Document:

Exhibit 10.1

 Exhibit 10.1 
 CONFIDENTIAL TREATMENT – REDACTED COPY 
 **CERTAIN INFORMATION IN
THIS EXHIBIT HAS BEEN OMITTED AND HAS 
 BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE 

COMMISSION PURSUANT TO A CONFIDENTIAL TREATMENT REQUEST 
 UNDER 17 C.F.R. SECTIONS 24b-2, 200.80 (B)(4) AND 230.406 
  

 
 AMENDMENT NO.
1 TO LOAN AND SECURITY AGREEMENT 
 This AMENDMENT NO. 1 TO LOAN AND SECURITY AGREEMENT (this “Amendment”)
is entered into as of March 20, 2012, by and among the Lenders identified on the signature pages hereof (such Lenders, together with their respective successors and permitted assigns, are referred to hereinafter each individually as a
“Lender” and collectively as the “Lenders”), BMO HARRIS BANK N.A. (formerly known as Harris N.A.), as administrative agent for the Lenders (in such capacity, “Agent”), POWER SOLUTIONS INTERNATIONAL,
INC., a Delaware corporation (“Parent”), THE W GROUP, INC., a Delaware corporation (“Holdings”), POWER SOLUTIONS, INC., an Illinois corporation (“Power Solutions”), POWER GREAT LAKES, INC., an
Illinois corporation (“Great Lakes”), AUTO MANUFACTURING, INC., an Illinois corporation (“Auto Manufacturing”), TORQUE POWER SOURCE PARTS, INC., an Illinois corporation (“Torque”), POWER PROPERTIES,
L.L.C., an Illinois limited liability company (“Properties”), POWER PRODUCTION, INC., an Illinois corporation (“Production”), POWER GLOBAL SOLUTIONS, INC., an Illinois corporation (“Global”), PSI
INTERNATIONAL, LLC, an Illinois limited liability company (“PSI”) and XISYNC LLC, an Illinois limited liability company (“XISYNC” and together with Parent, Holdings, Power Solutions, Great Lakes, Auto Manufacturing,
Torque, Properties, Production, Global and PSI, individually a “Borrower” and collectively “Borrowers”). 
 WHEREAS, Borrowers, Agent, and the Lenders are parties to that certain Loan and Security Agreement dated as of April 29, 2011 (as amended, modified or supplemented from time to time, the
“Loan Agreement”); and 
 WHEREAS, Borrowers, Agent and the Lenders have agreed to amend the Loan Agreement in
certain respects (including to increase the Revolving Credit Maximum Amount and Total Credit Facility thereunder from $35,000,000 to $50,000,000 and to extend the Term of the Loan Agreement to the date that is 5 years from the date hereof) subject
to the terms and conditions set forth herein. 
 NOW THEREFORE, in consideration of the premises and mutual agreements herein
contained, the parties hereto agree as follows: 
 1. Defined Terms. Unless otherwise defined herein, capitalized terms
used herein shall have the meanings ascribed to such terms in the Loan Agreement. 

 2. Amendments to Credit Agreement. Subject to the satisfaction of the conditions set
forth in Section 6 below and in reliance upon the representations and warranties set forth in Section 7 below, the Credit Agreement is hereby amended as follows: 

(a) Section 1.1 of the Loan Agreement is amended by deleting the defined term “Applicable Inventory Advance Rate”
therefrom in its entirety. 
 (b) Section 1.1 of the Loan Agreement is amended by adding the defined term “Excess
Availability” thereto in its appropriate alphabetical order as follows: 
 Excess Availability –
as of any date of determination, the amount equal to Availability minus the aggregate amount of all then outstanding and unpaid trade payables and obligations of Borrowers which are more than sixty (60) days past due as of the end of the
immediately preceding month or, at Agent’s option, as of a more recent date based on such reports as Agent may from time to time specify. 
 (c) Section 1.1 of the Loan Agreement is amended by adding the defined term “First Amendment Closing Date” thereto in its appropriate alphabetical order as follows: 

First Amendment Closing Date – March 20, 2012. 

(d) Section 1.1 of the Loan Agreement is amended by adding the defined term “Insufficient Liquidity Period” thereto in its
appropriate alphabetical order as follows: 
 Insufficient Liquidity Period – any period beginning on
any date upon which Excess Availability on such date is less than the Liquidity Threshold and continuing until the date upon which Excess Availability has exceeded the Liquidity Threshold for 60 consecutive days. 

(e) Section 1.1 of the Loan Agreement is amended by adding the defined term “Liquidity Threshold” thereto in its
appropriate alphabetical order as follows: 
 Liquidity Threshold – the greater of
(i) $7,500,000, and (ii) 12.5% of the Total Credit Facility. 
 (f) Section 1.1 of the Loan Agreement is amended
by amending and restating the definition of the term “Applicable Margin” set forth therein in its entirety as follows: 
 Applicable Margin from the First Amendment Closing Date to, but not including, the first Adjustment Date (as hereinafter defined) the percentages set forth below with respect to each Base Rate
Revolving Loan, each LIBOR Revolving Loan and the Unused Line Fee: 
  

					
	 Base Rate Revolving Loans
	  	 	0.00	% 
	 LIBOR Revolving Loans
	  	 	1.75	% 

 The percentages set forth above will be adjusted on the first day of the month following
delivery by Borrowers to Agent of the financial statements required to be delivered pursuant to subsection 9.1.3(ii) of the Agreement for each March 31, June 30, September 30 and December 31 during the Term,
commencing with the month ending September 30, 2012 (each such date an “Adjustment Date”), effective prospectively, by reference to the applicable “Financial Measurement” (as defined below) for the four quarters most
recently ending in accordance with the following: 
  

									
	 Financial

Measurement
	  	Base Rate
Revolving
Loans	 	 	LIBOR
Revolving
Loans	 
	 Greater than 1.50 to 1.0
	  	 	0.00	% 	 	 	1.75	% 
			
	 Less than or equal to 1.50 to 1.0 but greater than or equal to 1.25 to 1.0
	  	 	0.25	% 	 	 	2.00	% 
			
	 Less than 1.25 to 1.0
	  	 	0.50	% 	 	 	2.25	% 

 provided that, (i) if Parents’ audited financial statements for any fiscal year
delivered pursuant to subsection 9.1.3(i) of the Agreement reflect a Financial Measurement that yields a higher Applicable Margin than that yielded by the monthly financial statements previously delivered pursuant to subsection 9.1.3(ii)
of the Agreement for the last month of such fiscal year, the Applicable Margin shall be readjusted retroactively for the period that was incorrectly calculated and (ii) if Borrowers fail to deliver the financial statements required to be
delivered pursuant to subsection 9.1.3(i) or subsection 9.1.3(ii) of the Agreement on or before the due date thereof, the interest rate shall automatically adjust to the highest interest rate set forth above, effective prospectively from
such due date until the delivery of such financial statements. Upon delivery of such financial statements, the Applicable Margin shall be readjusted as of the date of delivery of such financial statements pursuant hereto and shall be the effective
Applicable Margin until the next Adjustment Date For purposes hereof, “Financial Measurement” shall mean the Fixed Charge Coverage Ratio. 
 (g) Section 1.1 of the Loan Agreement is amended by amending and restating clause (b) of the definition of the term “Borrowing Base” set forth therein as follows: 

(b) the lesser of (i) 65% of the value of Eligible Inventory at such date and (ii) 100% of the NOLV of Eligible
Inventory at such date. 
 (h) Section 1.1 of the Loan Agreement is amended by amending and restating the definition of the
term “Dominion Account” set forth therein in its entirety as follows: 

 Dominion Account – a special bank account or accounts of Agent
established by Borrowers or any one of them pursuant to subsection 7.2.4 of the Agreement at Bank, and over which Agent shall have sole and exclusive access and control for withdrawal purposes during any Insufficient Liquidity Period and during any
time that an Event of Default has occurred and is continuing. 
 (i) Section 1.1 of the Loan Agreement is amended by
amending and restating the definition of the term “Revolving Credit Maximum Amount” set forth therein in its entirety as follows: 
 Revolving Credit Maximum Amount—$50,000,000, as such amount may be reduced from time to time pursuant to the terms of the Agreement. 

(j) Section 1.1 of the Loan Agreement is amended by amending and restating the definition of the term “Total Credit
Facility” set forth therein in its entirety as follows: 
 Total Credit Facility—$50,000,000, as
reduced from time to time pursuant to the terms of this Agreement. 
 (k) The preamble to Section 2 of the Loan Agreement
is amended by replacing the reference to “$35,000,000” set forth therein with a reference to “$50,000,000”. 

(l) Section 2.1.3 of the Loan Agreement is hereby amended by replacing each reference to “$1,750,000” set forth therein
with a reference to “$2,500,000”. 
 (m) Section 2.1.4 of the Loan Agreement is hereby amended by replacing the
reference to “$3,500,000” set forth therein with a reference to “$5,000,000”. 
 (n) Section 2.1.5 of
the Loan Agreement is hereby amended by replacing each reference to “$1,750,000” set forth therein with a reference to “$2,500,000”. 
 (o) Section 3.5 of the Loan Agreement is amended and restated in its entirety as follows: 
 3.5. Unused Line Fee. 
 Borrowers shall pay to Agent,
for the ratable benefit of Lenders, a fee (the “Unused Line Fee”) equal to the 0.25% per annum multiplied by the average daily amount by which Revolving Credit Maximum Amount exceeds the sum of (i) the outstanding principal
balance of the Revolving Credit Loans plus (ii) the LC Amount. The Unused Line Fee shall be payable monthly in arrears on the first day of each month hereafter. 
 (p) Section 5.1 of the Loan Agreement is amended and restated in its entirety as follows: 
 5.1. Term of Agreement. 

 Subject to the right of Lenders to cease making Loans to Borrowers during
the continuance of any Default or Event of Default, this Agreement shall be in effect for a period of five years from the First Amendment Closing Date, through and including March 20, 2017 (the “Term”), unless terminated as provided
in Section 5.2 hereof. 
 (q) Section 7.2.4 of the Loan Agreement is amended and restated in its entirety as follows:

 7.2.4. Maintenance of Dominion Account. Borrowers shall maintain a Dominion Account or Accounts
pursuant to lockbox and blocked account arrangements acceptable to Agent with Bank. Borrowers shall issue to Bank an irrevocable letter of instruction directing Bank to deposit all payments or other remittances received in the lockbox and blocked
accounts to the Dominion Account for application on account of the Obligations as provided in subsection 4.2.1 during any Insufficient Liquidity Period and during the continuance of any Event of Default. All funds deposited in any Dominion
Account during any Insufficient Liquidity Period and during the continuance of any Event of Default shall immediately become the property of Agent, for the ratable benefit of Lenders, and Borrowers shall obtain the agreement by such banks in favor
of Agent to waive any recoupment, setoff rights, and any security interest in, or against, the funds so deposited. 
 (r)
Section 7.2.5 of the Loan Agreement is amended and restated in its entirety as follows: 
 7.2.5
Collection of Accounts; Proceeds of Collateral. Each Borrower agrees that all invoices rendered and other requests made by any Borrower for payment in respect of Accounts shall contain a written statement directing payment in respect of such
Accounts to be paid to a lockbox established pursuant to subsection 7.2.4. To expedite collection, each Borrower shall endeavor in the first instance to make collection of its Accounts for Agent. All remittances received by any Borrower on
account of Accounts during any Insufficient Liquidity Period and during the continuance of any Event of Default, together with the proceeds of any other Collateral, shall be held as Agent’s property, for its benefit and the benefit of Lenders,
by such Borrower as trustee of an express trust for Agent’s benefit and such Borrower shall immediately deposit same in kind in the Dominion Account. Agent retains the right at all times after the occurrence and during the continuance of a
Default or an Event of Default to notify Account Debtors that Borrowers’ Accounts have been assigned to Agent and to collect Borrowers’ Accounts directly in its own name, or in the name of Agent’s agent, and to charge the collection
costs and expenses, including attorneys’ fees, to Borrowers. 
 (s) Section 8.1.4 of the Loan Agreement is amended by
replacing each reference to “as of the date hereof” set forth therein with a reference to “as of the First Amendment Closing Date”. 

 (t) Section 8.1.13 of the Loan Agreement is amended by replacing the reference to
“as of the date hereof” set forth therein with a reference to “as of the First Amendment Closing Date”. 

(u) Section 8.1.25 of the Loan Agreement is amended by replacing the reference to “as of the date hereof” with a reference
to “as of the First Amendment Closing Date”. 
 (v) Section 9.1.3(ii) of the Loan Agreement is amended by
deleting the phrase “not later than 30 days after the end of each month hereafter” therein and inserting the phrase “not later than 30 days after the end of each month hereafter (except for the months ending
March 31, June 30, September 30 and December 31) and not later than 45 days after the end of the months ending March 31, June 30, September 30 and December 31” in its place.

 (w) Section 9.1.4 of the Loan Agreement is amended and restated in its entirety as follows: 

9.1.4. Borrowing Base Certificates. On or before the 3rd day of each week during an
Insufficient Liquidity Period from and after the date hereof, and on or before the 20th day of each calendar month at all times that an Insufficient Liquidity Period is not in existence from and after the date hereof, Borrowers shall deliver to
Agent, in form acceptable to Agent, a Borrowing Base Certificate as of the last day of the immediately preceding week (in the case of a weekly Borrowing Base Certificate) or the last day of the immediately preceding month (in the case of a monthly
Borrowing Base Certificate), with such supporting materials as Agent shall reasonably request. If Borrowers deem it advisable, or Agent shall request, Borrowers shall execute and deliver to Agent Borrowing Base Certificates more frequently than
weekly or monthly, as applicable. On or before the 20th
day of each calendar month from and after the date hereof, Borrowers shall deliver to Agent, in the form reasonably acceptable to Agent, (i) reconciliations of Borrowers’ Accounts as shown on the month-end Borrowing Base Certificate for
the immediately preceding month to Borrowers’ accounts receivable agings, to Borrowers’ general ledger and to Borrowers’ most recent financial statements and (ii) reconciliations of Borrowers’ Inventory as shown on
Borrowers’ perpetual inventory, to Borrowers’ general ledger and to Borrowers’ financial statements, all with supporting materials as Agent shall reasonably request. 

