Document:

Credit Agreement

 EXHIBIT 10.4 
  
 $650,000,000 
  
 CREDIT AGREEMENT 
  
 Dated as of February 22, 2006 
  
 among 
  
 THE BABCOCK & WILCOX COMPANY 
  
 as Borrower 
  
 and 
  
 THE LENDERS, SYNTHETIC INVESTORS AND ISSUERS PARTY HERETO 

 
 and 
  
 CREDIT SUISSE, CAYMAN ISLANDS BRANCH

  
 as Administrative Agent and Collateral
Agent 
  
 and 
  
 CREDIT SUISSE SECURITIES (USA)
LLC 
  
 Sole Lead Arranger and Sole
Bookrunner 
  
 and 
  
 JPMORGAN CHASE BANK, N.A.

  
 as Syndication Agent 
  
 and 
  
 WACHOVIA BANK, NATIONAL ASSOCIATION 
  
 and 
  
 THE BANK OF NOVA SCOTIA 
  
 as Co-Documentation Agents 

 TABLE OF CONTENTS 
  

					
	 	    	 	  	Page

	 ARTICLE I DEFINITIONS, INTERPRETATION AND ACCOUNTING
TERMS
	  	2
			
	 Section 1.1
	    	 Defined Terms
	  	2
			
	 Section 1.2
	    	 Computation of Time Periods
	  	36
			
	 Section 1.3
	    	 Accounting Terms and Principles
	  	36
			
	 Section 1.4
	    	 Certain Terms
	  	37
		
	 ARTICLE II THE FACILITIES
	  	38
			
	 Section 2.1
	    	 The Commitments; Credit-Linked Deposit Account; Delayed Draw Loans
	  	38
			
	 Section 2.2
	    	 Borrowing Procedures
	  	42
			
	 Section 2.3
	    	 Swing Loans
	  	43
			
	 Section 2.4
	    	 Letters of Credit
	  	45
			
	 Section 2.5
	    	 Reduction and Termination of the Commitments
	  	51
			
	 Section 2.6
	    	 Repayment of Loans
	  	52
			
	 Section 2.7
	    	 Evidence of Debt
	  	52
			
	 Section 2.8
	    	 Optional Prepayments
	  	53
			
	 Section 2.9
	    	 Mandatory Prepayments
	  	53
			
	 Section 2.10
	    	 Interest
	  	55
			
	 Section 2.11
	    	 Conversion/Continuation Option
	  	56
			
	 Section 2.12
	    	 Fees
	  	56
			
	 Section 2.13
	    	 Payments and Computations
	  	59
			
	 Section 2.14
	    	 Special Provisions Governing Eurodollar Rate Loans
	  	62
			
	 Section 2.15
	    	 Capital Adequacy
	  	64
			
	 Section 2.16
	    	 Taxes
	  	65
			
	 Section 2.17
	    	 Substitution of Lenders
	  	69
		
	 ARTICLE III CONDITIONS TO LOANS AND LETTERS
OF CREDIT
	  	71
			
	 Section 3.1
	    	 Conditions Precedent to Effectiveness
	  	71
			
	 Section 3.2
	    	 Conditions Precedent to Each Loan and Letter of Credit
	  	75
			
	 Section 3.3
	    	 Determinations of Initial Borrowing Conditions
	  	76
		
	 ARTICLE IV REPRESENTATIONS AND WARRANTIES
	  	77
			
	 Section 4.1
	    	 Corporate Existence; Compliance with Law
	  	77

 TABLE OF CONTENTS 
 (CONTINUED) 
  

					
	 	    	 	  	Page

	 Section 4.2
	    	 Corporate Power; Authorization; Enforceable Obligations
	  	78
			
	 Section 4.3
	    	 Ownership of Borrower; Subsidiaries
	  	79
			
	 Section 4.4
	    	 Financial Statements
	  	79
			
	 Section 4.5
	    	 Material Adverse Change
	  	80
			
	 Section 4.6
	    	 Solvency
	  	80
			
	 Section 4.7
	    	 Litigation
	  	80
			
	 Section 4.8
	    	 Taxes
	  	80
			
	 Section 4.9
	    	 Full Disclosure
	  	81
			
	 Section 4.10
	    	 Margin Regulations
	  	81
			
	 Section 4.11
	    	 No Burdensome Restrictions; No Defaults
	  	81
			
	 Section 4.12
	    	 Investment Company Act; Public Utility Holding Company Act
	  	81
			
	 Section 4.13
	    	 Use of Proceeds
	  	82
			
	 Section 4.14
	    	 Insurance
	  	82
			
	 Section 4.15
	    	 Labor Matters
	  	82
			
	 Section 4.16
	    	 ERISA
	  	83
			
	 Section 4.17
	    	 Environmental Matters
	  	83
			
	 Section 4.18
	    	 Intellectual Property
	  	84
			
	 Section 4.19
	    	 Title; Real Property
	  	84
		
	 ARTICLE V FINANCIAL COVENANTS
	  	86
			
	 Section 5.1
	    	 Maximum Leverage Ratio
	  	86
			
	 Section 5.2
	    	 Minimum Interest Coverage Ratio
	  	87
		
	 ARTICLE VI REPORTING COVENANTS
	  	87
			
	 Section 6.1
	    	 Financial Statements
	  	87
			
	 Section 6.2
	    	 Collateral Reporting Requirements
	  	89
			
	 Section 6.3
	    	 Default Notices
	  	90
			
	 Section 6.4
	    	 Litigation
	  	90
			
	 Section 6.5
	    	 Asset Sales
	  	90
			
	 Section 6.6
	    	 SEC Filings; Press Release
	  	90
			
	 Section 6.7
	    	 Labor Relations
	  	90
			
	 Section 6.8
	    	 Tax Returns
	  	91
			
	 Section 6.9
	    	 Insurance
	  	91

  

 ii 

 TABLE OF CONTENTS 
 (CONTINUED) 
  

					
	 	    	 	  	Page

	 Section 6.10
	    	 ERISA Matters
	  	91
			
	 Section 6.11
	    	 Environmental Matters
	  	91
			
	 Section 6.12
	    	 Patriot Act Information
	  	92
			
	 Section 6.13
	    	 Other Information
	  	92
		
	 ARTICLE VII AFFIRMATIVE COVENANTS
	  	93
			
	 Section 7.1
	    	 Preservation of Corporate Existence, Etc.
	  	93
			
	 Section 7.2
	    	 Compliance with Laws, Etc.
	  	93
			
	 Section 7.3
	    	 Conduct of Business
	  	93
			
	 Section 7.4
	    	 Payment of Taxes, Etc.
	  	93
			
	 Section 7.5
	    	 Maintenance of Insurance
	  	94
			
	 Section 7.6
	    	 Access
	  	94
			
	 Section 7.7
	    	 Keeping of Books
	  	94
			
	 Section 7.8
	    	 Maintenance of Properties, Etc.
	  	95
			
	 Section 7.9
	    	 Application of Proceeds
	  	95
			
	 Section 7.10
	    	 Environmental
	  	95
			
	 Section 7.11
	    	 Additional Collateral and Guaranties
	  	97
			
	 Section 7.12
	    	 Real Property
	  	98
			
	 Section 7.13
	    	 Interest Rate Protection Collateral
	  	99
		
	 ARTICLE VIII NEGATIVE COVENANTS
	  	99
			
	 Section 8.1
	    	 Indebtedness
	  	99
			
	 Section 8.2
	    	 Liens, Etc.
	  	101
			
	 Section 8.3
	    	 Investments
	  	103
			
	 Section 8.4
	    	 Sale of Assets
	  	104
			
	 Section 8.5
	    	 Restricted Payments
	  	105
			
	 Section 8.6
	    	 Restriction on Fundamental Changes
	  	106
			
	 Section 8.7
	    	 Change in Nature of Business
	  	107
			
	 Section 8.8
	    	 Transactions with Affiliates
	  	107
			
	 Section 8.9
	    	 Restrictions on Subsidiary Distributions; No New Negative Pledge
	  	107
			
	 Section 8.10
	    	 Modification of Constituent Documents
	  	108
			
	 Section 8.11
	    	 Accounting Changes; Fiscal Year
	  	108
			
	 Section 8.12
	    	 Margin Regulations
	  	108

  

 iii 

 TABLE OF CONTENTS 
 (CONTINUED) 
  

					
	 	    	 	  	Page

	 Section 8.13
	    	 Sale/Leasebacks
	  	108
			
	 Section 8.14
	    	 Capital Expenditures
	  	108
			
	 Section 8.15
	    	 Cancellation of Indebtedness Owed to It
	  	109
			
	 Section 8.16
	    	 No Speculative Transactions
	  	109
		
	 ARTICLE IX EVENTS OF DEFAULT
	  	110
			
	 Section 9.1
	    	 Events of Default
	  	110
			
	 Section 9.2
	    	 Remedies
	  	112
			
	 Section 9.3
	    	 Actions in Respect of Letters of Credit
	  	112
		
	 ARTICLE X THE ADMINISTRATIVE AGENT, THE FRONTING
LENDER AND OTHER AGENTS
	  	113
			
	 Section 10.1
	    	 Authorization and Action
	  	113
			
	 Section 10.2
	    	 Administrative Agent’s and Fronting Lender’s Reliance, Etc.
	  	114
			
	 Section 10.3
	    	 The Agents and the Fronting Lender Individually
	  	115
			
	 Section 10.4
	    	 Lender Credit Decision
	  	116
			
	 Section 10.5
	    	 Indemnification
	  	116
			
	 Section 10.6
	    	 Successor Administrative Agent
	  	117
			
	 Section 10.7
	    	 Successor Fronting Lender
	  	118
			
	 Section 10.8
	    	 Concerning the Collateral and the Collateral Documents
	  	118
			
	 Section 10.9
	    	 Collateral Matters Relating to Related Obligations
	  	119
			
	 Section 10.10
	    	 Other Agents
	  	120
		
	 ARTICLE XI MISCELLANEOUS
	  	121
			
	 Section 11.1
	    	 Amendments, Waivers, Etc.
	  	121
			
	 Section 11.2
	    	 Assignments and Participations
	  	124
			
	 Section 11.3
	    	 Costs and Expenses
	  	128
			
	 Section 11.4
	    	 Indemnities
	  	129
			
	 Section 11.5
	    	 Limitation of Liability
	  	131
			
	 Section 11.6
	    	 Right of Set-off
	  	131
			
	 Section 11.7
	    	 Sharing of Payments, Etc.
	  	132
			
	 Section 11.8
	    	 Notices, Etc.
	  	133
			
	 Section 11.9
	    	 No Waiver; Remedies
	  	134
			
	 Section 11.10
	    	 Binding Effect
	  	135
			
	 Section 11.11
	    	 Governing Law
	  	135
			
	 Section 11.12
	    	 Submission to Jurisdiction; Service of Process
	  	135

  

 iv 

 TABLE OF CONTENTS 
 (CONTINUED) 
  

					
	 	    	 	  	Page

	 Section 11.13
	    	 Waiver of Jury Trial
	  	136
	 Section 11.14
	    	 Marshaling; Payments Set Aside
	  	136
	 Section 11.15
	    	 Section Titles
	  	136
	 Section 11.16
	    	 Execution in Counterparts
	  	136
	 Section 11.17
	    	 Entire Agreement
	  	136
	 Section 11.18
	    	 Confidentiality
	  	137

  

							
	 Schedules
	  	 	  	 	  	 
	 	  	Schedule I	  	 	  	- Commitments
	 	  	Schedule II	  	 	  	- Applicable Commitment Fee Rate and   Applicable Margin
	 	  	Schedule 2.4	  	 	  	- Existing Letters of Credit
	 	  	Schedule 4.2	  	 	  	- Consents
	 	  	Schedule 4.3	  	 	  	- Ownership of Subsidiaries
	 	  	Schedule 4.7	  	 	  	- Litigation
	 	  	Schedule 4.15	  	 	  	- Labor Matters
	 	  	Schedule 4.16	  	 	  	- ERISA
	 	  	Schedule 4.17	  	 	  	- Environmental Matters
	 	  	Schedule 4.19(a)	  	 	  	- Real Property
	 	  	Schedule 4.19(b)	  	 	  	- Mortgaged Properties
	 	  	Schedule 8.1	  	 	  	- Existing Indebtedness
	 	  	Schedule 8.2	  	 	  	- Existing Liens
	 	  	Schedule 8.3	  	 	  	- Existing Investments
	Exhibits	  	 	  	 	  	 
	 	  	Exhibit A	  	 	  	- Form of Assignment and Acceptance
	 	  	Exhibit B-1	  	 	  	- Form of Promissory Note
	 	  	Exhibit B-2	  	 	  	- Form of Delayed Draw Note
	 	  	Exhibit C	  	 	  	- Form of Notice of Borrowing
	 	  	Exhibit D	  	 	  	- Form of Swing Loan Request
	 	  	Exhibit E	  	 	  	- Form of Letter of Credit Request
	 	  	Exhibit F	  	 	  	- Form of Notice of Conversion or Continuation
	 	  	Exhibit G	  	 	  	- Form of Opinion of Counsel for the Loan Parties
	 	  	Exhibit H	  	 	  	- BWICO Guaranty
	 	  	Exhibit I	  	 	  	- Pledge and Security Agreement
	 	  	Exhibit J	  	 	  	- Global Intercompany Note
	 	  	Exhibit K	  	 	  	- Form of Compliance Certificate
	 	  	Exhibit L	  	 	  	- Form of Landlord Lien Waiver
	 	  	Exhibit M	  	 	  	- Effective Date Certificate

  

 v 

 THIS CREDIT AGREEMENT, dated as of
February 22, 2006, is entered into by and among THE BABCOCK & WILCOX COMPANY, a Delaware corporation (the “Borrower”), the Lenders (as defined below), the Issuers (as defined below), the Synthetic Investors (as defined below),
CREDIT SUISSE SECURITIES (USA) LLC, as sole lead arranger and sole bookrunner (in each such capacity, and together with its successors, the “Arranger”), CREDIT
SUISSE, CAYMAN ISLANDS BRANCH (“Credit Suisse”), as administrative agent for the Lenders, the Synthetic Investors and the Issuers (in such capacity, the
“Administrative Agent”) and collateral agent for the Lenders, the Synthetic Investors and the Issuers (in such capacity, the “Collateral Agent”), JPMORGAN CHASE BANK, N.A., as syndication agent (the “Syndication
Agent”) and WACHOVIA BANK, NATIONAL ASSOCIATION and THE BANK OF NOVA SCOTIA as co-documentation agents (collectively, the “Co-Documentation Agents”). 
  
 W I T N E S S E
T H: 
  
 WHEREAS, the Borrower,
together with certain of its direct or indirect Wholly-Owned Domestic Subsidiaries (as hereinafter defined), filed on February 22, 2000 voluntary petitions for reorganization (the “Restructuring”) under Chapter 11 of Title 11
of the United States Code (the “U.S. Bankruptcy Code”) in the United States Bankruptcy Court for the Eastern District of Louisiana (the “U.S. Bankruptcy Court”), and the cases in the U.S. Bankruptcy Court were
consolidated for purposes of joint administration of the Borrower and such Subsidiaries (No. 00-10922) (the “Bankruptcy Cases”); 
  
 WHEREAS, the Borrower and its applicable Domestic Subsidiaries have emerged from the Bankruptcy Cases pursuant to a joint plan of reorganization confirmed
by the U.S. District Court (as hereinafter defined) on January 17, 2006 (as amended, restated, modified or otherwise supplemented through the date hereof and including all exhibits thereto, the “Plan of Reorganization”);

  
 WHEREAS, the Borrower or one of its Subsidiaries has made the
MTI Loan and Associated Payments on the date hereof; 
  
 WHEREAS,
in connection with the Plan of Reorganization, the Borrower has requested the Lenders to extend credit in an aggregate principal amount of up to $650,000,000 on the terms and conditions set forth in this Agreement (and its related schedules and
exhibits) in order to recapitalize its existing indebtedness, including its Existing Credit Agreement (the “Recapitalization”) and for working capital needs and other general corporate purposes; 
  
 WHEREAS, the Lenders, the Issuers and the Synthetic Investors have agreed to
extend certain senior secured credit facilities to the Borrower, in an aggregate amount not to exceed $650,000,000, consisting of (i) $250,000,000 aggregate principal amount of Delayed Draw Loans available in a single drawing on or after the
Effective Date but prior to the Delayed Draw Commitment Termination Date, the proceeds of which will be used by the Borrower to refinance indebtedness permitted to be incurred to fund amounts payable to the Asbestos PI Trust to the extent required
by, and on the terms 

 
and conditions set forth in, the Plan of Reorganization, (ii) a Revolving Facility in the amount of $200,000,000 available at any time and from time to
time on or after the Effective Date but prior to the Revolving Facility Termination Date, which will be used only to issue Letters of Credit and for Revolving Loans, the proceeds of which shall be used for working capital needs and for general
corporate purposes, and (iii) a Synthetic Facility in the amount of $200,000,000 available at any time and from time to time on or after the Effective Date but prior to the Synthetic Facility Termination Date, which will be used only to issue
Letters of Credit, in each case in accordance with this Agreement; 
  
 WHEREAS, in connection with the Revolving Facility, Credit Suisse has agreed to extend $15,000,000 in aggregate principal amount of Swing Loans available at any time and from time to time on or after the Effective Date but prior to the
Revolving Facility Termination Date, the proceeds of which will be used for the same purposes as the Revolving Loans; 
  
 WHEREAS, the Borrower has agreed to secure all of its Obligations by granting to Collateral Agent, for the benefit of Secured Parties, a first priority
lien (subject only to Liens permitted hereunder) on substantially all of the Borrower’s domestic assets (other than cash, deposit accounts, Cash Equivalents and securities accounts), including a pledge of all of the Stock of each of its
Domestic Subsidiaries and 65% of all the Voting Stock and 100% of all the non-Voting Stock of each of its Foreign Subsidiaries; and 
  
 WHEREAS, pursuant to the terms and conditions set forth in the Pledge and Security Agreement, each Subsidiary Guarantor has agreed to guarantee the
Obligations hereunder and to secure the Obligations by granting to the Collateral Agent, for the benefit of the Secured Parties, a first priority lien on substantially all of its domestic assets (other than cash, deposit accounts, Cash Equivalents
and securities accounts), including a pledge of all of the Stock of each of its Domestic Subsidiaries and 65% of all the Voting Stock and 100% of all the non-Voting Stock of each of its Foreign Subsidiaries; 
  
 NOW, THEREFORE, in consideration of the premises and the agreements,
provisions and covenants herein contained, the parties hereto agree as follows: 
  
 ARTICLE I 
  
 DEFINITIONS, INTERPRETATION AND ACCOUNTING TERMS 
  
 Section 1.1 Defined Terms 
  
 As used in this Agreement, the following terms have the following meanings (such meanings to be equally applicable to both the singular and plural forms
of the terms defined): 
  
 “Administrative
Agent” has the meaning specified in the preamble to this Agreement or any successor thereto pursuant to Section 10.6 (Successor Administrative Agent). 
  

 2 

 “Affected Lender” has the meaning specified in Section 2.17 (Substitution of
Lenders). 
  
 “Affiliate” means, with respect
to any Person, any other Person, directly or indirectly, controlling or that is controlled by or is under common control with such Person, each officer, director or general partner of such Person, and each Person that is the beneficial owner of 10%
or more of any class of Voting Stock of such Person. For the purposes of this definition, “control” means the possession of the power to direct or cause the direction of the management and policies of such Person, whether through
the ownership of voting securities, by contract or otherwise. 
  
 “Agents” means the Administrative Agent, the Collateral Agent, the Co-Documentation Agents and the Syndication Agent. 
  
 “Agreement” means this Credit Agreement, dated as of February 22, 2006, as it may be amended, restated, supplemented or otherwise
modified from time to time. 
  
 “Alternative
Currency” means any lawful currency (other than Dollars) of any of the G-10 Countries that is readily transferable into Dollars (or any other currency acceptable to the Administrative Agent in its sole discretion). 
  
 “Applicable Commitment Fee Rate” means a rate per
annum equal to the applicable rate set forth on Schedule II for the applicable type of Facility. 
  
 “Applicable Lending Office” means, with respect to each Lender, its Domestic Lending Office in the case of a Base Rate Loan, and its
Eurodollar Lending Office in the case of a Eurodollar Rate Loan. 
  
 “Applicable Margin” means, as of any date of determination, a rate per annum equal to the applicable rate set forth on Schedule II. 
  
 “Approved Fund” means any Fund that is advised or managed by (a) a Lender or a Synthetic Investor,
(b) an Affiliate of a Lender or a Synthetic Investor or (c) an entity or Affiliate of an entity that administers or manages a Lender or a Synthetic Investor. 
  
 “Arranger” has the meaning specified in the preamble. 
  
 “Asbestos PI Trust” has the meaning specified in the Plan of
Reorganization. 
  
 “Asbestos PI Trust Note” has
the meaning specified in Section 8.1(j). 
  
 “Asset Sale” has the meaning specified in Section 8.4 (Sale of Assets). 
  

 3 

 “Assignment and Acceptance” means an assignment and acceptance entered into by a Lender
or a Synthetic Investor and an Eligible Assignee, and accepted by the Administrative Agent, in substantially the form of Exhibit A (Form of Assignment and Acceptance). 
  
 “Authorized Officer” means any Responsible Officer or any other Person designated as an “Authorized
Officer” of a Loan Party by prior written notice from such Loan Party to the Administrative Agent. 
  
 “Available Credit” means, at any time, an amount equal to (a) the aggregate then effective Commitments minus (b) the
aggregate Outstandings at such time. 
  
 “Base
Rate” means, for any period, a fluctuating interest rate per annum as shall be in effect from time to time, which rate per annum shall be equal to the greater of the following: 
  
 (a) the Prime Rate then in effect; and 
  
 (b) 0.5% per annum plus the Federal Funds Rate then in effect.

  
 If the Administrative Agent shall have determined (which
determination shall be conclusive absent manifest error) that it is unable to ascertain the Federal Funds Rate for any reason, including the inability of the Administrative Agent to obtain sufficient quotations in accordance with the terms of the
definition thereof, the “Base Rate” shall be determined without regard to clause (b) above until the circumstances giving rise to such inability no longer exist. Any change in the Base Rate due to a change in the Federal
Funds Rate or the Prime Rate shall be effective on the effective date of such change in the Federal Funds Rate or the Prime Rate, respectively. 
  
 “Base Rate Loan” means any Loan during any period in which it bears interest based on the Base Rate. 
  
 “Borrower” has the meaning specified in the preamble hereto.

  
 “Borrower’s Accountants” means
PricewaterhouseCoopers LLP or other independent nationally recognized public accountants. 
  
 “Borrowing” means a borrowing consisting of Revolving Loans or Delayed Draw Loans made or to be made on the same day by the applicable Lenders ratably according to their respective Commitments.

  
 “Business Day” means a day of the year on
which banks are not required or authorized to close in New York City and, if the applicable Business Day relates to notices, determinations, fundings and payments in connection with the Eurodollar Rate or any Eurodollar Rate Loans, a day on which
dealings in Dollar deposits are also carried on in the London interbank market. 
  

 4 

 “BWICO” means Babcock & Wilcox Investment Company, a Delaware corporation.

  
 “BWICO Guaranty” means the Guaranty to be
dated as of the date of the Delayed Draw Loan Credit Date, the form of which is attached hereto as Exhibit H (BWICO Guaranty), to be executed by BWICO in favor of the Administrative Agent. 
  
 “Capital Expenditures” means, with respect to any Person for
any period, (a) the aggregate of amounts that would be reflected as additions to property, plant or equipment on a consolidated balance sheet of such Person and its Subsidiaries prepared in conformity with GAAP, excluding interest capitalized
during construction less (b) the aggregate of such amounts used to acquire assets useful in the Borrower’s and its Subsidiaries’ business (x) in connection with a Reinvestment Event as permitted under Section 2.9
(Mandatory Prepayments) or (y) to the extent such amounts arose from a sale or disposition of equipment described in Section 8.4(c) (Sale of Assets) of the Credit Agreement; provided, however, that the Capital
Expenditures of the Borrower shall exclude Capital Expenditures to the extent financed with the proceeds of Indebtedness permitted to be incurred hereunder (other than the Loans). 
  
 “Capital Lease” means, with respect to any Person, any lease of (or other arrangement conveying the right
to use) property by such Person as lessee that would be accounted for as a capital lease on a balance sheet of such Person prepared in conformity with GAAP. 
  
 “Capital Lease Obligations” means, with respect to any Person, the capitalized amount of all obligations of such Person or any of its
Subsidiaries under Capital Leases, as determined on a consolidated basis in conformity with GAAP. 
  
 “Cash Equivalents” means (a) securities issued or fully guaranteed or insured by the United States government or any agency thereof,
(b) certificates of deposit, eurodollar time deposits, overnight bank deposits and bankers’ acceptances of any Lender, Synthetic Investor or any commercial bank organized under the laws of the United States, any state thereof, the District
of Columbia, any foreign bank, or its branches or agencies, (c) commercial paper, (d) municipal issued debt securities, including notes and bonds, (e) shares of any money market fund that has net assets of not less than $500,000,000
and satisfies the requirements of rule 2a-7 under the Investment Company Act of 1940, (f) investments in so-called “auction rate” securities with reset dates not later than 90 days after acquisition thereof, (g) fully
collateralized repurchase agreements and (h) demand deposit accounts; provided, however, that (i) all obligations of the type specified in clauses (a), (c), (d), or (f) above shall have a minimum rating of A-1 or AAA by S&P
or P-1 or Aaa by Moody’s, in each case at the time of acquisition thereof, and (ii) the maturities of all obligations of the type described in clauses (a), (b), (c) and (d) above shall not exceed one year from the date of
acquisition thereof. 
  
 “Cash Interest Expense”
means, with respect to any Person for any period, the Interest Expense of such Person for such period less, to the extent included in the calculation of Interest Expense of such Person for such period, (a) the amount of debt 

  

 5 

 
discount and debt issuance costs amortized, (b) charges relating to write-ups or write-downs in the book or carrying value of existing Financial
Covenant Debt and (c) interest payable in evidences of Indebtedness or by addition to the principal of the related Indebtedness. 
  
 “Change of Control” means any of the following: (a) BWICO shall cease to own and control 100% of the issued and outstanding Voting
Stock of the Borrower on a fully diluted basis, (b) MII shall cease to beneficially own and control, directly or indirectly, 100% of the issued and outstanding Voting Stock of BWICO on a fully diluted basis, (c) any “person” or
“group” (within the meaning of Rule 13d-5 of the Securities Exchange Act of 1934 as in effect on the date hereof) (excluding MII and its Subsidiaries and excluding underwriters in the course of their distribution of Voting Stock in an
underwritten registered public offering provided such underwriters shall not hold such Stock for longer than five Business Days) shall (i) own directly or indirectly, beneficially or of record, Stock representing more than 30% of either the
aggregate ordinary voting power or the aggregate equity value represented by the issued and outstanding Stock in MII or (ii) shall have obtained the power (whether or not exercised) to elect a majority of the members of the board of directors
of the Borrower, BWICO or MII or (d) during any period of twelve consecutive calendar months, individuals who at the beginning of such period constituted the board of directors of either the Borrower, BWICO or MII (together with any new
directors whose election by the board of directors of the Borrower, BWICO or MII, as applicable, or whose nomination for election by the stockholders of the Borrower, BWICO or MII, as applicable, was approved by a vote of at least a majority of the
directors then still in office who either were directors at the beginning of such period or whose elections or nomination for election was previously so approved) cease for any reason other than death or disability to constitute a majority of the
directors then in office; provided that the election or appointment as the initial directors of the Borrower and its applicable Domestic Subsidiaries of the individuals proposed to serve as directors in the Notice Pursuant to
11 USC Section 1129(a)(5)(A)(I) of Proposed Officers and Directors of the Reorganized Debtors filed in the U.S. Bankruptcy Court shall not constitute a Change of Control. 
  
 “CITGO Settlement” means that certain Stipulation and Accord executed December 21, 2005 by and between
the Borrower, Citgo Petroleum Corporation, PDV Midwest Refining L.L.C., certain Underwriters of Loyd’s London and Interested Insurers, and MII and certain of its subsidiaries, as approved by the U.S. Bankruptcy Court. 
  
 “Code” means the Internal Revenue Code of 1986 (or any
successor legislation thereto). 
  
 “Collateral”
means all property and interests in property and proceeds thereof now owned or hereafter acquired by any Loan Party in or upon which a Lien is granted under any Collateral Document. 
  
 “Collateral Agent” has the meaning specified in the preamble to this Agreement or any successor thereto.

  

 6 

 “Collateral Documents” means the Pledge and Security Agreement, the Mortgages and any
other document executed and delivered by a Loan Party granting or perfecting a Lien on any of its property to secure payment of the Secured Obligations. 
  
 “Commitments” means the Revolving Commitments, Synthetic Commitments and Delayed Draw Commitments. 
  
 “Commitment Fee” means the Revolving Commitment Fee and the
Delayed Draw Commitment Fee specified in Section 2.12(a) (Fees). 
  
 “Compliance Certificate” has the meaning specified in Section 6.1(c) (Financial Statements). 
  
 “Confirmation Order” shall have the meaning specified in Section 3.1(f) (Confirmation Order). 
  
 “Consolidated Net Income” shall mean, for any period, the
net income (or loss) of the Borrower and its Subsidiaries for such period determined on a consolidated basis in accordance with GAAP. 
  
 “Constituent Documents” means, with respect to any Person, (a) the articles of incorporation, certificate of incorporation or
certificate of formation (or the equivalent organizational documents) of such Person and (b) the by-laws, operating agreement (or the equivalent governing documents) of such Person. 
  
 “Contaminant” means any material, substance or waste that is classified, regulated or otherwise
characterized under any Environmental Law as hazardous, toxic, a contaminant or a pollutant or by other words of similar meaning or regulatory effect, including any petroleum or petroleum-derived substance or waste, asbestos and polychlorinated
biphenyls. 
  
 “Contingent MI Payment” means the
contingent payment to be made to the Asbestos PI Trust by MI or one of its Subsidiaries (excluding the Borrower and any of its Subsidiaries except as expressly permitted pursuant to Section 8.1(m)) in connection with the settlement being
effected pursuant to, among other documents, the Plan of Reorganization in an aggregate amount of up to $355,000,000 under the conditions set forth in the Plan of Reorganization and such other documents. 
  
 “Contractual Obligation” of any Person means any obligation,
agreement, undertaking or similar provision of any Security issued by such Person or of any agreement, undertaking, contract, lease, indenture, mortgage, deed of trust or other instrument (excluding the Loan Documents) to which such Person is a
party or by which it or any of its property is bound. 
  
 “Co-Documentation Agents” has the meaning specified in the preamble to this Agreement. 
  

 7 

 “Credit-Linked Deposit” means, with respect to each Synthetic Investor at any time,
amounts actually on deposit in the Credit-Linked Deposit Account credited to such Synthetic Investor’s Sub-Account at such time. 
  
 “Credit-Linked Deposit Account” means the account established pursuant to Section 2.1(c) (The Commitments; Credit-Linked Deposit
Account; Delayed Draw Loans) by the Administrative Agent, under its sole and exclusive dominion and control, that shall be used solely to hold the Credit-Linked Deposits. 
  
 “Credit-Linked Deposit Return” has the meaning specified in Section 2.1(f) (The Commitments;
Credit-Linked Deposit Account; Delayed Draw Loans). 
  
 “Credit Suisse” has the meaning specified in the preamble to this Agreement. 
  
 “Current Assets” shall mean, at any time, the consolidated current assets (other than cash and Cash Equivalents) of the Borrower and the
Subsidiaries. 
  
 “Current Liabilities” shall
mean, at any time, the consolidated current liabilities of the Borrower and the Subsidiaries at such time, but excluding, without duplication, (a) the current portion of any long-term Indebtedness and (b) outstanding Revolving Loans and
Swing Loans. 
  
 “Customary Permitted Liens”
means, with respect to any Person, any of the following Liens: 
  
 (a) Liens with respect to the payment of taxes, assessments or governmental charges in each case that are not yet due or that are being contested in good faith by appropriate proceedings and with respect to which adequate reserves or other
appropriate provisions are being maintained to the extent required by GAAP and, in the case of Mortgaged Property, there is no material risk of forfeiture of such property; 
  
 (b) Liens of landlords arising by statute or lease contracts entered into in the ordinary course, inchoate, statutory or
construction liens and liens of suppliers, mechanics, carriers, materialmen, warehousemen, producers, operators or workmen and other liens imposed by law created in the ordinary course of business for amounts not yet due or that are being contested
in good faith by appropriate proceedings and with respect to which adequate reserves or other appropriate provisions are being maintained to the extent required by GAAP; 
  
 (c) liens, pledges or deposits made in the ordinary course of business in connection with workers’ compensation,
unemployment insurance or other types of social security benefits, taxes, assessments, statutory obligations or other similar charges or to secure the performance of bids, tenders, sales, leases, contracts (other than for the repayment of borrowed
money) or in connection with surety, appeal, customs or performance bonds or other similar instruments; 
  

 8 

 (d) encumbrances arising by reason of zoning restrictions, easements, licenses, reservations, covenants,
rights-of-way, utility easements, building restrictions and other similar encumbrances on the use of Real Property not materially detracting from the value of such Real Property and not materially interfering with the ordinary conduct of the
business conducted at such Real Property; 
  
 (e) encumbrances
arising under leases or subleases of Real Property that do not, individually or in the aggregate, materially detract from the value of such Real Property or materially interfere with the ordinary conduct of the business conducted at such Real
Property; and 
  
 (f) financing statements with respect to a
lessor’s rights in and to personal property leased to such Person in the ordinary course of such Person’s business. 
  
 “Default” means any event that, with the passing of time or the giving of notice or both, would become an Event of Default. 

 
 “Delayed Draw Commitment” means with respect to a Lender,
the commitment of such Lender to make Delayed Draw Loans in the aggregate principal amount outstanding not to exceed the amount set forth opposite such Lender’s name on Schedule I (Commitments) under the caption “Delayed
Draw Commitment,” as amended to reflect each Assignment and Acceptance executed in accordance herewith, and as such amount may be reduced pursuant to this Agreement. “Delayed Draw Commitments” means the aggregate of such
commitments for all Lenders. 
  
 “Delayed Draw Commitment
Fee” shall have the same meaning specified in Section 2.12(a) (Fees). 
  
 “Delayed Draw Facility” means the Delayed Draw Commitment of Lenders and the provisions herein relating to the Delayed Draw Loans made by the Lenders with Delayed Draw Commitments. The aggregate
amount of the Delayed Draw Commitments as of the Effective Date is $250,000,000. 
  
 “Delayed Draw Commitment Period” means the period from and including the Effective Date to and including the Delayed Draw Commitment Termination Date. 
  
 “Delayed Draw Commitment Termination Date” means the
earliest of (a) December 1, 2006, (b) the date of termination of the Commitments pursuant to Section 2.5 (Reduction and Termination of the Commitments) or Section 9.2 (Remedies), (c) the date of funding of
Delayed Draw Loans pursuant to Section 2.1(b) and (d) the date of the issuance of Indebtedness referred to in Section 8.1(j)(y). 
  
 “Delayed Draw Lender” means any Lender under the Delayed Draw Facility. 
  
 “Delayed Draw Loan” means a Loan made by a Lender to the Borrower pursuant to Section 2.1(b).

  

 9 

 “Delayed Draw Loan Credit Date” means the date of making of the Delayed Draw Loan.

  
 “Delayed Draw Loan Exposure” means, with
respect to any Lender as of any date of determination, (i) prior to the termination of the Delayed Draw Commitments, that Lender’s Delayed Draw Commitment and (ii) after the termination of the Delayed Draw Commitments, the aggregate
outstanding principal amount of the Delayed Draw Loans of that Lender. 
  
 “Delayed Draw Loan Maturity Date” means the earlier of (i) the sixth anniversary of the Effective Date, and (ii) the date that all Delayed Draw Loans shall become due and payable in full hereunder, whether by
acceleration or otherwise. 
  
 “Delayed Draw Loan
Note” means a promissory note in the form of Exhibit B-2, as it may be amended, supplemented or otherwise modified from time to time. 
  
 “Disqualified Stock” means with respect to any Person, any Stock that, by its terms (or by the terms of any Security into which it is
convertible or for which it is exchangeable), or upon the happening of any event, matures or is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, or is exchangeable for Indebtedness of such Person, or is redeemable at the
option of the holder thereof, in whole or in part, on or prior to the Synthetic Facility Termination Date. 
  
 “Documentary Letter of Credit” means any Letter of Credit that is drawable upon presentation of documents evidencing the sale or shipment
of goods, or the rendering of services, purchased by the Borrower or any of its Subsidiaries in the ordinary course of its business. 
  
 “Dollar Equivalent” means with respect to any Alternative Currency at the time of determination thereof, the equivalent of such currency
in Dollars determined by using the rate of exchange quoted by Credit Suisse in New York, New York at 11:00 a.m. (New York time) on the date of determination to prime banks in New York for the spot purchase in the New York foreign exchange
market of such amount of Dollars with such Alternative Currency. 
  
 “Dollars” and the sign “$” each mean the lawful money of the United States of America. 
  
 “Domestic Lending Office” means, with respect to any Lender, the office of such Lender specified as its “Domestic Lending
Office” from time to time to the Borrower and the Administrative Agent. 
  
 “Domestic Subsidiary” means any Subsidiary of the Borrower organized under the laws of any state of the United States of America or the District of Columbia. 
  
 “EBITDA” means, for any period, (a) Consolidated Net
Income for such period plus (b) the sum of, in each case to the extent deducted in the calculation of such 

  

 10 

 
Consolidated Net Income but without duplication, (i) any provision for income taxes, (ii) Interest Expense, (iii) depreciation expense,
(iv) amortization of intangibles or financing or acquisition costs, (v) any aggregate net loss from the sale, exchange or other disposition of business units by the Borrower or its Subsidiaries and (vi) all other non-cash charges
(including impairment of intangible assets and goodwill) and non-cash losses for such period (excluding any non-cash item to the extent it represents an accrual of, or reserve for, cash disbursements for any period ending prior to March 31,
2012); provided, that, to the extent that all or any portion of the income or gains of any Person is deducted pursuant to any of clauses (c)(v) through (c)(viii) below for a given period, any amounts set forth in any of the preceding clauses
(b)(i) through (b)(vii) that are attributable to such Person shall not be included for purposes of this clause (b) for such period, minus (c) the sum of, in each case to the extent included in the calculation of such Consolidated
Net Income but without duplication, (i) any credit for income tax, (ii) non-cash interest income, (iii) any other non-cash gains or other items which have been added in determining Consolidated Net Income (other than any such gain or
other item that has been deducted in determining EBITDA for a prior period), (iv) the income of any Subsidiary or Permitted Joint Venture to the extent that the declaration or payment of dividends or similar distributions or transfers or loans
by such Subsidiary or Permitted Joint Venture, as applicable, of that income is not at the time permitted by operation of the terms of its charter or any agreement, instrument, judgment, decree, statute, rule or governmental regulation applicable to
such Subsidiary or Permitted Joint Venture, as applicable, (v) the income or loss of any person accrued prior to the date it becomes a Subsidiary or Permitted Joint Venture or is merged into or consolidated with the Borrower or any Subsidiary
or the date that such person’s assets are acquired by the Borrower or any Subsidiary or Permitted Joint Venture, (vi) the income of any Person (other than a Subsidiary that is not a Permitted Joint Venture) in which any other Person (other
than the Borrower or a wholly owned Subsidiary or any director holding qualifying shares in accordance with applicable law) has an interest, except to the extent of the amount of dividends or other distributions or transfers or loans actually paid
to the Borrower or a wholly owned Subsidiary by such person during such period and (vii) any gains attributable to sales of assets out of the ordinary course of business; provided, notwithstanding the foregoing, the EBITDA for the Fiscal
Quarters ended June 30, 2005, September 30, 2005 and December 31, 2005 shall be $26,900,000, $30,400,000 and $21,400,000, respectively. 
  
 “ECF Period” means (i) in the event that the Borrower or any of its Subsidiaries desires to use any internally generated cash flow
of the Borrower or any of its Subsidiaries to pay all or any portion of the Contingent MI Payment, the period commencing on the Effective Date and ending on the last day of the most recent Fiscal Quarter for which financial statements were delivered
pursuant to Section 6.1(a) and (ii) in all other cases, the Fiscal Year most recently ended. 
  
 “ECF Year End Offer Date” has the meaning specified in Section 2.9(c). 
  
 “Effective Date” has the meaning specified in
Section 3.1 (Conditions Precedent to Effectiveness). 
  

 11 

 “Eligible Assignee” means (a) a Lender, Synthetic Investor or any Affiliate of a
Lender or Synthetic Investor or an Approved Fund, (b) a commercial bank having total assets in excess of $5,000,000,000, (c) a finance company, insurance company or any other financial institution or fund, in each case reasonably
acceptable to the Administrative Agent and regularly engaged in making, purchasing or investing in loans and having a net worth, determined in accordance with GAAP, in excess of $250,000,000 or, to the extent net worth is less than such amount, a
finance company, insurance company, other financial institution or fund, reasonably acceptable to the Administrative Agent and the Borrower or (d) a savings and loan association or savings bank organized under the laws of the United States or
any State thereof having a net worth, determined in accordance with GAAP, in excess of $250,000,000; provided, that, the term Eligible Assignee shall exclude any competitor of the Borrower or any of its Subsidiaries which is primarily engaged
in an Eligible Line of Business and which has been previously identified as such by the Borrower to the Administrative Agent. 
  
 “Eligible Line of Business” means the businesses and activities engaged in by the Borrower and its Subsidiaries on the Effective Date,
any other businesses or activities reasonably related or incidental thereto and any other businesses that, when taken together with the existing businesses of the Borrower and its Subsidiaries, are immaterial with respect to the assets and
liabilities of the Borrower and its Subsidiaries, taken as a whole. 
  
 “Employee Benefit Plan” means any “employee benefit plan” as defined in Section 3(3) of ERISA which is or was sponsored, maintained or contributed to by, or required to be contributed by, the Borrower, any of
its Subsidiaries, any Guarantor or any of their respective ERISA Affiliates. 
  
 “Environmental Laws” means all applicable Requirements of Law now or hereafter in effect and as amended or supplemented from time to time, relating to pollution or the regulation and protection of
human health, safety, the environment or natural resources, including the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (42 U.S.C. § 9601 et seq.); the Hazardous Material Transportation
Act, as amended (49 U.S.C. § 1801 et seq.); the Federal Insecticide, Fungicide, and Rodenticide Act, as amended (7 U.S.C. § 136 et seq.); the Resource Conservation and Recovery Act, as amended (42 U.S.C.
§ 6901 et seq.); the Toxic Substance Control Act, as amended (15 U.S.C. § 2601 et seq.); the Clean Air Act, as amended (42 U.S.C. § 7401 et seq.); the Federal Water Pollution Control Act, as amended
(33 U.S.C. § 1251 et seq.); the Occupational Safety and Health Act, as amended (29 U.S.C. § 651 et seq.); the Safe Drinking Water Act, as amended (42 U.S.C. § 300f et seq.); and each
of their state and local counterparts or equivalents. 
  
 “Environmental Liabilities and Costs” means, with respect to any Person, all liabilities, obligations, responsibilities, Remedial Actions, losses, damages, punitive damages, consequential damages, treble damages, costs and
expenses (including all fees, disbursements and expenses of counsel, experts and consultants and costs of investigation and feasibility studies), fines, penalties, sanctions and interest incurred as a result of any claim or demand by any other
Person, whether based in contract, tort, implied or express 

  

 12 

 
warranty, strict liability, criminal or civil statute and arising under any Environmental Law, Permit, order or agreement with any Governmental Authority or
other Person, in each case relating to and resulting from the past, present or future operations of, or ownership of property by, such Person or any of its Subsidiaries. 
  
 “Environmental Lien” means any Lien in favor of any Governmental Authority pursuant to any Environmental
Law. 
  
 “ERISA” means the Employee Retirement
Income Security Act of 1974, as amended. 
  
