquires (in one transaction or as the most recent transaction in a series of transactions)  at least a majority (in number of votes) of the Equity Interests of a Person which has ordinary voting power  for the election of directors or other similar management personnel of a Person (other than Equity Interests  having such power only by reason of the happening of a contingency) or a majority of the outstanding  Equity Interests of a Person.         “Adjusted LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest Period or  for any CBFR Borrowing, an interest rate per annum (rounded upwards, if necessary, to the next 1/16 of  1%) equal to (a) the LIBO Rate for such Interest Period multiplied by (b) the Statutory Reserve Rate.         “Adjusted One Month LIBOR Rate” means, for any day, an interest rate per annum equal to the  sum of (i) 2.50% per annum plus (ii) the Adjusted LIBO Rate for a one-month interest period on such day  (or if such day is not a Business Day, the immediately preceding Business Day); provided that, for the  avoidance  of  doubt,  the  Adjusted  LIBO  Rate  for  any  day  shall  be  based  on  the LIBO  Screen  Rate at  approximately 11:00 a.m. London time on such day.         “Adjusted Quick Ratio” means, on any date, the ratio of (a) Quick Assets of the Company and its  Subsidiaries on such date to (b) current liabilities of the Company and its Subsidiaries on such date, minus  (i) the current portion of deferred revenue, minus (ii) liabilities related solely to (x) the financing of R&D  Accounts Receivables and (y) foreign exchange hedging transactions, minus (iii) the current portion of the  Convertible  Notes  on  such  date, minus (iv)  the  current  portion  of  the  operating lease  liability  of  the  Company and its Subsidiaries on such date, all determined on a consolidated basis in accordance with  GAAP.         “Affiliate” means, with respect to a specified Person, another Person that directly, or indirectly  through one or more intermediaries, Controls or is Controlled by or is under common Control with the  specified Person.         “Aggregate Availability” means, at any time, the aggregate Availability of all the Borrowers.         “Aggregate Borrowing Base” means the aggregate of the Borrowing Bases of all the Borrowers.                                          1 

 

                                                                                                                                                                                                                                                 “Alternative Currency” means AED, EUR, GBP, MYR, AUD, CAD, MXN and any additional  currencies determined after the Effective Date by mutual agreement of the Borrower Representative and  Lender; provided that each such currency is a lawful currency that is readily available, freely transferable  and not restricted, able to be converted into dollars and available in the London interbank deposit market.         “Anti-Corruption Laws” means all laws, rules, and regulations of any jurisdiction applicable to any  Borrower or any of its Subsidiaries from time to time concerning or relating to bribery or corruption.          “Applicable Rate” means, for any day, (a) with respect to any CBFR Loan, 1.25% annum, (b) with  respect to any Eurodollar Loan, 2.25% per annum, and (c) with respect to the commitment fees payable  under Section 2.10(a), 0.40% per annum.           “Approved  Fund” means  any  Person  (other  than  a  natural  person)  that  is  engaged  in  making,  purchasing, holding or investing in bank loans and similar extensions of credit in the ordinary course of its  business and that is administered or managed by (a) the Lender, (b) an Affiliate of the Lender or (c) an  entity or an Affiliate of an entity that administers or manages the Lender.         “Availability” means, with respect to each Borrower, at any time, an amount equal to (a) the lesser  of (i) the Revolving Commitment and (ii) the Borrowing Base of such Borrower minus (b) the Revolving  Exposure.           “Availability Period” means the period from and including the Effective Date to but excluding the  earlier of the Revolving Credit Maturity Date and the date of termination of the Revolving Commitment.         “Banking Services” means each and any of the following bank services provided to any Loan Party  or any Subsidiary by the Lender  or  any  of  its  Affiliates:  (a)  credit  cards for  commercial  customers  (including, without limitation, “commercial credit cards” and purchasing cards), (b) stored value cards, (c)  merchant  processing  services, and  (d)  treasury  management  services  (including,  without  limitation,  controlled disbursement, automated clearinghouse transactions, return items, any direct debit scheme or  arrangement, overdrafts and interstate depository network services and cash pooling services).           “Banking  Services  Obligations” means  any  and  all  obligations  of the  Loan  Parties  or  their  Subsidiaries, whether absolute or contingent and howsoever and whensoever created, arising, evidenced or  acquired  (including all  renewals,  extensions  and  modifications  thereof  and  substitutions therefor)  in  connection with Banking Services.         “Beneficial  Ownership  Certification” means  a  certification  regarding  beneficial  ownership  as  required by the Beneficial Ownership Regulation.          “Beneficial Ownership Regulation” means 31 C.F.R. § 1010.230.         “Borrower” or “Borrowers” means,  individually  or  collectively,  the  Company and the  Swiss  Borrower.          “Borrower Representative” has the meaning assigned to such term in Section 10.01.           “Borrowing” means Revolving Loans of the same Type, made, converted or continued on the same  date and, in the case of Eurodollar Loans, as to which a single Interest Period is in effect.                                          2 

 

                                                                                                                                                                                                                                                 “Borrowing Base” means, at any time, with respect to each Borrower, the sum of (a) 85% of such  Borrower’s Eligible Accounts at such time, plus (b) 50% of such Borrower’s Eligible Inventory, valued at  the lower of cost or market value, determined on a first-in-first-out basis, minus (c) Reserves related to such  Borrower.  The Lender may, in its Permitted Discretion, reduce the advance rates set forth above, adjust  Reserves or reduce one or more of the other elements used in computing the Borrowing Base.           “Borrowing Base Certificate” means a certificate, signed and certified as accurate and complete in  all material respects by a Financial Officer of the Borrower Representative, in substantially the form of  Exhibit A or another form which is acceptable to the Lender in its sole discretion.         “Borrowing  Request” means  a  request  by  the Borrower Representative for  a  Borrowing  in  accordance with Section 2.03, which shall be in a form reasonably satisfactory to, or provided by, the  Lender.         “Burdensome Restrictions” means any consensual encumbrance or restriction of the type described  in clause (a) or (b) of Section 6.10.          “Business Day” means any day that is not a Saturday, Sunday or other day on which commercial  banks in New York City are authorized or required by law to remain closed; provided that, when used in  connection with a Eurodollar Loan, the term “Business Day” shall also exclude any day on which banks  are not open for general business in London.         “Capital Lease Obligations” of any Person means the obligations of such Person to pay rent or other  amounts under any lease of (or other arrangement conveying the right to use) real or personal property, or  a combination thereof, which obligations are required to be classified and accounted for as capital leases or  financing leases on a balance sheet of such Person under GAAP, and the amount of such obligations shall  be the capitalized amount thereof determined in accordance with GAAP.         “CB Floating Rate” means the Prime Rate; provided that the CB Floating Rate shall never be less  than  the  Adjusted  One  Month  LIBOR  Rate  on  such  day  (or  if  such  day  is  not  a  Business  Day,  the  immediately preceding Business Day).  Any change in the CB Floating Rate due to a change in the Prime  Rate or the Adjusted One Month LIBOR Rate shall be effective from and including the effective date of  such change in the Prime Rate or the Adjusted One Month LIBOR Rate, respectively.         “CBFR”, when used in reference to any Loan or Borrowing, refers to whether such Loan, or the  Loans comprising such Borrowing, bear interest at a rate determined by reference to the CB Floating Rate.         “Change in Control” means (a) the acquisition of ownership, directly or indirectly, beneficially or  of record, by any Person or group (within the meaning of the Securities Exchange Act of 1934 and the rules  of the SEC thereunder as in effect on the date hereof) of Equity Interests representing more than 35% of  the  aggregate  ordinary  voting  power represented  by the  issued  and  outstanding  Equity  Interests  of the  Company; (b) occupation at any time of a majority of the seats (other than vacant seats) on the board of  directors  of  the  Company  by  Persons  who  were  not (i)  directors  of  the  Company  on  the date  of  this  Agreement  or nominated  or  appointed by  the  board  of  directors  of the Company, or  (ii)  appointed  by  directors so nominated or appointed; or (c) except as permitted by Section 6.03(a), the Company shall cease  to own, free and clear of all Liens or other encumbrances (other than the Liens securing the Obligations),  100% of the outstanding voting Equity Interests (other than director’s qualifying shares or other nominal  amounts of Equity Interests required to be held by Persons other than the Company or any Subsidiary under  applicable law) of the other Borrowers on a fully diluted basis.                                           3 

 

                                                                                                                                                                                                                                                 “Change in Law” means the occurrence after the date of this Agreement of any of the following:  (a) the adoption of or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule,  regulation or treaty or in the administration, interpretation, implementation or application thereof by any  Governmental Authority or (c) compliance by the  Lender (or, for purposes  of Section 2.13(b), by any  lending office  of the Lender or by the Lender’s  holding company, if any) with any request, guideline,  requirement or directive (whether or not having the force of law) of any Governmental Authority made or  issued after the date of this Agreement; provided that, notwithstanding anything herein to the contrary, (x)  the  Dodd-Frank  Wall Street  Reform  and  Consumer  Protection  Act  and  all  requests,  rules,  guidelines,  requirements or directives thereunder or issued in connection therewith or in the implementation thereof,  and (y) all requests, rules, guidelines, requirements or directives promulgated by the Bank for International  Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the  U.S. or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be  a “Change in Law”, regardless of the date enacted, adopted, issued or implemented.          “Charges” has the meaning assigned to such term in Section 8.17.         “Code” means the Internal Revenue Code of 1986, as amended from time to time.         “Collateral” means any and all property owned, leased or operated by a Person covered by the  Collateral Documents and any and all other property of any Loan Party, now existing or hereafter acquired,  that may at any time be or become subject to a security interest or Lien in favor of the Lender, on behalf of  the Secured Parties, to secure the Secured Obligations.         “Collateral Access Agreement” has the meaning assigned to such term in the Security Agreement.         “Collateral  Documents” means,  collectively,  the  Security  Agreement,  the  Swiss  Collateral  Documents and  any  other  agreements,  instruments  and  documents  executed  in  connection  with  this  Agreement  that  are  intended  to  create,  perfect  or  evidence  Liens  to  secure  the  Secured  Obligations,  including, without limitation, all other security agreements, pledge agreements, mortgages, deeds of trust,  loan  agreements,  notes,  guarantees,  subordination  agreements,  pledges,  powers  of  attorney,  consents,  collateral assignments,  contracts,  fee  letters,  notices,  leases,  financing  statements  and  all  other  written  matter whether theretofore, now or hereafter executed by any Loan Party and delivered to the Lender.         “Commodity  Exchange  Act” means  the  Commodity  Exchange  Act  (7  U.S.C.  §  1  et  seq.),  as  amended from time to time, and any successor statute.         “Common Stock” means the common stock of the Company, par value $0.001 per share.         “Company” means Harmonic, Inc., a Delaware corporation.          “Compliance Certificate” means a certificate, signed and certified as accurate and complete in all  material respects by a Financial Officer of the Borrower Representative, in substantially the form of Exhibit  B or another form which is acceptable to the Lender in its sole discretion.          “Connection Income Taxes” means Other Connection Taxes that are imposed on or measured by  net income (however denominated) or that are franchise Taxes or branch profits Taxes.          “Control” means the possession, directly or indirectly, of the power to direct or cause the direction  of the management or policies of a Person, whether through the ability to exercise voting power, by contract  or otherwise.  “Controlling” and “Controlled” have meanings correlative thereto.                                          4 

 

                                                                                                                                                                                                                                                 “Controlled Foreign Corporation” has the meaning assigned thereto in Section 957(a) of the Code.          “Convertible Notes” means, collectively, (a) the Company’s 4.00% Senior Convertible Notes due  2020 pursuant to an indenture (the “2020 Notes Indenture”), dated December 14, 2015, by and between the  Company and U.S. Bank National Association, as trustee, and (b) the Company’s 2.00% Convertible Senior  Notes due 2024 pursuant to an indenture (the “2024 Notes Indenture”) dated September 13, 2019, by and  between the Company and U.S. Bank National Association, as trustee.         “Default” means any event or condition which constitutes an Event of Default or which upon notice,  lapse of time or both would, unless cured or waived, become an Event of Default.         “Disclosed Matters” means the actions, suits, proceedings and environmental matters disclosed in  Schedule 3.06 to the Disclosure Letter.         “Disclosure Letter” means the disclosure letter, dated as of the Effective Date, delivered by the  Borrowers to Lender.         “Disposition” or “Dispose” means  the  sale,  transfer,  license,  lease  or other  disposition  (in  one  transaction or in a series of transactions and whether effected pursuant to a Division or otherwise) of any  property by any Person (including any sale and leaseback transaction and any issuance of Equity Interests  by a Subsidiary of such Person), including any sale, assignment, transfer or other disposal, with or without  recourse, of any notes or accounts receivable or any rights and claims associated therewith.         “Dividing Person” has the meaning assigned to it in the definition of “Division.”         “Division” means the division of the assets, liabilities and/or obligations of a Person (the “Dividing  Person”) among two or more Persons (whether pursuant to a “plan of division” or similar arrangement),  which may or may not include the Dividing Person and pursuant to which the Dividing Person may or may  not survive.         “Division Successor” means any Person that, upon the consummation of a Division of a Dividing  Person, holds all or any portion of the assets, liabilities and/or obligations previously held by such Dividing  Person immediately prior to the consummation of such Division. A Dividing Person which retains any of  its assets, liabilities and/or obligations after a Division shall be deemed a Division Successor upon the  occurrence of such Division.         “Document” has the meaning assigned to such term in the Security Agreement.         “Dollar Equivalent” means, for any amount, at the time of determination thereof, (a) if such amount  is  expressed  in  dollars,  such  amount,  (b)  if  such  amount  is  expressed  in  an  Alternative  Currency,  the  equivalent of such amount in dollars determined by using the rate of exchange for the purchase of dollars  with the Alternative Currency last provided (either by publication or otherwise provided to the Lender) by  the applicable Thompson Reuters Corp. (“Reuters”) source on the Business Day (New York City time)   immediately preceding the date  of determination or if such service ceases  to be  available  or ceases to  provide a rate of exchange for the purchase of dollars with the Alternative Currency, as provided by such  other publicly available information service which provides that rate of exchange at such time in place of  Reuters chosen by the Lender in its sole discretion (or if such service ceases to be available or ceases to  provide such rate of exchange, the equivalent of such amount in dollars as determined by the Lender using  any  method  of  determination  it  deems  appropriate  in  its  sole  discretion)  and  (c)  if  such  amount  is                                          5 

 

                                                                                                                                                                                                                                           denominated in any other currency, the equivalent of such amount in dollars as determined by the Lender  using any method of determination it deems appropriate in its sole discretion.         “Dollars”, “dollars” or “$” refers to lawful money of the U.S.         “Domestic  Subsidiary” means  any Subsidiary that is  organized  under the laws of any political  subdivision of the U.S.         “EBITDA” means, for any period, Net Income for such period plus (a) without duplication and to  the extent deducted in determining Net Income for such period, the sum of (i) Interest Expense for such  period,  (ii)  income  tax  expense  for  such  period,  (iii)  all  amounts  attributable  to  depreciation  and  amortization expense for such period, (iv) non-cash stock compensation and other non-cash losses, charges,  expenses, rents  and  operating  lease  expenses  for  such  period,  (v) any extraordinary,  unusual  or  non- recurring  items,  (vi) (A)  transition,  integration,  business  optimization  and  similar  fees,  charges  and  expenses related to acquisitions and business combinations and (B) restructuring, discontinued operations  or similar charges, in each case to the extent permitted under the Loan Documents and in an amount in the  aggregate, for clause (v) and this clause (vi), not to exceed 15% of EBITDA (prior to giving effect to any  adjustments  or  add  backs)  in  any  four-fiscal  quarter period, (vii) transaction costs  associated  with this  Agreement in an aggregate amount, for this clause (vii) not to exceed $240,000, and (viii) any net gain  realized upon the sale or other Disposition of any asset or disposed operations (including pursuant to any  Sale and Leaseback Transaction) which is not sold or otherwise Disposed of in the ordinary course of  business, to the extent such sale or disposition is permitted under the Loan Documents, minus (b) without  duplication and to the extent included in Net Income, (i) any cash payments made during such period in  respect of non-cash charges described in clause (a)(v) taken in a prior period and (ii) any extraordinary  gains and any non-cash items of income for such period, all calculated for the Company and its Subsidiaries  on a consolidated basis in accordance with GAAP.  In addition, EBITDA shall be calculated to exclude: (x)  the  cumulative  effects  of  a  change  in  accounting  principles  and  (y)  other  effects  resulting  from  recapitalizations or the application of purchase accounting associated with any acquisitions or dispositions  permitted under the Loan Documents.         For  purposes  of  calculating  EBITDA  for  any  period  during  which  one  or  more  Permitted  Acquisitions  occurs,  such  Permitted  Acquisition  (and  all  other  Permitted  Acquisitions  that  have  been  consummated during the applicable period) shall be deemed to have occurred as of the first day of the  applicable period of measurement and EBITDA shall be determined by including the EBITDA attributable  to the property or Person acquired in such Permitted Acquisition, in each case for such period (calculated  based on the EBITDA for such property or Person prior to such acquisition, including any amounts added  back or deducted pursuant to the definition of EBITDA); provided, that such EBITDA to be included is  reflected in financial statements or other financial data reasonably acceptable to the Lender and based on  reasonable assumption and calculations which are expected to have a continuous impact; provided, further,  that the foregoing amounts shall be without duplication of any adjustments that are already included in the  calculation of EBITDA.         “ECP” means an “eligible contract participant” as defined in Section 1(a)(18) of the Commodity  Exchange Act or any regulations promulgated thereunder and the applicable rules issued by the Commodity  Futures Trading Commission and/or the SEC.          “Effective Date” means the date on which the conditions specified in Section 4.01 are satisfied (or  waived in accordance with Section 8.02).                                          6 

 

                                                                                                                                                                                                                                                 “Electronic Signature” means an electronic sound, symbol, or process attached to, or associated  with, a contract or other record and adopted by a Person with the intent to sign, authenticate or accept such  contract or record.         “Electronic System” means any electronic system, including e-mail, e-fax, web portal access for  the  Borrower,  and  any  other  Internet  or  extranet-based  site,  whether  such  electronic  system  is  owned,  operated or hosted by the Lender and any of its respective Related Parties or any other Person, providing  for access to data protected by passcodes or other security system.         “Eligible Accounts” means, at any time, the Accounts of a Borrower which the Lender determines  in its Permitted Discretion are eligible as the basis for the extension of Revolving Loans and the issuance  of Letters of Credit.  Without limiting the Lender’s discretion provided herein, Eligible Accounts shall not  include any Account of a Borrower:               (a)   which is not subject to a first priority perfected security interest in favor of the        Lender;               (b)   which is subject to any Lien other than (i) a Lien in favor of the Lender and (ii) a        Permitted Encumbrance which does not have priority over the Lien in favor of the Lender;               (c)   which is  unpaid  more than 90 days (or  180  days  for Vodafone Procurement        Company SARL) after the date of the original invoice therefor, or which has been written off the        books of such Borrower or otherwise designated as uncollectible;               (d)   which is owing by an Account Debtor for which more than 30% of the Accounts        owing from such Account Debtor and its Affiliates are ineligible pursuant to clause (c) above;               (e)   which  is  owing  by  an  Account  Debtor  to  the  extent  the  aggregate  amount  of        Accounts owing from such Account Debtor and its Affiliates to (i) such Borrower exceeds 25% of        the aggregate amount of Eligible Accounts of such Borrower or (ii) all Borrowers exceeds 25% of        the  aggregate  amount  of  Eligible  Accounts  of  all  Borrowers, in  each case  for  the  amount  that        exceeds that percentage;               (f)   with respect to which any covenant, representation or warranty contained in this        Agreement, in the Security Agreement or in any Swiss Collateral Document has been breached or        is not true in any material respect;               (g)   which (i) does not arise from the sale of goods or performance of services in the        ordinary course of business, (ii) is not evidenced by an invoice or other documentation reasonably        satisfactory to the Lender which has been sent to the Account Debtor, (iii) represents a progress        billing (except  for  Eligible  Milestone  Accounts),  (iv) is  contingent  upon  such  Borrower’s        completion of any further performance (except for Eligible Milestone Accounts), (v) represents a        sale on a bill-and-hold, guaranteed sale, sale-and-return, sale on approval, consignment, cash-on-       delivery or any other repurchase or return basis (except for Eligible Milestone Accounts) or (vi)        relates to payments of interest;               (h)   for which the  goods  giving rise to such Account have  not been shipped to the        Account Debtor or for which the services giving rise to such Account have not been performed by        such Borrower or if such Account was invoiced more than once, except in each case for Eligible        Milestone Accounts;                                          7 

 

                                                                                                                                                                                                                               (i)   with respect to which any check or other instrument of payment has been returned  uncollected for any reason;         (j)   which  is  owed  by  an  Account  Debtor  which has  (i)  applied  for,  suffered,  or  consented to the appointment of any receiver, custodian, trustee, or liquidator of its assets, (ii) had  possession  of  all  or  a  material part  of its  property  taken  by  any  receiver,  custodian,  trustee  or  liquidator, (iii) filed, or had filed against it, any request or petition for liquidation, reorganization,  arrangement,  adjustment  of  debts,  adjudication  as  bankrupt,  winding-up,  or  voluntary  or  involuntary case under any state or federal bankruptcy laws, (iv) admitted in writing its inability,  or is generally unable to, pay its debts as they become due, (v) become insolvent, or (vi) ceased  operation of its business;         (k)   which is owed by any Account Debtor which has sold all or substantially all of its  assets;         (l)   with respect to the Company, which is owed by an Account Debtor which (i) does  not maintain its chief executive office in the U.S. or Canada or (ii) is not organized under applicable  law of the U.S., any state of the U.S. or the District of Columbia, Canada, or any province of Canada  unless, in any such case, such Account is backed by a letter of credit acceptable to the Lender which  is in the possession of, and is directly drawable by, the Lender;         (m)   with respect to the Swiss Borrower, which is owing from an Account Debtor (i)  which does not have its principal place of business in the U.S., Switzerland, Canada, the United  Kingdom,  France,  Germany,  Italy,  the  Netherlands,  Norway,  Denmark,  Sweden,  Singapore,  Australia, New Zealand, Belgium, Ireland, Spain, Portugal, Austria, Finland, Luxembourg, or Hong  Kong or (ii) whose billing address (as set forth in the applicable invoice for such Account) is not  in the U.S., Switzerland, Canada, the United Kingdom, France, Germany, Italy, the Netherlands,  Norway, Denmark, Sweden, Singapore, Australia, New Zealand, Belgium, Ireland, Spain, Portugal,  Austria, Finland, Luxembourg, or Hong Kong;         (n)   with  respect  to  the  Company, which  is  owed  in  any  currency  other  than  U.S.  dollars;         (o)   with respect to the Swiss Borrower, which is billed and/or payable in a currency  other than U.S. dollars, Pound Sterling, or Euros;         (p)   which  is  owed  by  (i) any government  (or  any  department,  agency,  public  corporation, or instrumentality thereof) of any country other than the U.S., unless such Account is  backed by a letter of credit acceptable to the Lender which is in the possession of, and is directly  drawable by, the Lender, or (ii) any government of the U.S., or any department, agency, public  corporation, or instrumentality thereof, unless the Federal Assignment of Claims Act of 1940, as  amended (31 U.S.C. § 3727 et seq. and 41 U.S.C. § 15 et seq.), and any other steps necessary to  perfect  the  Lien  of  the Lender in  such  Account, have  been  complied  with  to  the Lender’s  satisfaction;         (q)   which  is  owed  by  any  Affiliate  of  any  Loan  Party  or  any  employee,  officer,  director, agent or stockholder of any Loan Party or any of its Affiliates;         (r)   which is owed by an Account Debtor or any Affiliate of such Account Debtor to  which any Loan Party is indebted, but only to the extent of such indebtedness, or is subject to any                                    8 

 

                                                                                                                                                                                                                                                 security, deposit, progress payment, retainage or other similar advance made by or for the benefit        of an Account Debtor, in each case to the extent thereof;               (s)   which is subject to any counterclaim, deduction, defense, setoff or dispute but only        to the extent of any such counterclaim, deduction, defense, setoff or dispute;               (t)   which is evidenced by any promissory note, chattel paper or instrument;               (u)   which is owed by an Account Debtor (i) located in any jurisdiction which requires        filing of a “Notice of Business Activities Report” or other similar report in order to permit such        Borrower to seek judicial enforcement in such jurisdiction of payment of such Account, unless such        Borrower has filed such report or qualified to do business in such jurisdiction or (ii) which is a        Sanctioned Person;               (v)   with respect to which such Borrower has made any agreement with the Account        Debtor for any reduction thereof, other than discounts and adjustments given in the ordinary course        of business but only to the extent of any such reduction, or any Account which was partially paid        and such Borrower created a new receivable for the unpaid portion of such Account;                (w)   which  does  not  comply  in  all  material  respects  with  the  requirements  of  all        applicable laws and regulations, whether federal, state or local, including without limitation the        Federal Consumer Credit Protection Act, the Federal Truth in Lending Act and Regulation Z of the        Federal Reserve Board;                (x)   which is for goods that have been sold under a purchase order or pursuant to the        terms of a contract or other agreement or understanding (written or oral) that indicates or purports        that any Person other than such Borrower has or has had an ownership interest in such goods, or        which indicates any party other than such Borrower as payee or remittance party;                (y)   which was created on cash on delivery terms;                (z)   which has been acquired in connection with an Acquisition, unless the Lender shall        have conducted an audit and field examination thereof to its reasonable satisfaction; or               (aa)  which the Lender determines in its Permitted Discretion may not be paid by reason        of the Account Debtor’s inability to pay or which the Lender otherwise determines in its Permitted        Discretion is unacceptable for any reason whatsoever.         In the event that an Account of a Borrower which was previously an Eligible Account ceases to be  an  Eligible  Account hereunder, such  Borrower or the  Borrower Representative shall notify the Lender  thereof  on  and  at  the  time  of  submission  to  the Lender of  the  next Borrowing  Base  Certificate.   In  determining the amount of an Eligible Account of a Borrower, the face amount of an Account may, in the  Lender’s Permitted Discretion, be reduced by, without duplication, to the extent not reflected in such face  amount, (i) the amount of all accrued and actual discounts, claims, credits or credits pending, promotional  program allowances, price adjustments, finance charges or other allowances (including any amount that  such Borrower may be obligated to rebate to an Account Debtor pursuant to the terms of any agreement or  understanding (written or oral)) and (ii) the aggregate amount of all cash received in respect of such Account  but not yet applied by such Borrower to reduce the amount of such Account.                                           9 

 

                                                                                                                                                                                                                                                 “Eligible Inventory” means, at any time, the Inventory of a Borrower which the Lender determines  in its Permitted Discretion is eligible as the basis for the extension of Revolving Loans and the issuance of  Letters of Credit hereunder.  Without limiting the Lender’s discretion provided herein, Eligible Inventory  of a Borrower shall not include any Inventory:                (a)   which is not subject to a first priority perfected Lien in favor of the Lender;               (b)   which is subject to any Lien other than (i) a Lien in favor of the Lender and (ii) a        Permitted Encumbrance which does not have priority over the Lien in favor of the Lender;               (c)   which  is,  in  the Lender’s opinion,  slow  moving,  obsolete,  unmerchantable,        defective, used, unfit for sale, not salable at prices approximating at least the cost of such Inventory        in the ordinary course of business or unacceptable due to age, type, category and/or quantity;               (d)   with respect to which any covenant, representation or warranty contained in this        Agreement, in the Security Agreement or in the Swiss Collateral Documents has been breached or        is not true and which does not conform to all standards imposed by any Governmental Authority;               (e)   in which any Person other than such Borrower shall (i) have any direct or indirect        ownership, interest or title or (ii) be indicated on any purchase order or invoice with respect to such        Inventory as having or purporting to have an interest therein;               (f)   which is not finished goods or which constitutes work-in-process, raw materials,        spare  or  replacement  parts,  subassemblies,  packaging  and  shipping  material,  manufacturing        supplies, samples, prototypes, displays or display items, bill-and-hold or ship-in-place goods, goods        that are returned or marked for return, repossessed goods, defective or damaged goods, goods held        on consignment, or goods which are not of a type held for sale in the ordinary course of business;                (g)   (i) with respect to the Company, which is not located in the U.S. or is in transit        with a common carrier from vendors and suppliers or (ii) with respect to the Swiss Borrower, which        is not located in Switzerland or is in transit with a common carrier from vendors and suppliers;                (h)   which is located in any location leased by such Borrower unless (i) the lessor has        delivered to the Lender a Collateral Access Agreement or (ii) a Reserve for rent, charges and other        amounts due or to become due with respect to such facility has been established by the Lender in        its Permitted Discretion;               (i)   which is located in any third party warehouse or is in the possession of a bailee        (other than a third party processor) and is not evidenced by a Document, unless such warehouseman        or bailee has delivered to the Lender a Collateral Access Agreement and such other documentation        as the Lender may reasonably require;               (j)   which is being processed offsite at a third party location or outside processor, or is        in transit to or from such third party location or outside processor;                (k)   which is a discontinued product or component thereof;                (l)   which is the subject of a consignment by such Borrower as consignor;               (m)   which is perishable;                                          10 

 

                                                                                                                                                                                                                                                       (n)   which contains or bears any intellectual property rights licensed to such Borrower        unless the Lender is satisfied that it may sell or otherwise dispose of such Inventory without (i)        infringing the rights of such licensor, (ii) violating any contract with such licensor, or (iii) incurring        any liability with respect to payment of royalties, other than royalties incurred pursuant to sale of        such Inventory under the current licensing agreement;                (o)   which is not reflected in a current perpetual inventory report of such Borrower;               (p)   for which reclamation rights have been asserted by the seller;                (q)   which has been acquired from a Sanctioned Person;                (r)   which has been acquired in connection with an Acquisition, unless the Lender shall        have conducted an audit and field examination thereof to its reasonable satisfaction; or               (s)   which the Lender otherwise determines in its Permitted Discretion is unacceptable.         In the event that Inventory of a Borrower which was previously Eligible Inventory ceases to be  Eligible Inventory hereunder, such Borrower or the Borrower Representative shall notify the Lender thereof  on and at the time of submission to the Lender of the next Borrowing Base Certificate.           “Eligible  Milestone  Accounts”  means  Accounts  subject to contractual arrangements  between  a  Borrower and an Account Debtor where payments shall be scheduled or due according to completion or  fulfillment requirements, in an amount not to exceed 10% of the lesser of (i) the Aggregate Borrowing Base  and (ii) the Revolving Commitment.         “Environmental  Laws” means  all  laws,  rules,  regulations,  codes,  ordinances,  orders,  decrees,  judgments,  injunctions,  notices  or binding  agreements  issued,  promulgated  or  entered  into  by  any  Governmental Authority, relating in any way to the (i) environment, (ii) preservation or reclamation of  natural resources, (iii) the management, Release or threatened Release of any Hazardous Material or (iv)  health and safety matters.         “Environmental Liability” means any liability, contingent or otherwise (including any liability for  damages,  costs  of  environmental  remediation,  fines,  penalties  or  indemnities),  of a Borrower or  any  Subsidiary directly or indirectly resulting from or based upon (a) any violation of any Environmental Law,  (b) the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials,  (c) any exposure  to  any  Hazardous Materials,  (d) the Release or  threatened Release of  any  Hazardous  Materials into the environment or (e) any contract, agreement or other consensual arrangement pursuant to  which liability is assumed or imposed with respect to any of the foregoing.         “Equity Interests” means shares of capital stock, partnership interests, membership interests in a  limited liability company, beneficial interests in a trust or other equity ownership interests in a Person, and  any warrants, options or other rights entitling the holder thereof to purchase or acquire any of the foregoing,  but excluding any debt securities convertible into any of the foregoing, cash or a combination thereof.         “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to  time, and the rules and regulations promulgated thereunder.         “ERISA Affiliate” means any trade or business (whether or not incorporated) that, together with a  Borrower, is treated as a single employer under Section 414(b) or (c) of the Code or Section 4001 (14) of                                          11 

 

                                                                                                                                                                                                                                           ERISA or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a single  employer under Section 414 of the Code.         “ERISA Event” means (a) any “reportable event”, as defined in Section 4043 of ERISA or the  regulations issued thereunder, with respect to a Plan (other than an event for which the 30-day notice period  is waived); (b) the failure to satisfy the “minimum funding standard” (as defined in Section 412 of the Code  or Section 302 of ERISA), whether or not waived; (c) the filing pursuant to Section 412(c) of the Code or  Section 302(c) of ERISA of an application for a waiver of the minimum funding standard with respect to  any Plan; (d) the incurrence by any Borrower or any ERISA Affiliate of any liability under Title IV of  ERISA with respect to the termination of any Plan; (e) the receipt by any Borrower or any ERISA Affiliate  from the PBGC or a plan administrator of any notice relating to an intention to terminate any Plan or Plans  or to appoint a trustee to administer any Plan; (f) the incurrence by any Borrower or any ERISA Affiliate  of any liability with respect to the withdrawal or partial withdrawal of any Borrower or any ERISA Affiliate  from any Plan or Multiemployer Plan; or (g) the receipt by any Borrower or any ERISA Affiliate of any  notice, or the receipt by any Multiemployer Plan from any Borrower or any ERISA Affiliate of any notice,  concerning  the  imposition  upon  any  Borrower  or any  ERISA  Affiliate of  Withdrawal  Liability  or  a  determination  that  a  Multiemployer  Plan  is,  or  is  expected  to  be,  insolvent,  in  critical  status or  in  reorganization, within the meaning of Title IV of ERISA.         “Eurodollar”, when used in reference to any Loan or Borrowing, refers to whether such Loan, or  the Loans comprising such Borrowing, bear interest at a rate determined by reference to the Adjusted LIBO  Rate.         “Event of Default” has the meaning assigned to such term in Article VII.         “Excluded Subsidiary” means any (a) Controlled Foreign Corporation, (b) Subsidiary (including  any Subsidiary treated as a disregarded entity for U.S. federal income Tax purposes) that is owned, directly  or indirectly, by a Controlled Foreign Corporation, or (c) FSHCO.         “Excluded Swap Obligation” means, with respect to any Guarantor, any Swap Obligation if, and to  the extent that, all or a portion of the Guarantee of such Guarantor of, or the grant by such Guarantor of a  security interest to secure, such Swap Obligation (or any Guarantee thereof) is or becomes illegal under the  Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission  (or the application or official interpretation of any thereof) by virtue of such Guarantor’s failure for any  reason to constitute an ECP at the time the Guarantee of such Guarantor or the grant of such security interest  becomes or would become effective with respect to such Swap Obligation.  If a Swap Obligation arises  under a master agreement governing more than one swap, such exclusion shall apply only to the portion of  such  Swap  Obligation that  is  attributable  to swaps  for  which  such  Guarantee or  security  interest  is  or  becomes illegal.          “Excluded Taxes” means any of the following Taxes imposed on or with respect to the Lender or  required to be withheld or deducted from a payment to the Lender: (a) Taxes imposed on or measured by  net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, (i) imposed as  a result of the Lender being organized under the laws of, or having its principal office or its applicable  lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii)  that otherwise are  Other  Connection  Taxes,  (b) U.S.  federal  withholding  Taxes  imposed  on  amounts  payable to or for the account of the Lender with respect to an applicable interest in a Loan, Letter of Credit  or Revolving Commitment pursuant to a law in effect on the date on which (i) the Lender acquires such  interest in the Loan, Letter of Credit or Revolving Commitment or (ii) the Lender changes its lending office,  except in each case to the extent that, pursuant to Section 2.15, amounts with respect to such Taxes were                                          12 

 

                                                                                                                                                                                                                                           payable either to the Lender’s assignor immediately before the Lender became a party hereto or to the  Lender immediately before it changed its lending office, (c) Taxes attributable to a Lender’s failure to  comply with Section 2.15(e)and (d) any withholding Taxes imposed under FATCA.         “Existing Letters  of  Credit” means  those  Letters  of  Credit  described  on Schedule  1.01 to  the  Disclosure Letter.         “FATCA” means Sections 1471 through 1474 of the Code as of the date of this Agreement (or any  amended or successor version that is substantively comparable and not materially more onerous to comply  with), any current or future regulations or official interpretations thereof and any agreement entered into  pursuant  to Section  1471(b)(1)  of  the  Code  and  any  fiscal  or  regulatory  legislation,  rules  or  practices  adopted  pursuant  to  any  intergovernmental  agreement,  treaty  or  convention  among  Governmental  Authorities and implementing such Sections of the Code.         “Federal Funds Effective Rate” means, for any day, the rate calculated by the NYFRB based on  such  day’s  federal  funds  transactions  by  depositary  institutions, as  determined  in  such  manner  as  the  NYFRB shall set forth on its  public  website  from time  to time, and  published on the  next succeeding  Business Day by the NYFRB as the effective federal funds rate, provided that, if the Federal Funds Effective  Rate as so determined would be less than zero, such rate shall be deemed to zero for the purposes of this  Agreement.         “Federal Reserve Board” means the Board of Governors of the Federal Reserve System of the  United States of America.         “Financial  Officer” means  the  chief  financial  officer,  principal  accounting  officer,  treasurer  or  controller of a Borrower, and in the case of the Swiss Borrower, any managing officer.         “Foreign Subsidiary” means any Subsidiary that is not a Domestic Subsidiary.         “FSHCO” means  any  Domestic  Subsidiary  (including  any  disregarded  entity  for  U.S.  federal  income Tax purposes) substantially all the assets of which consist of (a) Equity Interests in one or more  Controlled Foreign Corporations or other entities that are described in this definition (or are treated as  consisting  of  such  assets  for  U.S.  federal  income  Tax  purposes)  and/or  (b)  Indebtedness  or  accounts  receivable owed by one or more Controlled Foreign Corporations or other entities that are described in this  definition (or are treated as so owed by any such entity for U.S. federal income Tax purposes).          “Funding Account” has the meaning assigned to such term in Section 4.01(h).         “GAAP” means generally accepted accounting principles in the U.S.         “Governmental Authority” means the government of the U.S., any other nation or any political  subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body,  court,  central  bank or  other  entity  exercising  executive,  legislative,  judicial,  taxing,  regulatory  or  administrative powers or functions of or pertaining to government.         “Guarantee” of or by any Person (the “guarantor”) means any obligation, contingent or otherwise,  of the guarantor guaranteeing or having the economic effect of guaranteeing any Indebtedness or other  obligation of any other Person (the “primary obligor”) in any manner, whether directly or indirectly, and  including any obligation of the guarantor, direct or indirect, (a) to purchase or pay (or advance or supply  funds for the purchase or payment of) such Indebtedness or other obligation or to purchase (or to advance                                          13 

 