(x) Section 9.3 of the Loan Agreement is amended and restated in its entirety as follows: 

9.3 Specific Financial Covenants. 
 During the Term, and thereafter for so long as there are any Obligations outstanding, Borrowers covenant that, unless otherwise consented to by Majority Lenders, in writing, they shall comply with all of
the financial 

 
covenants set forth in Exhibit 9.3 hereto; provided, however, that the Fixed Charge Coverage Ratio covenant set forth in Exhibit 9.3 shall be tested only for the
most recently ended month for which Agent has received financial statements pursuant to Section 9.1.3 prior to the commencement of an Insufficient Liquidity Period and each month ending thereafter until such Insufficient Liquidity Period
has ended and no additional Insufficient Liquidity Period has commenced. If GAAP changes from the basis used in preparing the audited financial statements delivered to Agent by Borrowers on or before the Closing Date, Borrowers will provide Agent
with certificates demonstrating compliance with such financial covenants and will include, at the election of Borrowers or upon the request of Agent, calculations setting forth the adjustments necessary to demonstrate how Borrowers are also in
compliance with such financial covenants based upon GAAP as in effect on the Closing Date. 
 (y) Each reference to “Harris
N.A.” in the Loan Agreement is replaced with a reference to “BMO Harris Bank N.A. (formerly known as Harris N.A.)”. 
 (z) The following Exhibits to the Loan Agreement are amended and restated in their entirety in the form attached as Annex 1 to this Amendment: Exhibit 7.1.1 (Business Locations), Exhibit
8.1.1 (Jurisdictions of Qualification), Exhibit 8.1.4 (Capital Structure), Exhibit 8.1.5 (Names; Organization), Exhibit 8.1.13 (Surety Obligations), Exhibit 8.1.14 (Tax Identification Numbers), .Exhibit 8.1.16
(Patents, Trademarks, Copyrights and Licenses), Exhibit 8.1.22 (Capitalized and Operating Leases). 
 3. Continuing
Effect. Except as expressly set forth in Section 2 of this Amendment, nothing in this Amendment shall constitute a modification or alteration of the terms, conditions or covenants of the Loan Agreement or any other Loan Document, or
a waiver of any other terms or provisions thereof, and the Loan Agreement and the other Loan Documents shall remain unchanged and shall continue in full force and effect. 
 4. Reaffirmation and Confirmation. Each Borrower hereby ratifies, affirms, acknowledges and agrees that the Loan Agreement and the other Loan Documents to which it is a party represent the valid,
enforceable and collectible obligations of such Borrower, and further acknowledges that there are no existing claims or defenses, personal or otherwise, with respect to the Loan Agreement or any other Loan Document. Each Borrower hereby agrees that
this Amendment in no way acts as a release or relinquishment of the Liens granted to the Agent under the Loan Documents and rights securing payments of the Obligations. The Liens and rights securing payment of the Obligations are hereby ratified and
confirmed by each Obligor in all respects. 
 5. Amendment Fee. In order to induce Agent to enter into this Amendment,
Borrowers hereby jointly and severally agree to pay an amendment fee to Agent for its own account on the date hereof in the amount of $75,000 (the “Amendment Fee”), which Amendment Fee shall be fully earned, non-refundable and due
and payable on the date hereof. Borrowers hereby authorize Agent to charge the Amendment Fee to Borrowers as a Revolving Credit Loan on the date of this Amendment. 

 6. Conditions to Effectiveness. This Amendment shall become effective as of the date
hereof and upon the satisfaction of the following conditions precedent: 
 (a) Each party hereto shall have executed and
delivered this Amendment to Agent; 
 (b) No Default or Event of Default shall have occurred and be continuing as of the date of
the effectiveness of this Amendment; and 
 (c) Agent shall have received each of the documents referenced on the closing
checklist attached as Annex 2 to this Amendment (other than such documents expressly referenced as post-closing covenants in Section 8 below), in each case in form and substance satisfactory to Agent. 

7. Representations and Warranties. In order to induce Agent and the Lenders to enter into this Amendment, each Borrower hereby
represents and warrants to Agent and Lenders that: 
 (a) Both before and after giving effect to this Amendment, all
representations and warranties contained in the Loan Agreement and the other Loan Documents are true and correct on and as of the date of this Amendment, in each case as if then made, other than representations and warranties that expressly relate
solely to an earlier date (in which case such representations and warranties were true and correct on and as of such earlier date); 
 (b) Both before and after giving effect to this Amendment, no Default or Event of Default has occurred and is continuing; 
 (c) this Amendment has been approved by all necessary corporate or other relevant action and do not or will not require any consent or approval of the shareholders, partners or members, as the case may
be, of Parent or any other Borrower, except for those obtained and in full force and effect, (ii) contravene Parent’s or any other Borrower’s charter, articles or certificate of incorporation, partnership agreement, articles or
certificate of formation, by-laws, limited liability agreement, operating agreement or other organizational documents (as the case may be); (iii) violate, or cause Parent or any other Borrower or any of to be in default under, any provision of
any law, rule, regulation, order, writ, judgment, injunction, decree, determination or award in effect having applicability to such Borrower; (iv) result in a breach of or constitute a default under any agreement, lease or instrument to which
any Borrower or any of its Subsidiaries is a party or by which it or its Properties may be bound or affected; or (v) result in, or require, the creation or imposition of any Lien upon or with respect to any of the Properties now owned or
hereafter acquired by any Borrower or any of its Subsidiaries; and 
 (d) This Amendment, the Loan Agreement and other Loan
Documents to which it is a party, as modified hereby, constitute legal, valid and binding obligations of such Obligor and are enforceable against such Obligor in accordance with their respective terms. 

 8. Post-Closing Covenants. In order to induce Agent and the Lenders to enter into
this Amendment, the Borrowers hereby covenant and agree that: 
 (a) Within 60 days following the date hereof (or such later
date as permitted by Agent in its sole discretion, which extension may be effectuated by Agent delivering a written extension to Administrative Borrower (which writing may be in the form of electronic mail)), Borrowers shall deliver to Agent
(i) evidence that the First Amendment to Real Property Mortgage of even date herewith between Properties and Agent with respect to the real property owned by Properties located at 655 Wheat Lane, Wood Dale, Illinois 60191 (the “Wheat Lane
Property”) has been recorded in the applicable jurisdiction, and (ii) a date down endorsement to the existing mortgagee title insurance policy in favor of Agent with respect to the mortgage of the Wheat Lane Property in favor of Agent,
which date down endorsement shall be in form and substance satisfactory to Agent; and 
 (b) Within 90 days following the date
hereof (or such later date as permitted by Agent in its sole discretion, which extension may be effectuated by Agent delivering a written extension to Administrative Borrower (which writing may be in the form of electronic mail)), Borrowers shall
deliver evidence that UCC financing statements 16595994 and 16759082 filed by Associated Material Handling against Great Lakes with the Secretary of State of Illinois have been amended to limit the collateral description set forth therein in a
manner acceptable to Agent. 
 The failure by Borrowers to satisfy any of the foregoing requirements within the time periods
specified above shall constitute an Event of Default under the Loan Agreement. 
 9. Miscellaneous. 

(a) Expenses. The Borrowers agree to pay on demand all costs and expenses of Agent (including the reasonable fees and expenses of
outside counsel for Agent) in connection with the preparation, negotiation, execution, delivery and administration of this Amendment and all other instruments or documents provided for herein or delivered or to be delivered hereunder or in
connection herewith. All obligations provided herein shall survive any termination of this Amendment and the Loan Agreement. 

(b) Governing Law. This Amendment shall be a contract made under and governed by the internal laws of the State of Illinois.

 (c) Counterparts. This Amendment may be executed in any number of counterparts, and by the parties hereto on the same
or separate counterparts, and each such counterpart, when executed and delivered, shall be deemed to be an original, but all such counterparts shall together constitute but one and the same Amendment. A counterpart of this Amendment delivered via
facsimile, .pdf or other electronic transmission shall be equally effective as the delivery of a manually executed counterpart of this Amendment. 
 10. Release. 
 (a) In consideration of the agreements of Agent and Lenders
contained herein and for other good and valuable consideration, the receipt and sufficiency of which is 

 
hereby acknowledged, each Borrower, on behalf of itself and its successors, assigns, and other legal representatives, hereby absolutely, unconditionally and irrevocably releases, remises and
forever discharges Agent and the Lenders, and their successors and assigns, and their present and former shareholders, affiliates, subsidiaries, divisions, predecessors, directors, officers, attorneys, employees, agents and other representatives
(Agent, each Lender and all such other Persons being hereinafter referred to collectively as the “Releasees” and individually as a “Releasee”), of and from all actions, causes of action, suits, controversies and
damages and any and all other claims, counterclaims, defenses, rights of set-off, demands and liabilities whatsoever (individually, a “Claim” and collectively, “Claims”) of every name and nature, known or unknown,
suspected or unsuspected, both at law and in equity, which such Borrower or any of its respective successors, assigns, or other legal representatives may now or hereafter own, hold, have or claim to have against the Releasees or any of them for,
upon, or by reason of any action or inaction of any Releasee which has occurred or arises at any time on or prior to the day and date of this Amendment, including, without limitation, for or on account of, or in relation to, or in any way in
connection with any of the Loan Agreement or any of the other Loan Documents or transactions thereunder or related thereto. 

(b) Each Borrower understands, acknowledges and agrees that the release set forth above may be pleaded as a full and complete defense and
may be used as a basis for an injunction against any action, suit or other proceeding which may be instituted, prosecuted or attempted in breach of the provisions of such release. 

(c) Each Borrower agrees that no fact, event, circumstance, evidence or transaction which could now be asserted or which may hereafter be
discovered shall affect in any manner the final, absolute and unconditional nature of the release set forth above. 

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

							
	BORROWERS:	 		 	POWER SOLUTIONS INTERNATIONAL, INC.,
				
		 		 	By:	 	/s/ Gary Winemaster
		 		 	Name:	 	Gary Winemaster
		 		 	Title:	 	President and Chief Executive Officer
			
		 		 	THE W GROUP, INC.
				
		 		 	By:	 	/s/ Gary Winemaster
		 		 	Name:	 	Gary Winemaster
		 		 	Title:	 	President and Chief Executive Officer
			
		 		 	POWER SOLUTIONS, INC. 
				
		 		 	By:	 	/s/ Gary Winemaster
		 		 	Name:	 	Gary Winemaster
		 		 	Title:	 	President and Chief Executive Officer
			
		 		 	POWER GREAT LAKES, INC. 
				
		 		 	By:	 	/s/ Gary Winemaster
		 		 	Name:	 	Gary Winemaster
		 		 	Title:	 	President and Chief Executive Officer
			
		 		 	AUTO MANUFACTURING, INC. 
				
		 		 	By:	 	/s/ Gary Winemaster
		 		 	Name:	 	Gary Winemaster
		 		 	Title:	 	President and Chief Executive Officer

 Signature Page to Amendment No. 1 to Loan and Security Agreement 

							
		 		 	TORQUE POWER SOURCE PARTS, INC.
				
		 		 	By:	 	/s/ Gary Winemaster
		 		 	Name:	 	Gary Winemaster
		 		 	Title:	 	President and Chief Executive Officer
			
		 		 	POWER PROPERTIES, L.L.C. 
			
		 		 	BY: THE W GROUP, INC., its Sole Managing Member
				
		 		 	By:	 	/s/ Gary Winemaster
		 		 	Name:	 	Gary Winemaster
		 		 	Title:	 	President and Chief Executive Officer
			
		 		 	POWER PRODUCTION, INC. 
				
		 		 	By:	 	/s/ Gary Winemaster
		 		 	Name:	 	Gary Winemaster
		 		 	Title:	 	President and Chief Executive Officer
			
		 		 	POWER GLOBAL SOLUTIONS, INC. 
				
		 		 	By:	 	/s/ Gary Winemaster
		 		 	Name:	 	Gary Winemaster
		 		 	Title:	 	President and Chief Executive Officer
			
		 		 	PSI INTERNATIONAL, LLC 
				
		 		 	By:	 	/s/ Gary Winemaster
		 		 	Name:	 	Gary Winemaster
		 		 	Title:	 	Manager
			
		 		 	XISYNC LLC
			
		 		 	BY: THE W GROUP, INC., its Sole Managing Member
				
		 		 	By:	 	/s/ Gary Winemaster
		 		 	Name:	 	Gary Winemaster
		 		 	Title:	 	President and Chief Executive Officer

 Signature Page to Amendment No. 1 to Loan and Security Agreement 

							
		 		 	 BMO HARRIS BANK N.A.
 (formerly known as HARRIS N.A.),
 as Agent and sole existing Lender

				
		 		 	By:	 	/s/ William Kennedy
		 		 	Name:	 	William Kennedy
		 		 	Title:	 	Vice President

 Signature Page to Amendment No. 1 to Loan and Security Agreement 

 Annex I 

Certain Amended and Restated Exhibits 
 EXHIBIT 7.1.1 
 BUSINESS LOCATIONS 

 

	1.	Each Borrower currently has the following business locations, and no others: 

 

	Chief	Executive Office:       655 Wheat Lane (owned by Properties) 

Wood Dale, Du Page County, Illinois 60191 

 

	Other	Locations:                  170-176 Mittel Drive (leased by Great Lakes)

 Wood Dale, Du Page County, Illinois 60191 

1455 Michael Drive (leased by Great Lakes) 

Wood Dale, Du Page County, Illinois 60191 

780 Arthur Avenue (leased by Great Lakes) 

Elk Grove Village, Cook County, Illinois 60007 

801 AEC Drive (leased by Power Great Lakes) 

Wood Dale, Du Page County, Illinois 60191 

201 Mittel Drive (leased by Power Great Lakes) 

Wood Dale, Du Page, Illinois 60191 
  

	2.	Each Borrower maintains its books and records relating to Accounts and General Intangibles at: 

655 Wheat Lane (owned by Properties) 

Wood Dale, Du Page County, Illinois 60191 

 

	3.	Each Borrower has had no office, place of business or agent for process located in any county other than as set forth above, except: 

950 Arthur Avenue (formerly leased by Great Lakes) 

Elk Grove Village, Cook County, Illinois 60007 

(not a current location) 
  

	4.	Each Subsidiary currently has the following business locations, and no others: 

 

	Chief	Executive Office:       Not Applicable. 