 “ERISA
Affiliate” means any trade or business (whether or not incorporated) under common control or treated as a single employer with the Borrower, any of its Subsidiaries or any Guarantor within the meaning of Section 414(b), (c),
(m) or (o) of the Code. Any former ERISA Affiliate of the Borrower, any of its Subsidiaries or any Guarantor shall continue to be considered an ERISA Affiliate of the Borrower, such Subsidiary or such Guarantor within the meaning of this
definition with respect to the period such entity was an ERISA Affiliate of the Borrower, such Subsidiary or such Guarantor and with respect to liabilities arising after such period for which the Borrower, such Subsidiary or such Guarantor could be
liable under the Code or ERISA. 
  
 “ERISA Event”
means (a) a reportable event described in Section 4043(b) or 4043(c) of ERISA with respect to a Title IV Plan, (b) the withdrawal of the Borrower, any of its Subsidiaries, any Guarantor or any ERISA Affiliate from a Title IV Plan
subject to Section 4063 or Section 4064 of ERISA during a plan year in which any such entity was a “substantial employer” (as defined in Section 4001(a)(2) of ERISA) or the termination of any such Title IV Plan resulting, in
either case, in a material liability to any such entity, (c) the “complete or partial withdrawal” (within the meaning of Sections 4203 and 4205 of ERISA) of the Borrower, any of its Subsidiaries, any Guarantor or any ERISA Affiliate
from any Multiemployer Plan where the Withdrawal Liability is reasonably expected to exceed $1,000,000 (individually or in the aggregate), (d) notice of reorganization, insolvency, intent to terminate or termination of a Multiemployer Plan is
received by the Borrower, any of its Subsidiaries, any Guarantor or any ERISA Affiliate, (e) the filing of a notice of intent to terminate a Title IV Plan under Section 4041(c) of ERISA or the treatment of a plan amendment as a termination
under Section 4041(e) of ERISA, where such termination constitutes a “distress termination” under Section 4041(c) of ERISA, (f) the institution of proceedings to terminate a Title IV Plan by the PBGC, (g) the failure to
make any required contribution to a Title IV Plan or Multiemployer Plan or to meet the minimum funding standard of Section 412 of the Code (in either case, whether or not waived in accordance with Section 412(d) of the Code), (h) the
imposition of a lien under Section 412 of the Code or Section 302 of ERISA on the Borrower, any of its Subsidiaries, any Guarantor or any ERISA Affiliate, (i) any other event or condition that might reasonably be expected to
constitute grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Title IV Plan or Multiemployer Plan or the imposition of any liability under Title IV of ERISA, other than for PBGC
premiums due but not delinquent under Section 4007 of ERISA, (j) the imposition of liability on the Borrower, any of its Subsidiaries, any 

  

 13 

 
Guarantor or any of their respective ERISA Affiliates pursuant to Section 4062(e) or 4069 of ERISA or by reason of the application of
Section 4212(c) of ERISA, (k) the occurrence of an act or omission which would reasonably be expected to give rise to the imposition on the Borrower, any of its Subsidiaries, any Guarantor or any of their respective ERISA Affiliates of
fines, penalties, taxes or related charges under Chapter 43 of the Code or under Section 409, Section 502(c), (i) or (l), or Section 4071 of ERISA in respect of any “employee pension plan” (within the meaning of
Section 3(2) of ERISA), (l) receipt from the IRS of notice of the failure of any employee pension plan that is intended to be qualified under Section 401(a) of the Code) to qualify under Section 401(a) of the Code, or the failure
of any trust forming part of any such employee pension plan to qualify for exemption from taxation under Section 501(a) of the Code; or (m) the imposition of a Lien pursuant to Section 401(a)(29) or 412(n) of the Code or pursuant to
ERISA with respect to any employee pension plan. 
  
 “Eurocurrency Liabilities” has the meaning assigned to that term in Regulation D of the Federal Reserve Board. 
  
 “Eurodollar Lending Office” means, with respect to any Lender, the office of such Lender specified as its “Eurodollar Lending
Office” from time to time to the Borrower and the Administrative Agent. 
  
 “Eurodollar Rate” means, with respect to any Eurodollar Rate Loan for any Interest Period, the rate per annum determined by the Administrative Agent at approximately 11:00 a.m. (London time) on
the date that is two Business Days prior to the beginning of such Interest Period by reference to the British Bankers’ Association Interest Settlement Rates for deposits in Dollars (as set forth by any service selected by the Administrative
Agent which has been nominated by the British Bankers’ Association as an authorized information vendor for the purpose of displaying such rates) for a period equal to such Interest Period; provided, however, that, to the extent
that an interest rate is not ascertainable pursuant to the foregoing provisions of this definition “Eurodollar Rate” shall be the interest rate per annum determined by the Administrative Agent to be the average of the rates
per annum at which deposits in Dollars are offered for such Interest Period to major banks in the London interbank market in London, England by the Administrative Agent at approximately 11:00 a.m. (London time) on the date which is two
Business Days prior to the beginning of such Interest Period. Each determination by the Administrative Agent pursuant to this definition shall be conclusive absent manifest error. 
  
 “Eurodollar Rate Loan” means any Loan that, for an Interest Period, bears interest based on the Eurodollar
Rate. 
  
 “Event of Default” has the meaning
specified in Section 9.1 (Events of Default). 
  
 “Excess Cash Flow” means, for any ECF Period, the excess of (a) the sum, without duplication, of (i) EBITDA for such fiscal year and (ii) the decrease, if any, in Current Assets minus Current Liabilities from
the beginning to the end of such fiscal year 

  

 14 

 
over (b) the sum, without duplication, of (i) the amount of any Taxes payable in cash by the Borrower and the Subsidiaries with respect to such
fiscal year, (ii) Interest Expense for such fiscal year payable in cash, (iii) Capital Expenditures made in cash in accordance with Section 8.14 during such fiscal year, except to the extent financed with the proceeds of Indebtedness,
equity issuances, casualty proceeds, condemnation proceeds or other proceeds that would not be included in EBITDA, (iv) permanent repayments of Indebtedness (other than mandatory prepayments of Loans pursuant to Section 2.9(c)) made
by the Borrower and the Subsidiaries during such fiscal year, but only to the extent that such prepayments by their terms cannot be reborrowed or redrawn and do not occur in connection with a refinancing of all or any portion of such Indebtedness,
(v) the increase, if any, in Current Assets minus Current Liabilities from the beginning to the end of such fiscal year, (vi) the amount payable in cash by the Borrower and the Subsidiaries to fund any “employee pension benefit
plan” (as defined in Title I of ERISA) for such fiscal year, (vii) cash investments by the Borrower and its Subsidiaries in any Permitted Acquisition for such fiscal year, except to the extent financed with the proceeds of Indebtedness,
equity issuances, casualty proceeds, condemnation proceeds or other proceeds that would not be included in EBITDA, (viii) cash payments after the Effective Date by the Borrower and its Subsidiaries to the Asbestos PI Trust pursuant to the Plan
of Reorganization and (ix) the excess, if any, of cash payments by the Borrower over the amount of accrued expense for any long-term liabilities (including, without duplication, accumulated post-retirement liabilities). 
  
 “Excluded Taxes” has the meaning specified in
Section 2.16. 
  
 “Existing Credit
Agreement” means that certain Credit Agreement, dated as of February 21, 2000 (as amended, supplemented or otherwise modified through date hereof), by and among the Borrower, Citibank, N.A., as administrative agent, and others,
providing the Borrower and others with a $300 million debtor-in-possession revolving facility. 
  
 “Existing Letters of Credit” means each letter of credit outstanding as a “Letter of Credit” immediately prior to the Effective Date under the Existing Credit Agreement, each of which is set
forth on Schedule 2.4, and each other letter of credit listed on Schedule 2.4. 
  
 “Facilities” means the Revolving Facility, the Synthetic Facility, the Delayed Draw Facility and the provisions herein related to the Revolving Loans, Swing Loans and Letters of Credit. 
  
 “Fair Market Value” means (a) with respect to any asset
or group of assets (other than a marketable Security) at any date, the value of the consideration obtainable in a sale of such asset at such date assuming a sale by a willing seller to a willing purchaser dealing at arm’s length and arranged in
an orderly manner over a reasonable period of time having regard to the nature and characteristics of such asset or, if such asset shall have been the subject of a substantially contemporaneous appraisal by an independent third party appraiser, the
basic assumptions underlying which have not materially changed since its date, the value set forth in such appraisal and (b) with respect 

  

 15 

 
to any marketable Security at any date, the highest closing sale price of such Security on the Business Day next preceding such date, as appearing in any
published list of the principal exchange on which such Security is traded or, if there is no such closing sale price of such Security, the final price for the purchase of such Security at face value quoted on such business day by a financial
institution of recognized standing regularly dealing in securities of such type reasonably acceptable to the Administrative Agent and the Borrower. 
  
 “Federal Funds Rate” means, for any period, a fluctuating interest rate per annum equal for each day during such period to the
weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published for such day (or, if such day is not a Business Day, for the next preceding Business
Day) by the Federal Reserve Bank of New York, or, if such rate is not so published for any day that is a Business Day, the average of the quotations for such day on such transactions received by the Administrative Agent from three Federal funds
brokers of recognized standing selected by it. 
  
 “Federal Reserve Board” means the Board of Governors of the United States Federal Reserve System, or any successor thereto. 
  
 “Fee Letter” means the Fee Letter, dated as of December 19, 2005, addressed to the Borrower from Credit Suisse and accepted by the
Borrower as of December 19, 2005. 
  
 “Financial
Covenant Debt” of any Person means Indebtedness of the type specified in clauses (a), (b), (c), (d), (e), (f) and (g) of the definition of “Indebtedness”. For the avoidance
of doubt, the term “Financial Covenant Debt” shall not include (a) reimbursement or other obligations with respect to unmatured or undrawn, as applicable, Performance Guarantees and (b) Indebtedness of the Borrower, any
Subsidiary of the Borrower or any Permitted Joint Venture that is owed to the Borrower, any Subsidiary of the Borrower or any Permitted Joint Venture. 
  
 “Financial Statements” means the financial statements of the Borrower and its Subsidiaries delivered in accordance with
Section 3.1(c) (Conditions Precedent to Effectiveness), Section 4.4 (Financial Statements) or 6.1 (Financial Statements). 
  
 “Fiscal Quarter” means the fiscal quarter of the Borrower ending on March 31, June 30, September 30 or December 31 of
the applicable calendar year, as applicable. 
  
 “Fiscal
Year” means the fiscal year of the Borrower, which is the same as the calendar year. 
  
 “Foreign Ownership Control or Influence” has the meaning given to such phrase in the Federal National Industrial Security Program Operating Manual and any successor documentation or program thereto.

  

 16 

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

 
 “Fronting Fee” means the Fronting Fee specified in
Section 2.12(b)(i) (Fees). 
  
 “Fronting
Lender” means Credit Suisse or any other Person that, with the approval of the Synthetic Investors and the Administrative Agent in accordance with Section 10.7 (Successor Fronting Lender), becomes the Fronting Lender hereunder.

  
 “Fund” means any Person (other than a natural
Person) that is or will be engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course. 
  
 “GAAP” means generally accepted accounting principles in the United States of America as in effect from
time to time. 
  
 “G-10 Countries” means Belgium,
Canada, France, Germany, Italy, Japan, the Netherlands, Sweden, Switzerland, the United Kingdom and the United States. 
  
 “Governmental Authority” means any nation, sovereign or government, any state or other political subdivision thereof and any entity
exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government, including any central bank. 
  
 “Guarantors” means the Subsidiary Guarantors and, from and after the Delayed Draw Loan Credit Date, BWICO. 
  
 “Guaranty Obligation” means, as applied to any Person,
without duplication, any direct or indirect liability, contingent or otherwise, of such Person with respect to any Indebtedness of another Person, if the purpose of such Person in incurring such liability is to provide assurance to the obligee of
such Indebtedness that such Indebtedness will be paid or discharged, or that any agreement relating thereto will be complied with, or that any holder of such Indebtedness will be protected (in whole or in part) against loss in respect thereof,
including (a) the direct or indirect guaranty, endorsement (other than for collection or deposit in the ordinary course of business), co-making, discounting with recourse or sale with recourse by such Person of Indebtedness of another Person
and (b) any liability of such Person for Indebtedness of another Person through any agreement (contingent or otherwise) (i) to purchase, repurchase or otherwise acquire such Indebtedness or any security therefor, or to provide funds for
the payment or discharge of such Indebtedness (whether in the form of a loan, advance, stock purchase, capital contribution or otherwise), (ii) to maintain the solvency or any balance sheet item, level of income or financial condition of
another Person, (iii) to make take-or-pay or similar payments, regardless of non-performance by any other party or parties to an agreement, (iv) to purchase, sell or lease (as lessor or lessee) property, or to purchase or sell services,
primarily for the purpose of enabling the debtor to make payment of such Indebtedness or to assure the holder of such Indebtedness against loss or (v) to supply funds to, or in any other manner invest in, such other Person 

  

 17 

 
(including to pay for property or services irrespective of whether such property is received or such services are rendered), if (and only if) in the case of
any agreement described under clause (b)(i), (ii), (iii), (iv) or (v) above the primary purpose or intent thereof is to provide assurance to the obligee of Indebtedness of any other Person that such
Indebtedness will be paid or discharged, or that any agreement relating thereto will be complied with, or that any holder of such Indebtedness will be protected (in whole or in part) against loss in respect thereof. The amount of any Guaranty
Obligation shall be equal to the amount of the Indebtedness so guaranteed or otherwise supported or, if such amount is not stated or otherwise determinable, the maximum reasonable anticipated liability in respect thereof as determined by the
guaranteeing Person in good faith. For the avoidance of doubt, the term “Guaranty Obligation” shall not include reimbursement or other obligations with respect to unmatured or undrawn, as applicable, Performance Guarantees. 
  
 “Hedging Contracts” means all Interest Rate Contracts,
foreign exchange contracts, currency swap or option agreements, forward contracts, commodity swap, purchase or option agreements, other commodity price hedging arrangements, and all other similar agreements or arrangements designed to alter the
risks of any Person arising from fluctuations in interest rates, currency values or commodity prices. 
  
 “Indebtedness” of any Person means, without duplication, (a) all indebtedness of such Person for borrowed money, (b) all
obligations of such Person evidenced by promissory notes, bonds, debentures or similar instruments, (c) all matured reimbursement obligations with respect to letters of credit, bankers’ acceptances, surety bonds, performance bonds, bank
guarantees, and other similar obligations, (d) all other obligations with respect to letters of credit, bankers’ acceptances, surety bonds, performance bonds, bank guarantees and other similar obligations, whether or not matured, other
than unmatured or undrawn, as applicable, obligations with respect to Performance Guarantees, (e) all indebtedness for the deferred purchase price of property or services, other than trade payables incurred in the ordinary course of business
that are not overdue by more than ninety days or disputed in good faith, (f) all indebtedness of such Person created or arising under any conditional sale or other title retention agreement (other than operating leases) with respect to property
acquired by such Person (even though the rights and remedies of the seller or lender under such agreement in the event of default are limited to repossession or sale of such property), (g) all Capital Lease Obligations of such Person,
(h) all Guaranty Obligations of such Person, (i) all obligations of such Person to purchase, redeem, retire, defease or otherwise acquire for value any Stock or Stock Equivalents of such Person, valued, in the case of redeemable preferred
stock, at the greater of its voluntary liquidation preference and its involuntary liquidation preference plus accrued and unpaid dividends, (j) net payments that such Person would have to make in the event of an early termination as determined
on the date Indebtedness of such Person is being determined in respect of Hedging Contracts of such Person and (k) all Indebtedness of the type referred to above secured by (or for which the holder of such Indebtedness has an existing right,
contingent or otherwise, to be secured by) any Lien upon or in property (including accounts and general intangibles) owned by such Person, even though such Person has not assumed or become liable for the payment of such Indebtedness. For the
avoidance of doubt, the term “Indebtedness” shall not include reimbursement or other obligations with respect to unmatured or undrawn, as applicable, Performance Guarantees. 
  

 18 

 “Indemnified Matter” has the meaning specified in Section 11.4
(Indemnities). 
  
 “Indemnitees” has the
meaning specified in Section 11.4 (Indemnities). 
  
 “Information Memorandum” means the Confidential Information Memorandum, dated November 30, 2005, in respect of the Facilities. 
  
 “Initial Period” has the meaning specified in Section 2.1(f) (The Commitments; Credit-Linked Deposit Account; Delayed Draw
Loans). 
  
 “Intercompany Subordinated Debt
Payment” means any payment or prepayment, whether required or optional, of principal, interest or other charges on or with respect to any Subordinated Debt of the Borrower or any Subsidiary of the Borrower, so long as (a) such
Subordinated Debt is owed to the Borrower or a Subsidiary of the Borrower and (b) no Event of Default under Sections 9.1(a), 9.1(b) or 9.1(f) shall have occurred and be continuing. 
  
 “Interest Coverage Ratio” means, with respect to any Person
for any period, the ratio of (a) EBITDA of such Person for such period to (b) the Cash Interest Expense of such Person for such period; provided, that for purposes of determining the Interest Coverage Ratio for the four Fiscal
Quarter periods ending on each of the Fiscal Quarters ending March 31, 2006, June 30, 2006 and September 30, 2006, Cash Interest Expense for such Fiscal Quarter shall be multiplied by 4, 2 and 4/3, respectively. 
  
 “Interest Expense” means, for any Person for any period,
total interest expense of such Person and its Subsidiaries for such period, as determined on a consolidated basis in conformity with GAAP and including, in any event (without duplication for any period or any amount included in any prior period),
(i) net costs under Interest Rate Contracts for such period, (ii) any commitment fee (including, in the case of the Borrower or any of its Subsidiaries, the Revolving Commitment Fee and the Delayed Draw Commitment Fee) accrued, accreted or
paid by such Person during such period, (iii) any fees and other obligations (other than reimbursement obligations) with respect to letters of credit (including, in respect of the Borrower or any of its Subsidiaries, the Letter of Credit
Participation Fees) and bankers’ acceptances (whether or not matured) accrued, accreted or paid by such Person for such period and (iv) the Fronting Fee. For purposes of the foregoing, interest expense shall (i) be determined after
giving effect to any net payments made or received by the Borrower or any Subsidiary with respect to interest rate Hedging Agreements and (ii) exclude interest expense accrued, accreted or paid by the Borrower, any Subsidiary of the Borrower or
any Permitted Joint Venture to the Borrower, any Subsidiary of the Borrower or any Permitted Joint Venture. 
  
 “Interest Period” means, in the case of any Eurodollar Rate Loan, (a) initially, the period commencing on the date such Eurodollar
Rate Loan is made or on 

  

 19 

 
the date of conversion of a Base Rate Loan to such Eurodollar Rate Loan and ending one, two, three or six months thereafter or, with the prior written
consent of all Lenders, nine or twelve months thereafter, as selected by the Borrower in its Notice of Borrowing or Notice of Conversion or Continuation given to the Administrative Agent pursuant to Section 2.2 (Borrowing Procedures) or
2.11 (Conversion/Continuation Option), and (b) thereafter, if such Loan is continued, in whole or in part, as a Eurodollar Rate Loan pursuant to Section 2.11 (Conversion/Continuation Option), a period commencing on the last
day of the immediately preceding Interest Period therefor and ending one, two, three or six months thereafter or, with the prior written consent of all Lenders, nine or twelve months thereafter, as selected by the Borrower in its Notice of
Conversion or Continuation given to the Administrative Agent pursuant to Section 2.11 (Conversion/Continuation Option); provided, however, that all of the foregoing provisions relating to Interest Periods in respect of
Eurodollar Rate Loans are subject to the following: 
  
 (i) if any Interest Period would otherwise end on a day that is not a Business Day, such Interest Period shall be extended to the next succeeding Business Day, unless the result of such extension would be to extend such Interest Period into
another calendar month, in which event such Interest Period shall end on the immediately preceding Business Day; 
  
 (ii) any Interest Period that begins on the last Business Day of a calendar month (or on a day for which there is no numerically
corresponding day in the calendar month at the end of such Interest Period) shall end on the last Business Day of a calendar month; 
  
 (iii) the Borrower may not select any Interest Period in respect of Loans having an aggregate principal amount of less than $5,000,000;
and 
  
 (iv) there shall be outstanding at any
one time no more than ten Interest Periods in the aggregate. 
  
 “Interest Rate Contracts” means all interest rate swap agreements, interest rate cap agreements, interest rate collar agreements and interest rate insurance. 
  
 “Investment” means, with respect to any Person, (a) any purchase or similar acquisition by such Person
of (i) any Security issued by, (ii) a beneficial interest in any Security issued by, or (iii) any other equity ownership interest in, any other Person, (b) any purchase by such Person of all or substantially all of the assets of
a business conducted by any other Person, or all or substantially all of the assets constituting what is known to the Borrower to be the business of a division, branch or other unit operation of any other Person, (c) any loan, advance (other
than deposits with financial institutions available for withdrawal on demand, prepaid expenses, accounts receivable and similar items made or incurred in the ordinary course of business) or capital contribution by such Person to any other Person,
including all Indebtedness of any other Person to such Person arising from a sale of property by such Person other than in the ordinary course of its business, (d) any Guaranty Obligation incurred by such Person in respect of Indebtedness

  

 20 

 
of any other Person and (e) the drawn amounts of Performance Guarantees for the direct or indirect benefit of a Subsidiary or Affiliate or a contract
counterparty thereof. For the avoidance of doubt, the term “Investment” shall not include reimbursement or other obligations with respect to unmatured or undrawn, as applicable, Performance Guarantees. 
  
 “Inventory” has the meaning specified in the Pledge and
Security Agreement. 
  
 “IRS” means the Internal
Revenue Service of the United States or any successor thereto. 
  
 “Issue” means, with respect to any Letter of Credit, to issue, extend the expiry of, renew or increase the maximum stated amount (including by deleting or reducing any scheduled decrease in such maximum stated amount) of,
such Letter of Credit. The terms “Issued” and “Issuance” shall have a corresponding meaning. 
  
 “Issuer” means each Lender or Affiliate of a Lender that (a) is listed on the signature pages of the Agreement as an
“Issuer” or (b) hereafter becomes an Issuer with the approval of the Administrative Agent and the Borrower by agreeing pursuant to an agreement with and in form and substance satisfactory to the Administrative Agent and the
Borrower to be bound by the terms hereof applicable to Issuers. 
  
 “Landlord Lien Waiver” means a lien waiver signed by a landlord, substantially in the form of Exhibit L, or if requested by the Borrower, such other form that is satisfactory to the Administrative Agent. 

 
 “Leases” means, with respect to any Person, all of the
leasehold estates in Real Property of such Person, as lessee, as such may be amended, supplemented or otherwise modified from time to time. 
  
 “Lender” means each financial institution or other entity that (a) is listed on the signature pages of the Agreement as a
“Lender” (including the Fronting Lender and each Swing Loan Lender) or (b) from time to time becomes a party hereto as a Lender by execution of an Assignment and Acceptance. 
  
 “Letter of Credit” means each Existing Letter of Credit and
any letter of credit issued pursuant to Section 2.4 (Letters of Credit). 
  
 “Letter of Credit Participation Fees” means the Revolving Letter of Credit Participation Fee and the Synthetic Letter of Credit Participation Fee. 
  
 “Letter of Credit Obligations” means, at any time, without
duplication, the aggregate amount of all liabilities at such time of the Borrower to all Issuers with respect to Letters of Credit, whether or not any such liability is contingent, including the sum of (a) the Reimbursement Obligations at such
time (or, for any Reimbursement Obligations in any Alternative Currency, the Dollar Equivalent thereof) and (b) the Letter of Credit Undrawn Amounts at such time. 
  

 21 

 “Letter of Credit Reimbursement Agreement” has the meaning specified in
Section 2.4(e) (Letters of Credit). 
  
 “Letter of Credit Request” has the meaning specified in Section 2.4(c) (Letters of Credit). 
  
 “Letter of Credit Undrawn Amounts” means, at any time, the aggregate undrawn face amount of all Letters of Credit outstanding at such
time (or, for any Letter of Credit denominated in an Alternative Currency, the Dollar Equivalent thereof). 
  
 “Leverage Ratio” means, with respect to any Person as of any day, the ratio of (a) Financial Covenant Debt of such Person and its
Subsidiaries determined on a consolidated basis in accordance with GAAP as of such day to (b) EBITDA for such Person for the last four full Fiscal Quarters ending prior to such day. 
  
 “Lien” means any mortgage, deed of trust, pledge, hypothecation, assignment, charge, deposit arrangement,
encumbrance, lien (statutory or other), security interest or preference, priority or other security agreement or preferential arrangement of any kind or nature whatsoever intended to assure payment of any Indebtedness or the performance of any other
obligation, including any conditional sale or other title retention agreement, the interest of a lessor under a Capital Lease and any financing lease having substantially the same economic effect as any of the foregoing, and the filing of any
effective financing statement under the UCC or comparable law of any jurisdiction naming the owner of the asset to which such Lien relates as debtor. 
  
 “Loan” means any loan made by any Lender pursuant to this Agreement, including, unless the context requires otherwise, any Swing Loan
made by the Swing Loan Lender. 
  
 “Loan
Documents” means, collectively, this Agreement, the Notes (if any), the BWICO Guaranty, each Letter of Credit Reimbursement Agreement, the Collateral Documents, the global intercompany note in the form of Exhibit J and each
certificate, agreement or document executed by a Loan Party and delivered to the Administrative Agent or any Lender in connection with or pursuant to any of the foregoing. 
  
 “Loan Party” means each of the Borrower and each Guarantor. 
  
 “Management Services Agreement” means the Support Services
Agreement dated as of January 1, 2000, among MI, the Borrower and certain Affiliates of the Borrower. 
  
 “Material Adverse Change” shall mean (a) a material adverse change (other than changes which have occurred pursuant to the Plan of
Reorganization and related settlements approved by the U.S. Bankruptcy Court or U.S. District Court in connection with the Restructuring) since December 31, 2004 in any of the condition (financial or otherwise), business, results of operations
or properties of the Borrower and the Guarantors taken as a whole, (b) a material adverse change in the perfection or 

  

 22 

 
priority of the Liens granted pursuant to the Collateral Documents, (c) the occurrence and continuance of any event or circumstance which could
reasonably be expected to have a material adverse effect on the Loan Parties’ ability to perform their respective obligations under the Loan Documents or (d) a material adverse effect on the validity or enforceability against the Loan
Parties of the Loan Documents or the rights or remedies of the Administrative Agent, the Lenders, the Synthetic Investors or the Issuers thereunder. 
  
 “Material Adverse Effect” means an effect that results in or causes, or would reasonably be expected to result in or cause, a Material
Adverse Change. 
  
 “Material Intellectual
Property” has the meaning specified in the Pledge and Security Agreement. 
  
 “Material Subsidiary” means, with respect to any date of determination, a Subsidiary contributing more than (i) 10% of the EBITDA or (ii) 10% of total assets (as determined in accordance
with GAAP and based on book value), in each case of the Borrower and its Subsidiaries on a consolidated basis in the Fiscal Year immediately preceding such date. 
  
 “MI” shall mean McDermott Incorporated (a Delaware corporation and a wholly owned Subsidiary of MII).

  
 “MII” shall mean McDermott International,
Inc. (a Panamanian Corporation). 
  
 “MTI Loan and
Associated Payments” shall mean an amount or amounts in the aggregate not exceeding $28,100,000, representing monies that are paid or loaned by the Borrower or any Subsidiary of the Borrower to BWICO or any Affiliate of BWICO on the
Effective Date as a reimbursement settlement of certain payments made by McDermott Technologies, Inc. to Babcock & Wilcox Canada on December 28, 2005 to extinguish loan and other obligations. 
  
 “Moody’s” means Moody’s Investors Services, Inc.

  
 “Mortgaged Properties” mean, initially, each
parcel of real property and the improvements thereto owned or leased by a Loan Party and specified on Schedule 4.19(b), and shall include each other parcel of real property and improvements thereto with respect to which a Mortgage is granted
pursuant to Section 7.12 (Real Property). 
  
 “Mortgages” mean the fee or leasehold mortgages or deeds of trust, assignments of leases and rents and other security documents granting a Lien on any Mortgaged Property to secure the Secured Obligations, each in form and
substance reasonably satisfactory to the Collateral Agent, as the same may be amended, supplemented, replaced or otherwise modified from time to time in accordance with this Agreement. 
  

 23 

 “Multiemployer Plan” means a multiemployer plan, as defined in Section 4001(a)(3)
of ERISA, to which the Borrower, any of its Subsidiaries, any Guarantor or any ERISA Affiliate has any obligation or liability, contingent or otherwise. 
  
 “Net Cash Proceeds” means proceeds received by any Loan Party (or by any Subsidiary of any Loan Party that is not a Loan Party,
(x) to the extent of the Loan Parties’ direct or indirect aggregate interest therein and (y)(1) in the case of a Permitted Joint Venture or a Subsidiary that is not a Wholly-Owned Subsidiary of a Loan Party and (2) if
distribution of such proceeds to the Loan Parties is prohibited by Requirements of Law or Contractual Obligations (including Contractual Obligations incorporated within the Constituent Documents of such Subsidiary or Permitted Joint Venture) with
any Person other than the Borrower, its Subsidiaries and Permitted Joint Ventures, only to the extent of any distribution of such proceeds actually received by such Loan Party) after the Effective Date in cash or Cash Equivalents from any
(a) Asset Sale (other than any Asset Sale permitted under clauses (a), (b), (c), (e), (f), (g), (h) of Section 8.4) permitted hereunder net of (i) the reasonable cash costs of sale, assignment, sale-leaseback or other
disposition, (ii) taxes paid or reasonably estimated to be payable as a result thereof (including, for the avoidance of doubt, as a result of any distribution of such proceeds to the Loan Parties) and (iii) for any Asset Sale, any amount
required to be paid or prepaid on Indebtedness (other than the Obligations) secured by the assets subject to such Asset Sale, provided, however, that evidence of each of (i), (ii) and (iii) above is
provided to the Administrative Agent in form and substance reasonably satisfactory to it, (b) Property Loss Event, net of (i) reasonable costs and expenses associated with settling any claim with respect to such Property Loss Event and
(ii) taxes paid or reasonably estimated to be payable as a result thereof, provided, however, that evidence of each of (i) and (ii) above is provided to the Administrative Agent in form and substance
reasonably satisfactory to it, or (c) issuance or incurrence of Indebtedness not permitted under this Agreement, net of all taxes paid or reasonably estimated to be payable as a result thereof and reasonable and customary fees, commissions,
costs and other expenses incurred by the Borrower and its Subsidiaries in connection therewith. 
  
 “Non-Consenting Lender” has the meaning specified in Section 11.1(c) (Amendments, Waivers, Etc.). 
  
 “Non-Debtor Affiliate Settlement Agreement” means that
certain Non-Debtor Affiliate Settlement Agreement in the form of Exhibit C to the Plan of Reorganization as in effect on the date hereof. 
  
 “Non-Funding Lender” has the meaning specified in Section 2.2(c) (Borrowing Procedures). 
  
 “Non-Recourse Indebtedness” means Indebtedness of a
Permitted Joint Venture or Subsidiary of the Borrower (in each case that is not a Loan Party) (a) that is on terms and conditions reasonably satisfactory to the Administrative Agent, (b) that is not, in whole or in part, Indebtedness of
any Loan Party (and for which no Loan Party has created, maintained or assumed any Guaranty Obligation) and for which no holder thereof has or could have upon the occurrence of any contingency, any recourse against 

  

 24 

 
any Loan Party or the assets thereof, (c) owing to an unaffiliated third-party (which for the avoidance of doubt does not include the Borrower, any
Subsidiary thereof, any other Loan Party, any Permitted Joint Venture (or owner of any interest therein) and any Affiliate of any of them) and (d) the source of repayment for which is expressly limited to the assets or cash flows of such
Permitted Joint Venture or Subsidiary. 
  
 “Non-U.S.
Financial Institution” means each Lender, Synthetic Investor or the Administrative Agent that is not a United States person as defined in Section 7701(a)(30) of the Code. 
  
 “Note” means a promissory note of the Borrower payable to any Lender and its registered assigns in a
principal amount equal to the amount of such Lender’s Commitment evidencing the aggregate Indebtedness of the Borrower to such Lender resulting from the Revolving Loans (and, if such Lender is also the Swing Loan Lender, Swing Loans), Delayed
Draw Loans or Synthetic Loans, as applicable, owing to such Lender. 
  
 “Notice of Borrowing” has the meaning specified in Section 2.2(a) (Borrowing Procedures). 
  
 “Notice of Conversion or Continuation” has the meaning specified in Section 2.11 (Conversion/Continuation Option).

  
 “Obligations” means the Loans, the Letter of
Credit Obligations and all other amounts, obligations, covenants and duties owing by the Borrower and the other Loan Parties to the Agents, any Lender, any Issuer, any Synthetic Investor, any Affiliate of any of them or any Indemnitee, of every type
and description (whether by reason of an extension of credit, opening or amendment of a letter of credit or payment of any draft drawn thereunder, loan, guaranty, indemnification, foreign exchange or currency swap transaction, interest rate hedging
transaction or otherwise), present or future, arising under (a) this Agreement or any other Loan Document or (b) any Hedging Contract that (i) is in effect on the Effective Date with a counterparty that is the Administrative Agent, a
Lender, a Synthetic Investor or any Affiliate of any of the foregoing or (ii) entered into after the Effective Date with a counterparty that was, at the time such Hedging Contract was entered into, the Administrative Agent, a Lender, a
Synthetic Investor or any Affiliate of any of the foregoing, whether direct or indirect (including those acquired by assignment), absolute or contingent, due or to become due, now existing or hereafter arising and however acquired and whether or not
evidenced by any note, guaranty or other instrument or for the payment of money, including all letter of credit and other fees (including, the Commitment Fee and the Fronting Fee), interest (including post-petition interest, whether or not allowed
in a bankruptcy proceeding), charges, expenses, attorneys’ fees and disbursements and other sums chargeable to the Borrower under this Agreement or any other Loan Document and all obligations of the Borrower under any Loan Document to provide
cash collateral for Letter of Credit Obligations. 
  

 25 

 “Outstandings” means, at any particular time, the sum of the principal amount of the
Loans outstanding at such time and the Letter of Credit Obligations outstanding at such time. 
  
 “PBGC” means the Pension Benefit Guaranty Corporation or any successor thereto. 
  
 “Perfection Certificate” shall have the meaning ascribed to it in Section 3.1(h) (Perfection Certificate). 
  
 “Performance Guarantee” of any Person means (a) any
letter of credit, bankers acceptance, surety bond, performance bond, bank guarantee or other similar obligation issued for the account of such Person to support only trade payables or nonfinancial performance obligations of such Person, (b) any
letter of credit, bankers acceptance, surety bond, performance bond, bank guarantee or other similar obligation issued for the account of such Person to support any letter of credit, bankers acceptance, surety bond, performance bond, bank guarantee
or other similar obligation issued for the account of a Subsidiary or Permitted Joint Venture of such Person to support only trade payables or non-financial performance obligations of such Subsidiary or Permitted Joint Venture, and (c) any
parent company guarantee or other direct or indirect liability, contingent or otherwise, of such Person with respect to trade payables or non-financial performance obligations of a Subsidiary or Permitted Joint Venture of such Person, if the purpose
of such Person in incurring such liability is to provide assurance to the obligee that such contractual obligation will be performed, or that any agreement relating thereto will be complied with. 
  
 “Permit” means any permit, approval, authorization, license,
variance or permission required from a Governmental Authority under an applicable Requirement of Law. 
  
 “Permitted Acquisition” means any Proposed Acquisition subject to the satisfaction of each of the following conditions: 
  
 (a) if the consideration (excluding performance-based contingent
consideration (including, without limitation, earn-out payments and royalty payments)) in respect of any such Proposed Acquisition is in excess of $10,000,000, the Administrative Agent shall receive prior written notice of such Proposed Acquisition,
which notice shall include, without limitation, a reasonably detailed description of such Proposed Acquisition; 
  
 (b) following such Proposed Acquisition, the Borrower would be in compliance with Section 8.7 (Change in Nature of Business); 
  
 (c) if such Proposed Acquisition involves assets primarily located in
jurisdictions outside of the United States, the sum of (i) all amounts payable in cash plus (ii) any Indebtedness or other liabilities incurred or assumed by any Loan Party in connection with such Proposed Acquisition, together with
all other such Proposed Acquisitions, shall not exceed $10,000,000 (excluding performance-based contingent consideration (including, without limitation, earn-out payments and royalty payments)); 
  

 26 

 (d) after giving effect to such Proposed Acquisition, the Available Credit plus any unrestricted cash and
Cash Equivalents of the Borrower and its Subsidiaries shall not be less than $50,000,000; 
  
 (e) within 30 days (or, in respect of real estate matters, 45 days) after the closing of such Proposed Acquisition, the Borrower (or the Subsidiary making such Proposed Acquisition) and the target of such Proposed
Acquisition shall have executed such documents and taken such actions as may be required under Sections Section 7.11 (Additional Collateral and Guaranties) and Section 7.12 (Real Property); and 
  
 (f) at the time of such Proposed Acquisition and after giving effect thereto,
(i) no Default or Event of Default shall have occurred and be continuing and the Borrower shall have demonstrated compliance with Section 5.1 (Maximum Leverage Ratio) on a pro forma basis as if such maximum Leverage Ratio
were 0.25:1.00 more restrictive than as set forth in Section 5.1 and (ii) all representations and warranties contained in Article IV (Representations and Warranties) and in the other Loan Documents shall be true and correct in
all material respects. 
  
 “Permitted Joint
Venture” means any joint venture (which may be in the form of any limited liability company or other Person), including any Domestic Subsidiary of the Borrower that is not a Wholly-Owned Subsidiary thereof, in which the Borrower or any of
its Subsidiaries holds Stock or Stock Equivalents or otherwise participates or invests; provided, however, that (a) the investors or participants in such joint venture participate in such joint venture on substantially the same
terms as the Borrower or such Subsidiary, (b) the Lenders have a valid, perfected, first priority security interest in the Stock, Stock Equivalents or other interests in such joint venture held by the Borrower or any of its Domestic
Subsidiaries except where (i) the governing documents of such joint venture prohibit such a security interest to be granted to the Lenders or (ii) such joint venture has incurred Non-Recourse Indebtedness the terms of which either
(x) require security interests in such Stock, Stock Equivalents or other interests to be granted to secure such Non-Recourse Indebtedness or (y) prohibit such a security interest to be granted to the Lenders, and (c) no Loan Party
shall, pursuant to such joint venture, be under any Contractual Obligation to make Investments or incur Guaranty Obligations after the later of the Effective Date and the initial formation of such joint venture that would be in violation of any
provision of this Agreement. 
  
 “Person” means
an individual, partnership, corporation (including a business trust), joint stock company, estate, trust, limited liability company, unincorporated association, joint venture or other entity, or a Governmental Authority. 
  
 “Plan Effective Date” shall have the meaning ascribed to it
in Section 3.1(g) (Plan Effective Date). 
  

 27 

 “Plan of Reorganization” shall have the meaning specified in the recitals to this
Agreement. 
  
 “Pledge and Security Agreement”
means the Pledge and Security Agreement dated as of the date hereof, a copy of which is attached as Exhibit I (Pledge and Security Agreement), executed by the Borrower, each Guarantor and the Administrative Agent. 
  
 “Pledged Notes” has the meaning specified in the Pledge and
Security Agreement. 
  
 “Pledged Stock” has the
meaning specified in the Pledge and Security Agreement. 
  
 “Prime Rate” means the rate of interest per annum established from time to time by the Administrative Agent as its prime rate in effect at its principal office in New York City. Each change in the Prime Rate shall be
effective on the date such change is announced as being effective. 
  
 “Projections” means those financial projections of the Borrower and its Subsidiaries covering the Fiscal Years ending in 2006 through 2010, inclusive, and for each fiscal quarter of 2006, delivered to the Administrative
Agent by the Borrower. 
  
 “Property Loss Event”
means (a) any loss of or damage to property of the Borrower or any of its Domestic Subsidiaries that results in the receipt by such Person of proceeds of insurance in excess of $5,000,000 individually or $10,000,000 in the aggregate per Fiscal
Year for all such losses and damages or (b) any taking of property, or condemnation of property (or deed in lieu thereof), of the Borrower or any of its Domestic Subsidiaries that results in the receipt by such Person of a compensation payment
in respect thereof in excess of $5,000,000 individually or $10,000,000 in the aggregate per Fiscal Year for all such takings and condemnations. 
  
 “Proposed Acquisition” means the proposed acquisition by the Borrower or any of its Domestic Subsidiaries of all or substantially all of
the assets or Stock of any Person or entity (other than a Person or entity who, prior to such Proposed Acquisition, was already a Wholly-Owned Subsidiary of the Borrower and a Domestic Subsidiary), or the merger of any Person or entity (other than a
Person or entity who, prior to such Proposed Acquisition, was already a Wholly-Owned Subsidiary of the Borrower and a Domestic Subsidiary) with or into the Borrower or any Domestic Subsidiary of the Borrower (and, in the case of a merger with the
Borrower, with the Borrower being the surviving corporation). 
  
 “Proposed Change” has the meaning specified in Section 11.1(c) (Amendments, Waivers, Etc.). 
  
 “Protective Advances” means all expenses, disbursements and advances incurred by the Administrative Agent pursuant to the Loan Documents
after the occurrence and during the continuance of an Event of Default that the Administrative 

  

 28 

 
Agent, in its sole discretion, deems necessary or desirable to preserve or protect the Collateral or any portion thereof or to enhance the likelihood, or
maximize the amount, of repayment of the Obligations. 
  
 “Purchasing Investor” has the meaning specified in Section 11.7 (Sharing of Payments, Etc.). 
  
 “Purchasing Lender” has the meaning specified in Section 11.7 (Sharing of Payments, Etc.). 
  
 “Ratable Portion” or “ratably” means
(i) with respect to any Lender under the Revolving Facility, the percentage obtained by dividing (a) the Revolving Commitment of such Lender by (b) the aggregate Revolving Commitments of all Lenders (or, at any time after the
Revolving Facility Termination Date, the percentage obtained by dividing the aggregate outstanding principal amount of Revolving Loans owing to such Lender by the aggregate outstanding principal amount of Revolving Loans owing to all Lenders);
(ii) with respect to any Synthetic Investor under the Synthetic Facility, the percentage obtained by dividing the amount of the Credit-Linked Deposit of such Synthetic Investor by the aggregate amount of the Credit-Linked Deposits of all
Synthetic Investors.; and (iii) with respect to any Lender under the Delayed Draw Facility, the percentage obtained by dividing (a) the Delayed Draw Commitment of such Lender by (b) the aggregate Delayed Draw Commitments of all
Lenders (or, at any time after the Delayed Draw Commitment Termination Date, the percentage obtained by dividing the aggregate principal amount of Delayed Draw Loans owing to such Lender by the aggregate principal amount of Delayed Draw Loans owing
to all Lenders). 
  
 “Real Property” means all
Mortgaged Property and all other real property owned or leased from time to time by any Loan Party or any of its Subsidiaries. 
  
 “Recapitalization” shall have the meaning specified in the recitals to this Agreement. 
  
 “Register” has the meaning specified in
Section 11.2(c) (Assignments and Participations). 
  
 “Reimbursement Date” has the meaning specified in Section 2.4(h) (Letters of Credit). 
  
 “Reimbursement Obligations” means all matured reimbursement or repayment obligations of the Borrower to any Issuer with respect to
amounts drawn under Letters of Credit. 
  
 “Reinvestment
Deferred Amount” means, with respect to any Reinvestment Event, the aggregate Net Cash Proceeds received by any Loan Party in connection therewith that the Borrower (directly or indirectly through one of its Subsidiaries) intends to use to
acquire assets useful in its or one of its Subsidiaries’ businesses or, in the case of a Property Loss Event, to effect repairs or replacement, as set forth in the Reinvestment Notice relating to such Reinvestment Event. 
  

 29 

 “Reinvestment Event” means receipt by the Borrower or any of its Subsidiaries of the Net
Cash Proceeds from any Asset Sale or Property Loss Event in respect of which the Borrower has delivered a Reinvestment Notice. 
  