                                                                                                                                                                                                                                           or supply funds for the purchase of) any security for the payment thereof, (b) to purchase or lease property,  securities or services for the purpose of assuring the owner of such Indebtedness or other obligation of the  payment thereof, (c) to maintain working capital, equity capital or any other financial statement condition  or liquidity of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other  obligation or (d) as an account party in respect of any letter of credit or letter of guaranty issued to support  such  Indebtedness  or  obligation; provided that  the  term  Guarantee  shall  not  include  endorsements  for  collection or deposit in the ordinary course of business, customary warranties or indemnification obligations  entered into in the ordinary course of business or in connection with transactions permitted hereunder.         “Guaranteed Obligations” has the meaning assigned to such term in Section 9.01.         “Guarantors” means all Loan Guarantors, and the term “Guarantor” means each or any one of them  individually.          “Hazardous Materials” means:  (a) any substance, material, or waste that is included within the  definitions  of “hazardous  substances,” “hazardous  materials,” “hazardous  waste,” “toxic  substances,”  “toxic materials,” “toxic waste,” or words of similar import in any Environmental Law; (b) those substances  listed as hazardous substances by the United States Department of Transportation (or any successor agency)  (49 C.F.R. 172.101 and amendments thereto) or by the Environmental Protection Agency (or any successor  agency) (40 C.F.R. Part 302 and amendments thereto); and (c) any substance, material, or waste that is  petroleum,  petroleum-related,  or  a  petroleum  by-product,  asbestos  or  asbestos-containing  material,  polychlorinated biphenyls, flammable, explosive, radioactive, Freon gas, radon, or a pesticide, herbicide,  or any other agricultural chemical.          “Impacted Interest Period” has the meaning assigned to such term in the definition of “LIBO Rate”.          “Indebtedness” of any Person means, without duplication, (a) all obligations of such Person for  borrowed  money,  (b) all  obligations  of  such  Person  evidenced  by  bonds,  debentures,  notes  or  similar  instruments, (c) all obligations of such Person under conditional sale or other title retention agreements  relating to property acquired by such Person, (d) all obligations of such Person in respect of the deferred  purchase  price  of  property  or  services  (excluding  accounts  payable  incurred  in  the  ordinary  course  of  business which are not more than 120 days past due), (e) all Indebtedness of others secured by (or for which  the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien  on property owned or acquired by such Person, whether or not the Indebtedness secured thereby has been  assumed, (f) all Guarantees by such Person of Indebtedness of others, (g) all Capital Lease Obligations of  such Person, (h) all reimbursement obligations, contingent or otherwise, of such Person as an account party  in respect of letters of credit and letters of guaranty, (i) all obligations, contingent or otherwise, of such  Person in respect of bankers’ acceptances, (j) obligations under any earn-out solely to the extent payable in  cash (which for all purposes of this Agreement shall be valued in accordance with GAAP), (k) any other  Off-Balance Sheet Liability and (l) net obligations under any and all Swap Agreements.  The Indebtedness  of any Person shall include the Indebtedness of any other entity (including any partnership in which such  Person is a general partner) to the extent such Person is liable therefor as a result of such Person’s ownership  interest in or other relationship with such entity, except to the extent the terms of such Indebtedness provide  that such Person is not liable therefor.         “Indemnified Taxes” means (a) Taxes, other than Excluded Taxes, imposed on or with respect to  any payment made by or on account of any obligation of any Loan Party under any Loan Document and  (b) to the extent not otherwise described in the foregoing clause (a), Other Taxes.         “Indemnitee” has the meaning assigned to such term in Section 8.03(b).                                          14 

 

                                                                                                                                                                                                                                                 “Information” has the meaning assigned to such term in Section 8.13.         “Interest Election Request” means a request by the Borrower Representative to convert or continue  a  Borrowing  in  accordance  with  Section 2.06,  which  shall  be  in  a  form reasonably satisfactory  to,  or  provided by, the Lender.         “Interest  Expense” means,  with  reference  to  any  period,  total  interest  expense  (including  that  attributable to Capital Lease Obligations) of the Company and its Subsidiaries for such period with respect  to all outstanding Indebtedness of the Company and its Subsidiaries (including all commissions, discounts  and other fees and charges owed with respect to letters of credit and bankers’ acceptances and net costs  under Swap Agreements in respect of interest rates, to the extent such net costs are allocable to such period  in accordance with GAAP), calculated for the Company and its Subsidiaries on a consolidated basis for  such period in accordance with GAAP.         “Interest Payment Date” means (a) with respect to any CBFR Loan, the first Business Day of each  calendar month and the Revolving Credit Maturity Date, and (b) with respect to any Eurodollar Loan, the  last day of each Interest Period applicable to the Borrowing of which such Loan is a part and the Revolving  Credit Maturity Date.          “Interest Period” means, with respect to any Eurodollar Borrowing, the period commencing on the  date of such Eurodollar Borrowing and ending on the numerically corresponding day in the calendar month  that is one, two or three months thereafter, as the Borrower Representative may elect; provided that (i) if  any Interest Period would end on a day other than a Business Day, such Interest Period shall be extended  to the next succeeding Business Day unless such next succeeding Business Day would fall in the next  calendar month, in which case such Interest Period shall end on the next preceding Business Day and (ii)  any Interest Period that commences on the last Business Day of a calendar month (or on a day for which  there is no numerically corresponding day in the last calendar month of such Interest Period) shall end on  the last Business Day of the last calendar month of such Interest Period.  For purposes hereof, the date of a  Borrowing initially shall be the date on which such Borrowing is made and thereafter shall be the effective  date of the most recent conversion or continuation of such Borrowing.          “Interpolated Rate” means, at any time, for any Interest Period, the rate per annum (rounded to the  same number of decimal places as the LIBO Screen Rate) determined by the Lender (which determination  shall be conclusive and binding absent manifest error) to be equal to the rate that results from interpolating  on a linear basis between: (a) the LIBO Screen Rate for the longest period (for which the LIBO Screen Rate  is available) that is shorter than the Impacted Interest Period and (b) the LIBO Screen Rate for the shortest  period (for which the LIBO Screen Rate is available) that exceeds the Impacted Interest Period, in each  case, at such time; provided that, if any Interpolated Rate shall be less than zero, such rate shall be deemed  to be zero for purposes of this Agreement.           “Inventory” has the meaning assigned to such term in the Security Agreement.         “IRS” means the U.S. Internal Revenue Service.         “Joinder Agreement” means a Joinder Agreement in substantially the form of Exhibit E.         “LC Collateral Account” has the meaning assigned to such term in Section 2.04(h).         “LC Disbursement” means any payment made by the Lender pursuant to a Letter of Credit.                                          15 

 

                                                                                                                                                                                                                                                 “LC Exposure” means, at any time, the sum of (a) the aggregate undrawn amount of all Letters of  Credit outstanding at such time plus (b) the aggregate amount of all LC Disbursements relating to Letters  of Credit that have not yet been reimbursed by or on behalf of a Borrower at such time.         “Lender” means JPMorgan Chase Bank, N.A., its successors and assigns.         “Letters of Credit” means the letters of credit issued pursuant to this Agreement, and the term  “Letter of Credit” means any one of them or each of them singularly, as the context may require.         “Letter of Credit Agreement” has the meaning assigned to it in Section 2.04(b).         “LIBO Rate” means, with respect to any Eurodollar Borrowing for any applicable Interest Period  or  for  any  CBFR  Borrowing,  the  LIBO  Screen  Rate  at  approximately  11:00  a.m.,  London  time,  two  Business Days prior to the commencement of such Interest Period; provided that, if the LIBO Screen Rate  shall not be available at such time for such Interest Period (an “Impacted Interest Period”), then the LIBO  Rate shall be the Interpolated Rate.           “LIBO Screen Rate” means, for any day and time, with respect to any Eurodollar Borrowing for  any Interest Period or for any CBFR Borrowing, the London interbank offered rate as administered by ICE  Benchmark Administration (or any other Person that takes over the administration of such rate for Dollars)  for a period equal in length to such Interest Period as displayed on such day and time on pages LIBOR01  or LIBOR02 of the Reuters screen that displays such rate (or, in the event such rate does not appear on a  Reuters page or screen, on any successor or substitute page on such screen that displays such rate, or on the  appropriate page of such other information service that publishes such rate from time to time as selected by  the Lender in its reasonable discretion); provided that if the LIBO Screen Rate as so determined would be  less than zero, such rate shall be deemed to be zero for the purposes of this Agreement.         “Lien” means,  with  respect  to  any  asset,  (a) any  mortgage,  deed  of  trust,  lien,  pledge,  hypothecation, encumbrance, charge or security interest in, on or of such asset, and (b) the interest of a  vendor or a lessor under any conditional sale agreement, capital lease or title retention agreement (or any  financing lease having substantially the same economic effect as any of the foregoing) relating to such  asset.         “Limitation” has the meaning assigned to such term in Section 11.01.          “Liquidity” means, as of any date of determination thereof, the sum of (i) total unrestricted and  unencumbered cash as of such date, plus (ii) unrestricted and unencumbered Permitted Investments as of  such date, plus (iii) the Aggregate Availability as of such date, in each case calculated for the Company and  its Subsidiaries on a consolidated basis for such period in accordance with GAAP.          “Loan Documents” means, collectively, this Agreement, each promissory note issued pursuant to  this  Agreement, each Letter of Credit Agreement, each Collateral Document, the  Loan Guaranty, each  compliance certificate or other certification delivered in connection with this Agreement, and each other  agreement, instrument, document and certificate identified in Section 4.01 executed and delivered to, or in  favor of, the Lender and including each other pledge, power of attorney, consent, assignment, contract,  notice, letter  of  credit  agreement, letter  of  credit  application  and each other  written  matter  whether  heretofore, now or hereafter executed by or on behalf of any Loan Party and delivered to the Lender in  connection with this Agreement or the transactions contemplated hereby.  Any reference in this Agreement  or any other Loan Document to a Loan Document shall include all appendices, exhibits or schedules thereto,  and  all  amendments,  restatements,  supplements  or  other  modifications  thereto, and  shall  refer  to  this                                          16 

 

                                                                                                                                                                                                                                           Agreement or such Loan Document as the same may be in effect at any and all times such reference becomes  operative.          “Loan Guarantor” means each Loan Party.          “Loan Guaranty” means Article IX of this Agreement.         “Loan Parties” means, collectively, the Borrowers, the Company’s Domestic Subsidiaries (other  than any Excluded Subsidiary or any Domestic Subsidiary that is not a Material Subsidiary) and any other  Person  who  becomes  a  party  to  this  Agreement  pursuant  to  a  Joinder  Agreement  and  their respective  successors and assigns, and the term “Loan Party” shall mean any one of them or all of them individually,  as the context may require.         “Loans” means the loans and advances made by the Lender pursuant to this Agreement.         “Margin Stock” means margin stock within the meaning of Regulations T, U and X, as applicable.         “Material Adverse Effect” means a material adverse effect on (a) the business, assets, operations,  or condition, financial or otherwise, of the Company and its Subsidiaries taken as a whole, (b) the ability  of any Loan Party to perform any of its Obligations, (c) the Collateral, or the Lender’s Liens (on behalf of  itself and the other Secured Parties) on the Collateral or the priority of such Liens, or (d) the rights of or  benefits available to the Lender under any of the Loan Documents.          “Material Indebtedness” means Indebtedness (other than the Obligations) of any one or more of the  Loan  Parties in  an  aggregate  principal  amount outstanding exceeding  $1,000,000.   For  purposes  of  determining Material Indebtedness, the “principal amount of the obligations” of any Loan Party in respect  of any Swap Agreement at any time shall be the maximum aggregate amount (giving effect to any netting  agreements) that such Loan Party would be required to pay if such Swap Agreement were terminated at  such time.         “Material Subsidiaries” means each Domestic Subsidiary (a) the consolidated total assets of which  equal 5% or more of the consolidated total assets of the Company and its Subsidiaries (excluding the assets  of the Foreign Subsidiaries) or (b) the consolidated revenues of which accounts for 5% or more of the  consolidated  revenues  of the  Company and  its  Subsidiaries  (excluding  the  consolidated  revenues  attributable to the Foreign Subsidiaries), in each case as of the end of or for the most recent period of four  consecutive fiscal quarters of the Company for which financial statements have been delivered pursuant to  Section 5.01(a) or 5.01(b) (or, prior to the delivery of any such financial statements, ending with the last  fiscal quarter included in the financial statements referred to in Section 3.04(a)); provided that if at the end  of or for any such most recent period of four consecutive fiscal quarters the combined consolidated total  assets or combined consolidated revenues of all Domestic Subsidiaries that under clause (a) and (b) above  would not constitute Material Subsidiaries shall have exceeded 10% of the consolidated total assets of the  Company and its Subsidiaries (excluding the assets of the Foreign Subsidiaries) or 10% of the consolidated  revenues  of the  Company and  its  Subsidiaries  (excluding  the  consolidated  revenues  attributable  to the  Foreign  Subsidiaries),  then the  Company  shall  designate one  or  more  of  such  excluded Domestic  Subsidiaries to be deemed to be Material Subsidiaries until such excess shall have been eliminated.         “Maximum Rate” has the meaning assigned to such term in Section 8.17.         “Moody’s” means Moody’s Investors Service, Inc.                                          17 

 

                                                                                                                                                                                                                                                 “Multiemployer Plan” means a multiemployer plan as defined in Section 4001(a)(3) of ERISA.         “Net Income” means,  for any period, the  consolidated  net income  (or loss) determined for the  Company and its Subsidiaries, on a consolidated basis in accordance with GAAP; provided that there shall  be excluded (a) the income (or deficit) of any Person accrued prior to the date it becomes a Subsidiary or  is merged into or consolidated with the Company or any Subsidiary, (b) the income (or deficit) of any  Person (other than a Subsidiary) in which the Company or any Subsidiary has an ownership interest, except  to the extent that any such income is actually received by the Company or such Subsidiary in the form of  dividends or similar distributions and (c) the undistributed earnings of any Subsidiary, to the extent that the  declaration or payment of dividends or similar distributions by such Subsidiary is not at the time permitted  by the terms of any contractual obligation (other than under any Loan Document) or Requirement of Law  applicable to such Subsidiary.         “NYFRB” means the Federal Reserve Bank of New York.         “NYFRB Rate” means, for any day, the greater of (a) the Federal Funds Effective Rate in effect on  such day and (b) the Overnight Bank Funding Rate in effect on such day(or for any day that is not a Business  Day, for the immediately preceding Business Day); provided that if none of such rates are published for  any day that is a Business Day, the term “NYFRB Rate” means the rate for a federal funds transaction  quoted at 11:00 a.m. on such day received by the Lender from a federal funds broker of recognized standing  selected by it; provided, further, that if any of the aforesaid rates as so determined would be less than zero,  such rate shall be deemed to be zero for purposes of this Agreement.          “Obligated Party” has the meaning assigned to such term in Section 9.02.         “Obligations” means all unpaid principal of and accrued and unpaid interest on the Loans, all LC  Exposure, all accrued and unpaid fees and all expenses, reimbursements, indemnities and other obligations  and indebtedness (including interest and fees accruing during the pendency of any bankruptcy, insolvency,  receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding),  obligations and liabilities of any of the Loan Parties to the Lender or any indemnified party, individually or  collectively, existing on the Effective Date or arising thereafter, direct or indirect, joint or several, absolute  or contingent, matured or unmatured, liquidated or unliquidated, secured or unsecured, arising by contract,  operation of law or otherwise, arising or incurred under this Agreement or any of the other Loan Documents  or in respect of any of the Loans made or reimbursement or other obligations incurred or any of the Letters  of Credit or other instruments at any time evidencing any thereof.          “OFAC” means the Office  of  Foreign  Assets  Control  of  the  United  States  Department  of  the  Treasury.         “Off-Balance Sheet Liability” of a Person means (a) any repurchase obligation or liability of such  Person with respect to accounts or notes receivable sold by such Person, (b) any indebtedness, liability or  obligation  under  any  so-called “synthetic  lease” transaction  entered  into  by  such  Person,  or  (c)  any  indebtedness, liability or obligation arising with respect to any other transaction which is the functional  equivalent of or takes the place of borrowing but which does not constitute a liability on the balance sheet  of such Person (other than operating leases).         “Other Connection Taxes” means, with respect to the Lender, Taxes imposed as a result of a present  or former connection between the Lender and the jurisdiction imposing such Taxes (other than a connection  arising solely from the Lender having executed, delivered, become a party to, performed its obligations  under,  received  payments  under,  received  or  perfected  a  security  interest  under,  engaged  in  any  other                                          18 

 

                                                                                                                                                                                                                                           transaction pursuant to, or enforced, any Loan Document, or sold or assigned an interest in any Loan, Letter  of Credit, or any Loan Document).          “Other Taxes” means all present or future stamp, court or documentary, intangible, recording, filing  or  similar Taxes that  arise  from  any  payment  made  under, from  the  execution, delivery,  performance,  enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with  respect to, any Loan Document, except any such Taxes that are Other Connection Taxes imposed with  respect to an assignment.         “Overnight Bank Funding Rate” means, for any day, the rate comprised of both overnight federal  funds and overnight Eurodollar borrowings by U.S.-managed banking offices of depository institutions (as  such composite rate shall be determined by the NYFRB as set forth on its public website from time to time)  and published on the next succeeding Business Day by the NYFRB as an overnight bank funding rate.          “Paid  in  Full” or “Payment  in  Full” means,  (i)  the  indefeasible  payment  in  full  in  cash  of  all  outstanding  Loans  and  LC  Disbursements,  together  with  accrued  and  unpaid  interest  thereon,  (ii)  the  termination, expiration, or cancellation and return of all outstanding Letters of Credit (or alternatively, with  respect to each such Letter of Credit, the furnishing to the Lender of a cash deposit, or at the discretion of  the Lender a backup standby letter of credit satisfactory to the Lender, in an amount equal to 105% of the  LC Exposure as of the date of such payment), (iii) the indefeasible payment in full in cash of the accrued  and unpaid fees owed pursuant to the Loan Documents, (iv) the indefeasible payment in full in cash of all  reimbursable expenses owed pursuant to the Loan Documents and other Secured Obligations (other than  Unliquidated  Obligations  for  which  no  claim  has  been  made  and  other  obligations  expressly  stated  to  survive  such  payment  and  termination  of  this  Agreement),  together  with  accrued  and  unpaid  interest  thereon, (v) the termination of the Revolving Commitment, and (vi) the termination of the Swap Agreement  Obligations  and  the  Banking  Services  Obligations or  entering  into  other  arrangements reasonably  satisfactory to the Secured Parties counterparties thereto.         “Participant” has the meaning assigned to such term in Section 8.04(c).         “Participant Register” has the meaning assigned to such term in Section 8.04(c).          “PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA and  any successor entity performing similar functions.         “Permitted  Acquisition” means  any Acquisition  by  any  Loan  Party or  any  Subsidiary in  a  transaction that satisfies each of the following requirements:               (a)   such Acquisition is not a hostile or contested acquisition;               (b)   the business acquired in connection with such Acquisition is not engaged, directly        or indirectly, in any line of business other than the businesses in which the Loan Parties are engaged        on the Effective Date and any business activities that are substantially similar, related, or incidental        thereto;               (c)   both  before  and  after  giving  effect  to  such  Acquisition  and  the  Loans  (if  any)        requested to be made in connection therewith, each of the representations and warranties in the        Loan Documents is true and correct in all material respects (it being understood and agreed that        any representation or warranty which by its terms is made as of a specified date shall be required        to  be  true  and  correct  in  all  material  respects only  as  of  such  specified  date,  and  that  any                                          19 

 

                                                                                                                                                                                                                                                 representation or warranty which is subject to any materiality qualifier shall be required to be true        and correct in all respects) and no Event of Default exists, will exist, or would result therefrom;               (d)   as  soon  as  available,  but  not  less  than 15 days  prior  to  such  Acquisition,  the        Borrower Representative has provided the Lender (i) notice of such Acquisition and (ii) a copy of        all business and financial information reasonably requested by the Lender including pro forma        financial statements, statements of cash flow, and Availability projections;               (e)   the total consideration (including maximum potential total amount of all deferred        payment obligations (including earn-outs) and Indebtedness assumed or incurred, but excluding        any consideration payable in the Company’s Equity Interests) of such Acquisition does not exceed        $1,000,000 and  any  cash  consideration  paid for  all  Acquisitions  made  during  the  term  of  this        Agreement shall not exceed $1,000,000;                (f)   if such Acquisition is an acquisition of Equity Interests, such Acquisition will not        result in any violation of Regulation U;               (g)   if such Acquisition involves a merger or a consolidation involving a Borrower or        any other Loan Party, such Borrower or such other Loan Party, as applicable, shall be the surviving        entity;               (h)   no Loan Party shall, as a result of or in connection with any such Acquisition,        assume  or  incur  any  direct  or  contingent  liabilities  (whether  relating  to  environmental,  tax,        litigation, or other matters) that could reasonably be expected to have a Material Adverse Effect;               (i)   the Borrower Representative shall certify to the Lender (and provide the Lender        with a pro forma calculation in form and substance reasonably satisfactory to the and the Lender)        that, after giving effect to the completion of such Acquisition, on a pro forma basis and at all times        during the 30-day period prior to the consummation of such Acquisition (i) Availability will not be        less than $5,000,000 which includes all consideration given in connection with such Acquisition,        and (ii) the Company will be in compliance with the covenants contained in Section 6.12;               (j)   all  actions  required  to  be  taken  with  respect  to  any  newly  acquired  or  formed        Domestic Subsidiary required under Section 5.14 shall have been taken; and               (k)   the Borrower Representative shall have delivered to the Lender the final executed        material documentation relating to such Acquisition within 5 days following the consummation        thereof.         “Permitted Discretion” means a determination made in good faith and in the exercise of reasonable  (from the perspective of a secured lender) business judgment.         “Permitted Encumbrances” means:               (a)   Liens imposed by law for Taxes that are not yet due or are being contested in        compliance with Section 5.04;               (b)   carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s and other like        Liens imposed by law, arising in the ordinary course of business and securing obligations that are        not overdue by more than 30 days or are being contested in compliance with Section 5.04;                                          20 

 

                                                                                                                                                                                                                                                       (c)   pledges and deposits made in the ordinary course of business in compliance with        workers’ compensation, unemployment insurance and other social security laws or regulations;               (d)   deposits  to  secure  the  performance  of  bids,  trade  contracts,  leases,  statutory        obligations, surety, customs and appeal bonds, performance bonds and other obligations of a like        nature, in each case in the ordinary course of business;               (e)   judgment Liens in respect of judgments that do not constitute an Event of Default        under clause (k) of Article VII;                (f)   easements,  zoning restrictions,  rights-of-way  and  similar encumbrances on real        property  imposed  by  law  or  arising  in  the  ordinary  course  of  business  that  do  not  secure  any        monetary  obligations  and  do  not  materially  detract  from  the  value  of  the  affected  property  or        interfere with the ordinary conduct of business of any Borrower or any Subsidiary; and               (g)   Liens in favor of customs and revenue authorities arising as a matter of law to        secure payment of customs duties in connection with the importation of goods;         provided that the term “Permitted Encumbrances” shall not include any Lien securing Indebtedness,  except with respect to clause (e) above.         “Permitted Investments” means:               (a)   direct  obligations  of,  or  obligations  the  principal  of  and  interest  on  which  are        unconditionally guaranteed by, the U.S. (or by any agency thereof to the extent such obligations        are backed by the full faith and credit of the U.S.), in each case maturing within one year from the        date of acquisition thereof;               (b)   investments  in  commercial  paper  maturing  within 365 days  from  the  date  of        acquisition thereof and having, at such date of acquisition, the highest credit rating obtainable from        S&P or from Moody’s;               (c)   investments  in  certificates  of  deposit,  bankers’ acceptances  and  time  deposits        maturing within 365 days from the date of acquisition thereof issued or guaranteed by or placed        with,  and  money  market  deposit  accounts  issued  or  offered  by,  any  domestic  office  of  any        commercial bank organized under the laws of the U.S. or any state thereof which has a combined        capital and surplus and undivided profits of not less than $500,000,000;               (d)   fully collateralized repurchase agreements with a term of not more than 30 days        for securities described in clause (a) above and entered into with a financial institution satisfying        the criteria described in clause (c) above;                (e)   money market funds that (i) comply with the criteria set forth in Securities and        Exchange Commission Rule 2a-7 under the Investment Company Act of 1940, (ii) are rated AAA        by S&P and Aaa by Moody’s and (iii) have portfolio assets of at least $5,000,000,000; and               (f)   any  investments  having  maturities  of  not  more  than  one  year permitted  by  the        Company’s investment policy, as amended from time to time, provided that, solely for purposes of        this definition, such investment policy (and any such amendment thereto) has been approved in        writing by the Lender.                                          21 

 

                                                                                                                                                                                                                                                 “Person” means  any natural person, corporation, limited liability company, trust, joint venture,  association, company, partnership, Governmental Authority or other entity.         “Plan” means any employee pension benefit plan (other than a Multiemployer Plan) subject to the  provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA, and in respect of  which any Borrower or any ERISA Affiliate is (or, if such plan were terminated, would under Section 4069  of ERISA be deemed to be) an “employer” as defined in Section 3(5) of ERISA.          “Plan Asset Regulations” means 29 CFR § 2510.3-101 et seq., as modified by Section 3(42) of  ERISA, as amended from time to time.         “Prime Rate” means the rate of interest last quoted by The Wall Street Journal as the “Prime Rate”  in the U.S. or, if The Wall Street Journal ceases to quote such rate, the highest per annum interest rate  published by the Federal Reserve Board in Federal Reserve Statistical Release H.15 (519) (Selected Interest  Rates) as the “bank prime loan” rate or, if such rate is no longer quoted therein, any similar rate quoted  therein (as determined by the Lender) or any similar release by the Federal Reserve Board (as determined  by the Lender). Each change in the Prime Rate shall be effective from and including the date such change  is publicly announced or quoted as being effective.           “Projections” has the meaning assigned to such term in Section 5.01(e).         “Qualified ECP Guarantor” means, in respect of any Swap Obligation, each Loan Party that has  total assets exceeding $10,000,000 at the time the relevant Loan Guaranty or grant of the relevant security  interest becomes or would become effective with respect to such Swap Obligation or such other person as  constitutes  an “eligible  contract  participant” under  the  Commodity  Exchange  Act  or  any  regulations  promulgated thereunder and can cause another person to qualify as an “eligible contract participant” at such  time by entering into a keepwell under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.         “Quick Assets” means, on any date of determination thereof, unrestricted and unencumbered (other  than with respect to the general security interest in favor of the Lender) cash and Permitted Investments and  net billed accounts receivable (excluding any R&D Accounts Receivable), determined with respect to the  Company and its Subsidiaries on a consolidated basis in accordance with GAAP.         “R&D Accounts Receivable” means Accounts consisting of tax credits granted by the government  of France (or any department, agency, or instrumentality thereof) arising in connection with research and  development conducted in France.         “Refinance Indebtedness” has the meaning assigned to such term in Section 6.01(f).          “Regulation D” means Regulation D of the Federal Reserve Board, as in effect from time to time  and all official rulings and interpretations thereunder or thereof.         “Regulation T” means Regulation T of the Federal Reserve Board, as in effect from time to time  and all official rulings and interpretations thereunder or thereof.         “Regulation U” means Regulation U of the Federal Reserve Board, as in effect from time to time  and all official rulings and interpretations thereunder or thereof.         “Regulation X” means Regulation X of the Federal Reserve Board, as in effect from time to time  and all official rulings and interpretations thereunder and thereof.                                          22 

 

                                                                                                                                                                                                                                                 “Related Parties” means, with respect to any specified Person, such Person’s Affiliates and the  respective directors, officers, partners, members, trustees, employees, agents, administrators, managers,  representatives and advisors of such Person and such Person’s Affiliates.         “Release” means  any  releasing,  spilling,  leaking,  pumping,  pouring,  emitting,  emptying,  discharging,  injecting,  escaping,  leaching,  migrating,  disposing,  or  dumping  of  any  substance  into  the  environment.         “Report” means reports prepared by the Lender or another Person showing the results of appraisals,  field examinations or audits pertaining to a Borrower’s assets from information furnished by or on behalf  of such Borrower, after the Lender has exercised its rights of inspection pursuant to this Agreement.         “Requirement of Law” means, with respect to any Person, (a) the charter, articles or certificate of  organization or incorporation and bylaws or operating, management or partnership agreement, or other  organizational or governing documents of such Person and (b) any statute, law (including common law),  treaty, rule, regulation, code, ordinance, order, decree, writ, judgment, injunction or determination of any  arbitrator  or  court  or  other  Governmental  Authority  (including  Environmental  Laws),  in  each case  applicable to or binding upon such Person or any of its property or to which such Person or any of its  property is subject.         “Reserves” means  any  and  all  reserves  which  the Lender,  upon  notice  to  Borrowers, deems  necessary, in its Permitted Discretion, to maintain with respect to the Collateral or any Loan Party.  The  amount of any Reserves established by Lender shall have a reasonable relationship to the event, condition  or other matter which is the basis for such Reserves as determined by Lender in its Permitted Discretion.   The applicable Reserve shall be promptly adjusted or released at such time when the event, condition or  other circumstance that is the basis for such Reserve ceases to exist or is otherwise addressed, in each case,  to the reasonable satisfaction of Lender.  Lender shall notify the Company in writing at or before the time  any such Reserve is to be established or increased.         “Responsible  Officer” means  the  president,  Financial  Officer  or other  executive  officer  of  the  Borrower.         “Restricted Obligations” has the meaning assigned to such term in Section 11.01.          “Restricted Payment” means any dividend or other distribution (whether in cash, securities or other  property) with respect to any Equity Interests in any Borrower or any Subsidiary, or any payment (whether  in cash,  securities  or other  property), including  any  sinking  fund  or  similar  deposit,  on  account of  the  purchase, redemption, retirement, acquisition, cancellation or termination of any such Equity Interests.          “Revaluation Date” shall mean, with respect to any Letter of Credit denominated in an Alternative  Currency, each of the following: (i) the date on which such Letter of Credit is issued, (ii) the first Business  Day of each calendar month, (iii) the date of any amendment of such Letter of Credit that has the effect of  increasing the face amount thereof, and (iv) any additional date as the Lender may determine at any time  when an Event of Default exists.         “Revolving Commitment” means the commitment of the Lender to make Revolving Loans and  issue  Letters  of Credit hereunder, as such  commitment may  be reduced  from time  to time  pursuant to  Section 2.07.  The initial amount of the Lender’s Revolving Commitment is $25,000,000.                                          23 

 

                                                                                                                                                                                                                                                 “Revolving Credit Maturity Date” means October 31, 2020 (if the same is a Business Day, or if not  then  the  immediately  next  succeeding  Business  Day), or  any  earlier  date  on  which  the Revolving  Commitment is reduced to zero or otherwise terminated pursuant to the terms hereof.         “Revolving Exposure” means, at any time, the sum of the aggregate outstanding principal amount  of the Lender’s Revolving Loans and its LC Exposure at such time.         “Revolving Loan” means a Loan made pursuant to Section 2.01.         “S&P” means Standard & Poor’s Ratings Services, a Standard & Poor’s Financial Services LLC  business.          “Sale and Leaseback Transaction” has the meaning assigned to such term in Section 6.06.           “Sanctioned Country” means, at any time, a country, region or territory which is the subject or  target of any Sanctions (at the time of this Agreement, Crimea, Cuba, Iran, North Korea, and Syria).         “Sanctioned  Person” means,  at  any  time,  (a) any  Person  listed  in  any  Sanctions-related  list  of  designated Persons maintained by OFAC, the U.S. Department of State or by the United Nations Security  Council, the European Union, any European Union member state, Her Majesty’s Treasury of the United  Kingdom or the Swiss State Secretariat for Economic Affairs SECO, the Swiss Directorate of International  Law or other relevant sanctions authority, (b) any Person operating, organized or resident in a Sanctioned  Country, (c) any Person owned or controlled by any such Person or Persons described in the foregoing  clauses (a) or (b) or (d) any Person otherwise the subject of any Sanctions.         “Sanctions” means all economic or financial sanctions or trade embargoes imposed, administered  or enforced from time to time by (a) the U.S. government, including those administered by OFAC or the  U.S. Department of State, (b) the United Nations Security Council, the European Union, any European  Union member state or Her Majesty’s Treasury of the United Kingdom, or (c) the Swiss State Secretariat  for  Economic  Affairs  SECO,  the  Swiss  Directorate  of  International  Law or  other  relevant  sanctions  authority.         “SEC” means the Securities and Exchange Commission of the U.S.         “Secured Obligations” means all Obligations, together with all (i) Banking Services Obligations  and (ii) Swap Agreement Obligations owing to the Lender or its Affiliates; provided, however, that the  definition of “Secured Obligations” shall not create any guarantee by (a) any Guarantor of (or grant of  security  interest  by any  Guarantor  to  support,  as  applicable)  any  Excluded  Swap  Obligations  of  such  Guarantor for purposes of determining any obligations of any Guarantor or (b) by the Swiss Borrower of  the Obligations, Banking Service Obligations and Swap Agreement Obligations of the Company or any  Guarantor that is a Domestic Subsidiary.         “Secured Parties” means (a) the Lender, (b) each provider of Banking Services, to the extent the  Banking Services Obligations in respect thereof constitute Secured Obligations, (c) each counterparty to  any  Swap  Agreement,  to  the  extent  the  obligations  thereunder  constitute  Secured  Obligations,  (d)  the  beneficiaries of each indemnification obligation undertaken by any Loan Party under any Loan Document  and (e) the permitted successors and assigns of each of the foregoing.          “Security Agreement” means that certain Pledge and Security Agreement (including any and all  supplements thereto), dated as of the date hereof, among the Company, its Domestic Subsidiaries that are                                          24 

 

                                                                                                                                                                                                                                           not Excluded Subsidiaries and the Lender, for the benefit of the Secured Parties, and any other pledge or  security agreement entered into, after the date of this Agreement by any other Loan Party (as required by  this Agreement or any other Loan Document) or any other Person for the benefit of the Lender, on behalf  of the Secured Parties, as the same may be amended, restated, supplemented or otherwise modified from  time to time.         “Statements” has the meaning assigned to such term in Section 2.16(d).           “Statutory Reserve Rate” means a fraction (expressed as a decimal), the numerator of which is the  number one and the denominator of which is the number one minus the aggregate of the maximum reserve  percentage  (including  any  marginal,  special,  emergency  or  supplemental  reserves)  established  by  the  Federal  Reserve Board  to  which  the  Lender  is  subject with  respect  to  the  Adjusted  LIBO  Rate,  for  eurocurrency funding (currently referred to as “Eurocurrency liabilities” in Regulation D).  Such reserve  percentages shall include those imposed pursuant to Regulation D of the Federal Reserve Board.  Eurodollar  Loans shall be deemed to constitute eurocurrency funding and to be subject to such reserve requirements  without benefit of or credit for proration, exemptions or offsets that may be available from time to time to  the Lender under Regulation D of the Federal Reserve Board or any comparable regulation.  The Statutory  Reserve Rate shall be adjusted automatically on and as of the effective date of any change in any reserve  percentage.         “Subordinated Indebtedness” of a Person means any Indebtedness of such Person, the payment of  which is subordinated to payment of the Secured Obligations to the reasonable written satisfaction of the  Lender.           “subsidiary” means, with respect to any Person (the “parent”) at any date, any corporation, limited  liability company, partnership, association or other entity the accounts of which would be consolidated with  those  of  the  parent  in  the  parent’s  consolidated  financial  statements  if  such  financial  statements  were  prepared in accordance with GAAP as of such date, as well as any other corporation, limited liability  company,  partnership,  association  or  other  entity  (a) of  which  securities  or  other  ownership  interests  representing more than 50% of the equity or more than 50% of the ordinary voting power or, in the case of  a partnership, more than 50% of the general partnership interests are, as of such date, owned, controlled or  held, or (b) that is, as of such date, otherwise Controlled, by the parent and/or by the parent and one or more  subsidiaries of the parent.         “Subsidiary” means any direct or indirect subsidiary of the Company, a Borrower or a Loan Party,  as applicable.         “Swap Agreement” means any agreement with respect to any swap, forward, spot, future, credit  default or derivative transaction or any option or similar agreement involving, or settled by reference to,  one or more rates, currencies, commodities, equity or debt instruments or securities, or economic, financial  or pricing indices or measures of economic, financial or pricing risk or value or any similar transaction or  any  combination  of  these  transactions; provided that no  phantom  stock  or  similar  plan  providing  for  payments  only  on  account  of  services  provided by  current  or  former  directors,  officers,  employees  or  consultants of the Borrowers or their Subsidiaries shall be a Swap Agreement.         “Swap Agreement Obligations” means  any and  all obligations of the  Loan  Parties or  their  Subsidiaries, whether absolute or contingent and howsoever and whensoever created, arising, evidenced or  acquired (including all renewals, extensions and modifications thereof and substitutions therefor), under (a)  any  Swap  Agreement  permitted  hereunder  with  the  Lender  or  an  Affiliate  of  the  Lender,  and  (b)  any                                          25 

 

                                                                                                                                                                                                                                           cancellations,  buy  backs,  reversals,  terminations  or  assignments  of  any  Swap  Agreement  transaction  permitted hereunder with the Lender or an Affiliate of the Lender.         “Swap Obligation” means, with respect to any Guarantor, any obligation to pay or perform under  any agreement, contract or transaction that constitutes a “swap” within the meaning of section 1a(47) of the  Commodity Exchange Act or any rules or regulations promulgated thereunder.         “Swiss Borrower” means Harmonic International GmbH, a limited liability company organized  under the laws of Switzerland with registered office at Avenue de la Gare 12, 1700 Fribourg, Switzerland  and business identification number CHE-114.530.405.          “Swiss Collateral Documents” means (i) that certain Security Assignment Agreement (including  any and all supplements thereto), dated as of the date hereof, among the Swiss Borrower as assignor and  the Lender as assignee, regarding the security assignment of the Swiss Borrower’s trade receivables, (ii)  that certain Intellectual Property Rights Pledge Agreement (including any and all supplements thereto),  dated as of the date hereof, among the Swiss Borrower as pledgor and the Lender as pledgee, regarding the  pledge of the Swiss Borrower’s intellectual property rights, and (iii) that certain Bank Account Pledge  Agreement (including any and all supplements thereto), dated as of the date set forth therein, among the  Swiss Borrower as pledgor and the Lender as pledgee, regarding the pledge of the Swiss Borrower’s bank  accounts, in each case as may be amended, restated, supplemented or otherwise modified from time to time.         “Swiss  Federal  Withholding  Tax  Act” means  the  Swiss  Federal  Withholding  Tax  Act  (Bundesgesetz über die Verrechnungssteuer vom 13 Oktober 1965); together with the related ordinances,  regulations and guidelines, all as amended and applicable from time to time.         “Swiss  Guidelines” means,  together,  guideline  S-02.123  in  relation  to  interbank  loans  of  22 September  1986  (Merkblatt “Verrechnungssteuer  auf  Zinsen  von  Bankguthaben,  deren  Gläubiger  Banken sind (Interbankguthaben)” vom 22. September 1986), guideline S-02.130.1 in relation to money  market instruments and book claims of April 1999 (Merkblatt vom April 1999 betreffend Geldmarktpapiere  und Buchforderungen inländischer Schuldner), circular letter No. 34 of 26. July 2011 (1-034-V-2011) in  relation to deposits (Kreisschreiben Nr. 34 “Kundenguthaben” vom 26. Juli 2011), circular letter No. 46 of  24 July 2019 in relation to syndicated credit facilities (Kreisschreiben Nr. 46 “Steuerliche Behandlung von  Konsortialdarlehen,  Schuldscheindarlehen,  Wechseln  und  Unterbeteiligungen” vom  24.  Juli  2019),  circular letter No. 47 of 25 July 2019 in relation to bonds (Kreissschreiben Nr. 47 “Obligationen” vom 25.  Juli 2019) and the circular letter No. 15 of 30 October 2017 (1-015-DVS-2017) in relation to bonds and  derivative  financial  instruments  as  subject  matter  of  taxation  of Swiss  federal  income  tax,  Swiss  withholding  tax  and  Swiss  stamp  taxes  (Kreisschreiben  Nr.  15 “Obligationen  und  derivative  Finanzinstrumente  als  Gegenstand  der  direkten  Bundessteuer,  der  Verrechnungssteuer  und  der  Stempelabgaben” vom 7. Februar 2007), in each case as issued, amended or replaced from time to time, by  the Swiss Federal Tax Administration or as substituted or superseded and overruled by any law, statute,  ordinance, court decision, regulation or the like as in force from time to time.         “Swiss Insolvency Event” means:                (a)   the Swiss Borrower is over-indebted (überschuldet) within the meaning of article  820 in connection with article 725 para. 2 of the Swiss Code of Obligations and its managing officers  become obliged to notify the competent bankruptcy court;                (b)   the Swiss Borrower suspends or announces its intention to suspend payments of  any of its debts; or                                          26 