  

	Other	Locations:                  Not Applicable. 

 

	5.	Each Subsidiary maintains its books and records relating to Accounts and General Intangibles at: 

 Not Applicable. 

 

	6.	Each Subsidiary has had no office, place of business or agent for process located in any county other than as set forth above, except: 

Not Applicable. 
  

	7.	The following bailees, warehouseman, similar parties and consignees hold Inventory of any Borrower or any one of its Subsidiaries: 

 

							
	 Name and Address of Party
	  	Nature of
Relationship	  	Amount of
Inventory1	  	 Owner of

Inventory

	 **
	  	Warehouse	  	$614,793	  	Power Solutions
	 **
	  	Warehouse	  	        $1,561,579        	  	Power Great Lakes
	 **
	  	Processor	  	$2,238	  	Power Solutions
	 **
	  	Processor	  	$1,010,895	  	Power Solutions
	 **
	  	Processor	  	$41,853.67	  	Power Solutions
	 **
	  	Processor	  	$45,055.79	  	Power Solutions
	 **
	  	Processor	  	$2,945.38	  	Power Production
	 **
	  	        Consignment        	  	$4,170.46	  	Power Solutions
	 **
	  	Consignment	  	$7,832.71	  	Power Solutions
	 **
	  	Consignment	  	$10,867.11	  	Power Solutions
	 **
	  	Consignment	  	$2,794.38	  	Power Solutions
	 **
	  	Consignment	  	$3,616.04	  	Power Solutions
	 **
	  	Consignment	  	$3,529.24	  	Power Solutions
	 **
	  	Consignment	  	$2,972.77	  	Power Solutions
	 **
	  	Consignment	  	$4,231.79	  	Power Solutions
	 **
	  	Consignment	  	$11,645.88	  	Power Solutions
	 **
	  	Consignment	  	$3,535.17	  	Power Solutions

  

	1 	 All values as of December 31, 2011, except with respect to inventory held by **, which value is as of February 28, 2012.

							
	 Name and Address of Party
	  	Nature of
Relationship	  	Amount of
Inventory1	  	 Owner of

Inventory

	 **
	  	Consignment	  	$862.58	  	Power Solutions
	 **
	  	        Consignment        	  	        $10,875.29            	  	Power Solutions
	 **
	  	Consignment	  	$2,972.77	  	Power Solutions
	 **
	  	Consignment	  	$2,714.97	  	Power Solutions
	 **
	  	Consignment	  	$2,260.39	  	Power Solutions

 EXHIBIT 8.1.1 

JURISDICTIONS IN WHICH ANY BORROWER 
 AND ITS SUBSIDIARIES 
 ARE AUTHORIZED TO DO BUSINESS 

 

			
	 Name of Entity
	  	Jurisdiction
	 Parent
	  	Delaware
	 Holdings
	  	Delaware and Illinois
	 Power Solutions
	  	Illinois
	 Great Lakes
	  	Illinois
	 Auto Manufacturing
	  	Illinois
	 Torque
	  	Illinois
	 Properties
	  	Illinois
	 Production
	  	Illinois
	 Global
	  	Illinois
	 PSI
	  	Illinois
	 XISYNC
	  	Illinois

 Exhibit 8.1.1-1 

 EXHIBIT 8.1.4 

CAPITAL STRUCTURE 
  

	1.	The classes and the number of authorized and issued Securities of Parent and the record owner of such Securities on the Closing Date are as follows:

  

							
	 Shareholder
	  	Common Stock	  	Warrant Shares	  	Total Shares
	 Gary Winemaster
	  	4,545,500	  	0	  	4,545,500
	 Ken Winemaster
	  	2,883,651	  	0	  	2,883,651
	 Tom Somodi
	  	0	  	0	  	0
	 Ken Landini
	  	49,168	  	0	  	49,168
	 Shareholders of Format, Inc.
	  	24,093	  	0	  	24,093
	 Investors
	  	1,500,009	  	750,002	  	2,250,011
	 Placement Agent (Roth)
	  	62,116	  	0	  	62,116
	 Total
	  	9,064,537	  	750,002	  	9,814,539
	 Total Authorized: 50,000,000 shares of Common Stock; 5,000,000 shares of Preferred Stock

  

	2.	The classes and the number of authorized and issued Securities of each Borrower (other than Parent) and the record owner of such Securities are as follows:

  

									
	 Borrower
	  	 Class of Securities
	  	Number of
Securities Issued
and Outstanding	  	Record
Owners	  	Number of
Securities
Authorized but
Unissued
	 Holdings
	  	common stock	  	1,000	  	Parent	  	1,000
	 Power Solutions
	  	common stock	  	5,000	  	Holdings	  	4,000
	 Great Lakes
	  	common stock	  	50,000	  	Holdings	  	49,000
	 Auto Manufacturing
	  	common stock	  	10,000	  	Holdings	  	9,000
	 Torque
	  	common stock	  	10,000	  	Holdings	  	9,000
	 Properties
	  	membership interests	  	Not Applicable	  	Holdings	  	0%
	 Production
	  	common stock	  	10,000	  	Holdings	  	9,000
	 Global
	  	common stock	  	10,000	  	Holdings	  	9,000
	 PSI
	  	membership interests	  	Not Applicable	  	Holdings	  	0%
	 XISYNC
	  	membership interests	  	Not Applicable	  	Holdings	  	0%

  

	3.	The number, nature and holder of all other outstanding Securities of Parent and each Subsidiary of Parent are as follows: 

(a) Power Solutions International, Inc. Private Placement Warrants issued to the private placement investors, to purchase, in the
aggregate, 750,002 shares of common stock $0.001 par value (Private Placement Warrant). 
 Exhibit 8.1.4-1 

	4.	The correct name and jurisdiction of incorporation or organization of Parent and each Subsidiary of Parent and the percentage of its issued and outstanding Voting Stock
owned (directly or indirectly) by Parent are as follows: 

  

					
	 Name
	  	 Jurisdiction of

Incorporation/Organization
	  	 Percentage of Voting 
Stock Owned by
Borrower

	 Parent
	  	Delaware	  	Not Applicable
	 Holdings
	  	Delaware	  	100% -owned by Parent
	 Power Solutions
	  	Illinois	  	100% owned by Holdings
	 Great Lakes
	  	Illinois	  	100% owned by Holdings
	 Auto Manufacturing
	  	Illinois	  	100% owned by Holdings
	 Torque
	  	Illinois	  	100% owned by Holdings
	 Properties
	  	Illinois	  	100% owned by Holdings
	 Production
	  	Illinois	  	100% owned by Holdings
	 Global
	  	Illinois	  	100% owned by Holdings
	 PSI
	  	Illinois	  	100% owned by Holdings
	 XISYNC
	  	Illinois	  	100% owned by Holdings

  

	5.	The name of each of Parent’s and each Subsidiary of Parent corporate or joint venture Affiliates and the nature of the affiliation are as follows:

 (a) Holdings owns certain units of Vconverter Production, LLC, a Michigan limited liability company
(“Vconverter”), the number of which is approximately 0.01% of the units of Vconverter as of the Closing Date and which may increase from time to time pursuant to that certain Investment Agreement dated as of January 1, 2010 by and
among Holdings, Vconverter Corporation, a Michigan corporation and Vconverter. 
 (b) Joint venture of Holdings with Renewegy LLC
as contemplated by Section 9.2.13. 
  

	6.	The agreements or instruments binding upon the partners, members or shareholders of Parent or any of its Subsidiaries and relating to the ownership of its Securities,
are as follows: 

 (a) Lock-Up Agreement entered into by the former stockholders of Holdings, which provides that
any shares of, or securities convertible into, common stock of the Parent that are owned by such stockholders may not, without the consent of Roth Capital Partners, LLC, be sold or otherwise transferred for a period of 180 days following the closing
of the APO Transactions. 
 (b) Articles of Incorporation of Power Solutions International, Inc. and the Certificate of
Designation of Series A Convertible Preferred Stock of Power Solutions International, Inc. 
 (c) Registration Rights Agreement
is made and entered into as of April 29, 2011 by and among Parent, and the “Investors” party thereto. 
 Exhibit
8.1.4-2 

 (d) Registration Rights Agreement is made and entered into as of April 29, 2011 by and
among Parent, Gary Winemaster, Kenneth Winemaster and Thomas Somodi. 
 (e) Voting Agreements, dated as of April 29, 2011,
by and between Parent and Gary Winemaster, Kenneth Winemaster and Thomas Somodi. 
 (f) Power Solutions International, Inc.
Private Placement Warrants issued to the private placement investors, to purchase, in the aggregate, 750,002 shares of common stock $0.001 par value (Private Placement Warrant). 

(g) The Purchase Agreement dated as of April 29, 2011 by and among Parent and the Investors set forth on the signature pages affixed
thereto. 
 (h) Stock Purchase Agreement dated as of April 28, 2011 by and between Gary Winemaster and Thomas Somodi, as
amended as of October 31, 2011. 
 (i) Stock Purchase Agreement dated as of October 31, 2011 by and between Gary
Winemaster and Parent. 
 Exhibit 8.1.4-3 

 EXHIBIT 8.1.5 

NAMES; ORGANIZATION 
  

	1.	Parent’s correct name, as registered with the Secretary of State of the State of Delaware, is: 

Power Solutions International, Inc. 
  

	2.	In the conduct of its business, Parent has used the following names: 

Parent’s former legal name: Format, Inc., 

Other names used in the conduct of Parent’s business: 

Format, Format Document Services, Inc. 
  

	3.	Each Subsidiary of Parent’s correct name, as registered with the Secretary of State of the State of its incorporation or formation, is: 

Holdings – The W Group, Inc. 
 Power Solutions – Power Solutions, Inc. 
 Great Lakes –
Power Great Lakes, Inc. 
 Auto Manufacturing – Auto Manufacturing, Inc. 

Torque – Torque Power Source Parts, Inc. 

Properties – Power Properties, L.L.C. 

Production – Power Production, Inc. 

Global – Global Power Solutions, Inc. 

PSI – PSI International, Inc. 

XISYNC – XISync LLC 
  

	4.	In the conduct of its business, each Subsidiary has used the following names: 

Great Lakes – PGL, Inc., PGL 
 Power Solutions – PSI, ENGINECLICK, 
 Production – PPI

 Global – NG Engines, PGS, SUPPLYGEN, SUPPLYGEN.COM, VPR (VALUE PERFORMANCE RELIABILITY), POWERVPR.COM,
NGE NATURAL GAS ENGINE 
 Torque – TORQUE POWER SOURCE 

Parent – Format, Inc., Format, Format Document Services, Inc. 

XISYNC—Mastertrak 
 Exhibit 8.1.5-1 

 Domain Names: 
 PowerGreatLakes.com 
 PowerGreatLakes.net 

PowerGreatLakes.org 
 Psiengines.com 
 Ngengine.com 

Ngengine.net 

Ngengine.org 

MasterTrak.com 

MasterTrakSeries.com 
 MasterTrakFleet.com 
 MasterTrakFleet.net 

MasterTrakFleet.org 
 EngineClick.com 
 EngineCling.net 

AutoClutch.com 

IGreenEngine.com 

IONHybrid.com 

IONHybrid.org 

IONHybrid.net 

IPerkinsParts.com 

IPerkinsParts.net 

LpEngine.com 

LpEngine.net 

PowerGlobalSolution.com 
 PowerGlobalSolutions.net 
 PowerGlobalSolution.org 

PowersInt.com 

PowerVPR.com 

SelectGM.com 
  

	5.	Parent’s Organizational I.D. Number is: 

 4958464 
  

	6.	Each Subsidiary of Parent’s Organizational I.D. Number is: 

Holdings – 3422265 
 Power Solutions – 5508-343-6 
 Great Lakes – 5401-859-2

 Auto Manufacturing – 5950-447-9 

Torque – 6087-799-8 
 Properties – 0012448-6 
 Production – 6388-404-9

 Global – 6440-262-5 

PSI – 0170435-4 
 XISYNC – 0200135-7 
 Exhibit 8.1.5-2 

	7.	Parent’s type of Organization is: 

 Corporation 
  

	8.	Each Subsidiary of Parent’s type of Organization is: 

 Holdings – Corporation 
 Power Solutions – Corporation 

Great Lakes – Corporation 
 Auto Manufacturing – Corporation 
 Torque – Corporation 

Properties – Limited Liability Company 
 Production – Corporation 
 Global – Corporation 

PSI – Limited Liability Company 
 XISYNC – Limited Liability Company 
  

	9.	Parent has not been the surviving entity of a merger or consolidation nor has it acquired substantially all the assets of any person, except as follows:

 The APO Transactions. 
 Parent is the surviving entity of a merger of Power Solutions International, Inc., a Nevada corporation, with and into Power Solutions International, Inc., a Delaware corporation, effective as of
August 26, 2011. 
  

	10.	No Subsidiary of Parent has been the surviving entity of a merger or consolidation nor has it acquired substantially all the assets of any person.

 None. 
 Exhibit 8.1.5-3 

 EXHIBIT 8.1.13 

SURETY OBLIGATIONS 

None. 
 Exhibit 8.1.13-1

 EXHIBIT 8.1.14 

TAX IDENTIFICATION NUMBERS OF SUBSIDIARIES OF PARENT 

 

			
	 Borrower
	  	 Number

	Parent	  	33-0963637
	Holdings	  	36-4456949
	Power Solutions	  	36-3585770
	Great Lakes	  	36-3398606
	Auto Manufacturing	  	36-4168925
	Torque	  	36-4348042
	Properties	  	36-4168893
	Production	  	20-2043127
	Global	  	20-3411429
	PSI	  	20-3931125
	XISYNC	  	20-5841157

 Exhibit 8.1.14-1 

 EXHIBIT 8.1.16 

PATENTS, TRADEMARKS, COPYRIGHTS AND LICENSES 
  

	1.	Parent’s and its Subsidiaries’ patents: 

  

									
	 Patent
	  	Owner	  	Status in
Patent Office	  	Federal
Registration Number	  	Registration Date
	 None.
	  		  		  		  	