 “Reinvestment Notice” means a written notice executed by an Authorized Officer of the Borrower stating that no Default or Event of
Default has occurred and is continuing and that the Borrower (directly or indirectly through one of its Subsidiaries) intends and expects to use all or a specified portion of the Net Cash Proceeds of an Asset Sale or Property Loss Event to acquire
assets useful in its or one of its Subsidiaries’ businesses or, in the case of a Property Loss Event, to effect repairs or replacement. 
  
 “Reinvestment Prepayment Amount” means, with respect to any Reinvestment Event, the Reinvestment Deferred Amount relating thereto
less any amount expended or required to be expended pursuant to a Contractual Obligation entered into prior to the relevant Reinvestment Prepayment Date to acquire assets useful in the Borrower’s or a Subsidiary’s business or, in
the case of a Property Loss Event, to effect repairs or replacement. 
  
 “Reinvestment Prepayment Date” means, with respect to any Reinvestment Event, the earlier of (a) the date occurring 365 days after such Reinvestment Event and (b) the date that is five Business Days after the date
on which the Borrower shall have notified the Administrative Agent of the Borrower’s determination not to acquire assets useful in the Borrower’s or a Subsidiary’s business (or, in the case of a Property Loss Event, not to effect
repairs or replacement) with all or any portion of the relevant Reinvestment Deferred Amount. 
  
 “Release” means, with respect to any Person, any release, spill, emission, leaking, pumping, injection, deposit, disposal, discharge, dispersal, leaching or migration, in each case, of any Contaminant
into the indoor or outdoor environment or into or out of any property owned by such Person, including the movement of Contaminants through or in the air, soil, surface water, ground water or property and, in each case, in violation of Environmental
Law. 
  
 “Remedial Action” means all actions
required by any applicable Requirement of Law to (a) clean up, remove, treat or in any other way address any Contaminant in the indoor or outdoor environment, (b) prevent the Release or threat of Release or minimize the further Release so
that a Contaminant does not migrate or endanger or threaten to endanger public health or welfare or the indoor or outdoor environment or (c) perform pre-remedial studies and investigations and post-remedial monitoring and care. 
  
 “Requirement of Law” means, with respect to any Person, the
common law and all federal, state, local and foreign laws, rules and regulations, orders, judgments, decrees and other determinations of any Governmental Authority or arbitrator, applicable to or binding upon such Person or any of its property or to
which such Person or any of its property is subject. 
  

 30 

 “Requisite Lenders” means, at any time, (i) Lenders having Loans, unused Revolving
Commitments and Delayed Draw Commitments and (ii) Synthetic Investors having Credit-Linked Deposits, representing at least a majority of the sum of all Loans outstanding, unused Revolving Commitments, Delayed Draw Commitments and Credit-Linked
Deposits at such time. 
  
 “Responsible Officer”
means, with respect to any Person, any of the principal executive officers, managing members or general partners of such Person but, in any event, with respect to financial matters, the chief financial officer, treasurer or controller of such
Person. 
  
 “Restricted Payment” means
(a) any dividend, distribution or any other payment whether direct or indirect, on account of any Stock or Stock Equivalents of the Borrower or any of its Subsidiaries now or hereafter outstanding, except a dividend payable solely in Stock or
Stock Equivalents (other than Disqualified Stock) or a dividend or distribution payable solely to the Borrower or one or more Subsidiary Guarantors, (b) any redemption, retirement, sinking fund or similar payment, purchase or other acquisition
for value, direct or indirect, of any Stock or Stock Equivalents of the Borrower or any of its Subsidiaries now or hereafter outstanding other than one payable solely to the Borrower or one or more Subsidiary Guarantors and (c) any payment or
prepayment of principal, premium (if any), interest, fees (including fees to obtain any waiver or consent in connection with any Indebtedness) or other charges on, or redemption, purchase, retirement, defeasance, sinking fund or similar payment with
respect to, any Subordinated Debt of the Borrower or any other Loan Party, other than any Intercompany Subordinated Debt Payment or any required payment, prepayment, redemption, retirement, purchases or other payments, in each case to the extent
permitted to be made by the terms of such Subordinated Debt. 
  
 “Restructuring” shall have the meaning specified in the recitals to this Agreement. 
  
 “Retained Excess Cash Flow” means the amount of Excess Cash Flow (as calculated for the applicable ECF Period set forth in clause
(i) of the definition thereof) minus any amount thereof required to be paid to the Delayed Draw Lenders in accordance with Sections 2.9(c) and 2.9(e). 
  
 “Revolving Commitment” means, with respect to each Lender, the commitment of such Lender to make Revolving
Loans or to participate in Letters of Credit and Swing Loans under the Revolving Facility in the aggregate principal amount outstanding not to exceed the amount set forth opposite such Lender’s name on Schedule I (Revolving
Commitments) under the caption “Revolving Commitment,” as amended to reflect each Assignment and Acceptance executed in accordance herewith, and as such amount may be reduced pursuant to this Agreement. “Revolving
Commitments” means the aggregate of such commitments for all Lenders. 
  
 “Revolving Commitment Fee” shall have the meaning ascribed to it in Section 2.12(a) (Fees). 
  

 31 

 “Revolving Exposure” shall mean, with respect to any Lenders, at any time, the sum of
(a) the aggregate principal amount of the outstanding Revolving Loans and participation in Swing Loans held by such Lender at such time plus (b) the Revolving Lender’s Ratable Portion of the Letter of Credit Obligations under
the Revolving Facility at such time. 
  
 “Revolving
Facility” means the Revolving Commitments of Lenders and the provisions herein relating to the Revolving Loans, Swing Loans and Revolving Letters of Credit made by the Lenders with Revolving Commitments (including to reimburse the Issuer
for any draw under any Revolving Letter of Credit or to repay any Swing Loan), which shall be in an aggregate principal amount of $200,000,000 on the Effective Date. 
  
 “Revolving Facility Termination Date” shall mean the earliest of (a) the fifth anniversary of the
Effective Date, (b) the date of termination of all the Revolving Commitments pursuant to Section 2.5 (Reduction and Termination of the Commitments) or Section 9.2 (Remedies) and (c) the date on which all the
Obligations become due and payable pursuant to Section 9.2 (Remedies). 
  
 “Revolving Lender” means any Lender under the Revolving Facility. 
  
 “Revolving Letters of Credit” means and any letter of credit issued under the Revolving Facility pursuant to Section 2.4
(Letters of Credit). 
  
 “Revolving Letter of
Credit Participation Fee” has the meaning specified in Section 2.12(b)(ii) (Fees). 
  
 “Revolving Loan” has the meaning specified in Section 2.1 (The Commitments). 
  
 “S&P” means Standard & Poor’s Rating
Services. 
  
 “SEC” means the U.S. Securities and
Exchange Commission. 
  
 “Secured Obligations”
means, in the case of the Borrower, the Obligations, and, in the case of any other Loan Party, the obligations of such Loan Party under the BWICO Guaranty, the Pledge and Security Agreement and the other Loan Documents to which it is a party.

  
 “Secured Parties” means the Lenders, the
Issuers, each Agent, the Synthetic Investors and any other holder of any Obligation. 
  
 “Security” means any Stock, Stock Equivalent, voting trust certificate, bond, debenture, promissory note or other evidence of Indebtedness, whether secured, unsecured, convertible or subordinated, or
any certificate of interest, share or participation in, or any temporary or interim certificate for the purchase or acquisition of, or any right to subscribe to, purchase or acquire, any of the foregoing, but shall not include any evidence of the
Obligations. 
  

 32 

 “Selling Investor” has the meaning specified in Section 11.7 (Sharing of
Payments, Etc.). 
  
 “Selling Lender” has the
meaning specified in Section 11.7 (Sharing of Payments, Etc.). 
  
 “Solvent” means, with respect to any Person, that the value of the assets of such Person (both at fair value and present fair saleable value) is, on the date of determination, greater than the total
amount of liabilities (including contingent and unliquidated liabilities) of such Person as of such date and that, as of such date, such Person is able to pay all liabilities of such Person as such liabilities are expected to mature and does not
have unreasonably small capital for its then current business activities. In computing the amount of contingent or unliquidated liabilities at any time, such liabilities shall be computed at the amount that, in light of all the facts and
circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability. 
  
 “Special Purpose Vehicle” means any special purpose funding vehicle identified as such in writing by any Lender to the Administrative
Agent and controlled by that Lender. 
  
 “Standby Letter
of Credit” means any Letter of Credit that is not a Documentary Letter of Credit. 
  
 “Stock” means shares of capital stock (whether denominated as common stock or preferred stock), partnership or membership interests, equity participations or other equivalents (regardless of how
designated) of or in a corporation, partnership, limited liability company or similar business entity, whether voting or non-voting. 
  
 “Stock Equivalents” means all securities convertible into or exchangeable for Stock and all warrants, options or other rights to purchase
or subscribe for any Stock, whether or not presently convertible, exchangeable or exercisable. 
  
 “Sub-Account” has the meaning specified in Section 2.1(c) (The Commitments; Credit-Linked Deposit Account; Delayed Draw Loans). 
  
 “Subordinated Debt” means Indebtedness of the Borrower or
any of its Subsidiaries that is, by its terms, expressly subordinated to the prior payment of any of the Obligations pursuant to subordination terms and conditions reasonably satisfactory to the Administrative Agent, and, in the case of intercompany
loans permitted hereunder, subject to the terms of a Global Intercompany Note substantially in the form of Exhibit J (Global Intercompany Note) hereto. The terms of such Global Intercompany Note and any other Subordinated Debt may permit
Intercompany Subordinated Debt Payments. 
  
 “Subsidiary” means, with respect to any Person, any corporation, partnership, limited liability company or other business entity of which an aggregate of more than 50% of the outstanding Voting Stock is, at the time,
directly or indirectly, owned or controlled by such Person or one or more Subsidiaries of such Person. 
  

 33 

 “Subsidiary Guarantor” means each Domestic Subsidiary of the Borrower that becomes party
to the Pledge and Security Agreement. 
  
 “Swing
Loan” has the meaning specified in Section 2.3 (Swing Loans). 
  
 “Swing Loan Borrowing” means a borrowing consisting of a Swing Loan. 
  
 “Swing Loan Lender” means Credit Suisse or any other Lender that becomes the Administrative Agent or agrees, with the approval of the
Administrative Agent and the Borrower, to act as Swing Loan Lender hereunder. 
  
 “Swing Loan Request” has the meaning specified in Section 2.3(b) (Swing Loans). 
  
 “Syndication Agent” means JPMorgan Chase Bank, N.A. 
  
 “Synthetic Commitment” means, with respect to each Synthetic Investor, the commitment of such Synthetic
Investor to make deposits in the Credit-Linked Deposit Account in an aggregate principal amount outstanding not to exceed the amount set forth opposite such Lender’s name on Schedule I (Commitments) under the caption “Synthetic
Commitment,” as amended to reflect each Assignment and Acceptance executed in accordance herewith, and as such amount may be reduced pursuant to this Agreement. “Synthetic Commitments” means the aggregate of such
commitments for all Lenders. 
  
 “Syndication Completion
Date” means the date that is 60 days after the Effective Date. 
  
 “Synthetic Deposit Amount” shall mean, with respect to each Synthetic Investor, the initial amount of such Synthetic Investor’s Credit-Linked Deposit as shown on the Register (which Register shall be made available to
the Borrower on the Effective Date) or in the Assignment and Acceptance pursuant to which such Synthetic Investor assumed its Synthetic Deposit Amount and Credit-Linked Deposit, as the same may be (a) reduced from time to time pursuant to
Section 2.5 (Reduction and Termination of the Commitments) and (b) with respect to any individual Synthetic Investor, reduced or increased from time to time pursuant to assignments by or to such Synthetic Investor pursuant to
Section 11.2 (Assignments and Participations). As of the Effective Date, the aggregate Synthetic Deposit Amount is $200,000,000. 
  
 “Synthetic Facility” means the Synthetic Commitments of all Synthetic Lenders and the provisions herein relating to the Synthetic Loans,
Credit-Linked Deposits and Letters of Credit issued under the Synthetic Facility made by each Synthetic Lender which shall be in an aggregate principal amount of $200,000,000 on the Effective Date. 
  
 “Synthetic Facility Termination Date” means the earliest of
(a) the sixth anniversary of the Effective Date, (b) the date of termination of all the Synthetic Commitments pursuant to Section 2.5 (Reduction and Termination of the Commitments) or Section 9.2 (Remedies) and
(c) the date on which all the Obligations become fully due and payable pursuant to Section 9.2 (Remedies). 
  

 34 

 “Synthetic Fee” means the Synthetic Fee specified in Section 2.12(c) (Fees).

  
 “Synthetic Fronted Exposure” means, at any
time of determination an amount equal to (a) the aggregate principal amount of the outstanding Synthetic Loans held by the Fronting Lender at such time plus (b) the Letter of Credit Obligations at such time with respect to Synthetic
Letters of Credit. 
  
 “Synthetic Investor” means
each financial institution or other entity that has a Synthetic Deposit Amount. 
  
 “Synthetic Lender” means (i) the Fronting Lender and (ii) Synthetic Investors pursuant to the provisions of Section 2.1(c)(ii). 
  
 “Synthetic Letters of Credit” means any letter of credit
issued under the Synthetic Facility pursuant to Section 2.4 (Letters of Credit). 
  
 “Synthetic Letter of Credit Participation Fee” has the meaning specified in Section 2.12(c)(ii) (Fees). 
  
 “Synthetic Loan” means a Loan made pursuant to
Section 2.1(c)(ii) or Section 2.4(h). 
  
 “Tax Affiliate” means, with respect to any Person, (a) any Subsidiary of such Person, and (b) any Affiliate of such Person with which such Person files or is eligible to file U.S. federal income tax returns.

  
 “Tax Return” has the meaning specified in
Section 4.8 (Taxes). 
  
 “Taxes” has
the meaning specified in Section 2.16(a) (Taxes). 
  
 “Title Insurance Company” shall have the meaning set forth in Section 3.1(p)(Title Insurance). 
  
 “Title IV Plan” means a pension plan, other than a Multiemployer Plan, covered by Title IV of ERISA and to which the Borrower, any of its
Subsidiaries, any Guarantor or any ERISA Affiliate has any obligation or liability (contingent or otherwise). 
  
 “Treasury Regulations” means the final and temporary (but not proposed) income tax regulations promulgated under the Code, as such
regulations may be amended from time to time (including corresponding provisions of succeeding regulations). 
  
 “U.S. Bankruptcy Code” means Chapter 11 of Title 11 of the United States Code. 
  
 “U.S. Bankruptcy Court” means the United States Bankruptcy
Court for the Eastern District of Louisiana. 
  

 35 

 “U.S. District Court” means the United States District Court for the Eastern District of
Louisiana. 
  
 “UCC” has the meaning specified in
the Pledge and Security Agreement. 
  
 “USA Patriot
Act” means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of 2001, as amended. 
  
 “Voting Stock” means Stock of any Person having ordinary power to vote in the election of members of the
board of directors, managers, trustees or similar controlling Persons, of such Person (irrespective of whether, at the time, Stock of any other class or classes of such entity shall have or might have voting power by reason of the happening of any
contingency). 
  
 “Wholly-Owned Domestic
Subsidiary” means a Domestic Subsidiary which is a Wholly-Owned Subsidiary. 
  
 “Wholly-Owned Subsidiary” means, in respect of any Person, any Subsidiary of such Person, all of the Stock of which (other than director’s qualifying shares, and the like, as may be required by
applicable law) is owned by such Person, either directly or indirectly through one or more Wholly-Owned Subsidiaries thereof. 
  
 “Withdrawal Liability” means, with respect to the Borrower, any of its Subsidiaries or any Guarantor at any time, the aggregate liability
incurred (whether or not assessed) with respect to all Multiemployer Plans pursuant to Section 4201 of ERISA. 
  
 Section 1.2 Computation of Time Periods 
  
 In this Agreement, in the computation of periods of time from a specified date to a later specified date, the word “from” means
“from and including” and the words “to” and “until” each mean “to but excluding” and the word “through” means “to and including.” 
  
 Section 1.3 Accounting Terms and Principles 

 
 (a) Except as set forth below, all accounting terms not specifically
defined herein shall be construed in conformity with GAAP and all accounting determinations required to be made pursuant hereto shall, unless expressly otherwise provided herein, be made in conformity with GAAP. 
  
 (b) If any change in the accounting principles used in the preparation of the
most recent Financial Statements referred to in Section 6.1 (Financial Statements) is hereafter required or permitted by the rules, regulations, pronouncements and opinions of the Financial Accounting Standards Board or the American
Institute of Certified Public Accountants (or any successors thereto) and such change is adopted by the Borrower without objection from the Borrower’s Accountants and results in a change in any of the calculations required by Article V
(Financial Covenants) or VIII (Negative 

  

 36 

 
Covenants) had such accounting change not occurred, the parties hereto agree to enter into good faith negotiations in order to amend such provisions
so as to equitably reflect such change with the desired result that the criteria for evaluating compliance with such covenants by the Borrower shall be the same after such change as if such change had not been made; provided, however,
that no change in GAAP that would affect a calculation that measures compliance with any covenant contained in Article V (Financial Covenants) or VIII (Negative Covenants) shall be given effect until such provisions are amended to
reflect such changes in GAAP. 
  
 Section 1.4 Certain
Terms 
  
 (a) The words “herein,”
“hereof” and “hereunder” and similar words refer to this Agreement as a whole, and not to any particular Article, Section, subsection or clause in this Agreement. 
  
 (b) Unless otherwise expressly indicated herein, (i) references in this
Agreement to an Exhibit, Schedule, Article, Section, clause or sub-clause refer to the appropriate Exhibit or Schedule to, or Article, Section, clause or sub-clause in this Agreement and (ii) the words “above” and
“below”, when following a reference to a clause or a sub-clause of any Loan Document, refer to a clause or sub-clause within, respectively, the same Section or clause. 
  
 (c) Each agreement defined in this Article I shall include all appendices, exhibits and schedules thereto.
Unless the prior written consent of the Requisite Lenders is required hereunder for an amendment, restatement, supplement or other modification to any such agreement and such consent is not obtained, references in this Agreement to such agreement
shall be to such agreement as so amended, restated, supplemented or modified. 
  
 (d) References in this Agreement to any statute shall be to such statute as amended or modified, together with any successor legislation, in each case in effect at the time any such reference is operative. 

 
 (e) The term “including” when used in any Loan Document
means “including without limitation” except when used in the computation of time periods. The phrase “in the aggregate”, when used in any Loan Document, means “individually or in the aggregate,”
unless otherwise expressly noted. 
  
 (f) The terms
“Lender,” “Issuer,” “Synthetic Investor,” “Fronting Lender” and “Administrative Agent” include, without limitation, their respective successors. 
  
 (g) Upon the appointment of any successor Administrative Agent pursuant to
Section 10.6 (Successor Administrative Agent), references to Credit Suisse in Section 10.3 (The Agents and the Fronting Lender Individually) and in the definitions of Base Rate, Dollar Equivalent and Eurodollar Rate shall be
deemed to refer to the financial institution then acting as the Administrative Agent or one of its Affiliates if it so designates. 
  

 37 

 ARTICLE II 
  
 THE FACILITIES 
  
 Section 2.1 The Commitments; Credit-Linked Deposit Account; Delayed Draw Loans 
  
 (a) Revolving Loans. On the terms and subject to the conditions
contained in this Agreement, each Lender under the Revolving Facility severally agrees to make loans (each a “Revolving Loan”) to the Borrower from time to time on any Business Day during the period from the Effective Date until the
Revolving Facility Termination Date in Dollars in an aggregate principal amount at any time outstanding that will not result in such Lender’s Revolving Exposure exceeding such Lender’s Revolving Commitment; provided, however,
that at no time shall any Lender be obligated to make a Revolving Loan in excess of such Lender’s Revolving Commitment. Within the limits of each Lender’s Revolving Commitment, amounts of Revolving Loans repaid may be reborrowed under this
Section 2.1. The entire amount of the Revolving Facility will be available in the form of letters of credit issued pursuant to Section 2.4 (“Revolving Letters of Credit”). 
  
 (b) Delayed Draw Loans. During the Delayed Draw Commitment Period,
subject to the terms and conditions hereof, each Lender severally agrees to make Delayed Draw Loans to Borrower in an aggregate amount up to but not exceeding such Lender’s Delayed Draw Commitment; provided the Borrower may make only one
request pursuant to Section 2.2(a) for Delayed Draw Loans (which request shall be in an aggregate amount of not less than the amount necessary to retire and cancel the Asbestos PI Trust Note). Any amount borrowed under this
Section 2.1(b) and subsequently repaid or prepaid may not be reborrowed. Subject to Section 2.6(b), all amounts owed hereunder with respect to the Delayed Draw Loans shall be paid in full no later than the Delayed Draw Loan
Maturity Date. Each Lender’s Delayed Draw Commitment shall expire on the earlier to occur of (x) Delayed Draw Commitment Termination Date and (y) the date any Delayed Draw Loans are issued pursuant to this Section 2.1(b).

  
 (c) (i) Credit-Linked Deposit Account and Sub-Accounts.
On or prior to the Effective Date, the Administrative Agent shall establish the Credit-Linked Deposit Account. The Administrative Agent shall maintain records enabling it to determine at any time the amount of the interest of each Synthetic Investor
in the Credit-Linked Deposit Account (the interest of each Synthetic Investor in the Credit-Linked Deposit Account, as evidenced by such records, being referred to herein as such Synthetic Investor’s “Sub-Account”). Each
Synthetic Investor irrevocably and unconditionally agrees that its Credit-Linked Deposit shall be available to reimburse the Fronting Lender as provided herein. Each Synthetic Investor further agrees that its right, title and interest in and to the
Credit-Linked Deposit Account shall be limited to the right to require amounts in its Sub-Account to be applied as provided herein and that it will have no right to require the return of its Credit-Linked Deposit other than as expressly provided
herein. In addition, each Synthetic Investor hereby acknowledges that (i) the Administrative Agent shall have sole dominion and control over the Credit-Linked Deposit Account and no other Person shall have the right to make any withdrawal from
the Credit-Linked 
  

 38 

 
Deposit Account or to exercise any other right or power with respect thereto, (ii) its Credit-Linked Deposit constitutes payment for its participations
in Synthetic Loans made (or deemed made) or to be made (or deemed made) and Synthetic Letters of Credit issued or to be issued hereunder, (iii) its Credit-Linked Deposit and any investments made therewith shall secure its obligations to the
Fronting Lender hereunder (each Synthetic Investor hereby granting to the Administrative Agent, for the benefit of the Fronting Lender, a security interest in its Credit-Linked Deposit and agreeing that the Administrative Agent, as holder of the
Credit-Linked Deposits, Sub-Accounts and any investments made therewith, will be acting, inter alia, as collateral agent for the Fronting Lender and may set off against its Credit-Linked Deposit amounts owed by such Synthetic Investor to the
Fronting Lender), (iv) the Fronting Lender is agreeing to make Synthetic Loans and to acquire participations in Synthetic Letters of Credit in reliance on the availability of such Synthetic Investor’s Credit-Linked Deposit to discharge
such Synthetic Investor’s obligations herein and (v) the failure of any Synthetic Investor to make available to the Fronting Lender its Credit-Linked Deposit shall not relieve any other Synthetic Investor of its obligation hereunder to
make available to the Fronting Agent its Credit-Linked Deposit, but no Synthetic Investor shall be responsible for the failure of any other Synthetic Investor to make available to the Fronting Lender such other Synthetic Investor’s
Credit-Linked Deposit. 
  
 (ii) Synthetic Loans. Either
(x) upon the occurrence and during the continuance of an Event of Default or (y) pursuant to the reimbursement provisions of Section 2.4(h), the Fronting Lender shall have the absolute right to be reimbursed from the
Credit-Linked Deposit Account in an amount equal to the then-outstanding Synthetic Loans of the Fronting Lender made pursuant to Section 2.4(h) (Letters of Credit). Each Synthetic Investor hereby authorizes the withdrawal, and the
Administrative Agent hereby agrees to withdraw, from the Credit-Linked Deposit Account (and to debit such Synthetic Investor’s Sub-Account in the amount of) each such Synthetic Investor’s Ratable Portion of such outstanding Synthetic Loans
for payment to the Fronting Lender. Subject to the redeposit provisions set forth below, following such withdrawal and reimbursement, each Synthetic Investor will become a Synthetic Lender (without a commitment) to the extent of such withdrawal (and
such withdrawal and payment shall not alter the obligation of the Borrower to repay all or any portion of such Synthetic Loans together with interest thereon, all as provided herein). So long as the Commitments shall not have terminated, promptly
following receipt by the Administrative Agent of any payment from a Loan Party in respect of such Synthetic Loans and participations after such withdrawals and reimbursement, the Administrative Agent shall redeposit such amount into the
Credit-Linked Deposit Account (and credit each Synthetic Investor’s Sub-Account for such Synthetic Investor’s Ratable Portion of such redeposited amount). 
  
 (d) Deposits to Credit-Linked Deposit Account. The following amounts will be deposited in the Credit-Linked Deposit
Account at the following times (and each Synthetic Investor hereby authorizes and directs the Fronting Lender and the Administrative Agent to effect the same): 
  

 39 

 (i) On the Effective Date, each Synthetic Investor shall deposit in the Credit-Linked
Deposit Account an amount in Dollars equal to such Synthetic Investor’s Synthetic Deposit Amount. The obligations of the Synthetic Investors to make the deposits required by this clause (i) are several and not joint, and no
Synthetic Investor shall be responsible for any other Synthetic Investor’s failure to make its deposit as so required. 
  
 (ii) On any date prior to the Synthetic Facility Termination Date on which the Administrative Agent receives any payment from a Loan Party
in respect of Synthetic Loans with respect to which amounts were withdrawn from the Credit-Linked Deposit Account, the Administrative Agent shall deposit in the Credit-Linked Deposit Account, and credit to the Sub-Accounts of the Synthetic
Investors, the portion of such payment to be deposited therein, in accordance with clause (c)(ii) of this Section 2.1; provided that, to the extent the aggregate Credit-Linked Deposits would exceed the aggregate
Synthetic Deposit Amounts after giving effect to the redeposit of such amounts, such excess shall not be deposited in the Credit-Linked Deposit Account and the Administrative Agent shall instead pay to each Synthetic Investor its Ratable Portion of
such excess. 
  
 (iii) On any date prior to the
Synthetic Facility Termination Date on which the Fronting Lender or any Issuer receives any reimbursement payment from a Loan Party in respect of a Reimbursement Obligation with respect to which amounts were withdrawn from the Credit-Linked Deposit
Account to reimburse the Fronting Lender, the Fronting Lender or such Issuer shall forward such reimbursement payment to the Administrative Agent and the Administrative Agent shall deposit in the Credit-Linked Deposit Account, and credit to the
Sub-Accounts of the Synthetic Investors, the portion of such reimbursement payment to be deposited therein, in accordance with Section 2.4(h) (Letters of Credit); provided that, to the extent the aggregate Credit-Linked Deposits
would exceed the aggregate Synthetic Deposit Amounts after giving effect to the redeposit of such amounts, such excess shall not be deposited in the Credit-Linked Deposit Account and the Administrative Agent shall instead pay to each Synthetic
Investor its Ratable Portion of such excess. 
  
 (iv) Concurrently with the effectiveness of any assignment by any Synthetic Investor of all or any portion of its Synthetic Deposit Amount and Credit-Linked Deposit, the Administrative Agent shall transfer into the Sub-Account of the
assignee the corresponding portion of the amount on deposit in the assignor’s Sub-Account in accordance with Section 11.2 (Assignments and Participations). 
  
 (e) Withdrawals from Credit-Linked Deposit Account. Amounts on deposit in the Credit-Linked Deposit Account shall be
withdrawn and distributed as follows: 
  

 40 

 (i) On each date on which the Fronting Lender is to be reimbursed by the Synthetic
Investors pursuant to clause (c)(ii) of this Section 2.1 for any Synthetic Loan or Section 2.4(h), the Administrative Agent shall withdraw from the Credit-Linked Deposit Account the amount of such Synthetic Loan or
participation, as the case may be (and debit the Sub-Account of each Synthetic Investor in the amount of its Ratable Portion of such Synthetic Loan or participation, as the case may be), as reimbursement to the Fronting Lender for such Synthetic
Loan or participation, as the case may be. In the event that the total Syndicated Fronted Exposure exceeds the Syndicated Deposit Amount then in effect, the Borrower shall, without notice or demand, immediately terminate and return outstanding
Syndicated Letters of Credit or cash collateralize outstanding Syndicated Letters of Credit in an aggregate amount sufficient to eliminate such excess. 
  
 (ii) Promptly following each reduction of the Synthetic Deposit Amount pursuant to and in accordance with Section 2.5 (Reduction
and Termination of the Commitments), the Administrative Agent shall withdraw from the Credit-Linked Deposit Account and distribute to each Synthetic Investor its Ratable Portion of the amount by which the aggregate amount of Credit-Linked
Deposits exceeds the Synthetic Deposit Amount after giving effect to such reduction. 
  
 (iii) Promptly following any termination of the Commitments under the Synthetic Facility pursuant to and in accordance with
Section 2.5 (Reduction and Termination of the Commitments) or Article IX, the Administrative Agent shall withdraw from the Credit-Linked Deposit Account and distribute to each Synthetic Investor its Ratable Portion of the amount by which
the aggregate amount of Credit-Linked Deposits exceeds the Synthetic Fronted Exposure at such time. 
  
 (iv) Promptly following (A) the termination of the Commitments under the Synthetic Facility and (B) the reduction to zero of all
Synthetic Fronted Exposure, the Administrative Agent shall withdraw from the Credit-Linked Deposit Account and distribute to each Synthetic Investor the entire remaining amount of its Credit-Linked Deposit, and shall close the Credit-Linked Deposit
Account. 
  
 Each Synthetic Investor irrevocably and
unconditionally agrees that its Credit-Linked Deposit may be applied or withdrawn from time to time as set forth in this paragraph (e). 
  
 (f) Investment of Credit-Linked Deposits. The Credit-Linked Deposit of each Synthetic Investor will earn for the account of such Synthetic Investor
a return on the average daily amount of such Credit-Linked Deposit (the “Credit-Linked Deposit Return”) at a rate per annum equal to (i) in respect of the period commencing on the Effective Date and ending on
March 31, 2006 (the “Initial Period”), 4.47% and (ii) in respect of each successive calendar quarter, (A) the three-month Eurodollar Rate (as 

  

 41 

 
determined by the Administrative Agent at approximately 11:00 a.m. (London time) on the date that is two Business Days prior to the beginning of such
calendar quarter) minus (B) 0.10% per annum, in each case calculated on the basis of the actual number of days elapsed over a year of 360 days. The Credit-Linked Deposit Return accrued through but excluding the last day of
each period described in clause (i) or (ii) above shall, subject to Section 2.14(e), be payable by the Administrative Agent to each Synthetic Investor no later than the third Business Day following the last day of
such period, and on the Synthetic Facility Termination Date. No Loan Party shall have any obligation under or in respect of the provisions of this clause (f) except as set forth in Section 2.14(e). 
  
 (g) Sufficiency of Credit-Linked Deposits. Notwithstanding any other
provision of this Agreement, no Synthetic Loan shall be made, and no Synthetic Letter of Credit shall be Issued under the Synthetic Facility, if after giving effect thereto the aggregate amount of the Credit-Linked Deposits would be less than the
Synthetic Fronted Exposure after giving effect thereto. The Fronting Lender agrees to provide, at the request of the Borrower or any Issuer, information to the Borrower or such Issuer as to the then-outstanding Synthetic Fronted Exposure and the
aggregate amount of the Credit-Linked Deposits. 
  
 Section 2.2 Borrowing Procedures 
  
 (a) Each Borrowing shall be made on notice given by the Borrower to the Administrative Agent not later than 1:00 p.m. (New York time) (i) one Business Day, in the case of a Borrowing of Base Rate Loans and (ii) three Business
Days, in the case of a Borrowing of Eurodollar Rate Loans, prior to the date of the proposed Borrowing. Each such notice shall be in substantially the form of Exhibit C (Form of Notice of Borrowing) (a “Notice of
Borrowing”), specifying (A) the date of such proposed Borrowing, (B) the aggregate amount of such proposed Borrowing, (C) whether any portion of the proposed Borrowing will be of Base Rate Loans or Eurodollar Rate Loans,
(D) the initial Interest Period or Periods for any such Eurodollar Rate Loans, (E) the Available Credit (after giving effect to the proposed Borrowing), (F) whether such Borrowing is of a Revolving Loan or a Delayed Draw Loan and
(G) remittance instructions. The Loans shall be made as Base Rate Loans unless, subject to Section 2.14 (Special Provisions Governing Eurodollar Rate Loans), the Notice of Borrowing specifies that all or a portion thereof
shall be Eurodollar Rate Loans. Each Borrowing of Revolving Loans shall be in an aggregate amount that is an integral multiple of $1,000,000 (or $500,000 with respect to Swing Loans) and shall be allocated pro rata in accordance with each
Lender’s Revolving Commitment. The Borrower may make only one request for a Borrowing of Delayed Draw Loans in an aggregate amount of not less than the amount necessary to retire and cancel the Asbestos PI Trust Note and such amount shall be
allocated pro rata as among the Delayed Draw Lenders in accordance with each Delayed Draw Lender’s Delayed Draw Commitment. 
  
 (b) Unless the Administrative Agent shall have received notice from a Lender prior to the date of any proposed Borrowing that such Lender shall not make
available to the Administrative Agent such Lender’s Ratable Portion of such Borrowing (or any portion thereof), the Administrative Agent may assume that such Lender has 

  

 42 

 
made such Ratable Portion available to the Administrative Agent on the date of such Borrowing in accordance with this Section 2.2 and the
Administrative Agent may, in reliance upon such assumption, make available to the Borrower on such date a corresponding amount. If and to the extent that such Lender shall not have so made such Ratable Portion available to the Administrative Agent,
such Lender and the Borrower severally agree to repay to the Administrative Agent forthwith on demand such corresponding amount together with interest thereon, for each day from the date such amount is made available to the Borrower until the date
such amount is repaid to the Administrative Agent, at (i) in the case of the Borrower, the interest rate applicable at the time to the Loans comprising such Borrowing and (ii) in the case of such Lender, the Federal Funds Rate for the
first Business Day and thereafter at the interest rate applicable at the time to the Loans comprising such Borrowing. If such Lender shall repay to the Administrative Agent such corresponding amount, such corresponding amount so repaid shall
constitute such Lender’s Loan as part of such Borrowing for purposes of this Agreement. If the Borrower shall repay to the Administrative Agent such corresponding amount, such payment shall not relieve such Lender of any obligation it may have
hereunder to the Borrower. 
  
 (c) The failure of any Lender to
make the Loan or any payment required by it on the date specified (a “Non-Funding Lender”), including any payment in respect of its participation in Swing Loans and Letter of Credit Obligations, shall not relieve any other Lender of
its obligations to make such Loan or payment on such date but no such other Lender shall be responsible for the failure of any Non-Funding Lender to make a Loan or payment required under this Agreement. 
  
 Section 2.3 Swing Loans 
  
 (a) On the terms and subject to the conditions contained in this Agreement,
the Swing Loan Lender may, in its sole discretion, make loans (each a “Swing Loan”) otherwise available to the Borrower as part of the Revolving Facility from time to time on any Business Day during the period from the Effective
Date until the Revolving Facility Termination Date in an aggregate principal amount outstanding at any time not to exceed $15,000,000; provided, however, that, in no event, shall any Swing Loan be made in excess of the Available Credit
with respect to the Revolving Facility. Each Swing Loan shall be a Base Rate Loan and shall in any event mature no later than the Revolving Facility Termination Date. Within the limits set forth in the first sentence of this clause (a),
amounts of Swing Loans repaid may be reborrowed under this clause (a). 
  
 (b) In order to request a Swing Loan, the Borrower shall telecopy (or, if consented to by the Swing Loan Lender and the Administrative Agent, forward by electronic mail or similar means) to the Swing Loan Lender (with
a copy to the Administrative Agent) a duly completed request in substantially the form of Exhibit D (Form of Swing Loan Request) (or shall make such request by telephone and promptly thereafter forward a written confirmation containing
the same information), setting forth the requested amount and date of the Swing Loan (a “Swing Loan Request”), to be received by the Swing Loan Lender not later than 3:00 p.m. (New York City time) on the 

  

 43 

 
day of the proposed borrowing. Subject to the terms of this Agreement, the Swing Loan Lender shall make a Swing Loan available to the Borrower on the date of
the relevant Swing Loan Request. The Swing Loan Lender shall not make any Swing Loan in the period commencing on the first Business Day after it receives written notice from the Administrative Agent or any Lender that one or more of the conditions
precedent contained in Section 3.2 (Conditions Precedent to Each Loan and Letter of Credit) shall not on such date be satisfied, and ending when such conditions are satisfied. The Swing Loan Lender shall not otherwise be required to
determine that, or take notice whether, the conditions precedent set forth in Section 3.2 (Conditions Precedent to Each Loan and Letter of Credit) have been satisfied in connection with the making of any Swing Loan. 
  
 (c) The Swing Loan Lender shall notify the Administrative Agent in writing
(which writing may be a telecopy or, if agreed to by the Administrative Agent, electronic mail) weekly, by no later than 11:00 a.m. (New York time) on the first Business Day of each week, of the aggregate principal amount of its Swing Loans
then outstanding. 
  
 (d) The Swing Loan Lender may demand at any
time that each Revolving Lender pay to the Administrative Agent, for the account of the Swing Loan Lender, in the manner provided in clause (e) below, such Revolving Lender’s Ratable Portion of all or a portion of the outstanding
Swing Loans, which demand shall be made through the Administrative Agent, shall be in writing and shall specify the outstanding principal amount of Swing Loans demanded to be paid. 
  
 (e) The Administrative Agent shall forward each notice referred to in clause (c) above and each demand referred
to in clause (d) above to each Revolving Lender on the day such notice or such demand is received by the Administrative Agent (except that any such notice or demand received by the Administrative Agent after 4:00 p.m. (New York
time) on any Business Day or any such demand received on a day that is not a Business Day shall not be required to be forwarded to the Revolving Lenders by the Administrative Agent until the next succeeding Business Day), together with a statement
prepared by the Administrative Agent specifying the amount of each Revolving Lender’s Ratable Portion of the aggregate principal amount of the Swing Loans stated to be outstanding in such notice or demanded to be paid pursuant to such demand,
and, notwithstanding whether or not the conditions precedent set forth in Section 3.2 (Conditions Precedent to Each Loan and Letter of Credit) shall have been satisfied (which conditions precedent the Lenders hereby irrevocably waive),
each Revolving Lender shall, before 11:00 a.m. (New York time) on the Business Day next succeeding the date of such Revolving Lender’s receipt of such written statement, make available to the Administrative Agent, in immediately available
funds, for the account of the Swing Loan Lender, the amount specified in such statement. Upon such payment by a Revolving Lender, such Revolving Lender shall, except as provided in clause (f) below, be deemed to have made a Revolving
Loan to the Borrower. The Administrative Agent shall use such funds to repay the Swing Loans to the Swing Loan Lender. To the extent that any Revolving Lender fails to make all or part of such payment available to the Administrative Agent for the
account of the Swing Loan Lender, the Borrower shall repay such Swing Loan on demand. 

  

 44 

 (f) Upon the occurrence of a Default under Section 9.1(f) (Events of Default), each Revolving
Lender shall acquire, without recourse or warranty, an undivided participation in each Swing Loan otherwise required to be paid by such Revolving Lender pursuant to clause (e) above, which participation shall be in a principal amount
equal to such Revolving Lender’s Ratable Portion of such Swing Loan, by paying to the Swing Loan Lender on the date on which such Revolving Lender would otherwise have been required to make a payment in respect of such Swing Loan pursuant to
clause (e) above, in immediately available funds, an amount equal to such Revolving Lender’s Ratable Portion of such Swing Loan. If all or part of such amount is not in fact made available by such Revolving Lender to the Swing Loan
Lender on such date, the Swing Loan Lender shall be entitled to recover any such unpaid amount on demand from such Revolving Lender together with interest accrued from such date at the Federal Funds Rate for the first Business Day after such payment
was due and thereafter at the rate of interest then applicable to Base Rate Loans for Revolving Loans. 
  
 (g) From and after the date on which any Revolving Lender (i) is deemed to have made a Revolving Loan pursuant to clause (e) above with
respect to any Swing Loan or (ii) purchases an undivided participation interest in a Swing Loan pursuant to clause (f) above, the Swing Loan Lender shall promptly distribute to such Revolving Lender such Revolving Lender’s
Ratable Portion of all payments of principal of and interest received by the Swing Loan Lender on account of such Swing Loan other than those received from a Lender pursuant to clause (e) or (f) above. 
  
 Section 2.4 Letters of Credit 
  
 (a) On the terms and subject to the conditions contained in this Agreement,
each Issuer agrees to Issue one or more Letters of Credit at the request of, and for the account of, the Borrower to support obligations of the Borrower, any of its Subsidiaries or any Permitted Joint Ventures from time to time on any Business Day
during the period commencing on the Effective Date and ending on (i) in the case of a Revolving Letter of Credit, the earlier of the Revolving Facility Termination Date and January 22, 2011 and (ii) in the case of a Synthetic Letter
of Credit, the earlier of the Synthetic Facility Termination Date and January 22, 2012; provided, however, that no Issuer shall Issue any Letter of Credit upon the occurrence of any of the following: 
  
 (i) any order, judgment or decree of any Governmental
Authority or arbitrator shall purport by its terms to enjoin or restrain such Issuer from Issuing such Letter of Credit or any Requirement of Law applicable to such Issuer or any request or directive (whether or not having the force of law) from any
Governmental Authority with jurisdiction over such Issuer shall prohibit, or request that such Issuer refrain from, the Issuance of letters of credit generally or such Letter of Credit in particular or shall impose upon such Issuer with respect to
such Letter of Credit any restriction or reserve or capital requirement (for which such Issuer is not otherwise compensated) not in effect on the date of this Agreement or result in any unreimbursed loss, cost or expense that was not applicable, in
effect or known to such Issuer as of the date of this Agreement and that such Issuer in good faith deems material to it; 
  

 45 

 (ii) such Issuer shall have received written notice from the Administrative Agent, any
Lender or the Borrower, on or prior to the requested date of Issuance of such Letter of Credit, that one or more of the applicable conditions contained in Section 3.1 (Conditions Precedent to Effectiveness) (with respect to an issuance
on the Effective Date) or 3.2 (Conditions Precedent to Each Loan and Letter of Credit) is not then satisfied or duly waived in accordance with Section 11.1 (Amendments, Waivers, Etc.); 
  
 (iii) after giving effect to the Issuance of such Letter of
Credit, the aggregate Outstandings in respect of the relevant Facility would exceed the aggregate Commitments in respect of the relevant Facility in effect at such time; 
  
 (iv) any fees due in connection with a requested Issuance have not been paid; 
  
 (v) such Letter of Credit is requested to be issued in a
form that is not acceptable to such Issuer, in its sole discretion exercised in a commercially reasonable manner; or 
  
 (vi) with respect to any requested Letter of Credit denominated in an Alternative Currency, the Administrative Agent and the Issuer have
each approved such Issuance and the Issuer receives notice from the Administrative Agent at or before 11:00 a.m. (New York time) on the date of the proposed Issuance of such Letter of Credit that, immediately after giving effect to the Issuance
of such Letter of Credit, the sum of the Dollar Equivalent of the Letter of Credit Obligations at such time in respect of each Letter of Credit denominated in an Alternative Currency would exceed $75,000,000 on the date of such proposed Issuance.

  
 None of the Lenders (other than the Issuers in their capacity as such) shall
have any obligation to Issue any Letter of Credit. The Borrower and the Issuers acknowledge the issuance of the Existing Letters of Credit prior to the Effective Date in accordance with the terms of the Existing Credit Agreement and agree that such
Existing Letters of Credit are hereby deemed to be issued hereunder on the Effective Date and shall be Synthetic Letters of Credit to the extent of the Synthetic Commitment, with any remaining amount being Revolving Letters of Credit. 
  