 

                                                                                                                                                                                                                                                       (c)   a moratorium is declared in respect of any of the Swiss Borrower’s indebtedness;               (d)   any  corporate  action,  legal  proceedings  or  other  procedure  or  step (including  insolvency proceedings and filings for debtor protection) is taken in relation to:                     (i)   the  opening  of  bankruptcy  proceedings,  a  declaration  of  insolvency,  a        moratorium  of  any  indebtedness  (by  way  of  composition  moratorium  (Nachlassstundung)  or        otherwise), winding-up or dissolution of the Swiss Borrower;                     (ii)  a  composition,  compromise  or  arrangement  with  any  creditor  of  any        member of the Swiss Borrower;                      (iii) the  appointment  of  a  liquidator,  bankruptcy  administrator,  composition        commissioner or other similar officer in respect of the Swiss Borrower or any of its assets,                     or  any  analogous  procedure  or  step  is  taken  in  any  jurisdiction,  save  that  this        paragraph (d) shall not apply to any corporate action, legal proceeding or other procedure or step        which  is  frivolous  or  vexatious  and  is  discharged,  stayed  or  dismissed  within  21  days  of        commencement.         “Swiss Non-Bank Rules” means the Swiss Ten Non-Bank Rule and the Swiss Twenty Non-Bank  Rule.         “Swiss Qualifying Bank” means any person acting on its own account which is licensed as a bank  by the banking laws in force in its jurisdiction of incorporation and any branch of a legal entity, which is  licensed as a bank by the banking laws in force in the jurisdiction where such branch is situated, and which,  in  each  case,  exercises  as  its  main  purpose  a  true  banking  activity,  having  bank  personnel,  premises,  communication devices of its own and authority of decision making, all within the meaning of the Swiss  Guidelines.         “Swiss Ten Non-Bank Rule” means the rule that the aggregate number of creditors (within the  meaning of the Swiss Guidelines) under this Agreement which are not Swiss Qualifying Banks must not,  at any time, exceed 10.          “Swiss Twenty Non-Bank Rule” means the rule that (without duplication) the aggregate number of  creditors  (including  the  Lender),  other  than  Swiss  Qualifying  Banks,  of  the  Swiss  Borrower  under  all  outstanding debts relevant for classification as debenture (Kassenobligation) (including debt arising under  this Agreement), loans, facilities and/or private placements (including under this Agreement) must not, at  any time, exceed 20; in each case in accordance with the meaning of the Swiss Guidelines.          “Swiss Withholding Tax” means the Tax levied pursuant to the Swiss Federal Withholding Tax  Act.         “Taxes” means any and all present or future taxes, levies, imposts, duties, deductions, withholdings  (including backup withholding), value added taxes, or any other goods and services, use or sales taxes,  assessments,  fees  or  other  charges  imposed  by  any  Governmental  Authority,  including  any  interest,  additions to tax or penalties applicable thereto.                                          27 

 

                                                                                                                                                                                                                                                  “Transactions” means  the  execution,  delivery  and  performance  by  the Borrowers of  this  Agreement and the other Loan Documents, the borrowing of Loans and other credit extensions, and the  issuance of Letters of Credit hereunder.         “Type”, when used in reference to any Loan or Borrowing, refers to whether the rate of interest on  such Loan, or on the Loans comprising such Borrowing, is determined by reference to the Adjusted LIBO  Rate or the CB Floating Rate.         “UCC” means the Uniform Commercial Code as in effect from time to time in the State of New  York or in any other state, the laws of which are required to be applied in connection with the issue of  perfection of security interests.           “Unliquidated Obligations” means, at any time, any Secured Obligations (or portion thereof) that  are  contingent  in  nature  or  unliquidated at  such  time,  including  any  Secured  Obligation  that  is:  (i)  an  obligation to reimburse a bank for drawings not yet made under a letter of credit issued by it; (ii) any other  obligation (including any guarantee) that is contingent in nature at such time; or (iii) an obligation to provide  collateral to secure any of the foregoing types of obligations.           “U.S.” means the United States of America.         “U.S. Person” means any person that is a “United States person” as defined in Section 7701(a)(30)  of the Code.          “USA PATRIOT Act” means the Uniting and Strengthening America by Providing Appropriate  Tools Required to Intercept and Obstruct Terrorism Act of 2001.          “Withdrawal Liability” means liability to a Multiemployer Plan as a result of a complete or partial  withdrawal from such Multiemployer Plan, as such terms are defined in Part I of Subtitle E of Title IV of  ERISA.         SECTION 1.02   Classification  of  Loans  and  Borrowings.  For  purposes  of  this  Agreement,  Loans may be classified and referred to by class (e.g., a “Revolving Loan”) or by Type (e.g., a “Eurodollar  Loan”) or by class and Type (e.g., a “Eurodollar Revolving Loan”).  Borrowings also may be classified and  referred to by class (e.g., a “Revolving Borrowing”) or by Type (e.g., a “Eurodollar Borrowing”) or by class  and Type (e.g., a “Eurodollar Revolving Borrowing”).         SECTION 1.03   Terms Generally.  The definitions of terms herein shall apply equally to the  singular and plural forms of the terms defined.  Whenever the context may require, any pronoun shall  include the corresponding masculine, feminine and neuter forms.  The words “include”, “includes” and  “including” shall be deemed to be followed by the phrase “without limitation”.  The word “law” shall be  construed as referring to all statutes, rules, regulations, codes and other laws (including official rulings and  interpretations thereunder having the force of law or with which affected Persons customarily comply) and  all judgments, orders and decrees of all Governmental Authorities.  The word “will” shall be construed to  have  the  same  meaning and effect as  the  word “shall”.  Unless the  context requires  otherwise (a) any  definition of or reference to any agreement, instrument or other document herein shall be construed as  referring  to  such  agreement,  instrument  or  other  document  as  from  time  to  time  amended, restated,  supplemented  or  otherwise  modified  (subject  to  any  restrictions  on  such  amendments, restatements,  supplements or modifications set forth herein), (b) any definition of or reference to any statute, rule or  regulation shall be construed as referring thereto as from time to time amended, supplemented or otherwise  modified (including by succession of comparable successor laws), (c) any reference herein to any Person                                          28 

 

                                                                                                                                                                                                                                           shall  be  construed  to  include  such  Person’s  successors  and  assigns  (subject  to  any  restrictions  on  assignments set forth herein) and, in the case of any Governmental Authority, any other Governmental  Authority that shall have succeeded to any or all functions thereof, (d) the words “herein”, “hereof” and  “hereunder”, and words of similar import, shall be construed to refer to this Agreement in its entirety and  not to any particular provision hereof, (e) all references herein to Articles, Sections, Exhibits and Schedules  shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement, (f)  any reference in any definition to the phrase “at any time” or “for any period” shall refer to the same time  or  period  for  all  calculations  or  determinations  within  such  definition,  and  (g)  the  words “asset” and  “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and  intangible assets and properties, including cash, securities, accounts and contract rights.           SECTION 1.04   Accounting Terms; GAAP.                 (a)   Except  as  otherwise  expressly  provided  herein,  all  terms  of  an  accounting  or  financial nature shall be construed in accordance with GAAP, as in effect from time to time; provided that,  if after the date hereof there occurs any change in GAAP or in the application thereof on the operation of  any provision hereof and the Borrower Representative notifies the Lender that the Borrowers request an  amendment to any provision hereof to eliminate the effect of such change in GAAP or in the application  thereof (or if the Lender notifies the Borrower Representative that the Lender requests an amendment to  any provision hereof for such purpose), regardless of whether any such notice is given before or after such  change in GAAP or in the application thereof, then such provision shall be interpreted on the basis of GAAP  as in effect and applied immediately before such change shall have become effective until such notice shall  have  been  withdrawn  or  such  provision  amended  in  accordance  herewith. Notwithstanding  any  other  provision contained herein, all terms of an accounting or financial nature used herein shall be construed,  and all computations of amounts and ratios referred to herein shall be made (i) without giving effect to any  election under Financial Accounting Standards Board Accounting Standards Codification 825-10-25 (or  any other Accounting Standards Codification or Financial Accounting Standard having a similar result or  effect) to value any Indebtedness or other liabilities of the Company or any Subsidiary at “fair value”, as  defined therein and (ii) without giving effect to any treatment of Indebtedness in respect of convertible debt  instruments under Financial Accounting Standards Board Accounting Standards Codification 470-20 (or  any other Accounting Standards Codification or Financial Accounting Standard having a similar result or  effect) to value any such Indebtedness in a reduced or bifurcated manner as described therein, and such  Indebtedness shall at all times be valued at the full stated principal amount thereof.                (b)   Notwithstanding anything in this Agreement, including Section 1.04(a) and the  definition of “Capital Lease Obligations,” the obligations of any Person that are or would have been treated  as operating leases for purposes of GAAP prior to the issuance by the Financial Accounting Standard Board  on February 25, 2016 of an Accounting Standards Update (the “ASU”) shall continue to be accounted for  as operating leases for purposes of all financial definitions, calculations and covenants for purposes of this  Agreement (other than for purposes of the delivery of financial statements prepared in accordance with  GAAP) and shall  not  be  considered “Capital  Lease  Obligations”,  whether  or  not  such  operating  lease  obligations were in effect on such date, notwithstanding the fact that such obligations are or may be required  in accordance with the ASU (on a prospective or retroactive basis or otherwise) to be treated as capitalized  leases or financing leases in accordance with GAAP.         SECTION 1.05   Interest Rates; LIBOR Notification.  The interest rate on Eurodollar Loans is  determined  by  reference to  the  LIBO  Rate,  which  is  derived  from  the  London  interbank  offered  rate  (“LIBOR”).  LIBOR is intended to represent the rate at which contributing banks may obtain short-term  borrowings from each other in the London interbank market.  In July 2017, the U.K. Financial Conduct  Authority announced that, after the end of 2021, it would no longer persuade or compel contributing banks                                          29 

 

                                                                                                                                                                                                                                           to make rate submissions to the ICE Benchmark Administration (together with any successor to the ICE  Benchmark Administrator, the “IBA”) for purposes of the IBA setting LIBOR.  As a result, it is possible  that commencing in 2022, LIBOR may no longer be available or may no longer be deemed an appropriate  reference rate upon which to determine the interest rate on Eurodollar Loans.  In light of this eventuality,  public and private sector industry initiatives are currently underway to identify new or alternative reference  rates  to  be  used  in  place  of  LIBOR.   In  the  event  LIBOR  is  no  longer  available  (or  in  certain  other  circumstances), Section 2.12(c) of this Agreement provides a mechanism for determining an alternative  rate of interest. The Lender will notify the Borrower, pursuant to Section 2.12(c), in advance of any change  to the reference rate upon which the interest rate of Eurodollar Loans is based. However, the Lender does  not  warrant  or  accept  any  responsibility  for,  and  shall  not  have  any  liability  with  respect  to,  the  administration, submission or any other matter related to LIBOR or other rates in the definition of “LIBO  Rate” or  with  respect  to  any  alternative,  successor  rate  thereto,  or  replacement  rate  thereof,  including  without  limitation,  whether  the  composition  or  characteristics  of  any  such  alternative,  successor  or  replacement reference rate will be similar to, or produce the same value or economic equivalence of the  LIBO Rate or have the same volume or liquidity as did LIBOR prior to its discontinuance or unavailability.         SECTION 1.06   Status of Obligations.  In the event that any Borrower or any other Loan Party  shall at any time issue or have outstanding any Subordinated Indebtedness, such Borrower shall take or  cause such other Loan Party to take all such actions as shall be necessary to cause the Secured Obligations  to constitute senior indebtedness (however denominated) in respect of such Subordinated Indebtedness and  to enable the Lender to have and exercise any payment blockage or other remedies available or potentially  available to holders of senior indebtedness under the terms of such Subordinated Indebtedness.  Without  limiting  the  foregoing,  the  Secured  Obligations  are hereby  designated  as “senior  indebtedness” and  as  “designated senior indebtedness” and words of similar import under and in respect of any indenture or other  agreement or instrument under which such Subordinated Indebtedness is outstanding and are further given  all such other designations as shall be required under the terms of any such Subordinated Indebtedness in  order  that  the  Lender  may  have  and  exercise any  payment  blockage  or  other  remedies  available  or  potentially available to holders of senior indebtedness under the terms of such Subordinated Indebtedness.         SECTION 1.07   Times of Day.  Unless otherwise specified, all references herein to times of  day shall be references to Eastern time (daylight or standard, as applicable).         SECTION 1.08   Rounding.  Any financial ratios required to be maintained by any Loan Party  pursuant  to  this  Agreement  shall  be  calculated  by  dividing  the  appropriate  component  by  the  other  component, carrying the result to one place more than the number of places by which such ratio is expressed  herein and rounding the result up or down to the nearest number (with a rounding-up if there is no nearest  number).                                     ARTICLE II                                    The Credits         SECTION 2.01   Commitments.  Subject to the terms and conditions set forth herein, the Lender  agrees to make Revolving Loans in dollars to the Borrowers from time to time during the Availability  Period in an aggregate principal amount that will not result in the Revolving Exposure exceeding the lesser  of (i) the Revolving Commitment and (ii) the Aggregate Borrowing Base or the Borrowing Base of the  Borrower requesting such Borrowing.  Within the foregoing limits and subject to the terms and conditions  set forth herein, the Borrowers may borrow, prepay and reborrow Revolving Loans.         SECTION 2.02   Loans and Borrowings.                                            30 

 

                                                                                                                                                                                                                                                       (a)   Each Loan shall be made as part of a Borrowing consisting of Loans of the same  Type.                 (b)   Subject  to  Section 2.12,  each  Borrowing shall  be  comprised  entirely  of CBFR  Loans or Eurodollar Loans as the Borrower Representative may request in accordance herewith, provided  that all Borrowings made on the Effective Date must be made as CBFR Borrowings but may be converted  into Eurodollar Borrowings in accordance with Section 2.06.  The Lender at its option may make any  Eurodollar Loan by causing any domestic or foreign branch or Affiliate of the Lender to make such Loan  (and in the case of an Affiliate, the provisions of Sections 2.12, 2.13, 2.14 and 2.15 shall apply to such  Affiliate to the same extent as to the Lender); provided that any exercise of such option shall not affect the  obligation of the Borrowers to repay such Loan in accordance with the terms of this Agreement.                 (c)   At the commencement of each Interest Period for any Eurodollar Borrowing, such  Borrowing  shall  be  in  an  aggregate  amount  that  is  an  integral  multiple  of  $250,000 and  not less  than  $500,000.  CBFR Borrowings  may  be  in  any  amount.  Borrowings  of  more  than  one  Type  may  be  outstanding at the same time; provided that there shall not at any time be more than a total of 5 Eurodollar  Borrowings outstanding.                 (d)   Notwithstanding any other provision of this Agreement, the Borrowers shall not  be entitled to request, or to elect to convert or continue, any Borrowing if the Interest Period requested with  respect thereto would end after the Revolving Credit Maturity Date.          SECTION 2.03   Borrowing  Procedures;  Requests  for  Revolving  Borrowings.  To  request  a  Borrowing, the Borrower Representative shall notify the Lender of such request either in writing (delivered  by  hand  or  fax) by  delivering  a  Borrowing  Request  signed  by  a  Responsible  Officer  of  the  Borrower  Representative or through Electronic System, if arrangements  for doing so  have  been approved  by the  Lender, (x) in the case of a Eurodollar Borrowing, not later than 10:00 a.m. three Business Days before the  date of the proposed Borrowing or (y) in the case of a CBFR Borrowing, not later than noon on the date of  the proposed Borrowing; provided that any such notice of a CBFR Revolving Borrowing to finance the  reimbursement of an LC Disbursement as contemplated by Section 2.04(d) may be given not later than 9:00  a.m. on the date of the proposed Borrowing.  Each such Borrowing Request shall be irrevocable. Each such  Borrowing Request shall specify the following information in compliance with Section 2.01:                 (a)   the aggregate amount of the requested Borrowing, and a breakdown of the separate  wires comprising such Borrowing;               (b)   name of the applicable Borrower(s);                (c)   the date of such Borrowing, which shall be a Business Day;               (d)   whether such Borrowing is to be a CBFR Borrowing or a Eurodollar Borrowing;  and               (e)   in the case of a Eurodollar Borrowing, the initial Interest Period to be applicable  thereto, which shall be a period contemplated by the definition of the term “Interest Period.”   If no election as to the Type of Borrowing is specified, then the requested Borrowing shall be a CBFR  Borrowing.  If no Interest Period is specified with respect to any requested Eurodollar Borrowing, then the  applicable Borrower(s) shall be deemed to have selected an Interest Period of one month’s duration.                                            31 

 

                                                                                                                                                                                                                                                 SECTION 2.04   Letters of Credit.                 (a)   General.  Subject  to  the  terms  and  conditions  set  forth  herein,  the Borrower  Representative, on behalf of a Borrower, may request the issuance of Letters of Credit denominated in  dollars or in an Alternative Currency as the applicant thereof for the support of the obligations of any  Borrower or any Subsidiary thereof, in a form reasonably acceptable to the Lender, at any time and from  time  to  time  during the  Availability  Period; provided,  that  notwithstanding  the foregoing,  the Existing  Letters  of  Credit  may  be  denominated  in an  Alternative  Currency.   In  the  event  of  any  inconsistency  between the terms and conditions of this Agreement and the terms and conditions of any Letter of Credit  Agreement, the terms and conditions of this Agreement shall control.  Notwithstanding anything herein to  the contrary, the Lender shall have no obligation hereunder to issue, and shall not issue, any Letter of Credit  (i) the proceeds of which would be made available to any Person (A) to fund any activity or business of or  with any Sanctioned Person, or in any country or territory that, at the time of such funding, is the subject of  any Sanctions or (B) in any manner that would result in a violation of any Sanctions by any party to this  Agreement, (ii) if any order, judgment or decree of any Governmental Authority or arbitrator shall by its  terms purport to enjoin or restrain the Lender from issuing such Letter of Credit, or any Requirement of  Law relating to the Lender or any request or directive (whether or not having the force of law) from any  Governmental Authority with jurisdiction over the Lender shall prohibit, or request that the Lender refrain  from, the issuance of letters of credit generally or such Letter of Credit in particular or shall impose upon  the Lender with respect to such Letter of Credit any restriction, reserve or capital requirement (for which  the Lender is not otherwise compensated hereunder) not in effect on the Effective Date, or shall impose  upon the Lender any unreimbursed loss, cost or expense which was not applicable on the Effective Date  and which the Lender in good faith deems material to it, (iii) in the case of a request for a Letter of Credit  to be denominated in an Alternative Currency, if the Lender is not able to issue Letters of Credit in such  Alternative Currency, or (iv) if the issuance of such Letter of Credit would violate one or more policies of  the Lender applicable to letters of credit generally; provided that, notwithstanding anything herein to the  contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules,  guidelines, requirements or directives thereunder or issued in connection therewith or in the implementation  thereof, and (y) all requests,  rules,  guidelines, requirements  or directives promulgated  by the  Bank for  International  Settlements,  the  Basel  Committee  on  Banking  Supervision  (or  any  successor  or  similar  authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in  each case be deemed not to be in effect on the Effective Date for purposes of clause (ii) above, regardless  of the date enacted, adopted, issued or implemented.  As of the date hereof, the parties hereto acknowledge  and  agree  that  the  Existing  Letters  of  Credit  shall  be  deemed  to  be  issued  and  outstanding  under  this  Agreement.               (b)   Notice  of  Issuance,  Amendment,  Renewal,  Extension;  Certain  Conditions.  To  request the issuance of a Letter of Credit (or the amendment, renewal or extension of an outstanding Letter  of Credit), the Borrower Representative shall hand deliver or fax (or transmit through Electronic System,  if arrangements for doing so have been approved by the Lender) to the Lender (reasonably in advance of  the  requested  date  of  issuance,  amendment,  renewal  or  extension,  but  in  any  event  no  less  than  three  Business Days) a notice requesting the issuance of a Letter of Credit, or identifying the Letter of Credit to  be amended, renewed or extended, and specifying the date of issuance, amendment, renewal or extension  (which shall be a Business Day), the date on which such Letter of Credit is to expire (which shall comply  with  paragraph (c)  of  this  Section),  the  amount  of  such  Letter  of  Credit,  the  name  and  address  of  the  beneficiary thereof, and such other information as shall be necessary to prepare, amend, renew or extend  such Letter of Credit.  In addition, as a condition to any such Letter of Credit issuance, the applicable  Borrower  shall  have  entered  into  a  continuing  agreement  (or  other  letter  of  credit  agreement)  for  the  issuance of letters of credit and/or shall submit a letter of credit application, in each case, as required by the  Lender and using Lender’s standard form (each, a “Letter of Credit Agreement”).  A Letter of Credit shall                                         32 

 

                                                                                                                                                                                                                                           be issued, amended, renewed or extended only if (and upon issuance, amendment, renewal or extension of  each Letter of Credit the Borrowers shall be deemed to represent and warrant that), after giving effect to  such issuance, amendment, renewal or extension the Revolving Exposure shall not exceed the lesser of the  Revolving  Commitment and the Aggregate  Borrowing  Base  or  the  Borrowing  Base  of the  Borrower  requesting such Letter of Credit.               (c)   Expiration Date.  Each Letter of Credit shall expire (or be subject to termination  or non-renewal by notice from the Lender to the beneficiary thereof) at or prior to the close of business on  the earlier of (i) the date one year after the date of the issuance of such Letter of Credit (or, in the case of  any renewal or extension thereof, including, without limitation, any automatic renewal provision, one year  after such renewal or extension) and (ii) the date that is five Business Days prior to the Revolving Credit  Maturity Date.                (d)   Reimbursement.  If the Lender shall make any LC Disbursement in respect of a  Letter of Credit, the Borrowers shall reimburse such LC Disbursement by paying to the Lender an amount  equal to such LC Disbursement in dollars (or, if such LC Disbursement is denominated in an Alternative  Currency, in the applicable Alternative Currency) not later than 11:00 a.m. on (i) the Business Day that the  Borrower Representative receives notice of such LC Disbursement, if such notice is received prior to 9:00  a.m. on  the  day  of  receipt,  or  (ii)  the  Business  Day  immediately  following  the  day  that  the Borrower  Representative receives such notice, if such notice is received after 9:00 a.m. on the day of receipt; provided  that if such LC Disbursement is denominated in dollars, the Borrowers may, subject to the conditions to  borrowing set forth herein, request in accordance with Section 2.03 or 2.05 that such payment be financed  with a CBFR Revolving Borrowing in an equivalent amount and, to the extent so financed, the Borrowers’  obligation  to  make  such  payment  shall  be  discharged  and  replaced  by  the  resulting CBFR Revolving  Borrowing.                 (e)   Obligations Absolute.  The Borrowers’ joint and several obligation to reimburse  LC  Disbursements  as  provided  in  paragraph (d)  of  this  Section  shall  be  absolute,  unconditional  and  irrevocable, and shall be performed strictly in accordance with the terms of this Agreement under any and  all circumstances whatsoever and irrespective of any (i) lack of validity or enforceability of any Letter of  Credit, any Letter of Credit Agreement or this Agreement, or any term or provision therein or herein, (ii)  draft or other document presented under a Letter of Credit proving to be forged, fraudulent or invalid in any  respect or any statement therein being untrue or inaccurate in any respect, (iii) payment by the Lender under  a Letter of Credit against presentation of a draft or other document that does not comply with the terms of  such Letter of Credit, or (iv) other event or circumstance whatsoever, whether or not similar to any of the  foregoing, that might, but for the provisions of this Section, constitute a legal or equitable discharge of, or  provide a right of setoff against, the Borrowers’ obligations hereunder.  Neither the Lender nor any of its  Related Parties shall have any liability or responsibility by reason of or in connection with the issuance or  transfer of any Letter of Credit, any payment or failure to make any payment thereunder (irrespective of  any of the circumstances referred to in the preceding sentence), or any error, omission, interruption, loss or  delay in transmission or delivery of any draft, notice or other communication under or relating to any Letter  of Credit (including any document required to make a drawing thereunder), any error in interpretation of  technical terms or any consequence arising from causes beyond the control of the Lender; provided that the  foregoing shall not be construed to excuse the Lender from liability to the Borrowers to the extent of any  direct damages (as opposed to special, indirect, consequential or punitive damages, claims in respect of  which are hereby waived by the Borrowers to the extent permitted by applicable law) suffered by any  Borrower that are caused by the Lender’s failure to exercise care when determining whether drafts and  other documents presented under a Letter of Credit comply with the terms thereof.  The parties hereto  expressly agree that, in the absence of gross negligence or willful misconduct on the part of the Lender (as  finally determined by a court of competent jurisdiction), the Lender shall be deemed to have exercised care                                         33 

 

                                                                                                                                                                                                                                           in each such determination.  In furtherance of the foregoing and without limiting the generality thereof, the  parties  agree that, with respect to documents  presented  which appear on their face to be in substantial  compliance with the terms of a Letter of Credit, the Lender may, in its sole discretion, either accept and  make  payment  upon  such documents  without  responsibility  for  further  investigation, regardless  of  any  notice or information to the contrary, or refuse to accept and make payment upon such documents if such  documents are not in strict compliance with the terms of such Letter of Credit.                 (f)   Disbursement  Procedures.  The Lender shall,  promptly  following  its  receipt  thereof, examine all documents purporting to represent a demand for payment under a Letter of Credit.  The  Lender shall  promptly  notify  the Borrower Representative by  telephone  (confirmed  by fax or  through  Electronic Systems) of such demand for payment and whether the Lender has made or will make an LC  Disbursement thereunder; provided that any failure to give or delay in giving such notice shall not relieve  the Borrowers of their obligation to reimburse the Lender with respect to any such LC Disbursement.                 (g)   Interim Interest.  If the Lender shall make any LC Disbursement, then, unless the  Borrowers shall reimburse such LC Disbursement in full on the date such LC Disbursement is made, the  unpaid amount thereof shall bear interest, for each day from and including the date such LC Disbursement  is made to but excluding the date that the Borrowers reimburse such LC Disbursement, at the rate per annum  then applicable to CBFR Revolving Loans (or if such LC Disbursement is denominated in an Alternative  Currency, the rate determined by the Lender in accordance with banking industry rules and conventions on  interbank compensation for such Alternative Currency plus the then effective Applicable Rate with respect  to Eurodollar Loans) and such interest shall be due and payable on the date when such reimbursement is  due; provided that,  if  the  Borrowers fail  to  reimburse  such  LC  Disbursement  when  due  pursuant  to  paragraph (d) of this Section, then Section 2.11(c) shall apply.  Interest accrued pursuant to this paragraph  shall be for the account of the Lender.                 (h)   Cash Collateralization.  If any Event of Default shall occur and be continuing, on  the Business Day that the Borrower Representative receives notice from the Lender demanding the deposit  of cash collateral pursuant to this paragraph, the Borrowers shall deposit in an account with the Lender, in  the name and for the benefit of the Lender (the “LC Collateral Account”), an amount in cash equal to 105%  of the amount of the LC Exposure as of such date plus accrued and unpaid interest thereon; provided that  the obligation to deposit such cash collateral shall become effective immediately, and such deposit shall  become immediately due and payable, without demand or other notice of any kind, upon the occurrence of  any  Event  of  Default  with  respect  to any Borrower described  in  clause (h) or (i) of Article VII.  The  Borrowers also shall deposit cash collateral in accordance with this paragraph as and to the extent required  by  Section 2.09(b).  Each  such  deposit  shall  be  held  by  the Lender as  collateral  for  the  payment  and  performance of the Secured Obligations.  The Lender shall have exclusive dominion and control, including  the exclusive right of withdrawal, over the LC Collateral Account and the Borrowers hereby grant the  Lender a security interest in the LC Collateral Account and all moneys or other assets on deposit therein or  credited thereto.  Other than any interest earned on the investment of such deposits, which investments shall  be made at the option and sole discretion of the Lender and at the Borrowers’ risk and expense, such deposits  shall not bear interest.  Interest or profits, if any, on such investments shall accumulate in such account.   Moneys in such account shall be applied by the Lender for LC Disbursements for which it has not been  reimbursed  and,  to  the  extent  not  so  applied,  shall  be  held  for  the  satisfaction  of  the  reimbursement  obligations of the Borrowers for the LC Exposure at such time or, if the maturity of the Loans has been  accelerated, be applied to satisfy other Secured Obligations.  If the Borrowers are required to provide an  amount of cash collateral hereunder as a result of the occurrence of an Event of Default, such amount (to  the extent not applied as aforesaid) shall be returned to the Borrowers within three Business Days after all  such Events of Default have been cured or waived as confirmed in writing by the Lender.                                           34 

 

                                                                                                                                                                                                                                                       (i)   LC Exposure Determination.  For all purposes of this Agreement, the amount of a  Letter of Credit that, by its terms or the terms of any document related thereto, provides for one or more  automatic increases in the stated amount thereof shall be deemed to be the maximum stated amount of such  Letter of Credit after giving effect to all such increases, whether or not such maximum stated amount is in  effect at the time of determination.               (j)   Letters of Credit Issued for Account of Subsidiaries.  Notwithstanding that a Letter  of Credit issued or outstanding hereunder supports any obligations of, or is for the account of, a Subsidiary,  or states that a Subsidiary is the “account party,” “applicant,” “customer,” “instructing party,” or the like  of or for such Letter of Credit, and without derogating from any rights of the Lender (whether arising by  contract, at law, in equity or otherwise) against such Subsidiary in respect of such Letter of Credit, the  Borrowers (i) shall reimburse, indemnify and compensate the Lender hereunder for such Letter of Credit  (including to reimburse any and all drawings thereunder) as if such Letter of Credit had been issued solely  for the account of such Borrower and (ii) irrevocably waives any and all defenses that might otherwise be  available to it as a guarantor or surety of any or all of the obligations of such Subsidiary in respect of such  Letter of Credit.  Each Borrower hereby acknowledges that the issuance of such Letters of Credit for its  Subsidiaries inures to the benefit of such Borrower, and that such Borrower’s business derives substantial  benefits from the businesses of such Subsidiaries.         SECTION 2.05   Funding of Borrowings.  The Lender shall make each Loan to be made by it  hereunder on the proposed date thereof available to the Borrowers by promptly crediting the amounts in  immediately available funds, to the Funding Account(s); provided that CBFR Revolving Loans made to  finance the reimbursement of an LC Disbursement as provided in Section 2.04(d) shall be remitted to the  Lender.          SECTION 2.06   Interest Elections.               (a)   Each Borrowing initially shall be of the Type specified in the applicable Borrowing  Request and, in the case of a Eurodollar Borrowing, shall have an initial Interest Period as specified in such  Borrowing Request.  Thereafter, the Borrower Representative may elect to convert such Borrowing to a  different Type or to continue such Borrowing and, in the case of a Eurodollar Borrowing, may elect Interest  Periods therefor, all as provided in this Section.  The Borrower Representative may elect different options  with respect to different portions of the affected Borrowing, and the Loans comprising each such portion  shall be considered a separate Borrowing.                 (b)   To make an election pursuant to this Section, the Borrower Representative shall  notify the Lender of such election either in writing (delivered by hand or fax) by delivering an Interest  Election Request signed by a Responsible Officer of the Borrower Representative or through Electronic  System, if arrangements for doing so have been approved by the Lender, by the time that a Borrowing  Request would be required under Section 2.03 if the Borrowers were requesting a Borrowing of the Type  resulting from such election to be made on the effective date of such election.  Each such Interest Election  Request shall be irrevocable.                (c)   Each  telephonic  and  written  Interest  Election  Request (including  requests  submitted through  Electronic  System) shall  specify  the  following  information  in  compliance  with  Section 2.02:                     (i)   the name of the applicable Borrower and the Borrowing to which such        Interest Election Request applies and, if different options are being elected with respect to different        portions thereof, the portions thereof to be allocated to each resulting Borrowing (in which case the                                          35 

 

                                                                                                                                                                                                                                                 information to be  specified  pursuant to  clauses  (iii) and  (iv)  below  shall  be  specified  for each        resulting Borrowing);                     (ii)  the effective date of the election made pursuant to such Interest Election        Request, which shall be a Business Day;                     (iii) whether  the  resulting  Borrowing  is  to  be a  CBFR Borrowing  or a        Eurodollar Borrowing; and                     (iv)  if the resulting Borrowing is a Eurodollar Borrowing, the Interest Period        to be applicable thereto after giving effect to such election, which shall be a period contemplated        by the definition of the term “Interest Period”.   If any such Interest Election Request requests a Eurodollar Borrowing but does not specify an Interest  Period, then the Borrowers shall be deemed to have selected an Interest Period of one month’s duration.               (d)   If the Borrower Representative fails to deliver a timely Interest Election Request  with respect to a Eurodollar Borrowing prior to the end of the Interest Period applicable thereto, then, unless  such Borrowing is repaid as provided herein, at the end of such Interest Period such Borrowing shall be  converted to a CBFR Borrowing.  Notwithstanding any contrary provision hereof, if an Event of Default  has occurred and is continuing and the Lender so notifies the Borrower Representative, then, so long as an  Event  of  Default  is  continuing  (i)  no  outstanding  Borrowing  may  be  converted  to  or  continued  as  a  Eurodollar Borrowing and (ii) unless repaid, each Eurodollar Borrowing shall be converted to a CBFR  Borrowing at the end of the Interest Period applicable thereto.         SECTION 2.07   Termination and Reduction of Commitment.                (a)   Unless previously terminated, the Revolving Commitment shall terminate on the  Revolving Credit Maturity Date.                 (b)   The Borrowers may at any time terminate the Revolving Commitment upon the  Payment in Full of the Secured Obligations.               (c)   The Borrowers may  from  time  to  time  reduce  the Revolving  Commitment;  provided that (i) each reduction of the Revolving Commitment shall be in an amount that is an integral  multiple of $500,000 and not less than $1,000,000 and (ii) the Borrowers shall not terminate or reduce the  Revolving Commitment if, after giving effect to any concurrent prepayment of the Revolving Loans in  accordance with Section 2.09, the Revolving Exposure would exceed the Revolving Commitment.                (d)   The Borrower Representative shall notify the Lender of any election to terminate  or reduce the Revolving Commitment under paragraph (b) or (c) of this Section at least three Business Days  prior to the effective date of such termination or reduction, specifying such election and the effective date  thereof.  Each notice delivered by the Borrower Representative pursuant to this Section shall be irrevocable;  provided that a notice of termination or reduction of the Revolving Commitment delivered by the Borrower  Representative may state that such notice is conditioned upon the effectiveness of other credit facilities or  consummation of other events, in which case such notice may be revoked by the Borrower Representative  (by notice to the Lender on or prior to the specified effective date) if such condition is not satisfied.  Any  termination or reduction of the Revolving Commitment shall be permanent.           SECTION 2.08   Repayment of Loans; Evidence of Debt.                                          36 

 

                                                                                                                                                                                                                                                       (a)   The Borrowers hereby unconditionally promise to pay the Lender the then unpaid  principal amount of each Revolving Loan on the Revolving Credit Maturity Date.                (b)   The Lender  shall  maintain  in  accordance  with  its  usual  practice  an  account or  accounts evidencing the Indebtedness of the Borrowers to the Lender resulting from each Loan made by  the Lender, including the amounts of principal and interest payable and paid to the Lender from time to  time hereunder.               (c)   The Lender shall maintain accounts in which it shall record (i) the amount of each  Loan made hereunder, the Type thereof and the Interest Period applicable thereto, if any, (ii) the amount of  any principal or interest due and payable or to become due and payable from the Borrowers to the Lender  hereunder and (iii) the amount of any sum received by the Lender hereunder.               (d)   The entries made in the accounts maintained pursuant to paragraph (b) or (c) of  this  Section  shall  be,  absent  manifest  error, prima facie evidence  of the  existence  and  amounts  of the  obligations recorded therein; provided that the failure of the Lender to maintain such accounts or any error  therein shall not in any manner affect the obligation of the Borrowers to repay the Loans in accordance with  the terms of this Agreement.               (e)   The Lender may request that Loans made by it be evidenced by a promissory note.   In such event, the Borrowers shall prepare, execute and deliver to the Lender a promissory note payable to  the Lender (or, if requested by the Lender, to the Lender and its registered assigns) and in a form approved  by the Lender.  Thereafter, the Loans evidenced by such promissory note and interest thereon shall at all  times (including after assignment pursuant to Section 8.04) be represented by one or more promissory notes  in such form.         SECTION 2.09   Prepayment of Loans.                 (a)   The Borrowers shall have the right at any time and from time to time to prepay any  Borrowing in whole or in part, subject to prior notice in accordance with paragraph (e) of this Section and,  if applicable, payment of any break funding expenses under Section 2.14.               (b)   In the event and on such occasion that (i) other than as a result of fluctuations in  currency exchange rates, the Revolving Exposure exceeds the lesser of (x) the Revolving Commitment and  (y) the Aggregate Borrowing Base, or (ii) solely as a result of fluctuations in currency exchange rates, the  Revolving  Exposure,  as  of  the  most  recent  Revaluation  Date,  exceeds  105%  of  the  lesser  of  (x)  the  Revolving Commitment and (y) the Aggregate Borrowing Base, then in each case, the Borrowers shall  prepay the Revolving Loans, and/or LC Exposure (or, if no such Borrowings are outstanding, deposit cash  collateral in the LC Collateral Account in an aggregate amount equal to such excess, in accordance with  Section 2.04(h)).  In each case proceeding in this clause (b), the Dollar Equivalent of each such calculation  shall be calculated, with respect to LC Exposure denominated in an Alternative Currency, as of the most  recent Revaluation Date.               (c)   The Borrower Representative shall notify the Lender by telephone (confirmed by  fax) or through Electronic System, if arrangements for doing so have been approved by the Lender, of any  prepayment under this Section:  (i) in the case of prepayment of a Eurodollar Borrowing, not later than  10:00 a.m. three Business Days before the date of prepayment, or (ii) in the case of prepayment of a CBFR  Borrowing, not later than 10:00 a.m. one Business Day before the date of prepayment.  Each such notice  shall be irrevocable and shall specify the prepayment date and the principal amount of each Borrowing or  portion thereof to be prepaid; provided that a notice of prepayment may state that such notice is conditioned                                          37 