  

	2.	Parent’s and its Subsidiaries’ trademarks: 

  

																	
	 Trademark
	  	Owner	 	  	Status in
Patent Office	 	  	Federal
Registration Number	 	  	Registration Date	 
	 MASTERTRAK
	  	 	XISYNC	  	  	 	Active	  	  	 	2854543	  	  	 	June 15, 2004	  

  

	3.	Parent’s and its Subsidiaries’ copyrights: 

  

									
	 Copyright
	  	Owner	  	Status in
Patent Office	  	Federal
Registration Number	  	Registration Date
	 None.
	  		  		  		  	

 Exhibit 8.1.16-1 

 EXHIBIT 8.1.22 

CAPITALIZED AND OPERATING LEASES 
 Parent and its Subsidiaries have the following real property leases: 
  

							
	 Lessee
	 	 Lessor
	 	 Term of Lease
	 	 Property Covered

	Great Lakes	 	 Gateway
 Jefferson, Inc.
	 	 March 24, 2004 –

April 30, 2012
	 	 170-176 Mittel Drive, Wood Dale,

Illinois

	Great Lakes	 	 AMB Partners II
 Local, L.P.
	 	 October 1, 2009 –

July 31, 2013
	 	 1455 Michael Drive, Wood Dale,

Illinois

	Great Lakes	 	Dickal 770 L.L.C.	 	February 1, 2011 – April 30, 2012	 	 780 Arthur Avenue, Elk Grove Village,

Illinois

	Great Lakes	 	 Centerpoint
 Properties
	 	 July 1, 2011 –
 July 31, 2013
	 	801 AEC Drive, Wood Dale, Illinois
	Great Lakes	 	 Centerpoint
 Properties
	 	 March 12, 2012 –
 July 31, 2013
	 	 201 Mittel Drive, Wood Dale,

Illinois

 Parent and its Subsidiaries have the following capitalized and operating leases as of December 31, 2011: 

 

											
	 	  	 Description
	  	 Begin
	 	  	 End
	 
	 AS/R Systems
	  	Carousel	  	 	8/15/2009	  	  	 	7/31/2013	  
	 ISBS (New in 2010)
	  	Copiers	  	 	7/1/2010	  	  	 	6/30/2013	  
	 Schedule 003 —Pitney Bowes Postage Machine
	  	4235881.00	  	 	7/30/2006	  	  	 	1/31/2013	  
	 Schedule 004—Pitney Bowes Postage Machine
	  	3237051.00	  	 	10/30/2007	  	  	 	1/30/2012	  
	 2012 GMC Yukon
	  	1GKS2CE0XCR168407	  	 	11/28/2011	  	  	 	11/27/2014	  
	 2010 Buick Enclave
	  	5GALVCFD7AJ191022	  	 	3/23/2010	  	  	 	3/23/2013	  
	 2012 Cadillac CTS
	  	1G6DS5E37C0120803	  	 	11/7/2011	  	  	 	11/6/2013	  
	 2011 Buick Enclave
	  	5GAKVCED2BJ419652	  	 	7/30/2011	  	  	 	6/29/2014	  
	 2009 Cadillac CTS
	  	1G6DT57V1579939	  	 	6/12/2009	  	  	 	6/12/2014	  
	 2011 Cadillac CTS
	  	1G6DS5ED1B0126331	  	 	4/5/2011	  	  	 	4/4/2014	  
	 2012 Chevrolet Malibu
	  	1G1ZE5EXOCF188325	  	 	10/31/2011	  	  	 	1/30/2015	  
	 Raymond Swing Reach Truck
	  	SA-06-05454	  	 	2/19/2010	  	  	 	2/19/2012	  
	 Raymond Swing Reach Truck
	  	SA-06-05455	  	 	2/19/2010	  	  	 	2/19/2012	  
	 Cate GC40K Counterbalance Truck
	  	AT87A31321	  	 	7/29/2011	  	  	 	07/29/16	  
	 Cat LP Sit Down Counterbalance
	  	AT87A01979	  	 	7/1/2006	  	  	 	7/3/2012	  
	 Raymond Deep Reach Truck
	  	740-08-AB11055	  	 	6/4/2008	  	  	 	6/4/2012	  
	 Raymond Deep Reach Truck
	  	740-08-AB11052	  	 	6/4/2008	  	  	 	6/4/2012	  
	 Raymond Deep Reach Truck
	  	740-08-AB11061/
FB15387	  	 	6/4/2008	  	  	 	6/4/2012	  
	 Raymond Orderpicker—Wire
	  	560-08-A06518	  	 	4/9/2008	  	  	 	4/11/2012	  
	 Raymond Orderpicker—Wire
	  	560-08-A06519	  	 	4/9/2008	  	  	 	4/11/2012	  
	 Raymond Orderpicker—Wire
	  	560-08-A06517	  	 	4/9/2008	  	  	 	4/11/2012	  
	 Raymond Orderpicker—Wire
	  	560-10-A10528	  	 	12/30/2010	  	  	 	12/30/2013	  
	 Raymond Deep Reach Truck
	  	740-05-AA03019	  	 	8/5/2008	  	  	 	4/11/2012	  
	 Raymond Orderpicker
	  	560-07-A03461	  	 	2/19/2010	  	  	 	2/19/2012	  
	 Doosan LP Sit-Down Counterbalance
	  	MW-00413	  	 	4/10/2008	  	  	 	4/10/2012	  

											
	Doosan LP Sit-Down Counterbalance	  	MW-00346	  	 	4/9/2008	  	  	 	4/11/2012	  
	Doosan LP Sit-Down Counterbalance	  	MW-00334	  	 	4/9/2008	  	  	 	4/11/2012	  
	Toyota LP Sit Down Counterbalance	  	30679.00	  	 	12/6/2010	  	  	 	12/6/2013	  
	Toyota LP Sit Down Counterbalance	  	F187V18670J	  	 	9/13/2011	  	  	 	9/13/2014	  
	Toyota LP Sit Down Counterbalance	  	F187V18672J	  	 	9/13/2011	  	  	 	09/13/14	  
	Toyota LP Sit Down Counterbalance	  	15192.00	  	 	7/11/2011	  	  	 	4/11/2012	  

  
 -3-

 Annex II 

Closing Checklist 
 Amendment, Extension and Increase to 
 Loans by BMO Harris Bank N.A.
(formerly known as Harris N.A.), 
 as Administrative Agent 

to 

Power Solutions International, Inc., The W Group, Inc., 
 Power Solutions, Inc., Power Great Lakes, Inc., Auto Manufacturing, Inc., 

Torque Power Source Parts, Inc., Power Properties, L.L.C., Power Production, Inc., 

Power Global Solutions, Inc., PSI International, LLC and XISYNC LLC 

Amendment No. 1 to Loan and Security Agreement 
 Closing Date: March 20, 2012 
  

	11.	Parties 

  

	 	(a)	BMO Harris Bank. N.A., as Administrative Agent (“Harris”) 

 111 West Monroe Street 
 Chicago, Illinois 60603 

 

	 	(b)	Power Solutions International, Inc. (“Parent”) 

 655 Wheat Lane 
 Wood Dale, Illinois 60191 

 

	 	(c)	The W Group, Inc. (“Holdings”) 

 655 Wheat Lane 
 Wood Dale, Illinois 60191 

 

	 	(d)	Power Solutions, Inc. (“PSI”) 

 Power Great Lakes, Inc. (“PGL”) 
 Auto Manufacturing, Inc.
(“AMI”) 
 Torque Power Source Parts, Inc. (“TPSP”) 

Power Properties, L.L.C. (“PPL”) 
 Power Production, Inc. (“PPI”) 
 Power Global Solutions, Inc.
(“PGS”) 
 PSI International, LLC (“PSII”) 

XISYNC LLC (“XISYNC” and, together with PSI, PGL, AMI, TPSP, PPL, 

PPI, PGS and PSII, the “Subsidiaries”; Parent, Holdings and the Subsidiaries 

are collectively the “Borrowers”) 
 655 Wheat Lane 
 Wood Dale, Illinois 60191 

  
 -4-

	12.	Counsel to Parties 

  

	 	(a)	Harris: 

 Goldberg Kohn Ltd.
(“GK”) 
 55 East Monroe Street 
 Suite 3300 
 Chicago, Illinois 60603 

Telephone No.: (312) 201-4000 
 Facsimile No.: (312) 332-2196 
  

	 	(b)	Borrowers: 

 Reinhart Boerner Van
Deuren s.c. 
 1000 North Water Street 
 Suite 1700 
 Milwaukee, Wisconsin 53202 

Telephone No.: (414) 298-1000 
 Facsimile No.: (414) 298-8097 

  
 -5-

	13.	Closing Documents 

  

	 	(i)	Amendment No. 1 to Loan and Security Agreement, together with certain amended and restated Exhibits thereto 

 

	 	(ii)	Amended and Restated Revolving Note 

  

	 	(iii)	Amendment to Real Property Mortgage with respect to owned real property located at 655 Wheat Lane, Wood Dale, Illinois 60191 together with date down endorsement

  

	 	(iv)	Secretary’s Certificate for each Borrower 

  

	 	(A)	Certified Articles of Incorporation/Formation 

  

	 	(B)	By-laws/LLC Agreement 

  

	 	(C)	Resolutions of Board of Directors/Managers 

  

	 	(D)	Incumbency 

  

	 	(v)	Certificates of Good Standing for each Borrower in its jurisdiction of organization 

 

	 	(vi)	Summary of updated UCC searches 

  

	 	(vii)	Summary of intellectual property searches 

  

	 	(viii)	Opinion of Reinhart Boerner Van Deuren re loan documents, addressed to Harris and the Lenders 

 

	 	(ix)	BMO Harris Bank N.A. Lockbox and Assigned Account Agreements 

  

	 	(A)	Auto Manufacturing, Inc. 

  

	 	(B)	Power Great Lakes, Inc. 

  

	 	(C)	Power Global Solutions, Inc. 

  

	 	(D)	Power Solutions, Inc. 

  
 -6-

 AMENDED AND RESTATED REVOLVING NOTE 

 

			
	 $50,000,000
	  	 March 20, 2012
 Chicago, Illinois

 FOR VALUE RECEIVED, the undersigned (hereinafter “Borrowers”), hereby, jointly and severally,
PROMISE TO PAY to the order of BMO Harris Bank N.A., formerly known as Harris N.A. (“Lender”), or its registered assigns, at the principal office of BMO Harris Bank N.A., as agent for such Lender, or at such other place in the United
States of America as the holder of this Note may designate from time to time in writing, in lawful money of the United States of America and in immediately available funds, the principal amount of Fifty Million Dollars ($50,000,000), or such lesser
principal amount as may be outstanding pursuant to the Loan Agreement (as hereinafter defined) with respect to the Revolving Credit Loan, together with interest on the unpaid principal amount of this Note outstanding from time to time. 

This Note is one of the Revolving Credit Notes referred to in, and issued pursuant to, that certain Loan and Security Agreement dated as
of April 29, 2011 (as amended from time to time, the “Loan Agreement”), by and among Borrowers, the lender signatories thereto (including Lender) and BMO Harris Bank N.A., as agent for such Lenders (in such capacity
“Agent”), and is entitled to the benefit and security of the Loan Agreement. All of the terms, covenants and conditions of the Loan Agreement and the Security Documents are hereby made a part of this Note and are deemed incorporated herein
in full. All capitalized terms herein, unless otherwise specifically defined in this Note, shall have the meanings ascribed to them in the Loan Agreement. 
 The principal amount of the indebtedness evidenced hereby shall be payable in the amounts and on the dates specified in the Loan Agreement and, if not sooner paid in full, on March 20, 2017, unless
the term hereof is extended in accordance with the Loan Agreement. Interest thereon shall be paid until such principal amount is paid in full at such interest rates and at such times as are specified in the Loan Agreement. 

Upon and after the occurrence, and during the continuation, of an Event of Default, this Note shall or may, as provided in the Loan
Agreement, become or be declared immediately due and payable. 
 The right to receive principal of, and stated interest on, this
Note may only be transferred in accordance with the provisions of the Loan Agreement. 
 Demand, presentment, protest and notice
of nonpayment and protest are hereby waived by Borrowers. 
 This Note amends and restates and is issued in replacement of that
certain Revolving Note dated April 29, 2011 in the original principal amount of $35,000,000 issued by Borrowers in favor of Lender (the “Original Note”). The indebtedness evidenced by the Original Note has not been paid; instead this
Note (i) re-evidences the indebtedness evidenced by the Original Note, (ii) is given in substitution for, and not as payment of, the indebtedness evidenced by the 

 
Original Note, and (iii) is in no way intended to constitute a novation or discharge of the indebtedness evidenced by the Original Note. 

[Signature Page Follows] 

 This Note shall be interpreted, governed by, and construed in accordance with, the internal
laws of the State of Illinois. 
  

							
	BORROWERS:	 		 	POWER SOLUTIONS INTERNATIONAL, INC.,
				
		 		 	By:	 	/s/ Gary Winemaster
		 		 	Name:	 	Gary Winemaster
		 		 	Title:	 	President and Chief Executive Officer

  

							
		 		 	THE W GROUP, INC.
				
		 		 	By:	 	/s/ Gary Winemaster
		 		 	Name:	 	Gary Winemaster
		 		 	Title:	 	President and Chief Executive Officer

  

							
		 		 	POWER SOLUTIONS, INC.
				
		 		 	By:	 	/s/ Gary Winemaster
		 		 	Name:	 	Gary Winemaster
		 		 	Title:	 	President and Chief Executive Officer

  

							
		 		 	POWER GREAT LAKES, INC.
				
		 		 	By:	 	/s/ Gary Winemaster
		 		 	Name:	 	Gary Winemaster
		 		 	Title:	 	President and Chief Executive Officer

  

							
		 		 	AUTO MANUFACTURING, INC.
				
		 		 	By:	 	/s/ Gary Winemaster
		 		 	Name:	 	Gary Winemaster
		 		 	Title:	 	President and Chief Executive Officer

 Signature Page to Amended and Restated Revolving Note 

							
		 		 	TORQUE POWER SOURCE PARTS, INC.
				
		 		 	By:	 	/s/ Gary Winemaster
		 		 	Name:	 	Gary Winemaster
		 		 	Title:	 	President and Chief Executive Officer

  

							
		 		 	 POWER PROPERTIES, L.L.C. 