 (b) In no event shall the expiration date of any Letter of Credit be later
than one year from the date of issuance thereof; provided, however, that any Letter of Credit with a fixed term may provide for the renewal thereof for additional periods equal to such term; provided, further,
however, that if any such renewal would result in the expiration date of a Letter of Credit to occur later than five Business Days prior to (i) in the case of a Revolving Letter of Credit, the Revolving Facility Termination Date and
(ii) in the case of a Synthetic Letter of Credit, the Synthetic Facility Termination Date, then at the time of such renewal the Borrower shall provide cash collateral to the Administrative Agent in an amount equal to 105% of the face amount of
such Letter of Credit. 
  

 46 

 (c) In connection with the Issuance of each Letter of Credit, the Borrower shall give the relevant Issuer
and the Administrative Agent at least two Business Days’ (unless the relevant Issuer otherwise agrees) prior written notice, in substantially the form of Exhibit E (Form of Letter of Credit Request) (or in such other written or
electronic form as is acceptable to the Issuer), of the requested Issuance of such Letter of Credit (a “Letter of Credit Request”). Such notice shall be irrevocable on and after the Issuance of such Letter of Credit (and, prior to
such Issuance, may be revoked only with the consent of the Issuer) and shall specify the Issuer of such Letter of Credit, the stated amount of the Letter of Credit requested, the date of Issuance of such requested Letter of Credit, the date on which
such Letter of Credit is to expire (which date shall be a Business Day), whether such Letter of Credit is a Revolving Letter of Credit or Synthetic Letter of Credit, and the Person for whose benefit the requested Letter of Credit is to be issued.
Such notice, to be effective, must be received by the relevant Issuer and the Administrative Agent not later than 1:00 p.m. (New York time) on the second Business Day prior to the requested Issuance of such Letter of Credit. Notwithstanding the
foregoing, the Borrower may deem a Revolving Letter of Credit to be a Synthetic Letter of Credit or a Synthetic Letter of Credit to be a Revolving Letter of Credit; provided, that (i) the Borrower provide the relevant Issuer and the
Administrative Agent at least one Business Day’s prior written notice of such change and (ii) there is capacity to issue such Letter of Credit under the Revolving Facility or Synthetic Facility, as applicable. 
  
 (d) Subject to the satisfaction of the conditions set forth in this
Section 2.4, the relevant Issuer shall, on the requested date, Issue a Letter of Credit on behalf of the Borrower in accordance with such Issuer’s usual and customary business practices. No Issuer shall Issue any Letter of Credit in
the period commencing on the first Business Day after it receives written notice from the Administrative Agent or any Lender that one or more of the conditions precedent contained in Section 3.2 (Conditions Precedent to Each Loan and Letter
of Credit) shall not on such date be satisfied, and ending when such conditions are satisfied. The relevant Issuer shall not otherwise be required to determine that, or take notice whether, the conditions precedent set forth in
Section 3.2 (Conditions Precedent to Each Loan and Letter of Credit) have been satisfied in connection with the Issuance of any Letter of Credit. 
  
 (e) If requested by the relevant Issuer, prior to the issuance of each Letter of Credit by such Issuer, and as a condition of such Issuance and of the
participation of each Synthetic Investor or Revolving Lender, as applicable, in the Letter of Credit Obligations arising with respect thereto, the Borrower shall have delivered to such Issuer a letter of credit reimbursement agreement, in such form
as the Issuer may employ in its ordinary course of business for its own account (a “Letter of Credit Reimbursement Agreement”), signed by the Borrower, and such other documents or items as may be required pursuant to the terms
thereof. In the event of any conflict between the terms of any Letter of Credit Reimbursement Agreement and this Agreement, the terms of this Agreement shall govern. 
  

 47 

 (f) Each Issuer shall: 
  
 (i) give the Administrative Agent written notice (or telephonic notice confirmed promptly thereafter in
writing, which writing may be a telecopy or, if consented to by the Administrative Agent, electronic mail) of the Issuance or renewal of a Letter of Credit issued by it, of all drawings under a Letter of Credit issued by it, the payment (or the
failure to pay when due) by the Borrower of any Reimbursement Obligation and the cancellation, termination or expiration of any Letter of Credit (which notice the Administrative Agent shall promptly notify each Revolving Lender and/or Synthetic
Investor of); 
  
 (ii) upon the request of any
Revolving Lender or Synthetic Investor, furnish to such Revolving Lender or Synthetic Investor copies of any Letter of Credit Reimbursement Agreement to which such Issuer is a party and such other documentation as may reasonably be requested by such
Revolving Lender or Synthetic Investor; and 
  
 (iii) no later than 5 Business Days following the last Business Day of each calendar quarter (commencing with the calendar quarter ending March 31, 2006), provide to the Administrative Agent (and the Administrative Agent shall provide
a copy to each Revolving Lender or Synthetic Investor requesting the same) and the Borrower separate schedules for Documentary and Standby Letters of Credit issued by it, in form and substance reasonably satisfactory to the Administrative Agent,
setting forth the aggregate Letter of Credit Obligations outstanding at the end of each calendar quarter and any information requested by the Borrower or the Administrative Agent relating thereto. 
  
 (g) Effective with respect to the Existing Letters of Credit upon the
occurrence of the Effective Date, and otherwise effective immediately upon the issuance by an Issuer of a Letter of Credit in accordance with the terms and conditions of this Agreement, each Issuer shall be deemed to have sold and transferred to
each Revolving Lender or Synthetic Investor, as applicable, and each Revolving Lender or Synthetic Investor, as applicable, shall be deemed irrevocably and unconditionally to have purchased and received from each Issuer, without recourse or
warranty, an undivided interest and participation, to the extent of such Revolving Lender’s or Synthetic Investor’s Ratable Portion of the Commitments in respect of the Revolving Facility or the Synthetic Facility, as applicable, in such
Letter of Credit and the obligations of the Borrower with respect thereto (including all Letter of Credit Obligations with respect thereto) and any security therefor and guaranty pertaining thereto. 
  
 (h) The Borrower agrees to pay to the Issuer of any Letter of Credit the
amount of all Reimbursement Obligations owing to such Issuer under any Letter of Credit issued for its account no later than the date (the “Reimbursement Date”) that is the next succeeding Business Day after the Borrower receives
notice from such Issuer (or, if such notice is not received prior to 11:00 A.M. (New York Time) on any Business Day, then no later than 10 A.M. (New York Time) on the next succeeding Business Day) that payment has been made under such Letter of
Credit, irrespective of any claim, set-off, defense or other right that the Borrower may have at any time against such Issuer or any 

  

 48 

 
other Person. If any Issuer makes any payment under any Letter of Credit and the Borrower shall not have repaid such amount to such Issuer pursuant to this
clause (h) or any such payment by the Borrower in respect thereof is rescinded or set aside for any reason, such Reimbursement Obligation shall be payable on demand with interest thereon computed at the rate of interest applicable during
such period to Revolving Loans that are Base Rate Loans, and such Issuer shall promptly notify the Administrative Agent, and the Administrative Agent shall promptly notify each Revolving Lender and each Synthetic Investor, as applicable, of such
failure, and (x) in the case of Revolving Letters of Credit, each Revolving Lender shall promptly and unconditionally pay to the Administrative Agent for the account of such Issuer the amount of such Lender’s Ratable Portion and
(y) in the case of a Synthetic Letter of Credit, the Fronting Lender shall withdraw from such Synthetic Investor’s Sub-Account such Synthetic Investor’s Ratable Portion and shall remit such amount to the Administrative Agent for the
account of such Issuer, in the case of each of clauses (x) and (y), of such payment in Dollars (or the Dollar Equivalent thereof if such payment was made in an Alternative Currency) and in immediately available funds. If the Administrative
Agent so notifies such Lender prior to 11:00 a.m. (New York time) on any Business Day, such Lender shall make available to the Administrative Agent for the account of such Issuer its Ratable Portion of the amount of such payment on such
Business Day in immediately available funds as set forth in the immediately preceding sentence. Upon such payment by a Lender or Fronting Lender, as applicable, such Lender or Fronting Lender, as applicable, shall, except during the continuance of a
Default or Event of Default under Section 9.1(f) (Events of Default) and notwithstanding whether or not the conditions precedent set forth in Section 3.2 (Conditions Precedent to Each Loan and Letter of Credit) shall have
been satisfied (which conditions precedent the Lenders hereby irrevocably waive), be deemed to have made a Revolving Loan or Synthetic Loan, as applicable, to the Borrower in the principal amount of such payment. Whenever any Issuer receives from
the Borrower a payment of a Reimbursement Obligation as to which the Administrative Agent has received for the account of such Issuer any payment from a Lender or Fronting Lender, as applicable, pursuant to this clause (h), such Issuer shall
pay to the Administrative Agent and the Administrative Agent shall promptly pay to such Lender or Fronting Lender, as applicable, in immediately available funds, an amount equal to such Lender’s Ratable Portion of the amount of such payment
adjusted, if necessary, to reflect the respective amounts the Lenders have paid in respect of such Reimbursement Obligation (and, if such Lender is the Fronting Lender, Fronting Lender shall apply such amount as provided in Section 2.1(d)
(Deposits to Credit-Linked Deposit Account). 
  
 (i) The
Borrower’s obligation to pay each Reimbursement Obligation and the obligations of the Revolving Lenders and Fronting Lender to make payments to the Administrative Agent for the account of the Issuers with respect to Letters of Credit shall be
absolute, unconditional and irrevocable, and shall be performed strictly in accordance with the terms of this Agreement, under any and all circumstances whatsoever, including the occurrence of any Default or Event of Default, and irrespective of any
of the following: 
  
 (i) any lack of validity or
enforceability of any Letter of Credit or any Loan Document, or any term or provision therein; 
  

 49 

 (ii) any amendment or waiver of or any consent to departure from all or any of the
provisions of any Letter of Credit or any Loan Document; 
  
 (iii) the existence of any claim, set-off, defense or other right that the Borrower, any other party guaranteeing, or otherwise obligated with, the Borrower, any Subsidiary or other Affiliate thereof or any other
Person may at any time have against the beneficiary under any Letter of Credit, any Issuer, the Administrative Agent, any Lender any Synthetic Investor or any other Person, whether in connection with this Agreement, any other Loan Document or any
other related or unrelated agreement or transaction; 
  
 (iv) any draft or other document presented under a Letter of Credit proving to be forged, fraudulent, invalid or insufficient in any respect or any statement therein being untrue or inaccurate in any respect; 
  
 (v) payment by the Issuer under a Letter of Credit against
presentation of a draft or other document that does not comply with the terms of such Letter of Credit; or 
  
 (vi) any other act or omission to act or delay of any kind of the Issuer, the Lenders, the Synthetic Investors, the Administrative Agent
or any other Person or any other event or circumstance whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions of this Section 2.4, constitute a legal or equitable discharge of the Borrower’s
obligations hereunder. 
  
 Any action taken or omitted to be taken by the relevant
Issuer under or in connection with any Letter of Credit, if taken or omitted in the absence of gross negligence or willful misconduct, shall not put such Issuer under any resulting liability to the Borrower, any Synthetic Investor or any Lender. In
determining whether drafts and other documents presented under a Letter of Credit comply with the terms thereof, the Issuer may accept documents that appear on their face to be in order, without responsibility for further investigation, regardless
of any notice or information to the contrary and, in making any payment under any Letter of Credit, the Issuer may rely exclusively on the documents presented to it under such Letter of Credit as to any and all matters set forth therein, including
reliance on the amount of any draft presented under such Letter of Credit, whether or not the amount due to the beneficiary thereunder equals the amount of such draft and whether or not any document presented pursuant to such Letter of Credit proves
to be insufficient in any respect, if such document on its face appears to be in order, and whether or not any other statement or any other document presented pursuant to such Letter of Credit proves to be forged or invalid or any statement therein
proves to be inaccurate or untrue in any respect whatsoever. Any noncompliance in any immaterial respect of the documents presented under such Letter of Credit with the terms thereof shall, in any case, be deemed not to constitute willful misconduct
or gross negligence of the Issuer. Notwithstanding the foregoing, nothing in this clause (i) shall be deemed to release any Issuer from liability with respect to its gross negligence or willful misconduct. 
  

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 (j) If and to the extent any Lender shall not have so made its Ratable Portion of the amount of the
payment required by clause (h) above available to the Administrative Agent for the account of an Issuer, such Lender agrees to pay to the Administrative Agent for the account of such Issuer forthwith on demand any amount so unpaid
together with interest thereon, for the first Business Day after payment was first due at the Federal Funds Rate, and thereafter until such amount is repaid to the Administrative Agent for the account of such Issuer, at the rate per annum
applicable to Base Rate Loans for Revolving Loans. The failure of any Lender to make available to the Administrative Agent for the account of an Issuer its Ratable Portion of any such payment shall not relieve any other Lender of its obligation
hereunder to make available to the Administrative Agent for the account of such Issuer its Ratable Portion of any payment on the date such payment is to be made, but no Lender shall be responsible for the failure of any other Lender to make
available to the Administrative Agent for the account of the Issuer such other Lender’s Ratable Portion of any such payment. 
  
 (k) The Issuer shall determine the Dollar Equivalent of the maximum stated amount of each Letter of Credit denominated in an Alternative Currency and each
obligation due with respect thereto, and a determination thereof by the Issuer shall be conclusive absent manifest error. The Dollar Equivalent of each Reimbursement Obligation with respect to a drawn Letter of Credit shall be calculated on the date
the Issuer pays the draw giving rise to such Reimbursement Obligation. The Issuer shall determine or redetermine the Dollar Equivalent of the maximum stated amount of each Letter of Credit denominated in an Alternative Currency, as applicable, on
the date of each Issuance of such Letter of Credit and on the last Business Day of each calendar month thereafter and the Issuer shall promptly notify the Administrative Agent of the determination thereof. The Issuer may determine or redetermine the
Dollar Equivalent of any Letter of Credit denominated in an Alternative Currency at any time upon request of any Lender, Synthetic Investor or the Administrative Agent. 
  
 Section 2.5 Reduction and Termination of the Commitments 
  
 (a) The Borrower may, upon at least three Business Days’ prior notice
to the Administrative Agent, terminate in whole or reduce in part the unused portions of the respective Commitments of the Lenders with respect to a particular Facility; provided, however, that (i) each partial reduction shall be
in an aggregate amount that is an integral multiple of $5,000,000 and (ii) each such reduction shall be made ratably in accordance with each Lender’s Commitment in respect of such Facility. A notice of termination of the Commitments may
state that such notice is conditioned upon the effectiveness of other credit facilities, and if any notice so states it may be revoked by the Borrower by notice to the Administrative Agent on or prior to the date specified for the termination of the
Commitments that the refinancing condition has not been met and the termination is to be revoked (it being understood that any Loans outstanding at the time of such notice or drawn thereafter will, upon such revocation, be continued as Base Rate
Loans and, thereafter, may be converted to Eurodollar Rate Loans pursuant to Section 2.11). 
  

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 (b) Subject to the proviso set forth in Section 2.9(b) (Mandatory Prepayments), the then
current Delayed Draw Commitments shall be reduced on each date on which a prepayment of Delayed Draw Loans is made pursuant to Section 2.9(a) (Mandatory Prepayments) or would be required to be made had the outstanding Delayed Draw Loans
equaled the Delayed Draw Commitments then in effect, in each case in the amount of such prepayment (or deemed prepayment) (and the Delayed Draw Commitment of each Lender shall be reduced by its Ratable Portion of such amount). 
  
 (c) Upon any reduction of the Commitments under the Synthetic Facility
pursuant to clause (a) above or otherwise, the Synthetic Deposit Amount of each Synthetic Investor shall automatically be reduced by its Ratable Portion of such reduction and, if the face amount of any outstanding Synthetic Letters of
Credit exceeds the remaining amount of the Synthetic Deposit Amount, the Borrower shall provide cash collateral for the Letters of Credit Obligations with respect to the Synthetic Facility in the manner set forth in Section 9.3 in an
amount equal to 105% of such excess. 
  
 Section 2.6
Repayment of Loans 
  
 (a) The Borrower promises to repay
(in cash, in full and in immediately available funds) the entire unpaid principal amount of the (i) Revolving Loans and the Swing Loans on the Revolving Facility Termination Date, (ii) Synthetic Loans on the Synthetic Facility Termination
Date and (iii) Delayed Draw Loans on the Delayed Draw Loan Maturity Date (it being understood that other provisions of this Agreement may require all or part of such Obligations to be repaid earlier). 
  
 (b) Delayed Draw Loans made pursuant to Section 2.1 will amortize in
equal quarterly installments in an aggregate annual amount equal to 1% per annum of the original principal amount of the Delayed Draw Facility, beginning on the last Business Day of first full Fiscal Quarter after the Delayed Draw
Facility is utilized, with the balance payable on the Delayed Draw Loan Maturity Date. 
  
 Section 2.7 Evidence of Debt 
  
 (a) Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing Indebtedness of the Borrower to such Lender resulting from each Loan of such Lender from time to time, including
the amounts of principal and interest payable and paid to such Lender from time to time under this Agreement. 
  
 (b) The Administrative Agent shall maintain accounts in accordance with its usual practice in which it shall record (i) the amount of each Loan made
and, if a Eurodollar Rate Loan, the Interest Period applicable thereto, (ii) the amount of any principal or interest due and payable by the Borrower to each Lender hereunder and (iii) the amount of any sum received by the Administrative
Agent hereunder from the Borrower, whether such sum constitutes principal or interest (and the type of Loan to which it applies), fees, expenses or other amounts due under the Loan Documents and each Lender’s share thereof, if applicable.

  

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 (c) The entries made in the accounts maintained pursuant to clauses (a) and
(b) above shall, to the extent permitted by applicable law, be prima facie evidence of the existence and amounts of the obligations recorded therein; provided, however, that the failure of any Lender or the
Administrative Agent to maintain such accounts or any error therein shall not in any manner affect the obligations of the Borrower to repay the Loans in accordance with their terms. 
  
 (d) Notwithstanding any other provision of this Agreement, if any Lender requests that the Borrower execute and deliver a
promissory note or notes payable to such Lender in order to evidence the Indebtedness owing to such Lender by the Borrower hereunder, the Borrower shall promptly execute and deliver a Note or Notes to such Lender evidencing any Loans of such Lender,
substantially in the form of Exhibit B (Form of Promissory Note). 
  
 Section 2.8 Optional Prepayments 
  
 The Borrower may, at any time, prepay the outstanding principal amount of the Loans and Swing Loans in whole or in part; provided, however, that if any prepayment of any Eurodollar Rate Loan is made by
the Borrower other than on the last day of an Interest Period for such Loan, the Borrower shall also pay any amounts owing pursuant to Section 2.14(e) (Breakage Costs); provided, further, that each partial prepayment shall
be in an aggregate principal amount that is an integral multiple of $1,000,000 and shall be applied, at the Borrower’s discretion, either (i) to reduce the outstanding principal amount under any Facility or Facilities, or (ii) pro
rata between the Revolving Facility, the Synthetic Facility and the Delayed Draw Loans, in each case in accordance with each Lender’s Commitment. Upon the giving of such notice of prepayment, the principal amount of Loans specified to be
prepaid shall become due and payable on the date specified for such prepayment. 
  
 Section 2.9 Mandatory Prepayments 
  
 (a) Upon receipt by the Borrower or any of its Domestic Subsidiaries of Net Cash Proceeds arising from an Asset Sale, Property Loss Event or issuance of Indebtedness (to the extent not otherwise permitted by
Section 8.1 (Indebtedness)), the Borrower shall (subject to the proviso in Section 2.9(b)) immediately prepay the Delayed Draw Loans in an amount equal to 100% of such Net Cash Proceeds. Any such mandatory prepayment shall be
applied in accordance with clause (b) below. 
  
 (b)
Any prepayments made by the Borrower in accordance with Section 2.9(a) shall be applied to repay the outstanding principal balance of the Delayed Draw Loans pro rata across remaining scheduled amortization amounts until such Delayed Draw
Loans shall have been paid in full; provided, however, that, if such prepayment is to be made from Net Cash Proceeds arising from a Reinvestment Event, the Delayed Draw Loans shall not be required to be repaid to the extent of the
Reinvestment Deferred Amount corresponding to such Reinvestment Event until the Reinvestment Prepayment Date corresponding thereto and, then, the Delayed Draw Loans shall be repaid only to the extent of the Reinvestment Prepayment Amount applicable
to such Reinvestment Event, if any. 
  

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 (c) If the Leverage Ratio is greater than or equal to 2.00:1.00, the Borrower shall, no later than,
subject to the following sentence, the earlier of (i) 120 days after the end of each Fiscal Year of the Borrower, commencing with the Fiscal Year ending on December 31, 2006, and (ii) the date on which the financial statements with
respect to such Fiscal Year are delivered pursuant to Section 6.1(b) (such offer date an “ECF Year End Offer Date”), offer to prepay (in accordance with Section 2.9(e)) outstanding Delayed Draw Loans in an
aggregate principal amount equal to the lesser of (x) 50% of Excess Cash Flow for the applicable ECF Period less, only in the case of an offer made with respect to payment of the Contingent MI Payment as described in the next sentence,
any amount offered pursuant to previous ECF Year End Offer Dates, and (y) $50,000,000. Notwithstanding the foregoing, if the Borrower or any of its Subsidiaries desires to use any internally generated cash flow of the Borrower or any of its
Subsidiaries to pay all or any portion of the Contingent MI Payment, then (i) the Borrower shall be required to make such offer no later than the twentieth Business Day prior to the date any portion of the Contingent MI Payment is to be made
with such funds and (ii) any amount so offered pursuant to clause (i) shall be deducted from the amount required to be offered to the Delayed Draw Lenders on the next ECF Year End Offer Date to the extent such amount is allocable to Excess
Cash Flow for the Fiscal Year applicable to such ECF Year End Offer Date. 
  
 (d) If at any time, the aggregate principal amount of Outstandings with respect to the Revolving Facility exceeds the aggregate Commitments with respect to the Revolving Facility at such time, the Borrower shall
forthwith prepay the Swing Loans first and then the Revolving Loans then outstanding in an amount equal to such excess. If any such excess remains after repayment in full of the aggregate outstanding Swing Loans and Revolving Loans, the Borrower
shall provide cash collateral for the Letter of Credit Obligations with respect to the Revolving Facility in the manner set forth in Section 9.3 (Actions in Respect of Letters of Credit) in an amount equal to 105% of such excess.

  
 (e) Notwithstanding anything in this Section 2.9
to the contrary, (i) the Administrative Agent will promptly notify each Delayed Draw Lender of the amount of such Lender’s Ratable Portion of any prepayment pursuant to Section 2.9(a) or 2.9(c) and such Lender’s
option to refuse such amount, (ii) each Delayed Draw Lender will have the right to refuse any such prepayment by giving written notice of such refusal to the Borrower within fifteen Business Days after being given notice by the Administrative
Agent pursuant to clause (i) above of such prepayment (it being understood that any Lender which does not notify the Borrower and Administrative Agent of its election to exercise such option to reject on or before such fifteenth Business Day
shall be deemed to have elected, as of such date, not to have exercised such option), (iii) the Borrower will make all such prepayments not so refused upon the earlier of (x) such fifteenth Business Day and (y) such time as the
Borrower has received notice from each applicable Lender that it consents to or refuses such prepayment and (iv) any prepayment so refused may be retained by the Borrower. 
  

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 (f) In connection with any prepayments by the Borrower of the Delayed Draw Loans pursuant to
Section 2.9(a) or 2.9(c), such prepayments shall be applied on a pro rata basis to the then outstanding Delayed Draw Loans being prepaid irrespective of whether such outstanding Delayed Draw Loans are Base Rate Loans or Eurodollar
Rate Loans; provided that if no Lenders exercise the right to reject a given mandatory prepayment of the Delayed Draw Loans pursuant to Section 2.9(e), then, with respect to such mandatory prepayment, the amount of such mandatory
prepayment shall be applied first to Delayed Draw Loans that are Base Rate Loans to the full extent thereof before application to Delayed Draw Loans that are Eurodollar Rate Loans in a manner that minimizes the amount of any payments required to be
made by the Borrower pursuant to Section 2.14. 
  
 Section 2.10 Interest 
  
 (a) Rate
of Interest. All Loans and the outstanding amount of all other Obligations shall bear interest, in the case of Loans, on the unpaid principal amount thereof from the date such Loans are made and, in the case of such other Obligations, from the
date such other Obligations are due and payable until, in all cases, paid in full, except as otherwise provided in clause (c) below, as follows: 
  
 (i) if a Base Rate Loan or such other Obligation, at a rate per annum equal to the sum of (A) the Base Rate as in effect from
time to time plus (B) the Applicable Margin for Base Rate Loans; and 
  
 (ii) if a Eurodollar Rate Loan, at a rate per annum equal to the sum of (A) the Eurodollar Rate for such Eurodollar Rate Loan
determined for the applicable Interest Period plus (B) the Applicable Margin for Eurodollar Rate Loans in effect from time to time during such Interest Period. 
  
 (b) Interest Payments. (i) Interest accrued on each Base Rate Loan shall be payable in arrears (A) in
respect of interest that has accrued during the Initial Period, on the last Business Day of the Initial Period, (B) thereafter, on the last Business Day of each calendar quarter and (C) if not previously paid in full, at maturity (whether
by acceleration or otherwise) of such Base Rate Loan, (ii) interest accrued on each Eurodollar Rate Loan shall be payable in arrears (A) on the last day of each Interest Period applicable to such Loan and, if such Interest Period has a
duration of more than three months, on each day during such Interest Period occurring every three months from the first day of such Interest Period, (B) upon the payment or prepayment thereof in full or in part and (C) if not previously
paid in full, at maturity (whether by acceleration or otherwise) of such Eurodollar Rate Loan and (iii) interest accrued on the amount of all other Obligations shall be payable on demand from and after the time such Obligation becomes due and
payable (whether by acceleration or otherwise). 
  
 (c) Default
Interest. Notwithstanding the rates of interest specified in clause (a) above or elsewhere herein, effective immediately upon the occurrence of an Event of Default of the type described in Section 9.1(a) or
(b) and for as long thereafter as such Event of Default shall be continuing, the principal balance of all Loans and the 

  

 55 

 
amount of all other Obligations then due and payable shall, upon the election of the Requisite Lenders (except if an Event of Default has occurred under
Section 9.1(f) (Events of Default) that results in the automatic acceleration of the Obligations, in which case such interest rate increase shall be immediate), bear interest at a rate that is two percent per annum in excess of
the rate of interest applicable to such Loans or other Obligations from time to time. 
  
 Section 2.11 Conversion/Continuation Option 
  
 (a) The Borrower may elect (i) at any time on any Business Day to convert Base Rate Loans (other than Swing Loans) or any portion thereof to
Eurodollar Rate Loans and (ii) at the end of any applicable Interest Period, to convert Eurodollar Rate Loans or any portion thereof into Base Rate Loans or to continue such Eurodollar Rate Loans or any portion thereof for an additional
Interest Period; provided, however, that the aggregate amount of the Eurodollar Rate Loans for each Interest Period must be in an amount that is an integral multiple of $1,000,000. Each conversion or continuation shall be allocated
among the Loans of each Lender in accordance with such Lender’s Ratable Portion. Each such election shall be in substantially the form of Exhibit F (Form of Notice of Conversion or Continuation) (a “Notice of Conversion or
Continuation”) and shall be made by giving the Administrative Agent at least three Business Days’ prior written notice (or telephonic notice promptly confirmed in writing) specifying, in each case, (A) the amount and type of Loan
being converted or continued, (B) in the case of a conversion to or a continuation of Eurodollar Rate Loans, the applicable Interest Period and (C) in the case of a conversion, the date of conversion. 
  
 (b) The Administrative Agent shall promptly notify each applicable Lender of
its receipt of a Notice of Conversion or Continuation and of the options selected therein. Notwithstanding the foregoing, no conversion in whole or in part of Base Rate Loans to Eurodollar Rate Loans, and no continuation in whole or in part of
Eurodollar Rate Loans upon the expiration of any applicable Interest Period, shall be permitted at any time during which (i) a Default or an Event of Default shall have occurred and be continuing or (ii) the continuation of, or conversion
into, a Eurodollar Rate Loan would violate any provision of Section 2.14 (Special Provisions Governing Eurodollar Rate Loans). If, within the time period required under the terms of this Section 2.11, the Administrative Agent
does not receive a Notice of Conversion or Continuation from the Borrower containing a permitted election to continue any Eurodollar Rate Loans for an additional Interest Period or to convert any such Loans, then, upon the expiration of the
applicable Interest Period, such Loans shall be automatically converted to Base Rate Loans. Each Notice of Conversion or Continuation shall be irrevocable. 
  
 Section 2.12 Fees 
  
 (a) Commitment Fees. (i) With respect to the Revolving Facility, the Borrower agrees to pay to the Administrative Agent for the account of each
Revolving Lender a commitment fee (the “Revolving Commitment Fee”), accruing at a rate per annum equal to the Applicable Commitment Fee Rate applicable to the Revolving 
  

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Facility on the actual daily amount by which the Revolving Commitment of such Lender exceeds such Lender’s Ratable Portion of the sum of (x) the
outstanding principal amount of Revolving Loans plus (y) the outstanding amount of the Letter of Credit Obligations (excluding obligations with respect to Synthetic Letters of Credit) during the period from the Effective Date until the
Revolving Facility Termination Date, payable in arrears (A) on the last Business Day of each calendar quarter (commencing with the calendar quarter ending March 31, 2006) and (B) on the Revolving Facility Termination Date. 

 
 (ii) With respect to the Delayed Draw Facility, the
Borrower agrees to pay to the Administrative Agent for the account of each Delayed Draw Lender a commitment fee (the “Delayed Draw Commitment Fee”), accruing at a rate per annum equal to the Applicable Commitment Fee Rate
applicable to the Delayed Draw Facility on the actual daily amount by which the Delayed Draw Commitment of such Lender exceeds such Lender’s Ratable Portion of the outstanding principal amount of Delayed Draw Loans during the period from the
Effective Date until the Delayed Draw Commitment Termination Date, payable in arrears (A) on the last Business Day of each calendar quarter (commencing with the calendar quarter ending March 31, 2006) and (B) on the Delayed Draw
Commitment Termination Date. 
  
 (b) Letter of Credit Fees.
The Borrower agrees to pay the following amounts with respect to Letters of Credit issued by any Issuer: 
  
 (i) to the Administrative Agent for the account of each Issuer of a Letter of Credit, with respect to each Letter of Credit issued by such
Issuer, an issuance fee of 0.125% per annum (“Fronting Fees”), payable in arrears (x) with respect to Revolving Letters of Credit (A) on the last Business Day of each calendar quarter (commencing with the
calendar quarter ending March 31, 2006) and (B) on the Revolving Facility Termination Date, and (y) with respect to Synthetic Letters of Credit (A) on the last Business Day of each calendar quarter (commencing with the calendar
quarter ending March 31, 2006) and (B) on the Synthetic Facility Termination Date; 
  
 (ii) to the Administrative Agent for the account and ratable benefit of the applicable Lenders, with respect to each Revolving Letter of
Credit, a fee (the “Revolving Letter of Credit Participation Fee”) accruing at a rate per annum equal to the Applicable Margin for Revolving Loans that are Eurodollar Rate Loans on the maximum amount available from time to
time to be drawn under such Revolving Letter of Credit (in the case of any Revolving Letter of Credit denominated in a currency other than Dollars, based on the Dollar Equivalent of the average undrawn amount thereof on the payment date for such
fee), payable in arrears (A) on the last Business Day of each calendar quarter (commencing with the calendar quarter ending March 31, 2006) and (B) on the Revolving Facility Termination Date; provided, however, that
during the continuance of an Event of Default under Section 9.1(a) or (b), such fee shall be increased, upon the election of the Requisite Lenders (except if an Event of Default has occurred under Section 9.1(f) (Events of
Default) that results in the automatic acceleration of the Obligations, in which case such increase shall be immediate), by two percent per annum and shall be payable on demand; and 
  

 57 

 (iii) to the Issuer of any Letter of Credit, with respect to the issuance, amendment or
transfer of each Letter of Credit and each drawing made thereunder, documentary and processing charges in accordance with such Issuer’s standard schedule for such charges in effect at the time of issuance, amendment, transfer or drawing, as the
case may be. 
  
 (c) Synthetic Fees. (i) The Borrower
agrees to pay to the Fronting Lender, on behalf of each Synthetic Investor, a fee on the aggregate amount of the Credit-Linked Deposit of all Synthetic Investors (the “Synthetic Fee”) from the Effective Date until the Synthetic
Facility Termination Date at an annual rate of one-tenth of one percent (0.10%), payable in arrears on (a) the last Business Day of each calendar quarter (commencing with the calendar quarter ending March 31, 2006) and (b) the
Synthetic Facility Termination Date. Such Synthetic Fee shall be payable to the Fronting Lender who will distribute such fee to each Synthetic Investor, in accordance with its Ratable Portion, pursuant to Section 2.12(e). 
  
 (ii) The Borrower agrees to pay to the Administrative Agent
for payment to the Fronting Lender for the account and ratable benefit of the Synthetic Investors, a fee (the “Synthetic Letter of Credit Participation Fee”) accruing at a rate per annum equal to 2.75%, on the aggregate
amount of the Credit-Linked Deposit of all Synthetic Investors, payable in arrears (A) on the last Business Day of each calendar quarter (commencing with the calendar quarter ending March 31, 2006) and (B) on the Synthetic Facility
Termination Date; provided, however, that during the continuance of an Event of Default under Section 9.1(a) or (b), such fee shall be increased, upon the election of the Requisite Lenders (except if an Event of
Default has occurred under Section 9.1(f) (Events of Default) that results in the automatic acceleration of the Obligations, in which case such increase shall be immediate), by two percent per annum and shall be payable on demand.

  
 (d) Additional Fees. The Borrower has agreed to pay to
the Administrative Agent and the Lenders additional fees, the amount and dates of payment of which are embodied in the Fee Letter. 
  
 (e) Payment of Fees to Synthetic Investors. The Fronting Lender hereby agrees to pay to each Synthetic Investor such Synthetic Investor’s
Ratable Portion of the Synthetic Fee and the Synthetic Letter of Credit Participation Fee received by the Fronting Lender in its capacity as such, promptly following receipt of each of the same from (and only to the extent each such fee is received
from) the Borrower or any other Loan Party. 
  

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 Section 2.13 Payments and Computations 
  
 (a) The Borrower shall make each payment hereunder (including fees and
expenses) not later than 3:00 p.m. (New York time) on the day when due, in Dollars, to the Administrative Agent at its address referred to in Section 11.8 (Notices, Etc.) in immediately available funds without set-off or
counterclaim. The Administrative Agent shall promptly thereafter cause to be distributed immediately available funds relating to the payment of principal, interest or fees to the applicable Lenders, in accordance with the application of payments set
forth in clauses (e) or (f) below, as applicable, for the account of their respective Applicable Lending Offices; provided, however, that amounts payable pursuant to Section 2.15 (Capital Adequacy),
Section 2.16 (Taxes) or Section 2.14(c) (Increased Costs) or (d) (Illegality) shall be paid only to any affected Lender (or, if to the Fronting Lender, only to the extent of the interest of the affected Synthetic
Investor) and amounts payable with respect to Swing Loans shall be paid only to the Swing Loan Lender. Payments received by the Administrative Agent after 3:00 p.m. (New York time) shall be deemed (in the Administrative Agent’s sole
discretion) to be received on the next Business Day. 
  
 (b) All
computations of interest and of fees shall be made by the Administrative Agent on the basis of the actual number of days elapsed (in each case calculated to include the first day but exclude the last day) (i) over a year of 365 or 366 days, as
the case may be, in the case of interest accruing at the Base Rate when the Base Rate is determined by reference to the Prime Rate, and (ii) over a year of 360 days at all other times). Each determination by the Administrative Agent of an
interest rate hereunder shall be conclusive and binding for all purposes, absent manifest error. 
  
 (c) Whenever any payment hereunder shall be stated to be due on a day other than a Business Day, the due date for such payment shall be extended to the
next succeeding Business Day, and such extension of time shall in such case be included in the computation of payment of interest or fees, as the case may be; provided, however, that if such extension would cause payment to be made in
the next calendar month, such payment shall be made on the immediately preceding Business Day. Except as otherwise provided for in Section 2.9, all repayments of any Loans shall be applied as follows: first, to repay such Loans
outstanding as Base Rate Loans and then, to repay such Loans outstanding as Eurodollar Rate Loans, with those Eurodollar Rate Loans having earlier expiring Interest Periods being repaid prior to those having later expiring Interest Periods.

  
 (d) Unless the Administrative Agent shall have received notice
from the Borrower prior to the date on which any payment is due hereunder that the Borrower will not make such payment in full, the Administrative Agent may assume that the Borrower has made such payment in full to the Administrative Agent on such
date and the Administrative Agent may, in reliance upon such assumption, cause to be distributed to each Lender on such due date an amount equal to the amount then due such Lender. If and to the extent that the Borrower shall not have made such
payment in full to the Administrative Agent, each Lender shall repay to the Administrative Agent forthwith on demand such amount distributed to such Lender together with interest thereon at the Federal Funds Rate, for the first Business Day, and,
thereafter, at the rate applicable to 

  

 59 

 
Base Rate Loans under the applicable Facility, for each day from the date such amount is distributed to such Lender until the date such Lender repays such
amount to the Administrative Agent. 
  
 (e) Subject to the
provisions of clause (f) below (and except as otherwise provided in Section 2.9 (Mandatory Prepayments)), all payments and any other amounts received by the Administrative Agent from or for the benefit of the Borrower shall
be applied as follows: first, to pay principal of, and interest on, any portion of the Loans the Administrative Agent may have advanced pursuant to the express provisions of this Agreement on behalf of any Lender, for which the Administrative
Agent has not then been reimbursed by such Lender or the Borrower, second, to pay all other Obligations then due and payable, and third, as the Borrower so designates. Payments in respect of Swing Loans received by the Administrative
Agent shall be distributed to the Swing Loan Lender; payments in respect of other Loans received by the Administrative Agent shall be distributed to each applicable Lender in accordance with such Lender’s Ratable Portion of the Commitments with
respect to the applicable Facility; and all payments of fees and all other payments in respect of any other Obligation shall be allocated among such of the Lenders and Issuers as are entitled thereto and, for such payments allocated to the Lenders,
in proportion to their respective Ratable Portions. 
  
 (f) The
Borrower hereby irrevocably waives the right to direct the application of any and all payments in respect of the Obligations and any proceeds of Collateral after the occurrence and during the continuance of an Event of Default and agrees that,
during such time, the Administrative Agent may, and, upon either (A) the written direction of the Requisite Lenders or (B) the acceleration of the Obligations pursuant to Section 9.2 (Remedies), shall apply all payments in
respect of any Obligations and all funds on deposit in any Cash Collateral Account and all other proceeds of Collateral in the following order: 
  
 First, to pay interest on and then principal of any portion of (i) the Loans that the Administrative Agent may have advanced
on behalf of any Lender for which the Administrative Agent has not then been reimbursed by such Lender or the Borrower and (ii) the Reimbursement Obligations owed to any Issuer for which such Issuer has not then been reimbursed by any Lender or
the Borrower; 
  
 Second, to pay interest
on and then principal of any Swing Loan; 
  
 Third, to pay Obligations in respect of any expense reimbursements or indemnities (including fees and expenses in respect of cash management services) then due to the Administrative Agent; 
  
 Fourth, to pay Obligations in respect of any expense
reimbursements or indemnities (including fees and expenses in respect of cash management services) then due to the Lenders, the Synthetic Investors and the Issuers; 
  

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 Fifth, to pay Obligations in respect of any fees then due to the Administrative
Agent, the Lenders, the Synthetic Investors and the Issuers; 
  
 Sixth, to pay interest then due and payable in respect of the Loans (ratably to the aggregate principal amount of such Loans) and Reimbursement Obligations; 
  
 Seventh, to pay or prepay principal amounts on the
Loans and Reimbursement Obligations and to provide cash collateral for outstanding Letter of Credit Undrawn Amounts in the manner described in Section 9.3 (Actions in Respect of Letters of Credit), ratably to the aggregate principal
amount of such Loans, Reimbursement Obligations and Letter of Credit Undrawn Amounts; and 
  
 Eighth, to the ratable payment of all other Obligations; 
  
 provided, however, that if sufficient funds are not available to fund all payments to be made in respect of any Obligation
described in any of clauses first through eighth above, the available funds being applied with respect to any such Obligation (unless otherwise specified in such clause) shall be allocated to the payment of such Obligations
ratably, based on the proportion of the Administrative Agent’s and each Lender’s, Synthetic Investor’s or Issuer’s interest in the aggregate outstanding Obligations described in such clauses. The order of priority set forth in
clauses first through eighth above may at any time and from time to time be changed by the agreement of the Requisite Lenders without necessity of prior notice to or consent of or approval by the Borrower, any Secured Party that
is not a Lender, Synthetic Investor or Issuer or by any other Person that is not a Lender, Synthetic Investor or Issuer. The order of priority set forth in clauses first through fifth above may be changed only with the prior
written consent of the Administrative Agent in addition to the Requisite Lenders. 
  
 (g) At the option of the Administrative Agent during the continuance of an Event of Default, principal, interest, fees, expenses and other sums due and payable in respect of the Swing Loans, Reimbursement Obligations,
Loans and Protective Advances may be paid from the proceeds of Swing Loans or Revolving Loans. The Borrower hereby authorizes the Swing Loan Lender to make such Swing Loans pursuant to Section 2.3(a) (Swing Loans) and the Revolving
Lenders to make such Revolving Loans pursuant to Section 2.2(a) (Borrowing Procedures) from time to time in the Swing Loan Lender’s or such Revolving Lender’s discretion, that are in the amounts of any and all principal,
interest, fees, expenses and other sums payable with respect to the Swing Loans, the Loans, Reimbursement Obligations and Protective Advances, and further authorizes the Administrative Agent to give the Lenders notice of any Borrowing with respect
to such Swing Loans and Revolving Loans and to distribute the proceeds of such 

  

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Swing Loans and Revolving Loans to pay such amounts. The Borrower agrees that all such Swing Loans and Revolving Loans so made shall be deemed to have been
requested by it (irrespective of the satisfaction of the conditions in Section 3.2 (Conditions Precedent to Each Loan and Letter of Credit), which conditions the Lenders irrevocably waive) and directs that all proceeds thereof shall be
used to pay such amounts. 
  
 Section 2.14 Special
Provisions Governing Eurodollar Rate Loans 
  
 (a)
Determination of Interest Rate 
  
 The Eurodollar Rate for each
Interest Period for Eurodollar Rate Loans shall be determined by the Administrative Agent pursuant to the procedures set forth in the definition of “Eurodollar Rate.” The Administrative Agent’s determination shall be presumed
to be correct absent manifest error and shall be binding on the Borrower. 
  
 (b) Interest Rate Unascertainable, Inadequate or Unfair 
  
 If (i) the Administrative Agent determines that adequate and fair means do not exist for ascertaining the applicable interest rates by reference to which the Eurodollar Rate then being determined is to be fixed
or (ii) the Requisite Lenders notify the Administrative Agent that the Eurodollar Rate for any Interest Period (or, in respect of the Credit-Linked Deposit Return, the Initial Period or any calendar quarter) will not adequately reflect the cost
to the Lenders and the Synthetic Investors of making or maintaining such Loans (or of making, maintaining or receiving the corresponding Credit-Linked Deposits) for such Interest Period, Initial Period or calendar quarter, the Administrative Agent
shall forthwith so notify the Borrower, the Synthetic Investors and the Lenders, whereupon each Eurodollar Rate Loan shall automatically, on the last day of the current Interest Period for such Loan, convert into a Base Rate Loan and the obligations
of the Lenders to make Eurodollar Rate Loans or to convert Base Rate Loans into Eurodollar Rate Loans shall be suspended until the Administrative Agent shall notify the Borrower that the Requisite Lenders have determined that the circumstances
causing such suspension no longer exist, which notice shall be given promptly following such determination. Thereafter, the Borrower’s right to request, and the Lenders’ obligations, if any, to make Eurodollar Rate Loans shall be restored.