 

                                                                                                                                                                                                                                           upon the effectiveness of other credit facilities or consummation of other events, in which case such notice  may  be  revoked  by  the  Borrower  Representative  (by  notice to the  Lender on or  prior to the  specified  effective date) if such condition is not satisfied.  Each partial prepayment of any Borrowing shall be in an  amount that would be permitted in the case of an advance of a Borrowing of the same Type as provided in  Section 2.02, except as necessary to apply fully the required amount of a mandatory prepayment.  Each  prepayment  of  a  Borrowing  shall  be  applied  ratably  to  the  Loans  included  in  the prepaid  Borrowing.   Prepayments shall be accompanied by (A) accrued interest to the extent required by Section 2.11 and (B)  break funding payments pursuant to Section 2.14.         SECTION 2.10   Fees.                 (a)   The Borrowers agree to pay to the Lender a commitment fee, which shall accrue  at the Applicable Rate on the daily amount of the undrawn portion of the Revolving Commitment during  the period from and including the Effective Date to but excluding the date on which the Lender’s Revolving  Commitment terminates; it being understood that the LC Exposure shall be included in the drawn portion  of the Revolving Commitment for purposes of calculating the commitment fee.  Accrued commitment fees  shall be payable in arrears on the last day of March, June, September and December of each year and on  the date on which the Revolving Commitment terminates, commencing on the first such date to occur after  the date hereof.  All commitment fees shall be computed on the basis of a year of 360 days and shall be  payable for the actual number of days elapsed (including the first day but excluding the last day).                (b)   The Borrowers agree to pay (i) to the Lender a letter of credit fee with respect to  Letters  of  Credit,  which  shall  accrue  at  the  same  Applicable  Rate  used  to  determine  the  interest  rate  applicable  to  Eurodollar  Revolving  Loans  on  the  daily Dollar  Equivalent amount  of the Lender’s  LC  Exposure (excluding any portion thereof attributable to unreimbursed LC Disbursements) during the period  from  and  including  the  Effective  Date  to  but  excluding  the  later  of  the  date  on  which the Revolving  Commitment terminates and the date on which the Lender ceases to have any LC Exposure, and (ii) the  Lender’s standard fees and commissions with respect to the issuance, amendment, cancellation, negotiation,  transfer, presentment, renewal or extension of any Letter of Credit or processing of drawings thereunder.   Letter of credit fees accrued through and including the last day of March, June, September and December  of each year shall be payable on the third Business Day following such last day, commencing on the first  such date to occur after the Effective Date; provided that all such fees shall be payable on the date on which  the Revolving Commitment terminates and any such fees accruing after the date on which the Revolving  Commitment terminates shall be payable on demand.  Any other fees payable to the Lender pursuant to this  paragraph shall be payable within 10 days after demand.  All letter of credit fees shall be computed on the  basis of a year of 360 days and shall be payable for the actual number of days elapsed (including the first  day but excluding the last day).               (c)   The Borrowers agree to pay to the Lender a closing fee in an aggregate amount  equal to $62,500.  The entire closing fee shall be deemed fully earned by the Lender and shall be due and  payable in full on the Effective Date.                 (d)   All fees payable hereunder shall be paid on the dates due, in immediately available  funds, to the Lender.  Fees paid shall not be refundable under any circumstances.         SECTION 2.11      Interest.                 (a)   The Loans comprising each CBFR Borrowing shall bear interest at the CB Floating  Rate plus the Applicable Rate.                                          38 

 

                                                                                                                                                                                                                                                       (b)   The  Loans  comprising  each  Eurodollar  Borrowing  shall  bear  interest  at  the  Adjusted LIBO Rate for the Interest Period in effect for such Borrowing plus the Applicable Rate.               (c)   Notwithstanding the foregoing, during the occurrence and continuance of an Event  of Default, the Lender may, at its option, by notice to the Borrower Representative, declare that (i) all Loans  shall bear interest at 2% plus the rate otherwise applicable to such Loans as provided in the preceding  paragraphs of this Section or (ii) in the case of any other amount outstanding hereunder, such amount shall  accrue at 2% plus the rate applicable to such fee or other obligation as provided hereunder.                (d)   Accrued interest on each Loan (for CBFR Loans, accrued through the last day of  the prior calendar month) shall be payable in arrears on each Interest Payment Date for such Loan and, in  the case of Revolving Loans, upon termination of the Revolving Commitment; provided that (i) interest  accrued pursuant to paragraph  (c) of this  Section shall be  payable on demand,  (ii) in the event of any  repayment or prepayment of any Loan (other than a prepayment of a CBFR Revolving Loan prior to the  end of the Availability Period), accrued interest on the principal amount repaid or prepaid shall be payable  on the date of such repayment or prepayment and (iii) in the event of any conversion of any Eurodollar  Loan prior to the end of the current Interest Period therefor, accrued interest on such Loan shall be payable  on the effective date of such conversion.               (e)   All interest hereunder shall be computed on the basis of a year of 360 days and  shall be payable for the actual number of days elapsed (including the first day but excluding the last day).   The applicable CB Floating Rate, Adjusted LIBO Rate or LIBO Rate shall be determined by the Lender,  and such determination shall be conclusive absent manifest error.               (f)   With  respect  to  the  Swiss  Borrower,  (i)  the  interest  rates  provided  for  in  this  Agreement, including this Section 2.11, are minimum interest rates, (ii) when entering into this Agreement,  the parties have assumed that the interest payable at the rates set out in this Section or in other Sections of  this Agreement is not and will not become subject to the Swiss Withholding Tax, (iii) notwithstanding that  the parties do not anticipate that any payment of interest will be subject to the Swiss Withholding Tax, they  agree  that,  in  the  event  that  the  Swiss  Withholding  Tax  should  be  imposed  on  interest  payments,  the  payment of interest due by the Swiss Borrower shall, in line with and subject to Section 2.15 including the  limitations therein, be increased to an amount which (after making any deduction of the Non-Refundable  Portion (as defined below) of the Swiss Withholding Tax) results in a payment to the Lender of an amount  equal  to  the  payment  which  would  have  been  due  had  no  deduction  of  Swiss  Withholding  Tax  been  required, (iv) for this purpose, the Swiss Withholding Tax shall be calculated on the full grossed-up interest  amount (for the purposes of this Section, “Non-Refundable Portion” shall mean Swiss Withholding Tax at  the standard rate (being, as at the date hereof, 35%) unless a tax ruling issued by the Swiss Federal Tax  Administration (SFTA) confirms that, in relation to the Lender based on an applicable double tax treaty (or  based on Swiss domestic tax laws), the Non-Refundable Portion is a specified lower rate in which case such  lower rate shall be applied in relation to the Lender), and (v) the Swiss Borrower shall provide to the Lender  the documents required by law or applicable double taxation treaties for the Lender to claim a refund of  any Swiss Withholding Tax so deducted.         SECTION 2.12   Alternate Rate of Interest; Illegality.                 (a)   If prior to the commencement of any Interest Period for a Eurodollar Borrowing:                     (i)   the Lender determines  (which  determination  shall  be  conclusive  and        binding absent manifest error) that adequate and reasonable means do not exist for ascertaining the        Adjusted LIBO Rate or the LIBO Rate, as applicable (including, without limitation, by means of                                          39 

 

                                                                                                                                                                                                                                                 an Interpolated Rate or because the LIBO Screen Rate is not available or published on a current        basis) for such Interest Period; or                     (ii)  the Lender  determines  the Adjusted  LIBO Rate  or  the  LIBO  Rate,  as        applicable, for such Interest Period will not adequately and fairly reflect the cost to the Lender of        making or maintaining its Loans (or Loan) included in such Borrowing for such Interest Period;   then the Lender shall give notice thereof to the Borrower Representative by telephone, fax or through an  Electronic System as provided in Section 8.01 as promptly as practicable thereafter and, until the Lender  notifies the Borrower Representative that the circumstances giving rise to such notice no longer exist, (A)  any Interest Election Request that requests the conversion of any Borrowing to, or continuation of any  Borrowing as, a Eurodollar Borrowing shall be ineffective and any such Eurodollar Borrowing shall be  repaid or converted into a CBFR Borrowing on the last day of the then current Interest Period applicable  thereto, and (B) if any Borrowing Request requests a Eurodollar Borrowing, such Borrowing shall be made  as a CBFR Borrowing.                (b)   If the Lender determines that any Requirement of Law has made it unlawful, or if  any Governmental Authority has asserted that it is unlawful, for the Lender or its applicable lending office  to  make,  maintain,  fund  or  continue  any  Eurodollar  Borrowing,  or  any  Governmental  Authority  has  imposed material restrictions on the authority of the Lender to purchase or sell, or to take deposits of, dollars  in the London interbank market, then, on notice thereof by the Lender to the Borrower Representative, any  obligations  of  the  Lender  to  make,  maintain,  fund  or  continue  Eurodollar  Loans  or  to  convert  CBFR  Borrowings  to  Eurodollar  Borrowings  will be  suspended  until  the  Lender  notifies  the  Borrower  Representative that the circumstances giving rise to such determination no longer exist.  Upon receipt of  such notice, the Borrowers will upon demand from the Lender, either prepay or convert all Eurodollar  Borrowings of the Lender to CBFR Borrowings, either on the last day of the Interest Period therefor, if the  Lender may lawfully continue to maintain such Eurodollar Borrowings to such day, or immediately, if the  Lender may not lawfully continue to maintain such Loans.  Upon any such prepayment or conversion, the  Borrowers will also pay accrued interest on the amount so prepaid or converted.                (c)   If at any  time  the  Lender determines (which  determination shall be  conclusive  absent manifest error) that (i) the circumstances set forth in clause (a)(i) have arisen and such circumstances  are unlikely to be temporary or (ii) the circumstances set forth in clause (a)(i) have not arisen but either (w)  the  supervisor  for  the  administrator  of  the  LIBO  Screen  Rate  has  made  a  public  statement  that  the  administrator  of  the  LIBO  Screen  Rate  is  insolvent  (and  there  is  no  successor  administrator  that  will  continue publication of the LIBO Screen Rate), (x) the administrator of the LIBO Screen Rate has made a  public  statement  identifying  a  specific  date  after  which  the  LIBO  Screen  Rate  will  permanently  or  indefinitely cease to be published by it (and there is no successor administrator that will continue publication  of the LIBO Screen Rate), (y) the supervisor for the administrator of the LIBO Screen Rate has made a  public  statement  identifying  a  specific  date  after  which  the  LIBO  Screen  Rate  will  permanently  or  indefinitely cease to be published or (z) the supervisor for the administrator of the LIBO Screen Rate or a  Governmental Authority having jurisdiction over the Lender has made a public statement identifying a  specific date after which the LIBO Screen Rate may no longer be used for determining interest rates for  loans, then the Lender and the Borrower Representative shall endeavor to establish an alternate rate of  interest  to  the  LIBO  Rate  that  gives  due  consideration  to  the  then  prevailing  market  convention  for  determining a  rate  of interest for bank loans  in the United States  at such time,  and  shall enter into an  amendment to this Agreement to reflect such alternate rate of interest and such other related changes to this  Agreement as may be applicable (but, for the avoidance of doubt, such related changes shall not include a  reduction of the Applicable Rate).  Until an alternate rate of interest shall be determined in accordance with  this clause (c) (but, in the case of the circumstances described in clauses (ii)(w), (ii)(x) or (ii)(y) of the first                                          40 

 

                                                                                                                                                                                                                                           sentence of this Section 2.12(c), only to the extent the LIBO Screen Rate for such Interest Period is not  available or published at such time on a current basis), (x) any Interest Election Request that requests the  conversion of any Borrowing to, or continuation of any Borrowing as, a Eurodollar Borrowing shall be  ineffective and any such Eurodollar Borrowing shall be repaid or converted into a CBFR Borrowing on the  last day of the then current Interest Period applicable thereto, and (y) if any Borrowing Request requests a  Eurodollar Borrowing, such Borrowing shall be made as a CBFR Borrowing; provided that, if such alternate  rate  of  interest  shall  be  less  than  zero,  such  rate  shall  be  deemed  to  be  zero  for  the  purposes  of  this  Agreement.         SECTION 2.13   Increased Costs.                 (a)   If any Change in Law shall:                     (i)   impose, modify or deem applicable any reserve, special deposit, liquidity        or  similar  requirement  (including  any  compulsory  loan  requirement,  insurance  charge  or  other        assessment) against assets of, deposits with or for the account of, or credit extended by, the Lender        (except any such reserve requirement reflected in the Adjusted LIBO Rate); or                     (ii)  impose on the Lender or the London interbank market any other condition,        cost or expense (other than Taxes) affecting this Agreement or Loans made by the Lender or any        Letter of Credit; or                     (iii) subject the Lender to any Taxes (other than (A) Indemnified Taxes, (B)        Taxes described in clauses (b) through (d) of the definition of Excluded Taxes and (C) Connection        Income Taxes) on its loans, loan principal, letters of credit, commitments, or other obligations, or        its deposits, reserves, other liabilities or capital attributable thereto;   and the result of any of the foregoing shall be to increase the cost to the Lender of making, continuing,  converting into or maintaining any Loan (or of maintaining its obligation to make any such Loan) or to  increase the cost to the Lender of issuing or maintaining any Letter of Credit or to reduce the amount of  any sum received or receivable by the Lender hereunder (whether of principal, interest or otherwise), then  the Borrowers will pay to the Lender such additional amount or amounts as will compensate the Lender for  such additional costs incurred or reduction suffered.               (b)   If the Lender determines that any Change in Law regarding capital or liquidity  requirements has or would have the effect of reducing the rate of return on the Lender’s capital or on the  capital of the Lender’s holding company as a consequence of this Agreement, the Revolving Commitment  or the Loans made by Letters of Credit issued by the Lender to a level below that which the Lender or the  Lender’s holding company could have achieved but for such Change in Law (taking into consideration the  Lender’s policies and the policies of the Lender’s holding company with respect to capital adequacy and  liquidity), then from time to time the Borrowers will pay to the Lender such additional amount or amounts  as will compensate the Lender or the Lender’s holding company for any such reduction suffered.               (c)   A certificate of the Lender setting forth in reasonable detail the amount or amounts  necessary  to  compensate the Lender  or  its  holding  company,  as  the  case  may  be,  as  specified  in  paragraph (a) or (b) of this Section shall be delivered to the Borrower Representative and shall be conclusive  absent manifest error.  The Borrowers shall pay the Lender the amount shown as due on any such certificate  within 10 days after receipt thereof.                                            41 

 

                                                                                                                                                                                                                                                       (d)   Failure or delay on the part of the Lender to demand compensation pursuant to this  Section shall not constitute a waiver of the Lender’s right to demand such compensation; provided that the  Borrowers shall not be required to compensate the Lender pursuant to this Section for any increased costs  or  reductions  incurred  more  than  270  days  prior  to  the  date  that the Lender notifies  the Borrower  Representative of the Change in Law giving rise to such increased costs or reductions and of the Lender’s  intention to claim compensation therefor; provided further that, if the Change in Law giving rise to such  increased costs or reductions is retroactive, then the 270-day period referred to above shall be extended to  include the period of retroactive effect thereof.         SECTION 2.14   Break Funding Payments.  In the event of (a) the payment of any principal of  any Eurodollar Loan other than on the last day of an Interest Period applicable thereto (including as a result  of an Event of Default or as a result of any prepayment pursuant to Section 2.09), (b) the conversion of any  Eurodollar Loan other than on the last day of the Interest Period applicable thereto, or (c) the failure to  borrow, convert, continue or prepay any Eurodollar Loan on the date specified in any notice delivered  pursuant hereto (regardless of whether such notice may be revoked under Section 2.07(d) and is revoked in  accordance therewith), then, in any such event, the Borrowers shall compensate the Lender for the loss,  cost and expense attributable to such event.  In the case of a Eurodollar Loan, such loss, cost or expense to  the Lender shall be deemed to include an amount determined by the Lender to be the excess, if any, of (i)  the amount of interest which would have accrued on the principal amount of such Eurodollar Loan had such  event not occurred, at the Adjusted LIBO Rate that would have been applicable to such Eurodollar Loan,  for the period from the date of such event to the last day of the then current Interest Period therefor (or, in  the case of a failure to borrow, convert or continue, for the period that would have been the Interest Period  for such Eurodollar Loan), over (ii) the amount of interest which would accrue on such principal amount  for such period at the interest rate which the Lender would bid were it to bid, at the commencement of such  period, for dollar deposits of a comparable amount and period from other banks in the eurodollar market.   A certificate of the Lender setting forth in reasonable detail any amount or amounts that the Lender is  entitled to receive pursuant to this Section shall be delivered to the Borrower Representative and shall be  conclusive absent manifest error.  The Borrowers shall pay the Lender the amount shown as due on any  such certificate within 10 days after receipt thereof.         SECTION 2.15   Withholding of Taxes; Gross-Up.                 (a)   Payments Free of Taxes.  Any and all payments by or on account of any obligation  of any Loan Party under any Loan Document shall be made without deduction or withholding for any Taxes,  except as required by applicable law.  If any applicable law (as determined in the good faith discretion of  an applicable withholding agent) requires the deduction or withholding of any Tax from any such payment  by a withholding agent, then the applicable withholding agent shall be entitled to make such deduction or  withholding  and  shall  timely  pay  the  full  amount  deducted  or  withheld  to  the  relevant  Governmental  Authority in accordance with applicable law and, if such Tax is an Indemnified Tax, then the sum payable  by the applicable Loan Party shall be increased as necessary so that after such deduction or withholding for  Indemnified Taxes has been made (including such deductions and withholdings for Indemnified Taxes  applicable to additional sums payable under this Section 2.15), the Lender receives an amount equal to the  sum it would have received had no such deduction or withholding been made for Indemnified Taxes.               (b)   Payment of Other Taxes by the Loan Parties.  The Loan Parties shall timely pay to  the relevant Governmental Authority in accordance with applicable law, or at the option of the Lender,  timely reimburse it for the payment of, Other Taxes.               (c)   Evidence of Payment.  As soon as practicable after any payment of Taxes by any  Loan Party to a Governmental Authority pursuant to this Section 2.15, such Loan Party shall deliver to the                                          42 

 

                                                                                                                                                                                                                                           Lender the original or a certified copy of a receipt issued by such Governmental Authority evidencing such  payment,  a  copy  of  the  return  reporting  such  payment, or  other  evidence  of  such  payment  reasonably  satisfactory to the Lender.               (d)   Indemnification  by  the Borrowers.   The Borrowers shall  jointly  and  severally  indemnify the Lender, within 10 days after demand therefor, for the full amount of any Indemnified Taxes  (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section)  payable or paid by the Lender or required to be withheld or deducted from a payment to the Lender and any  reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were  correctly or legally imposed or asserted by the relevant Governmental Authority.  A certificate as to the  amount  of  such  payment  or  liability  delivered  to the  Borrower Representative by the  Lender shall  be  conclusive absent manifest error.               (e)   Status of the Lender.                      (i)   The Lender or other relevant party that is entitled to an exemption from or        reduction  of  withholding  Tax  with respect  to  payments  made  under  any  Loan Document  shall        deliver to the Borrower Representative, at the time or times reasonably requested by the Borrower        Representative, such properly completed and executed documentation reasonably requested by the        Borrower Representative as will permit such payments to be made without withholding or at a        reduced rate of withholding.  In addition, the Lender or other relevant party, if reasonably requested        by the Borrower Representative, shall deliver such other documentation prescribed by applicable        law or  reasonably  requested  by  the Borrower  Representative as  will  enable  the Borrower        Representative to determine whether or not the Lender or other relevant party is subject to backup        withholding or information reporting requirements.  Notwithstanding anything to the contrary in        the preceding two sentences, the completion, execution and submission of such documentation        (other than such documentation set forth in paragraphs (e)(ii)(A), (ii)(B) and (ii)(D) of this Section)        shall  not  be  required  if  in  the  Lender’s  reasonable  judgment  such  completion,  execution  or        submission  would  subject the Lender  to  any  material  unreimbursed  cost  or  expense  or  would        materially prejudice the legal or commercial position of the Lender.                     (ii)  Without  limiting  the  generality  of  the  foregoing,  in  the  event  that  any        Borrower is a U.S. Person:                           (A)   The  Lender  or  other  relevant  party  that  is  a  U.S.  Person  shall              deliver to the Borrower Representative on or prior to the date of this Agreement or the date              on which such other relevant party becomes the Lender under this Agreement (and from              time  to  time  thereafter  upon  the  reasonable  request  of  the  Borrower  Representative),              executed copies of IRS Form W-9 certifying that the Lender or other relevant party is              exempt from U.S. federal backup withholding tax;                           (B)   The Lender or other relevant party that is not a U.S. Person (each,              a “Foreign  Lender”)  shall,  to  the  extent  it  is  legally  entitled  to  do  so,  deliver  to  the              Borrower Representative (in such number of copies as shall be requested by the recipient)              on or about the date on which such Foreign Lender becomes the Lender or other relevant              party under this Agreement (and from time to time thereafter upon the reasonable request              of the Borrower Representative), whichever of the following is applicable:                                 (1)   in the case of a Foreign Lender claiming the benefits of                    an  income  tax  treaty  to  which  the  United  States  is  a  party  (x)  with  respect  to                                         43 

 

                                                                                                                                                                                                             payments of interest under any Loan Document, executed copies of IRS Form W-       8BEN or IRS Form W-8BEN-E establishing an exemption from, or reduction of,        U.S. federal withholding Tax pursuant to the “interest” article of such tax treaty        and (y) with respect to any other applicable payments under any Loan Document,        IRS Form W-8BEN or IRS Form W-8BEN-E establishing an exemption from, or        reduction of, U.S. federal withholding Tax pursuant to the “business profits” or        “other income” article of such tax treaty;                     (2)   executed copies of IRS Form W-8ECI;                     (3)   in the case of a Foreign Lender claiming the benefits of        the exemption for portfolio interest under Section 881(c) of the Code, (x) executed        copies  of  IRS  Form  W-8BEN-E  or  W-8BEN-E,  as  applicable  and  (y) a        certification,  in  form  and  substance  reasonably  satisfactory  to  the  Borrower        Representative, to the effect that such Foreign Lender is not a “bank” within the        meaning of Section 881(c)(3)(A) of the Code, a “10 percent shareholder” of the        Borrower within the meaning of Section 871(h)(3)(B) of the Code, or a “controlled        foreign corporation” related to any Borrower as described in Section 881(c)(3)(C)        of the Code (a “U.S. Tax Compliance Certificate”); or                     (4)   to the extent a Foreign Lender is not the beneficial owner,        executed copies of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS        Form W-8BEN-E or W-8BEN, as applicable, IRS Form W-9, and/or such other        Tax certifications from each beneficial owner as the Borrower Representative may        reasonably  request,  as  applicable; provided that  if  the  Foreign  Lender  is  a        partnership and one or more direct or indirect partners of such Foreign Lender are        claiming the portfolio interest exemption, such Foreign Lender may provide such        U.S. Tax Compliance Certificates as may be reasonably requested by the Borrower        Representative on behalf of each such direct and indirect partner.               (C)   any Foreign Lender shall, to the extent it is legally entitled to do  so, deliver to the Borrower Representative (in such number of copies as shall be requested  by the recipient) on or about the date on which such Foreign Lender becomes a Lender  under this Agreement (and from time to time thereafter upon the reasonable request of the  Borrower Representative), executed copies of any other form prescribed by applicable law  as a basis for claiming exemption from or a reduction in U.S. federal withholding Tax, duly  completed,  together  with  such  supplementary  documentation  as  may  be  prescribed  by  applicable law  to  permit  the Borrower  Representative to  determine  the  withholding  or  deduction required to be made.               (D)   if a payment made to the Lender or other relevant party under any  Loan Document would be subject to U.S. federal withholding Tax imposed by FATCA if  the Lender or such other relevant party were to fail to comply with the applicable reporting  requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the  Code, as applicable), the Lender or such other relevant party shall deliver to the Borrower  Representative at the time or times prescribed by law and at such time or times reasonably  requested by the Borrower Representative, such documentation prescribed by applicable  law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional  documentation reasonably requested by the Borrower Representative as may be necessary  for the Borrowers to comply with their obligations under FATCA and to determine that the                             44 

 

                                                                                                                                                                                                                                                       Lender or such other relevant party has complied with the Lender’s or such other relevant              party’s obligations  under  FATCA  or  to  determine  the  amount,  if  any,  to  deduct  and              withhold  from  such  payment.   Solely  for  purposes  of  this  clause  (D), “FATCA” shall              include any amendments made to FATCA after the date of this Agreement.         The Lender agrees  that if any  form  or  certification it  previously  delivered  expires or  becomes  obsolete  or  inaccurate  in  any  respect,  it  shall  update  such  form  or  certification or  promptly  notify  the  Borrower Representative in writing of its legal inability to do so.               (f)   Treatment of Certain Refunds.  If the  Lender determines, in its  sole  discretion  exercised in good faith, that it has received a refund of any Taxes as to which it has been indemnified  pursuant to this Section 2.15 (including by the payment of additional amounts pursuant to this Section 2.15),  it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity  payments made under this Section 2.15 with respect to the Taxes giving rise to such refund), net of all out- of-pocket expenses (including Taxes) of the Lender and without interest (other than any interest paid by the  relevant Governmental Authority with respect to such refund).  Such indemnifying party, upon the request  of the Lender, shall repay to the Lender the amount paid to the Lender (plus any penalties, interest or other  charges imposed by the relevant Governmental Authority) in the event the Lender is required to repay such  refund to such Governmental Authority.  Notwithstanding anything to the contrary in this paragraph (f), in  no event will the Lender be required to pay any amount to any indemnifying party pursuant to this paragraph  (f), the payment of which would place the Lender in a less favorable net after-Tax position than the Lender  would have  been in if the Tax subject to indemnification and  giving rise to such  refund had  not been  deducted, withheld or otherwise imposed and the indemnification payments or additional amounts giving  rise to such refund had never been paid.  This paragraph (f) shall not be construed to require the Lender to  make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to  the indemnifying party or any other Person.                (g)   Survival.   Each  party’s  obligations  under  this  Section 2.15 shall  survive  the  resignation or replacement of the Lender or any assignment of rights by, or the replacement of, the Lender,  the  termination  of  the Revolving Commitment and  the  repayment,  satisfaction  or  discharge  of  all  obligations under any Loan Document (including the Payment in Full of the Secured Obligations).               (h)   Defined  Terms.   For  purposes  of  this  Section 2.15,  the  term “applicable  law”  includes FATCA.               (i)   Compliance with Swiss Non-Bank Rules.  The Lender confirms that it is a Swiss  Qualifying Bank or, if not, a single person only for the purpose of the Swiss Non-Bank Rules.         SECTION 2.16   Payments Generally; Allocation of Proceeds.                 (a)   The Borrowers shall make each payment or prepayment required to be made by  them hereunder (whether of principal, interest, fees or reimbursement of LC Disbursements, or of amounts  payable under Sections 2.13, 2.14 or 2.15, or otherwise) prior to 2:00 p.m. on the date when due or the date  fixed  for  any  prepayment  hereunder,  in  immediately  available  funds,  without  setoff,  recoupment or  counterclaim.  Any amounts received after such time on any date may, in the discretion of the Lender, be  deemed to have been received on the next succeeding Business Day for purposes of calculating interest  thereon.  All such payments shall be made to the Lender at its offices at Middle Market Servicing, 10 South  Dearborn, Floor L2, Suite IL1-0480, Chicago, IL, 60603-2300.  Unless otherwise provided for herein, if  any payment hereunder shall be due on a day that is not a Business Day, the date for payment shall be                                          45 

 

                                                                                                                                                                                                                                           extended to the next succeeding Business Day, and, in the case of any payment accruing interest, interest  thereon shall be payable for the period of such extension.  All payments hereunder shall be made in dollars.                 (b)   All  payments  and  any proceeds  of  Collateral  received  by  the Lender (i)  not  constituting either (A) a specific payment of principal, interest, fees or other sum payable under the Loan  Documents (which shall be applied as specified by the Borrowers), or (B) a mandatory prepayment (which  shall be applied in accordance with Section 2.09) or (ii) after an Event of Default has occurred and is  continuing and the Lender so elects, such funds shall be applied ratably first, to pay any fees, indemnities,  or expense reimbursements then due to the Lender from the Borrowers, second, to pay interest then due and  payable on the Loans ratably, third, to prepay principal on the Loans and unreimbursed LC Disbursements  and  to pay any  amounts  owing in respect of Swap  Agreement  Obligations and  Banking  Services  Obligations, ratably, fourth, to pay an amount to the Lender equal to 105% of the aggregate LC Exposure,  to be held as cash collateral for such Obligations, fifth, to the payment of any other Secured Obligation due  to  the Lender from the Borrowers or  any  other  Loan  Party. Notwithstanding  anything  to  the  contrary  contained in this Agreement, unless so directed by the Borrower Representative, or unless a Default is in  existence, the Lender shall not apply any payment which it receives to any Eurodollar Loan, except (i) on  the expiration date of the Interest Period applicable thereto, or (ii) in the event, and only to the extent, that  there are no outstanding CBFR Loans and, in any such event, the Borrowers shall pay the break funding  payment required in accordance with Section 2.14. The Lender shall have the continuing and exclusive  right to apply and reverse and reapply any and all such proceeds and payments to any portion of the Secured  Obligations.                 (c)   At  the  election  of  the Lender,  all  payments  of  principal,  interest,  LC  Disbursements, fees, premiums, reimbursable expenses (including, without limitation, all reimbursement  for fees, costs and expenses pursuant to Section 8.03), and other sums payable under the Loan Documents,  may be paid from the proceeds of Borrowings made hereunder, whether made following a request by the  Borrower Representative pursuant to Section 2.03 or a deemed request as provided in this Section or may  be deducted from any deposit account of any Borrower maintained with the Lender.  The Borrowers hereby  irrevocably  authorize the Lender to (i) make  a  Borrowing  for  the  purpose  of paying  each  payment  of  principal, interest and fees as it becomes due hereunder or any other amount due under the Loan Documents  and  agree that all  such  amounts  charged  shall  constitute  Loans, and  that  all  such  Borrowings  shall  be  deemed to have been requested pursuant to Section 2.03 and (ii) charge any deposit account of any Borrower  maintained with the Lender for each payment of principal, interest and fees as it becomes due hereunder or  any other amount due under the Loan Documents.               (d)   The Lender may from time to time provide the Borrowers with account statements  or invoices with respect to any of the Secured Obligations (the “Statements”).  The Lender is under no duty  or obligation to provide Statements, which, if provided, will be solely for the Borrowers’ convenience.   Statements  may  contain estimates  of  the  amounts  owed  during  the  relevant  billing  period,  whether  of  principal, interest, fees or other Secured Obligations.  If the Borrowers pay the full amount indicated on a  Statement on or before the due date indicated on such Statement, the Borrowers shall not be in default of  payment with respect to the billing period indicated on such Statement; provided, that acceptance by the  Lender of any payment that is less than the total amount actually due at that time (including but not limited  to any past due amounts) shall not constitute a waiver of the Lender’s right to receive payment in full at  another time.         SECTION 2.17   Returned Payments.  If after receipt of any payment which is applied to the  payment of all or any part of the Obligations (including a payment effected through exercise of a right of  setoff), the Lender is for any reason compelled to surrender such payment or proceeds to any Person because  such payment or application of proceeds is invalidated, declared fraudulent, set aside, determined to be void                                          46 

 

                                                                                                                                                                                                                                           or voidable as a preference, impermissible setoff, or a diversion of trust funds, or for any other reason  (including pursuant to any settlement entered into by the Lender in its discretion), then the Obligations or  part thereof intended to be satisfied shall be revived and continued and this Agreement shall continue in  full force as if such payment or proceeds had not been received by the Lender.  The provisions of this  Section 2.17 shall be and remain effective notwithstanding any contrary action which may have been taken  by the Lender in reliance upon such payment or application of proceeds.  The provisions of this Section  2.17 shall survive the termination of this Agreement.         SECTION 2.18   Determination of Dollar Amounts.  The Lender shall determine or redetermine  the  Dollar  Equivalent  amount  of  any  Letter  of  Credit  on  each  Revaluation  Date,  including  the  Dollar  Equivalent amount of any Letter of Credit issued in an Alternative Currency, and a determination thereof  by the Lender shall be conclusive absent manifest error.  The Lender may, but shall not be obligated to, rely  on any determination of any Dollar Equivalent amount by any Loan Party.         SECTION 2.19   Judgment Currency.  If, for the purposes of obtaining judgment in any court,  it is necessary to convert a sum due from the Borrowers hereunder in the currency expressed to be payable  herein (the “specified currency”) into another currency, the parties hereto agree, to the fullest extent that  they may effectively do so, that the  rate  of exchange  used shall be  that at which the  Lender could, in  accordance with normal banking procedures applicable to arm’s length transactions, purchase the specified  currency  with  such  other currency  at  the  Lender’s  main  New  York  City  office  on  the  Business  Day  immediately  preceding  that  on  which  final,  non-appealable  judgment  is  given.   The  obligations  of  the  Borrowers in respect of any sum due to the Lender hereunder shall, notwithstanding any judgment in a  currency  other than  the  specified  currency,  be  discharged  only  to the  extent  that  on  the  Business  Day  following receipt by the Lender of any sum adjudged to be so due in such other currency the Lender may  in accordance with normal, reasonable banking procedures purchase the specified currency with such other  currency.  If the amount of the specified currency so purchased is less than the sum originally due to the  Lender in the specified currency, the Borrowers agree, to the fullest extent that it may effectively do so, as  a separate obligation and notwithstanding any such judgment, to indemnify the Lender against such loss,  and if the amount of the specified currency so purchased exceeds the sum originally due to the Lender in  the specified currency, the Lender agrees to remit such excess to the Borrowers.                                    ARTICLE III                             Representations and Warranties         Each Loan Party represents and warrants to the Lender that:          SECTION 3.01   Organization; Powers.  Each Loan Party and each Subsidiary is duly organized  or formed, validly existing and in good standing (or its foreign equivalent, if any) under the laws of the  jurisdiction  of  its  organization,  has  all  requisite  power  and authority  to  carry  on  its  business  as  now  conducted and, except where the failure to do so, individually or in the aggregate, could not reasonably be  expected to result in a Material Adverse Effect, is qualified to do business in, and is in good standing (or  its foreign equivalent, if any) in, every jurisdiction where such qualification is required.           SECTION 3.02   Authorization; Enforceability.  The Transactions are within each Loan Party’s  corporate or other organizational powers and have been duly authorized by all necessary corporate or other  organizational actions on the part of such Loan Party and, if required, actions by such Loan Party’s equity  holders.  Each Loan Document to which each Loan Party is a party has been duly executed and delivered  by such Loan Party and constitutes a legal, valid and binding obligation of such Loan Party, enforceable in  accordance with its terms,  subject to applicable  bankruptcy, insolvency, reorganization, moratorium or                                          47 

 

                                                                                                                                                                                                                                           other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of  whether considered in a proceeding in equity or at law.         SECTION 3.03   Governmental Approvals; No Conflicts.  The Transactions (a) do not require  any consent or approval of, registration or filing with, or any other action by, any Governmental Authority,  except such as have been obtained or made and are in full force and effect and except for filings necessary  to perfect Liens created pursuant to the Loan Documents, (b) will not violate any material Requirement of  Law applicable to any Loan Party or any Subsidiary, (c) will not violate or result in a default under any  material indenture, agreement or other instrument binding upon any Loan Party or any Subsidiary or the  assets of any Loan Party or any Subsidiary, or give rise to a right thereunder to require any payment to be  made by any Loan Party or any Subsidiary, and (d) will not result in the creation or imposition of, or other  requirement to create, any Lien on any asset of any Loan Party or any Subsidiary, except Liens created  pursuant to the Loan Documents.          SECTION 3.04   Financial Condition; No Material Adverse Change.                 (a)   The Company has heretofore furnished to the Lender its consolidated balance sheet  and  statements  of  income,  stockholders  equity  and  cash  flows  (i)  as  of  and  for  the  fiscal  year  ended  December 31, 2018, reported on by Armanino LLP, independent public accountants, and (ii) as of and for  the fiscal quarter and the portion of the fiscal year ended September 30, 2019, certified by a Financial  Officer.  Such financial statements present fairly, in all material respects, the financial position and results  of operations and cash flows of the Company and its consolidated Subsidiaries as of such dates and for such  periods  in  accordance  with  GAAP,  subject  to normal year-end  audit  adjustments  and  the  absence  of  footnotes in the case of the statements referred to in clause (ii) above.               (b)   No event, change or condition has occurred that has had, or could reasonably be  expected to have, a Material Adverse Effect, since December 31, 2018.         SECTION 3.05   Properties.                 (a)   As of the date of this Agreement, Schedule 3.05 to the Disclosure Letter sets forth  the address of each parcel of real property that is owned or leased by any Loan Party.  Each of such leases  and subleases is valid and enforceable in accordance with its terms and is in full force and effect, and no  material default by any party to any such lease or sublease exists.  Each of the Loan Parties and each  Subsidiary has good title to, or valid leasehold interests in, all of its real and personal property, free of all  Liens other than those permitted by Section 6.02.                 (b)   Each  Loan  Party  and  each  Subsidiary  owns,  or  is  licensed  to  use,  all  material  trademarks,  tradenames, copyrights,  patents  and other intellectual property necessary to its  business  as  currently conducted, and the use thereof by each Loan Party and each Subsidiary does not infringe upon  the rights of any other Person except as could not reasonably be expected to have a Material Adverse Effect,  and as of the date of this Agreement, each Loan Party’s and each Subsidiary’s rights thereto are not subject  to any licensing agreement or similar arrangement other than (i) any such agreement or arrangement set  forth on Schedule 3.05 to the Disclosure Letter and (ii) non-exclusive licenses granted in the ordinary course  of  business  and  over-the-counter  software  that  is  commercially  available  to  the  public.   A  list  of  all  registered trademarks, copyrights and patents, or applications for any of the foregoing, owned by any Loan  Party as of the date of this Agreement, is set forth on Schedule 3.05 to the Disclosure Letter.         SECTION 3.06   Litigation and Environmental Matters.                                          48 

 