 
 BY: THE W GROUP, INC., its Sole Managing Member

				
		 		 	By:	 	/s/ Gary Winemaster
		 		 	Name:	 	Gary Winemaster
		 		 	Title:	 	President and Chief Executive Officer

  

							
		 		 	POWER PRODUCTION, INC.
				
		 		 	By:	 	/s/ Gary Winemaster
		 		 	Name:	 	Gary Winemaster
		 		 	Title:	 	President and Chief Executive Officer

  

							
		 		 	POWER GLOBAL SOLUTIONS, INC.
				
		 		 	By:	 	/s/ Gary Winemaster
		 		 	Name:	 	Gary Winemaster
		 		 	Title:	 	President and Chief Executive Officer

  

							
		 		 	PSI INTERNATIONAL, LLC
				
		 		 	By:	 	/s/ Gary Winemaster
		 		 	Name:	 	Gary Winemaster
		 		 	Title:	 	Manager

  

							
		 		 	 XISYNC LLC
  

BY: THE W GROUP, INC., its Sole Managing Member

				
		 		 	By:	 	/s/ Gary Winemaster
		 		 	Name:	 	Gary Winemaster
		 		 	Title:	 	President and Chief Executive Officer

 Signature Page to Amended and Restated Revolving Note 

 PREPARED BY & RETURN TO: 
 Michael B. Manuel, Esq. 
 GOLDBERG KOHN LTD. 

55 East Monroe Street, Suite 3300 
 Chicago,
Illinois 60603 
 (312) 201-4000 

Property Address: 
 655 Wheat Lane 

Wood Dale, Illinois 
 PIN: 03-09-204-015

 FIRST AMENDMENT TO REAL PROPERTY MORTGAGE 

THIS FIRST AMENDMENT TO REAL PROPERTY MORTGAGE (“Amendment”) is dated as of March 20, 2012 and is by and between
POWER PROPERTIES, L.L.C. (“Mortgagor”), having an address at 655 Wheat Lane, Wood Dale, Illinois and BMO HARRIS BANK N.A. (formerly known as Harris N.A.) as agent (“Agent”) for Lenders, as “Lenders”
is defined in the Amended Loan Agreement referred to below. 
 RECITALS: 

A. Agent, Lenders and Mortgagor are parties to a certain Loan and Security Agreement dated as of April 29, 2011 (the “Loan
Agreement”), pursuant to which Lenders agreed to make certain revolving loans to Mortgagor and certain affiliates of Mortgagor identified in the Loan Agreement (Mortgagor and such affiliates of Mortgagor are referred to herein each
individually as a “Borrower” and collectively as the “Borrowers”) in the original aggregate principal amount of up to $35,000,000 (the “Loans”). Borrowers, Agent and Lenders have entered into a
certain Amendment No. 1 to Loan and Security Agreement dated of even date herewith (the “Loan Amendment”) pursuant to which certain terms of the Loans have been amended. The Loan Agreement, as amended by the Loan Amendment, is
referred to herein as the “Amended Loan Agreement.” 
 B. The Loans are presently secured by, among other
things, a certain Real Property Mortgage encumbering the land legally described on attached Exhibit A, dated as of April 29, 2011 and recorded with the Recorder of Deeds of DuPage County, Illinois on June 3, 2011 as Document No.
R2011-067058 (the “Mortgage”). 
 C. The parties hereto now wish to amend the Mortgage as provided herein.

 AGREEMENTS: 
 14. Capitalized terms not otherwise defined in this Amendment shall have the meaning given them in the Mortgage. 
 15. The Mortgage is amended as follows: 
 (a) All references in the Mortgage to
the “Loan Instruments” or to any particular Loan Instrument, including without limitation, the “Notes” shall mean the Loan Instruments or the applicable Loan Instrument, as the case may be, as amended by (or, with respect
to the Notes, amended concurrently with) the Loan Amendment. 
 (b) All references in the Mortgage to the “Loan
Agreement” shall mean the Amended Loan Agreement. 
 (c) For reference purposes only, the Mortgage is amended to reflect
that the final maturity date of the Loans has been extended to March 20, 2017. 
 (d) The Mortgage is hereby amended to
reflect that, pursuant to the Amended Loan Agreement, the maximum principal balance of the Loans that is permitted to be outstanding at any time has been increased to $50,000,000. All references in the Mortgage to the amount, “$35,000,000”
are hereby changed to “$50,000,000.” 
 16. The Mortgage is hereby amended to conform to the terms hereof. The
Mortgage shall remain in full force and effect in accordance with its original terms, as amended by this Amendment. Mortgagor expressly reaffirms and ratifies its continuing obligations under the Mortgage and that the Mortgage continues as a first
lien on the Mortgaged Property in favor of Agent and Mortgagor agrees that no part of the foregoing amendments or modifications shall have the effect of releasing, relieving or diminishing any obligations under the Mortgage. Nothing herein is
intended to constitute a novation. 
 17. The validity and interpretation of this Amendment shall be construed in accordance
with the laws of the State of Illinois. 
 18. This Amendment may be executed in any number of counterparts, each of which, when
executed and delivered, shall be deemed to be an original, but such counterparts shall together constitute but one and the same instrument. 
 [The balance of this page is intentionally blank; signature page follows.] 

 IN WITNESS WHEREOF, the undersigned have executed this First Amendment to Real Property
Mortgage on the date first above written. 
  

					
	MORTGAGOR:  
 POWER PROPERTIES, L.L.C., an Illinois limited liability company

		
	By:	 	The W Group, Inc., its sole managing member
			
		 	By:	 	/s/ Gary Winemaster 
		 	Name:	 	Gary Winemaster
		 	Title:	 	President and Chief Executive Officer

  

			
	AGENT:  
 BMO HARRIS BANK N.A. (formerly known as Harris N.A.), a national banking association

		
	By:	 	/s/ William Kennedy
	Name:	 	William Kennedy
	Title:	 	Vice President

 Signature Page to First Amendment to Real Property Mortgage 

 ACKNOWLEDGMENT 

 

			
	STATE OF ILLINOIS	 	)
		 	) SS.
	COUNTY OF COOK	 	)

 I, Jose Rodriguez, a Notary Public in and for said County, in the State aforesaid, DO HEREBY CERTIFY that
Gary Winemaster, personally known to me to be the President and CEO of The W Group, Inc., the sole managing member of POWER PROPERTIES, L.L.C., personally known to me to be the same person whose name is subscribed to the within instrument, appeared
before me this day in person and acknowledged that as such President and CEO, he signed and delivered the said instrument of writing for said limited liability company as his free and voluntary act and as the free and voluntary act and deed of said
corporation, for the uses and purposes therein set forth. 
 GIVEN under my hand and Notarial Seal this
19th day of March, 2012. 

 

									
					
		 		 		 		 	/s/ Jose Rodriguez
		 		 		 		 	  Notary Public
	 OFFICIAL SEAL
 JOSE RODRIGUEZ
	 		 		 		 	My Commission Expires:
	 NOTARY PUBLIC – STATE OF ILLINOIS

MY COMMISSION EXPIRES 09/28/13
	 		 		 		 	  9/28/2013

 Acknowledgment Page to First Amendment to Real Property Mortgage 

 ACKNOWLEDGMENT 

 

			
	STATE OF ILLINOIS	 	)
		 	) SS.
	COUNTY OF COOK	 	)

 I, Anjanette Deniece Winners, a Notary Public in and for said County, in the State aforesaid, DO HEREBY
CERTIFY that William Kennedy, personally known to me to be the Vice President of BMO HARRIS BANK N.A., personally known to me to be the same person whose name is subscribed to the within instrument, appeared before me this day in person and
acknowledged that as such Vice President, he/she signed and delivered the said instrument of writing for said bank as his/her free and voluntary act and as the free and voluntary act and deed of said bank, for the uses and purposes therein set
forth. 
 GIVEN under my hand and Notarial Seal this 20th day of March, 2012. 

 

									
					
		 		 		 		 	/s/ Anjanette Deniece Winners
		 		 		 		 	  Notary Public
	 Official Seal
 Anjanette Deniece Winners
	 		 		 		 	My Commission Expires:
	 Notary Public State of Illinois
 My Commission Expires 04/15/2013
	 		 		 		 	  April 15, 2013

 Acknowledgment Page to First Amendment to Real Property Mortgage 

 EXHIBIT A 
 Legal Description 
 Property Address: 655 Wheat Lane, Wood Dale, Illinois

 Permanent Real Estate Tax Index Number: 03-09-204-015 
 LOT 225-1 IN FOREST CREEK UNIT 2B, BEING A RESUBDIVISION OF LOTS 225, 226, 227 AND THE NORTH 10 FEET OF LOT 228 IN FOREST CREEK UNIT 2, IN SECTION 9, TOWNSHIP 40 NORTH, RANGE 11, EAST OF THE THIRD
PRINCIPAL MERIDIAN, ACCORDING TO THE PLAT OF UNIT 2B RECORDED APRIL 29, 1983 AS DOCUMENT R83-25062 IN DUPAGE COUNTY, ILLINOIS.Employment Agreement

 Exhibit 10.13 
 EMPLOYMENT AGREEMENT 
 THIS EMPLOYMENT AGREEMENT (the
“Agreement”), dated as of November 1, 2011 (the “Effective Time”) between David J. Keller (the “Executive”) and Lumos Networks Operating Company, a Delaware corporation, and Lumos Networks Corp., a
Delaware corporation (“Holdings”) (and collectively with Lumos Networks Operating Company, the “Company”), recites and provides as follows: 
 WHEREAS, the Company considers it essential to the best interests of its shareholders to foster the continuing employment of its key management personnel; 

WHEREAS, the Board of Directors of the Company (the “Board”) expects that the Executive will make substantial
contributions to the growth and prospects of the Company; and 
 WHEREAS, the Executive will serve the Company in reliance upon
the undertakings of the Company contained herein. 
 NOW, THEREFORE, in consideration of the foregoing premises and the mutual
covenants herein, the receipt and sufficiency of which are hereby acknowledged by each of the parties, the Company and the Executive agree as follows: 
 1. Employment. 
 (a) Position. On the terms and
subject to the conditions set forth herein, the Company agrees to employ the Executive as Senior Vice President throughout the Employment Term (as defined below). At the request of the Board and without additional compensation, the Executive shall
also serve as an officer and/or director of any or all of the subsidiaries of the Company. 
 (b) Duties and
Responsibilities. The Executive shall have such duties and responsibilities that are consistent with the Executive’s position as the Board determines and shall perform such duties and carry out such responsibilities to the best of the
Executive’s ability for the purpose of advancing the business of the Company and its subsidiaries. Subject to the provisions of Section 1(c) below, during the Employment Term the Executive shall devote the Executive’s full business
time, skill and attention to the business of the Company and its subsidiaries, and, except as specifically approved by the Board, shall not engage in any other business activity or have any other business affiliation. 

(c) Other Activities. Anything in this Agreement to the contrary notwithstanding, as part of the Executive’s business efforts
and duties on behalf of the Company, the Executive may participate fully in social, charitable and civic activities, and, if specifically approved by the Board, the Executive may serve on the boards of directors of other companies, provided
that such activities do not unreasonably interfere with the performance of and do not involve a conflict of interest with the Executive’s duties or responsibilities hereunder. 

2. Employment Term. The “Employment Term” hereunder shall continue in full force and effect until
December 31, 2012 unless terminated earlier pursuant to the terms and 

 
conditions of this Agreement. Thereafter, the Employment Term will renew hereunder automatically for successive one-year periods unless either party gives written notice to the other not less
than six (6) months prior to the end of Employment Term hereof (or any subsequent anniversary, as the case may be) that such party does not wish the Employment Term to be so extended, and under such circumstances, the Employment Term and this
Agreement will terminate by its terms, and without liability to either party, on December 31, 2012 (or such subsequent anniversary, as the case may be). Notwithstanding the foregoing, upon the occurrence of a “Change in Control” (as
such term is defined in Section 4(e)(iv)), the Employment Term shall be automatically extended so that the Employment Term shall continue in full force and effect until the date which is twenty-four (24) months from the date of a Change in
Control and thereafter will renew automatically as of such date and successive one-year periods thereafter, unless prior notice is given, as provided above. 
 3. Compensation. During the Employment Term, the Company will pay and/or otherwise provide the Executive with compensation and related benefits as follows: 

(a) Base Salary. The Company agrees to pay the Executive, for services rendered hereunder, a base salary at the annual rate of
$175,898 (the “Base Salary”). The Executive’s Base Salary will be reviewed annually throughout the Employment Term by the Compensation Committee of the Board. Notwithstanding anything in this Agreement to the contrary, the
Company may reduce the Executive’s Base Salary by up to ten percent (10%) during the Employment Term, but only as part of a salary reduction program pursuant to which the Base Salaries of the Chief Executive Officer, all Executive Vice
Presidents and all Senior Vice Presidents who have been designated as ‘Executive Officers’ by the Board are reduced by the same percentage at the same time and for the same period of time. The Base Salary shall be payable in equal periodic
installments, not less frequently than monthly, less any sums which may be required to be deducted or withheld under applicable provisions of law. The Base Salary for any partial year shall be prorated based upon the number of days elapsed in such
year. 
 (b) Stock-Based Incentive Compensation. The Executive shall be eligible to participate in the Company’s
stock-based incentive compensation plan pursuant to its terms (“Stock-Based Incentive Payment”). 
 (c) Term
Incentive Plan and Commission Payments. The Executive shall be eligible to participate in the Company’s team incentive plan with an annual incentive target established by the Board (“Incentive Payment”), subject to
achievement of such program’s objectives and final approval of the Board. Notwithstanding the foregoing or the terms of the team incentive plan, the full Incentive Payment the Executive is eligible to receive under the team incentive plan based
on objective performance factors must be paid and cannot be reduced or eliminated as a result of individual performance factors other than as a result of a good faith determination by the Board. The Executive shall be eligible to receive commission
payments at an annual incentive target established by the Board (“Commission Payments”), subject to achievement of objectives. Notwithstanding the foregoing, the combined target Incentive Payment and target Commission Payments shall
equal seventy percent (70%) of the Executive’s Base Salary. The Incentive Payment and/or Commission Payments, if any, and shall be payable on or before the March 15 immediately following the end of the year in which the Incentive
Payment and/or Commission Payment vests and is no longer subject to a substantial risk of forfeiture within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”). 