  
 (c) Increased Costs 
  
 If at any time any Lender or Synthetic Investor determines that the
introduction of, or any change in or in the interpretation of, any law, treaty or governmental rule, regulation or order (including any change by way of imposition or increase of reserve requirements included in determining the Eurodollar Rate) or
the compliance by such Lender or Synthetic Investor with any guideline, request or directive from any central bank or other Governmental Authority (whether or not having the force of law), shall (i) have the effect of increasing the cost to
such Lender or Synthetic Investor of agreeing to make or making, funding or maintaining any Eurodollar Rate Loan or agreeing to make or making, funding, maintaining or receiving any Credit- 

  

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Linked Deposit, or (ii) subject any Lender or Synthetic Investor to any Tax of any kind whatsoever with respect to any Eurodollar Rate Loan or
Credit-Linked Deposit, or change the basis of taxation of payments to such Lender or Synthetic Investor in respect thereof (except for Taxes or Other Taxes indemnifiable pursuant to Section 2.16 (Taxes) or the imposition of, or any
change in the rate of, any Excluded Taxes), then the Borrower shall from time to time, upon demand by such Lender or Synthetic Investor (with a copy of such demand to the Administrative Agent and the Fronting Lender), pay to the Administrative Agent
for the account of such Lender or, in the case of a Synthetic Investor, to the Administrative Agent for the account of the Fronting Lender (for the account of the Synthetic Investor), additional amounts sufficient to compensate such Lender or
Synthetic Investor for such increased cost. A certificate as to the amount of such increased cost shall be, together with supporting documents, submitted to the Borrower and the Administrative Agent (and, in the case of a Synthetic Investor, to the
Fronting Lender) by such Lender or Synthetic Investor and shall be conclusive and binding for all purposes, absent manifest error. Notwithstanding the foregoing, except to the extent, if any, the change (or compliance) referred to in such
certificate shall be retroactive, the Borrower shall not be required to compensate a Lender or Synthetic Investor pursuant to this clause (c) for any increased costs or reduction incurred more than 180 days prior to the date of such
certificate. The Borrower shall pay such Lender or Synthetic Investor the amount shown as due on any such certificate within 30 days after its receipt of the same. 
  
 (d) Illegality 
  
 Notwithstanding any other provision of this Agreement, if any Lender determines that the introduction of, or any change in or in the interpretation of,
any law, treaty or governmental rule, regulation or order after the date of this Agreement shall make it unlawful, or any central bank or other Governmental Authority shall assert that it is unlawful, for any Lender or its Eurodollar Lending Office
to make Eurodollar Rate Loans or to continue to fund or maintain Eurodollar Rate Loans, then, on notice thereof and demand therefor by such Lender to the Borrower through the Administrative Agent, (i) the obligation of such Lender to make or to
continue Eurodollar Rate Loans and to convert Base Rate Loans into Eurodollar Rate Loans shall be suspended, and each such Lender shall make a Base Rate Loan as part of any requested Borrowing of Eurodollar Rate Loans and (ii) if the affected
Eurodollar Rate Loans are then outstanding, the Borrower shall immediately convert each such Loan into a Base Rate Loan. If, at any time after a Lender gives notice under this Section 2.14(d), such Lender determines that it may lawfully
make Eurodollar Rate Loans, such Lender shall promptly give notice of that determination to the Borrower and the Administrative Agent, and the Administrative Agent shall promptly transmit the notice to each other Lender. The Borrower’s right to
request, and such Lender’s obligation, if any, to make Eurodollar Rate Loans shall thereupon be restored. 
  
 (e) Breakage Costs 
  
 In addition to all amounts required to be paid by the Borrower pursuant to Section 2.10 (Interest), the Borrower shall compensate each Lender
and Synthetic 

  

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Investor, upon demand, for all losses, expenses and liabilities (including any loss or expense incurred by reason of the liquidation or reemployment of
deposits or other funds acquired by such Lender or Synthetic Investor to fund or maintain such Lender’s Eurodollar Rate Loan to the Borrower or such Synthetic Investor’s Credit-Linked Deposit, but excluding any loss of the Applicable
Margin or other profit on the relevant Loans) that such Lender or Synthetic Investor may sustain (i) if for any reason a proposed Borrowing or continuation of, or conversion into, Eurodollar Rate Loans does not occur on a date specified
therefor in a Notice of Borrowing or a Notice of Conversion or Continuation given by the Borrower or in a telephonic request by it for borrowing or conversion or continuation or a successive Interest Period does not commence after notice therefor is
given pursuant to Section 2.11 (Conversion/Continuation Option), (ii) if for any reason any Eurodollar Rate Loan is prepaid (including mandatorily pursuant to Section 2.9 (Mandatory Prepayments), by reason of an increase
or reduction in Commitments on a date that is not the last day of the applicable Interest Period, (iii) as a consequence of a required conversion of a Eurodollar Rate Loan to a Base Rate Loan as a result of any of the events indicated in
Section 2.14(d), (iv) as a consequence of any failure by the Borrower to repay Eurodollar Rate Loans when required by the terms hereof or (v) if, for any reason, the Fronting Lender is required to make any payment in respect of
any Credit-Linked Deposit or to reimburse any Synthetic Investor for any similar loss, expense or liability in respect of any Credit-Linked Deposit. Without limiting the foregoing, if any amount withdrawn from the Credit-Linked Deposit Account to
reimburse the Fronting Lender as provided herein shall be subsequently reimbursed to the Fronting Lender by the Borrower or any other Loan Party other than on the last day of a calendar quarter, the Fronting Lender shall invest the amount so
reimbursed in overnight or short-term cash equivalent investments until the end of such calendar quarter and the Borrower shall pay to the Fronting Lender, upon the Fronting Lender’s request therefor, the amount, if any, by which the interest
accrued on a like amount of the Credit-Linked Deposits at the Eurodollar Rate for such calendar quarter shall exceed the interest earned through the investment of the amount so reimbursed for the period from the date of such reimbursement through
the end of such calendar quarter, as determined by the Fronting Lender (such determination to be conclusive absent manifest error) and set forth in the request for payment delivered to the Borrower. If the Borrower shall fail to pay an amount due
under the preceding sentence, the amount payable by the Fronting Lender to the Synthetic Investors on their Credit-Linked Deposits under Section 2.1(f) (The Commitments; Credit-Linked Deposit Amount) shall be correspondingly reduced and
each Synthetic Investor shall without further act succeed, ratably in accordance with its Ratable Portion, to the rights of the Fronting Lender with respect to such amount. The Lender or Synthetic Investor making demand for such compensation shall
deliver to the Borrower concurrently with such demand a written statement as to such losses, expenses and liabilities, and this statement shall be conclusive as to the amount of compensation due to such Lender, absent manifest error. 
  
 Section 2.15 Capital Adequacy 
  
 If at any time any Lender or Synthetic Investor determines that (a) the
introduction of, or any change in or in the interpretation of, any law, treaty or governmental rule, regulation or order after the date of this Agreement regarding capital 

  

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adequacy, (b) compliance with any such law, treaty, rule, regulation or order or (c) compliance with any guideline or request or directive from any
central bank or other Governmental Authority (whether or not having the force of law) shall have the effect of reducing the rate of return on such Lender’s or Synthetic Investor’s (or any Person controlling such Lender’s or Synthetic
Investor’s) capital as a consequence of its obligations hereunder, in respect of the Credit-Linked Deposits or under or in respect of any Letter of Credit to a level below that which such Lender, Synthetic Investor or Person could have achieved
but for such adoption, change, compliance or interpretation, then, upon demand from time to time by such Lender or, through the Fronting Lender, such Synthetic Investor (with a copy of such demand to the Administrative Agent and, in the case of a
Synthetic Investor, the Fronting Lender), the Borrower shall pay to the Administrative Agent for the account of such Lender or, in the case of a Synthetic Investor, to the Administrative Agent for the account of the Fronting Lender (for the account
of such Synthetic Investor), from time to time as specified by such Lender or Synthetic Investor, additional amounts sufficient to compensate such Lender or Synthetic Investor for such reduction. A certificate as to such amounts setting forth in
reasonable detail the basis for such demand and a calculation for such amount shall be submitted to the Borrower and the Administrative Agent by such Lender or Synthetic Investor and shall be conclusive and binding for all purposes absent manifest
error. Notwithstanding the foregoing, except to the extent, if any, the change (or compliance) referred to in any such certificate shall be retroactive, the Borrower shall not be required to compensate a Lender or Synthetic Investor pursuant to this
Section 2.15 (Capital Adequacy) for any reduction in rates of return with respect to any period prior to the date that is 180 days prior to the date of each such certificate. 
  
 Section 2.16 Taxes 
  
 (a) Except as otherwise expressly provided in this Section 2.16 (Taxes), any and all payments by the Borrower
under each Loan Document shall be made free and clear of and without deduction for any and all taxes, levies, imposts, deductions, charges or withholdings, and all liabilities with respect thereto and with respect to any corresponding payment that
may be made by the Fronting Lender to the Synthetic Investors in respect of the Credit-Linked Deposits, excluding (i) in the case of each Lender and Synthetic Investor and the Administrative Agent (A) taxes measured by its net income, and
franchise taxes imposed on it, by the jurisdiction (or any political subdivision thereof) under the laws of which such Lender, Synthetic Investor or the Administrative Agent (as the case may be) is organized and (B) any United States
withholding taxes payable with respect to payments under the Loan Documents under laws (including any statute, treaty or regulation) in effect on the Effective Date (or, in the case of any Lender or Synthetic Investor that became a Lender or
Synthetic Investor by assignment or transfer after the Effective Date, the effective date of such assignment or transfer, except to the extent that such Lender’s or Synthetic Investor’s assignor (if any) was entitled, at the time of
assignment, to receive additional amounts from the Borrower pursuant to this Section 2.16) applicable to such Lender, Synthetic Investor or the Administrative Agent (as the case may be), but not excluding any United States withholding
taxes payable as a result of any change in such laws occurring after the Effective Date (or the date of such assignment or transfer, except to the extent that such 

  

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Lender’s or Synthetic Investor’s assignor (if any) was entitled, at the time of assignment, to receive additional amounts from the Borrower
pursuant to this Section 2.16) and (ii) in the case of each Lender and Synthetic Investor, taxes measured by its net income, and franchise taxes imposed on it as a result of a present or former connection between such Lender or
Synthetic Investor and the jurisdiction of the Governmental Authority imposing such tax or any taxing authority thereof or therein (all such non-excluded taxes, levies, imposts, deductions, charges, withholdings and liabilities being hereinafter
referred to as “Taxes”). If any Taxes shall be required by law to be deducted from or in respect of any sum payable under any Loan Document to any Lender, the Administrative Agent or any Synthetic Investor, (w) the sum payable
by the Borrower shall be increased as may be necessary so that after making all required deductions (including deductions applicable to additional sums payable under this Section 2.16) such Lender, Synthetic Investor or the
Administrative Agent (as the case may be) receives an amount equal to the sum it would have received had no such deductions been made, (x) the Borrower (or, in the case of any sum payable by the Fronting Lender to the Synthetic Investors
hereunder, the Fronting Lender) shall make such deductions, (y) the Borrower (or, in the case of any sum payable by the Fronting Lender to the Synthetic Investors hereunder, the Fronting Lender) shall pay the full amount deducted to the
relevant taxing authority or other authority in accordance with applicable law and (z) the Borrower (or, in the case of any sum payable by the Fronting Lender to the Synthetic Investors hereunder, the Fronting Lender) shall deliver to the
Administrative Agent evidence of such payment; provided, however, that failure of the Fronting Lender to provide such evidence shall not relieve the Borrower of any of its obligations hereunder. 
  
 (b) In addition, the Borrower shall pay any stamp or documentary taxes or any
other excise or property taxes, charges or similar levies of the United States or any political subdivision thereof or any applicable foreign jurisdiction, and all liabilities with respect thereto, in each case arising from any payment made under
any Loan Document or from the execution, delivery or registration of, or otherwise with respect to, any Loan Document (collectively, “Other Taxes”). 
  
 (c) Except as otherwise expressly provided in this Section 2.16 (Taxes), the Borrower shall indemnify each
Lender, Synthetic Investor and the Administrative Agent for the full amount of Taxes and Other Taxes (including any Taxes and Other Taxes imposed by any jurisdiction on amounts payable under this Section 2.16) paid by such Lender,
Synthetic Investor or the Administrative Agent (as the case may be) and any liability (including for penalties, interest and expenses) arising therefrom or with respect thereto, whether or not such Taxes or Other Taxes were correctly or legally
asserted. This indemnification shall be made within 30 days from the date such Lender, the Administrative Agent or such Synthetic Investor (as the case may be) makes written demand therefor (which shall, in case of such Synthetic Investor, be made
through the Fronting Lender). Such written demand shall include a certificate setting forth in reasonable detail the type and amount of the indemnification payment to be made; provided, however, that the Borrower shall not be required
to compensate a Lender or Synthetic Investor pursuant to this clause (c) for (i) any Taxes or Other Taxes incurred more than 180 days (or, if such Taxes or Other Taxes are measured based on a longer fiscal period, 180 days after the
end of the most recent fiscal period therefor) prior to the receipt of such written demand, or (ii) any penalties, interest or other liabilities arising from the willful misconduct or gross negligence of a Lender or Synthetic Investor.

  

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 (d) The Borrower shall use commercially reasonable efforts to furnish, within 60 days after the date of
any payment of Taxes or Other Taxes pursuant to this Section 2.16, to the Administrative Agent, at its address referred to in Section 11.8 (Notices, Etc.), the original or a certified copy of a receipt evidencing payment
thereof or such other evidence of payment reasonably satisfactory to the Administrative Agent. 
  
 (e) Without prejudice to the survival of any other agreement of the Borrower hereunder, the agreements and obligations of the Borrower contained in this Section 2.16 shall survive the payment in full of
the Obligations, until 30 days after the expiration of the statute of limitations applicable to the collection from the relevant Lender, the relevant Synthetic Investor or the Administrative Agent of the Taxes and Other Taxes to which the
obligations under this Section 2.16 relate. 
  
 (f)
Prior to the Effective Date in the case of each Non-U.S. Financial Institution that is a signatory hereto and, otherwise, on the date such Non-U.S. Financial Institution becomes a Non-U.S. Financial Institution and from time to time thereafter if
requested by the Borrower or the Administrative Agent, each Non-U.S. Financial Institution shall provide the Administrative Agent and the Borrower (and, if such Non-U.S. Financial Institution is a Synthetic Investor, the Fronting Lender) with two
completed originals of each of the following: (i) Form W-8ECI (claiming exemption from withholding because the income is effectively connected with a U.S. trade or business) (or any successor form), (ii) Form W-8BEN (claiming exemption
from withholding tax under an income tax treaty) (or any successor form), (iii) in the case of a Non-U.S. Financial Institution claiming exemption under Sections 871(h) or 881(c) of the Code, a Form W-8BEN (claiming exemption from
withholding under the portfolio interest exemption) or any successor form or (iv) any other applicable form, certificate or document prescribed by the IRS certifying as to such Non-U.S. Financial Institution’s entitlement to such exemption
from United States withholding tax or reduced rate with respect to all payments to be made to such Non-U.S. Financial Institutions under the Loan Documents. Within a reasonable period following written request therefor from the Borrower, each
Non-U.S. Financial Institution (but only as long as such Non-U.S. Financial Institution is able to do so pursuant to applicable Requirements of Law) shall provide to each of the Borrower and the Administrative Agent (and, if such Non-U.S. Financial
Institution is a Synthetic Investor, the Fronting Lender) such additional Forms W-8BEN or W-8ECI (or any successor or other applicable form, certificate or document prescribed by the IRS) to the extent necessary as a result of any prior form
expiring or becoming inaccurate or obsolete. Unless the Borrower and the Administrative Agent (and, if applicable, the Fronting Lender) have received forms or other documents satisfactory to each of them indicating that payments under any Loan
Document to or for a Non-U.S. Financial Institution are not subject to United States withholding tax or are subject to such tax at a rate reduced by an applicable tax treaty, the Borrower or the Administrative Agent (or, if applicable, the Fronting
Lender) shall withhold amounts required to be withheld by applicable Requirements of Law from such payments at the applicable statutory rate. The fact that the Fronting Lender shall withhold and pay to the 

  

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relevant taxing authority any amounts pursuant hereto shall not relieve the Borrower of any of its obligation to pay to the Fronting Lender such amounts. The
Fronting Lender shall provide the Administrative Agent and the Borrower with any such form or other document received from any Non-U.S. Synthetic Investor. 
  
 (g) Each Lender or Synthetic Investor (other than a Non-U.S. Financial Institution) shall, on or prior to the date of its execution and delivery of the
Agreement or, as the case may be, the date such Lender becomes a Lender or such Synthetic Investor becomes a Synthetic Investor, provide to each of the Borrower and the Administrative Agent (and, in the case of a Synthetic Investor, the Fronting
Lender) two completed original Forms W-9, unless such Lender or Synthetic Investor notifies the Borrower and the Administrative Agent (and, in the case of a Synthetic Investor, the Fronting Lender) that it is an “exempt recipient,”
as defined in Treasury Regulations Section 1.6049-4(c) with respect to which no withholding is required. Each Lender and Synthetic Investor (from time to time following written request therefor from the Borrower, but only for so long as such
Lender or Synthetic Investor is able to do so pursuant to applicable Requirements of Law) will provide to each of the Borrower and the Administrative Agent (and, in the case of a Synthetic Investor, the Fronting Lender) additional original Forms W-9
or notification of “exempt recipient” status (or any successor or other applicable form, certificate or document prescribed by the IRS) to the extent necessary as a result of any prior form or notification expiring or becoming
inaccurate or obsolete. 
  
 (h) (i) For any
period with respect to which a Lender has failed to provide the Borrower or the Administrative Agent with the appropriate form or other document described in Section 2.16(f) or (g), as applicable (other than if such failure is due
to a change in any applicable Requirement of Law occurring after the date on which a form originally was required to be provided, or if such form is not required under Section 2.16(g), such Lender shall not be entitled to indemnification
under Section 2.16(a) or (c) with respect to Taxes imposed by reason of such failure. 
  
 (ii) For any period with respect to which a Synthetic Investor has failed to provide the Fronting Lender with the appropriate form or
other document described in Section 2.16(f) or (g) (other than if such failure is due to a change in any applicable Requirement of Law occurring after the date on which a form originally was required to be provided, or if
such form is not required under Section 2.16(g)), neither such Synthetic Investor nor the Fronting Lender shall be entitled to indemnification under Section 2.16(a) or (c) with respect to Taxes imposed by reason
of such failure. 
  
 (i) If any Lender or the Administrative Agent
shall become aware that it (or, in the case of the Fronting Lender, any Synthetic Investor) is entitled to receive a refund in respect of Taxes or Other Taxes as to which such Lender or the Administrative Agent has received a payment from, or has
been indemnified by, the Borrower pursuant to this Section 2.16, it shall promptly notify the Borrower of such refund and shall, within 30 days after receipt of a request by the Borrower, apply (or cause such Synthetic 

  

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Investor to apply) for such refund at the sole cost and expense of the Loan Parties. If any Lender or the Administrative Agent receives a refund in respect
of any Taxes or Other Taxes as to which it has received a payment from or has been indemnified by the Borrower pursuant to this Section 2.16, which refund in the good faith judgment of such Lender or Administrative Agent, as the case may
be, is attributable to such payment made by the Borrower, it shall promptly notify the Borrower of such receipt and shall, within 30 days after the later of the receipt of a request by the Borrower or the receipt of such refund (unless such Lender
reasonably expects that is shall be required to repay such refund to the relevant tax authority), pay the amount of such refund to the Borrower, net of all out-of-pocket expenses of such Lender and taxes imposed on the Lender or Administrative Agent
with respect to such amounts (and, in the case of the Fronting Lender, of the Synthetic Investor), without interest thereon and subject to Section 11.6 (Right of Set-off); provided, however, that the Borrower agrees to
return such refund to such Lender or the Administrative Agent promptly upon receipt of written notice in the event that such Lender, the relevant Synthetic Investor or the Administrative Agent is required to repay such refund to the relevant tax
authority. Nothing contained in this Section 2.16 shall require any Lender or the Administrative Agent to make available to the Borrower any tax return or any other document containing information that it (or, in the case of the Fronting
Lender, the Synthetic Investor) deems to be confidential. 
  
 (j)
Any Lender claiming any additional amounts payable pursuant to this Section 2.16 shall use its reasonable efforts (consistent with its internal policy and legal and regulatory restrictions) to change the jurisdiction of its Applicable
Lending Office if the making of such a change would avoid the need for, or reduce the amount of, any such additional amounts which would be payable or may thereafter accrue and would not, in the reasonable judgment of such Lender, be otherwise
disadvantageous to such Lender. 
  
 Section 2.17
Substitution of Lenders 
  
 If (a)(i) any Lender
(other than the Fronting Lender) or Synthetic Investor makes a claim under Section 2.14(c) (Increased Costs) or 2.15 (Capital Adequacy), (ii) it becomes illegal for any Lender (other than the Fronting Lender) to continue to fund or
make any Eurodollar Rate Loan and such Lender notifies the Borrower pursuant to Section 2.14(d) (Illegality), (iii) the Borrower is required to make any payment pursuant to Section 2.16 (Taxes) that is attributable to a
particular Lender (other than the Fronting Lender) or Synthetic Investor, (iv) any Lender (other than the Fronting Lender) becomes a Non-Funding Lender or (v) any Synthetic Investor fails to make the initial payment it is required to make
in respect of any Credit-Linked Deposit, (b) in the case of clause (a)(i) above, as a consequence of increased costs in respect of which such claim is made, the effective rate of interest payable to such Lender or Synthetic Investor
under this Agreement with respect to its Loans exceeds the effective average rate of interest payable to the Requisite Lenders under this Agreement and (c) Lenders holding at least 75% of the aggregate Commitments (considering, for purpose of
this clause (c) that the Commitment of the Fronting Lender has been assigned to the Synthetic Investors in accordance with their Ratable Portion) are not subject to such increased costs or illegality, payment or proceedings (any such Lender or
Synthetic Investor, an “Affected 

  

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Lender”), the Borrower may substitute another financial institution for such Affected Lender hereunder, upon reasonable prior written notice
(which written notice must be given within 90 days following the notification to the Borrower of any applicable event described in clauses (a)(i), (ii), (iii) or (iv) above) by the Borrower to the
Administrative Agent and the Affected Lender (and, if such Affected Lender is a Synthetic Investor, the Fronting Lender) that the Borrower intends to make such substitution, which substitute financial institution (x) must be an Eligible
Assignee and (y) if not already a Lender or Synthetic Investor, must be reasonably acceptable to the Administrative Agent; provided, however, that, if more than one Lender or Synthetic Investor claims increased costs, illegality
or right to payment arising from the same act or condition and such claims are received by the Borrower within 30 days of each other, then the Borrower may substitute all, but not (except to the extent the Borrower has already substituted one of
such Affected Lenders before the Borrower’s receipt of the other Affected Lenders’ claim) less than all, Lenders and Synthetic Investors making such claims. If the proposed substitute financial institution or other entity meets the
conditions set forth in clauses (x) through (y) above and the written notice was properly issued under this Section 2.17, the Affected Lender shall sell and the substitute financial institution or other entity
shall purchase, at par plus accrued interest, (and, if such Affected Lender is a Synthetic Investor, the Fronting Lender shall execute all documents necessary to effect such sale and substitution) all rights and claims of such Affected Lender under
the Loan Documents and the Credit-Linked Deposit and such substitute financial institution or other entity shall assume and the Affected Lender shall be relieved of its Commitments and all other prior unperformed obligations of the Affected Lender
under the Loan Documents or, as the case may be, the Credit-Linked Deposit (other than in respect of any damages (other than exemplary or punitive damages, to the extent permitted by applicable law) in respect of any such unperformed obligations).
If such Affected Lender is a Lender hereunder, upon the effectiveness of such sale, purchase and assumption (that, in any event shall be conditioned upon the payment in full by the Borrower in cash of all fees, unreimbursed costs and expenses and
indemnities accrued and unpaid through such effective date to such Affected Lender), the substitute financial institution or other entity shall become a “Lender” (or if such Affected Lender is a Synthetic Investor, a
“Synthetic Investor”) hereunder for all purposes of this Agreement having a Commitment (if applicable) or Credit-Linked Deposit, as applicable, in the amount of such Affected Lender’s Commitment or Credit-Linked Deposit, as
applicable, assumed by it and such Commitment or Credit-Linked Deposit, as applicable, of the Affected Lender shall be terminated; provided, however, that all indemnities under the Loan Documents shall continue in favor of such
Affected Lender. If such Affected Lender is a Lender or Synthetic Investor hereunder, it shall execute an Assignment and Acceptance to evidence such transfer; provided, however, that the failure of the Affected Lender to execute such
Assignment and Acceptance shall not invalidate such assignment, and such Assignment and Acceptance shall be deemed to be executed upon receipt by such Affected Lender of such payment in full. 
  

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 ARTICLE III 
  
 CONDITIONS TO LOANS AND LETTERS
OF CREDIT 
  
 Section 3.1 Conditions Precedent to Effectiveness 
  
 This Agreement, including the covenants and obligations of the Borrower hereunder, the obligation of each Lender to make the Loans, the obligation of each Issuer to Issue Letters of Credit and the obligations of each
Synthetic Investor to make its Credit-Linked Deposit, shall not become effective until the date (the “Effective Date”) on which all of the following conditions precedent are satisfied or duly waived in accordance with
Section 11.1 (Amendments, Waivers, Etc.): 
  
 (a)
Deliveries at Closing. The Administrative Agent shall have received (i) this Agreement, executed and delivered by a Responsible Officer of the Borrower, (ii) if requested by any Lender, Promissory Notes substantially in the form of
Exhibit B-1 (Form of Promissory Note), each executed and delivered by a Responsible Officer of the Borrower, (iii) each Collateral Document, executed and delivered by a Responsible Officer of the Borrower and each Subsidiary Guarantor,
as applicable, and (iv) any intercompany notes evidencing Indebtedness permitted to be incurred pursuant to Section 8.1(f) (Indebtedness) with respect to any outstanding intercompany obligations and advances owed to a Loan Party,
executed and delivered by the obligor thereof. 
  
 (b)
Recapitalization. The Recapitalization shall be consummated substantially concurrently with the closing under the Facilities in accordance with applicable law and consistent with the terms described in this Agreement in all material respects;
the Plan of Reorganization and all other related documentation shall be satisfactory to the Administrative Agent in its reasonable discretion (it being understood that the Plan of Reorganization as filed as of the date hereof is satisfactory to the
Administrative Agent) and such Plan of Reorganization has not been amended in a manner adverse to the interest of the Lenders and Synthetic Investors without the consent of Requisite Lenders. After giving effect to the Recapitalization, the
consummation of the Plan of Reorganization and the other transactions contemplated hereby, the Borrower and its Subsidiaries shall have outstanding no Indebtedness or preferred stock other than Indebtedness permitted pursuant to
Section 8.1. 
  
 (c) Financial Statements. The
Administrative Agent shall have received (i) the Projections, (ii) GAAP audited consolidated balance sheets and related statements of income, stockholders’ equity and cash flows of the Borrower for the 2002, 2003 and 2004 fiscal years
and (iii) GAAP unaudited consolidated balance sheets and related statements of income, stockholders’ equity and cash flows of the Borrower for each subsequent fiscal quarter ended at least 45 days before the Effective Date, which financial
statements shall not be materially inconsistent in an adverse manner with the financial statements or forecasts previously provided to the Administrative Agent. 
  

(d) Pro Forma Financial Statements. The Administrative Agent shall have received a pro forma consolidated balance sheet and related pro forma
consolidated 

  

 71 

 
statement of income of the Borrower as of and for the twelve-month period ending on the last day of the most recently completed four-fiscal quarter period,
prepared after giving effect to the Recapitalization as if the Recapitalization had occurred as of such date (in the case of such balance sheet) or at the beginning of such period (in the case of such statement of income), which financial statements
shall not be materially inconsistent with the forecasts previously provided to the Administrative Agent. 
  
 (e) Receipt of Credit-Linked Deposits. The Fronting Lender shall have received the Credit-Linked Deposits from the Synthetic Investors in an
aggregate amount equal to the Fronting Lender’s Commitment under the Synthetic Facility. 
  
 (f) Confirmation Order. The Administrative Agent and its counsel shall have received a copy of the order, signed by the U.S. District Court and which has been entered by the clerk of the U.S. District Court on
the docket, confirming the Plan of Reorganization (the “Confirmation Order”), which shall be in form and substance reasonably satisfactory to the Administrative Agent and its counsel in their sole discretion. 
  
 (g) Plan Effective Date. All conditions precedent to the confirmation
of the Plan of Reorganization and the “effective date” (or similar term) set forth in the Plan of Reorganization (the “Plan Effective Date”) shall have been met or waived (provided that any such waiver shall have been
consented to by Requisite Lenders if such waiver could reasonably be expected to be materially adverse to the Lenders), each of the Plan Effective Date and substantial consummation of the Plan of Reorganization shall have occurred or shall be
scheduled to occur but for the funding of the Facilities, and the Plan of Reorganization and the Confirmation Order shall be in full force and effect. 
  
 (h) Collateral Documents. The Administrative Agent shall have received a duly executed Perfection Certificate dated on or prior to the Effective
Date (“Perfection Certificate”). The Administrative Agent shall have received the results of a recent Lien and judgment search in each relevant jurisdiction with respect to the Borrower and those of the Subsidiaries that shall be
Subsidiary Guarantors, and such search shall reveal no Liens on any of the assets of the Borrower or any of such Subsidiaries except, in the case of Collateral other than Pledged Stock (as defined in the Pledge and Security Agreement), for Liens
expressly permitted by Section 8.2 (Liens, Etc.) and except for Liens to be discharged on or prior to the Effective Date pursuant to documentation reasonably satisfactory to the Administrative Agent. The Collateral Documents shall be in
full force and effect on the Effective Date, and each document (including each Uniform Commercial Code financing statement) required by law or reasonably requested by the Administrative Agent to be filed, registered or recorded in order to create in
favor of the Administrative Agent for the ratable benefit of the Secured Parties a valid, legal and perfected first-priority Lien on, and security interest in, the Collateral (subject to any Liens expressly permitted by Section 8.2 (Liens,
Etc.)) shall have been delivered to the Collateral Agent. The Pledged Stock and the Pledged Notes (each as defined in the Pledge and Security Agreement) shall be duly and validly pledged under the Pledge and Security Agreement to the
Administrative Agent for the ratable benefit of the Secured Parties, and certificates representing such pledged Collateral, accompanied by instruments of transfer and stock powers endorsed in blank, shall have been delivered to the Administrative
Agent. 
  

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 (i) Legal Opinions. The Administrative Agent shall have received, on behalf of itself, the
Collateral Agent, the Syndication Agent, the Co-Documentation Agents, the Lenders, the Synthetic Investors and the Issuers, favorable written opinions of (a) Baker Botts L.L.P., counsel to the Loan Parties, in substantially the form of
Exhibit G (Form of Opinion of Counsel for the Loan Parties) and (b) each special and local counsel to the Loan Parties as the Administrative Agent may reasonably request, in each case dated as of the Effective Date and addressed to
the Administrative Agent, the Collateral Agent, the Syndication Agent, the Co-Documentation Agents, the Lenders, the Synthetic Investors and the Issuers and addressing such other matters as any Lender or any Synthetic Investor through the
Administrative Agent may reasonably request; 
  
 (j)
Certificates. The Administrative Agent shall have received (i) a copy of the certificate or articles of incorporation or other formation documents, including all amendments thereto, of each Loan Party, certified as of a recent date by
the Secretary of State (or other appropriate governmental authority) of the state of its organization, and a certificate as to the good standing of each Loan Party as of a recent date, from such Secretary of State (or other governmental authority),
except in the case of North County Recycling, Inc.; (ii) a certificate of a an Authorized Officer of each Loan Party dated the Effective Date and certifying (A) that attached thereto is a true and complete copy of the by-laws or similar
document of such Loan Party as in effect on the Effective Date and at all times since a date prior to the date of the resolutions described in clause (B) below, (B) that attached thereto is a true and complete copy of resolutions duly
adopted by the board of directors (or similar governing body) of such Loan Party authorizing the execution, delivery and performance of the Loan Documents to which such person is a party, in the case of the Borrower, the borrowings hereunder, in the
case of each Loan Party, the granting of the Liens contemplated to be granted by it under the Collateral Documents and, in the case of each Guarantor, the Guaranteeing of the Obligations as contemplated by the Pledge and Security Agreement, and that
such resolutions have not been modified, rescinded or amended and are in full force and effect, (C) that the certificate or articles of incorporation or other formation documents of such Loan Party have not been amended since the date of the
last amendment thereto shown on the certificate of good standing furnished pursuant to clause (i) above and (D) as to the incumbency and specimen signature of each officer executing any Loan Document or any other document delivered in
connection herewith on behalf of such Loan Party; (iii) a certificate of another officer as to the incumbency and specimen signature of the Authorized Officer executing the certificate pursuant to clause (ii) above; and (iv) such
other documents as the Administrative Agent may reasonably request; 
  
 (k) Solvency. The Administrative Agent shall have received a certificate of a Responsible Officer of the Borrower, stating that the Borrower and the Guarantors, taken as a whole, are Solvent as of the Effective Date and after giving
effect to the initial Loans and Letters of Credit, the application of the proceeds thereof in accordance with Section 7.9 (Application of Proceeds) and the payment of all estimated legal, accounting and other fees related hereto and
thereto; 
  

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 (l) Representations and Warranties; No Defaults. The Administrative Agent shall have received a
certificate of a Responsible Officer of the Borrower to the effect that (A) the condition set forth in Section 3.2(c) (Conditions Precedent to Each Loan and Letter of Credit) has been satisfied and (B) no litigation not listed
on Schedule 4.7 (Litigation) shall have been commenced against any Loan Party or any of its Subsidiaries that would reasonably be expected to have a Material Adverse Effect; 
  
 (m) USA PATRIOT Act. To the extent requested, the Agents, the Lenders and the Synthetic Investors shall have received
all documentation and other information required by bank regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including, without limitation, the USA Patriot Act. 
  
 (n) Fees and Expenses. There shall have been paid to the
Administrative Agent, for the account of the Administrative Agent, the Lenders and the Synthetic Investors, as applicable, all fees and expenses (including reasonable fees and expenses of counsel to the Administrative Agent) due and payable on or
before the Effective Date. 
  
 (o) Consents, Etc. Each of
the Borrower and its Subsidiaries shall have received all consents and authorizations required pursuant to any enforceable and material Contractual Obligation with any other Person and shall have obtained all consents and authorizations of, and
effected all notices to and filings with, any Governmental Authority, in each case, as may be necessary to allow each of the Borrower and its Subsidiaries lawfully to execute, deliver and perform, in all material respects, their respective
obligations hereunder and under and the Loan Documents to which each of them, respectively, is, or shall be, a party and each other agreement or instrument to be executed and delivered by each of them, respectively, pursuant thereto or in connection
therewith. 
  
 (p) Title Insurance. The Administrative
Agent shall have received in respect of each Mortgaged Property a mortgagee’s title insurance policy (or policies) or marked up unconditional binder for such insurance. Each such policy shall (i) be in an amount reasonably satisfactory to
the Administrative Agent; (ii) insure that the Mortgage insured thereby creates a valid first Lien on, and security interest in, such Mortgaged Property free and clear of all defects and encumbrances, except as disclosed therein;
(iii) name the Collateral Agent, for the benefit of the Secured Parties, as the insured thereunder; (iv) be in the form of ALTA Loan Policy - 1970 Form B (Amended 10/17/70 and 10/17/84) (or equivalent policies), if available;
(v) contain such endorsements and affirmative coverage as the Administrative Agent may reasonably request in form and substance acceptable to the Administrative Agent; and (vi) be issued by title companies satisfactory to the
Administrative Agent (including any such title companies acting as co-insurers or reinsurers, at the option of the Administrative Agent) (in each such case, a “Title Insurance Company”). The Administrative Agent shall have received
evidence satisfactory to it that all premiums in respect of each such policy, all charges for mortgage recording tax, and all related expenses, if any, have been paid. The Administrative Agent shall have received a copy of all recorded documents
referred to, or listed as exceptions to title in, the title policy or policies referred to above and a copy of all other material documents affecting the Mortgaged Property. 
  

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 (q) Flood Insurance. If requested by the Administrative Agent, the Administrative Agent shall have
received (i) a policy of flood insurance that (A) covers any parcel of improved Mortgaged Property that is located in a flood zone and (B) is written in an amount not less than the outstanding principal amount of the indebtedness
secured by such Mortgage that is reasonably allocable to such Mortgaged Property or the maximum limit of coverage made available with respect to the particular type of property under the National Flood Insurance Act of 1968, whichever is less and
(ii) confirmation that the Borrower has received the notice required pursuant to Section 208(e)(3) of Regulation H of the Board of Governors of the Federal Reserve System of the United States. 
  
 (r) Landlord Lien Waivers. The Borrower shall use commercially
reasonable efforts to deliver to the Administrative Agent Landlord Lien Waivers with respect to any leased Real Property on which any manufacturing or warehouse facility is located. 
  
 Section 3.2 Conditions Precedent to Each Loan and Letter of Credit 
  
 The obligation of each Lender on any date (including the Effective Date) to
make any Loan and of each Issuer on any date (including the Effective Date) to Issue any Letter of Credit is subject to the satisfaction of each of the following conditions precedent: 
  
 (a) Request for Borrowing or Issuance of Letter of Credit. With respect to any Loan, the Administrative Agent shall
have received a duly executed Notice of Borrowing (or, in the case of Swing Loans, a duly executed Swing Loan Request), and, with respect to any Letter of Credit, the Administrative Agent and the Issuer shall have received a duly executed Letter of
Credit Request. 
  
 (b) Request for Borrowing of Delayed Draw
Loans. With respect to a draw of Delayed Draw Loans, substantially concurrently with such draw of Delayed Draw Loans, the Administrative Agent shall have received (i) the BWICO Guaranty executed by a Responsible Officer of BWICO,
(ii) a valid and enforceable first priority pledge of all of the Borrower’s Stock and certificates representing such pledged Stock, accompanied by stock powers or other comparable instruments of transfer endorsed in blank, (iii) a
copy of the certificate of incorporation, including all amendments thereto, of BWICO, certified as of a recent date by the Secretary of State of the state of its organization, and a certificate as to the good standing of BWICO as of recent date,
from such Secretary of State; (iv) a certificate of an Authorized Officer of BWICO dated the Delayed Draw Loan Credit Date and certifying (A) that attached thereto is a true and complete copy of the by-laws of BWICO as in effect on the
Delayed Draw Loan Credit Date and at all times since a date prior to the date of the resolutions described in clause (B) below, (B) that attached thereto is a true and complete copy of resolutions duly 

  

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adopted by the board of directors of BWICO authorizing the execution, delivery and performance of the Loan Documents to which BWICO is a party, the granting
of the Liens contemplated to be granted by it under the Collateral Documents and the Guaranteeing of the Obligations as contemplated by the BWICO Guaranty, and that such resolutions have not been modified, rescinded or amended and are in full force
and effect, (C) that the certificate of incorporation of BWICO has not been amended since the date of the last amendment thereto shown on the certificate of good standing furnished pursuant to clause (iii) above and (D) as to the
incumbency and specimen signature of each officer executing any Loan Document or any other document delivered in connection therewith on behalf of BWICO; and (v) a certificate of another officer as to the incumbency and specimen signature of
the Authorized Officer executing the certificate pursuant to clause (iv) above. 
  
 (c) Representations and Warranties; No Defaults. The following statements shall be true on the date of such Loan or Issuance, both before and after giving effect thereto and, in the case of any Loan, to the
application of the proceeds therefrom: 
  
 (i)
the representations and warranties set forth in Article IV (Representations and Warranties) and in the other Loan Documents shall be true and correct on and as of the Effective Date and shall be true and correct in all material respects
on and as of any such date after the Effective Date with the same effect as though made on and as of such date, except to the extent such representations and warranties expressly relate to an earlier date, in which case such representations and
warranties shall have been true and correct in all material respects as of such earlier date; and 
  
 (ii) no Default or Event of Default shall have occurred and be continuing. 
  
 (d) No Legal Impediments. The making of the Loans or the Issuance of such Letter of Credit on such date does not
violate any applicable Requirement of Law on the date of or immediately following such Loan or Issuance of such Letter of Credit and is not enjoined, temporarily, preliminarily or permanently. 
  
 Each submission by the Borrower to the Administrative Agent of a Notice of
Borrowing or a Swing Loan Request and the acceptance by the Borrower of the proceeds of each Loan requested therein, and each submission by the Borrower to an Issuer of a Letter of Credit Request, and the Issuance of each Letter of Credit requested
therein, shall be deemed to constitute a representation and warranty by the Borrower as to the matters specified in clause (c) above on the date of the making of such Loan or the Issuance of such Letter of Credit. 
  
 Section 3.3 Determinations of Initial Borrowing Conditions

  
 For purposes of determining compliance with the
conditions specified in Section 3.1 (Conditions Precedent to Effectiveness), each Lender and each Synthetic Investor shall be deemed to have consented to, approved, accepted or be satisfied with, 

  

 76 

 
each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to the Lenders or the Synthetic Investors
unless an officer of the Administrative Agent responsible for the transactions contemplated by the Loan Documents shall have received notice from such Lender or such Synthetic Investor prior to the initial Borrowing or Issuance hereunder specifying
its objection thereto and such Lender shall not have made available to the Administrative Agent such Lender’s Ratable Portion of such Borrowing, or such Synthetic Investor shall not have made its Credit-Linked Deposit with the Fronting Lender.

  
 ARTICLE IV 
  
 REPRESENTATIONS AND
WARRANTIES 
  
 To induce the Lenders, the
Issuers, the Synthetic Investors and the Administrative Agent to enter into this Agreement, the Borrower represents and warrants each of the following to the Lenders, the Issuers, the Synthetic Investors and the Administrative Agent, on and as of
the Effective Date and the making of the Loans and the other financial accommodations on the Effective Date and on and as of each date as required by Section 3.2(c)(i) (Conditions Precedent to Each Loan and Letter of Credit): 

 
 Section 4.1 Corporate Existence; Compliance with Law

  
 Each of the Borrower and the Borrower’s
Subsidiaries (except with respect to North County Recycling, Inc for the period from the Effective Date through ten Business Days thereafter (or such longer period approved by the Administrative Agent in its sole discretion); provided this
exception shall not apply to clause (c) below) (a) is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, (b) is duly qualified to do business as a foreign corporation and in
good standing under the laws of each jurisdiction where such qualification is necessary, except where the failure to be so qualified or in good standing would not have a Material Adverse Effect, (c) has all requisite corporate or other
organizational power and authority and the legal right to own, pledge, mortgage and operate its properties, to lease the property it operates under lease and to conduct its business as now or currently proposed to be conducted, (d) is in
compliance with its Constituent Documents, (e) is in compliance with all applicable Requirements of Law except where the failure to be in compliance would not, in the aggregate, have a Material Adverse Effect and (f) has all necessary
licenses, permits, consents or approvals from or by, has made all necessary filings with, and has given all necessary notices to, each Governmental Authority having jurisdiction, to the extent required for such ownership, operation and conduct,
except for licenses, permits, consents, approvals or filings that can be obtained or made by the taking of ministerial action to secure the grant or transfer thereof or the failure of which to obtain or make would not, in the aggregate, have a
Material Adverse Effect. 
  