                                                                                                                                                                                                                                                       (a)   There  are  no  actions,  suits  or  proceedings  by  or  before  any  arbitrator  or  Governmental Authority pending against or, to the knowledge of any Loan Party, threatened in writing  against any  Loan  Party or  any Subsidiary (i) that could  reasonably  be  expected,  individually  or  in  the  aggregate, to result in a Material Adverse Effect (other than the Disclosed Matters set forth on Schedule  3.06 to the Disclosure Letter) or (ii) that involve any Loan Document or the Transactions.                (b)   Except for the Disclosed Matters, (i) no Loan Party or any Subsidiary has received  written notice of any claim with respect to any Environmental Liability or knows of any basis for any  Environmental Liability that could reasonably be expected to have a Material Adverse Effect and (ii) and  except with respect to any other matters that, individually or in the aggregate, could not reasonably be  expected to result in a Material Adverse Effect, no Loan Party or any Subsidiary (A) has failed to comply  with any Environmental Law or to obtain, maintain or comply with any permit, license or other approval  required under any Environmental Law, (B) has become subject to any Environmental Liability, (C) has  received written notice of any claim with respect to any Environmental Liability or (D) knows of any basis  for any Environmental Liability.                (c)   Since the date of this Agreement, there has been no change in the status of the  Disclosed  Matters  that,  individually  or  in  the  aggregate,  has  resulted  in, or  materially  increased  the  likelihood of, a Material Adverse Effect.         SECTION 3.07   Compliance with Laws and Agreements; No Default.  Except where the failure  to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse  Effect, each Loan Party and each Subsidiary is in compliance with (i) each Requirement of Law applicable  to it or its property and (ii) all indentures, agreements and other instruments binding upon it or its property.   No Default has occurred and is continuing.         SECTION 3.08   Investment Company Status.  No  Loan  Party or any Subsidiary is  an  “investment company” as defined in, or subject to regulation under, the Investment Company Act of 1940.         SECTION 3.09   Taxes.  Each Loan Party and each Subsidiary has timely filed or caused to be  filed all Tax returns and reports required to have been filed by it and has paid or caused to be paid all Taxes  required to have been paid by it, except (i) Taxes that are being contested in good faith by appropriate  proceedings and for which such Loan Party or such Subsidiary, as applicable, has set aside on its books  adequate reserves in accordance with GAAP, or (ii) to the extent failure to do so could not reasonably be  expected, individually or in the aggregate, to result in a Material Adverse Effect.         SECTION 3.10   Compliance with Swiss Non-Bank Rules.  The Swiss Borrower is compliant  with the Swiss Non-Bank Rules; it being understood that for the purpose of this representation, the Swiss  Borrower shall assume that the aggregate number of lenders under this Agreement which are not Swiss  Qualifying Banks is 10 (irrespective of whether or not there are, at any time, any such lenders).           SECTION 3.11   ERISA.  No ERISA Event has occurred or is reasonably expected to occur  that, when taken together with all other such ERISA Events for which liability is reasonably expected to  occur,  could  reasonably  be  expected to  result  in  a  Material  Adverse  Effect.   The  present  value  of  all  accumulated benefit obligations under each Plan (based on the assumptions used for purposes of Statement  of Financial Accounting Standards No. 87 or subsequent recodification thereof, as applicable) did not, as  of the date of the most recent financial statements reflecting such amounts, exceed the fair market value of  the assets of such Plan.         SECTION 3.12   Disclosure.                                            49 

 

                                                                                                                                                                                                                                                       (a)   The Loan Parties have disclosed to the Lender all agreements, instruments and  corporate or other restrictions to which any Loan Party or any Subsidiary is subject, and all other matters  known to it, that, individually or in the aggregate, could reasonably be expected to result in a Material  Adverse Effect.  None of the reports, financial statements, certificates or other information furnished by or  on behalf of any Loan Party or any Subsidiary to the Lender in connection with the negotiation of this  Agreement or any other Loan Document (as modified or supplemented by other information so furnished),  taken as a whole, contains any material misstatement of fact or omits to state any material fact necessary to  make the statements therein, in the light of the circumstances under which they were made, not misleading;  provided that, with respect to projected financial information, the Loan Parties represent only that such  information  was  prepared  in  good faith based  upon assumptions  believed  to  be  reasonable  at the  time  delivered and, if such projected financial information was delivered prior to the Effective Date, as of the  Effective  Date  (it  being  understood  that  forecasts  and  projections  are  subject  to  contingencies  and  no  assurance can be given that any forecast or projection will be realized).               (b)   As of the Effective Date, to the best knowledge of each Borrower, the information  included in the Beneficial Ownership Certification provided on or prior to the Effective Date to the Lender  in connection with this Agreement is true and correct in all respects.         SECTION 3.13   Material  Agreements.  No  Loan  Party  is  in  default  in  the  performance,  observance or fulfillment of any of the obligations, covenants or conditions contained in (i) any material  agreement to which it is a party or (ii) any agreement or instrument evidencing or governing Material  Indebtedness.         SECTION 3.14   Solvency.                 (a)   Immediately after the consummation of the Transactions to occur on the Effective  Date, (i) the fair value of the assets of the Loan Parties and their Subsidiaries, taken as a whole, at a fair  valuation, will exceed their debts and liabilities, subordinated, contingent or otherwise; (ii) the present fair  saleable value of the property of the Loan Parties and their Subsidiaries, taken as a whole, will be greater  than  the  amount  that  will  be  required  to  pay  the  probable  liability  of  their  debts  and  other  liabilities,  subordinated, contingent or otherwise, as such debts and other liabilities become absolute and matured; (iii)  the Loan Parties and their Subsidiaries, taken as a whole, will be able to pay their debts and liabilities,  subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured; (iv) the  Loan Parties and their Subsidiaries, taken as a whole, will not have unreasonably small capital with which  to conduct the business in which they are engaged as such business is now conducted and is proposed to be  conducted after the Effective Date; and (v) no Swiss Insolvency Event will have occurred.               (b)   The Loan Parties and their Subsidiaries, taken as a whole, do not intend to, and do  not believe that they will, incur debts beyond their ability to pay such debts as they mature, taking into  account the timing of and amounts of cash to be received by them and the timing of the amounts of cash to  be payable on or in respect of their Indebtedness.         SECTION 3.15   Insurance.  As  of  the  Effective  Date,  all  premiums  in  respect  of the Loan  Parties’ insurance have been paid.  The Loan Parties believe that the insurance maintained by or on behalf  of the Loan Parties and their Subsidiaries is adequate and is customary for companies engaged in the same  or similar businesses operating in the same or similar locations.           SECTION 3.16   Capitalization and Subsidiaries.  Schedule 3.16 to the Disclosure Letter sets  forth as of the Effective Date (a) a correct and complete list of the name and relationship to the Company  of each Subsidiary, (b) a true and complete listing of each class of each of the Company’s Subsidiary’s                                          50 

 

                                                                                                                                                                                                                                           authorized Equity Interests, of which all of such issued Equity Interests are validly issued, outstanding,  fully paid and non-assessable, and owned beneficially and of record by the Persons identified on Schedule  3.16 to the Disclosure Letter, and (c) the type of entity of the Company and each Subsidiary.  All of the  issued and outstanding Equity Interests owned by any Loan Party have been (to the extent such concepts  are relevant with respect to such ownership interests) duly authorized and issued and are fully paid and non- assessable.         SECTION 3.17   Security  Interest  in  Collateral.  The  provisions  of  the  applicable  Loan  Documents create legal and valid Liens on all the Collateral in favor of the Lender, for the benefit of the  Secured  Parties,  and  such  Liens  constitute  perfected  (to  the  extent  perfection  is  required  under  the  applicable Loan Documents) and continuing Liens on the Collateral, securing the Secured Obligations,  enforceable against the applicable Loan Party and all third parties, and having priority over all other Liens  on the Collateral except in the case of (a) Liens permitted by Section 6.02, to the extent any such Liens  would have priority over the Liens in favor of the Lender pursuant to any applicable law or agreement and  (b) Liens perfected only by possession (including possession of any certificate of title) or control, to the  extent the Lender has not obtained or does not maintain possession or control of such Collateral.         SECTION 3.18   Employment Matters.  As of the Effective Date, there are no strikes, lockouts  or slowdowns against any Loan Party or any Subsidiary pending or, to the knowledge of any Loan Party,  threatened in writing that could reasonably be expected, individually or in the aggregate, to have a Material  Adverse Effect.  The hours worked by and payments made to employees of the Loan Parties and their  Subsidiaries have not been in violation in any material respect of the Fair Labor Standards Act or any other  applicable federal, state, local or foreign law dealing with such matters.  All payments due from any Loan  Party or any Subsidiary, or for which any claim may be made against any Loan Party or any Subsidiary, on  account of wages and employee health and welfare insurance and other benefits, have been paid or accrued  as a liability on the books of such Loan Party or such Subsidiary, except where the failure to so pay or  accrue could not reasonably be expected to have a Material Adverse Effect.           SECTION 3.19   Margin  Regulations.  No  Loan  Party  is  engaged  and  will  not  engage,  principally or as one of its important activities, in the business of purchasing or carrying Margin Stock, or  extending credit for the purpose of purchasing or carrying Margin Stock, and no part of the proceeds of  Borrowing or Letter of Credit extension hereunder will be used to purchase or carry any Margin Stock in  violation of Regulations T, U or X.  Following the application of the proceeds of each Borrowing or drawing  under each Letter of Credit, not more than 25% of the value of the assets (either of any Loan Party only or  of the Loan Parties and their Subsidiaries on a consolidated basis) will be Margin Stock.          SECTION 3.20   Use of Proceeds.  The proceeds of the Loans have been used and will be used,  whether directly or indirectly as set forth in Section 5.09.         SECTION 3.21   No Burdensome Restrictions.  No Loan Party is subject to any Burdensome  Restrictions except Burdensome Restrictions permitted under Section 6.10.         SECTION 3.22   Anti-Corruption Laws and Sanctions.  Each Loan Party has implemented and  maintains  in  effect  policies  and  procedures  designed  to  ensure  compliance  by  such  Loan  Party,  its  Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and  applicable Sanctions, and such Loan Party, its Subsidiaries and their respective officers and directors and  to the knowledge of such Loan Party its employees and agents, are in compliance with Anti-Corruption  Laws and applicable Sanctions in all material respects and are not knowingly engaged in any activity that  would reasonably be expected to result in any Loan Party being designated as a Sanctioned Person.  None  of (a) any Loan Party, any Subsidiary, any of their respective directors or officers or, to the knowledge of                                          51 

 

                                                                                                                                                                                                                                           any  such  Loan  Party or  Subsidiary, employees,  or  (b)  to  the  knowledge  of any  such  Loan  Party  or  Subsidiary, any agent of such Loan Party or any Subsidiary that will act in any capacity in connection with  or benefit from the credit facility established hereby, is a Sanctioned Person.  No Borrowing or Letter of  Credit, use of proceeds, Transaction or other transaction contemplated by this Agreement or the other Loan  Documents will violate Anti-Corruption Laws or applicable Sanctions.         SECTION 3.23   Plan Assets; Prohibited Transactions.  None of the Loan Parties or any of their  Subsidiaries is an entity deemed to hold “plan assets” (within the meaning of the Plan Asset Regulations),  and neither the execution, delivery nor performance of the transactions contemplated under this Agreement,  including the making of any Loan and the issuance of any Letter of Credit hereunder, will give rise to a  non-exempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code.                                    ARTICLE IV                                    Conditions         SECTION 4.01   Effective Date.  The obligations of the Lender to make Loans and to issue  Letters  of  Credit  hereunder  shall  not  become  effective  until  the  date  on  which  each  of  the  following  conditions is satisfied (or waived in accordance with Section 8.02):               (a)   Credit Agreement and Loan Documents.  The Lender (or its counsel) shall have  received (i) from each party hereto either (A) a counterpart of this Agreement signed on behalf of such  party  or  (B)  written  evidence  satisfactory  to  the Lender (which  may  include fax or  other  electronic  transmission of a signed signature page of this Agreement) that such party has signed a counterpart of this  Agreement and (ii) duly executed copies of the Loan Documents to be entered into as of the Effective Date  and such other certificates, documents, instruments and agreements as the Lender shall reasonably request  in  connection  with  the  transactions  contemplated  by  this  Agreement  and  the  other  Loan  Documents,  including a written opinion of the Loan Parties’ counsel addressed to the Lender, all in form and substance  satisfactory to the Lender.               (b)   Financial  Statements.  The  Lender shall  have  received  (i)  audited consolidated  financial statements of the Company and its consolidated Subsidiaries for the 2016, 2017 and 2018 fiscal  years, and (ii) unaudited interim consolidated financial statements of the Company and its consolidated  Subsidiaries for each fiscal quarter ended after the date of the latest applicable financial statements delivered  pursuant  to  clause  (i)  of  this  paragraph  as  to  which  such  financial  statements  are  available,  and  such  financial statements shall not, in the reasonable judgment of the Lender, reflect any material adverse change  in the consolidated financial condition of the Company and its consolidated Subsidiaries, as reflected in the  audited, consolidated financial statements described in clause (i) of this paragraph.               (c)   Closing  Certificates;  Certified  Certificate  of  Incorporation;  Good  Standing  Certificates.  The Lender shall have received, for each Loan Party that is or is to be a party to any Loan  Document as  of  the  Effective  Date, (i) a  certificate  of such Loan  Party,  dated  the  Effective  Date  and  executed  by  its secretary  or  assistant  secretary or  director,  as  applicable, or,  in  the case  of  the  Swiss  Borrower, by a managing officer with individual signature authority, which shall (A) certify the resolutions  of its board of directors, managing officers, quotaholders, members or other body authorizing the execution,  delivery and performance of the Loan Documents to which it is a party, (B) identify by name and title and  bear the signatures of the officers or directors of such Loan Party authorized to sign the Loan Documents  to which it is a party and, in the case of a Borrower, its Financial Officers, and (C) contain appropriate  attachments, including the charter, articles or certificate of organization or incorporation of such Loan Party  certified by the relevant authority of the jurisdiction of organization of such Loan Party and a true and  correct copy of its bylaws or operating, management or partnership agreement, or other organizational or                                          52 

 

                                                                                                                                                                                                                                           governing documents, and (ii) a long form good standing certificate for such Loan Party from its jurisdiction  of organization (to the extent available).                (d)   No Default Certificate.  The Lender shall have received a certificate, signed by a  Financial Officer of each Borrower, dated as of the Effective Date (i) stating that no Default has occurred  and is continuing, (ii) stating that the representations and warranties contained in the Loan Documents are  true  and  correct  in  all  material  respects  as  of  such  date (it  being  understood  and  agreed  that  any  representation or warranty which by its terms is made as of a specified date shall be required to be true and  correct in all material respects only as of such specified date, and that any representation or warranty which  is  subject to any  materiality qualifier shall be  required to be  true  and  correct in all respects), and (iii)  certifying as to any other factual matters as may be reasonably requested by the Lender.               (e)   Fees.  The Lender shall have received all fees required to be paid, and all expenses  required to be reimbursed for which invoices have been presented at least two Business Days in advance of  the Effective Date (including the reasonable fees and expenses of legal counsel), on or before the Effective  Date.  All such  amounts will be paid with proceeds of Loans made on the  Effective  Date  and will be  reflected in the funding instructions given by the Borrower Representative to the Lender on or before the  Effective Date.               (f)   Lien Searches.  The Lender shall have received, with respect to each Loan Party  executing  a  Collateral  Document as  of  the  Effective  Date, the  results  of  a  recent lien  search  in  the  jurisdiction of organization of such Loan Party (it being understood that no such searches will have to be  run in Switzerland), and such search shall reveal no Liens on any of the assets of such Loan Party except  for liens permitted by Section 6.02 or discharged on or prior to the Effective Date pursuant to a pay-off  letter or other documentation satisfactory to the Lender.               (g)   [Reserved].               (h)   Funding Account.  The Lender shall have received a notice setting forth the deposit  account of the Borrowers (the “Funding Account”) to which the Lender is authorized by the Borrowers to  transfer the proceeds of any Borrowings requested or authorized pursuant to this Agreement.               (i)   [Reserved].               (j)   Solvency.   The Lender shall  have  received  a  solvency  certificate signed  by a  Financial Officer of the Company dated the Effective Date in form and substance reasonably satisfactory  to the Lender.               (k)   [Reserved].                 (l)   Pledged Equity Interests; Stock Powers; Pledged Notes.  The Lender shall have  received (i) the certificates representing the Equity Interests pledged pursuant to the Security Agreement,  together with an undated stock power for each such certificate executed in blank by a duly authorized officer  of the pledgor thereof and (ii) each promissory note (if any) pledged to the Lender pursuant to the Security  Agreement endorsed (without recourse) in blank (or accompanied by an executed transfer form in blank)  by the pledgor thereof.               (m)   Filings,  Registrations  and  Recordings.   Each  document  (including  any UCC  financing statement) required by the Collateral Documents or under law or reasonably requested by the  Lender to be filed, registered or recorded in order to create in favor of the Lender, for the benefit of the                                          53 

 

                                                                                                                                                                                                                                           Secured Parties, a perfected Lien on the Collateral described therein, prior and superior in right to any other  Person (other than with respect to Liens expressly permitted by Section 6.02), shall be in proper form for  filing, registration or recordation.               (n)   Insurance.   The Lender shall  have  received  evidence  of  insurance  coverage in  form, scope, and substance reasonably satisfactory to the Lender and otherwise in compliance with the  terms of Section 5.10 of this Agreement and the Security Agreement.               (o)   Legal Due Diligence. The Lender and its counsel shall have completed all legal  due diligence, the results of which shall be satisfactory to Lender in its sole discretion.                (p)   USA PATRIOT Act, Etc.  The Lender shall have received, (i) at least 5 days prior  to  the  Effective  Date, all  documentation  and  other  information regarding  the  Borrowers requested  in  connection  with applicable “know  your  customer” and  anti-money  laundering  rules  and  regulations,  including the USA PATRIOT Act, to the extent requested in writing of the Borrowers at least 10 days prior  to the Effective Date, (ii) a properly completed and signed IRS Form W-8 or W-9, as applicable, for each  Loan Party, and (iii) to the extent the Borrowers qualify as a “legal entity customer” under the Beneficial  Ownership Regulation, a Beneficial Ownership Certification in relation to the Borrowers at least 5 days  prior to the Effective Date, to the extent requested in writing of the Borrowers at least 10 days prior to the  Effective Date.               (q)   Other Documents.  The Lender shall have received such other documents as the  Lender or its counsel may have reasonably requested.   The Lender shall  notify  the Borrowers of  the  Effective  Date,  and  such  notice  shall  be  conclusive  and  binding.           SECTION 4.02   Each  Credit  Event.  The  obligation  of the Lender  to  make  a  Loan  on  the  occasion of any Borrowing, and to issue, amend, renew or extend any Letter of Credit, is subject to the  satisfaction of the following conditions:               (a)    The  representations  and  warranties  of  the  Loan  Parties  set  forth  in  the  Loan  Documents shall be true and correct in all material respects with the same effect as though made on and as  of the date of such Borrowing or the date of issuance, amendment, renewal or extension of such Letter of  Credit, as applicable (it being understood and agreed that any representation or warranty which by its terms  is made as of a specified date shall be required to be true and correct in all material respects only as of such  specified date, and that any representation or warranty which is subject to any materiality qualifier shall be  required to be true and correct in all respects).               (b)   At  the  time  of  and  immediately  after  giving  effect  to  such  Borrowing  or  the  issuance, amendment, renewal or extension of such Letter of Credit, as applicable, no Default shall have  occurred and be continuing.               (c)   After  giving  effect  to  any  Borrowing  or  the  issuance, amendment,  renewal  or  extension of any Letter of Credit, Aggregate Availability and the applicable Borrower’s Availability shall  not be less than zero.               (d)   No event shall have occurred and no condition shall exist which has or could be  reasonably expected to have a Material Adverse Effect.                                            54 

 

                                                                                                                                                                                                                                                       (e)   If such Borrowing is the initial Borrowing under this Agreement and a Borrowing  Base  Certificate  has  not  yet  been  delivered  under  Section  5.01(f),  the  Lender  shall  have  received  a  Borrowing Base Certificate which calculates the Aggregate Borrowing Base as the date of such Borrowing.   Each Borrowing and each issuance, amendment, renewal or extension of a Letter of Credit shall be deemed  to constitute a representation and warranty by the Borrowers on the date thereof as to the matters specified  in paragraphs (a), (b) and (d) of this Section.                                      ARTICLE V                                Affirmative Covenants         Until all of the Secured Obligations shall have been Paid in Full, each Loan Party executing this  Agreement covenants and agrees, jointly and severally with all of the other Loan Parties, with the Lender  that:         SECTION 5.01   Financial Statements; Borrowing Base and Other Information.  The Borrowers  will furnish to the Lender:                (a)   within 90 days after  the  end  of  each  fiscal  year  of  the  Company,  its  audited  consolidated balance sheet and related statements of operations, stockholders’ equity and cash flows as of  the end of and for such year, setting forth in each case in comparative form the figures for the previous  fiscal year, all reported on by any “Big Four” accounting firm or any other independent public accountants  reasonably acceptable  to  the  Lender  (without  a “going  concern” or  like  qualification,  commentary  or  exception, and without any qualification or exception as to the scope of such audit) to the effect that such  consolidated financial statements present fairly in all material respects the financial condition and results  of operations of the Company and its consolidated Subsidiaries on a consolidated basis in accordance with  GAAP consistently applied;               (b)   within  45 days  after  the  end  of  each  of  the  first  three  fiscal  quarters  of  the  Company, its consolidated balance sheet and related statements of operations, stockholders’ equity and cash  flows as of the end of and for such fiscal quarter and the then elapsed portion of such fiscal year, setting  forth in each case in comparative form the figures for the corresponding period or periods of (or, in the case  of the balance sheet, as of the end of) the previous fiscal year, all certified by a Financial Officer of the  Borrower Representative as presenting fairly in all material respects the financial condition and results of  operations of the Company and its consolidated Subsidiaries on a consolidated basis in accordance with  GAAP consistently applied, subject to normal year-end audit adjustments and the absence of footnotes;                (c)   concurrently  with  any  delivery  of financial statements  under  clause  (a) or  (b) above, a Compliance Certificate (i) certifying, in the case of the financial statements delivered under  clause (b) above, as presenting fairly in all material respects the financial condition and results of operations  of  the Company and  its  consolidated  Subsidiaries  on  a  consolidated  basis in  accordance  with  GAAP  consistently  applied,  subject  to  normal  year-end  audit  adjustments  and  the  absence  of  footnotes,  (ii)  certifying as to whether a Default has occurred and is continuing and, if a Default has occurred and is  continuing, specifying the details thereof and any action taken or proposed to be taken with respect thereto,  (iii) setting  forth  reasonably  detailed  calculations  demonstrating  compliance  with  Section 6.12 and  (iv) stating whether any change in GAAP or in the application thereof has occurred since the date of the  audited financial statements referred to in Section 3.04 and, if any such change has occurred, specifying the  effect of such change on the financial statements accompanying such certificate;               (d)   [reserved];                                          55 

 

                                                                                                                                                                                                                                                       (e)   as soon as available, but in any event no later than 60 days after the end of each  fiscal year of the Company, a copy of the plan and forecast (including a projected consolidated balance  sheet, income statement and cash flow statement) of the Company for each month of the upcoming fiscal  year (the “Projections”) in form reasonably satisfactory to the Lender;               (f)   as soon as available but in any event within 30 days of the end of each calendar  month to the extent that the Revolving Exposure exceeded $1 at any time during such calendar month, and  at such other times as may be necessary to re-determine Availability hereunder or as may be reasonably  requested by the Lender, as of the period then ended, a Borrowing Base Certificate which calculates the  Aggregate Borrowing Base and the Borrowing Base for each Borrower, and supporting information in  connection therewith, together with any additional reports with respect to the Aggregate Borrowing Base  or the Borrowing Base of any Borrower as the Lender may reasonably request;                (g)   concurrently with any delivery of a Borrowing Base Certificate under clause (f)  above, as of the period then ended, all delivered electronically in a text formatted file acceptable to the  Lender;                     (i)   a detailed aging of the Borrowers’ Accounts, including all invoices aged        by invoice date and due date (with an explanation of the terms offered), prepared in a manner        reasonably acceptable to the Lender, together with a summary specifying the name, address, and        balance due for each Account Debtor; and                     (ii)  a  worksheet  of  calculations  prepared  by  the  Borrowers  to  determine        Eligible Accounts and Eligible Inventory, such worksheets detailing the Accounts and Inventory        excluded from Eligible Accounts and Eligible Inventory and the reason for such exclusion;               (h)   upon request of the Lender, as soon as possible and in any event within 30 days of  filing thereof, copies of all tax returns filed by any Loan Party with the IRS;                (i)   upon request of the Lender, as soon as possible and in any event within 30 days  after the end of each calendar month, to the extent applicable, a detailed listing of all intercompany loans  made by the Borrowers to any Affiliate during such calendar month;               (j)   promptly after the same become publicly available, copies of all periodic and other  reports, proxy statements and other materials filed by any Loan Party or any Subsidiary with the SEC, or  any Governmental Authority succeeding to any or all of the functions of the SEC, or with any national  securities exchange, or distributed by the Company to its shareholders generally, as the case may be;                (k)   promptly after receipt thereof by any Borrower or any Subsidiary, copies of each  notice or other correspondence received from the SEC (or comparable agency in any applicable non-U.S.  jurisdiction) concerning any investigation or possible investigation or other inquiry by the SEC or such  other agency regarding financial or other operational results of any Borrower or any Subsidiary thereof;               (l)   promptly  following  any  request  therefor,  copies  of  any  detailed  audit  reports,  management letters or recommendations submitted to the board of directors (or the audit committee of the  board of directors) of any Borrower by independent accountants in connection with the accounts or books  of any Borrower or any Subsidiary, or any audit of any of them as the Lender may reasonably request;                (m)   promptly following any request therefor, (x) such other information regarding the  operations, material changes in ownership of Equity Interests, business affairs and financial condition of                                          56 

 

                                                                                                                                                                                                                                           any Loan Party or any Subsidiary, or compliance with the terms of this Agreement, as the Lender may  reasonably request and (y) information and documentation reasonably requested by the Lender for purposes  of compliance with applicable “know your customer” and anti-money laundering rules and regulations,  including the USA PATRIOT Act and the Beneficial Ownership Regulation; and               (n)   promptly after any request therefor by the Lender, copies of (i) any documents  described in Section 101(k)(1) of ERISA that the Company or any ERISA Affiliate may request with respect  to any Multiemployer Plan and (ii) any notices described in Section 101(l)(1) of ERISA that the Company  or any ERISA Affiliate may request with respect to any Multiemployer Plan; provided that if the Company  or any ERISA Affiliate has not requested such documents or notices from the administrator or sponsor of  the applicable Multiemployer Plan, the Company or the applicable ERISA Affiliate shall promptly make a  request for such documents and notices from such administrator or sponsor and shall provide copies of such  documents and notices promptly after receipt thereof.     Documents required to be delivered pursuant to Section 5.01(a), (b) or (j) (to the extent any such documents  are included in materials otherwise filed with the SEC) may be delivered electronically and, if so delivered,  shall be deemed to have been delivered on the date (i) on which such materials are publicly available as  posted on the Electronic Data Gathering, Analysis and Retrieval system (EDGAR); or (ii) on which such  documents are posted on the Borrowers’ behalf on an Internet or intranet website, if any, to which the  Lender has access (whether a commercial, third-party website or whether made available by the Lender).   The Lender shall have no obligation to request the delivery of or to maintain paper copies of the documents  referred to above.         SECTION 5.02   Notices of Material Events.  The Borrowers will furnish to the Lender prompt  (but in any event within any time period that may be specified below) written notice of the following:               (a)   any Responsible Officer of a Loan Party obtains knowledge of the occurrence of  any Default;               (b)   any  Responsible  Officer  of  a  Loan  Party  obtains  knowledge  of  receipt  of  any  written notice of any investigation by a Governmental Authority or any litigation or proceeding commenced  or threatened against any Loan Party or any Subsidiary that (i) seeks damages in excess of $1,000,000, (ii)  seeks injunctive relief that could reasonably be expected to have a Material Adverse Effect, (iii) is asserted  or instituted against any Plan, its fiduciaries or its assets and involves in excess of $1,000,000, (iv) alleges  criminal misconduct by any Loan Party or any Subsidiary, (v) alleges the violation of, or seeks to impose  remedies under, any Environmental Law or related Requirement of Law, or seeks to impose Environmental  Liability, in each case, that could reasonably be expected to have a Material Adverse Effect, (vi) asserts  liability on the part of any Loan Party or any Subsidiary in excess of $1,000,000 in respect of any tax, fee,  assessment, or other governmental charge, or (vii) involves any product recall that could reasonably be  expected to have a Material Adverse Effect;               (c)   any material change in accounting or financial reporting practices by any Borrower  or any Subsidiary;               (d)   the occurrence of any ERISA Event that, alone or together with any other ERISA  Events that have occurred, could reasonably be expected to result in liability of the Loan Parties and their  Subsidiaries in an aggregate amount exceeding $1,000,000;                (e)   [reserved];                                           57 

 

                                                                                                                                                                                                                                                       (f)   any other development that results in, or could reasonably be expected to result in,  a Material Adverse Effect; and               (g)   any change in the information provided in the Beneficial Ownership Certification  delivered to the Lender that would result in a change to the list of beneficial owners identified in such  certification.   Each notice delivered under this Section shall be accompanied by a statement of a Financial Officer or other  executive  officer  of  the Borrower Representative setting  forth  the  details  of  the  event  or  development  requiring such notice and any action taken or proposed to be taken with respect thereto.         SECTION 5.03   Existence; Conduct of Business.  Each Loan Party will, and will cause each  Subsidiary to, do or cause to be done all things necessary to preserve, renew and keep in full force and  effect (a) its legal existence and (b) the rights, qualifications, licenses, permits, franchises, governmental  authorizations, intellectual property rights, licenses and permits material to the conduct of its business, and  maintain  all  requisite  authority  to  conduct  its  business  in  each  jurisdiction  in  which  its  business  is  conducted, in each case, with respect to this clause (b), where the failure to do so could not reasonably be  expected to have a Material Adverse Effect; provided that the foregoing shall not prohibit any merger,  consolidation, liquidation or dissolution permitted under Section 6.03.         SECTION 5.04   Payment of Obligations.  Each Loan Party will, and will cause each Subsidiary  to, pay or discharge all Material Indebtedness and all other material liabilities and obligations, including  material Taxes, before the same shall become delinquent or in default, except where (a) the validity or  amount  thereof  is  being  contested  in  good  faith  by  appropriate  proceedings,  (b)  such  Loan  Party or  Subsidiary has set aside on its books adequate reserves with respect thereto in accordance with GAAP and  (c) the failure to make payment pending such contest could not reasonably be expected to result in a Material  Adverse Effect; provided, however, that each Loan Party will, and will cause each Subsidiary to, remit  material withholding taxes and other material payroll taxes to appropriate Governmental Authorities as and  when  claimed by  such  Governmental  Authorities  in  writing to  be  due,  notwithstanding  the  foregoing  exceptions.         SECTION 5.05   Maintenance  of  Properties.   Each  Loan  Party  will,  and  will  cause  each  Subsidiary to, keep and maintain all property material to the conduct of its business in good working order  and condition, ordinary wear and tear excepted, except where the failure to do so could not reasonably be  expected to have a Material Adverse Effect.         SECTION 5.06   Books and Records; Inspection Rights.  Each Loan Party will, and will cause  each Subsidiary to, (a) keep proper books of record and account in which full, true and correct entries are  made sufficient to prepare financial statements in accordance with GAAP and (b) permit any representatives  designated by the Lender (including employees of the Lender or any consultants, accountants, lawyers,  agents and  appraisers  retained  by  the Lender),  upon  reasonable  prior  notice,  to  visit  and  inspect  its  properties, conduct at the Loan Party’s premises field examinations or appraisals of the Loan Party’s assets,  liabilities,  books  and  records, including  examining and  making extracts  from  its  books  and  records,  environmental assessment reports and Phase I or Phase II studies, and to discuss its affairs, finances and  condition  with  its  officers  and  independent  accountants,  all  at  such  reasonable  times  and  as  often  as  reasonably requested; provided, that if no Event of Default has occurred and is continuing, the Loan Parties  shall only have to reimburse the Lender for one such field examination in any 12-month period.  The Loan  Parties acknowledge that the Lender, after exercising its rights of inspection, may prepare certain Reports  pertaining to the Loan Parties’ assets for internal use by the Lender.  Notwithstanding the foregoing, neither  Borrowers  nor  their  Subsidiaries  shall  be  required  to  disclose  or  discuss,  or  permit  the  inspection,                                          58 

 

                                                                                                                                                                                                                                           examination or making of extracts of, any documents, book, record or other matter (i) in respect of which  disclosure to the Lender or its representatives is then prohibited by applicable law or (ii) is protected by the  attorney-client privilege or the attorney work product privilege in favor of Borrowers or their Subsidiaries.         SECTION 5.07   Compliance  with  Laws and  Material  Contractual  Obligations.  Each  Loan  Party will, and will cause each Subsidiary to, (i) comply with each Requirement of Law applicable to it or  its property (including, without limitation, Environmental Laws), except, in each case, where the failure to  do so, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect,  and (ii) perform in all material respects its obligations under material agreements to which it is a party.   Each Loan Party will maintain in effect and enforce policies and procedures designed to ensure compliance  by such Loan Party, its Subsidiaries and their respective directors, officers, employees and agents with  Anti-Corruption Laws and applicable Sanctions.         SECTION 5.08   Compliance  with  Swiss  Non-Bank  Rules.  The Swiss  Borrower  shall  be  compliant with the Swiss Non-Bank Rules; it being understood that the Swiss Borrower shall assume that  the  aggregate  number  of lenders under  this  Agreement which  are  not  Swiss  Qualifying  Banks  is  10  (irrespective of whether or not there are, at any time, any such lenders).           SECTION 5.09   Use of Proceeds.                 (a)   The proceeds of the Loans and the Letters of Credit will be used only for working  capital and general corporate purposes.  No part of the proceeds of any Loan and no Letter of Credit will  be used, whether directly or indirectly, for any purpose that entails a violation of any of the regulations of  the Federal Reserve Board, including Regulations T, U and X.                  (b)   The  Borrowers will  not  request  any  Borrowing  or  Letter  of  Credit,  and no  Borrower shall use, and each Borrower shall procure that its Subsidiaries and its or their respective directors,  officers, employees  and agents shall not use, the proceeds of any Borrowing or Letter of Credit (a) in  furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or  anything else of value, to any Person in violation of any Anti-Corruption Laws, (b) for the purpose of  funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person,  or in any Sanctioned Country, except to the extent permitted for a Person required to comply with Sanctions,  or (c) in any manner that would result in the violation of any Sanctions applicable to any party hereto.          SECTION 5.10   Accuracy of Information.  The Loan Parties will ensure that any information,  including  financial  statements  or  other  documents,  furnished  to  the  Lender  in  connection  with  this  Agreement or any other Loan Document or any amendment or modification hereof or thereof or waiver  hereunder or thereunder (other than forecasts and projections, forward-looking information and information  of a general economic or industry-specific nature), taken together as a whole with the Company’s filings  with the SEC, contains no material misstatement of fact or omits to state any material fact necessary to  make the statements therein, in the light of the circumstances under which they were made, not misleading,  and the furnishing of such information shall be deemed to be a representation and warranty by the Loan  Parties on the date thereof as to the matters specified in this Section 5.10; provided that, with respect to the  Projections, the Borrowers will cause the Projections to be prepared in good faith based upon assumptions  believed  to be  reasonable at the  time  (it being understood that forecasts  and projections  are  subject to  contingencies and no assurance can be given that any forecast or projection will be realized).         SECTION 5.11   Insurance.  Each Loan Party will, and will cause each Subsidiary to, maintain  with financially sound and reputable carriers having a financial strength rating of at least A- by A.M. Best  Company (a) insurance in such amounts (with no greater risk retention) and against such risks (including                                          59 

 

                                                                                                                                                                                                                                           loss or  damage  by  fire  and  loss  in  transit; theft, burglary,  pilferage,  larceny,  embezzlement,  and  other  criminal activities; business interruption; and general liability) and such other hazards, as is customarily  maintained by companies of established repute engaged in the same or similar businesses operating in the  same or similar locations and (b) all insurance required pursuant to the Collateral Documents.  Upon request  of the Lender, the Borrowers will furnish to the Lender information in reasonable detail as to the insurance  so maintained.         SECTION 5.12   Casualty and Condemnation.  The Borrowers will furnish to the Lender prompt  written notice of any casualty or other insured damage to any material portion of the Collateral or the  commencement of any action or proceeding for the taking of any material portion of the  Collateral or  interest therein under power of eminent domain or by condemnation or similar proceeding.         SECTION 5.13   Depository Banks.  Within 90 days after the Effective Date and thereafter, each  Loan Party will maintain the Lender as its principal depository bank, including for the maintenance of  operating, administrative, cash management, collection activity, and other deposit accounts for the conduct  of its business.         SECTION 5.14   Additional Collateral; Further Assurances.                (a)   Subject to any applicable Requirement of Law and the limitations set forth in this  Section 5.14, the Company will cause each of its Material Subsidiaries formed or acquired after the date of  this Agreement or any limited liability companies formed pursuant to any division, or any Subsidiary that  becomes  a  Material  Subsidiary,  in  each  case  that  is  a  Domestic  Subsidiary  other  than  an  Excluded  Subsidiary, to become a Loan Party by executing a Joinder Agreement within 30 days after the date of such  formation  or  acquisition  (as  such  date  may  be  extended  from  time  to  time  by  the  Lender  in  its  sole  discretion).  In  connection  therewith,  the  Lender  shall  have  received  all  documentation  and  other  information regarding such newly formed or acquired Subsidiaries or such new Material Subsidiary as may  be required to comply with the applicable “know your customer” rules and regulations, including the USA  Patriot Act. Upon execution and delivery thereof, each such Person (i) shall automatically become a Loan  Guarantor hereunder and thereupon shall have all of the rights, benefits, duties, and obligations in such  capacity under the Loan Documents and (ii) will grant Liens to the Lender, for the benefit of the Secured  Parties,  in  any  property  of such  Loan  Party  which  constitutes  Collateral,  including  any  parcel  of  real  property located in the U.S. owned by any Loan Party.               (b)   The Company will cause (i) 100% of the issued and outstanding Equity Interests  of  each  of  its Domestic Subsidiaries  that is  not an  Excluded  Subsidiary  and  (ii)  65%  (or  such  greater  percentage that, due to a change in applicable law after the date hereof, Borrower Representative and Lender  agree (A) could not reasonably be expected to cause the undistributed earnings of such Foreign Subsidiary  as determined for U.S. federal income tax purposes to be treated as a deemed dividend to such Foreign  Subsidiary’s U.S. parent and (B) could not reasonably be expected to cause any adverse Tax consequences)  of the issued and outstanding Equity Interests entitled to vote (within the meaning of Treas. Reg. Section  1.956-2(c)(2)) and 100% of the issued and outstanding Equity Interests not entitled to vote (within the  meaning of Treas. Reg. Section 1.956-2(c)(2)) in each Foreign Subsidiary or Excluded Subsidiary directly  owned by the Company or any other Loan Party (other than the Swiss Borrower) to be subject at all times  to a first priority, perfected Lien in favor of the Lender, for the benefit of the Secured Parties, pursuant to  the terms and conditions of the Loan Documents or other security documents as the Lender shall reasonably  request.               (c)   Without limiting the foregoing, and subject to the terms and conditions of the Loan  Documents, each Loan Party will, and will cause each Material Subsidiary to, execute and deliver, or cause                                          60 

 