  
 2 

 (d) Benefits. During the Employment Term (and thereafter to the extent expressly
provided herein), the Executive shall be entitled to participate in all of the Company’s employee benefit plans applicable to the Company’s comparable senior executives according to the terms of those plans. In addition to the foregoing
compensation, the Company agrees that during the Employment Term it shall provide to the Executive a monthly automobile allowance pursuant to Company policy payable in equal periodic installments, not less frequently than monthly, less any sums
which may be required to be deducted or withheld under applicable provisions of law. 
 (e) Vacation. The Executive shall
be entitled to a minimum of four (4) weeks of vacation annually, during which time the Executive shall receive compensation in accordance with the terms of this Agreement. 

(f) Term Life Insurance. During the Employment Term, and in addition to any other benefits to which Executive shall be entitled,
the Company agrees to pay the premiums on a term life insurance contract covering the Executive that pays a death benefit of at least $304,000. The Company in its discretion shall select the term life insurance contract on which it will pay the
premiums; but the Executive shall be the owner of such contract and will be or will designate the beneficiary of such contract. The Company (i) will include and report such premium payments in the Executive’s taxable income to the extent
required under applicable law and (ii) also will pay to the Executive an additional payment in an amount such that after payment by the Executive of all taxes imposed on the additional payment, the Executive retains an amount of the additional
payment equal to the taxes imposed upon the Executive with respect to the Company’s payment of the premiums on the term life insurance contract. The amount of the additional payment shall be determined based on the Executive’s likely
effective rates of federal, state and local income taxation for the calendar year in which the additional payment is to be made, net of the likely reduction in federal income taxes that is obtained from any deduction of state and local taxes. Such
premium payments and additional payments for taxes shall be paid on or before the March 15 immediately following the end of the year in which the premiums on such term life insurance contract accrued (provided the Executive was employed at such
time). Executive agrees, for purposes of calculating the amount of the additional payment, to provide the Company such information as the Company may reasonably request to determine the amount of the additional payment and to cooperate with the
Company in good faith in order to effectively make such determination. The Company shall hold all such information secret and confidential and shall not, without the prior written consent of the Executive or as otherwise may be required by law or
legal process, communicate or divulge such information to anyone other than the Company and those in need of such information for purposes of determining the amount of the additional payment. Notwithstanding any other provision of this Agreement, in
the event the term life insurance contract described herein extends beyond the termination of Executive’s employment with the Company, the Executive, and not the Company, shall be obligated to pay the premiums on such term life insurance
contract accruing after the Executive’s termination of employment with the Company. Notwithstanding any other provision of this Agreement, if the Company’s preferred insurance providers, for whatever reason, are unwilling to insure the
Executive on commercially reasonable terms, the Company will pay to the Executive an annual 

  
 3 

 
amount equal to the average life insurance premium paid to insure other Executives on a prorated cost per thousand basis (grossed up as described above) in lieu of the term life insurance
described in this paragraph. Such annual amount (prorated if the Executive is not employed for the full year) shall be paid on or before the March 15 immediately following the end of the year in which such term life insurance contract otherwise
would have been provided. 
 4. Termination of Employment. 

(a) By the Company For Cause. The Company may terminate the Executive’s employment under this Agreement at any time for Cause
(as defined in Section 4(e)) and shall provide written notice of termination to the Executive (which notice shall specify in reasonable detail the basis upon which such termination is made). Notwithstanding the foregoing, in no event, shall any
termination of employment be deemed for Cause unless the Executive’s employment is terminated within one hundred eighty (180) days of when the Company learns of the act or conduct that constitutes Cause and the Board of Directors concludes
that the situation warrants a determination that the Executive’s employment terminated for Cause. In the event the Executive’s employment is terminated for Cause, all provisions of this Agreement (other than Sections 5 through 15 hereof)
and the Employment Term shall be terminated; provided, however, that such termination shall not divest the Executive of any previously vested benefit or right unless the terms of such vested benefit or right specifically require such
divestiture where the Executive’s employment is terminated for Cause. In addition, the Executive shall be entitled to payment of the Executive’s earned and unpaid Base Salary to the date of termination payable as described above. The
Executive also shall be entitled to unreimbursed business and entertainment expenses in accordance with, and payable at the same time set forth in, the Company’s policy (but no later than thirty (30) days after the date of termination),
and unreimbursed medical, dental and other employee benefit expenses payable in accordance with the Company’s applicable employee benefit plans (the payments and benefits described in this subsection (a) herein after referred to as the
“Standard Termination Payments”). 
 (b) Upon Death or Disability. If the Executive
dies, all provisions of Section 3 of this Agreement (other than rights or benefits arising as a result of such death) and the Employment Term shall be automatically terminated; provided, however, that an amount equal to the earned and
unpaid Incentive Payments to the date of death and the Standard Termination Payments shall be paid, as described above, to the Executive’s surviving spouse or, if none, the Executive’s estate (as set forth above), and the death benefits
under the Company’s employee benefit plans shall be paid to the Executive’s beneficiary or beneficiaries as properly designated in writing by the Executive, in accordance with the Company’s applicable employee benefit plans. If the
Executive is unable to perform the essential functions of the Executive’s job under this Agreement, with or without reasonable accommodation, by reason of physical or mental disability or incapacity (“Disability”) and such
disability or incapacity shall have continued for any period aggregating six (6) months within any twelve (12) consecutive months, the Company may terminate the Executive’s employment, this Agreement and the Employment Term at any
time thereafter. In such event, the Executive shall be entitled to receive the Executive’s normal compensation hereunder during said time of disability or incapacity, and shall thereafter be entitled to receive the “Disability Incentive
Payment” (as described in the penultimate sentence of this subsection (b)), payable no later than two and a half (2  1/2) months after the Company terminates the Executive’s employment, and the earned and unpaid Incentive 

  
 4 

 
Payments to the date of termination of the Executive’s employment and the Standard Termination Payments, payable as described above. The portion of the payment representing the Disability
Incentive Payment shall be paid in a lump sum determined on a net present value basis, using a reasonable discount rate determined by the Board. The Disability Incentive Payment shall be equal to the target Incentive Payment that the Executive would
have been eligible to receive for the year in which the Employment Term is terminated multiplied by a fraction, the numerator of which is the number of days in such year before and including the day of termination of the Employment Term and the
denominator of which is the total number of days in such year. 
 (c) By the Company Without Cause. 

(i) The Company may terminate the Executive’s employment under this Agreement at any time without Cause (for purposes of clarity,
it is acknowledged that expiration of the Employment Term (including notice of non-renewal) shall not be considered a termination without Cause), and other than by reason of the Executive’s death or disability. The Company shall provide written
notice of termination to the Executive, which notice shall specify the effective date of such termination and that the termination is without Cause (the “Termination Date”). If the Termination Date is later than the date of the
notice, then from the date of the notice through the Termination Date, the Executive shall continue to perform the normal duties of the Executive’s employment hereunder, and shall be entitled to receive when due all compensation and benefits
applicable to the Executive hereunder, payable as described above. Thereafter, conditioned upon the Executive executing and not revoking an effective general release in favor of the Company, the Board and their affiliates, in a form mutually
acceptable to both parties hereto, within sixty (60) days after termination of the Executive’s employment, the Company shall pay the Executive the amounts set forth in this subsection (c) (except for the amounts set forth in
subsection (c)(iii) which shall be paid as set forth below regardless of whether the Executive executes such release). Under such circumstances, subject to subsection (c)(v) and Section 19 below, the Company shall pay the Executive an amount
equal to fifty percent (50%) of the Executive’s Base Salary for a period of twenty-four (24) months beginning immediately after the Termination Date (the “Termination Period”), in such periodic installments as were
being paid immediately prior to the Termination Date, no less frequently than monthly, less any sums which may be required to be deducted or withheld under applicable provisions of law. 

(ii) Subject to subsection (c)(v) and Section 19 below, the Company shall pay the Executive a lump sum,
determined on a net present value basis, using a reasonable discount rate determined by the Board, equal to the full target Incentive Payment for the year that includes the Termination Date multiplied by a fraction, the numerator of which is the
number of weeks in the Termination Period and the denominator of which is fifty-two (52), no later than two and a half (2  1/2) months after the Termination Date. 
 (iii) The
Company shall also be obligated to pay to the Executive the earned and unpaid Incentive Payments to the Termination Date and the Standard Termination Payments (as described above). 

  
 5 

 (iv) During the Termination Period, subject to subsection (c)(v) and Section 19 below,
the Executive and the Executive’s dependents will be entitled to continued participation in the “employee welfare benefit plans” (as defined in Section 3(1) of the Employee Retirement Income Security Act of 1974) in which the
Executive and the Executive’s dependents participated on the Executive’s Termination Date with respect to any such plans for which such continued participation is allowed pursuant to applicable law and the terms of the plan on the same
terms as active employees (with the Company to pay or reimburse the Executive for such continued participation on a monthly basis). In lieu of coverage for which such continued participation is not allowed, subject to subsection (c)(v) and
Section 19 below, the Executive will be reimbursed, on a net after-tax basis, on a monthly basis, for the cost of individual insurance coverage for the Executive and the Executive’s dependents under a policy or policies that provide
benefits (other than disability coverage) not less favorable than the benefits (other than disability coverage) provided under such employee welfare benefit plans. Notwithstanding the foregoing, the coverage or reimbursements for coverage provided
under this subsection (iv) shall cease if the Executive and/or the Executive’s dependents become covered under an employee welfare benefit plan of another employer of the Executive that provides the same or similar type of benefits.

 (v) Notwithstanding any of the foregoing provisions, any payments to be made, or benefits to be
delivered, under this subsection (c) (except for the amounts set forth in subsection (c)(iii) above) within the sixty (60) days after the Termination Date shall be accumulated and paid in a lump sum on the first payroll date occurring more
than sixty (60) days, and less than two and a half (2  1/2) months, after the Termination Date, provided the Executive executes the release described above and the applicable revocation period thereunder expires within the time described above without the
Executive having elected to revoke the release. Any benefits to be provided to the Executive during such time may be provided at the Executive’s expense with the Executive having the right to reimbursement of such amounts at the time described
above. 
 (d) By the Executive. The Executive may terminate the Executive’s employment, and any further
obligations which the Executive may have to perform services on behalf of the Company hereunder at any time after the date hereof; by sending written notice of termination to the Company not less than sixty (60) days prior to the effective date
of such termination. During such sixty (60) day period, the Executive shall continue to perform the normal duties of the Executive’s employment hereunder and shall be entitled to receive when due all compensation and benefits applicable to
the Executive hereunder, payable as described above. Except as provided below, if the Executive shall elect to terminate the Executive’s employment hereunder (other than as a result of the Executive’s death or disability), then the
Executive shall remain vested in all vested benefits provided for hereunder or under any benefit plan of the Company in which the Executive is a participant and shall be entitled to receive the earned and unpaid Incentive Payments to the date of
termination of the Executive’s employment and the Standard Termination Payments (as set forth above), but the Company shall have no further obligation to make payments or provide benefits to the Executive under Section 3 hereof. Anything
in this Agreement to the contrary notwithstanding, the termination of the Executive’s employment by the Executive for Good Reason (as defined in Section 4(e)), shall be deemed to be a termination of the Executive’s employment without
Cause by the Company for purposes of this Agreement, and the Executive shall be entitled to the payments and benefits set forth in 

  
 6 

 
Section 4(c) above, payable as described above, subject to the Executive executing and not revoking a general release in favor of the Company, the Board and their affiliates, in a form
mutually acceptable to both parties hereto, within sixty (60) days after the termination of Executive’s employment. Notwithstanding the foregoing, in no event shall any termination of employment by the Executive be deemed for Good Reason
unless the Executive terminates employment within one hundred eighty (180) days of when the Executive learns of the act or conduct that constitutes Good Reason. 
 (e) Definitions. For purposes of this Agreement, the following definitions will apply: 
 (i) Cause. The term “Cause” means: (i) gross or willful misconduct; (ii) willful and repeated failure to comply with the lawful directives of the Board or any supervisory
personnel; (iii) any criminal act or act of dishonesty or willful misconduct that has a material adverse impact on the property, operations, business or reputation of the Company or its subsidiaries or any act of fraud, dishonesty or
misappropriation involving the Company or its subsidiaries; (iv) any conviction or plea of guilty or nolo contendere to a felony (other than traffic offenses) or a crime involving dishonesty; (v) the material breach of the
terms of any confidentiality, non-competition, non-solicitation or employment agreement the employee has with the Company or its subsidiaries; (vi) acts of malfeasance or negligence in a matter of material importance to the Company or its
subsidiaries; (vii) the material failure to perform the duties and responsibilities of employee’s position after written notice and a reasonable opportunity to cure (not to exceed ninety (90) days); (viii) grossly negligent
conduct; or (ix) activities materially damaging to the property, operations, business or reputation of the Company or its subsidiaries (it being understood that conduct or activities pursuant to employee’s exercise of good faith business
judgment shall not be in violation of this Section 4(e)(i). 
 (ii) Good Reason. “Good Reason” means,
after written notice by the Executive to the Board, and a reasonable opportunity for the Company to cure (not to exceed forty-five (45) days), that (i) the Executive’s Base Salary is not paid or is reduced by more than ten percent
(10%) in the aggregate or other than as part of a salary reduction program pursuant to which the Base Salaries of the Chief Executive Officer, all Executive Vice Presidents and all Senior Vice Presidents who have been designated as
‘Executive Officers’ by the Board are reduced by the same percentage at the same time and for the same period of time, (ii) the Executive’s target Incentive Payment is reduced, (iii) the Executive’s job duties and
responsibilities are diminished; provided that so long as the Executive retains the title Senior Vice President or higher and remains within the Company’s sales or marketing organization, a division of, or change in, responsibilities, or change
in title, of the Executive shall not constitute a “diminution” under this subparagraph (iii), (iv) the Executive is required to relocate to a facility more than fifty (50) miles from Waynesboro, Virginia, (v) the Executive
is not provided benefits (e.g., health insurance) that are comparable in all material respects to those previously provided to the Executive, (vi) the Executive is directed by the Board or an officer of the Company or an affiliate (or
the Company’s successor or an affiliate thereof) to engage in conduct that Company counsel, or mutually agreed upon counsel if requested by the Executive, has advised is likely to be illegal and that such counsel states with specificity why
such direction is likely to be illegal (including a proposal for modification of such direction which in counsel’s opinion would not be likely to be illegal), or (vii) the Executive is directed by the Board or an officer of the Company

  
 7 

 
or an affiliate (or the Company’s successor or an affiliate thereof) to refrain from acting and Company counsel, or mutually agreed upon counsel if requested by the Executive, has advised
that such failure to act is likely to be illegal and that such counsel states with specificity why such direction is likely to be illegal (including a proposal for modification of such direction which in counsel’s opinion would not be likely to
be illegal). If the Executive is directed to engage in conduct that he reasonably believes is likely to be illegal or to refrain from acting and the Executive reasonably believes that such failure to act is likely to be illegal, the Executive can
express such reservations to the Board or directing officer, and the Company shall, at its expense, engage Company counsel, or mutually agreed upon counsel if requested by the Executive, to advise as to whether such conduct or failure to act is
likely to be illegal. Subject to the last sentence of Section 4(d) hereof, if any of the events occur that would entitle the Executive to terminate the Executive’s employment for Good Reason hereunder and the Executive does not exercise
such right to terminate the Executive’s employment, any such failure shall not operate to waive the Executive’s right to terminate the Executive’s employment for that or any subsequent action or actions, whether similar or dissimilar,
that would constitute Good Reason. For purposes of clarity, it is acknowledged that expiration of the Employment Term (including notice of non-renewal) shall not be considered “Good Reason” hereunder. 