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 Section 4.2 Corporate Power; Authorization; Enforceable Obligations 
  
 (a) The execution, delivery and performance by each Loan Party of the Loan
Documents to which it is a party and the consummation of the transactions contemplated thereby: 
  
 (i) are within such Loan Party’s corporate, limited liability company, partnership or other organizational powers; 
  
 (ii) have been or, at the time of delivery thereof pursuant
to Article III (Conditions To Loans And Letters Of Credit) will have been duly authorized by all necessary corporate, limited liability company or partnership action, including the consent of shareholders, partners and members where
required; 
  
 (iii) do not and will not
(A) contravene such Loan Party’s or any of its Subsidiaries’ respective Constituent Documents, (B) violate any other Requirement of Law applicable to such Loan Party (including Regulations T, U and X of the Federal Reserve
Board), or any order or decree of any Governmental Authority or arbitrator applicable to such Loan Party, (C) conflict with or result in the breach of, or constitute a default under, or result in or permit the termination or acceleration of,
any lawful Contractual Obligation of such Loan Party or any of its Subsidiaries, other than in the case of this clause (C) any such conflict, breach, default, termination or acceleration that could not reasonably be expected to have a Material
Adverse Effect, or (D) result in the creation or imposition of any Lien upon any property of such Loan Party or any of its Subsidiaries, other than those in favor of the Secured Parties pursuant to the Collateral Documents; and 
  
 (iv) do not require the consent of, authorization by,
approval of, notice to, or filing or registration with, any Governmental Authority or any other Person, other than those listed on Schedule 4.2 (Consents) and that have been or will be, prior to the Effective Date, obtained or made,
copies of which have been or will be delivered to the Administrative Agent pursuant to Section 3.1 (Conditions Precedent to Effectiveness), and each of which on the Effective Date will be in full force and effect and, with respect to the
Collateral, filings required to perfect the Liens created by the Collateral Documents. 
  
 (b) This Agreement has been, and each of the other Loan Documents will have been upon delivery thereof pursuant to the terms of this Agreement, duly executed and delivered by each Loan Party who is a party thereto.
This Agreement is, and the other Loan Documents will be, when delivered, the legal, valid and binding obligation of each Loan Party who is a party thereto, enforceable against such Loan Party in accordance with its terms, subject to applicable
bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law. 
  

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 Section 4.3 Ownership of Borrower; Subsidiaries 
  
 (a) All of the outstanding capital stock of the Borrower is validly issued,
fully paid and non-assessable. 
  
 (b) Set forth on
Schedule 4.3 (Ownership of Subsidiaries) is a complete and accurate list showing, as of the Effective Date, all Subsidiaries of the Borrower and, as to each such Subsidiary, the jurisdiction of its organization, the number of shares of
each class of Stock authorized (if applicable), the number outstanding on the Effective Date and the number and percentage of the outstanding shares of each such class owned (directly or indirectly) by the Borrower. Except as set forth on
Schedule 4.3, no Stock of any Subsidiary of the Borrower is subject to any outstanding option, warrant, right of conversion or purchase of any similar right. Except as set forth on Schedule 4.3, all of the outstanding Stock of
each Subsidiary of the Borrower owned (directly or indirectly) by the Borrower has been validly issued, is fully paid and non-assessable (to the extent applicable) and is owned by the Borrower or a Subsidiary of the Borrower, free and clear of all
Liens (other than the Lien in favor of the Secured Parties created pursuant to the Pledge and Security Agreement), options, warrants, rights of conversion or purchase or any similar rights. Except as set forth on Schedule 4.3, neither the
Borrower nor any such Subsidiary is a party to, or has knowledge of, any agreement restricting the transfer or hypothecation of any Stock of any such Subsidiary, other than the Loan Documents and, with respect to any Subsidiary that is a Permitted
Joint Venture, the governing documents of such Permitted Joint Venture. The Borrower does not own or hold, directly or indirectly, any Stock of any Person other than such Subsidiaries and Investments permitted by Section 8.3
(Investments). 
  
 Section 4.4 Financial
Statements 
  
 (a) The interim unaudited financial
statements comprising the Financial Summary of Operations for Borrower for the quarter ended September 30, 2005, copies of which have been furnished to each Lender, fairly present in all material respects, subject to the absence of footnote
disclosure and normal recurring year-end audit adjustments, the consolidated financial condition of the Borrower and its Subsidiaries as at such dates and the consolidated results of the operations of the Borrower and its Subsidiaries for the period
ended on such dates, all in conformity with GAAP. 
  
 (b) Except
as set forth on Schedule 4.4, neither the Borrower nor any of its Subsidiaries has, as of the Effective Date, any material obligation, contingent liability or liability for taxes, long-term leases (other than operating leases) or unusual forward or
long-term commitment that is not reflected in the Financial Statements referred to in clause (a) above or in the notes thereto and not otherwise permitted by this Agreement. 
  
 (c) The Projections have been prepared by the Borrower taking into consideration past operations of its business, and
reflect projections for the period beginning approximately January 1, 2006 and ending approximately December 31, 2010 

  

 79 

 
on a Fiscal Quarter by Fiscal Quarter basis for the first year and on a Fiscal Year by Fiscal Year basis thereafter. The Projections are based upon estimates
and assumptions stated therein, all of which the Borrower believes, as of the Effective Date, to be reasonable in light of current conditions and current facts known to the Borrower (other than any necessary adjustments due to fees payable in
accordance herewith) and, as of the Effective Date, reflect the Borrower’s good faith estimates of the future financial performance of the Borrower and its Subsidiaries and of the other information projected therein for the periods set forth
therein. 
  
 Section 4.5 Material Adverse Change

  
 Since December 31, 2004, there has been no
Material Adverse Change and there have been no events or developments that, in the aggregate, have had a Material Adverse Effect. 
  
 Section 4.6 Solvency 
  
 Both before and after giving effect to (a) the Loans and Letter of Credit Obligations to be made or extended on the Effective Date or such other date
as Loans and Letter of Credit Obligations requested hereunder are made or extended, (b) the disbursement of the proceeds of such Loans pursuant to the instructions of the Borrower, (c) the consummation of the transactions contemplated
hereby and (d) the payment and accrual of all transaction costs in connection with the foregoing, each Loan Party is Solvent. 
  
 Section 4.7 Litigation 
  
 Except as set forth on Schedule 4.7 (Litigation), there are no pending or, to the knowledge of the Borrower, threatened actions, investigations or
proceedings against the Borrower or any of its Subsidiaries before any court, Governmental Authority or arbitrator other than those that, in the aggregate, would not reasonably be expected to have a Material Adverse Effect. Schedule 4.7
(Litigation) lists all litigation pending against any Loan Party as of the Effective Date that, if adversely determined, could be reasonably expected to have a Material Adverse Effect. 
  
 Section 4.8 Taxes 
  
 All federal income and other material tax returns, reports and statements
(collectively, the “Tax Returns”) required to be filed by the Borrower or any of its Tax Affiliates have been filed with the appropriate Governmental Authorities in all jurisdictions in which such Tax Returns are required to be
filed, all such Tax Returns are true and correct in all material respects, and all material taxes, charges and other impositions reflected therein or otherwise due and payable have been paid prior to the date on which any fine, penalty, interest,
late charge or loss may be added thereto for non-payment thereof except where contested in good faith and by appropriate proceedings if adequate reserves therefor have been established on the books of the Borrower or such Tax Affiliate in conformity
with GAAP. The Borrower and each of its Tax Affiliates have withheld and timely paid to the respective Governmental Authorities all material amounts required to be withheld. 
  

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 Section 4.9 Full Disclosure 
  
 The Information Memorandum and any other information prepared or furnished
by or on behalf of any Loan Party and delivered to the Lenders in writing in connection with this Agreement or the consummation of the transactions contemplated hereunder or thereunder (in each case, taken as a whole) does not, as of the time of
delivery of such information (with respect to the Information Memorandum, as of the Effective Date only), contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements contained therein or herein
not misleading; provided, however, that, to the extent any such information was based upon, or constituted, a forecast or projection, such Loan Party represents only, in respect of such projection or forecast, that it acted in good
faith and utilized reasonable assumptions and due care in the preparation of such information. 
  
 Section 4.10 Margin Regulations 
  
 The Borrower is not engaged in the business of extending credit for the purpose of purchasing or carrying margin stock (within the meaning of Regulation U
of the Federal Reserve Board), and no proceeds of any Borrowing will be used to purchase or carry any such margin stock or to extend credit to others for the purpose of purchasing or carrying any such margin stock in contravention of Regulation T, U
or X of the Federal Reserve Board. 
  
 Section 4.11 No
Burdensome Restrictions; No Defaults 
  
 (a) Neither the
Borrower nor any of its Subsidiaries (i) is a party to any Contractual Obligation (x) the compliance with which could reasonably be expected to have a Material Adverse Effect or (y) the performance of which by any thereof would result
in the creation of a Lien (other than a Lien permitted under Section 8.2 (Liens, Etc.)) on the property or assets of any thereof or (ii) is subject to any charter restriction that could reasonably be expected to have a Material
Adverse Effect. 
  
 (b) Neither the Borrower nor any of its
Subsidiaries is in default under or with respect to any Contractual Obligation owed by it, other than, in either case, those defaults that would not reasonably be expected to have a Material Adverse Effect. 
  
 (c) No Default or Event of Default has occurred and is continuing.

  
 Section 4.12 Investment Company Act; Public
Utility Holding Company Act 
  
 Neither the Borrower nor
any of its Subsidiaries is (a) an “investment company” or an “affiliated person” of, or “promoter” or “principal underwriter” for, an “investment company,” as
such terms are defined in the Investment Company Act of 1940, as amended or (b) a “holding company,” or an “affiliate” or a “holding company” or a “subsidiary company” of a
“holding company,” as each such term is defined and used in the Public Utility Holding Company Act of 1935, as amended. 
  

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 Section 4.13 Use of Proceeds 
  
 (a) The proceeds of the (i) Revolving Loans are being used by the
Borrower only for working capital needs and for general corporate purposes of the Borrower and its Subsidiaries, including the consummation of the transactions contemplated by the Plan of Reorganization (excluding any payments to be made to the
Asbestos PI Trust) and the Recapitalization, and (ii) Letters of Credit are being solely used by the Borrower to support warranties, bid bonds, payment or performance obligations and for other general corporate purposes by the Borrower, its
Subsidiaries and Permitted Joint Ventures. 
  
 (b) The proceeds of
the Delayed Draw Loans are being used by the Borrower only to refinance indebtedness of the Borrower pursuant to the Asbestos PI Trust Note. 
  
 Section 4.14 Insurance 
  
 All policies of insurance of any kind or nature currently maintained by the Borrower or any of its Subsidiaries, including policies of fire, theft,
product liability, public liability, property damage, other casualty, employee fidelity, workers’ compensation and employee health and welfare insurance, are in full force and effect and are of a nature and provide such coverage as is
sufficient and as is customarily carried by businesses of the size and character of such Person. 
  
 Section 4.15 Labor Matters 
  
 (a) There are no strikes, work stoppages, slowdowns or lockouts pending or, to the Borrower’s knowledge, threatened against or involving the
Borrower, any of its Subsidiaries or any Guarantor, other than those that, in the aggregate, would not reasonably be expected to have a Material Adverse Effect. 
  

(b) There are no unfair labor practices, grievances or complaints pending, or, to the Borrower’s knowledge, threatened, against or involving the
Borrower, any of its Subsidiaries or any Guarantor, nor, to the Borrower’s knowledge, are there any unfair labor practices, arbitrations or grievances threatened involving the Borrower, any of its Subsidiaries or any Guarantor, other than those
that if resolved adversely to the Borrower, such Subsidiary or such Guarantor, as applicable, would not reasonably be expected to have a Material Adverse Effect. 
  
 (c) Except as set forth on Schedule 4.15 (Labor Matters), as of the Effective Date, there is no collective bargaining
agreement covering any employee of the Borrower or its Subsidiaries. With respect to employees of the Borrower or any of its Subsidiaries not already covered by a collective bargaining agreement set forth on Schedule 4.15 (Labor Matters), as
of the Effective Date no union representation question exists with respect to such employees and, to Borrower’s knowledge, no union organization activity is taking place as of the Effective Date. 
  

 82 

 Section 4.16 ERISA 
  
 (a) Except as set forth on Schedule 4.16 (ERISA), each Employee Benefit Plan that is intended to qualify under
Section 401 of the Code has received a favorable determination letter from the IRS indicating that such Employee Benefit Plan is so qualified and nothing has occurred subsequent to the issuance of such determination letter which would cause
such Employee Benefit Plan to lose its qualified status. Any trust created under any Employee Benefit Plan is exempt from tax under the provisions of Section 501 of the Code, except where such failures could not reasonably be expected to have a
Material Adverse Effect. 
  
 (b) The Borrower, each of its
Subsidiaries, each Guarantor and each of their respective ERISA Affiliates is in material compliance with all applicable provisions and requirements of ERISA, the Code and applicable Employee Benefit Plan provisions with respect to each Employee
Benefit Plan except for non-compliances that would not reasonably be expected to have a Material Adverse Effect. 
  
 (c) With respect to each Title IV Plan and each Multiemployer Plan, the Borrower, each of its Subsidiaries, each Guarantor and each of their respective
ERISA Affiliates has made all contributions required under ERISA and the Code and are in material compliance with the minimum funding standard of Section 412 of the Code (in each case, whether or not waived in accordance with
Section 412(d) of the Code). 
  
 (d) There has been no, nor
is there reasonably expected to occur, any ERISA Event other than those that would not reasonably be expected to have a Material Adverse Effect. 
  
 (e) Except (i) to the extent required under Section 4980B of the Code or similar state laws, and (ii) with respect to which the aggregate
liability, calculated on a FAS 106 basis as of September 30, 2005, does not exceed $100,000,000, no Employee Benefit Plan provides health or welfare benefits (through the purchase of insurance or otherwise) to any retired or former employees,
consultants or directors (or their dependents) of the Borrower, any of its Subsidiaries, any Guarantor or any of their respective ERISA Affiliates. None of the Borrower, its Subsidiaries, any Guarantor or any of their respective ERISA Affiliates has
incurred or reasonably expects to incur any withdrawal liability with respect to any Multiemployer Plan. The Borrower, each of its Subsidiaries, each Guarantor and each of their ERISA Affiliates has complied with the requirements of Section 515
of ERISA with respect to each Multiemployer Plan and are not in material “default” (as defined in Section 4219(c)(5) of ERISA) with respect to payments to a Multiemployer Plan. 
  
 Section 4.17 Environmental Matters 
  
 (a) Except as disclosed on Schedule 4.17 (Environmental
Matters), the operations of the Borrower and each of its Subsidiaries have been and are in compliance 

  

 83 

 
with all Environmental Laws, including obtaining and complying with all required environmental, health and safety Permits, other than non-compliances that,
in the aggregate, would not reasonably be expected to result in a Material Adverse Effect. 
  
 (b) None of the Borrower or any of its Subsidiaries or any Real Property currently or, to the knowledge of the Borrower, previously owned, operated or leased by or for the Borrower or any of its Subsidiaries is
subject to any pending or, to the knowledge of the Borrower, threatened, claim, order, agreement, notice of violation, notice of potential liability or is the subject of any pending or threatened proceeding or governmental investigation under or
pursuant to Environmental Laws other than those orders, agreements, notices, proceedings or investigations that, in the aggregate, would not reasonably be expected to result in a Material Adverse Effect. 
  
 (c) Except as disclosed on Schedule 4.17 (Environmental Matters),
to the knowledge of the Borrower, there are no facts, circumstances or conditions arising out of or relating to the operations or ownership of the Borrower or of Real Property owned, operated or leased by the Borrower or any of its Subsidiaries that
are not specifically included in the financial information furnished to the Lenders other than those that, in the aggregate, would not reasonably be expected to result in a Material Adverse Effect. 
  
 Section 4.18 Intellectual Property 
  
 Except where the failure to do so would not, taken as a whole, reasonably be
expected to have a Material Adverse Effect, the Borrower and its Subsidiaries own or license or otherwise have the right to use all licenses, permits, patents, patent applications, trademarks, trademark applications, service marks, trade names,
copyrights, copyright applications, franchises, authorizations and other intellectual property rights (including all Intellectual Property as defined in the Pledge and Security Agreement) that are necessary for the operations of their respective
businesses, without infringement upon or conflict with the rights of any other Person with respect thereto. Except where the failure to do so would not, taken as a whole, reasonably be expected to have a Material Adverse Effect, no slogan or other
advertising device, product, process, method, substance, part or component, or other material now employed, or now contemplated to be employed, by the Borrower or any of its Subsidiaries infringes upon or conflicts with any rights owned by any other
Person, and no claim or litigation regarding any of the foregoing is pending or threatened. 
  
 Section 4.19 Title; Real Property 
  
 (a) Each of the Borrower and its Subsidiaries has valid and indefeasible title to, or valid leasehold interests in, all of its material properties and assets (including Real Property) and good title, or valid
leasehold interests in, to all personal property, in each case that is purported to be owned or leased by it, including those reflected on the most recent Financial Statements delivered by the Borrower, and none of such properties and assets is
subject to any Lien, except Liens permitted under Section 8.2 (Liens, Etc.). The Borrower and its Subsidiaries have received all deeds, 

  

 84 

 
assignments, waivers, consents, non-disturbance and recognition or similar agreements, bills of sale and other documents, and have duly effected all
recordings, filings and other actions necessary to establish, protect and perfect the Borrower’s and its Subsidiaries’ right, title and interest in and to all such property, other than those that would not reasonably be expected to result
in a Material Adverse Effect. 
  
 (b) Set forth on
Schedule 4.19(a) (Real Property) is a complete and accurate list, as of the Effective Date, of all (a) owned Real Property with a reasonably estimated Fair Market Value in excess of $3,000,000 showing, as of the Effective Date, the
street address, county (or other relevant jurisdiction or state) and the record owner thereof and (b) leased Real Property with annual lease payments in excess of $1,000,000 showing, as of the Effective Date, the street address, county (or
other relevant jurisdiction or state) and the landlord name, lease date and lease expiration date. 
  
 (c) No portion of any Real Property has suffered any material damage by fire or other casualty loss that has not heretofore been completely repaired and
restored to its original condition other than those that would not reasonably be expected to have a Material Adverse Effect. As of the Effective Date, no portion of any Mortgaged Property is located in a special flood hazard area as designated by
any federal Governmental Authority other than those for which flood insurance has been provided in accordance with Section 3.1(q) (Flood Insurance). 
  

(d) Except as would not reasonably be expected to have a Material Adverse Effect, (a) each Loan Party has obtained and holds all Permits required
in respect of all Real Property and for any other property otherwise operated by or on behalf of, or for the benefit of, such person and for the operation of each of its businesses as presently conducted and as proposed to be conducted, (b) all
such Permits are in full force and effect, and each Loan Party has performed and observed all requirements of such Permits, (c) no event has occurred that allows or results in, or after notice or lapse of time would allow or result in,
revocation or termination by the issuer thereof or in any other impairment of the rights of the holder of any such Permit, (d) no such Permits contain any restrictions, either individually or in the aggregate, that are materially burdensome to
any Loan Party, or to the operation of any of its businesses or any property owned, leased or otherwise operated by such person, (e) each Loan Party reasonably believes that each of its Permits will be timely renewed and complied with, without
material expense, and that any additional Permits that may be required of such Person will be timely obtained and complied with, without material expense and (f) the Borrower has no knowledge or reason to believe that any Governmental Authority
is considering limiting, suspending, revoking or renewing on materially burdensome terms any such Permit. 
  
 (e) None of the Borrower or any of its Subsidiaries has received any notice, or has any knowledge, of any pending, threatened or contemplated condemnation
proceeding affecting any Real Property or any part thereof, except those that would not reasonably be expected to have a Material Adverse Effect. 
  

 85 

 (f) Each of the Loan Parties, and, to the knowledge of the Borrower, each other party thereto, has
complied with all obligations under all leases of Real Property to which it is a party other than those the failure with which to comply would not reasonably be expected to have a Material Adverse Effect and all such leases are legal, valid, binding
and in full force and effect and are enforceable in accordance with their terms other than those the failure of which to so comply with the foregoing would not reasonably be expected to have a Material Adverse Effect. No landlord Lien has been
filed, and, to the knowledge of the Borrower, no claim is being asserted, with respect to any lease payment under any lease of Real Property other than those that would not reasonably be expected to have a Material Adverse Effect. 
  
 (g) There are no pending or, to the knowledge of the Borrower, proposed
special or other assessments for public improvements or otherwise affecting any material portion of the owned Real Property, nor are there any contemplated improvements to such owned Real Property that may result in such special or other
assessments, other than those that would not reasonably be expected to have a Material Adverse Effect. 
  
 ARTICLE V 
  
 FINANCIAL COVENANTS 
  
 The Borrower agrees with the Lenders, the Issuers, the Synthetic Investors and the Administrative Agent to each of the following as long as any Obligation or any Commitment remains outstanding and, in each case, unless the Requisite Lenders
otherwise consent in writing: 
  
 Section 5.1 Maximum
Leverage Ratio 
  
 The Borrower shall maintain a Leverage Ratio, as
determined as of the last day of each Fiscal Quarter set forth below, for the four Fiscal Quarters ending on such day, of not more than the maximum amount set forth below for such Fiscal Quarter: 
  

			
	 Fiscal Quarter Ending on

	  	Maximum Leverage Ratio

	 March 31, 2006
	  	3.50:1.00
	 June 30, 2006
	  	3.50:1.00
	 September 30, 2006
	  	3.50:1.00
	 December 31, 2006
	  	3.50:1.00
	 March 31, 2007
	  	3.50:1.00
	 June 30, 2007
	  	3.50:1.00
	 September 30, 2007
	  	3.25:1.00
	 December 31, 2007
	  	3.25:1.00
	 March 31, 2008
	  	3.25:1.00
	 June 30, 2008
	  	3.00:1.00
	 September 30, 2008
	  	2.75:1.00
	 December 31, 2008 and thereafter
	  	2.50:1.00

  

 86 

 Section 5.2 Minimum Interest Coverage Ratio 
  
 The Borrower shall maintain an Interest Coverage Ratio, as determined as of
the last day of each Fiscal Quarter set forth below, for the four Fiscal Quarters ending on such day, of not less than the minimum amount set forth below for such four Fiscal Quarters period: 
  

			
	 FOUR FISCAL QUARTER ENDING
ON

	  	 MINIMUM INTEREST
 COVERAGE RATIO

	 March 31, 2006
	  	3.25:1.00
	 June 30, 2006
	  	3.25:1.00
	 September 30, 2006
	  	3.25:1.00
	 December 31, 2006
	  	3.25:1.00
	 March 31, 2007
	  	3.25:1.00
	 June 30, 2007
	  	3.25:1.00
	 September 30, 2007
	  	3.25:1.00
	 December 31, 2007
	  	3.25:1.00
	 March 31, 2008
	  	3.25:1.00
	 June 30, 2008
	  	3.50:1.00
	 September 30, 2008
	  	3.75:1.00
	 December 31, 2008 and thereafter
	  	4.00:1.00

  
 ARTICLE VI

  
 REPORTING COVENANTS

  
 The Borrower agrees with the Lenders, the Synthetic
Investors and the Administrative Agent to each of the following, as long as any Obligation or any Commitment remains outstanding and, in each case, unless the Requisite Lenders otherwise consent in writing: 
  
 Section 6.1 Financial Statements 
  
 The Borrower shall furnish to the Administrative Agent each of the
following: 
  
 (a) Quarterly Reports. Within 45 days after
the end of each of the first three Fiscal Quarters of each Fiscal Year (unless such period is extended pursuant to SEC guidelines), consolidated unaudited balance sheets as of the close of such quarter and the related statements of income and cash
flow for such quarter and that portion of the Fiscal Year ending as of the close of such quarter, setting forth in comparative form the figures for the corresponding period in the prior year, in each case certified by a Responsible Officer of the
Borrower as fairly presenting in all material respects the consolidated financial position of the Borrower and its Subsidiaries as at the dates indicated and the results of their operations and cash flow for the periods indicated in accordance with
GAAP (subject to the absence of footnote disclosure and normal year-end audit adjustments). 
  

 87 

 (b) Annual Reports. Within 90 days after the end of each Fiscal Year (unless such period is
extended pursuant to SEC guidelines), consolidated balance sheets of the Borrower and its Subsidiaries as of the end of such Fiscal Year and related statements of income and cash flows of the Borrower and its Subsidiaries for such Fiscal Year, all
prepared in conformity with GAAP and certified, in the case of such consolidated financial statements, without qualification as to the scope of the audit or as to the Borrower being a going concern by the Borrower’s Accountants, together with
the report of such accounting firm stating that (i) such financial statements fairly present in all material respects the consolidated financial position of the Borrower and its Subsidiaries as at the dates indicated and the results of their
operations and cash flow for the periods indicated in conformity with GAAP applied on a basis consistent with prior years (except for changes in connection with fresh start accounting or with which the Borrower’s Accountants shall concur and
that shall have been disclosed in the notes to the financial statements) and (ii) the examination by the Borrower’s Accountants in connection with such consolidated financial statements has been made in accordance with generally accepted
auditing standards. 
  
 (c) Compliance Certificate.
Together with each delivery of any financial statement pursuant to clause (a) or (b) above, a certificate of a Responsible Officer of the Borrower substantially in the form of Exhibit K (each, a “Compliance
Certificate”) (i) showing in reasonable detail the calculations used in determining the Leverage Ratio and demonstrating compliance with each of the other financial covenants contained in Article V (Financial Covenants),
(ii) identifying any Asset Sale during the Fiscal Quarter to which such Compliance Certificate relates (or, in the case of any Compliance Certificate delivered in connection with the financial statements delivered pursuant to clause
(b) above, in the last Fiscal Quarter of such Fiscal Year to which such Compliance Certificate relates) and identifying the aggregate consideration received in connection with each such identified Asset Sale and (iii) stating that no
Default or Event of Default has occurred and is continuing or, if a Default or an Event of Default has occurred and is continuing, stating the nature thereof and the action which the Borrower has taken or proposes to take with respect thereto.

  
 (d) Budget. Not later than 90 days after the end of
each Fiscal Year, and containing substantially the types of financial information contained in the Projections, (i) the annual budget of the Borrower for the Fiscal Year next succeeding such Fiscal Year then ended reviewed by the Board of
Directors of the Borrower and (ii) forecasts prepared by management of the Borrower for each Fiscal Quarter in such next succeeding Fiscal Year, including, in each instance described in clause (ii) above, (x) a projected
year-end consolidated balance sheet and income statement and statement of cash flows and (y) a statement of all of the material assumptions on which such forecasts are based. 
  
 (e) Management Letters, Etc. Within five Business Days after receipt thereof by any Loan Party, copies of each
management letter, exception report or similar letter or report received by such Loan Party from its independent certified public accountants. 
  

 88 

 Section 6.2 Collateral Reporting Requirements 
  
 The Borrower shall furnish to the Administrative Agent each of the
following: 
  
 (a) Updated Corporate Chart. Together with
each delivery of any financial statement pursuant to Section 6.1(b) (Financial Statements), a corporate organizational chart or other equivalent list, current as of the date of delivery, in form and substance reasonably acceptable to the
Administrative Agent and certified as true, correct and complete by an Authorized Officer of the Borrower, setting forth, for each of the Loan Parties, all Persons subject to Section 7.11 (Additional Collateral and Guaranties), all
Subsidiaries of any of them and any joint venture (including Permitted Joint Ventures) entered into by any of the foregoing, (i) its full legal name, (ii) its jurisdiction of organization and organizational number (if any) and
(iii) the number of shares of each class of its Stock authorized (if applicable), the number outstanding as of the date of delivery, and the number and percentage of the outstanding shares of each such class owned (directly or indirectly) by
the Borrower. 
  
 (b) Additional Information. From time to
time, statements and schedules further identifying and describing the Collateral and such other reports in connection with the Collateral, all as the Administrative Agent may reasonably request, and in reasonable detail. 
  
 (c) Additional Filings. At any time and from time to time, upon the
reasonable written request of the Administrative Agent, and at the sole expense of the Loan Parties, duly executed, delivered and recorded instruments and documents for the purpose of obtaining or preserving the full benefits of this Agreement, the
Pledge and Security Agreement and each other Loan Document and of the rights and powers herein and therein granted (and each Loan Party shall take such further action as the Administrative Agent may reasonably request for such purpose, including the
filing of any financing or continuation statement under the UCC or other similar Requirement of Law in effect in any jurisdiction (whether domestic or foreign) with respect to the security interest created by the Pledge and Security Agreement but
excluding (i) the execution and delivery of any control agreements with respect to deposit accounts or securities accounts and (ii) any filings to perfect Liens on intellectual property, other than any such filings under the UCC or with
the U.S. Patent and Trademark Office or U.S. Copyright Office. 
  
 The reporting
requirements set forth in this Section 6.2 are in addition to, and shall not modify and are not in replacement of, any rights and other obligation set forth in any Loan Document (including notice and reporting requirements) and
satisfaction of the reporting obligations in this Section 6.2 shall not, by itself, operate as an update of any Schedule or any schedule of any other Loan Document and shall not cure, or otherwise affect in any way, any Default or Event
of Default, including any failure of any representation or warranty of any Loan Document to be correct in any respect when made. 
  

 89 

 Section 6.3 Default Notices 
  
 Promptly and in any event within five Business Days after a Responsible
Officer of the Borrower obtains actual knowledge of the existence of any Default or Event of Default, the Borrower shall give the Administrative Agent notice specifying the nature of such Default or Event of Default or other event, including
the anticipated effect thereof, which notice, if given by telephone, shall be promptly confirmed in writing on the next Business Day. 
  
 Section 6.4 Litigation 
  
 Promptly after a Responsible Officer of the Borrower obtains actual knowledge of the commencement thereof, the Borrower shall give the Administrative
Agent written notice of the commencement of all actions, suits and proceedings before any domestic or foreign Governmental Authority or arbitrator, regarding the Borrower, any of its Subsidiaries or any Permitted Joint Venture that (i) seeks
injunctive or similar relief that, in the reasonable judgment of the Borrower, if adversely determined, would reasonably be expected to result in a Material Adverse Effect or (ii) in the reasonable judgment of the Borrower would expose the
Borrower, such Subsidiary or such Permitted Joint Venture to liability in an amount aggregating $20,000,000 or more or that, if adversely determined, would reasonably be expected to have a Material Adverse Effect. 
  
 Section 6.5 Labor Relations 
  
 Promptly after a Responsible Officer of the Borrower has actual knowledge of
the same, the Borrower shall give the Administrative Agent written notice of (a) any material labor dispute to which the Borrower, any of its Subsidiaries, any Guarantors or any Permitted Joint Venture is a party, including any strikes,
lockouts or other material disputes relating to any of such Person’s plants and other facilities, provided that such dispute, strike or lockout involves a work stoppage exceeding 30 days, (b) any material Worker Adjustment and Retraining
Notification Act or related liability incurred with respect to the closing of any plant or other facility of any such Person affecting 300 or more employees of the Borrower and its Subsidiaries and (c) any union organization activity with
respect to employees of the Borrower or any of its Subsidiaries not covered by a collective bargaining agreement as of the Effective Date. 
  
 Section 6.6 Tax Returns 
  
 Upon the reasonable request of any Lender or any Synthetic Investor, in each case through the Administrative Agent, the Borrower shall provide copies of
all federal, state, local and foreign tax returns and reports filed by the Borrower, any of its Subsidiaries or any Permitted Joint Venture in respect of taxes measured by income (excluding sales, use and like taxes). 
  
 Section 6.7 Insurance 
  
 As soon as is practicable and in any event within 90 days after the end of
each Fiscal Year, the Borrower shall furnish the Administrative Agent with a report on 

  

 90 

 
the standard “Acord” form outlining all material insurance coverage maintained as of the date of such report by the Borrower, its Subsidiaries and
Permitted Joint Ventures and the duration of such coverage. 
  
 Section 6.8 ERISA Matters 
  
 The
Borrower shall furnish the Administrative Agent each of the following: 
  
 (a) promptly and in any event within 30 days after a Responsible Officer of the Borrower knows, or has reason to know, that any ERISA Event has occurred that, alone or together with any other ERISA Event, would reasonably be expected to
result in liability of the Borrower, any Subsidiary, any Guarantor and/or any ERISA Affiliate in an aggregate amount exceeding $7,500,000, written notice describing the nature thereof, what action the Borrower, any of its Subsidiaries, any Guarantor
or any of their respective ERISA Affiliates has taken, is taking or proposes to take with respect thereto and, when known by such Responsible Officer, any action taken or threatened by the IRS, the Department of Labor or the PBGC with respect to
such event; 
  
 (b) promptly and in any event within 10 days after
a Responsible Officer of the Borrower knows, or has reason to know, that a request for a minimum funding waiver under Section 412 of the Code has been filed with respect to any Title IV Plan, a written statement of an Authorized Officer of the
Borrower describing such waiver request and the action, if any, the Borrower, its Subsidiaries and ERISA Affiliates propose to take with respect thereto and a copy of any notice filed with the PBGC or the IRS pertaining thereto; 
  
 (c) simultaneously with the date that the Borrower, any of its Subsidiaries
or any ERISA Affiliate files with the PBGC a notice of intent to terminate any Title IV Plan, if, at the time of such filing, such termination would require material additional contributions in order to be considered a standard termination within
the meaning of Section 4041(b) of ERISA, a copy of each notice; and 
  
 (d) promptly, copies of (i) each Schedule B (Actuarial Information) to the annual report (Form 5500 Series) filed by the Borrower, any of its Subsidiaries, any Guarantor or any of their respective ERISA
Affiliates with the IRS with respect to each Title IV Plan; (ii) all notices received by the Borrower, any of its Subsidiaries, any Guarantor or any of their respective ERISA Affiliates from a Multiemployer Plan sponsor concerning an ERISA
Event; and (iii) copies of such other documents or governmental reports or filings relating to any Employee Benefit Plan as the Administrative Agent shall reasonably request. 
  
 Section 6.9 Environmental Matters 
  
 The Borrower shall provide the Administrative Agent promptly, and in any event within 10 Business Days after any Responsible
Officer of the Borrower obtains actual knowledge of any of the following, written notice of each of the following: 
  

 91 

 (a) that any Loan Party is or may be liable to any Person as a result of a Release or threatened Release
that would reasonably be expected to subject such Loan Party to Environmental Liabilities and Costs of $10,000,000 or more; 
  
 (b) the receipt by any Loan Party of notification that any material real or personal property of such Loan Party is or is reasonably likely to be subject
to any Environmental Lien; 
  
 (c) the receipt by any Loan Party
of any notice of violation of or potential liability under, or knowledge by a Responsible Officer of the Borrower that there exists a condition that would reasonably be expected to result in a violation of or liability under, any Environmental Law,
except for violations and liabilities the consequence of which, in the aggregate, would not be reasonably likely to subject the Loan Parties collectively to Environmental Liabilities and Costs of $10,000,000 or more; and 
  
 (d) promptly following reasonable written request by any Lender or any
Synthetic Investor, in each case through the Administrative Agent, a report providing an update of the status of any environmental, health or safety compliance, hazard or liability issue identified in any notice or report delivered pursuant to this
Section 6.9. 
  
 Section 6.10 Patriot Act
Information 
  
 Each Lender, each Synthetic Investor and
the Administrative Agent (for itself and not on behalf of any Lender or Synthetic Investor) hereby notifies the Borrower that pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26,
2001)) (the “Patriot Act”), it is required to obtain, verify and record information that identifies the Borrower, which information includes the name and address of the Borrower and other information that will allow such Lender,
Synthetic Investor or the Administrative Agent, as applicable, to identify the Borrower in accordance with the Patriot Act. The Borrower shall promptly, following a request by any Agent, any Lender or any Synthetic Investor, provide all
documentation and other information that such Agent, such Lender or such Synthetic Investor reasonably requests in order to comply with its ongoing obligations under applicable “know your customer” and anti-money laundering rules and
regulations, including, without limitation, the Patriot Act. 
  
 Section 6.11 Other Information 
  
 The Borrower shall provide the Administrative Agent, any Lender or any Synthetic Investor with such other information respecting the business, properties, condition, financial or otherwise, or operations of the Borrower, any of its
Subsidiaries or any Permitted Joint Venture as the Administrative Agent or such Lender or Synthetic Investor, in each case through the Administrative Agent, may from time to time reasonably request. The Administrative Agent shall provide copies of
any written information provided to it pursuant to this Article VI (Reporting Covenants) to any Lender requesting the same. Within ten Business Days after the Effective Date (or such 

  

 92 

 
longer period approved by the Administrative Agent in its sole discretion), the Borrower shall have provided the Administrative Agent with a good standing
certificate and other documents required by Section 3.1(j)(i) with respect to North County Recycling, Inc. 
  
 ARTICLE VII 
  
 AFFIRMATIVE COVENANTS 
  
 The Borrower agrees with the Lenders, the Synthetic Investors and the Administrative Agent to each of the following, as long as any Obligation or any Commitment remains outstanding and, in each case, unless the Requisite Lenders otherwise
consent in writing: 
  
 Section 7.1 Preservation of
Corporate Existence, Etc. 
  
 The Borrower shall, and
shall cause each of its Subsidiaries to, preserve and maintain its legal existence, rights (charter and statutory) and franchises, except as permitted by Sections 8.3 (Investments), 8.4 (Sale of Assets) and 8.6 (Fundamental
Changes) and except if, in the reasonable business judgment of the Borrower, it is in the business interest of the Borrower or such Subsidiary not to preserve and maintain such rights (charter and statutory) and franchises, and such failure to
preserve the same would not reasonably be expected to have a Material Adverse Effect and would not reasonably be expected to materially affect the interests of the Secured Parties under the Loan Documents or the rights and interests of any of them
in the Collateral. 
  
 Section 7.2 Compliance with
Laws, Etc. 
  
 The Borrower shall, and shall cause each
of its Subsidiaries to, comply with all applicable Requirements of Law, Contractual Obligations and Permits, except where the failure so to comply would not reasonably be expected to have a Material Adverse Effect. 
  
 Section 7.3 Conduct of Business 
  
 The Borrower shall, and shall cause each of its Subsidiaries to,
(a) conduct its business in the ordinary course (except for non-material changes in the nature or conduct of its business as carried on as of the Effective Date) and (b) use its reasonable efforts, in the ordinary course, to preserve its
business and the goodwill and business of the customers, suppliers and others having business relations with the Borrower or any of its Subsidiaries, except where the failure to comply with the covenants in each of clauses (a) and
(b) above would not reasonably be expected to have a Material Adverse Effect. 
  
 Section 7.4 Payment of Taxes, Etc. 
  
 The Borrower shall, and shall cause each of its Subsidiaries to, pay and discharge before the same shall become delinquent, all lawful governmental claims, taxes, assessments, charges and levies, except where
(a) contested in good faith, by 

  

 93 

 
proper proceedings and adequate reserves therefor have been established on the books of the Borrower or the appropriate Subsidiary in conformity with GAAP or
(b) the failure to so pay and discharge would not, in the aggregate, reasonably be expected to have a Material Adverse Effect. 
  
 Section 7.5 Maintenance of Insurance 
  
 The Borrower shall, and shall cause each of its Subsidiaries to, (a) maintain insurance with responsible and reputable insurance companies or
associations in such amounts and covering such risks as, in the reasonable determination of the Borrower, is usually carried by companies engaged in similar businesses and owning similar properties in the same general areas in which the Borrower or
such Subsidiary operates and (b) cause all such insurance to name the Collateral Agent on behalf of the Secured Parties as additional insured (with respect to liability and property policies), loss payee (with respect to property policies) or
lender’s loss payee (with respect to property policies), as appropriate, and to provide that no cancellation, material addition in amount or material change in coverage shall be effective until after 30 days’ written notice thereof to the
Administrative Agent. 
  
 Section 7.6 Access

  
 The Borrower shall from time to time during normal
business hours, and subject to national security and defense requirements of any Governmental Authority, permit the Administrative Agent, the Synthetic Investors and the Lenders, or any agents or representatives thereof, within five Business Days
after written notification of the same (except that during the continuance of an Event of Default, no such notice shall be required) to (a) examine and make copies of and abstracts from the records and books of account of the Borrower and each
of its Subsidiaries, (b) visit the properties of the Borrower and each of its Subsidiaries, (c) discuss the affairs, finances and accounts of the Borrower and each of its Subsidiaries with any of their respective officers or directors;
provided, that the Borrower will not be required to permit any examination or visit as set forth in clauses (a) and (b) above with respect to each of the Administrative Agent, the Synthetic Investors and the Lenders
(or any agents or representatives thereof) (i) within the twelve-month period following the date of the most recent examination or visit by any Synthetic Investor, any Lender or the Administrative Agent (or any agents or representatives
thereof), as applicable, unless an Event of Default has occurred and is continuing and (ii) unless such visit is coordinated through the Administrative Agent. 
  
 Section 7.7 Keeping of Books 
  
 The Borrower shall, and shall cause each of its Subsidiaries to keep, proper books of record and account, in which full and
correct entries shall be made in conformity with GAAP of the financial transactions and assets and business of the Borrower and each such Subsidiary. 
  

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 Section 7.8 Maintenance of Properties, Etc. 
  
 The Borrower shall, and shall cause each of its Subsidiaries to, maintain
and preserve (a) in good working order and condition (ordinary wear and tear excepted) all of its properties necessary in the conduct of its business, (b) all rights, permits, licenses, approvals and privileges (including all Permits)
necessary in the conduct of its business and (c) all Material Intellectual Property, except where failure to so maintain and preserve the items set forth in clauses (a), (b) and (c) above would not reasonably
be expected to have a Material Adverse Effect. 
  
 Section 7.9 Application of Proceeds 
  
 The Borrower shall use the entire amount of the proceeds of the Loans as provided in Section 4.13 (Use of Proceeds). 
  
 Section 7.10 Environmental 
  
 (a) The Borrower shall, and shall cause each of its Subsidiaries to, exercise reasonable due diligence in order to comply in all material respects with
all Environmental Laws. 
  
 (b) The Borrower agrees that the
Administrative Agent may, from time to time, retain, at the expense of the Borrower, an independent professional consultant reasonably acceptable to the Borrower to review any report relating to Contaminants prepared by or for the Borrower and to
conduct its own investigation (the scope of which investigation shall be reasonable based upon the circumstances) of any property currently owned, leased, operated or used by the Borrower or any of its Subsidiaries, if (x) a Default or an Event
of Default shall have occurred and be continuing, or (y) the Administrative Agent reasonably believes (1) that an occurrence relating to such property is likely to give rise to any Environmental Liabilities and Costs or (2) that a
violation of an Environmental Law on or around such property has occurred or is likely to occur, which could, in either such case, reasonably be expected to result in Environmental Liabilities and Costs in excess of $10,000,000, provided
that, unless an Event of Default shall have occurred and be continuing, such consultant shall not drill on any property of the Borrower or any of its Subsidiaries without the Borrower’s prior written consent. Borrower shall use its reasonable
efforts to obtain for the Administrative Agent and its agents, employees, consultants and contractors the right, upon reasonable notice to Borrower, to enter into or on to the facilities currently owned, leased, operated or used by Borrower or any
of its Subsidiaries to perform such tests on such property as are reasonably necessary to conduct such a review and/or investigation. Any such investigation of any property shall be conducted, unless otherwise agreed to by Borrower and the
Administrative Agent, during normal business hours and, shall be conducted so as not to unreasonably interfere with the ongoing operations at any such property or to cause any damage or loss at such property. Borrower and the Administrative Agent
hereby acknowledge and agree that any report of any investigation conducted at the request of the Administrative Agent pursuant to this subsection will be obtained and shall be used by the Administrative Agent and the Lenders for the purposes of the
Lenders’ 

  

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internal credit decisions, to monitor the Loans and to protect the Lenders’ security interests created by the Loan Documents, and the Administrative
Agent and the Lenders hereby acknowledge and agree any such report will be kept confidential by them to the extent permitted by law except as provided in the following sentence. The Administrative Agent agrees to deliver a copy of any such report to
Borrower with the understanding that Borrower acknowledges and agrees that (i) it will indemnify and hold harmless the Administrative Agent and each Lender from any costs, losses or liabilities relating to Borrower’s use of or reliance on
such report, (ii) neither Administrative Agent nor any Lender makes any representation or warranty with respect to such report, and (iii) by delivering such report to Borrower, neither the Administrative Agent nor any Lender is requiring
or recommending the implementation of any suggestions or recommendations contained in such report. 
  