                                                                                                                                                                                                                                           to be executed and delivered, to the Lender such documents, agreements and instruments, and will take or  cause to be taken such further actions (including the filing and recording of financing statements, fixture  filings, mortgages, deeds of trust and other documents and such other actions or deliveries of the type  required by Section 4.01, as applicable), which the Lender may, from time to time, reasonably request to  carry out the terms and conditions of this Agreement and the other Loan Documents and to ensure perfection  and priority of the Liens created or intended to be created by the Collateral Documents, all in form and  substance reasonably satisfactory to the Lender and all at the expense of the Loan Parties.                 (d)   If any material assets (including any real property or improvements thereto or any  interest therein) constituting Collateral are acquired by any Loan Party after the Effective Date (other than  assets constituting Collateral under the Security Agreement or the Swiss Collateral Documents that become  subject  to  the  Lien under the  Security  Agreement or  the  Swiss Collateral  documents upon  acquisition  thereof), the Borrower Representative will (i) notify the Lender to the extent required by the Collateral  Documents and, if requested by the Lender, cause such assets to be subjected to a Lien securing the Secured  Obligations and (ii) take, and cause each applicable Loan Party to take, such actions as reasonably requested  by the Lender to grant and perfect such Liens, including actions described in paragraph (c) of this Section,  all at the expense of the Loan Parties.          SECTION 5.15   Post-Closing Obligations.  Within 30 days after the Effective Date (or such  longer period as the Lender shall agree in writing), the Borrower shall deliver, or cause to be delivered:                (a)   each Collateral Access Agreement required to be provided pursuant to the Security  Agreement; and               (b)   Swiss Collateral Documents, in form and substance reasonably satisfactory to the  Lender, granting to the Lender a Lien on the Swiss Borrower’s bank accounts.                                    ARTICLE VI                                 Negative Covenants         Until all of the Secured Obligations shall have been Paid in Full, each Loan Party executing this  Agreement covenants and agrees, jointly and severally with all of the other Loan Parties, with the Lender  that:          SECTION 6.01   Indebtedness.  No Loan Party will, nor will it permit any Subsidiary to, create,  incur, assume or suffer to exist any Indebtedness, except:               (a)   the Secured Obligations;               (b)   Indebtedness  existing  on  the  date  hereof  and  set  forth  in Schedule 6.01 to  the  Disclosure Letter and any extensions, renewals, refinancings and replacements of any such Indebtedness in  accordance with clause (f) hereof;               (c)   Indebtedness  of  any  Loan  Party  to  another  Loan  Party  or  any  Subsidiary  and  Indebtedness of any Subsidiary to any Loan Party or any other Subsidiary, provided that (i) Indebtedness  of  any  Subsidiary  that is  not  a  Loan  Party  to any  Loan  Party  shall  be  subject  to  Section 6.04  and  (ii)  Indebtedness of any Loan Party to any Subsidiary that is not a Loan Party shall be subordinated to the  Secured Obligations on terms reasonably satisfactory to the Lender;                                          61 

 

                                                                                                                                                                                                                                                       (d)   Guarantees by any Loan Party of Indebtedness of any Subsidiary or another Loan  Party  and  Guarantees  by  any  Subsidiary  of  Indebtedness  of  any  Loan  Party  or  any  other  Subsidiary,  provided that (i) the Indebtedness so Guaranteed is permitted by this Section 6.01, (ii) Guarantees by any  Loan Party of Indebtedness of any Subsidiary that is not a Loan Party shall be subject to Section 6.04 and  (iii) Guarantees permitted under this clause (d) shall be subordinated to the Secured Obligations on the  same  terms  as  the  Indebtedness  so  Guaranteed  is  subordinated  to  the  Secured  Obligations  (if  such  Indebtedness is so subordinated to the Secured Obligations);               (e)   Indebtedness  of  any  Borrower  or  any  Subsidiary  incurred  to  finance  the  acquisition,  construction  or  improvement  of any  fixed  or  capital  assets  and  any  related  installation,  maintenance or software licensing charges (whether or not constituting purchase money Indebtedness),  including Capital Lease Obligations and any Indebtedness assumed in connection with the acquisition of  any such assets or secured by a Lien on any such assets prior to the acquisition thereof, and extensions,  renewals and replacements of any such Indebtedness in accordance with clause (f) below; provided that (i)  such Indebtedness is incurred prior to or within 180days after such acquisition or the completion of such  construction or improvement and (ii) the aggregate principal amount of Indebtedness permitted by this  clause (e) together with any Refinance Indebtedness in respect thereof permitted by clause (f) below, shall  not exceed $5,000,000 at any time outstanding;               (f)   Indebtedness which represents extensions, renewals, refinancing or replacements  (such Indebtedness  being so  extended,  renewed, refinanced  or replaced  being referred  to herein as the  “Refinance Indebtedness”) of any of the Indebtedness described in clauses (b), (e), (i), (n), (p) and (r) hereof  (such Indebtedness being referred to herein as the “Original Indebtedness”); provided that (i) the principal  amount of such Refinance Indebtedness does not exceed the principal amount of the Original Indebtedness,  plus any accrued and unpaid interest thereon, any prepayment premium in connection with such refinancing  or  replacement  and  customary  fees  and  expenses  incurred  by  any  Loan  Party  or  any  Subsidiary  in  connection  with  such  extension,  renewal,  refinancing  or  replacement,  (ii)  any  Liens  securing  such  Refinance Indebtedness are not extended to any additional property of any Loan Party or any Subsidiary,  (iii) no Loan Party or any Subsidiary that is not originally obligated with respect to repayment of such  Original Indebtedness is required to become obligated with respect to such Refinance Indebtedness, (iv)  such Refinance Indebtedness does not result in a  shortening of the  average  weighted  maturity of such  Original Indebtedness, (v) the terms of such Refinance Indebtedness are not materially less favorable, taken  as a whole, to the obligor thereunder than the original terms of such Original Indebtedness (as determined  by Borrower in good faith) and (vi) if such Original Indebtedness was subordinated in right of payment to  the  Secured  Obligations,  then  the  terms  and  conditions  of  such  Refinance Indebtedness  must  include  subordination terms and conditions that are, taken as a whole, at least as favorable to the Lender as those  that were applicable to such Original Indebtedness (as determined by the Borrower in good faith);                (g)   Indebtedness  owed  to  any Person  providing  workers’ compensation,  health,  disability or other employee benefits or property, casualty or liability insurance, pursuant to reimbursement  or indemnification obligations to such Person, in each case incurred in the ordinary course of business;               (h)   Indebtedness of any Loan Party in respect of performance bonds, bid bonds, appeal  bonds, surety bonds and similar obligations, in each case provided in the ordinary course of business;               (i)   Subordinated  Indebtedness in  an  aggregate  principal  amount  not  exceeding  $10,000,000 at any time outstanding;               (j)   Indebtedness evidenced by the Convertible Notes;                                           62 

 

                                                                                                                                                                                                                                                       (k)   Indebtedness  arising  from  customary  cash  management  and  treasury  services,  credit cards, and the honoring of a check, draft or similar instrument against insufficient funds or from the  endorsement of instruments for collection, in each case, in the ordinary course of business and not exceeding  $500,000 in the aggregate at any time;               (l)   Indebtedness under Swap Agreements permitted under Section 6.07;               (m)   Indebtedness representing deferred compensation owing to employees, directors  and officers of the Company or any of its Subsidiaries in the ordinary course of business and, to the extent  payable in cash, not exceeding $500,000 in the aggregate at any time;               (n)   Indebtedness  of  any  Person  that  becomes  a  Subsidiary  after  the date  hereof;  provided that such Indebtedness exists at the time such Person becomes a Subsidiary and is not created in  contemplation of or in connection with such Person becoming a Subsidiary;               (o)   Indebtedness consisting of the financing of insurance premiums in the ordinary  course of business;               (p)   Indebtedness of Harmonic France or its Subsidiaries solely for (i) the financing of  R&D Accounts Receivable and secured only by Liens on such R&D Accounts Receivable, (ii) consisting  of loans from French governmental agencies that were existing on September 27, 2017 for research and  development projects and (iii) term loans that were existing on September 27, 2017 used to finance the  renovation office space in Rennes, France;               (q)   earn-out obligations and contingent liabilities in respect of any indemnification  obligations, adjustment or purchase price (including working capital adjustments), non-compete or similar  obligations  incurred in  connection  with  Permitted  Acquisitions in  an  aggregate  amount  not  to  exceed  $2,000,000;                (r)   Indebtedness or other obligations of Foreign Subsidiaries (other than the Swiss  Borrower) in an aggregate principal amount at any time outstanding not to exceed $1,000,000; and               (s)   other  unsecured  Indebtedness  in  an  aggregate  principal  amount  not  exceeding  $2,000,000 at any time outstanding.         SECTION 6.02   Liens.  No Loan Party will, nor will it permit any Subsidiary to, create, incur,  assume or permit to exist any Lien on any property or asset now owned or hereafter acquired by it, or assign  or sell any income or revenues (including Accounts) or rights in respect of any thereof, except:               (a)   Liens created pursuant to any Loan Document;                (b)   Permitted Encumbrances;               (c)   any Lien on any property or asset of any Borrower or any Subsidiary existing on  the date hereof and set forth in Schedule 6.02 to the Disclosure Letter; provided that (i) such Lien shall not  apply to any other property or asset of such Borrower or Subsidiary or any other Borrower or Subsidiary  and (ii) such Lien shall secure only those obligations which it secures on the date hereof and Refinance  Indebtedness permitted by Section 6.01(f);                                          63 

 

                                                                                                                                                                                                                                                       (d)   Liens on fixed or capital assets acquired, constructed or improved by any Borrower  or any Subsidiary, together with any additions, accessions, parts, improvements and attachments thereto  and  related  software; provided that  (i) such  Liens  secure  Indebtedness  permitted  by  clause (e)  of  Section 6.01, (ii) such Liens and the Indebtedness secured thereby are incurred prior to or within 180 days  after such acquisition or the completion of such construction or improvement, (iii) the Indebtedness secured  thereby does not exceed 100% of the cost of acquiring, constructing or improving such fixed or capital  assets, plus any related installation, maintenance or software licensing charges, and (iv) such Liens shall  not apply to any other property or assets of any Borrower or any Subsidiary;               (e)   any Lien existing on any property or asset (other than Accounts and Inventory)  prior to the acquisition thereof by any Borrower or any Subsidiary or existing on any property or asset  (other than Accounts and Inventory) of any Person that becomes a Loan Party after the date hereof prior to  the time such Person becomes a Loan Party; provided that (i) such Lien is not created in contemplation of  or in connection with such acquisition or such Person becoming a Loan Party, as the case may be, (ii) such  Lien shall not apply to any other property or assets of the Loan Party and (iii) such Lien shall secure only  those obligations which it secures on the date of such acquisition or the date such Person becomes a Loan  Party, as the case may be, and Refinance Indebtedness permitted by Section 6.01(f);                (f)   Liens  of  a  collecting  bank  arising  in  the  ordinary course  of  business  under  Section 4-210 of the UCC in effect in the relevant jurisdiction covering only the items being collected upon;               (g)   Liens arising out of Sale and Leaseback Transactions permitted by Section 6.06;               (h)   Liens granted by a Subsidiary that is not a Loan Party in favor of any Loan Party  in respect of Indebtedness owed by such Subsidiary;               (i)   Leases or subleases granted to other Persons in the ordinary course of business and  not interfering in any material respect with the business of the lessor or sublessor;               (j)   non-exclusive licenses of intellectual property in the ordinary course of business;               (k)   any interest or title of a lessor, sublessor, licensor or sublicensor under any lease  or license in the ordinary course of business;               (l)   Liens on insurance proceeds securing the premium of financed insurance proceeds;               (m)   Liens arising as a matter of law or created in the ordinary course of business in the  nature of (i) normal and customary rights of setoff and banker’s liens upon deposits of cash in favor of  banks or other depository institutions and (ii) Liens securing reasonable and customary fees for services in  favor of banks, securities intermediaries or other depository institutions, including, for the avoidance of  doubt, any Liens created under customary general terms and conditions of banks;                (n)   Liens solely on R&D Accounts Receivable securing Indebtedness permitted by  Section 6.01(p)(i); and               (o)   Liens solely on assets of Foreign Subsidiaries (other than the Swiss Borrower)  securing Indebtedness permitted under Section 6.01(r).   Notwithstanding the foregoing, none of the Liens permitted pursuant to this Section 6.02 may at any time  attach to any Loan Party’s (i) Accounts, other than those permitted under clause (a) of the definition of                                          64 

 

                                                                                                                                                                                                                                           Permitted Encumbrances and clause (a) above and (ii) Inventory, other than those permitted under clauses  (a) and (b) of the definition of Permitted Encumbrances and clause (a) above.          SECTION 6.03   Fundamental Changes.                 (a)   No Loan Party will, nor will it permit any Subsidiary to, merge into or consolidate  with any other Person, or permit any other Person to merge into or consolidate with it (except in connection  with a Permitted Acquisition), or otherwise Dispose of all or substantially all of its assets (other than as  permitted by Section 6.04), or all or substantially all of the stock of any of its Subsidiaries (other than as  permitted by Section 6.04) (in each case, whether now owned or hereafter acquired), or liquidate, divide or  dissolve, except that, if at the time thereof and immediately after giving effect thereto no Event of Default  shall have occurred and be continuing, (i) any Subsidiary that is not a Loan Party may merge into another  Subsidiary that is not a Loan Party or into a Loan Party (provided that if a Loan Party is a party to such  transaction, the surviving entity must be a Loan Party), (ii) any Loan Party may merge into any other Loan  Party in a transaction in which the surviving entity is a Loan Party (provided that if a Borrower is a party  to such transaction, the surviving entity must be a Borrower) and (iii) any Subsidiary that is not a Loan  Party may liquidate, divide or dissolve  if the Borrowers determine in good faith that such  liquidation,  division or dissolution is in the best interests of the Borrowers and is not materially disadvantageous to the  Lender; provided that  any  such  merger  involving  a  Person  that  is  not  a  wholly  owned  Subsidiary  immediately prior to such merger shall not be permitted unless also permitted by Section 6.04.                (b)   No Loan Party will, nor will it permit any Subsidiary to, consummate a Division  as the Dividing Person, without the prior written consent of the Lender; provided, that notwithstanding the  foregoing, any Subsidiary that is not a Loan Party may consummate a Division if the Borrowers determine  in  good  faith  that  such  Division  is  in  the  best  interests  of  the  Borrowers  and  is  not  materially  disadvantageous to the Lender.  Without limiting the foregoing, if any Loan Party that is a limited liability  company consummates a Division (with or without the prior consent of Lender as required above), each  Division Successor shall be required to comply with the obligations set forth in Section 5.14 and the other  further  assurances  obligations  set  forth  in  the  Loan  Documents  and  become  a  Loan  Party  under  this  Agreement and the other Loan Documents.               (c)   No Loan Party will, nor will it permit any Subsidiary to, engage in any business  other than businesses of the type conducted by the Borrowers and their Subsidiaries on the date hereof and  businesses reasonably related, complementary or ancillary thereto or constituting a reasonable extension  thereof.                (d)   No Loan Party will, nor will it permit any Subsidiary to, change its fiscal year or  any fiscal quarter from the basis in effect on the Effective Date.               (e)   Except changes made in accordance with GAAP, no Loan Party will change the  accounting basis upon which its financial statements are prepared.         SECTION 6.04   Investments, Loans, Advances, Guarantees and Acquisitions.  No Loan Party  will, nor will it permit any Subsidiary to, form any subsidiary after the Effective Date, or purchase, hold or  acquire (including pursuant to any merger with any Person that was not a Loan Party and a wholly owned  Subsidiary  prior  to  such  merger)  any Equity  Interests, evidences  of  indebtedness  or  other  securities  (including any option, warrant or other right to acquire any of the foregoing) of, make or permit to exist  any loans or advances to, Guarantee any Indebtedness of, any other Person, or consummate any Acquisition,  except:                                          65 

 

                                                                                                                                                                                                                                                       (a)   Permitted Investments,  subject to control agreements in favor of the Lender or  otherwise subject to a perfected security interest in favor of the Lender, in each case to the extent required  by the Loan Documents;               (b)   investments in existence on the date hereof and described in Schedule 6.04 to the  Disclosure Letter;               (c)   investments  by the Borrowers and  the  Subsidiaries  in  Equity  Interests  in  their  respective Subsidiaries, provided that (i) any such Equity Interests directly held by a Loan Party shall be  pledged pursuant to the Collateral Documents in accordance with (and to the extent required by) Section  5.14 and (ii) the aggregate amount of investments by Loan Parties in Subsidiaries that are not Loan Parties  (together with outstanding intercompany loans permitted under Section 6.04(d) and outstanding Guarantees  permitted  under  Section 6.04(e))  shall  not  exceed  $2,000,000 at  any  time  outstanding  (in  each  case  determined without regard to any write-downs or write-offs);               (d)   loans or advances made by any Loan Party to any Subsidiary and made by any  Subsidiary to a Loan Party or any other Subsidiary, provided that (i) any such loans and advances made by  a Loan Party shall be evidenced by a promissory note pledged pursuant to the Security Agreement or the  Swiss  Collateral  Documents and  (ii) the  amount  of  such  loans  and  advances  made  by  Loan Parties  to  Subsidiaries  that  are  not  Loan  Parties  (together  with  outstanding  investments  permitted  under  Section  6.04(c) and outstanding Guarantees permitted under Section 6.04(e)) shall not exceed $2,000,000 at any  time outstanding (in each case determined without regard to any write-downs or write-offs);               (e)   Guarantees constituting Indebtedness permitted by Section 6.01, provided that the  aggregate principal amount of Indebtedness of Subsidiaries that are not Loan Parties that is Guaranteed by  any Loan Party (together with outstanding investments permitted under clause (ii) to the proviso to Section  6.04(c) and outstanding intercompany loans permitted under clause (ii) to the proviso to Section 6.04(d))  shall not exceed $2,000,000 at any time outstanding (in each case determined without regard to any write- downs or write-offs);               (f)   (i) loans or advances made by a Loan Party or any Subsidiary to its employees,  consultants, officers or directors on an arms-length basis in the ordinary course of business for travel and  entertainment  expenses,  relocation  costs  and  similar  purposes  in  an  aggregate  amount  not  to  exceed  $500,000 at any time outstanding and (ii) loans to employees, consultants, officers or directors relating to  the purchase of equity securities of the Company or its Subsidiaries pursuant to employee stock purchase  plans or agreements in an aggregate amount not to exceed $500,000 at any time outstanding;                (g)   notes payable, or stock or other securities issued by Account Debtors to a Loan  Party  in  connection  with  the  bankruptcy  or  reorganization  of  such  Account  Debtors  or  pursuant  to  negotiated agreements with respect to settlement of such Account Debtor’s Accounts in the ordinary course  of business;               (h)   investments in the form of Swap Agreements permitted by Section 6.07;               (i)   investments of any Person existing at the time such Person becomes a Subsidiary  of the Company or consolidates or merges with the Company or a Subsidiary (including in connection with  a Permitted Acquisition), so long as such investments were not made in contemplation of such Person  becoming a Subsidiary or of such merger;                                          66 

 

                                                                                                                                                                                                                                                       (j)   investments  received  in  connection  with  the  disposition  of  assets  permitted  by  Section 6.05;                (k)   investments constituting deposits described in clauses (c) and (d) of the definition  of the term “Permitted Encumbrances”;                (l)   investments consisting of extensions of credit in the nature of accounts receivable  or notes receivable arising from the grant of trade credit in the ordinary course of business and any deposits,  prepayments and other credits to suppliers or vendors made in the ordinary course of business;               (m)   investments consisting of the endorsement of negotiable instruments for deposit or  collection or similar transactions in the ordinary course of business;               (n)   Permitted Acquisitions; and               (o)   other investments not exceeding $1,000,000 in the aggregate outstanding at any  time.   For purposes of covenant compliance with this Section 6.04, the amount of any investment shall be the  amount actually invested, without adjustment for subsequent increases or decreases in the value of such  investment, less any amount paid, repaid, returned, distributed or otherwise received in cash in respect of  such investment.         SECTION 6.05   Asset Sales.  No Loan Party will, nor will it permit any Subsidiary to, Dispose  of any asset, including any Equity Interests owned by it, nor will any Borrower permit any Subsidiary to  issue  any  additional  Equity  Interest  in  such  Subsidiary  (other  than to another Borrower  or another  Subsidiary in compliance with Section 6.04), except:               (a)   Dispositions of (i) Inventory in the ordinary course of business, (ii) used, obsolete,  worn out or surplus equipment or property in the ordinary course of business and (iii) the abandonment or  dedication to the public of intellectual property that is not material to the business of the Company and its  Subsidiaries;               (b)   Dispositions of assets to any Borrower or any Subsidiary, provided that (i) any  such Dispositions involving  a  Subsidiary  that  is  not  a  Loan  Party  shall  be  made  in  compliance  with  Section 6.09 and (ii) any Dispositions among Loan Parties shall be permitted only so long as the transferee  Loan Party is in the same country as the transferor Loan  Party or such  Disposition is to a  Loan Party  organized in the U.S.;               (c)   Dispositions or  discounting of Accounts (excluding  sales  or  dispositions  in  a  factoring arrangement) in connection with the compromise, settlement or collection thereof;               (d)   Dispositions of Permitted  Investments  and  other investments  permitted  by  clauses (h) and (k) of Section 6.04;               (e)   Sale and Leaseback Transactions permitted by Section 6.06;               (f)   Dispositions resulting from any casualty or other insured damage to, or any taking  under power of eminent domain or by condemnation or similar proceeding of, any property or asset of any  Borrower or any Subsidiary;                                           67 

 

                                                                                                                                                                                                                                                       (g)   Dispositions of assets (other than Equity Interests in a Subsidiary unless all Equity  Interests in such Subsidiary are sold) that are not permitted by any other clause of this Section, provided  that the aggregate fair market value of all assets Disposed of in reliance upon this paragraph (g) shall not  exceed $1,000,000 during any fiscal year of the Company;               (h)   to the extent constituting Dispositions, (i) Liens permitted by Section 6.02, (ii)  transactions permitted by Section 6.03, (iii) the making of any investment permitted by Section 6.04, (iv)  the  making  of  Restricted  Payments permitted  by  Section  6.08  and  (v)  the  unwinding  of  any  Swap  Agreement;               (i)   the use, transfer or disposition of cash in a manner that is not prohibited by this  Agreement; and               (j)   the settlement, waiver, release or surrender of claims or litigation rights of any  kind;   provided that all leases and Dispositions permitted under this Section 6.05 (other than those permitted by  paragraphs (a)(iii), (b), (c), (f), (h), (i) and (j) above) shall be made for fair value and for at least 75%  consideration comprised of cash and/or Permitted Investments.         SECTION 6.06   Sale and Leaseback Transactions.  No Loan Party will, nor will it permit any  Subsidiary  to, enter  into  any  arrangement,  directly  or  indirectly,  whereby  it  shall  sell  or  transfer  any  property, real or personal, used or useful in its business, whether now owned or hereafter acquired, and  thereafter rent or lease such property or other property that it intends to use for substantially the same  purpose or purposes as the property sold or transferred (a “Sale and Leaseback Transaction”), except for  any  such  sale  of  any  fixed  or  capital  assets  by any Borrower or any  Subsidiary  that  is  made  for  cash  consideration in an amount not less than the fair value of such fixed or capital asset and is consummated  within 180 days after such Borrower or such Subsidiary acquires or completes the construction of such  fixed or capital asset.         SECTION 6.07   Swap Agreements.  No Loan Party will, nor will it permit any Subsidiary to,  enter into any Swap Agreement, except (a) Swap Agreements entered into to hedge or mitigate risks to  which any Borrower or any Subsidiary has actual exposure (other than those in respect of Equity Interests  of any Borrower or any Subsidiary), and (b) Swap Agreements entered into in order to effectively cap,  collar or exchange interest rates (from floating to fixed rates, from one floating rate to another floating rate  or otherwise) with respect to any interest-bearing liability or investment of any Borrower or any Subsidiary.         SECTION 6.08   Restricted Payments; Certain Payments of Indebtedness.               (a)   No Loan Party will, nor will it permit any Subsidiary to, declare or make, or agree  to declare or make, directly or indirectly, any Restricted Payment, except (i) the Borrowers may declare  and pay dividends with respect to its common stock payable solely in additional shares of its common stock,  and, with respect to its preferred stock, payable solely in additional shares of such preferred stock or in  shares of its common stock, (ii) Subsidiaries may declare and pay dividends ratably with respect to their  Equity Interests, (iii) the Borrowers may make Restricted Payments, not exceeding $1,000,000 during any  fiscal year of the Company, pursuant to and in accordance with stock option plans or other benefit plans for  management or employees of the Borrowers and their Subsidiaries, (iv) the Company may issue Equity  Interests and make cash payment in lieu of issuing fractional shares in connection with the exercise of  warrants,  options  or  other  securities  convertible  into  or  exchangeable  for  such  Equity  Interests  in  an  aggregate amount not to exceed $100,000, (v) the Company may purchase its Equity Interests in connection                                          68 

 

                                                                                                                                                                                                                                           with the exercise of stock options or stock appreciation rights by way of cashless exercise or the vesting of  restricted stock units or in connection with the satisfaction of withholding tax obligations, (vi) the Company  may the Company may purchase for value any rights distributed in connection with any stockholders rights  plan adopted by the Company; (vii) the Swiss Borrower may pay dividends or distributions to the Company,  and (viii) the  Company  may  make other  Restricted  Payments  in  an  aggregate  amount  not  to  exceed  $500,000 in any fiscal year, so long as, at the time of such Restricted Payment and after giving effect thereto  on a pro forma basis, (A) no Event of Default exists and (B) the Company is in compliance with the financial  covenants set forth in Section 6.12.               (b)   No Loan Party will, nor will it permit any Subsidiary to, make or agree to pay or  make, directly or indirectly, any payment or other distribution (whether in cash, securities or other property)  of or in respect of principal of or interest on any Indebtedness, or any payment or other distribution (whether  in cash,  securities  or other  property), including  any  sinking  fund  or  similar  deposit,  on  account of  the  purchase, redemption, retirement, acquisition, cancellation or termination of any Indebtedness, except:                     (i)   payment of Indebtedness created under the Loan Documents;                     (ii)  payment  of regularly  scheduled  interest  and  principal  payments  as and        when due in respect of any Indebtedness permitted under Section 6.01, other than payments in        respect of the Subordinated Indebtedness prohibited by the subordination provisions thereof;                     (iii) refinancings of Indebtedness to the extent permitted by Section 6.01; and                      (iv)  payment  of  secured  Indebtedness  that  becomes  due  as  a  result  of  the        voluntary  sale  or  transfer  of or  casualty  event  involving the  property  or  assets  securing  such        Indebtedness to the extent such sale or transfer is permitted by the terms of Section 6.05;                     (v)   the conversion of Indebtedness of any Loan Party or any Subsidiary into        Equity Interests of the Company and the payment of cash in lieu of fractional shares in connection        with such conversion; provided the portion of such Indebtedness paid in cash shall not exceed        $100,000; and                     (vi)  required payments of cash or deliveries in shares of Common Stock or any        combination thereof (or other securities or property following a merger event, reclassification or        other change of the Common Stock) (and cash in lieu of fractional shares) pursuant to the terms of,        and otherwise perform its obligations under, the Convertible Notes (including, without limitation,        making payments of interest and principal thereon, making payments due upon required repurchase        or redemption thereof and/or making payments and deliveries upon conversion thereof).         SECTION 6.09   Transactions  with  Affiliates.  No  Loan  Party  will,  nor  will  it  permit  any  Subsidiary to, sell, lease or otherwise transfer any property or assets to, or purchase, lease or otherwise  acquire any property or assets from, or otherwise engage in any other transactions with, any of its Affiliates,  except (a) transactions that (i) are in the ordinary course of business and (ii) are at prices and on terms and  conditions not less favorable to such Loan Party or such Subsidiary than could be obtained on an arm’s- length basis from unrelated third parties, (b) transactions between or among the Loan Parties not involving  any other Affiliate or between or among Subsidiaries that are not Loan Parties, (c) any investment permitted  by  Sections 6.04(c),  6.04(d),  6.04(e)  or  6.04(o),  (d)  any  Indebtedness  permitted  under  Section  6.01(c),  (e) any Restricted Payment permitted by Section 6.08, (f) loans or advances to employees permitted under  Section 6.04(f), (g) the payment of reasonable fees to directors of any Borrower or any Subsidiary who are  not employees of such Borrower or any Subsidiary, and compensation and employee benefit arrangements                                          69 

 

                                                                                                                                                                                                                                           paid to, and indemnities provided for the benefit of, directors, officers or employees of the Borrowers or  their Subsidiaries in the ordinary course of business, (h) any issuances of securities or other payments,  awards or grants in cash, securities or otherwise pursuant to, or the funding of, employment agreements,  stock options and stock ownership plans approved by a Borrower’s board of directors, and (j) as set forth  on Schedule 6.09 to the Disclosure Letter.         SECTION 6.10   Restrictive Agreements.  No Loan Party will, nor will it permit any Subsidiary  to, directly  or indirectly  enter  into,  incur  or  permit  to  exist  any  agreement  or  other  arrangement  that  prohibits, restricts or imposes any condition upon (a) the ability of such Loan Party or any Subsidiary to  create, incur or permit to exist any Lien upon any of its property or assets to secure the Obligations, or (b)  the ability of any Subsidiary to pay dividends or other distributions with respect to any Equity Interests or  to make or repay loans or advances to any Borrower or any other Subsidiary or to Guarantee Indebtedness  of any Borrower or any other Subsidiary; provided that (i) the foregoing shall not apply to restrictions and  conditions imposed by any Requirement of Law or by any Loan Document, (ii) the foregoing shall not  apply to restrictions and conditions existing on the date hereof identified on Schedule 6.10 to the Disclosure  Letter (but shall apply to any amendment or modification expanding the scope of any such restriction or  condition),  (iii) the  foregoing  shall  not  apply  to  customary  restrictions  and  conditions  contained  in  agreements  relating  to  the  sale  of  the  Company  or  any  Subsidiary  or  assets  of  the  Company  or  any  Subsidiary, in each case, pending such sale, provided such restrictions and conditions apply only to the  Person or assets that are to be sold and such sale is permitted hereunder or all Secured Obligations will be  Paid in Full, (iv) clause (a) of the foregoing shall not apply to restrictions or conditions imposed by any  agreement relating to secured Indebtedness or other secured obligations permitted by this Agreement if  such restrictions or conditions apply only to the property or assets securing such Indebtedness, (v) clause  (a) of the foregoing shall not apply to customary provisions in leases and other contracts restricting the  assignment or encumbrance thereof, (vi) the foregoing shall not apply to restrictions and conditions in any  indenture, agreement, document, instrument or other arrangement relating to the assets or business of any  Subsidiary existing prior to the consummation of an acquisition in which such Subsidiary was acquired  (and not created in contemplation of such acquisition), (vii) clause (a) of the foregoing shall not apply to  customary  provisions  in  joint  venture  agreements  (and  other  similar agreements)  (provided  that  such  provisions apply only to such joint venture and to Equity Interests in such joint venture), (viii) clause (b) of  the foregoing shall not apply to customary net worth provisions or similar financial maintenance provisions  contained in real property leases, and (ix) clause (b) of the foregoing shall not apply to restrictions requiring  minimum reserves of cash or other deposits, in each case, imposed by customers of the Company or any  Subsidiary under contracts entered into in the ordinary course of business.         SECTION 6.11   Amendment of Material Documents.  No Loan Party will, nor will it permit  any  Subsidiary  to,  amend,  modify  or  waive  any  of  its  rights  under  (a) any  agreement  relating  to  any  Subordinated  Indebtedness,  except  to  the  extent  permitted  under  the  intercreditor  agreement  or  subordination agreement applicable to such Subordinated Indebtedness, (b) the Convertible Notes, the 2020  Notes Indenture, the 2024 Notes Indenture or any other documents, agreements or instruments executed in  connection therewith, or (c) its charter, articles or certificate of organization or incorporation and bylaws  or operating, management or partnership agreement, or other organizational or governing documents, in  each case, to the extent any such amendment, modification or waiver would be materially adverse to the  Lender.         SECTION 6.12   Financial Covenants.                (a)   Liquidity.  The Company shall have Liquidity of not less than $20,000,000 as of  the end of each fiscal quarter of the Company.                                          70 

 

                                                                                                                                                                                                                                                       (b)   Minimum EBITDA.  The Company shall have EBITDA, determined as of the end  of each fiscal quarter of the Company for the period of the four consecutive fiscal quarters ending on such  date, of not less than $1.               (c)   Adjusted Quick Ratio.  The Company will not permit the Adjusted Quick Ratio,  determined on the last day of each fiscal quarter of the Company, to be less than 1.10 to 1.00.                                    ARTICLE VII                                  Events of Default         If any of the following events (“Events of Default”) shall occur:               (a)   the Borrowers shall fail to pay any principal of any Loan or any reimbursement  obligation in respect of any LC Disbursement when and as the same shall become due and payable, whether  at the due date thereof or at a date fixed for prepayment thereof or otherwise;                (b)   the Borrowers shall fail to pay any interest on any Loan or any fee or any other  amount (other than an amount referred to in clause (a) of this Article) payable under this Agreement or any  other Loan Document, when and as the same shall become due and payable and such failure shall continue  unremedied for 3 days;               (c)   any representation or warranty made or deemed made by or on behalf of any Loan  Party or any Subsidiary in, or in connection with, this Agreement or any other Loan Document or any  amendment or modification hereof or thereof or waiver hereunder or thereunder, or in any report, certificate,  financial statement or other document furnished by any Loan Party pursuant to or in connection with this  Agreement or any other Loan Document or any amendment or modification hereof or thereof or waiver  hereunder or thereunder, shall prove to have been materially incorrect when made or deemed made;               (d)   any  Loan  Party  shall  fail  to  observe  or  perform  any  covenant,  condition  or  agreement  contained  in  Section 5.02(a),  5.03  (with  respect  to  a  Loan  Party’s  existence)  or  5.09 or  in  Article VI;               (e)   any  Loan  Party  shall  fail  to  observe  or  perform  any  covenant,  condition  or  agreement contained in this Agreement or any other Loan Document (other than those specified in clause  (a), (b) or (d)), and such failure shall continue unremedied for a period of (i) 5 days after the earlier of any  Responsible Officer of Loan Party having knowledge of such breach or notice thereof from the Lender if  such breach relates to terms or provisions of Section 5.01, 5.02 (other than Section 5.02(a)), 5.03 through  5.07, 5.11, 5.12, 5.14 or 5.15 of this Agreement or (ii) 30 days after the earlier of any Responsible Officer  of Loan Party having knowledge of such breach or notice thereof from the Lender if such breach relates to  terms or provisions of any other Section of this Agreement;               (f)   any Loan  Party  or any Subsidiary shall fail  to  make  any  payment  (whether  of  principal or interest and regardless of amount) in respect of any Material Indebtedness, when and as the  same shall become due and payable, after giving effect to any applicable grace period in the applicable  instrument or agreement evidencing such Material Indebtedness;               (g)   any event or condition occurs that results in any Material Indebtedness becoming  due prior to its scheduled maturity or that enables or permits (with or without the giving of notice, the lapse  of time or both) the holder or holders of any Material Indebtedness or any trustee or agent on its or their  behalf  to  cause  any  Material  Indebtedness  to  become  due,  or  to  require  the  prepayment,  repurchase,                                          71 

 

                                                                                                                                                                                                                                           redemption or defeasance thereof, prior to its scheduled maturity; provided that this clause (g) shall not  apply to (w) secured Indebtedness that becomes due as a result of the sale, transfer or other disposition  (including  as  a  result  of  a  casualty  or  condemnation  event)  of  the property  or  assets  securing  such  Indebtedness to the extent such sale, transfer or other disposition is not prohibited by this Agreement, (x) a  voluntary prepayment of such Indebtedness or a voluntary refinancing of such Indebtedness permitted by  the terms of Section 6.01, (y) any early payment requirement or unwinding or termination with respect to  any Swap Agreement not arising as a result of a default by the Company or any Subsidiary thereunder or  (z)  any  repurchase,  prepayment,  defeasance,  redemption, conversion  or  settlement  with  respect  to  the  Convertible Notes pursuant to their terms unless such repurchase, prepayment, defeasance, redemption,  conversion or settlement is required as a result of a default thereunder, a “Fundamental Change” as defined  thereunder or an event that constitutes an Event of Default under this Agreement;               (h)   an involuntary proceeding shall be commenced or an involuntary petition shall be  filed seeking (i) liquidation, reorganization or other relief in respect of a Loan Party (other than the Swiss  Borrower) or any Subsidiary or its debts, or of a substantial part of its assets, under any federal, state or  foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect or (ii) the appointment  of a receiver, trustee, custodian, sequestrator, conservator or similar official for any Loan Party (other than  the Swiss Borrower) or any Subsidiary or for a substantial part of its assets, and, in any such case, such  proceeding or petition shall continue undismissed for 60 days or an order or decree approving or ordering  any of the foregoing shall be entered;               (i)   any  Loan  Party (other  than  the  Swiss  Borrower) or any Subsidiary  shall  (i) voluntarily commence any proceeding or file any petition seeking liquidation, reorganization or other  relief  under  any federal,  state  or  foreign  bankruptcy,  insolvency,  receivership  or  similar  law  now  or  hereafter in effect, (ii) consent to the institution of, or fail to contest in a timely and appropriate manner,  any  proceeding  or  petition  described  in  clause  (h)  of  this  Article,  (iii) apply  for  or  consent  to  the  appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for such Loan  Party or Subsidiary of any Loan Party or for a substantial part of its assets, (iv) file an answer admitting the  material allegations of a petition filed against it in any such proceeding, (v) make a general assignment for  the benefit of creditors or (vi) take any action for the purpose of effecting any of the foregoing;               (j)   any Loan Party (other than the Swiss Borrower) or any Subsidiary shall become  unable, admit in writing its inability, or publicly declare its intention not to, or fail generally, to pay its debts  as they become due;               (k)   a Swiss Insolvency Event shall occur;               (l)   one or more judgments for the payment of money in an aggregate amount in excess  of $1,000,000 (to the extent not covered by a creditworthy insurer that has not denied coverage) shall be  rendered against any Loan Party, any Subsidiary or any combination thereof and the same shall remain  undischarged  or  unsatisfied  for  a  period  of  30 consecutive  days  during  which  execution  shall  not  be  effectively stayed, or any action shall be legally taken by a judgment creditor to attach or levy upon any  assets of any Loan Party or any Subsidiary to enforce any such judgment;               (m)   an  ERISA Event  shall  have  occurred  that, when  taken  together  with  all  other  ERISA Events that have occurred, could reasonably be expected to result in a Material Adverse Effect;               (n)   a Change in Control shall occur;                                          72 

 