(iii) Change in Control. “Change in Control” means any of the following described in clauses (I) through (IV)
below, provided that a “Change in Control” shall not mean any event listed in clauses (I) through (IV) that occurs directly or indirectly as a result of or in connection with Quadrangle Capital Partners LP, a Delaware limited
partnership, Quadrangle Select Partners LP, a Delaware limited partnership, Quadrangle Capital Partners – A LP, a Delaware limited partnership, and Quadrangle NTELOS Holdings II LP, a Delaware limited partnership (collectively the
“Quadrangle Entities”) and/or their Affiliates, related funds and co-investors becoming the owner or “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of Holdings
representing more than fifty-one percent (51%) of the combined voting power of the then outstanding securities, or the shareholders of Holdings approve a merger, consolidation or reorganization of Holdings with any other company and such
merger, consolidation or reorganization is consummated, and after such merger, consolidation or reorganization any of the Quadrangle Entities or their respective Affiliates, related funds and co-investors acquire more than fifty-one percent
(51%) of the combined voting power of Holdings’ then outstanding securities: 
  

	 	(I)	any Person is or becomes the owner or “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of Holdings
representing more than fifty-one percent (51%) of the combined voting power of the then outstanding securities; 

  

	 	(II)	consummation of a merger, consolidation or reorganization of Holdings with any other company, or a sale of all or substantially all the assets of Holdings (a
“Transaction”), other than (i) a Transaction that would result in the voting securities of Holdings outstanding immediately prior thereto continuing to represent either directly or indirectly more than fifty-one percent (51%) of
the combined voting power of the then outstanding securities of Holdings or such surviving or purchasing entity; 

  
 8 

	 	(III)	the shareholders of Holdings approve a plan of complete liquidation of Holdings and such liquidation is consummated; or 

 

	 	(IV)	During any period of twelve (12) consecutive months commencing on the Effective Time, (i) the individuals who constituted the Board of Directors of Holdings
on the Effective Time, and (ii) any new director who either (A) was elected by the Board of Directors of Holdings or nominated for election by Holdings’ stockholders and whose election or nomination was approved by a vote of more than
fifty percent (50%) of the directors then still in office who either were directors on the Effective Time, or whose election or nomination for election was previously so approved or (B) was appointed to the Board of Directors of Holdings
pursuant to the designation of Quadrangle Entities, cease for any reason to constitute a majority of the Board. 

For purposes of the foregoing, “Person” means an individual, corporation, limited liability company, partnership, association,
trust or other entity or organization, including a government or political subdivision or an agency or instrumentality thereof. 
 For purposes of the foregoing, “Affiliate” of any specified Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect common control with such
specified Person. 
 5. Confidential Information. The Executive understands and acknowledges that during the
Executive’s employment with the Company, the Executive has been and will be making use of, acquiring or adding to the Company’s Confidential Information (as defined below). In order to protect the Confidential Information, the Executive
will not, during the Executive’s employment with the Company or at any time thereafter, in any way utilize any of the Confidential Information except in connection with the Executive’s employment by the Company. The Executive will not at
any time use any Confidential Information for the Executive’s own benefit or the benefit of any person except the Company. At the end of the Executive’s employment with the Company, the Executive will surrender and return to the Company
any and all Confidential Information in the Executive’s possession or control, as well as any other Company property that is in the Executive’s possession or control. The Executive acknowledges and agrees that any breach of this
Section 5 would be a material breach of this Agreement. The term “Confidential Information” shall mean any information that is confidential and proprietary to the Company and is not known or made available to the public (other than as
a result of a breach of this Agreement by the Executive), including but not limited to the following general categories: 
 (i)
trade secrets; 

  
 9 

 (ii) lists and other information about current and prospective customers; 

(iii) plans or strategies for sales, marketing, business development, or system build-out; 

(iv) sales and account records; 
 (v) prices or pricing strategy or information; 
 (vi) current and proposed
advertising and promotional programs; 
 (vii) engineering and technical data; 

(viii) the Company’s methods, systems, techniques, procedures, designs, formulae, inventions and know-how; personnel information;

 (ix) legal advice and strategies; and 
 (x) other information of a similar nature not known or made available to the public or the Company’s Competitors (as defined in Section 8). 

Confidential Information includes any such information that the Executive may prepare or create during the Executive’s employment
with the Company, as well as such information that has been or may be created or prepared by others. This promise of confidentiality is in addition to any common law or statutory rights of the Company to prevent disclosure of its Trade Secrets
and/or Confidential Information. 
 6. Return of Documents. All writings, records and other documents and things
containing any Confidential Information in the Executive’s custody or possession shall be the exclusive property of the Company, shall not be copied and/or removed from the premises of the Company, except in pursuit of the business of the
Company, and shall be delivered to the Company, without retaining any copies, upon the termination of the Executive’s employment or at any time as requested by the Company. 

7. Reaffirm Obligations. Upon termination of the Executive’s employment with the Company, the Executive shall, if
requested by the Company, reaffirm in writing Employee’s recognition of the importance of maintaining the confidentiality of the Company’s proprietary information and trade secrets and reaffirm all of the obligations set forth in
Section 5 of this Agreement. 
 8. Non-Compete; Non-Solicitation. The Executive agrees that: 

(a) While the Executive is employed by the Company, the Executive will not, directly or indirectly, compete with the business conducted
by the Company, and the Executive will not, directly or indirectly, provide any services to a Competitor. 

  
 10 

 (b) For a period of twenty-four (24) months (the “Non-Competition
Period”) after the Executive’s employment with the Company ends for any reason, the Executive will not compete with the Company by performing or causing to be performed the same or similar types of duties or services that the Executive
performed for the Company for a Competitor of the Company in any capacity whatsoever, directly or indirectly, within any city or county of the continental United States in which, at the time the Executive’s employment with the Company ends, the
Company provides services or products, offers to provide services or products, or has documented plans to provide or offer to provide services or products within the Non-Competition Period provided that the Executive has knowledge of those plans at
the time the Executive’s employment with the Company ends (the “Service Area”). Additionally, the Executive agrees that during the Non-Competition Period, the Executive will not, directly or indirectly, sell, attempt to sell,
provide or attempt to provide, any wireline telecommunications services, including but not limited to internet services, to any person or entity who was a customer or an actively sought prospective customer of the Company, at any time during the
Executive’s employment with the Company. The restrictions set forth above shall immediately terminate and shall be of no further force or effect in the event of a default by the Company in the payment of any consideration, if any, to which the
Executive is entitled under Section 8(i) below, which default is not cured within thirty (30) days after written notice thereof. The Executive acknowledges and agrees that because of the nature of the Company’s business, the nature of
the Executive’s job responsibilities, and the nature of the Confidential Information and Trade Secrets of the Company which the Company will give the Executive access to, any breach of this provision by the Executive would result in the
inevitable disclosure of the Company’s Trade Secrets and Confidential Information to its direct competitors. 
 (c) While
the Executive is employed by the Company and during the Non-Competition Period, the Executive will not, directly or indirectly, solicit or encourage any employee of the Company to terminate employment with the Company; hire, or cause to be hired,
for any employment by a Competitor, any person who within the preceding twelve (12) month period has been employed by the Company, or assist any other person, firm, or corporation to do any of the acts described in this subsection (c).

 (d) The Executive acknowledges and agrees that the Company has a legitimate business interest in preventing him from engaging
in activities competitive with it as described in this Section 8 and that any breach of this Section 8 would constitute a material breach of this Section 8 and this Agreement. 

(e) The Company may notify anyone employing the Executive or evidencing an intention to employ the Executive during the Non-Competition
Period as to the existence and provisions of this Agreement and may provide such person or organization a copy of this Agreement. The Executive agrees that the Executive will provide the Company with a notice containing the identity of any employer
the Executive plans to go to work for during the Non-Competition Period along with the Executive’s anticipated job title, anticipated job duties with any such employer, and anticipated start date. The Company will analyze the proposed
employment and make a determination as to whether it would violate this Section 8. The Company will notify the Executive in writing within ten (10) business days following the receipt of the Executive’s notice as to whether or not the
Company objects to the proposed employment. The Executive further agrees to provide a copy of this Agreement to anyone who employs the Executive during the Non-Competition Period. 

  
 11 

 (f) The Executive acknowledges and agrees that this Section 8 is intended to limit the
Executive’s right to compete only to the extent necessary to protect the Company’s legitimate business interest. The Executive acknowledges and agrees that the Executive will be reasonably able to earn a livelihood without violating the
terms of this Section 8. If any of the provisions of this Section 8 should ever be deemed to exceed the time, geographic area, or activity limitations permitted by applicable law, the Executive agrees that such provisions may be reformed
to the maximum time, geographic area and activity limitations permitted by applicable law, and the Executive authorizes a court or other trier of fact having jurisdiction to so reform such provisions. In the event the Executive breaches any of the
restrictions or provisions set forth in this Section 8, the Executive waives and forfeits any and all rights to any further benefits under this Agreement, including but not limited to the consideration set forth in subsection (i) below as
well as any additional payments, compensation, benefits or severance pay he may otherwise be entitled to receive under this Agreement. Additionally, in the event the Executive breaches any of the restrictions or provisions set forth in this
Section 8, the Executive agrees to repay the Company for any of the consideration set forth in subsection (i) below that the Executive received prior to the breach as well as any additional payments, compensation, benefits or severance pay
the Executive might otherwise have previously received under Section 4(c) of this Agreement. 
 (g) For purposes of this
Section 8, the following definitions will apply: 
 (i) “Directly or indirectly” as used in this Agreement
includes an interest in or participation in a business as an individual, partner, shareholder, owner, director, officer, principal, agent, employee, consultant, trustee, lender of money, or in any other capacity or relation whatsoever. The term
includes actions taken on behalf of the Executive or on behalf of any other person. “Directly or indirectly” does not include the ownership of less than five percent (5%) of the outstanding shares of any corporation, if such shares
are publicly traded in the over-the-counter market or listed on a national securities exchange. 
 (ii) “Competitor”
as used in this Agreement means any person, firm, association, partnership, corporation or other entity that competes or attempts to compete with the Company by providing or offering to provide wireline telecommunications services, including but not
limited to internet services, within any city or county in which the Company provides or offers those services or products. 

(h) Notwithstanding any other provision of this Section 8, the Executive will not be considered to have violated any prohibition
against competing with the Company for engaging in any of the following activities: (1) being employed or retained by (i) any parent, subsidiary or affiliate organization of any Competitor where that parent, subsidiary or affiliate
organization does not itself, and the Executive’s employment will not cause the Executive to, compete or attempt to compete with the Company by providing or offering to provide wireline telecommunications services, including but not limited to
internet services, within the Service Area or (ii) any Competitor, directly or indirectly, so long as Executive’s employment or service does not relate to (A) working principally within the Service Area or (B) activities that
would 

  
 12 

 
benefit the Competitor principally within the Service Area; or (2) working or providing services within the Service Area so long as the Executive’s employment or service does not relate
to the type of services provided or offered by the Company within that Service Area or to services for which the Company has documented plans to provide, offer or supply within that Service Area at the time of Executive’s termination of
employment; or (3) selling or attempting to sell wireline telecommunications services, including but not limited to internet services, so long as the services or products, which the Executive is selling or attempting to sell to a customer, do
not relate to the type of services or products provided or offered by the Company to such customer or for which the Company has documented plans to provide, offer or supply to such customer at the time of Executive’s termination of employment;
provided, however, that the Executive is nevertheless prohibited from: (i) selling, attempting to sell, and providing or attempting to provide, to any person who was a customer, or who was actively sought as a customer, of the
Company at the time of Executive’s termination of employment any wireline telecommunications services, including but not limited to internet services, that are the type of services or products that the Company sold, attempted to sell or
provided or attempted to provide to such customer as described in (b) above and (ii) soliciting or encouraging any employee of the Company to terminate employment or taking any other of the prohibited actions as described in
(c) above. 
 (i) In consideration of the Executive’s undertakings set forth in this
Section 8 with respect to periods after termination of employment, but only in the event that the Executive is entitled to the benefits and payments under Section 4(c) above, subject to subsection 4(c)(v) and Section 19 below, the
Company will pay the Executive an amount equal to fifty percent (50%) of his Base Salary during the Non-Competition Period, in such periodic installments, not less frequently than monthly, as his Base Salary was being paid immediately prior to
termination of employment, with a lump sum payment on the sixtieth (60th) day
after termination of the Executive’s employment equal to the payments the Executive would have received had the payments commenced immediately following termination of the Executive’s employment and subsequent installments in equal
periodic installments thereafter, no less frequently than monthly, less any sums which may be required to be deducted or withheld under applicable provisions of law. In the event the Executive is not entitled to the benefits and payments under
Section 4(c) above, the Company will not pay Executive any of the consideration set forth in this Section 8(i). 
 (j)
In the event the Executive breaches any of the restrictions or provisions set forth in this Section 8, the Executive waives and forfeits any and all rights to any further payments under subsection (i) or otherwise under this Agreement and
agrees to return to the Company the gross amount of any amounts previously paid, and the value of any benefits previously provided under this Agreement. This waiver and forfeiture shall be effective even in the event a court refuses to enforce the
restrictions set forth in this Section 8. 
 9. Representations. The Executive represents and warrants to the
Company that the execution, delivery and performance of this Agreement by the Executive does not conflict with, or result in the breach by the Executive or violation by the Executive of, any other agreement to which the Executive is a party or by
which the Executive is bound. The Executive hereby agrees to indemnify the Company, its officers, directors and shareholders and hold them harmless from and against any liability (including, without limitation, reasonable attorneys’ fees and
expenses) 