 (c) Promptly after a Responsible Officer of the Borrower obtains actual knowledge thereof, the Borrower shall advise the Administrative Agent in writing
and in reasonable detail of (i) any Release or threatened Release of any Contaminants required to be reported by Borrower or its Subsidiaries, to any Governmental Authorities under any applicable Environmental Laws and which would reasonably be
expected to have Environmental Liabilities and Costs in excess of $10,000,000, (ii) any and all written communications with respect to any pending or threatened claims under Environmental Law in each such case which, individually or in the
aggregate, have a reasonable possibility of giving rise to Environmental Liabilities and Costs in excess of $10,000,000, (iii) any Remedial Action performed by Borrower or any other Person in response to (x) any Contaminants on, under or
about any property, the existence of which has a reasonable possibility of resulting in Environmental Liabilities and Costs in excess of $10,000,000, or (y) any other Environmental Liabilities and Costs in excess of $10,000,000 that could
result in Environmental Liabilities and Costs in excess of $10,000,000, (iv) discovery by Borrower or its Subsidiaries of any occurrence or condition on any material property that could cause Borrower’s or its Subsidiaries’ interest
in any such property to be subject to any material restrictions on the ownership, occupancy, transferability or use thereof under any applicable Environmental Laws or Environmental Liens, and (v) any written request for information from any
Governmental Authority that fairly suggests such Governmental Authority is investigating whether Borrower or any of its Subsidiaries may be potentially responsible for a Release or threatened Release of Contaminants which has a reasonable
possibility of giving rise to Environmental Liabilities and Costs in excess of $10,000,000. 
  
 (d) Borrower shall promptly notify the Administrative Agent of (i) any proposed acquisition of stock, assets, or property by Borrower or any of its Subsidiaries that would reasonably be expected to expose
Borrower or any of its Subsidiaries to, or result in Environmental Liabilities and Costs in excess of $10,000,000 and (ii) any proposed action to be taken by Borrower or any of its Subsidiaries to commence manufacturing, industrial or other
similar operations that would reasonably be expected to subject Borrower or any of its Subsidiaries to additional Environmental Laws, that are materially different from the Environmental Laws applicable to the operations of Borrower or any of its
Subsidiaries as of the Effective Date. 
  

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 (e) Borrower shall, at its own expense, provide copies of such documents or information as the
Administrative Agent may reasonably request in relation to any matters disclosed pursuant to this subsection. 
  
 (f) To the extent required by Environmental Laws or Governmental Authorities under applicable Environmental Laws, Borrower shall promptly take, and shall
cause each of its Subsidiaries promptly to take, any and all necessary Remedial Action in connection with the presence, handling, storage, use, disposal, transportation or Release or threatened Release of any Contaminants on, under or affecting any
property in order to comply in all material respects with all applicable Environmental Laws and Governmental Authorizations. In the event Borrower or any of its Subsidiaries undertakes any Remedial Action with respect to the presence, Release or
threatened Release of any Contaminants on or affecting any property, Borrower or any of its Subsidiaries shall conduct and complete such Remedial Action in material compliance with all applicable Environmental Laws, and in material accordance with
the applicable policies, orders and directives of all relevant Governmental Authorities except when, and only to the extent that, Borrower or any such Subsidiaries’ liability for such presence, handling, storage, use, disposal, transportation
or Release or threatened Release of any Contaminants is being contested in good faith by Borrower or any of such Subsidiaries. In the event Borrower fails to take required actions to address such Release or threatened Release of Contaminants or to
address a violation of or liability under Environmental Law, the Administrative Agent may, upon providing the Borrower with 5 Business Days’ prior written notice, enter the property and, at Borrower’s sole expense, perform whatever action
the Administrative Agent reasonably deems prudent to rectify the situation. 
  
 Section 7.11 Additional Collateral and Guaranties 
  
 To the extent not delivered to the Administrative Agent on or before the Effective Date, the Borrower agrees to do promptly each of the following:

  
 (a) execute and deliver to the Administrative Agent such
amendments to the Collateral Documents or enter into such new Collateral Documents as the Administrative Agent deems necessary or advisable in order to grant to the Administrative Agent, for the ratable benefit of the Secured Parties, a perfected
first-priority security interest in the Stock and Stock Equivalents and other debt Securities of any Subsidiary of the Borrower that are owned by the Borrower or any of its Domestic Subsidiaries; provided, however, that in no event
shall the Borrower or any of its Domestic Subsidiaries be required to pledge in excess of 66% of the outstanding Voting Stock (and 100% of the outstanding non-Voting Stock) of any Foreign Subsidiary or any of the stock of any Subsidiary of such
Foreign Subsidiary; 
  
 (b) deliver to the Administrative Agent
the certificates (if any) representing such Stock and Stock Equivalents and other debt Securities, together with (A) in the case of such certificated Stock and Stock Equivalents, undated stock powers or other instruments of transfer endorsed in
blank and (B) in the case of such certificated debt Securities, endorsed in blank, in each case executed and delivered by a Responsible Officer of the Borrower or such Subsidiary, as the case may be; 

  

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 (c) in the case of any Wholly-Owned Subsidiary of any Loan Party that is a Domestic Subsidiary, cause
such Wholly-Owned Subsidiary (i) to become a party to the Pledge and Security Agreement and the applicable Collateral Documents and (ii) to take such actions necessary or advisable to grant to the Administrative Agent for the ratable
benefit of the Secured Parties a perfected security interest in the Collateral described in the Collateral Documents with respect to such Subsidiary, including the filing of UCC financing statements in such jurisdictions as may be required by the
Collateral Documents or by law or as may be reasonably requested by the Administrative Agent; and 
  
 (d) if requested by the Administrative Agent, deliver to the Administrative Agent legal opinions relating to the matters described above, which opinions
shall be in form and substance, and from counsel, reasonably satisfactory to the Agent. 
  
 Section 7.12 Real Property 
  
 With respect to any fee interest in any Collateral consisting of Real Property with a reasonably estimated Fair Market Value of $3,000,000 or more or any lease of Collateral consisting of Real Property acquired, or
leased for more than $1,000,000 annually, after the Effective Date by the Borrower or any other Loan Party, Borrower or the applicable Loan Party shall promptly (and, in any event, within five Business Days following the date of such acquisition)
(i) execute and deliver a first priority Mortgage (subject only to Liens permitted by this Agreement and such Mortgage) in favor of the Collateral Agent, for the benefit of the Secured Parties, covering such Real Property and complying with the
provisions herein and in the Collateral Documents, (ii) provide the Secured Parties with title insurance in an amount at least equal to the purchase price of such Real Property (or such other amount as the Administrative Agent shall reasonably
specify), and if applicable, flood insurance and lease estoppel certificates, all in accordance with the standards for deliveries contemplated on the Effective Date, as described in Sections 3.1(p) through (r) hereof,
(iii) if requested by the Administrative Agent, deliver to the Administrative Agent and the Collateral Agent legal opinions relating to the matters described above, which opinions shall be in form and substance, and from counsel, reasonably
satisfactory to the Administrative Agent and the Collateral Agent, (iv) if requested by the Administrative Agent, use commercially reasonable efforts to obtain Landlord Lien Waivers for each Real Property leasehold interest on which a
manufacturing facility or warehouse or other facility where Collateral is stored or held; provided, however that no such Landlord Lien Waiver shall be required for any location at which Collateral is stored or located unless the aggregate
value of Collateral stored or held at such location exceeds $1,000,000. 
  

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 Section 7.13 Interest Rate Protection 
  
 The Borrower shall ensure that for at least two years following the
Effective Date no less than 50% of the Borrower’s long-term Indebtedness (excluding any Borrowings of Revolving Loans) effectively bears interest at a fixed rate, either by its terms or through the Borrower entering into, as promptly as
practicable after the funding of Delayed Draw Loans (and in any event no later than the 180th day after such
funding), Hedging Contracts reasonably acceptable to the Administrative Agent. 
  
 ARTICLE VIII 
  
 NEGATIVE COVENANTS 
  
 The Borrower agrees with the Lenders, the Synthetic Investors and the Administrative Agent to each of the following, as long as any Obligation or any Commitment remains outstanding and, in each case, unless the Requisite Lenders otherwise
consent in writing: 
  
 Section 8.1 Indebtedness

  
 The Borrower shall not, and shall not permit any of
its Subsidiaries to, directly or indirectly create, incur, assume or otherwise become or remain directly or indirectly liable with respect to any Indebtedness except for the following: 
  
 (a) the Secured Obligations; 
  
 (b) Indebtedness existing on the Effective Date and disclosed on Schedule 8.1 (Existing Indebtedness); 
  
 (c) Guaranty Obligations incurred by the Borrower or any Guarantor in respect
of Indebtedness of the Borrower or any Guarantor that is permitted by this Section 8.1 (other than clause (g) below); 
  
 (d) Capital Lease Obligations and purchase money Indebtedness incurred by the Borrower or a Subsidiary of the Borrower to finance the acquisition of fixed
assets; provided, however, that the Capital Expenditure related thereto is otherwise permitted by Section 5.4 (Capital Expenditures) and that the aggregate principal amount of all such Capital Lease Obligations and purchase
money Indebtedness outstanding at any time shall not exceed $15,000,000 at any time; 
  
 (e) Renewals, extensions, refinancings and refundings of Indebtedness permitted by clause (b) or (d) above or this clause (e); provided, however, that any such
renewal, extension, refinancing or refunding is in an aggregate principal amount not greater than the principal amount of (plus reasonable fees, expenses and any premium incurred in connection with the renewal, extension, refinancing or refunding of
such Indebtedness), and is on terms that in the aggregate are not materially less favorable to the Borrower or such Subsidiary, including as to weighted average maturity, than the Indebtedness being renewed, extended, refinanced or refunded;

  

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 (f) Indebtedness arising from intercompany loans: (i) from the Borrower to any Subsidiary Guarantor;
(ii) from any Subsidiary of the Borrower to the Borrower or any Subsidiary Guarantor; (iii) from any Subsidiary of the Borrower that is not a Loan Party to any other Subsidiary of the Borrower that is not a Loan Party; (iv) from the
Borrower or any Subsidiary Guarantor to any Permitted Joint Venture that is a Subsidiary of the Borrower or to any Subsidiary of the Borrower that is not a Subsidiary Guarantor; or (v) from MII or any Affiliate of MII (other than the Borrower
or a Subsidiary of the Borrower) to the Borrower or any Subsidiary of the Borrower; provided, however, that (x) all such Indebtedness (other than the Indebtedness described in clause (iii) of this clause (f)) shall be
evidenced by promissory notes in the form of Exhibit J and all such notes shall be subject to a first priority Lien pursuant to the Pledge and Security Agreement if the payee is a Loan Party, (y) all such Indebtedness (other than the
Indebtedness described in clause (iii) of this clause (f)) shall be Subordinated Debt and, in the case of Indebtedness described in clause (v) only, shall not permit any cash payments of any kind prior to its maturity (unless otherwise
permitted pursuant to Section 8.5(e)), and (z) any payment by any such Subsidiary Guarantor under any guaranty of the Obligations shall result in a pro tanto reduction of the amount of any Indebtedness owed by such Subsidiary to the
Borrower or to any of its Subsidiaries for whose benefit such payment is made; provided, further that, in each case, the Investment in the intercompany loan by the lender thereof is permitted under Section 8.3
(Investments); 
  
 (g) Non-Recourse Indebtedness; 

 
 (h) Indebtedness or other liability incurred or assumed by the Borrower or
any of its Subsidiaries in connection with a Permitted Acquisition; 
  
 (i) other unsecured Indebtedness of the Borrower and its Subsidiaries in an aggregate principal amount not exceeding $20,000,000 at any time outstanding; 
  
 (j) (x) Indebtedness of the Borrower in the form of a promissory note in an aggregate principal amount of up to
$250,000,000 payable to the Asbestos PI Trust (the “Asbestos PI Trust Note”), and (y) only to the extent there have been no Borrowings of Delayed Draw Loans, the refinancing of the Asbestos PI Trust Note with the issuance of
senior (or subordinated) unsecured notes that (A) do not impose any financial covenants on the Borrower or any of its Subsidiaries that are materially more burdensome than the covenants set forth in this Agreement, (B) do not require any
scheduled payment on account of principal (whether by redemption, purchase, retirement, defeasance, set-off or otherwise) prior to the date that is six months after the Synthetic Facility Termination Date, (C) have a weighted average life to
maturity no shorter than the weighted average life to maturity of the Synthetic Facility, (D) are in an aggregate principal amount not to exceed the amounts then owing (or that may become owing) by the Borrower pursuant to the Asbestos PI Trust
Note, and that are sufficient to pay in full, retire and cancel the Asbestos PI Trust Note, plus any reasonable fees and expenses in connection with such issuance of senior (or subordinated) unsecured notes and (E) contain terms and conditions
that are customary for such transactions; provided, that prior to any such refinancing BWICO shall have entered into an agreement with the Administrative Agent, for the benefit of the Secured Parties, on terms and conditions reasonably
satisfactory to the Administrative Agent, which provides that BWICO shall not pledge or otherwise encumber the Borrower’s Stock; 
  

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 (k) Indebtedness of Foreign Subsidiaries in an aggregate principal amount not to exceed $20,000,000;

  
 (l) Indebtedness with respect to industrial revenue bonds in
an aggregate principal amount not to exceed $20,000,000; provided, any such Indebtedness shall be secured only by the property purchased, acquired or constructed with the proceeds of such Indebtedness; 
  
 (m) the Contingent MI Payment; provided, however, that such
Indebtedness shall only be paid to the extent not previously paid by MI or a Subsidiary of MI (other than the Borrower or any of its Subsidiaries) and may be paid only with the proceeds of (i) a cash capital contribution from MI or a Subsidiary
of MI (other than the Borrower or any of its Subsidiaries) to the Borrower in an aggregate amount of not less than $355,000,000 less any amounts permitted by clause (ii) below to be used to pay a portion of the Contingent MI
Payment to the extent actually paid and (ii) internally generated cash of the Borrower and its Subsidiaries plus any cash tax refunds received by the Borrower and its Subsidiaries; provided that (1) the Borrower shall have
complied with the provisions of Section 2.9(c) and Section 2.9(e), (2) the amount of the internally generated cash flow of the Borrower and its Subsidiaries so used shall not be greater than the Retained Excess Cash
Flow, (3) immediately prior to and after giving effect to the making of any such payment, no Revolving Loans shall be outstanding, and (4) after giving effect to any such payment, the aggregate unrestricted cash and Cash Equivalents of the
Borrower and its Subsidiaries will not be less than $25,000,000; and 
  
 (n) Indebtedness under or in respect of Hedging Contracts that are not speculative in nature. 
  
 Section 8.2 Liens, Etc. 
  
 The Borrower shall not, and shall not permit any of its Subsidiaries to, create or suffer to exist any Lien upon or with respect to any of their
respective properties or assets, whether now owned or hereafter acquired, or assign, or permit any of its Subsidiaries to assign, any right to receive income, except for the following: 
  
 (a) Liens created pursuant to the Loan Documents; 
  
 (b) Liens existing on the Effective Date and disclosed on Schedule 8.2 (Existing Liens); 
  
 (c) Customary Permitted Liens; 
  
 (d) Liens granted by the Borrower or any Subsidiary of the Borrower under a
Capital Lease and Liens to which any property is subject at the time, on or after the Effective Date, of the Borrower’s or such Subsidiary’s acquisition thereof in accordance with this Agreement, in each case securing Indebtedness
permitted under Section 8.1(d) (Indebtedness) and limited to the property purchased (and proceeds thereof) with the proceeds subject to such Capital Lease; 
  

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 (e) purchase money security interests in real property, improvements thereto or equipment (including any
item of equipment purchased in connection with a particular construction project that the Borrower or a Subsidiary expects to sell to its customer with respect to such project and that, pending such sale, is classified as inventory) hereafter
acquired (or, in the case of improvements, constructed) by the Borrower or any of its Subsidiaries; provided, however, that (i) such security interests secure purchase money Indebtedness permitted under Section 8.1(d)
(Indebtedness) and are limited to the property purchased with the proceeds of such purchase money Indebtedness, (ii) such security interests are incurred, and the Indebtedness secured thereby is created, within ninety days of such
acquisition or construction, (iii) the Indebtedness secured thereby does not exceed the lesser of the cost or Fair Market Value of such real property, improvements or equipment at the time of such acquisition or construction and (iv) such
security interests do not apply to any other property (other than proceeds of such acquired or constructed property) or assets of the Borrower or any of its Subsidiaries; 
  
 (f) any Lien securing the renewal, extension, refinancing or refunding of any Indebtedness secured by any Lien permitted by
clause (b), (d) or (e) above or this clause (f) without any material change in the assets subject to such Lien; 
  

(g) Liens in favor of lessors securing operating leases permitted hereunder; 
  
 (h) Liens securing Non-Recourse Indebtedness permitted under Section 8.1(g) (Indebtedness) on the assets of the
Subsidiary or Permitted Joint Venture financed by such Non-Recourse Indebtedness; 
  
 (i) Liens arising out of judgments or awards and not constituting an Event of Default under Section 9.1(g) (Events of Default); 
  
 (j) Liens encumbering inventory, work-in-process and related property in favor of customers or suppliers securing
obligations and other liabilities to such customers or suppliers (other than Indebtedness) to the extent such Liens are granted in the ordinary course of business and are consistent with past business practices; 
  
 (k) Liens encumbering assets of Foreign Subsidiaries and securing
Indebtedness permitted by Section 8.1(k); 
  
 (l)
Liens securing Indebtedness permitted by Section 8.1(l) (Indebtedness); provided, such Liens shall be limited to the property purchased, acquired or constructed with the proceeds of such Indebtedness; 
  
 (m) Liens with respect to foreign exchange netting arrangements to the extent
incurred in the ordinary course of business and consistent with past business practices; provided, that the aggregate outstanding amount of all such obligations and liabilities secured by such Liens shall not exceed $15,000,000 at any time;
and 
  

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 (n) Liens not otherwise permitted by the foregoing clauses of this Section 8.2 securing
obligations or other liabilities (other than Indebtedness) of the Borrower or any Subsidiary of the Borrower; provided, however, that the aggregate outstanding amount of all such obligations and liabilities secured by such Liens shall
not exceed $10,000,000 at any time. 
  
 Section 8.3
Investments 
  
 The Borrower shall not, and shall not
permit any of its Subsidiaries to, directly or indirectly make or maintain any Investment except for the following: 
  
 (a) Investments existing on the Effective Date and disclosed on Schedule 8.3 (Existing Investments), and any refinancings of such Investments
to the extent constituting Indebtedness otherwise permitted under Section 8.1(b), provided such refinancing complies with the provisions of Section 8.1(e); 
  
 (b) Investments in cash and Cash Equivalents; 
  
 (c) Investments in accounts, contract rights and chattel paper (each as defined in the UCC), notes receivable and similar
items arising or acquired from the sale of Inventory in the ordinary course of business consistent with the past practice of the Borrower and its Subsidiaries; 
  

(d) Investments received in settlement of amounts due to the Borrower or any Subsidiary of the Borrower effected in the ordinary course of business;

  
 (e) Investments by: (i) the Borrower in any Subsidiary
Guarantor or by any Subsidiary Guarantor in the Borrower or any other Subsidiary Guarantor; (ii) a Subsidiary of the Borrower that is not a Subsidiary Guarantor in the Borrower or any other Subsidiary of the Borrower; or (iii) the Borrower
or any Subsidiary Guarantor in a Subsidiary or an Affiliate of the Borrower that is neither a Subsidiary Guarantor nor a Permitted Joint Venture; provided, however, that the aggregate outstanding amount of all such Investments pursuant
to this clause (iii) shall not exceed $10,000,000 at any time plus an amount equal to any repayments, interest, returns, profits, distributions, income and similar amounts actually received in cash in respect of any such
Investment (which amount shall not exceed the amount of such Investment valued at the fair market value of such Investment at the time such Investment was made); 
  
 (f) loans or advances to employees of the Borrower or any of its Subsidiaries (or guaranties of loans and advances made by a
third party to employees of the Borrower or any of its Subsidiaries) in the ordinary course of business; provided, that the aggregate principal amount of all such loans and advances and guaranties of loans and advances shall not exceed
$1,000,000 at any time; 
  

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 (g) Investments constituting Guaranty Obligations permitted by Section 8.1 (Indebtedness);

  
 (h) direct or indirect Investments in Permitted Joint Ventures
engaged in an Eligible Line of Business; provided, however, that the aggregate outstanding amount of all such Investments, including Letters of Credit and other credit support obligations from the Borrower or its Subsidiaries, pursuant
to this clause (h) shall not exceed $5,000,000 at any time; 
  
 (i) Investments in connection with a Permitted Acquisition; 
  
 (j) Investments in Babcock & Wilcox Canada Ltd.; provided, however, that the aggregate outstanding amount of all such Investments pursuant to this clause (j) shall not exceed $25,000,000 at any time;

  
 (k) Investments in Babcock & Wilcox Volund ApS;
provided, however, that the aggregate outstanding amount of all such Investments pursuant to this clause (k) shall not exceed $30,000,000 at any time; and 
  
 (l) Investments not otherwise permitted hereby; provided, however, that the aggregate outstanding amount of
all such Investments shall not exceed $15,000,000 at any time. 
  
 Section 8.4 Sale of Assets 
  
 The
Borrower shall not, and shall not permit any of its Subsidiaries to, sell, convey, transfer, lease or otherwise dispose of any of their respective assets or any interest therein (including the sale or factoring at maturity of any accounts) to any
Person, or permit or suffer any other Person to acquire any interest in any of their respective assets or, in the case of any Subsidiary, issue or sell any shares of such Subsidiary’s Stock or Stock Equivalent (any such disposition in excess of
$500,000 per transaction or series of related transactions, being an “Asset Sale”) except for the following: 
  
 (a) the sale or disposition of inventory in the ordinary course of business; 
  
 (b) transfers resulting from any taking or condemnation of any property of the Borrower or any of its Subsidiaries (or, as
long as no Default or Event of Default has occurred and is continuing or would result therefrom, deed in lieu thereof); 
  
 (c) as long as no Default or Event of Default is continuing or would result therefrom, the sale or disposition of equipment that the Borrower reasonably
determines is no longer useful in its or its Subsidiaries’ business, has become obsolete, damaged or surplus or is replaced in the ordinary course of business; 
  
 (d) as long as no Default or Event of Default is continuing or would result therefrom, the sale or disposition of assets of
any Permitted Joint Venture that, both at the time of such sale and as of the Effective Date, do not constitute, in the aggregate, all or a material part of the assets of such Permitted Joint Venture; 
  

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 (e) as long as no Default or Event of Default is continuing or would result therefrom, the lease or
sublease of Real Property not constituting a sale and leaseback, to the extent not otherwise prohibited by this Agreement or the Mortgages; 
  
 (f) as long as no Default or Event of Default is continuing or would result therefrom, non-exclusive assignments and licenses of intellectual property of
the Borrower and its Subsidiaries in the ordinary course of business; 
  
 (g) as long as no Default or Event of Default is continuing or would result therefrom, discounts, adjustments, settlements and compromises of Accounts and contract claims in the ordinary course of business; 
  
 (h) any Asset Sale (i) to the Borrower or any Subsidiary Guarantor or
(ii) by any Subsidiary that is not a Loan Party to another Subsidiary that is not a Loan Party; 
  
 (i) as long as no Default or Event of Default is continuing or would result therefrom, (x) any other Asset Sale for Fair Market Value, at least 75%
of which is payable in cash or Cash Equivalents upon such sale; provided, however, that with respect to any such Asset Sale in accordance with this clause (i)(x), the aggregate consideration received for the sale of all
assets sold in accordance with this clause (i) during any Fiscal Year, including such Asset Sale, shall not exceed $10,000,000 in the aggregate, (y) the sale of Babcock & Wilcox Volund ApS for Fair Market Value and (z) the
sale of the equity interests of Ebensburg Power Company for Fair Market Value; and 
  
 (j) Asset Sales permitted by Section 8.13 (Sale/Leasebacks). 
  
 Section 8.5 Restricted Payments 
  
 The Borrower shall not, and shall not permit any of its Subsidiaries to, directly or indirectly, declare, order, pay or make any sum for any Restricted
Payment except for: 
  
 (a) Restricted Payments by the Borrower
to any Subsidiary Guarantor; 
  
 (b) Restricted Payments by
(i) any Subsidiary of the Borrower to the Borrower or any Subsidiary Guarantor or (ii) any Subsidiary that is not a Loan Party to another Subsidiary that is not a Loan Party; 
  
 (c) Restricted Payments by any Permitted Joint Venture to the Borrower or any Subsidiary Guarantor and to any other direct
or indirect holders of equity interests in such Permitted Joint Venture to the extent (i) such Restricted Payments are made pro rata among the holders of the equity interests in such Permitted Joint Venture or (ii) pursuant to the
terms of the joint venture or other distribution agreement for such Permitted Joint Venture in form and substance approved by the Administrative Agent (such approval not to be unreasonably withheld or delayed); 
  

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 (d) any redemption, retirement, sinking fund or similar payment, purchase or other acquisition for value,
direct or indirect, of any Stock or Stock Equivalents of the Borrower or any of its Subsidiaries solely with the proceeds received from the exercise of any warrant or option; and 
  
 (e) so long as no Default or Event of Default has occurred and is continuing, or would result therefrom, the Borrower may
make Restricted Payments to BWICO in an aggregate amount not to exceed the result of (x) $20,000,000 in the aggregate plus (y) (i) so long as the Leverage Ratio, pro forma for the making of such Restricted Payments, is
less than 2.00:1.00, the cumulative amount of Excess Cash Flow for all Fiscal Years completed after the Effective Date and prior to the date of determination minus (ii) the portion of such Excess Cash Flow that has been applied, or will
be required to be applied, to the prepayment of Loans in accordance with Section 2.9(c) after the Effective Date and on or prior to the date of determination minus (iii) any Restricted Payments previously made pursuant to this
Section 8.5(e)(y) minus (iv) any amount of the Contingent MI Payment made pursuant to Section 8.1(m)(ii), but excluding the amount of any cash tax refunds used in connection with such payment made pursuant to
Section 8.1(m)(ii). 
  
 Section 8.6
Restriction on Fundamental Changes 
  
 Except in
connection with a Permitted Acquisition, the Borrower shall not, and shall not permit any of its Subsidiaries to, (a) merge or consolidate with any Person (provided that, if at the time thereof and immediately after giving effect thereto
no Event of Default or Default shall have occurred and be continuing (i) any Wholly-Owned Subsidiary may merge into the Borrower so long as the Borrower is the surviving company, (ii) any Wholly-Owned Subsidiary may merge into or
consolidate with any other Wholly-Owned Subsidiary in a transaction in which the surviving entity is a Wholly-Owned Subsidiary and no person other than the Borrower or a Wholly-Owned Subsidiary receives any consideration (provided that if any
party to any such transaction is a Loan Party, the surviving entity of such transaction shall be a Loan Party) and (iii) any Subsidiary of the Borrower may merge with another person in a transaction constituting an Asset Sale permitted
hereunder), (b) acquire all or substantially all of the Stock or Stock Equivalents of any Person, (c) acquire all or substantially all of the assets of any Person or all or substantially all of the assets constituting what is known by the
Borrower to be the business of a division, branch or other unit operation of any Person, (d) enter into any joint venture or partnership with any Person that is not a Loan Party other than any Permitted Joint Venture or (e) acquire or
create any Subsidiary unless, after giving effect to such acquisition or creation, (i) such Subsidiary is a Permitted Joint Venture or a Wholly-Owned Subsidiary of the Borrower, (ii) the Borrower is in compliance with Section 7.11
(Additional Collateral and Guaranties) and (iii) the Investment in such Subsidiary is permitted under Section 8.3 (Investments). 
  

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 Section 8.7 Change in Nature of Business 
  
 The Borrower shall not, and shall not permit any of its Subsidiaries to,
engage in any business other than the Eligible Line of Business. 
  
 Section 8.8 Transactions with Affiliates 
  
 The Borrower shall not, and shall not permit any of its Subsidiaries to, except as otherwise expressly permitted herein, do any of the following: (a) make any Investment in an Affiliate of the Borrower that is not, or does not thereby
or in connection therewith become, a Subsidiary of the Borrower or a Permitted Joint Venture, (b) transfer, sell, lease, assign or otherwise dispose of any asset to any Affiliate of the Borrower that is not, or does not thereby or in connection
therewith become, a Subsidiary of the Borrower or a Permitted Joint Venture, (c) merge into or consolidate with or purchase or acquire assets from any Affiliate of the Borrower that is not, or does not thereby or in connection therewith become,
a Subsidiary of the Borrower, (d) repay any Indebtedness to any Affiliate of the Borrower that is not, or does not thereby or in connection therewith become, a Subsidiary of the Borrower, (e) enter into any other transaction (including any
retention bonus or other compensation arrangement) directly or indirectly with or for the benefit of any Affiliate of the Borrower that is not a Guarantor (including guaranties and assumptions of obligations of any such Affiliate) or (f) make
any management services payments pursuant to the Management Services Agreement as in effect on the date hereof in an amount in excess of the amounts required to be paid thereunder, except (i) in each case (excluding clause (f)) transactions in
the ordinary course of business on a basis no less favorable to the Borrower or such Subsidiary as would be obtained in a comparable arm’s length transaction with a Person not an Affiliate and (ii) payments and releases expressly required
or authorized to be made by the Borrower or one of its Subsidiaries pursuant to Section 5.2 of the Non-Debtor Affiliate Settlement Agreement. 
  
 Section 8.9 Restrictions on Subsidiary Distributions; No New Negative Pledge 
  
 Other than pursuant to the Loan Documents and any agreements governing any
Non-Recourse Indebtedness, or any purchase money Indebtedness or Capital Lease Obligations permitted by Section 8.1(b), (d) or (e) (Indebtedness) (in the case of any such purchase money Indebtedness or Capital Lease
Obligations, so long as any prohibition or limitation is only effective against the assets financed thereby), the Borrower shall not, and shall not permit any of its Subsidiaries to, (a) other than for Permitted Joint Ventures, agree to enter
into or suffer to exist or become effective any consensual encumbrance or consensual restriction of any kind on the ability of such Subsidiary to pay dividends or make any other distribution or transfer of funds or assets or make loans or advances
to or other Investments in, or pay any Indebtedness owed to, the Borrower or any other Subsidiary of the Borrower or (b) other than customary non-assignment provisions in contracts entered into in the ordinary course of business, enter into or
permit to exist or become effective any enforceable agreement prohibiting or limiting the ability of the Borrower or any Subsidiary to create, incur, assume or permit 

  

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to exist any Lien upon any of its property, assets or revenues, whether now owned or hereafter acquired, to secure the Obligations, including any agreement
requiring any other Indebtedness or Contractual Obligation to be equally and ratably secured with the Obligations. 
  
 Section 8.10 Modification of Constituent Documents 
  
 The Borrower shall not, and shall not permit any of its Subsidiaries to, change its capital structure (including the terms
of its outstanding Stock) or otherwise amend its Constituent Documents, except for changes and amendments that do not materially and adversely affect the rights and privileges of the Borrower or any of its Subsidiaries and do not materially and
adversely affect the interests of the Secured Parties under the Loan Documents or the rights and interests of any of them in the Collateral. 
  
 Section 8.11 Accounting Changes; Fiscal Year 
  

The Borrower shall not, and shall not permit any of its Subsidiaries to, (a) make any material change in its accounting treatment and reporting
practices or tax reporting treatment, except as required by GAAP or any Requirement of Law and disclosed to the Lenders and the Administrative Agent or (b) change its Fiscal Year. 
  
 Section 8.12 Margin Regulations 
  
 The Borrower shall not, and shall not permit any of its Subsidiaries to, use all or any portion of the proceeds of any
credit extended hereunder to purchase or carry margin stock (within the meaning of Regulation U of the Federal Reserve Board) in contravention of Regulation U of the Federal Reserve Board. 
  
 Section 8.13 Sale/Leasebacks 
  
 The Borrower shall not, and shall not permit any of its Subsidiaries to,
enter into any sale and leaseback transaction unless the proceeds of such transaction received by the Loan Parties equal the Fair Market Value of the properties subject to such transaction and, after giving effect to such sale and leaseback
transaction, the aggregate Fair Market Value of all properties covered at any one time by all sale and leaseback transactions permitted hereunder (other than any sale and leaseback transaction of property entered into within 90 days of the
acquisition of such property) does not exceed $20,000,000. 
  
 Section 8.14 Capital Expenditures 
  
 The Borrower shall not make or incur, or permit to be made or incurred, Capital Expenditures during each of the Fiscal Years set forth below to be, in the aggregate, in excess of the maximum amount set forth below for such Fiscal Year:

  

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	 FISCAL YEAR

	  	 MAXIMUM CAPITAL
 EXPENDITURES

	 2006
	  	$ 35,000,000
	 2007 and each Fiscal Year thereafter
	  	$ 30,000,000

  
 ; provided,
however, that to the extent the actual amount of such Capital Expenditures for any such Fiscal Year is less than the maximum amount set forth above for such Fiscal Year (provided that actual Capital Expenditures in any Fiscal Year shall be
first applied against any carryover from the prior Fiscal Year)), 100% of the difference between such stated maximum amount and such actual Capital Expenditures shall be available for additional Capital Expenditures in the next succeeding Fiscal
Year (but shall not be available in any Fiscal Year thereafter). 
  
 Section 8.15 Cancellation of Indebtedness Owed to It 
  
 The Borrower shall not, and shall not permit any of its Subsidiaries to, cancel any material claim or Indebtedness owed to any of them except in the ordinary course of business. 
  
 Section 8.16 No Speculative Transactions 
  
 The Borrower shall not, and shall not permit any of its Subsidiaries to,
engage in any material speculative transaction or in any material transaction involving the entry into of Hedging Contracts by such Person except for the sole purpose of hedging in the normal course of business. 
  
 Section 8.17 Contingent MI Payment. 
  
 Except as contemplated by Section 8.1(m), the Borrower shall
not, and shall not permit any of its Subsidiaries to, directly or indirectly, make the Contingent MI Payment. 
  
 Section 8.18 Post-Termination Benefits 
  
 Except to the extent required under Section 4980B of the Code or similar state laws, the Borrower shall not, and shall not permit any of its
Subsidiaries to, without the consent of the Requisite Lenders, adopt any Employee Benefit Plan that provides health or welfare benefits (through the purchase of insurance or otherwise) to any retired or former employees, consultants or directors (or
their dependents) of the Borrower or any of its Subsidiaries. 
  

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 ARTICLE IX 
  
 EVENTS OF DEFAULT 
  
 Section 9.1 Events of Default 
  
 Each of the following events shall be an Event of Default: 
  
 (a) the Borrower shall fail to pay any principal of any Loan or any
Reimbursement Obligation when the same becomes due and payable; or 
  
 (b) the Borrower shall fail to pay any interest on any Loan, any fee under any of the Loan Documents or any other Obligation (other than one referred to in clause (a) above) and such non-payment continues for a period of three
Business Days after the due date therefor; or 
  
 (c) any
representation or warranty made or deemed made by any Loan Party in any Loan Document shall prove to have been incorrect in any material respect when made or deemed made; or 
  
 (d) any Loan Party shall fail to perform or observe (i) any term, covenant or agreement contained in Article V
(Financial Covenants), 6.3 (Default Notices), 7.1 (Preservation of Corporate Existence, Etc.), 7.6 (Access) or Article VIII (Negative Covenants) or (ii) any other term, covenant or agreement contained in this Agreement or in any other
Loan Document if such failure under this clause (ii) shall remain unremedied for 30 days after the earlier of (A) the date on which a Responsible Officer of the Borrower obtains actual knowledge of such failure and (B) the date on
which written notice thereof shall have been given to the Borrower by the Administrative Agent, any Lender or any Synthetic Investor; or 
  
 (e) (i) the Borrower or any of its Material Subsidiaries shall fail to make any payment on any recourse Indebtedness of the Borrower or any such
Material Subsidiary (other than the Obligations) or any Guaranty Obligation in respect of Indebtedness of any other Person, and, in each case, such failure relates to Indebtedness having a principal amount of $10,000,000 or more when the same
becomes due and payable (whether by scheduled maturity, required prepayment, acceleration, demand or otherwise), (ii) any other event shall occur or condition shall exist under any agreement or instrument relating to any such Indebtedness, if
the effect of such event or condition is to accelerate, or to permit the acceleration of, the maturity of such Indebtedness or (iii) any such Indebtedness shall become or be declared to be due and payable, or required to be prepaid or
repurchased (other than by a regularly scheduled required prepayment), prior to the stated maturity thereof; provided that clauses (ii) and (iii) above shall not apply to secured Indebtedness that becomes due as a result of the voluntary
sale or transfer of the property or assets securing such Indebtedness; or 
  
 (f) (i) the Borrower or any of its Material Subsidiaries shall generally not pay its debts as such debts become due, shall admit in writing its inability to pay its debts generally or shall make a general
assignment for the benefit of creditors, (ii) any 

  

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proceeding shall be instituted by or against the Borrower or any of its Material Subsidiaries seeking to adjudicate it a bankrupt or insolvent, or seeking
liquidation, winding up, reorganization, arrangement, adjustment, protection, relief or composition of it or its debts, under any Requirement of Law relating to bankruptcy, insolvency or reorganization or relief of debtors, or seeking the entry of
an order for relief or the appointment of a custodian, receiver, trustee or other similar official for it or for any substantial part of its property; provided, however, that, in the case of any such proceedings instituted against the
Borrower or any of its Material Subsidiaries (but not instituted by the Borrower or any of its Subsidiaries), either such proceedings shall remain undismissed or unstayed for a period of 60 days or more or an order or decree approving or ordering
any of the foregoing shall be entered, or (iii) the Borrower or any of its Material Subsidiaries shall take any corporate action to authorize any action set forth in clauses (i) or (ii) above; or 
  
 (g) (i) except with respect to the CITGO Settlement, one or more
judgments, injunctions or orders (or other similar process) involving, in the case of a money judgment, an amount in excess of $10,000,000 in the aggregate (to the extent not covered by insurance as to which a solvent and unaffiliated insurance
company has acknowledged coverage), shall be rendered against one or more of any Loan Party and its Subsidiaries and shall remain unpaid and either (x) enforcement proceedings shall have been commenced by any creditor upon such judgment,
injunction or order or (y) there shall be any period of 30 consecutive days during which a stay of enforcement of such judgment, injunction or order, by reason of a pending appeal or otherwise, shall not be in effect or (ii) the Borrower
or any of its applicable Subsidiaries shall fail in any material respect to comply with the terms and conditions of CITGO Settlement; or 
  
 (h) (i) one or more ERISA Events shall occur and the amount of all liabilities and deficiencies resulting therefrom imposed on or which could
reasonably be expected to be imposed directly on the Borrower, any of its Subsidiaries or any Guarantor, whether or not assessed, when taken together with amounts of all such liabilities and deficiencies for all other such ERISA Events exceeds
$10,000,000 in the aggregate, or (ii) there exists any fact or circumstance that reasonably could be expected to result in the imposition of a Lien or security interest under Section 412(n) of the Code or under ERISA; or 
  
 (i) any provision of any Collateral Document or the Holdings Guaranty after
delivery thereof pursuant to this Agreement or any other Loan Document shall for any reason, except as permitted by the Loan Documents, cease to be valid and binding on, or enforceable against, any Loan Party which is a party thereto, or any Loan
Party shall so state in writing; or 
  
 (j) any Collateral
Document shall for any reason fail or cease to create a valid Lien on any Collateral with an aggregate value of $5,000,000 or more purported to be covered thereby or, except as permitted by the Loan Documents, such Lien shall fail or cease to be a
perfected and first priority Lien or any Loan Party shall so state in writing; or 
  

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 (k) there shall occur any Change of Control; or 
  
 (l) MI shall fail, and shall fail to cause one of its Subsidiaries (excluding
the Borrower and any of its Subsidiaries except as expressly permitted by Section 8.1(m)), to make any required payments to the Asbestos PI Trust in accordance with the provisions of the Plan of Reorganization, and such failure continues
until the earlier to occur of (i) a period of ten days after the due date thereof or (ii) the making of a demand or taking of other enforcement action with respect to such payment obligations by or on behalf of the Asbestos PI Trust;
provided, that the foregoing shall no longer constitute an Event of Default if such failure to pay any such required payments is cured by MI or one of its Subsidiaries (other than the Borrower or any of its Subsidiaries except as expressly
contemplated by Section 8.1(m)). 
  
 Section 9.2 Remedies 
  
 During the
continuance of any Event of Default, the Administrative Agent (a) may, and, at the request of the Requisite Lenders, shall, by notice to the Borrower declare that all or any portion of the Commitments be terminated, whereupon the obligation of
each Lender to make any Loan and each Issuer to Issue any Letter of Credit shall immediately terminate and (b) may and, at the request of the Requisite Lenders, shall, by notice to the Borrower, declare the Loans, all interest thereon and all
other amounts and Obligations payable under this Agreement to be forthwith due and payable, whereupon the Loans, all such interest and all such amounts and Obligations shall become and be forthwith due and payable, without presentment, demand,
protest or further notice of any kind, all of which are hereby expressly waived by the Borrower; provided, however, that upon the occurrence of any Event of Default specified in Section 9.1(f) (Events of Default) with
respect to the Borrower, (x) the Commitments of each Lender to make Loans and the commitments of each Lender and Issuer to Issue or participate in Letters of Credit shall each automatically be terminated and (y) the Loans, all such
interest and all such amounts and Obligations shall automatically become and be due and payable, without presentment, demand, protest or any notice of any kind, all of which are hereby expressly waived by the Borrower. In addition to the remedies
set forth above, the Administrative Agent may exercise any remedies provided for by the Collateral Documents in accordance with the terms thereof or any other remedies provided by applicable law. 
  
 Section 9.3 Actions in Respect of Letters of Credit

  
 Upon the Revolving Facility Termination Date or the
Synthetic Facility Termination Date, as applicable, or as may be required by Section 2.9(d) (Mandatory Prepayments), the Borrower shall pay to the Administrative Agent in immediately available funds at the Administrative Agent’s
office referred to in Section 11.8 (Notices, Etc.), for deposit in a Cash Collateral Account, an amount equal to 105% of the sum of all outstanding Letter of Credit Obligations with respect to Revolving Letters of Credit and/or Synthetic
Letters of Credit, as the case may be. The Administrative Agent may, from time to time after funds are deposited in any Cash Collateral Account with respect to Letters of Credit (and while an Event of Default has occurred and is continuing or after

  

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the acceleration of the Loans), apply funds then held in such Cash Collateral Account to the payment of any amounts, in accordance with
Section 2.13(f) (Payments and Computations), as shall have become or shall become due and payable by the Borrower to the Issuers or Lenders in respect of the Letter of Credit Obligations. The Administrative Agent shall promptly give
written notice of any such application; provided, however, that the failure to give such written notice shall not invalidate any such application. 
  

ARTICLE X 
  
 THE ADMINISTRATIVE AGENT, THE FRONTING LENDER AND OTHER
AGENTS 
  
 Section 10.1
Authorization and Action 
  
 (a) Each Lender, each
Synthetic Investor and each Issuer hereby appoints Credit Suisse as the Administrative Agent hereunder, and each Lender, each Synthetic Investor and each Issuer authorizes the Administrative Agent to take such action as agent on its behalf and to
exercise such powers under this Agreement and the other Loan Documents as are delegated to the Administrative Agent under such agreements and to exercise such powers as are reasonably incidental thereto. Without limiting the foregoing, each Lender,
each Synthetic Investor and each Issuer hereby authorizes the Administrative Agent to execute and deliver, and to perform its obligations under, each of the Loan Documents to which the Administrative Agent is a party, to exercise all rights, powers
and remedies that the Administrative Agent may have under such Loan Documents and, in the case of the Collateral Documents, to act as Collateral Agent for the Lenders, the Synthetic Investors, the Issuers and the other Secured Parties under such
Collateral Documents. 
  
 (b) As to any matters not expressly
provided for by this Agreement and the other Loan Documents (including enforcement or collection), neither the Administrative Agent, the Collateral Agent nor the Fronting Lender shall be required to exercise any discretion or take any action, but
shall be required to act or to refrain from acting (and shall be fully protected in so acting or refraining from acting) upon the instructions of the Requisite Lenders, and such instructions shall be binding upon all Lenders, each Issuer and all
Synthetic Investors; provided, however, that none of the Administrative Agent, the Collateral Agent nor the Fronting Lender shall be required to take any action that (i) the Administrative Agent, the Collateral Agent or, as the
case may be, the Fronting Lender in good faith believes exposes it to personal liability unless the Administrative Agent, the Collateral Agent or, as the case may be, the Fronting Lender receives an indemnification satisfactory to it from the
Lenders, the Issuers and the Synthetic Investors with respect to such action or (ii) is contrary to this Agreement, any other Loan Document or any applicable Requirement of Law. Upon request, the Administrative Agent agrees to give to each
Lender, each Synthetic Investor and each Issuer prompt notice of each notice given to it by any Loan Party pursuant to the terms of this Agreement or the other Loan Documents. 
  