                                                                                                                                                                                                                                                       (o)   except  as  permitted  by  this  Agreement  or  any  separate  Guarantee,  the  Loan  Guaranty shall fail to remain in full force or effect or any action shall be taken to discontinue or to assert  the invalidity or unenforceability of the Loan Guaranty, or any Guarantor shall fail to comply with any of  the material terms or provisions of the Loan Guaranty to which it is a party, or any Guarantor shall deny in  writing that it has any further liability under the Loan Guaranty to which it is a party, or shall give notice  to such effect, including, but not limited to notice of termination delivered pursuant to Section 9.08, except  in each case where due to such Loan Party’s liquidation, dissolution, merger or consolidation permitted  under this Agreement;               (p)   except as permitted by the terms of this Agreement or any Collateral Document,  (i) any Collateral Document shall for any reason fail to create a  valid security interest in any material  Collateral purported to be covered thereby, or (ii) any Lien securing any Secured Obligation shall cease to  be a perfected (to the extent required by the Loan Documents), first priority Lien (subject to Liens permitted  by Section 6.02);                (q)   except as permitted by the terms of this Agreement or any Collateral Document or  as the result of an action or failure to act on the part of the Lender, any Collateral Document shall fail to  remain in full force or effect or any action shall be taken by any Loan Party to discontinue or to assert the  invalidity or unenforceability of any Collateral Document; or               (r)   except  as  permitted  by  the  terms  of  this  Agreement  or  the  applicable  Loan  Document, any material provision of any Loan Document for any reason ceases to be valid, binding and  enforceable in accordance with its terms (or any Loan Party shall challenge the enforceability of any Loan  Document or shall assert in writing, or engage in any action or inaction that evidences its assertion, that any  provision of any of the Loan Documents has ceased to be or otherwise is not valid, binding and enforceable  in accordance with its terms);    then, and in every such event (other than an event with respect to the Borrowers described in clause (h) or  (i) of this Article), and at any time thereafter during the continuance of such event, the Lender may, by  notice to the Borrower Representative, take either or both of the following actions, at the same or different  times:  (i) terminate the Revolving Commitment, whereupon the Revolving Commitment shall terminate  immediately, (ii) declare the Loans then outstanding to be due and payable in whole (or in part, in which  case any principal not so declared to be due and payable may thereafter be declared to be due and payable),  whereupon the principal of the Loans so declared to be due and payable, together with accrued interest  thereon  and  all  fees  (including,  for  the  avoidance  of  doubt,  any  break  funding  payment)  and  other  obligations of the Borrowers accrued hereunder and under any other Loan Document, shall become due  and payable immediately, in each case without presentment, demand, protest or other notice of any kind,  all of which are hereby waived by the Borrowers to the fullest extent permitted by applicable law, and (iii)  require cash collateral for the LC Exposure in accordance with Section 2.04(h) hereof; and in the case of  any  event  with  respect to either  Borrower  described  in  clause  (h)  or  (i)  of  this  Article,  the  Revolving  Commitment  shall  automatically  terminate  and  the  principal  of  the  Loans  then  outstanding,  and  cash  collateral  for  the  LC  Exposure,  together  with  accrued  interest  thereon  and  all  fees  (including,  for  the  avoidance of doubt, any break funding payments) and other obligations of the Borrowers accrued hereunder  and under any other Loan Documents shall automatically become due and payable, in each case without  presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrowers  to the fullest extent permitted by applicable law.  Upon the occurrence and during the continuance of an  Event of Default, the Lender may increase the rate of interest applicable to the Loans and other Obligations  as set forth in this Agreement and exercise any rights and remedies provided to the Lender under the Loan  Documents or at law or equity, including all remedies provided under the UCC.                                          73 

 

                                                                                                                                                                                                                                                                            ARTICLE VIII                                   Miscellaneous         SECTION 8.01   Notices.                 (a)   Except in the case of notices and other communications expressly permitted to be  given by telephone (and subject to paragraph (b) below), all notices and other communications provided  for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified  or registered mail or sent by fax, as follows:                       (i)   if to any Loan Party, to it in care of the Borrower Representative at:                           Harmonic Inc.                          4300 North First Street                          San Jose, California 95134                          Attention: General Counsel                           Fax No: (408) 542-2521                          Email: harmoniclegal@harmonicinc.com                      (ii)  if to JPMorgan Chase Bank, N.A. at:                           JPMorgan Chase Bank, N.A.                          237 Park Avenue, 6th Floor                          New York, NY 10017                          Attention: Ted Karsos                          Email:  ted.karsos@jpmorgan.com    All such notices and other communications (i) sent by hand or overnight courier service, or mailed by  certified or registered mail, shall be deemed to have been given when received, (ii) sent by fax shall be  deemed to have been given when sent, provided that if not given during normal business hours for the  recipient, such notice or communication shall be deemed to have been given at the opening of business on  the next Business Day of the recipient, or (iii) delivered through Electronic Systems to the extent provided  in paragraph (b) below shall be effective as provided in such paragraph.               (b)   Notices and other communications to the Lender hereunder may be delivered or  furnished by using Electronic Systems pursuant to procedures approved by the Lender; provided that the  foregoing shall not apply to notices pursuant to Article II or to compliance and no Default certificates  delivered pursuant to Sections 5.01(c) and 5.01(d) unless otherwise stated or agreed by the Lender.  Each  of the Lender and the Borrower Representative (on behalf of the Loan Parties) may, in its discretion, agree  to  accept  notices  and  other  communications  to  it  hereunder  by using  Electronic  Systems pursuant  to  procedures approved by it; provided that approval of such procedures may be limited to particular notices  or communications.  All such  notices  and  other communications  (i) sent to an e-mail address  shall be  deemed received upon the sender’s receipt of an acknowledgement from the intended recipient (such as by  the “return  receipt requested” function,  as available,  return e-mail  or  other  written  acknowledgement),  provided that if not given during the normal business hours of the recipient, such notice or communication  shall be deemed to have been given at the opening of business on the next Business Day for the recipient,  and (ii) posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the  intended recipient, at its e-mail address as described in the foregoing clause (i), of notification that such  notice or communication is available and identifying the website address therefor; provided that, for both                                          74 

 

                                                                                                                                                                                                                                           clauses (i) and (ii) above, if such notice, e-mail or other communication is not sent during the  normal  business hours of the recipient, such notice or communication shall be deemed to have been sent at the  opening of business on the next Business Day of the recipient.               (c)   Any party hereto may change its address, facsimile number or e-mail address for  notices and other communications hereunder by notice to the other parties hereto.           SECTION 8.02   Waivers; Amendments.                 (a)   No failure or delay by the Lender in exercising any right or power hereunder or  under any other Loan Document shall operate as a waiver thereof, nor shall any single or partial exercise  of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power,  preclude any other or further exercise thereof or the exercise of any other right or power.  The rights and  remedies of the Lender hereunder and under any other Loan Document are cumulative and are not exclusive  of  any  rights  or  remedies  that  they would  otherwise  have.   No  waiver  of  any  provision  of  any  Loan  Document or consent to any departure by any Loan Party therefrom shall in any event be effective unless  the same shall be permitted by paragraph (b) of this Section, and then such waiver or consent shall be  effective only in the specific instance and for the purpose for which given.  Without limiting the generality  of the foregoing, the making of a Loan or issuance of a Letter of Credit shall not be construed as a waiver  of any Default, regardless of whether the Lender may have had notice or knowledge of such Default at the  time.               (b)   Neither this Agreement nor any other Loan Document nor any provision hereof or  thereof may be  waived,  amended or modified  except (i) in the case of this Agreement, pursuant to an  agreement or agreements in writing entered into by the Borrowers and the Lender or (ii) in the case of any  other Loan Document, pursuant to an agreement or agreements in writing entered into by the Lender and  the Loan Party or Loan Parties that are parties thereto.   Notwithstanding anything herein to the contrary,  the Lender shall not be liable for, or be responsible for any claim, liability, loss, cost or expense suffered  by any Borrower, any other Loan Party or any Subsidiary as a result of, any determination of the Revolving  Exposure, any of the component amounts thereof or any portion thereof attributable to the Lender or any  Dollar Equivalent.         SECTION 8.03   Expenses; Indemnity; Damage Waiver.               (a)   The Loan Parties, jointly and severally, shall pay all (x) reasonable out-of-pocket  expenses incurred by the Lender and its Affiliates, including the reasonable fees, charges and disbursements  of outside counsel for the Lender, in connection with the credit facilities provided for herein, the preparation  and administration of the Loan Documents and any amendments, modifications or waivers of the provisions  of  the  Loan  Documents  (whether  or  not  the  transactions  contemplated  hereby  or  thereby  shall  be  consummated),  (y)  reasonable  out-of-pocket  expenses  incurred  by  the  Lender  in  connection  with  the  issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder  and (z) out-of-pocket expenses incurred by the Lender, including the fees, charges and disbursements of  any outside counsel for the Lender, in connection with the enforcement, collection or protection of its rights  in connection with the Loan Documents, including its rights under this Section, or in connection with the  Loans made or Letters of Credit issued hereunder, including all such out-of-pocket expenses incurred during  any workout, restructuring or negotiations in respect of such Loans or Letters of Credit.  Expenses being  reimbursed by the Loan Parties under this Section include, without limiting the generality of the foregoing,  fees, costs and expenses incurred in connection with:                                          75 

 

                                                                                                                                                                                                                                                             (i)   appraisals  and  insurance  reviews (subject  to  the  limitations  in  Section        5.06);                     (ii)  field  examinations  and  the  preparation  of  Reports  based  on  the  fees        charged by a third party retained by the Lender or the internally allocated fees for each Person        employed by the Lender with respect to each field examination (subject to the limitations in Section        5.06);                     (iii) background checks regarding senior management and/or key investors, as        deemed necessary or appropriate in the sole discretion of the Lender;                      (iv)  Taxes,  fees  and  other  charges  for  (A) lien  and  title  searches  and  title        insurance  and  (B) recording  the Collateral  Documents,  filing  financing  statements  and        continuations, and other actions to perfect, protect, and continue the Lender’s Liens;                      (v)   sums paid or incurred to take any action required of any Loan Party under        the Loan Documents that such Loan Party fails to pay or take; and                      (vi)  forwarding loan proceeds, collecting checks and other items of payment,        and establishing and maintaining the accounts and lock boxes, and costs and expenses of preserving        and protecting the Collateral.     All of the foregoing fees, costs and expenses may be charged to the Borrowers as Revolving Loans or to  another deposit account, all as described in Section 2.16(c).               (b)   The  Loan  Parties,  jointly  and  severally,  shall  indemnify  the  Lender,  and  each  Related  Party  of  the  Lender  (each  such  Person  being  called  an “Indemnitee”)  against,  and  hold  each  Indemnitee harmless from, any and all losses, claims, damages, penalties, incremental taxes, liabilities and  related expenses, including the fees, charges and disbursements of one firm counsel for all such Indemnitees  (plus one local counsel in each reasonably necessary jurisdiction) and in the case of an actual or perceived  conflict of interest where the Indemnitee affected by such conflict informs the Company of such conflict  and thereafter retains its own counsel, another firm of counsel for each such affected Indemnitee, in each  case, incurred by or asserted against any Indemnitee arising out of, in connection with, or as a result of  (i) the execution or delivery of the Loan Documents or any agreement or instrument contemplated thereby,  the performance by the parties hereto of their respective obligations thereunder or the consummation of the  Transactions or any other transactions contemplated hereby, (ii) any Loan or Letter of Credit or the use of  the proceeds therefrom (including any refusal by the Lender to honor a demand for payment under a Letter  of Credit if the documents presented in connection with such demand do not strictly comply with the terms  of such Letter of Credit), (iii) any actual or alleged presence or Release of Hazardous Materials on or from  any property owned or operated by a Loan Party or a Subsidiary, or any Environmental Liability related in  any way to a Loan Party or Subsidiary, (iv) the failure of a Loan Party to deliver to the Lender the required  receipts or other required documentary evidence with respect to a payment made by such Loan Party for  Taxes pursuant to Section 2.15, or (v) any actual or prospective claim, litigation, investigation, arbitration  or  proceeding  relating  to  any  of  the  foregoing, whether  or  not  such  claim,  litigation,  investigation,  arbitration  or  proceeding  is  brought  by  any  Loan  Party or  their  respective  equity  holders,  Affiliates,  creditors or any other third Person and whether based on contract, tort or any other theory and regardless  of whether any Indemnitee is a party thereto; provided that such indemnity shall not, as to any Indemnitee,  be available to the extent that such losses, claims, damages, penalties, liabilities or related expenses are  determined by a court of competent jurisdiction by final and non-appealable judgment to have resulted from  (x) the gross negligence or willful misconduct of such Indemnitee, (y) a material breach in bad faith by                                          76 

 

                                                                                                                                                                                                                                           such Indemnitee of its express obligations under any Loan Document pursuant to a claim made by any Loan  Party, or (z) any dispute solely among Indemnitees that do not involve any act or omission by the Company  or any of its Subsidiaries. This Section 8.03(b) shall not apply with respect to Taxes other than any Taxes  that represent losses, claims, damages, etc., arising from a non-Tax claim.               (c)   To the extent permitted by applicable law, no Loan Party shall assert, and each  Loan Party hereby waives, any claim against any Indemnitee, (i) for any damages arising from the use by  others  of  information  or  other  materials  obtained  through  telecommunications,  electronic  or  other  information transmission systems (including the Internet), except to the extent determined by a court of  competent jurisdiction by final and non-appealable judgment to have resulted from the gross negligence or  willful misconduct of such Indemnitee, or (ii) on any theory of liability, for special, indirect, consequential  or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a  result of, this Agreement, any other Loan Document, or any agreement or instrument contemplated hereby  or thereby, the Transactions, any Loan or Letter of Credit or the use of the proceeds thereof; provided that,  nothing in this paragraph (c) shall relieve any Loan Party of any obligation it may have to indemnify an  Indemnitee against special, indirect, consequential or punitive damages asserted against such Indemnitee  by a third party.               (d)   All amounts due under this Section shall be payable promptly after written demand  therefor.         SECTION 8.04   Successors and Assigns.                 (a)   The provisions of this Agreement shall be binding upon and inure to the benefit of  the parties hereto and their respective successors and assigns permitted hereby (including any Affiliate of  the Lender that issues any Letter of Credit), except that (i) no Borrower may assign or otherwise transfer  any of its rights or obligations hereunder without the prior written consent of the Lender (and any attempted  assignment or transfer by a Borrower without such consent shall be null and void) and (ii) Lender may not  assign or otherwise transfer its rights or obligations hereunder except in accordance with this Section 8.04.   Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than  the parties hereto, their respective successors and assigns permitted hereby (including any Affiliate of the  Lender that issues any Letter of Credit), Participants (to the extent provided in paragraph (c) of this Section)  and, to the extent expressly contemplated hereby, the Related Parties of the Lender) any legal or equitable  right, remedy or claim under or by reason of this Agreement.               (b)   The Lender may assign to one or more assignees all or a portion of its rights and  obligations under this Agreement (including all or a portion of the Revolving Commitment and the Loans  at any time owing to it) with the prior written consent (such consent not to be unreasonably withheld) of  the Borrower Representative, provided that the Borrower Representative shall be deemed to have consented  to an assignment of all or a portion of the Loans and the Revolving Commitment unless it shall object  thereto by written notice to the Lender within 5 Business Days after having received notice thereof,  and  provided further that no consent of the Borrower Representative shall be required for  an assignment to an  Affiliate of the Lender, an Approved Fund or, if an Event of Default has occurred and is continuing, any  other assignee.               (c)   The  Lender,  acting  solely  for  this  purpose  as  an  agent  of the  Borrowers,  shall  maintain at one of its offices in the United States a copy of each assignment delivered to it and a register  for the recordation of the names and addresses of any Person to whom a portion of the Loans and/or the  Revolving Commitment is assigned, together with the Revolving Commitment of and principal amounts  (and stated interest) of the Loans owing to such Person pursuant to the terms hereof from time to time (the                                          77 

 

                                                                                                                                                                                                                                           “Register”).  The entries in the Register shall be conclusive absent manifest error, and the Borrowers and  the Lender shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a  lender hereunder for all purposes of this Agreement.  The Register shall be available for inspection by the  Borrowers and the Lender, at any reasonable time and from time to time upon reasonable prior notice.                (d)   The Lender  may,  without  the  consent  of,  or  notice  to, the  Borrowers,  sell  participations to one or more banks or other entities (a “Participant”) in all or a portion of the Lender’s  rights and/or obligations under this Agreement (including all or a portion of the Revolving Commitment  and/or Letters of Credit and/or the Loans owing to it); provided that (i) the Lender’s obligations under this  Agreement shall remain unchanged; (ii) the Lender shall remain solely responsible to the other parties  hereto for the performance of such obligations; and (iii) the Borrowers shall continue to deal solely and  directly with the Lender in connection with the Lender’s rights and obligations under this Agreement.  Each  Borrower  agrees  that  each  Participant  shall  be  entitled  to  the  benefits  of  Sections 2.13, 2.14 and 2.15  (subject to the requirements and limitations therein) to the same extent as if it were the Lender and had  acquired its interest by assignment pursuant to paragraph (b) of this Section; provided that such Participant  shall  not  be  entitled  to  receive  any  greater  payment  under  Section 2.13 or 2.15,  with  respect  to  any  participation, than its participating Lender would have been entitled to receive, except to the extent such  entitlement to receive a greater payment results from a Change in Law that occurs after the Participant  acquired the applicable participation.    To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 8.08 as  though it were the Lender.  If the Lender shall sell a participation, it shall, acting solely for this purpose as  a non-fiduciary agent of the Borrowers, maintain a register on which it enters the name and address of each  Participant and the principal amounts (and stated interest) of each Participant’s interest in the Loans or other  obligations under this Agreement or any other Loan Document (the “Participant Register”); provided that  the Lender shall have no obligation to disclose all or any portion of the Participant Register (including the  identity  of  any  Participant  or  any  information  relating  to  a  Participant’s  interest  in the  Revolving  Commitment, any Loans or Letters of Credit or its other obligations under this Agreement or any other  Loan Document) to any Person except to the extent that such disclosure is necessary to establish that the  Revolving Commitment, such Loan, such Letter of Credit or such other obligation is in registered form  under Section 5f.103-1(c) of the U.S. Treasury Regulations.  The entries in the Participant Register shall be  conclusive absent manifest error, and the Lender shall treat each Person whose name is recorded in the  Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding  any notice to the contrary.                 (e)   A transfer or assignment may only be  made if it would not result in any non- compliance with the Swiss Non-Bank Rules (it being agreed that each of the Lender and the Company may,  without independent verification, rely on the status confirmation made by a new lender), unless the transfer  is made at a time when an Event of Default is continuing.                (f)   The Lender may at any time pledge or assign a security interest in all or any portion  of its rights under this Agreement to secure obligations of the Lender, including without limitation any  pledge or assignment to secure obligations to a Federal Reserve Bank, and this Section shall not apply to  any such pledge or assignment of a security interest; provided that no such pledge  or assignment of a  security interest shall release the Lender from any of its obligations hereunder or substitute any such pledgee  or assignee for the Lender as a party hereto.         SECTION 8.05   Survival.  All covenants, agreements, representations and warranties made by  the Loan Parties in the Loan Documents and in the certificates or other instruments delivered in connection  with or pursuant to this Agreement or any other Loan Document shall be considered to have been relied                                          78 

 

                                                                                                                                                                                                                                           upon by the other parties hereto and shall survive the execution and delivery of the Loan Documents and  the making of any Loans and issuance of any Letters of Credit, regardless of any investigation made by any  such other party or on its behalf and notwithstanding that the Lender may have had notice or knowledge of  any Default or incorrect representation or warranty at the time any credit is extended hereunder, and shall  continue in full force and effect as long as the principal of or any accrued interest on any Loan or any fee  or any other amount payable under this Agreement is outstanding and unpaid or any Letter of Credit is  outstanding and so long as the Revolving Commitment has not expired or terminated.  The provisions of  Sections 2.13, 2.14, 2.15 and Section 8.03 shall survive and remain in full force and effect regardless of the  consummation  of  the  transactions  contemplated  hereby,  the  repayment  of  the  Loans,  the  expiration  or  termination of the Letters of Credit and the Revolving Commitment or the termination of this Agreement  or any other Loan Document or any provision hereof or thereof.         SECTION 8.06   Counterparts; Integration; Effectiveness; Electronic Execution.               (a)   This Agreement may be executed in counterparts (and by different parties hereto  on different counterparts), each of which shall constitute an original, but all of which when taken together  shall  constitute  a  single  contract.  This  Agreement, the  other  Loan  Documents  and  any  separate  letter  agreements  with respect  to  fees  payable  to the Lender constitute  the  entire  contract  among  the  parties  relating to the subject matter hereof and supersede any and all previous agreements and understandings,  oral or written, relating to the subject matter hereof.  Except as provided in Section 4.01, this Agreement  shall become effective when it shall have been executed by the Lender and when the Lender shall have  received counterparts hereof which, when taken together, bear the signatures of each of the other parties  hereto, and thereafter shall be binding upon and inure to the benefit of the parties hereto and their respective  successors and assigns.               (b)   Delivery of an executed counterpart of a signature page of this Agreement by fax,  emailed pdf. or any other electronic means that reproduces an image of the actual executed signature page  shall be effective as delivery of a manually executed counterpart of this Agreement.  The words “execution,”  “signed,” “signature,” “delivery,” and words of like import in or relating to any document to be signed in  connection with this Agreement and the transactions contemplated hereby or thereby shall be deemed to  include Electronic Signatures, deliveries or the keeping of records in electronic form, each of which shall  be of the same legal effect, validity or enforceability as a manually executed signature, physical delivery  thereof or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided  for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce  Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on  the Uniform Electronic Transactions Act.         SECTION 8.07   Severability.  Any provision of any Loan Document held to be invalid, illegal  or  unenforceable  in  any  jurisdiction  shall,  as  to  such  jurisdiction,  be  ineffective  to  the  extent  of  such  invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the  remaining provisions thereof; and the invalidity of a particular provision in a particular jurisdiction shall  not invalidate such provision in any other jurisdiction.         SECTION 8.08   Right of Setoff.  If an Event of Default shall have occurred and be continuing,  the Lender and each of its Affiliates is hereby authorized at any time and from time to time, to the fullest  extent permitted by law, to set off and apply any and all deposits (general or special, time or demand,  provisional or final) at any time held and other obligations at any time owing by the Lender or any Affiliate  to  or  for  the  credit  or  the  account  of any Loan Party against  any and  all of the  Secured  Obligations,  irrespective of whether or not the Lender shall have made any demand under this Agreement or any other  Loan Document and although such obligations of the Loan Parties may be contingent or unmatured or are                                          79 

 

                                                                                                                                                                                                                                           owed to a branch office or Affiliate of the Lender different from the branch office or Affiliate holding such  deposit or obligated on such indebtedness. The rights of the Lender under this Section are in addition to  other rights and remedies (including other rights of setoff) which the Lender may have.          SECTION 8.09   Governing Law; Jurisdiction; Consent to Service of Process.                 (a)   The Loan Documents (other than those containing a contrary express choice of law  provision) shall be governed by and construed in accordance with the internal laws of the State of New  York, but giving effect to federal laws applicable to national banks.               (b)   Each of the parties hereto hereby irrevocably and unconditionally submits, for itself  and its property, to the nonexclusive jurisdiction of any U.S. federal or New York State court sitting in New  York, New York, and any appellate court from any thereof, in any action or proceeding arising out of or  relating  to  any  Loan  Documents, the  transactions  relating  hereto  or  thereto, or  for  recognition  or  enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees  that all claims in respect of any such action or proceeding may (and any such claims, cross-claims or third  party claims brought against the Lender or any of its Related Parties may only) be heard and determined in  such state court or, to the extent permitted by law, in such federal court.  Each of the parties hereto agrees  that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other  jurisdictions by suit on the judgment or in any other manner provided by law.  Nothing in this Agreement  or any other Loan Document shall affect any right that the Lender may otherwise have to bring any action  or  proceeding  relating  to  this  Agreement  or  any  other  Loan  Document  against  any  Loan  Party  or  its  properties in the courts of any jurisdiction.               (c)   Each  Loan  Party  hereby  irrevocably  and  unconditionally  waives,  to  the  fullest  extent it may legally and effectively do so, any objection which it may now or hereafter have to the laying  of venue of any suit, action or proceeding arising out of or relating to this Agreement or any other Loan  Document in any court referred to in paragraph (b) of this Section.  Each of the parties hereto hereby  irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the  maintenance of such action or proceeding in any such court.               (d)   Each  party to this  Agreement irrevocably consents to service  of process in the  manner provided for notices in Section 8.01.  Nothing in this Agreement or any other Loan Document will  affect the right of any party to this Agreement to serve process in any other manner permitted by law.         SECTION 8.10   California  Judicial  Reference.   IN  THE  EVENT  ANY  LEGAL  PROCEEDING IS FILED IN A COURT OF THE STATE OF CALIFORNIA (THE “COURT”) BY OR  AGAINST THE BORROWERS OR THE LENDER IN CONNECTION WITH ANY CONTROVERSY,  DISPUTE OR CLAIM DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS  AGREEMENT  OR  THE  TRANSACTIONS  CONTEMPLATED  HEREBY  (WHETHER  BASED  ON  CONTRACT, TORT  OR ANY  OTHER THEORY) (EACH,  A “CLAIM”)  AND  THE WAIVER  SET  FORTH  IN  THE  PRECEDING  PARAGRAPH  IS  NOT  ENFORCEABLE  IN  SUCH  ACTION  OR  PROCEEDING, THE BORROWERS AND THE LENDER (BY ITS ACCEPTANCE HEREOF) AGREE  AS FOLLOWS:               (a)   WITH THE EXCEPTION OF THE MATTERS SPECIFIED IN PARAGRAPH  (b) BELOW, ANY CLAIM WILL BE DETERMINED BY A GENERAL REFERENCE PROCEEDING  IN  ACCORDANCE  WITH  THE  PROVISIONS  OF  CALIFORNIA  CODE  OF  CIVIL  PROCEDURE  SECTIONS  638  THROUGH  645.2,  INCLUDING  ANY  REVISION  OR  REPLACEMENT  OF  SUCH  STATUTES OR RULES HEREAFTER ENACTED. THE BORROWERS AND THE LENDER INTEND                                          80 

 

                                                                                                                                                                                                                                           THIS  GENERAL  REFERENCE  AGREEMENT  TO  BE  SPECIFICALLY  ENFORCEABLE  IN  ACCORDANCE WITH CALIFORNIA CODE OF CIVIL PROCEDURE SECTION 638, INCLUDING  ANY  REVISION  OR  REPLACEMENT  OF  SUCH  STATUTE  OR  RULE  HEREAFTER ENACTED.  EXCEPT  AS  OTHERWISE  PROVIDED  IN  THIS  AND  THE  OTHER  RELATED  DOCUMENTS,  VENUE FOR THE REFERENCE PROCEEDING WILL BE IN THE STATE OR FEDERAL COURT IN  THE  COUNTY  OR  DISTRICT  WHERE  VENUE  IS  OTHERWISE  APPROPRIATE  UNDER  APPLICABLE LAW.               (b)   THE FOLLOWING MATTERS SHALL NOT BE SUBJECT TO A GENERAL  REFERENCE PROCEEDING: (i) NON-JUDICIAL FORECLOSURE OF ANY SECURITY INTERESTS  IN REAL OR PERSONAL PROPERTY; (ii) EXERCISE OF SELF-HELP REMEDIES (INCLUDING,  WITHOUT  LIMITATION,  SETOFF);  (iii)  APPOINTMENT  OF  A  RECEIVER;  AND  (iv)  TEMPORARY,  PROVISIONAL  OR  ANCILLARY  REMEDIES  (INCLUDING,  WITHOUT  LIMITATION, WRITS OF ATTACHMENT, WRITS OF POSSESSION, TEMPORARY RESTRAINING  ORDERS OR PRELIMINARY INJUNCTIONS). THIS AGREEMENT DOES NOT LIMIT THE RIGHT  OF THE BORROWERS OR THE LENDER TO EXERCISE OR OPPOSE ANY OF THE RIGHTS AND  REMEDIES  DESCRIBED  IN  CLAUSES  (i)  THROUGH  (iv)  AND  ANY  SUCH  EXERCISE  OR  OPPOSITION DOES NOT WAIVE THE RIGHT OF THE BORROWERS OR THE LENDER TO A  REFERENCE PROCEEDING PURSUANT TO THIS DOCUMENT.               (c)   UPON THE WRITTEN REQUEST OF THE BORROWERS OR THE LENDER,  THE BORROWERS AND THE LENDER SHALL SELECT A SINGLE REFEREE, WHO SHALL BE A  RETIRED JUDGE OR JUSTICE. IF THE BORROWERS AND THE LENDER DO NOT AGREE UPON  A REFEREE WITHIN 10 DAYS OF SUCH WRITTEN REQUEST THEN THE BORROWERS OR THE  LENDER MAY REQUEST THE COURT TO APPOINT A REFEREE PURSUANT TO CALIFORNIA  CODE  OF  CIVIL  PROCEDURE  SECTION  640(B),  INCLUDING  ANY  REVISION  OR  REPLACEMENT OF SUCH STATUTE OR RULE HEREAFTER ENACTED.               (d)   ALL  PROCEEDINGS  AND  HEARINGS  CONDUCTED  BEFORE  THE  REFEREE,  EXCEPT  FOR  TRIAL,  SHALL  BE  CONDUCTED  WITHOUT  A  COURT  REPORTER,  EXCEPT  WHEN  THE  BORROWERS  OR  THE  LENDER  SO  REQUESTS,  A  COURT  REPORTER  WILL  BE  USED  AND  THE  REFEREE  WILL  BE  PROVIDED  A  COURTESY  COPY  OF  THE  TRANSCRIPT.  THE  PARTY  MAKING  SUCH  REQUEST  SHALL  HAVE  THE  OBLIGATION  TO  ARRANGE FOR AND PAY COSTS OF THE COURT REPORTER, PROVIDED THAT SUCH COSTS,  ALONG WITH THE REFEREE’S FEES, SHALL ULTIMATELY BE BORNE BY THE PARTY WHO  DOES NOT PREVAIL, AS DETERMINED BY THE REFEREE.               (e)   THE  REFEREE  MAY  REQUIRE  ONE  OR  MORE  PREHEARING  CONFERENCES. THE BORROWERS AND THE LENDER SHALL BE ENTITLED TO DISCOVERY,  AND THE REFEREE SHALL OVERSEE DISCOVERY IN ACCORDANCE WITH THE RULES OF  DISCOVERY, AND MAY ENFORCE ALL DISCOVERY ORDERS IN THE SAME MANNER AS ANY  TRIAL  COURT  JUDGE  IN  PROCEEDINGS  AT  LAW  IN  THE  STATE  OF  CALIFORNIA.  THE  REFEREE SHALL APPLY THE RULES OF EVIDENCE APPLICABLE TO PROCEEDINGS AT LAW  IN  THE  STATE  OF  CALIFORNIA  AND  SHALL  DETERMINE  ALL  ISSUES  IN  ACCORDANCE  WITH APPLICABLE STATE AND FEDERAL LAW. THE REFEREE SHALL BE EMPOWERED TO  ENTER  EQUITABLE  AS  WELL  AS  LEGAL  RELIEF  AND  RULE  ON  ANY  MOTION  WHICH  WOULD BE AUTHORIZED IN A TRIAL, INCLUDING, WITHOUT LIMITATION, MOTIONS FOR  DEFAULT  JUDGMENT  OR  SUMMARY  JUDGMENT.  THE  REFEREE  SHALL  REPORT  THE  REFEREE’S  DECISION,  WHICH  REPORT  SHALL  ALSO  INCLUDE  FINDINGS  OF  FACT  AND  CONCLUSIONS OF LAW.                                           81 

 

                                                                                                                                                                                                                                                       (f)   THE BORROWERS AND THE LENDER RECOGNIZE AND AGREE THAT  ALL  CLAIMS  RESOLVED  IN  A  GENERAL  REFERENCE  PROCEEDING  PURSUANT  HERETO  WILL BE DECIDED BY A REFEREE AND NOT BY A JURY.         SECTION 8.11   WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY WAIVES,  TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO  A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT  OF  OR  RELATING  TO  THIS  AGREEMENT,  ANY  OTHER  LOAN  DOCUMENT  OR  THE  TRANSACTIONS  CONTEMPLATED  HEREBY  OR  THEREBY  (WHETHER  BASED  ON  CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT  NO REPRESENTATIVE OR OTHER AGENT (INCLUDING ANY ATTORNEY) OF ANY OTHER  PARTY  HAS  REPRESENTED,  EXPRESSLY  OR  OTHERWISE,  THAT  SUCH  OTHER  PARTY  WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER  AND  (B) ACKNOWLEDGES  THAT  IT  AND  THE  OTHER  PARTIES  HERETO  HAVE  BEEN  INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL  WAIVERS AND CERTIFICATIONS IN THIS SECTION.         SECTION 8.12   Headings.  Article and Section headings and the Table of Contents used herein  are for convenience of reference only, are not part of this Agreement and shall not affect the construction  of, or be taken into consideration in interpreting, this Agreement.         SECTION 8.13   Confidentiality.  The  Lender agrees  to  maintain  the  confidentiality  of  the  Information  (as defined  below),  except  that  Information  may  be  disclosed  (a) to  its  and  its  Affiliates’  directors, officers, employees and agents, including accountants, legal counsel and other advisors (it being  understood that the Persons to whom such disclosure is made will be informed of the confidential nature of  such Information and instructed to keep such Information confidential), (b) to the extent requested by any  Governmental  Authority (including  any  self-regulatory  authority,  such  as  the  National  Association  of  Insurance Commissioners), in which case the Lender shall promptly notify the Borrowers, in advance, to  the extent permitted by law, (c) to the extent required by any Requirement of Law or by any subpoena or  similar legal process, in which case the Lender shall promptly notify the Borrowers, in advance, to the  extent permitted by law, (d) to any other party to this Agreement, (e) in connection with the exercise of any  remedies hereunder or under any other Loan Document or any suit, action or proceeding relating to this  Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder, (f) subject  to an agreement containing provisions substantially the same as those of this Section, to (x) any assignee  of or Participant in, or any prospective assignee of or Participant in, any of its rights or obligations under  this Agreement or (y) any actual or prospective counterparty (or its advisors) to any swap or derivative  transaction  relating  to  the  Loan  Parties  and  their  obligations,  (g)  with the  consent  of  the Borrower  Representative, (h) on a confidential basis to (x) any rating agency in connection with rating the Company  or its Subsidiaries or the credit facilities provided for herein or (y) the CUSIP Service Bureau or any similar  agency in connection with the issuance and monitoring of identification numbers with respect to the credit  facilities provided for herein, or (i) to the extent such Information (x) becomes publicly available other than  as a result of a breach of this Section or (y) becomes available to the Lender on a non-confidential basis  from  a  source  other  than  the Borrowers.   For  the  purposes  of  this  Section, “Information” means  all  information received from the Borrowers relating to the Borrowers or their business, other than any such  information that is available to the Lender on a non-confidential basis prior to disclosure by the Borrowers;  provided that, in the case of information received from the Borrowers after the date hereof, such information  is  clearly  identified  at  the  time  of  delivery  as  confidential.   Any  Person  required  to  maintain  the  confidentiality of Information as provided in this Section shall be considered to have complied with its  obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of  such Information as such Person would accord to its own confidential information.                                         82 

 

                                                                                                                                                                                                                                                 SECTION 8.14   Non-reliance; Violation of Law.  The Lender hereby represents that it is not  relying on or looking to any margin stock (as defined in Regulation U) for the repayment of the Borrowings  provided for herein.  Anything contained in this Agreement to the contrary notwithstanding, the Lender  shall not be obligated to extend credit to the Borrowers in violation of any Requirement of Law.         SECTION 8.15   USA PATRIOT Act.  The Lender is subject to the requirements of the USA  PATRIOT Act and hereby notifies each Loan Party that pursuant to the requirements of the USA PATRIOT  Act, it is required to obtain, verify and record information that identifies such Loan Party, which information  includes the name and address of such Loan Party and other information that will allow the Lender to  identify such Loan Party in accordance with the USA PATRIOT Act.         SECTION 8.16   Disclosure.  Each Loan Party hereby acknowledges and agrees that the Lender  and/or  its  Affiliates  from  time  to  time  may  hold  investments  in,  make  other  loans  to  or  have  other  relationships with, any of the Loan Parties and their respective Affiliates.          SECTION 8.17   Interest Rate Limitation.  Notwithstanding anything herein to the contrary, if  at any time the interest rate applicable to any Loan, together with all fees, charges and other amounts which  are treated as interest on such Loan under applicable law (collectively the “Charges”), shall exceed the  maximum lawful rate (the “Maximum Rate”) which may be contracted for, charged, taken, received or  reserved by the Lender holding such Loan in accordance with applicable law, the rate of interest payable in  respect of such Loan hereunder, together with all Charges payable in respect thereof, shall be limited to the  Maximum Rate and, to the extent lawful, the interest and Charges that would have been payable in respect  of such Loan but were not payable as a result of the operation of this Section shall be cumulated and the  interest and Charges payable to the Lender in respect of other Loans or periods shall be increased (but not  above  the  Maximum  Rate  therefor)  until such  cumulated  amount, together  with  interest thereon  at the  NYFRB Rate to the date of repayment, shall have been received by the Lender.         SECTION 8.18   No Fiduciary Duty, etc.                (a)   Each Borrower  acknowledges  and  agrees,  and  acknowledges  its  Subsidiaries’  understanding, that the Lender will not have any obligations except those obligations expressly set forth  herein and in the other Loan Documents and the Lender is acting solely in the capacity of an arm’s length  contractual  counterparty  to  the  Borrowers with  respect  to  the  Loan  Documents  and  the  transactions  contemplated herein and therein and not as a financial advisor or a fiduciary to, or an agent of, the Borrowers  or any other person.  Each Borrower agrees that it will not assert any claim against the Lender based on an  alleged breach of fiduciary duty by the Lender in connection with this Agreement and the transactions  contemplated hereby.  Additionally, each Borrower acknowledges and agrees that the Lender is not advising  the  Borrowers as  to  any  legal,  tax,  investment,  accounting,  regulatory  or  any  other  matters  in  any  jurisdiction.  The  Borrowers shall  consult  with its  own  advisors  concerning  such  matters  and  shall  be  responsible for making its own independent investigation and appraisal of the transactions contemplated  herein or in the other Loan Documents, and the  Lender shall have  no responsibility or liability to any  Borrower with respect thereto.               (b)   Each Borrower  further  acknowledges  and  agrees,  and  acknowledges  its  Subsidiaries’ understanding,  that  the  Lender,  together  with  its  Affiliates,  is  a  full  service securities  or  banking firm engaged in securities trading and brokerage activities as well as providing investment banking  and other financial services.  In the ordinary course of business, the Lender may provide investment banking  and  other  financial  services  to,  and/or  acquire,  hold  or  sell,  for  its  own  accounts  and  the  accounts  of  customers,  equity,  debt  and  other  securities  and  financial  instruments  (including  bank  loans  and  other  obligations) of, the Borrowers and other companies with which the Borrowers may have commercial or                                          83 

 