  
 13 

 
which they may at any time suffer or incur arising out of or relating to any breach of an agreement, representation or warranty made by the Executive herein. The Company represents and warrants
that this Agreement and the transactions contemplated hereby have been duly authorized by the Company by all necessary corporate and shareholder action, and that the execution, delivery and performance of this Agreement by the Company does not
conflict with, or result in the breach or violation by the Company of, its Certificate of Incorporation, Articles of Incorporation or Bylaws or any other agreement to which the Company is a party or by which it is bound. The Company hereby agrees to
indemnify the Executive and hold the Executive harmless from and against any liability (including, without limitation, reasonable attorneys’ fees and expenses) which the Executive may at any time suffer or incur arising out of or relating to
any breach of an agreement, representation or warranty made by the Company herein. Any indemnity to be paid hereunder shall be payable within thirty (30) days after the Company and the Executive agree that such amounts are owed or there is a
final settlement or resolution of the claim or dispute for which the payments are required. 
 10. Remedies. The
parties hereto agree that the Company would suffer irreparable harm from a breach by the Executive of any of the covenants or agreements contained herein. Therefore, in the event of the actual or threatened breach by the Executive of any of the
provisions of this Agreement, the Company may, in addition and supplementary to other rights and remedies existing in its favor, apply to any court of law or equity of competent jurisdiction for specific performance and/or injunctive or other relief
in order to enforce or prevent any violation of the provisions hereof. The Executive agrees that if a lawsuit or other proceeding is brought to enforce the terms of this Agreement or determine the validity of its terms and the Company prevails, the
Company will be entitled to recover from the Executive its reasonable attorneys’ fees and court costs. The Executive agrees that these provisions are reasonable. 
 11. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Company and its affiliates and their successors and assigns, and shall be binding upon and
inure to the benefit of the Executive and the Executive’s legal representatives and assigns, provided that in no event shall the Executive’s obligations to perform services for the Company and its affiliates be delegated or
transferred by the Executive. The Company may assign or transfer its rights hereunder to a successor corporation in the event of a merger, consolidation, transfer or sale of all or substantially all of the assets of the Company’s business
(provided, however, that no such assignment or transfer shall have the effect of relieving the Company of any liability to the Executive hereunder or under any other agreement or document contemplated herein), but only if such
assignment or transfer does not result in employment terms, conditions, duties or responsibilities which are or may be materially different than the terms, conditions, duties or responsibilities of the Executive hereunder. If the Company assigns or
transfers its rights under this Agreement to a successor corporation, the Executive’s obligations under Section 8 of this Agreement will be construed and enforceable with respect to the business and geographic scope of the Company only and
will not be construed or enforceable with respect to the business and geographic scope of any successor corporation to which the Company’s rights may be assigned or transferred to the extent such business or geographic scope is greater than
that of the Company at the time of such assignment or transfer. The Executive may not transfer or assign the Executive’s rights and obligations under this Agreement 

  
 14 

 12. Modification or Waiver. No amendment, modification, waiver, termination or
cancellation of this Agreement shall be binding or effective for any purpose unless it is made in a writing signed by the party against whom enforcement of such amendment, modification, waiver, termination or cancellation is sought. No course of
dealing between or among the parties to this Agreement shall be deemed to affect or to modify, amend or discharge any provision or term of this Agreement. No delay on the part of the Company or the Executive in the exercise of any of their
respective rights or remedies shall operate as a waiver thereof, and no single or partial exercise by the Company or the Executive of any such right or remedy shall preclude other or further exercises thereof. A waiver of a right or remedy on any
one occasion shall not be construed as a bar to or waiver of any such right or remedy on any other occasion. 
 13.
Governing Law; Jurisdiction. This Agreement and all rights, remedies and obligations hereunder, including, but not limited to, matters of construction, validity and performance shall be governed by the laws of the Commonwealth of
Virginia without regard to its conflict of laws principles or rules. To the full extent lawful, each of the Company and the Executive hereby consents irrevocably to personal jurisdiction, service and venue in connection with any claim or controversy
arising out of this Agreement in the courts of the Commonwealth of Virginia located in Waynesboro, Virginia, and in the federal courts in the Western District of Virginia. 
 14. Excise Taxes. 
 (a) If any payment or distribution by the
Company or any affiliate to or for the benefit of the Executive, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise pursuant to or by reason of any other agreement, policy, plan, program or
arrangement, including without limitation any stock option, stock appreciation right or similar right, or the lapse or termination of any restriction on or the vesting or exercisability of any of the foregoing (a “Payment”), would
be subject to the excise tax imposed by Code Section 4999 or to any similar tax imposed by state or local law, or any interest or penalties with respect to such tax (such tax or taxes, together with any such interest and penalties, being
hereafter collectively referred to as the “Excise Tax”), then the benefits payable or provided under this Agreement (or other Payments as described above) shall be reduced (but not in excess of the amount of the benefits payable or
provided under this Agreement) if, and only to the extent that, such reduction will allow the Executive to receive a greater Net After Tax Amount than such Executive would receive absent such reduction. 

(b) The Accounting Firm (as defined below) will first determine the amount of any Parachute Payments (as defined below) that are payable
to the Executive. The Accounting Firm also will determine the Net After Tax Amount attributable to the Executive’s total Parachute Payments. 
 (c) The Accounting Firm will next determine the largest amount of payments that may be made to the Executive without subjecting the Executive to the Excise Tax (the “Capped Payments”).
Thereafter, the Accounting Firm will determine the Net After Tax Amount attributable to the Capped Payments. 

  
 15 

 (d) The Executive then will receive the total Parachute Payments or the total Capped
Payments, whichever provides the Executive with the higher Net After Tax Amount; however, if the reductions imposed under this Section 14 are in excess of the amount of benefits payable or provided under this Agreement, then the total Parachute
Payments will be adjusted by first reducing, on a pro rata basis, the amount of any noncash or cash benefits under this Agreement, then noncash or cash benefits under any other plan, agreement or arrangement, then any cash payments under this
Agreement and finally any cash payments under any other plan agreement or arrangement. The Accounting Firm will notify the Executive and the Company if it determines that the Parachute Payments must be reduced and will send the Executive and the
Company a copy of its detailed calculations supporting that determination. 
 (e) As a result of the uncertainty in the
application of Code Sections 280G and 4999 at the time that the Accounting Firm makes its determinations under this Section 14, it is possible that the Executive will have received Parachute Payments or Capped Payments in excess of the amount
that should have been paid or distributed (“Overpayments”), or that additional Parachute Payments or Capped Payments should be paid or distributed to the Executive (“Underpayments”). If the Accounting Firm
determines, based on either the assertion of a deficiency by the Internal Revenue Service against the Company or the Executive, which assertion the Accounting Firm believes has a high probability of success or controlling precedent or substantial
authority, that an Overpayment has been made, that Overpayment may, at the Executive’s discretion, be treated for all purposes as a loan ab initio that the Executive must repay to the Company immediately together with interest at the applicable
Federal rate under Code Section 7872; provided, however, that no loan will be deemed to have been made and no amount will be payable by the Executive to the Company unless, and then only to the extent that, the deemed loan and payment would
either reduce the amount on which the Executive is subject to tax under Code Section 4999 or generate a refund of tax imposed under Code Section 4999 and the Executive will receive a greater Net After Tax Amount than such Executive would
otherwise receive. If the Accounting Firm determines, based upon controlling precedent or substantial authority, that an Underpayment has occurred, the Accounting Firm will notify the Executive and the Company of that determination and the amount of
that Underpayment will be paid to the Executive promptly by the Company after such determination. 
 (f) For purposes of this
Section 14, the following terms shall have their respective meanings: 
 (i) “Accounting Firm” means the
independent accounting firm currently engaged by the Company, or a mutually agreed upon independent accounting firm if requested by the Executive; and 
 (ii) “Net After Tax Amount” means the amount of any Parachute Payments or Capped Payments, as applicable, net of taxes imposed under Code Sections 1, 3101 (b) and 4999 and any State
or local income taxes applicable to the Executive on the date of payment. The determination of the Net After Tax Amount shall be made using the highest combined effective rate imposed by the foregoing taxes on income of the same character as the
Parachute Payments or Capped Payments, as applicable, in effect on the date of payment. 

  
 16 

 (iii) “Parachute Payment” means a payment that is described in Code
Section 280G(b)(2), determined in accordance with Code Section 280G and the regulations promulgated or proposed thereunder. 
 (g) The fees and expenses of the Accounting Firm for its services in connection with the determinations and calculations contemplated by the preceding subsections shall be borne by the Company.

 (h) The Company and the Executive shall each provide the Accounting Firm access to and copies of any books, records and
documents in the possession of the Company or the Executive, as the case may be, reasonably requested by the Accounting Firm, and otherwise cooperate with the Accounting Firm in connection with the preparation and issuance of the determinations and
calculations contemplated by the preceding subsections. Any determination by the Accounting Firm shall be binding upon the Company and the Executive. 
 15. Severability. Whenever possible each provision and term of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable law, but if any provision or
term of this Agreement shall be held to be prohibited by or invalid under such applicable law, then such provision or term shall be ineffective only to the extent of such prohibition or invalidity, without invalidating or affecting in any manner
whatsoever the remainder of such provisions or term or the remaining provisions or terms of this Agreement. If any provision contained in Sections 5 or 8 of this Agreement shall for any reason be held to be excessively broad or unreasonable as to
time, territory, or interest to be protected, a court is hereby empowered and requested to construe such provision by narrowing it so as to make it reasonable and enforceable to the extent provided under applicable law. 

16. Counterparts. This Agreement may be executed in separate counterparts, each of which is deemed to be an original and
all of which taken together constitute one and the same Agreement. 
 17. Headings. The headings of the Sections
of this Agreement are inserted for convenience only and shall not be deemed to constitute a part hereof and shall not affect the construction or interpretation of this Agreement. 

18. Entire Agreement. This Agreement (together with all documents and instruments referred to herein) constitutes the
entire agreement, and supersedes all other prior agreements and undertakings, both written and oral, among the parties with respect to the subject matter hereof, including any prior employment or management continuity agreement under which the
Executive hereby agrees to waive all rights and which is hereby terminated. 
 19. Section 409A. It is
intended that any payment or benefit which the Executive is to be paid or provided in connection with this Agreement which is considered to be non-qualified deferred compensation subject to Section 409A of the Code, shall be paid and provided
in a manner, and at such time, as complies with, or is exempt from, the applicable requirements of Section 409A of the Code. In connection with effecting such compliance with, or exemption from, Section 409A of the Code, the following
shall apply: 
 (a) Neither the Executive nor the Company shall take any action to accelerate or delay the payment of any monies
and/or provision of any benefits in any matter which would not be in compliance with, or exempt from, Section 409A of the Code. 

  
 17 

 (b) If the Executive is a “specified employee” for purposes of
Section 409A(a)(2)(B)(i) of the Code, any payment or provision of benefits in connection with the Executive’s separation from service (as determined for purposes of Section 409A of the Code) shall not be made until six (6) months
after the Executive’s separation from service or, if earlier, the Executive’s death (the “409A Deferral Period”) as and to the extent required under Section 409A of the Code. In the event such payments are otherwise
due to be made in installments or periodically during the 409A Deferral Period, the payments which would otherwise have been made in the 409A Deferral Period shall be accumulated and paid in a lump sum as soon as, and within thirty (30) days
after, the 409A Deferral Period ends, and the balance of the payments shall be made as otherwise scheduled. In the event such benefits are required to be deferred, any such benefits may be provided during the 409A Deferral Period at the
Executive’s expense, and the Executive will have the right to reimbursement from the Company as soon as, and within thirty (30) days after, the 409A Deferral Period ends, and the balance of the benefits shall be provided as otherwise
scheduled. 
 (c) For purposes of this Agreement, all rights to payments and benefits hereunder shall be treated as rights to
receive a series of separate payments and benefits to the fullest extent allowed by Section 409A of the Code. 
 (d) For
purposes of determining time of (but not entitlement to) the payment or provision of non-qualified deferred compensation under this Agreement subject to Section 409A of the Code in connection with the termination of the Executive’s
employment, termination of employment will be construed to mean a “separation from service” within the meaning of Section 409A of the Code where it is reasonably anticipated that the Executive will not perform any further services
after that date or that the level of bona fide services that the Executive will perform after that date (whether as an employee or independent contractor) will permanently decrease to no more than twenty percent (20%) of the average level of
bona fide services the Executive performed over the immediately preceding thirty-six (36) month period. 
 (e) A
“specified employee” for purposes of Section 409A(a)(2)(B)(i) of the Code shall be determined on the basis of the applicable twelve (12)-month period ending on the specified employee identification date designated by the Company
consistently for purposes of this Agreement and similar agreements or, if no such designation is made, based on the default rules and regulations under Section 409A(a)(2)(B)(i) of the Code. 

(f) Notwithstanding any of the provisions of this Agreement, the Company shall not be liable to the Executive if any payment or benefit
which is to be provided pursuant to this Agreement and which is non-qualified deferred compensation subject to Section 409A of the Code otherwise fails to comply with, or be exempt from, the requirements of Section 409A of the Code.

 [SIGNATURES APPEAR ON THE FOLLOWING PAGE] 

  
 18 

 IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first above
written. 
  

			
	Lumos Networks Corp.
		
	By:	 	  

		 	James A. Hyde
		 	Chief Executive Officer
	
	Lumos Networks Operating Company
		
	By:	 	  

		 	James A. Hyde
		 	Chief Executive Officer
	
	Executive
		
	By:	 	  

		 	David J. Keller

  
 19

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