                                                                                                                                                                                                                                           other relationships.  With respect to any securities and/or financial instruments so held by the Lender or  any of its customers, all rights in respect of such securities and financial instruments, including any voting  rights, will be exercised by the holder of the rights, in its sole discretion.               (c)   In  addition,  each Borrower  acknowledges  and  agrees,  and  acknowledges  its  Subsidiaries’ understanding, that the  Lender and its Affiliates  may be  providing debt financing, equity  capital or other services (including financial advisory services) to other companies in respect of which the  Borrowers may have conflicting interests regarding the transactions described herein and otherwise.  The  Lender will not use confidential information obtained from any Borrower by virtue of the transactions  contemplated by the Loan Documents or its other relationships with the Borrowers in connection with the  performance  by the  Lender  of  services  for  other  companies,  and the  Lender will  not furnish  any  such  information to other companies.  Each Borrower also acknowledges that the Lender has no obligation to  use in connection with the transactions contemplated by the Loan Documents, or to furnish to any Borrower,  confidential information obtained from other companies.          SECTION 8.19   Marketing Consent.  The Borrowers hereby authorize the Lender, at its sole  expense, but without any prior approval by any Borrower, to publish such tombstones and give such other  publicity to this Agreement as it may from time to time determine in its sole discretion.  The foregoing  authorization shall remain in effect unless the Borrower Representative notifies the Lender in writing that  such authorization is revoked.                                    ARTICLE IX                                   Loan Guaranty          SECTION 9.01   Guaranty.  Each Loan Guarantor hereby agrees that it is jointly and severally  liable for, and, as a primary obligor and not merely as surety, absolutely and unconditionally and irrevocably  guarantees  to  the  Secured  Parties,  the  prompt  payment  when  due,  whether  at  stated  maturity,  upon  acceleration or otherwise, and at all times thereafter, of the Secured Obligations and all costs and expenses  including, without limitation, all court costs and reasonable and documented attorneys’ and paralegals’ fees  and  expenses  paid or  incurred  by  the  Lender  in  endeavoring  to  collect  all  or  any  part  of  the  Secured  Obligations from, or in prosecuting any action against, any Borrower, any Loan Guarantor or any other  guarantor of all or any part of the Secured Obligations (such costs and expenses, together with the Secured  Obligations,  collectively  the “Guaranteed  Obligations”); provided, however,  that  the  definition  of  “Guaranteed Obligations” shall not create any guarantee by any Loan Guarantor of (or grant of security  interest by any Loan Guarantor to support, as applicable) any Excluded Swap Obligations of such Loan  Guarantor for purposes of determining any obligations of any Loan Guarantor. Each Loan Guarantor further  agrees that the Guaranteed Obligations may be extended or renewed in whole or in part without notice to  or further assent from it, and that it remains bound upon its guarantee notwithstanding any such extension  or renewal. Notwithstanding anything to the contrary in any Loan Document, (i) the Swiss Borrower shall  not be obligated to repay any Obligations of the Company or any Guarantor that is a Domestic Subsidiary,  and  no  Collateral  of  the  Swiss  Borrower  shall  secure  or  be  deemed  to  secure  any  Obligations  of  the  Company or  any  Guarantor  that  is  a  Domestic Subsidiary,  and  (ii)  the  parties  to  this  Agreement  acknowledge and agree that the Obligations of each Borrower are separate obligations, and nothing herein  or  in  the  other  Loan  Documents  shall  be  construed  or  interpreted  to  cause  the  Swiss  Borrower  to  be  considered a pledgor or guarantor of any Obligations of the Company or any Guarantor that is a Domestic  Subsidiary pursuant to Section 956(d) of the Code and the Treasury Regulations thereunder, including by  reason of Section 1.956-2(c) of the Treasury Regulations.  All terms of this Loan Guaranty apply to and  may be enforced by or on behalf of any domestic or foreign branch or Affiliate of the Lender that extended  any portion of the Guaranteed Obligations.                                          84 

 

                                                                                                                                                                                                                                                 SECTION 9.02   Guaranty of Payment.  This Loan Guaranty is a guaranty of payment and not of  collection. Each Loan Guarantor waives to the fullest extent permitted by applicable law any right to require  the Lender to sue any Borrower, any other Loan Guarantor, any other guarantor of, or any other Person  obligated for all or any part of the Guaranteed Obligations (each, an “Obligated Party”), or otherwise to  enforce its payment against any collateral securing all or any part of the Guaranteed Obligations.         SECTION 9.03   No Discharge or Diminishment of Loan Guaranty.                 (a)   Except as otherwise provided for herein, the obligations of each Loan Guarantor  hereunder  are  unconditional  and  absolute  and  not  subject  to  any  reduction,  limitation,  impairment  or  termination for any reason (other than the Payment in Full of the Guaranteed Obligations), including:  (i)  any claim of waiver, release, extension, renewal, settlement, surrender, alteration, or compromise of any of  the Guaranteed Obligations, by operation of law or otherwise; (ii) any change in the corporate existence,  structure or ownership of any Borrower or any other Obligated  Party liable for any of the  Guaranteed  Obligations;  (iii)  any  insolvency,  bankruptcy,  reorganization  or  other  similar  proceeding  affecting  any  Obligated Party, or their assets, or any resulting release or discharge of any obligation of any Obligated  Party; or (iv) the existence of any claim, setoff or other rights which any Loan Guarantor may have at any  time against any Obligated Party, the Lender or any other Person, whether in connection herewith or in any  unrelated transactions.                 (b)   The obligations of each Loan Guarantor hereunder are not subject to any defense  or setoff, counterclaim, recoupment, or termination whatsoever by reason of the invalidity, illegality, or  unenforceability of any of the Guaranteed Obligations or otherwise, or any provision of applicable law or  regulation purporting to prohibit payment by any Obligated Party, of the Guaranteed Obligations or any  part thereof.                 (c)   Further, the obligations of any Loan Guarantor hereunder are not discharged or  impaired or otherwise affected by: (i) the failure of the Lender to assert any claim or demand or to enforce  any remedy with respect to all or any part of the Guaranteed Obligations; (ii) any waiver or modification  of or supplement to any provision of any agreement relating to the Guaranteed Obligations; (iii) any release,  non-perfection, or invalidity of any indirect or direct security for the obligations of any Borrower for all or  any part of the Guaranteed Obligations or any obligations of any other Obligated Party liable for any of the  Guaranteed Obligations; (iv) any action or failure to act by the Lender with respect to any collateral securing  any part of the Guaranteed Obligations; or (v) any default, failure or delay, willful or otherwise, in the  payment or performance of any of the Guaranteed Obligations, or any other circumstance, act, omission or  delay that might in any manner or to any extent vary the risk of such Loan Guarantor or that would otherwise  operate as a discharge of any Loan Guarantor as a matter of law or equity (other than the Payment in Full  of the Guaranteed Obligations).           SECTION 9.04   Defenses Waived.  To the fullest extent permitted by applicable law, each Loan  Guarantor hereby waives any defense based on or arising out of any defense of any Borrower or any Loan  Guarantor or the unenforceability of all or any part of the Guaranteed Obligations from any cause, or the  cessation from any cause of the liability of any Borrower, any Loan Guarantor or any other Obligated Party,  other  than  the Payment  in  Full of  the  Guaranteed  Obligations.  Without  limiting  the  generality  of  the  foregoing, each Loan Guarantor irrevocably waives acceptance hereof, presentment, demand, protest and, to  the fullest extent permitted by law, any notice not provided for herein, as well as any requirement that at any  time any action be taken by any Person against any Obligated Party, or any other Person.  Each Loan Guarantor  confirms that it is not a surety under any state law and shall not raise any such law as a defense to its obligations  hereunder.  The Lender may, at its election, foreclose on any Collateral held by it by one or more judicial  or nonjudicial sales, accept an assignment of any such Collateral in lieu of foreclosure or otherwise act or                                          85 

 

                                                                                                                                                                                                                                           fail to act with respect to any collateral securing all or a part of the Guaranteed Obligations, compromise or  adjust any part of the Guaranteed Obligations, make any other accommodation with any Obligated Party or  exercise any other right or remedy available to it against any Obligated Party, without affecting or impairing  in  any  way  the  liability  of  such  Loan  Guarantor  under  this  Loan  Guaranty, except  to  the  extent  the  Guaranteed Obligations have been Paid in Full.  To the fullest extent permitted by applicable law, each  Loan Guarantor waives any defense arising out of any such election even though that election may operate,  pursuant to applicable law, to impair or extinguish any right of reimbursement or subrogation or other right  or remedy of any Loan Guarantor against any Obligated Party or any security.         SECTION 9.05   Rights of Subrogation.  No Loan Guarantor will assert any right, claim or cause  of action, including, without limitation, a claim of subrogation, contribution or indemnification that it has  against any Obligated Party, or any collateral, until the Loan Parties and the Loan Guarantors have fully  performed all their obligations to the Lender.          SECTION 9.06   Reinstatement; Stay of Acceleration.  If at any time any payment of any portion  of the Guaranteed Obligations (including a payment effected through exercise of a right of setoff) is rescinded  or must otherwise be restored or returned upon the insolvency, bankruptcy, or reorganization of any Borrower  or otherwise (including pursuant to any settlement entered into by a Secured Party in its discretion), each Loan  Guarantor’s obligations under this Loan Guaranty with respect to that payment shall be reinstated at such time  as though the payment had not been  made and  whether or not the Lender is in possession of this Loan  Guaranty. If acceleration of the time for payment of any of the Guaranteed Obligations is stayed upon the  insolvency, bankruptcy or reorganization of any Borrower, all such amounts otherwise subject to acceleration  under the terms of any agreement relating to the Guaranteed Obligations shall nonetheless be payable by the  Loan Guarantors forthwith on demand by the Lender.         SECTION 9.07   Information.  Each Loan Guarantor assumes all responsibility for being and  keeping itself informed of the Borrowers’ financial condition and assets, and of all other circumstances  bearing upon the risk of nonpayment of the Guaranteed Obligations and the nature, scope and extent of the  risks that each Loan Guarantor assumes and incurs under this Loan Guaranty, and agrees that the Lender  shall not have  any  duty  to  advise  any  Loan  Guarantor  of  information  known  to  it  regarding  those  circumstances or risks.         SECTION 9.08   Termination.  The Lender may continue to make loans or extend credit to the  Borrowers based on this Loan Guaranty until 5 days after it receives written notice of termination from any  Loan Guarantor.  Notwithstanding receipt of any such notice, each Loan Guarantor will continue to be  liable to the Lender for any Guaranteed Obligations created, assumed or committed to prior to the fifth day  after receipt of the notice, and all subsequent renewals, extensions, modifications and amendments with  respect to, or substitutions for, all or any part of such Guaranteed Obligations.  Nothing in this Section 9.08  shall be deemed to constitute a waiver of, or eliminate, limit, reduce or otherwise impair any rights or  remedies the Lender may have in respect of, any Default or Event of Default that shall exist under clause  (o) of Article VII hereof as a result of any such notice of termination.         SECTION 9.09   Taxes.  Each payment of the Guaranteed Obligations will be made by each  Loan Guarantor without withholding for any Taxes, unless such withholding is required by law.  If any  Loan Guarantor determines, in its sole discretion exercised in good faith, that it is so required to withhold  Taxes, then such Loan Guarantor may so withhold and shall timely pay the full amount of withheld Taxes  to the relevant Governmental Authority in accordance with applicable law.  If such Taxes are Indemnified  Taxes, then the amount payable by such Loan Guarantor shall be increased as necessary so that, net of such  withholding for  Indemnified  Taxes (including  such  withholding for  Indemnified  Taxes applicable  to                                          86 

 

                                                                                                                                                                                                                                           additional amounts payable under this Section), the Lender receives the amount it would have received had  no such withholding for Indemnified Taxes been made.         SECTION 9.10   Maximum  Liability.  Notwithstanding  any  other  provision  of  this Loan  Guaranty, the amount guaranteed by each Loan Guarantor hereunder shall be limited to the extent, if any,  required  so  that  its  obligations  hereunder  shall  not  be  subject  to  avoidance  under  Section  548  of  the  Bankruptcy  Code  or  under  any  applicable state Uniform  Fraudulent Transfer Act,  Uniform  Fraudulent  Conveyance Act, Uniform Voidable Transactions Act or similar statute or common law.  In determining  the  limitations,  if  any,  on  the  amount  of  any Loan Guarantor’s  obligations  hereunder  pursuant  to  the  preceding sentence, it is the intention of the parties hereto that any rights of subrogation, indemnification  or contribution which such Loan Guarantor may have under this Loan Guaranty, any other agreement or  applicable law shall be taken into account.         SECTION 9.11   Contribution.                 (a)   To  the  extent  that  any  Loan  Guarantor  shall  make  a  payment  under  this  Loan  Guaranty (a “Guarantor Payment”) which, taking into account all other Guarantor Payments then previously  or concurrently made by any other Loan Guarantor, exceeds the amount which otherwise would have been  paid by or attributable to such Loan Guarantor if each Loan Guarantor had paid the aggregate Guaranteed  Obligations  satisfied  by  such  Guarantor  Payment  in  the  same  proportion  as  such  Loan  Guarantor’s  Allocable Amount, as defined below (as determined immediately prior to such Guarantor Payment), bore  to the aggregate Allocable Amounts of each of the Loan Guarantors as determined immediately prior to the  making of such Guarantor Payment, then, following indefeasible payment in full in cash of the Guarantor  Payment, the Payment in Full of the Guaranteed Obligations and the termination of this Agreement, such  Loan  Guarantor  shall  be  entitled  to  receive  contribution  and  indemnification  payments  from,  and  be  reimbursed  by,  each  other  Loan  Guarantor  for  the  amount  of  such  excess,  pro  rata  based  upon  their  respective Allocable Amounts in effect immediately prior to such Guarantor Payment.               (b)   As of any date of determination, the “Allocable Amount” of any Loan Guarantor  shall be equal to the excess of the fair saleable value of the property of such Loan Guarantor over the total  liabilities of such Loan Guarantor (including the maximum amount reasonably expected to become due in  respect of contingent liabilities, calculated, without duplication, assuming each other Loan Guarantor that  is also liable for such contingent liability pays its ratable share thereof), giving effect to all payments made  by other Loan Guarantors as of such date in a manner to maximize the amount of such contributions.               (c)   This  Section  9.11 is  intended  only  to  define  the  relative  rights  of  the Loan  Guarantors, and nothing set forth in this Section 9.11 is intended to or shall impair the obligations of the  Loan Guarantors, jointly and severally, to pay any amounts as and when the same shall become due and  payable in accordance with the terms of this Loan Guaranty.               (d)   The parties hereto acknowledge that the rights of contribution and indemnification  hereunder shall constitute assets of the Loan Guarantor or Loan Guarantors to which such contribution and  indemnification is owing.               (e)   The rights of the indemnifying Loan Guarantors against other Loan Guarantors  under this Section 9.11 shall be exercisable upon the Payment in Full of the Guaranteed Obligations and  the termination of this Agreement.         SECTION 9.12   Liability Cumulative.  The liability of each Loan Party as a Loan Guarantor  under this Article IX is in addition to and shall be cumulative with all liabilities of each Loan Party to the                                          87 

 

                                                                                                                                                                                                                                           Lender under this Agreement and the other Loan Documents to which such Loan Party is a party or in  respect of any obligations or liabilities of the other Loan Parties, without any limitation as to amount, unless  the instrument or agreement evidencing or creating such other liability specifically provides to the contrary.         SECTION 9.13   Keepwell.   Each  Qualified  ECP  Guarantor  hereby  jointly  and  severally  absolutely, unconditionally and irrevocably undertakes to provide such funds or other support as may be  needed from time to time by each other Loan Party to honor all of its obligations under this Guarantee in  respect of a Swap Obligation (provided, however, that each Qualified ECP Guarantor shall only be liable  under this Section 9.13 for the maximum amount of such liability that can be hereby incurred without  rendering its obligations under this Section 9.13 or otherwise under this Loan Guaranty voidable under  applicable law relating to fraudulent conveyance or fraudulent transfer, and not for any greater amount).   Except as otherwise provided herein, the obligations of each Qualified ECP Guarantor under this Section  9.13 shall remain in full force and effect until the termination of all Swap Obligations.  Each Qualified ECP  Guarantor intends that this Section 9.13 constitute, and this Section 9.13 shall be deemed to constitute, a  “keepwell, support, or other agreement” for the benefit of each other Loan Party for all purposes of Section  1a(18)(A)(v)(II) of the Commodity Exchange Act.                                     ARTICLE X                             The Borrower Representative.         SECTION 10.01  Appointment; Nature of Relationship.  The Company is hereby appointed by  each of the Borrowers as its contractual representative (herein referred to as the “Borrower Representative”)  hereunder and under each other Loan Document, and each of the Borrowers irrevocably authorizes the  Borrower Representative to act as the contractual representative of such Borrower with the rights and duties  expressly set forth herein and in the other Loan Documents.  The Borrower Representative agrees to act as  such contractual representative upon the express conditions contained in this Article X.  Additionally, the  Borrowers hereby appoint the Borrower Representative as their agent to receive all of the proceeds of the  Loans in the Funding Account, at which time the Borrower Representative shall promptly disburse such  Loans to the appropriate Borrower(s), provided that, in the case of a Revolving Loan, such amount shall  not  exceed  the  Aggregate  Availability  or  the  Availability  of  such  Borrower(s).   The  Lender,  and its  respective officers, directors, agents or employees, shall not be liable to the Borrower Representative or  any Borrower for any action taken or omitted to be taken by the Borrower Representative or the Borrowers  pursuant to this Section 10.01.         SECTION 10.02  Powers.  The  Borrower  Representative  shall  have  and  may  exercise  such  powers under the Loan Documents as are specifically delegated to the Borrower Representative by the  terms  of  each  thereof,  together  with  such  powers  as  are  reasonably  incidental  thereto.   The  Borrower  Representative shall have no implied duties to the Borrowers or any obligation to the Lender to take any  action  thereunder  except  any  action  specifically  provided  by  the  Loan  Documents  to  be  taken  by  the  Borrower Representative.         SECTION 10.03  Employment of Agents.  The Borrower Representative may execute any of its  duties  as  the  Borrower  Representative  hereunder  and  under  any  other  Loan  Document  by  or  through  authorized officers.         SECTION 10.04  Notices.  Each Borrower shall immediately notify the Borrower Representative  of the occurrence of any Default or Event of Default hereunder, shall refer to this Agreement, shall describe  such Default or Event of Default, and shall state that such notice is a “notice of default”.  In the event that  the Borrower Representative receives such a notice, the Borrower Representative shall give prompt notice                                          88 

 

                                                                                                                                                                                                                                           thereof to the Lender.  Any notice provided to the Borrower Representative hereunder shall constitute notice  to each Borrower on the date received by the Borrower Representative.         SECTION 10.05  Successor Borrower Representative.  Upon the prior written consent of the  Lender, the Borrower Representative may resign at any time, such resignation to be effective upon the  appointment of a successor Borrower Representative.           SECTION 10.06  Execution of Loan Documents; Borrowing Base Certificate.  The Borrowers  hereby empower and authorize the Borrower Representative, on behalf of the Borrowers, to execute and  deliver  to  the  Lender  the  Loan  Documents  and  all  related agreements,  certificates,  documents,  or  instruments as shall be necessary or appropriate to effect the purposes of the Loan Documents, including  the Borrowing Base Certificate and the Compliance Certificates.  Each Borrower agrees that any action  taken by the Borrower Representative or the Borrowers in accordance with the terms of this Agreement or  the other Loan Documents, and the exercise by the Borrower Representative of its powers set forth therein  or herein, together with such other powers that are reasonably incidental thereto, shall be binding upon all  of the Borrowers.         SECTION 10.07  Reporting.  Each  Borrower  hereby agrees  that  such  Borrower shall  furnish  promptly after each fiscal month to the Borrower Representative a copy of its Borrowing Base Certificate  and any other certificate or report required hereunder or requested by the Borrower Representative on which  the  Borrower  Representative  shall rely  to  prepare the Borrowing  Base  Certificate  and the Compliance  Certificate required pursuant to the provisions of this Agreement.                                    ARTICLE XI                             Limitations for Swiss Borrower.         SECTION 11.01  Limitations for Swiss Borrower               (a)   Notwithstanding anything to the contrary in this Agreement or in any other Loan  Document, the fulfilment of any obligation of, and the application of proceeds from the enforcement of any  guaranty (including the  Loan  Guaranty) or security interest granted  by, the  Swiss Borrower under this  Agreement  or  under  any  other  Loan  Document  (including  the  Swiss  Collateral  Documents)  to  satisfy  obligations of another Loan Party (other than obligations of any of the Swiss Borrower’s wholly-owned  Subsidiaries) (“Restricted Obligations”) shall be limited to the maximum amount permitted by law at the  time of fulfilment or enforcement (as the case may be) (“Limitation”).               (b)   The  Limitation  shall  not release the  Swiss  Borrower  from  the  fulfilment  of its  obligations or the application of enforcement proceeds in excess of the Limitation, but merely postpone the  performance date thereof until such time as it is again permitted notwithstanding the Limitation.  The Swiss  Borrower shall take all action and cause all action to be taken to enable the fulfilment of its obligations or  the  application  of  enforcement  proceeds  as  soon  as  possible  and  in  an  amount  as  large  as  possible  notwithstanding the Limitation.  In particular, to the extent permitted by law and Swiss accounting standards  and upon request by the Lender, the Swiss Borrower shall:                     (i)   write up or sell any of its assets that are shown in its balance sheet with a        book value that is significantly lower than the market value of the assets, in case of a sale, however,        only if such assets are not necessary for the Swiss Borrower’s business (nicht betriebsnotwendig);        and                     (ii)  reduce its quota capital to the minimum allowed under then applicable law.                                          89 

 

                                                                                                                                                                                                                                                       (c)   To the extent that the fulfilment of any obligation or the application of proceeds  from the enforcement of any guaranty or security interest to satisfy Restricted Obligations are subject to  Swiss Withholding Tax, the Swiss Borrower:                     (i)   shall  (A)  use its  best  efforts  to  procure  that  the  fulfilment  of  such        obligation or the application of such enforcement proceeds can be made without deduction of Swiss        Withholding Tax by discharging the liability of such tax by notification pursuant to applicable law        rather than payment of the tax; (B) if the notification procedure pursuant to sub-paragraph (A)        above does not apply, deduct the Swiss Withholding Tax at such rate (x) as in force from time to        time or (y) as provided by any applicable double tax treaties, from the respective amount to be paid        and  promptly  pay  any  such  Swiss  Withholding  Tax  deducted  to  the  Swiss  Federal  Tax        Administration; and (C) provide the Lender with evidence that such a notification of the Swiss        Federal Tax Administration has been made or, as the case may be, such Swiss Withholding Tax        deducted has been paid to the Swiss Federal Tax Administration;                     (ii)  shall use its best efforts to procure that any person who is entitled to a full        or partial refund of the Swiss Withholding Tax deducted pursuant to this paragraph (c) (A) requests        a refund of the Swiss Withholding Tax under applicable law as soon as possible; and (B) pays to        the Lender upon receipt any amount so refunded to cover any outstanding part of the Restricted        Obligation;                     (iii) notwithstanding anything to the contrary in any Loan Document, shall not        be required to gross up, indemnify or hold harmless any Secured Party for the deduction of Swiss        Withholding Tax in an amount exceeding the Limitation, provided that this should not in any way        limit any obligations of any other Loan Party under the Loan Documents to indemnify the Secured        Parties in respect of the deduction of the Swiss Withholding Tax.                                  [Signature Page Follows]                                          90 

 

                                                                                      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by  their respective authorized officers as of the day and year first above written.                                              HARMONIC INC.                                             By:                                                                                   Name: Sanjay Kalra                                                  Title: Chief Financial Officer                                             HARMONIC INTERNATIONAL GmbH                                             By:                                                                                   Name:  Sanjay Kalra                                                  Title: Managing Officer                                                                                             [Signature Page to Credit Agreement] 

 

                                                                                                       JPMORGAN CHASE BANK, N.A.                                              By:                                                                                   Name: Eleftherios Karsos                                                  Title: Authorized Officer                                                                                                                                                                                                                                                [Signature Page to Credit Agreement]                                          

 

                                                                                                                                                                                    EXHIBIT A                                             BORROWING BASE CERTIFICATE                                                                                                                        BORROWING BASE REPORT  Borrower:                                                                       Rpt #                                  Obligor Number:                                                                 Date:                  Loan Number:                                                                    Period Covered:___________ to ________________             COLLATERAL CATEGORY                        A/R          Inventory    Total Eligible Collateral                                             Description                                                                               1  Beginning balance (previous report - Line 8)                          2  Additions to Collateral (gross sales or purchases)                    3  Other additions (add back any non-A/R cash in line 3)                 4  Deductions to Collateral (Cash Received)                              5  Deductions to Collateral (Discounts, other)                           6  Deductions to Collateral (Credit Memos, all)                          7  Other non-cash credits to A/R                                         8  Total Ending Collateral Balance                                       9  Less Ineligible – past due                                            10 Less Ineligible – cross-age (30%)                                     11 Less Ineligible – foreign                                             12 Less Ineligible – Contra                                              13 Less Ineligible – Other (attached schedule)                           14 Total Ineligibles –Accounts Receivable                                15 Less Ineligible – inventory slow-moving                               16 Less Ineligible – inventory offsite not covered                       17 Less Ineligible – inventory work-in-process                           18 Less Ineligible – Consigned                                           19 Less Ineligible – Other (attached schedule)                           20 Total Ineligibles Inventory                                           21 Total Eligible Collateral                                             22 Advance Rate Percentage                            85%            50%  23 Net Available - Borrowing Base Value                                  24 Reserves                                                              25 Total Borrowing Base Value                                            26 Revolver Line                                                                Total Revolver Line             $25,000,000  27 Maximum Borrowing Limit (Lesser of 25 or 26)*                                Total Available                                           LOAN STATUS                                                                              28 Previous Loan Balance (Previous Report Line 31)                       29 Less:  A.  Net Collections (Same as line 4)                                          B.  Adjustments/Other _______________  30 Add:  A.  Request for Funds                                                          B.  Adjustments/Other _______________  31 New Loan Balance                                                      32 Letter of Credit outstanding                                          33 Availability Not Borrowed (Lines 27 less 31 & 32)                                                                                                     Total New Loan Balance:                                                                   

 

                                                                                                                                                                                           BORROWING BASE REPORT  Borrower:                                                                       Rpt #                                  Obligor Number:                                                                 Date:                  Loan Number:                                                                    Period Covered:___________ to ________________             COLLATERAL CATEGORY                        A/R          Inventory    Total Eligible Collateral                                             Description                                                                               1  Beginning balance (previous report - Line 8)                          2  Additions to Collateral (gross sales or purchases)                    3  Other additions (add back any non-A/R cash in line 3)                 4  Deductions to Collateral (Cash Received)                              5  Deductions to Collateral (Discounts, other)                           6  Deductions to Collateral (Credit Memos, all)                          7  Other non-cash credits to A/R                                         8  Total Ending Collateral Balance                                       9  Less Ineligible – past due                                            10 Less Ineligible – cross-age (30%)                                     11 Less Ineligible – foreign                                             12 Less Ineligible – Contra                                              13 Less Ineligible – Other (attached schedule)                           14 Total Ineligibles –Accounts Receivable                                15 Less Ineligible – inventory slow-moving                               16 Less Ineligible – inventory offsite not covered                       17 Less Ineligible – inventory work-in-process                           18 Less Ineligible – Consigned                                           19 Less Ineligible – Other (attached schedule)                           20 Total Ineligibles Inventory                                           21 Total Eligible Collateral                                             22 Advance Rate Percentage                             %              %  23 Net Available - Borrowing Base Value                                  24 Reserves                                                              25 Total Borrowing Base Value                                            26 Revolver Line                                                                Total Revolver Line             $25,000,000  27 Maximum Borrowing Limit (Lesser of 25 or 26)*                                Total Available                                                                                                                                                       LOAN STATUS                                                                              28 Previous Loan Balance (Previous Report Line 31)                       29 Less:  A.  Net Collections (Same as line 4)                                          B.  Adjustments/Other _______________  30 Add:  A.  Request for Funds                                                          B.  Adjustments/Other _______________  31 New Loan Balance                                                      32 Letter of Credit outstanding                                          33 Availability Not Borrowed (Lines 27 less 31 & 32)                     34 Borrowing Base (other Borrower)                                              Total New Loan Balance:  35 AGGREGATE BORROWING BASE (lines 25 & 34)                                                     Pursuant to, and in accordance with, the terms and provisions of that certain Credit Agreement dated as of [●] (as it may be amended or modified from time to time, the “Credit  Agreement”) among Harmonic Inc. and Harmonic International GmbH (the “Borrowers”), the other Loan Parties, and JPMorgan Chase Bank, N.A., as Lender, the Borrowers  are executing and delivering to Lender this Borrowing Base Certificate accompanied by supporting data (collectively referred to as the “Report”).  The Borrowers represent  and warrant to Lender that this Report is true and correct, and is based on information contained in Borrowers’ own financial accounting records.  The Borrowers, by the  Borrower Representative’s execution of this Report, hereby ratify, confirm and affirm all of the terms, conditions and provisions of the Credit Agreement and certify on this  ________ day of ___________, 20__ that the Borrowers are in compliance with the Credit Agreement.  Unless otherwise defined herein, capitalized terms used herein have  the meanings ascribed thereto in the Credit Agreement.    BORROWER REPRESENTATIVE’S NAME:                                  AUTHORIZED SIGNATURE:                 

 

                                                                                                               EXHIBIT B                            COMPLIANCE CERTIFICATE    To:   JPMorgan Chase Bank, N.A.           This  Compliance  Certificate (this “Certificate”),  for  the  period  ended  _______  __,  20__, is  furnished pursuant to that certain Credit Agreement dated as of [●] (as amended, modified, renewed or  extended from time to time, the “Credit Agreement”) among Harmonic Inc. and Harmonic International  GmbH (collectively, the “Borrowers”), the other Loan Parties, and JPMorgan Chase Bank, N.A., as Lender.   Unless  otherwise  defined herein,  capitalized  terms  used  in  this  Certificate  have  the meanings  ascribed  thereto in the Credit Agreement.          THE UNDERSIGNED HEREBY CERTIFIES THAT:          1.    I am the                        of the Borrower Representative and I am authorized to deliver this  Certificate on behalf of the Borrowers and their Subsidiaries;         2.    I have reviewed the terms of the Credit Agreement and I have made, or have caused to be  made under my supervision, a detailed review of the compliance of the Borrowers and their Subsidiaries  with  the  Agreement during  the  accounting  period  covered  by  the  attached  financial  statements (the  “Relevant Period”);         3.    The attached financial statements of the Borrowers and, as applicable, their Subsidiaries  and/or Affiliates for the Relevant Period: (a) have been prepared on an accounting basis (the “Accounting  Method”) consistent with the requirements of the Credit Agreement and, except as may have been otherwise  expressly agreed to in the Credit Agreement, in accordance with GAAP consistently applied, and (b) to the  extent that the attached are not the Borrowers’ annual fiscal year end statements, are subject to normal year- end audit adjustments and the absence of footnotes;         4.    The examinations described in paragraph 2 did not disclose and I have no knowledge of,  except as set forth below, (a) the existence of any condition or event which constitutes a Default or an Event  of Default under the Credit Agreement or any other Loan Document during or at the end of the Relevant  Period or as of the date of this Certificate or (b) any change in the Accounting Method or in the application  thereof  that  has  occurred  since  the  date  of  the  annual  financial  statements  delivered  to  the  Lender  in  connection with the closing of the Credit Agreement or subsequently delivered as required in the Credit  Agreement;         5.    I hereby certify that, except as set forth below, no Loan Party has changed (i) its name, (ii)  its chief executive office, (iii) its principal place of business, (iv) the type of entity it is or (v) its state of  incorporation  or  organization  without  having  given  the Lender the  notice  required  by  the  Security  Agreement;         6.    The representations and warranties of the Loan Parties set forth in the Loan Documents are  true  and  correct  in  all  material  respects  as  of  the  date  hereof,  except  (i) to  the  extent  that  any  such  representation or warranty specifically refers to an earlier date, in which case it is true and correct in all  material respects only as of such earlier date, and (ii) that any representation or warranty which is subject  to any materiality qualifier is true and correct in all respects;         7.    Schedule  I attached  hereto  sets  forth  financial  data  and  computations evidencing  the  Borrowers’ compliance with certain covenants of the Credit Agreement, all of which data and computations  are true, complete and correct;     

 

                                                                                   8.    Schedule II attached hereto sets forth all copyrights, trademarks and patents, letter-of-credit  rights and commercial tort claims acquired by the Loan Parties since the [Effective Date][delivery of the  last Compliance Certificate submitted pursuant to the Credit Agreement], as required by Sections 4.7, 4.8  and 4.9 of the Security Agreement; and         9.    Described below are the exceptions, if any, referred to in paragraph 4 hereof by listing, in  detail, the (i) nature of the condition or event, the period during which it has existed and the action which  the Borrowers have taken, are taking, or propose to take with respect to each such condition or event or (ii)  change in the Accounting Method or the application thereof and the effect of such change on the attached  financial statements:                                                                                                                                                                                                                                                       The foregoing certifications, together with the computations set forth in Schedule I and the financial  statements delivered with this Certificate in support hereof, are made and delivered this      day of               ,         .                                       HARMONIC INC.,                                      as the Borrower Representative                                         By:                                                                             Name:                                            Title:    

 

                                                                                                          Schedule I to Compliance Certificate                                                                    Compliance as of _________, ____ with                      Provisions of Section 6.12 of the Credit Agreement          (d)   Liquidity.  The Company shall have Liquidity of not less than $20,000,000 as of the end  of each fiscal quarter of the Company.            Total cash                                                $           Permitted Investments                                     $           Aggregate Availability                                    $           Liquidity                                                 $               Compliance as of the compliance test date shown above:      [__] Yes     [__] No         (e)   Minimum EBITDA.  The Company shall have EBITDA, determined as of the end of each  fiscal quarter of the Company for the period of the four consecutive fiscal quarters ending on such date, of  not less than $1.            Net Income                                                $           plus Interest Expense                                     $           plus income tax expense                                   $           plus depreciation expense                                 $           plus amortization expense                                 $           plus non-cash stock compensation and other non-cash       $           expenses, rents and operating lease expenses           plus extraordinary, unusual or non-recurring items        $           plus (A) transition, integration, business optimization and $           similar fees, charges and expenses related to acquisitions and           business combinations and (B) restructuring, discontinued           operations or similar charges, in each case to the extent           permitted under the Loan Documents and in an amount in the           aggregate, for this addback and the addback above, not to           exceed 15% of EBITDA (prior to giving effect to any           adjustments or add backs)           plus transaction costs associated with the Credit Agreement $           not to exceed $240,000           plus any net gain realized upon the sale or other disposition of $           any asset or disposed operations (including pursuant to any           Sale and Leaseback Transaction) which is not sold or           otherwise disposed of in the ordinary course of business, to the           extent such sale or disposition is permitted under the Loan           Documents           minus  any cash payments made during such period in respect $           of non-cash charges described above taken in a prior period           minus extraordinary gains and any non-cash items of income $           TOTAL (EBITDA)                                            $               Compliance as of the compliance test date shown above:      [__] Yes     [__] No     

 

         (f)   Adjusted Quick Ratio.  The Company will not permit the Adjusted Quick Ratio, determined  on the last day of each fiscal quarter of the Company, to be less than 1.10 to 1.00.            (A)   Quick Assets                                        $           (B)   Current liabilities                                 $                  Minus current portion of deferred revenue          $                  Minus current portion of Convertible Notes         $                  Minus current portion of operating lease liability $                 Total (B)                                           $           Adjusted Quick Ratio [(A) ÷ (B)]                 ____ to 1.00               Compliance as of the compliance test date shown above:      [__] Yes     [__] No       

 

                                                                                                                   EXHIBIT C                               JOINDER AGREEMENT                                                 THIS JOINDER AGREEMENT (this “Agreement”), dated as of [    ], is entered into between  ________________________________, a _________________ (the “New Subsidiary”) and JPMORGAN  CHASE BANK, N.A. (the “Lender”) under that certain Credit Agreement dated as of [●] (as the same may  be amended, modified, extended or restated from time to time, the “Credit Agreement”) among Harmonic  Inc. and Harmonic International GmbH (the “Borrowers”), the other Loan Parties party thereto, and the  Lender. All capitalized terms used herein and not otherwise defined herein shall have the meanings set forth  in the Credit Agreement.          The New Subsidiary and the Lender hereby agree as follows:          1.    The New Subsidiary hereby acknowledges, agrees and confirms that, by its execution of  this Agreement, the New Subsidiary will be deemed to be a Loan Party under the Credit Agreement and a  “Loan Guarantor” for all purposes of the Credit Agreement and shall have all of the obligations of a Loan  Party and a Loan Guarantor thereunder as if it had executed the Credit Agreement.  The New Subsidiary  hereby ratifies, as of the date hereof, and agrees to be bound by, all of the terms, provisions and conditions  contained in the Credit Agreement, including without limitation (a) all of the representations and warranties  of the Loan Parties set forth in Article III of the Credit Agreement, (b) all of the covenants set forth in  Articles V and VI of the Credit Agreement and (c) all of the guaranty obligations set forth in Article IX of  the Credit Agreement.  Without limiting the generality of the foregoing terms of this paragraph 1, the New  Subsidiary, subject to the limitations set forth in Section 9.10 and 9.13 of the Credit Agreement, hereby  guarantees, jointly and severally with the other Loan Guarantors, to the Lender, as provided in Article IX  of the Credit Agreement, the prompt payment and performance of the Guaranteed Obligations in full when  due  (whether  at  stated  maturity,  as  a  mandatory  prepayment,  by  acceleration  or  otherwise)  strictly  in  accordance with the terms thereof and agrees that if any of the Guaranteed Obligations are not paid or  performed in full when due (whether at stated maturity, as a mandatory prepayment, by acceleration or  otherwise),  the  New  Subsidiary  will,  jointly  and  severally  together  with  the  other  Loan  Guarantors,  promptly pay and perform the same, without any demand or notice whatsoever, and that in the case of any  extension of time of payment or renewal of any of the Guaranteed Obligations, the same will be promptly  paid  in  full  when  due  (whether  at  extended  maturity,  as  a  mandatory  prepayment,  by  acceleration  or  otherwise) in accordance with the terms of such extension or renewal.         2.    If required, the New Subsidiary is, simultaneously with the execution of this Agreement,  executing  and  delivering  such  Collateral  Documents  (and  such  other  documents  and  instruments)  as  requested by the Lender in accordance with the Credit Agreement.         3.    The address of the New Subsidiary for purposes of Section 8.01 of the Credit Agreement  is as follows:                                                                                                                                                                4.    The New Subsidiary hereby waives acceptance by the Lender of the guaranty by the New  Subsidiary upon the execution of this Agreement by the New Subsidiary.         5.    This Agreement may be executed in any number of counterparts, each of which when so  executed and delivered shall be an original, but all of which together shall constitute one and the same  instrument.                                          1 

 

         6.    THIS  AGREEMENT  AND  THE  RIGHTS  AND  OBLIGATIONS  OF  THE  PARTIES  HEREUNDER  SHALL  BE  GOVERNED  BY  AND  CONSTRUED  AND  INTERPRETED  IN  ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.         IN WITNESS WHEREOF, the New Subsidiary has caused this Agreement to be duly executed by  its authorized officer, and the Lender, has caused the same to be accepted by its authorized officer, as of  the day and year first above written.                                       [NEW SUBSIDIARY]                                       By:                                                                             Name:                                            Title:                                         Acknowledged and accepted:                                       JPMORGAN CHASE BANK, N.A.                                       By:                                                                             Name:                                            Title:                                               2

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