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 (c) In performing its functions and duties hereunder and under the other Loan Documents, the
Administrative Agent is acting solely on behalf of the Lenders, the Synthetic Investors and the Issuers and its duties are entirely administrative in nature. The Administrative Agent does not assume and shall not be deemed to have assumed any
obligation other than as expressly set forth herein and in the other Loan Documents or any other relationship as the agent, fiduciary or trustee of or for any Lender, Issuer, Synthetic Investor or holder of any other Obligation. The Administrative
Agent may perform any of its duties under any Loan Document by or through its agents or employees. 
  
 (d) In performing its functions and duties hereunder and under the other Loan Documents, the Collateral Agent is acting solely on behalf of the Secured
Parties. The Collateral Agent does not assume and shall not be deemed to have assumed any obligation other than as expressly set forth herein and in the other Loan Documents or any other relationship as the agent, fiduciary or trustee of or for any
Lender, Issuer, Synthetic Investor or holder of any other Obligation. The Collateral Agent may perform any of its duties under any Loan Document by or through its agents or employees. 
  
 (e) In performing its functions and duties hereunder and under the other Loan Documents, the Fronting Lender is acting
solely on behalf of the Synthetic Investors and its duties are entirely administrative in nature. The Fronting Lender does not assume and shall not be deemed to have assumed any obligation other than as expressly set forth herein and in the other
Loan Documents or any other relationship as the agent, fiduciary or trustee of or for any Lender, Issuer, Synthetic Investor or holder of any other Obligation. The Fronting Lender may perform any of its duties under any Loan Document by or through
its agents or employees. 
  
 Section 10.2
Administrative Agent’s and Fronting Lender’s Reliance, Etc. 
  
 (a) None of the Administrative Agent, any of its Affiliates or any of their respective directors, officers, agents or employees shall be liable for any action taken or omitted to be taken by it, him, her or them under
or in connection with this Agreement or the other Loan Documents, except for its, his, her or their own gross negligence or willful misconduct. Without limiting but subject to the foregoing, the Administrative Agent (a) may treat the payee of
any Note as its holder until such Note has been assigned in accordance with Section 11.2 (Assignments and Participations), (b) may rely on the Register to the extent set forth in Section 11.2(c) (Assignments and
Participations), (c) may consult with legal counsel (including counsel to the Borrower or any other Loan Party), independent public accountants and other experts selected by it and shall not be liable for any action taken or omitted to be
taken in good faith by it in accordance with the advice of such counsel, accountants or experts, (d) makes no warranty or representation to any Lender, Issuer or Synthetic Investor and shall not be responsible to any Lender, Issuer or Synthetic
Investor for any statements, warranties or representations made by or on behalf of the Borrower or any of its Subsidiaries or the Fronting Lender in or in connection with this Agreement or any other Loan Document, (e) shall not have any duty to
ascertain or to inquire either as to the performance or 

  

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observance of any term, covenant or condition of this Agreement or any other Loan Document, as to the financial condition of any Loan Party or as to the
existence or possible existence of any Default or Event of Default, (f) shall not be responsible to any Lender, Issuer or Synthetic Investor for the due execution, legality, validity, enforceability, genuineness, sufficiency or value of, or the
attachment, perfection or priority of any Lien created or purported to be created under or in connection with, this Agreement, any other Loan Document or any other instrument or document furnished pursuant hereto or thereto and (g) shall incur
no liability under or in respect of this Agreement or any other Loan Document by acting upon any notice, consent, certificate or other instrument or writing (which writing may be a telecopy or, if consented to by the Administrative Agent, electronic
mail) or any telephone message believed by it to be genuine and signed or sent by the proper party or parties. 
  
 (b) None of the Fronting Lender, any of its Affiliates or any of their respective directors, officers, agents or employees shall be liable for any action
taken or omitted to be taken by it, him, her or them under or in connection with this Agreement or the other Loan Documents, except for its, his, her or their own gross negligence or willful misconduct. Without limiting the foregoing, the Fronting
Lender (a) may consult with legal counsel (including counsel to the Borrower, any other Loan Party or any Synthetic Investor), independent public accountants and other experts selected by it and shall not be liable for any action taken or
omitted to be taken in good faith by it in accordance with the advice of such counsel, accountants or experts, (b) makes no warranty or representation to any Lender, Issuer or Synthetic Investor and shall not be responsible to any Lender,
Issuer or Synthetic Investor for any statements, warranties or representations made by or on behalf of the Borrower or any of its Subsidiaries in or in connection with this Agreement or any other Loan Document, (c) shall not have any duty to
ascertain or to inquire either as to the performance or observance of any term, covenant or condition of this Agreement or any other Loan Document, as to the financial condition of any Loan Party or as to the existence or possible existence of any
Default or Event of Default, (d) shall not be responsible to any Lender, Issuer or Synthetic Investor for the due execution, legality, validity, enforceability, genuineness, sufficiency or value of, or the attachment, perfection or priority of
any Lien created or purported to be created under or in connection with, this Agreement, any other Loan Document or any other instrument or document furnished pursuant hereto or thereto and (e) shall incur no liability under or in respect of
this Agreement or any other Loan Document by acting upon any notice, consent, certificate or other instrument or writing (which writing may be a telecopy or, if consented to by the Administrative Agent, electronic mail) or any telephone message
believed by it to be genuine and signed or sent by the proper party or parties. 
  
 Section 10.3 The Agents and the Fronting Lender Individually 
  
 With respect to its Ratable Portion, each Agent that is a Lender shall have and may exercise the same rights and powers hereunder and is subject to the
same obligations and liabilities as and to the extent set forth herein for any other Lender. The terms “Lenders”, “Requisite Lenders” and any similar terms shall, unless the context clearly otherwise indicates,
include, without limitation, (a) each Agent in its individual capacity as a Lender or as one of the Requisite Lenders and (b) the Fronting Lender in its 

  

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individual capacity as a Lender or as one of the Requisite Lenders. Each Agent and its respective Affiliates may accept deposits from, lend money to, and
generally engage in any kind of banking, trust or other business with, any Loan Party as if such Agent were not acting as Agent or, as the case may be, the Fronting Lender. 
  
 Section 10.4 Lender Credit Decision 
  
 Each Lender, each Issuer and each Synthetic Investor acknowledges that it shall, independently and without reliance upon the
Administrative Agent, the Fronting Lender or any other Lender or Synthetic Investor conduct its own independent investigation of the financial condition and affairs of the Borrower, each other Loan Party and each Revolving Lender, in connection with
the making and continuance of the Loans and with the issuance of the Letters of Credit. Each Lender, each Issuer and each Synthetic Investor also acknowledges that it shall, independently and without reliance upon the Administrative Agent, the
Fronting Lender or any other Lender and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under this Agreement or other Loan Documents.

  
 Section 10.5 Indemnification 

 
 (a) Each Lender agrees to indemnify the Administrative Agent, Collateral
Agent and each of their respective Affiliates, and each of their respective directors, officers, employees, agents and advisors (to the extent not reimbursed by the Borrower), from and against such Lender’s aggregate Ratable Portion of any and
all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses and disbursements (including fees, expenses and disbursements of financial and legal advisors) of any kind or nature whatsoever that may be imposed
on, incurred by, or asserted against, the Administrative Agent, the Collateral Agent or any of their respective Affiliates, directors, officers, employees, agents and advisors in any way relating to or arising out of this Agreement or the other Loan
Documents or any action taken or omitted by the Administrative Agent or Collateral Agent under this Agreement or the other Loan Documents; provided, however, that no Lender shall be liable for any portion of such liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements resulting from the Administrative Agent’s, Collateral Agent’s or such Affiliate’s gross negligence or willful misconduct. Without
limiting the foregoing, each Lender agrees to reimburse the Administrative Agent or the Collateral Agent, as applicable, promptly upon demand for its ratable share of any out-of-pocket expenses (including fees, expenses and disbursements of
financial and legal advisors) incurred by the Administrative Agent or the Collateral Agent, as applicable, in connection with the preparation, execution, delivery, administration, modification, amendment or enforcement (whether through negotiations,
legal proceedings or otherwise) of, or legal advice in respect of its rights or responsibilities under, this Agreement or the other Loan Documents, to the extent that the Administrative Agent or the Collateral Agent, as applicable, is not reimbursed
for such expenses by the Borrower or any other Loan Party. 
  

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 (b) Each Synthetic Investor agrees to indemnify the Fronting Lender and each of its Affiliates, and each
of their respective directors, officers, employees, agents and advisors (to the extent not reimbursed by the Borrower), from and against such Synthetic Investor’s Ratable Portion of any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses and disbursements (including fees, expenses and disbursements of financial and legal advisors) of any kind or nature whatsoever that may be imposed on, incurred by, or asserted against, the
Fronting Lender or any of its Affiliates, directors, officers, employees, agents and advisors in any way relating to or arising out of this Agreement or the other Loan Documents or any action taken or omitted by the Fronting Lender under this
Agreement or the other Loan Documents; provided, however, that no Synthetic Investor shall be liable for any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements resulting from the Fronting Lender’s or such Affiliate’s gross negligence or willful misconduct. Without limiting the foregoing, each Synthetic Investor agrees to reimburse the Fronting Lender promptly upon demand for its
ratable share of any out-of-pocket expenses (including fees, expenses and disbursements of financial and legal advisors) incurred by the Fronting Lender in connection with the preparation, execution, delivery, administration, modification, amendment
or enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal advice in respect of its rights or responsibilities under, this Agreement or the other Loan Documents, to the extent that the Fronting Lender is not
reimbursed for such expenses by the Borrower or any other Loan Party. 
  
 Section 10.6 Successor Administrative Agent 
  
 The Administrative Agent may resign at any time by giving written notice thereof to the Lenders, the Synthetic Investors and the Borrower. Upon any such resignation, the Requisite Lenders shall have the right to
appoint a successor Administrative Agent. If no successor Administrative Agent shall have been so appointed by the Requisite Lenders, and shall have accepted such appointment, within 30 days after the retiring Administrative Agent’s giving of
notice of resignation, then the retiring Administrative Agent may, on behalf of the Lenders and the Synthetic Investors, appoint a successor Administrative Agent, selected from among the Lenders and the Synthetic Investors. In either case, such
appointment shall be subject to the prior written approval of the Borrower (which approval may not be unreasonably withheld but shall not be required upon the occurrence and during the continuance of an Event of Default). Upon the acceptance of any
appointment as Administrative Agent by a successor Administrative Agent, such successor Administrative Agent shall succeed to, and become vested with, all the rights, powers, privileges and duties of the retiring Administrative Agent, and the
retiring Administrative Agent shall be discharged from its duties and obligations under this Agreement and the other Loan Documents. Prior to any retiring Administrative Agent’s resignation hereunder as Administrative Agent, the retiring
Administrative Agent shall take such action as may be reasonably necessary to assign to the successor Administrative Agent its rights as Administrative Agent under the Loan Documents. After such resignation, the retiring Administrative Agent shall
continue to have the benefit of this Article X as to any actions taken or omitted to be taken by it while it was Administrative Agent under this Agreement and the other Loan Documents. 
  

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 Section 10.7 Successor Fronting Lender 
  
 The Fronting Lender may at any time resign by giving written notice thereof
to the Synthetic Investors and the Borrower. Upon any such resignation, the Synthetic Investors having outstanding deposits in Credit-Linked Deposit Accounts and Sub-Accounts under the Synthetic Facility shall have the right to appoint by a simple
majority vote (based on the aggregate amount of Credit-Linked Deposits) a successor Fronting Lender. If no successor Fronting Lender shall have been so appointed by the Synthetic Investors, and shall have accepted such appointment, within 30 days
after the retiring Fronting Lender’s giving of notice of resignation, then the Administrative Agent may, on behalf of the Lenders and Synthetic Investors, appoint a successor Fronting Lender, selected from among the Lenders and the Synthetic
Investors. In either case, such appointment shall be subject to the prior written approval of (i) a majority of the Synthetic Investors (based on the aggregate amount of Credit-Linked Deposits) and (ii) unless an Event of Default has
occurred and is continuing, the Borrower (such approval not to be unreasonably withheld or delayed). Upon the acceptance of any appointment as Fronting Lender by a successor Fronting Lender, such successor Fronting Lender shall (a) obtain an
assignment of the rights and obligations of the Fronting Lender in respect of the Credit-Linked Deposit Account and the Credit-Linked Deposits and (b) obtain an assignment of the Commitment of the Fronting Lender hereunder through an Assignment
and Acceptance and, thereafter, shall succeed to, and become vested with, all the rights, powers, privileges and duties of the retiring Fronting Lender, and the retiring Fronting Lender shall be discharged from its duties and obligations under this
Agreement and the other Loan Documents, and in respect of the Credit-Linked Deposit Account and the Credit-Linked Deposits. The occurrence and effectiveness of the events described in clauses (a) and (b) above shall be a
condition precedent to the effectiveness of any resignation of the Fronting Lender. After any effective resignation, the retiring Fronting Lender shall continue to have the benefit of this Article X as to any actions taken or omitted to
be taken by it while it was Fronting Lender under this Agreement and the other Loan Documents, and in respect of the Credit-Linked Deposit Account and the Credit-Linked Deposits. 
  
 Section 10.8 Concerning the Collateral and the Collateral Documents 
  
 (a) Each Lender, each Synthetic Investor and each Issuer agrees that any
action taken by the Administrative Agent, the Collateral Agent, the Fronting Lender or the Requisite Lenders (or, where required by the express terms of this Agreement, a different proportion of the Lenders or Synthetic Investors) in accordance with
the provisions of this Agreement or the other Loan Documents, and the exercise by the Administrative Agent, the Collateral Agent, the Fronting Lender or the Requisite Lenders (or, where so required, such other proportion) of the powers set forth
herein or therein, together with such other powers as are reasonably incidental thereto, shall be deemed authorized by and shall be binding upon all of the Lenders, Synthetic Investors, Issuers and other Secured Parties. Without limiting the
generality of the foregoing, the Administrative Agent and Collateral Agent, as applicable, shall have the sole and exclusive right and authority to (i) act as the disbursing and collecting agent for the 

  

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Lenders, the Synthetic Investors and the Issuers with respect to all payments and collections arising in connection herewith and with the Collateral
Documents, (ii) execute and deliver each Collateral Document and accept delivery of each such agreement delivered by the Borrower or any of its Subsidiaries, (iii) act as collateral agent for the Lenders, the Synthetic Investors, the
Issuers and the other Secured Parties for purposes of the perfection of all security interests and Liens created by such agreements and all other purposes stated therein, (iv) manage, supervise and otherwise deal with the Collateral,
(v) take such action as is necessary or desirable to maintain the perfection and priority of the security interests and Liens created or purported to be created by the Collateral Documents and (vi) except as may be otherwise specifically
restricted by the terms hereof or of any other Loan Document, exercise all remedies given to the Administrative Agent, the Collateral Agent, the Lenders, the Synthetic Investors, the Issuers and the other Secured Parties with respect to the
Collateral under the Loan Documents relating thereto, applicable law or otherwise. 
  
 (b) Each of the Lenders, the Synthetic Investors and the Issuers hereby directs, in accordance with the terms hereof, the Collateral Agent to release (or, in the case of clause (ii) below, release
or subordinate) any Lien held by the Collateral Agent for the benefit of the Secured Parties against any of the following: 
  
 (i) all of the Collateral, upon termination of the Commitments and payment and satisfaction in full of all Loans, Reimbursement
Obligations and all other Obligations that the Collateral Agent has been notified in writing are then due and payable (and, in respect of contingent Letter of Credit Obligations, with respect to which cash collateral has been deposited or a back-up
letter of credit has been issued, in either case on terms reasonably satisfactory to the Administrative Agent and the applicable Issuers); 
  
 (ii) any assets that are subject to a Lien permitted by Section 8.2(d), (e) or (f) (Liens, Etc.); and

  
 (iii) if such sale or disposition is
permitted by this Agreement (or permitted pursuant to a waiver or consent of a transaction otherwise prohibited by this Agreement), any Collateral sold or disposed of by a Loan Party and/or the guaranty of any Subsidiary Guarantor which has been
voluntarily sold or disposed of by a Loan Party. 
  
 Each of the Lenders, the
Synthetic Investors and the Issuers hereby directs the Collateral Agent to execute and deliver or file such termination and partial release statements and do such other things as are necessary to release Liens to be released pursuant to this
Section 10.8 promptly upon the effectiveness of any such release. 
  
 Section 10.9 Collateral Matters Relating to Related Obligations 
  
 The benefit of the Loan Documents and of the provisions of this Agreement relating to the Collateral shall extend to and be available in respect of any
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Agent, the Collateral Agent, the Lenders, the Synthetic Investors and the Issuers (collectively, “Related Obligations”) solely on the
condition and understanding, as among the Collateral Agent and all Secured Parties, that (a) the Related Obligations shall be entitled to the benefit of the Loan Documents and the Collateral to the extent expressly set forth in this Agreement
and the other Loan Documents and to such extent the Collateral Agent shall hold, and have the right and power to act with respect to, the BWICO Guaranty, the Pledge and Security Agreement and the Collateral on behalf of and as agent for the holders
of the Related Obligations, but the Collateral Agent is otherwise acting solely as agent for the Lenders, the Synthetic Investors and the Issuers and shall have no fiduciary duty, duty of loyalty, duty of care, duty of disclosure or other obligation
whatsoever to any holder of Related Obligations, (b) all matters, acts and omissions relating in any manner to the BWICO Guaranty, the Pledge and Security Agreement, the Collateral, or the omission, creation, perfection, priority, abandonment
or release of any Lien, shall be governed solely by the provisions of this Agreement and the other Loan Documents and no separate Lien, right, power or remedy shall arise or exist in favor of any Secured Party under any separate instrument or
agreement or in respect of any Related Obligation, (c) each Secured Party shall be bound by all actions taken or omitted, in accordance with the provisions of this Agreement and the other Loan Documents, by the Administrative Agent, the
Collateral Agent and the Requisite Lenders, each of whom shall be entitled to act at its sole discretion and exclusively in its own interest given its own Commitments and its own interest in the Loans, Letter of Credit Obligations and other
Obligations to it arising under this Agreement or the other Loan Documents, without any duty or liability to any other Secured Party or as to any Related Obligation and without regard to whether any Related Obligation remains outstanding or is
deprived of the benefit of the Collateral or becomes unsecured or is otherwise affected or put in jeopardy thereby, (d) no holder of Related Obligations and no other Secured Party (except the Administrative Agent, the Collateral Agent, the
Lenders, the Synthetic Investors and the Issuers, to the extent set forth in this Agreement) shall have any right to be notified of, or to direct, require or be heard with respect to, any action taken or omitted in respect of the Collateral or under
this Agreement or the Loan Documents and (e) no holder of any Related Obligation shall exercise any right of setoff, banker’s lien or similar right except as expressly provided in Section 11.6 (Right of Set-off). 
  
 Section 10.10 Other Agents 
  
 (a) Each Lender hereby appoints Credit Suisse Securities (USA) LLC as
“Arranger.” Notwithstanding anything to the contrary contained in this Agreement, Credit Suisse Securities (USA) LLC is designated as “Arranger” for title purposes only and, in such capacity, shall not have any
obligations or duties whatsoever under this Agreement or any other Loan Document to any Loan Party, any Lender, any Synthetic Investor or any Issuer and shall not have any rights separate from its rights as a Lender, Fronting Lender, Synthetic
Investor or as an Administrative Agent, except as expressly provided in this Agreement. Credit Suisse Securities (USA) LLC shall have, for any action or omission made in its capacity as “Arranger,” the benefit of any provision of
this Agreement to the same extent as if such action or omission was made in its capacity as Administrative Agent. 
  

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 Each Lender and each Issuer hereby appoints JPMorgan Chase Bank, N.A. as Syndication Agent and hereby
authorizes it to act in its capacity as Syndication Agent, and each Lender and each Issuer hereby appoints Wachovia Bank, National Association and The Bank of Nova Scotia as Co-Documentation Agents and hereby authorizes them to act in their capacity
as Co-Documentation Agents, on behalf of such Lender and such Issuer in accordance with the terms of this Agreement and the other Loan Documents. Notwithstanding anything to the contrary contained in this Agreement, each Co-Documentation Agent is a
Lender designated as “Co-Documentation Agent,” and the Syndication Agent is a Lender designated as “Syndication Agent,” for title purposes only and in such capacity shall have no obligations, liabilities or duties
whatsoever under this Agreement or any other Loan Document to any Loan Party, any Lender or any Issuer and shall have no rights separate from their respective rights as a Lender except as expressly provided in this Agreement. 
  
 ARTICLE XI 
  
 MISCELLANEOUS 
  
 Section 11.1 Amendments, Waivers, Etc. 
  
 (a) No amendment or waiver of any provision of this Agreement or any other
Loan Document nor consent to any departure by any Loan Party therefrom shall in any event be effective unless the same shall be in writing and signed by the Requisite Lenders (or by the Administrative Agent with the consent of the Requisite Lenders)
and, in the case of any amendment, by the Borrower, and then any such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given; provided, however, that no amendment, waiver or
consent shall, unless in writing and signed by each Lender directly affected thereby and, except with respect to clause (iii), (v) or (vi), the Requisite Lenders (or the Administrative Agent with the consent thereof), do
any of the following: 
  
 (i) waive any condition
specified in Section 3.1 (Conditions Precedent to Effectiveness) or 3.2(c) (Conditions Precedent to Each Loan and Letter of Credit), except with respect to a condition based upon another provision hereof, the waiver of which
requires only the concurrence of the Requisite Lenders and, in the case of the conditions specified in Section 3.1 (Conditions Precedent to Effectiveness), subject to the provisions of Section 3.3 (Determinations of Initial
Borrowing Conditions); 
  
 (ii) increase the
Commitment of such Lender; 
  
 (iii) extend the
scheduled final maturity of any Loan owing to such Lender, or waive, reduce or postpone any scheduled date fixed for the payment or reduction of principal of any such Loan (it being understood that Section 2.9 (Mandatory Prepayments)
does not provide for scheduled dates fixed for payment) or for the reduction of such Lender’s Commitment; 
  

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 (iv) reduce the principal amount of any Loan or Reimbursement Obligation owing to such
Lender (other than by the payment or prepayment thereof); 
  
 (v) reduce the rate of interest on any Loan or Reimbursement Obligations outstanding to such Lender or any fee payable hereunder to such Lender (including, if such Lender is the Fronting Lender, any fee ultimately
payable to any Synthetic Investor); 
  
 (vi)
postpone any scheduled date fixed for payment of such interest or fees owing to such Lender (including, if such Lender is the Fronting Lender, any fee ultimately payable to any Synthetic Investor); 
  
 (vii) change the aggregate Ratable Portions of Lenders
required for any or all Lenders to take any action hereunder; 
  
 (viii) release all or substantially all of the Collateral except as provided in Section 10.8(b) (Concerning the Collateral and the Collateral Documents) or release the Borrower from its payment obligation
to such Lender under this Agreement or the Notes owing to such Lender (if any) or release any Guarantor from its obligations under the BWICO Guaranty or the Pledge and Security Agreement except in connection with sale or other disposition of a
Subsidiary Guarantor (or all or substantially all of the assets thereof) permitted by this Agreement (or permitted pursuant to a waiver or consent of a transaction otherwise prohibited by this Agreement); or 
  
 (ix) amend Section 10.8(b) (Concerning the
Collateral and the Collateral Documents), this Section 11.1 or either definition of the terms “Requisite Lenders” or “Ratable Portion”; 
  
 and, provided, further, that (t) no amendment shall be made to (i) Section 8.1(m)(Indebtedness),(ii)
Section 8.17 (Contingent MI Payment) or (iii) allow the Borrower or any of its Subsidiaries to incur Indebtedness that would (or the proceeds of which would) be used, directly or indirectly, to make or support the making of (or
refinance any Indebtedness used to make or support the making of) the Contingent MI Payment, in each case without the prior written consent of each Lender, (u) no amendment shall be made to this clause (a) without the prior written
consent of each Lender, (v) no amendment, waiver or consent shall, unless in writing and signed by any Special Purpose Vehicle that has been granted an option pursuant to Section 11.2(f) (Assignments and Participations), affect the
grant or nature of such option or the right or duties of such Special Purpose Vehicle hereunder, (w) no amendment, waiver or consent shall, unless in writing and signed by the Administrative Agent in addition to the Lenders required above to
take such action, affect the rights or duties of the Administrative Agent under this Agreement or the other Loan Documents, (x) no amendment, waiver or consent shall, unless in writing and signed by the Fronting Lender in addition to the
Lenders required above to take such action, affect the rights or duties of the Fronting Lender under this Agreement or the other Loan Documents, (y) no amendment, waiver or 

  

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consent shall, unless in writing and signed by such Issuer, affect the rights or duties of any Issuer under this Agreement or the other Loan Documents and
(z) for purposes of this clause (a), the Fronting Lender may, by notice to the Administrative Agent (which notice shall then be deemed irrevocable and binding for all purposes under any Loan Document), limit any of its requests,
amendments, waivers, consents or agreements under the Synthetic Facility to a dollar amount less than its Commitment (and corresponding to the aggregate amount of the Credit-Linked Deposits of Synthetic Investors having notified the Fronting Lender
thereunder of their agreement with such request, amendment, waiver, consent or agreement) and such request, amendment, waiver, consent or agreement shall then be considered to be the request, amendment, waiver, consent or agreement of a Lender with
a Commitment equal to such amount. 
  
 (b) The Administrative
Agent may, but shall have no obligation to, with the written concurrence of any Lender, execute amendments, modifications, waivers or consents on behalf of such Lender. Any waiver or consent shall be effective only in the specific instance and for
the specific purpose for which it was given. No notice to or demand on the Borrower in any case shall entitle the Borrower to any other or further notice or demand in similar or other circumstances. 
  
 (c) If, in connection with any proposed amendment, modification, waiver or
termination (a “Proposed Change”) requiring the consent of all affected Lenders and Synthetic Investors, the consent of Requisite Lenders is obtained but the consent of other Lenders or Synthetic Investors whose consent is required
is not obtained (any such Lender or Synthetic Investor whose consent is not obtained as described in this Section 11.1(c) being referred to as a “Non-Consenting Lender”), then, at the Borrower’s request, the
Administrative Agent or an Eligible Assignee acceptable to the Administrative Agent shall have the right (but shall have no obligation) to purchase from such Non-Consenting Lender, and such Non-Consenting Lender agrees that it shall, upon the
Administrative Agent’s request, sell and assign to the Lender acting as the Administrative Agent or such Eligible Assignee, all of the Commitments and Outstandings of such Non-Consenting Lender (or, in the case of a Synthetic Investor, the
Credit-Linked Deposit) for an amount equal to the principal balance of all Loans held by the Non-Consenting Lender or amounts on deposit in the Sub-Account of such Non-Consenting Lender, as the case may be, and all accrued interest and fees with
respect thereto (including, if such Lender is the Fronting Lender, any fee ultimately payable to any Synthetic Investor) through the date of sale, such purchase and sale to be consummated pursuant to an Assignment and Acceptance, and the Assignee
shall pay any processing and recordation fee (which fee may be waived or reduced in the sole discretion of the Administrative Agent); provided, however, that the failure to execute such Assignment and Acceptance by the Non-Consenting
Lender shall not invalidate such assignment, and such Assignment and Acceptance shall be deemed to be executed upon receipt by such Non-Consenting Lender of the proceeds of such sale and acceptance. For purposes of this clause (c), if
the Fronting Lender has limited its consent to any Proposed Change to any amount lower than its Commitment under the Synthetic Facilities to comply with the instructions of the Synthetic Investors in accordance with clause (a) above then
the Fronting Lender shall be a “Non-Consenting Lender” only to the extent of the excess of its Commitment hereunder over such amount, and only such 

  

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excess Commitment (and the portion of the Fronting Lender’s Outstandings corresponding to such excess Commitment) shall be sold and assigned to the
Lender acting as Administrative Agent or such Eligible Assignee as provided in this clause (c). 
  
 Section 11.2 Assignments and Participations 
  

(a) Each Lender and Synthetic Investor (other than the Fronting Lender) may sell, transfer, negotiate or assign to one or more Eligible Assignees all
or a portion of its rights and obligations hereunder (including all of its rights and obligations with respect to the Revolving Loans, the Swing Loans, the Letters of Credit and the Credit-Linked Deposits); provided, however, that
(i) any such assignment shall cover the same percentage of such assignor’s Outstandings and Commitment (or Synthetic Deposit Amount, as applicable), (ii) the aggregate amount being assigned pursuant to each such assignment (determined
as of the date of the Assignment and Acceptance with respect to such assignment and treating related Approved Funds as one assignee for this purpose) shall (if less than the assignor’s entire interest) be an integral multiple of $1,000,000
unless such assignment is made with the consent of the Borrower and the Administrative Agent or is made to a Lender (or a Synthetic Investor) or an Affiliate thereof or an Approved Fund of a Lender (or a Synthetic Investor), (iii) if such
assignment is of any Revolving Loan prior to the Revolving Facility Termination Date, unless such Eligible Assignee is a Lender or an Affiliate thereof or an Approved Fund of a Lender, such assignment shall be subject to the prior consent of each
Issuer, the Administrative Agent and the Borrower (which consent shall, in each case, not be unreasonably withheld or delayed) and (iv) if such assignment is of any Delayed Draw Commitment prior to the Delayed Draw Commitment Termination Date,
unless such Eligible Assignee is a Lender or an Affiliate thereof or an Approved Fund of a Lender, such assignment shall be subject to the prior consent of the Administrative Agent and the Borrower (which consent shall, in each case, not be
unreasonably withheld or delayed); and provided, further, that, notwithstanding any other provision of this Section 11.2, the consent of the Borrower shall not be required for any assignment occurring (x) on or prior
to the Syndication Completion Date and made by any Lender or Synthetic Investor party to this Agreement as of the Effective Date or (y) when any Default or an Event of Default shall have occurred and be continuing. The Fronting Lender may sell,
transfer, negotiate or assign to (A) one successor Fronting Lender pursuant to Section 10.7 (Successor Fronting Lender)) or (B) one or more Synthetic Investors that are Eligible Assignees, all or a portion of its rights and
obligations hereunder (including all of its rights and obligations with respect to the Letters of Credit); provided, however, that (x) if any such assignment shall be of the Fronting Lender’s Outstandings and Commitment, such
assignment shall cover the same percentage of such Lender’s Outstandings and Commitment and (y) the aggregate amount being assigned pursuant to each such assignment (determined as of the date of the Assignment and Acceptance with respect
to such assignment) shall (if less than the Assignor’s entire interest) be an integral multiple of $1,000,000 unless such assignment is made with the consent of the Borrower and the Administrative Agent. 
  
 (b) The parties to each assignment shall execute and deliver to the
Administrative Agent an Assignment Agreement via an electronic settlement system acceptable to the Administrative Agent (or, if previously agreed with the Agent, 

  

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manually), and shall pay to the Administrative Agent a processing and recordation fee of $3,500 (which fee may be waived or reduced in the sole discretion of
the Administrative Agent and only one such fee shall be payable in connection with simultaneous assignments to or by two or more Approved Funds), subject in any case to such assignment and any form, including an administrative questionnaire, that
the assignee under such Assignment and Acceptance may be required to deliver under Section 2.16 (Taxes). Upon such execution, delivery, acceptance and recording, (i) the assignee thereunder shall become a party hereto and, to the
extent that rights and obligations under the Loan Documents have been assigned to such assignee pursuant to such Assignment and Acceptance, have the rights and obligations of the applicable assignor, and if such assignor were an Issuer, of such
Issuer hereunder and thereunder, and (ii) the assignor thereunder shall, to the extent that rights and obligations under this Agreement have been assigned by it pursuant to such Assignment and Acceptance, relinquish its rights (except for those
surviving the payment in full of the Obligations) and be released from its obligations under the Loan Documents, other than those relating to events or circumstances occurring prior to such assignment and, in the case of an Assignment and Acceptance
covering all or the remaining portion of an assignor’s rights and obligations under the Loan Documents, such assignor shall cease to be a party hereto; provided, however, that, if the Fronting Lender also holds separate
Commitments or Outstandings hereunder not in its capacity as Fronting Lender, assigning all of such separate Commitments or Outstandings or all of its Commitments and Outstandings as a Fronting Lender (but not both) shall not cause such the Fronting
Lender to cease to be a party hereto. 
  
 (c) The Administrative
Agent shall maintain at its address referred to in Section 11.8 (Notices, Etc.) a copy of each Assignment and Acceptance delivered to and accepted by it and a register for the recording of the names and addresses of the Lenders, the
Synthetic Investors, the Commitments and the Synthetic Deposit Amounts, and the principal amount of the Loans and Letter of Credit Obligations owing to each Lender from time to time (the “Register”). Any assignment pursuant to this
Section 11.2 shall not be effective until such assignment is recorded in the Register. The entries in the Register shall be conclusive and binding for all purposes, absent manifest error, and the Loan Parties, the Administrative Agent,
the Lenders and the Synthetic Investors may treat each Person whose name is recorded in the Register as a Lender or a Synthetic Investor, as applicable, for all purposes of this Agreement. The Register shall be available for inspection by the
Borrower, the Administrative Agent, any Lender or any Synthetic Investor at any reasonable time and from time to time upon reasonable prior notice. 
  
 (d) Notwithstanding anything to the contrary contained in clause (c) above, the Loans (including the Notes evidencing such Loans) are
registered obligations and the right, title, and interest of the Lenders and their assignees in and to such Loans shall be transferable only upon notation of such transfer in the Register. A Note shall only evidence the Lender’s or an
assignee’s right title and interest in and to the related Loan, and in no event is any such Note to be considered a bearer instrument or obligation. This Section 11.2 shall be construed so that the Loans are at all times maintained
in “registered form” within the meaning of Sections 163(f), 871(h)(2) and 881(c)(2) of the Code and any related regulations (or any successor provisions of the Code or such 

  

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regulations). Solely for purposes of this and for tax purposes only, the Administrative Agent shall act as the Borrower’s agent for purposes of
maintaining such notations of transfer in the Register. 
  
 (e)
Upon its receipt of an Assignment and Acceptance executed by an assignor and an assignee, the Administrative Agent shall, if such Assignment and Acceptance has been completed and appropriate forms received, (i) accept such Assignment and
Acceptance, (ii) record the information contained therein in the Register and (iii) except during the period prior to the Syndication Completion Date (during which period the Administrative Agent shall be consulting with the Borrower with
respect to assignees), give prompt notice thereof to the Borrower. Within five Business Days after its receipt of such notice, the Borrower, at its own expense, shall, if requested by such assignee, execute and deliver to the Administrative Agent
new Notes to the order of such assignee in an amount equal to the Commitments and Loans assumed by it pursuant to such Assignment and Acceptance and, if an assigning Lender has surrendered any Note for exchange in connection with the assignment and
has retained Commitments or Loans hereunder, new Notes to the order of such assigning Lender in an amount equal to the Commitments and Loans retained by it hereunder. Such new Notes shall be dated the same date as the surrendered Notes and be in
substantially the form of Exhibit B (Form of Promissory Note), as applicable. 
  
 (f) In addition to the other assignment rights provided in this Section 11.2, each Lender (other than the Fronting Lender) may (i) grant to a Special Purpose Vehicle the option to make all or any part
of any Loan that such Lender would otherwise be required to make hereunder and the exercise of such option by any such Special Purpose Vehicle and the making of Loans pursuant thereto shall satisfy (once and to the extent that such Loans are made)
the obligation of such Lender to make such Loans thereunder, provided, however, that nothing herein shall constitute a commitment or an offer to commit by such a Special Purpose Vehicle to make Loans hereunder and no such Special
Purpose Vehicle shall be liable for any indemnity or other Obligation (other than the making of Loans for which such Special Purpose Vehicle shall have exercised an option, and then only in accordance with the relevant option agreement), and
(ii) assign, as collateral or otherwise, any of its rights under this Agreement, whether now owned or hereafter acquired (including rights to payments of principal or interest on the Loans) to (x) any Federal Reserve Bank pursuant to
Regulation A of the Federal Reserve Board, (y) any trustee for the benefit of the holders of such Lender’s Securities or any other holder of a Lender’s debt obligations or representative of such holder or (z) to any Special
Purpose Vehicle to which such Lender has granted an option pursuant to clause (i) above, in each case without notice to or consent of the Borrower or the Administrative Agent; and provided, further, that no such assignment
or grant shall release such Lender from any of its obligations hereunder except as expressly provided in clause (i) above. The parties hereto acknowledge and agree that, prior to the date that is one year and one day after the payment in
full of all outstanding commercial paper or other senior debt of any such Special Purpose Vehicle, it will not institute against, or join any other Person in instituting against, any Special Purpose Vehicle that has been granted an option pursuant
to this clause (f) any bankruptcy, reorganization, insolvency or liquidation proceeding (such agreement shall survive the payment in full of the Obligations). 
  

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 (g) Each Lender (other than the Fronting Lender) and each Synthetic Investor may sell participations to
one or more Persons in or to all or a portion of its rights and obligations under the Loan Documents (including all its rights and obligations with respect to the Revolving Loans, Letters of Credit and the Credit-Linked Deposits). The terms of such
participation shall not, in any event, require the participant’s consent to any amendments, waivers or other modifications of any provision of any Loan Document, the consent to any departure by any Loan Party therefrom, or to the exercising or
refraining from exercising any powers or rights such Lender or Synthetic Investor may have under or in respect of the Loan Documents (including the right to enforce the obligations of the Loan Parties), except if any such amendment, waiver or other
modification or consent would (i) reduce the amount, or postpone any date fixed for, any amount (whether of principal, interest or fees) payable to such participant under the Loan Documents, to which such participant would otherwise be entitled
under such participation or (ii) result in the release of all or substantially all of the Collateral or releasing any Guarantor other than in accordance with Section 10.8(b) (Concerning the Collateral and the Collateral Documents).
In the event of the sale of any participation by any such Lender or Synthetic Investor, (w) such Lender’s obligations under the Loan Documents shall remain unchanged, (x) such Lender or Synthetic Investor shall remain solely
responsible to the other parties for the performance of such obligations, (y) such Lender or Synthetic Investor shall remain the holder of such Obligations for all purposes of this Agreement and (z) the Borrower, the Administrative Agent
and the other Lenders and Synthetic Investors shall continue to deal solely and directly with such Lender or Synthetic Investor in connection with such Lender’s or Synthetic Investor’s rights and obligations under this Agreement. Each
participant shall be entitled to the benefits of Sections 2.14(d) (Illegality), 2.15 (Capital Adequacy) and 2.16 (Taxes) as if it were a Lender or Synthetic Investor; provided, however, that anything herein to
the contrary notwithstanding, the Borrower shall not, at any time, be obligated to make under Section 2.14(d) (Illegality), 2.15 (Capital Adequacy) or 2.16 (Taxes) to the participants in the rights and obligations of any
Lender or Synthetic Investor (together with such Lender or Synthetic Investor) any payment in excess of the amount the Borrower would have been obligated to pay to such Lender or Synthetic Investor in respect of such interest had such participation
not been sold. In the event that any Lender or Synthetic Investor sells participations in accordance with this Section 11.2(g), such Lender or Synthetic Investor shall maintain a register on which it enters the name of all participants
in its rights and obligations under the Loan Documents (the “Participant Register”). Any participation of such Lender’s or Synthetic Investor’s rights and obligations under the Loan Documents may be effected only by the
registration of such participation on the Participant Register. 
  
 (h) Any Issuer may, with, unless an Event of Default has occurred and is continuing, the prior written consent of the Borrower (such consent not to be unreasonably withheld or delayed) at any time assign its rights and obligations hereunder
to any other Lender (other than the Fronting Lender) by an instrument in form and substance satisfactory to the Borrower, the Administrative Agent, such Issuer and such Lender. If any Issuer ceases to be a Lender hereunder by virtue of any
assignment made 

  

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pursuant to this Section 11.2(h), then, as of the effective date of such cessation, such Issuer’s obligations to Issue Letters of Credit
pursuant to Section 2.4 (Letters of Credit) shall terminate and such Issuer shall be an Issuer hereunder only with respect to outstanding Letters of Credit issued prior to such date. 
  
 Section 11.3 Costs and Expenses 
  
 (a) The Borrower agrees upon demand to pay, or reimburse each of the Agents
and Fronting Lender for, all of the Administrative Agent’s and the Fronting Lender’s reasonable external audit, appraisal, valuation, filing, document duplication and reproduction and investigation expenses and all of the Agents’
reasonable out-of-pocket legal expenses and for all other reasonable out-of-pocket costs and expenses of every type and nature (including, without limitation, the reasonable fees, expenses and disbursements of the Administrative Agent’s and the
Fronting Lender’s counsel, Latham & Watkins LLP, local legal counsel, auditors, accountants, appraisers, printers, insurance and environmental advisors, and other consultants and agents) incurred by any Agent or the Fronting Lender in
connection with any of the following: (i) the Administrative Agent’s or the Fronting Lender’s audit and investigation of the Borrower and its Subsidiaries in connection with the preparation, negotiation or execution of any Loan
Document or, if an Event of Default has occurred and is continuing, the Administrative Agent’s or Fronting Lender’s periodic audits of the Borrower or any of its Subsidiaries (which audit expenses shall be reimbursed only if conducted when
an Event of Default has occurred and is continuing), as the case may be, (ii) the preparation, negotiation, execution or interpretation of this Agreement (including, without limitation, the satisfaction or attempted satisfaction of any
condition set forth in Article III (Conditions To Loans And Letters Of Credit), any Loan Document or any proposal letter or engagement letter issued in connection therewith, or the making of the Loans hereunder, (iii) the creation,
perfection or protection of the Liens under any Loan Document (including any reasonable fees, disbursements and expenses for local counsel in various jurisdictions), (iv) the ongoing administration of this Agreement and the Loans and Letters of
Credit, including consultation with attorneys in connection therewith and with respect to the Administrative Agent’s, the Collateral Agent’s and the Fronting Lender’s rights and responsibilities hereunder and under the other Loan
Documents, (v) the protection, collection or enforcement of any Obligation or the enforcement of any Loan Document, (vi) the commencement, defense or intervention in any court proceeding relating in any way to the Obligations, any Loan
Party, any of the Borrower’s Subsidiaries, this Agreement or any other Loan Document, (vii) the response to, and preparation for, any subpoena or request for document production with which any Agent or the Fronting Lender is served or
deposition or other proceeding in which any Agent or the Fronting Lender is called to testify, in each case, relating in any way to the Obligations, any Loan Party, any of the Borrower’s Subsidiaries, this Agreement or any other Loan Document
or (viii) any amendment, consent, waiver, assignment, restatement, or supplement to any Loan Document or the preparation, negotiation, and execution of the same; provided, however, that the Borrower shall not have any obligation
under clauses (vi) and (vii) hereunder in connection with any action brought by one Secured Party against another Secured Party (except in its capacity as an Agent, if applicable). 
  

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 (b) The Borrower further agrees to pay or reimburse each Agent and each of the Lenders, Synthetic
Investors and Issuers upon demand (which, in the case of the Synthetic Investors, shall be made through the Fronting Lender) for all reasonable out-of-pocket costs and expenses, including, without limitation, reasonable attorneys’ fees
(including allocated costs of internal counsel and costs of settlement), incurred by such Agent, such Lenders, Synthetic Investors or Issuers in connection with any of the following: (i) in enforcing any Loan Document or any security therefor
or exercising or enforcing any other right or remedy available by reason of an Event of Default, (ii) in connection with any refinancing or restructuring of the credit arrangements provided hereunder in the nature of a
“work-out” or in any insolvency or bankruptcy proceeding, (iii) in commencing, defending or intervening in any litigation or in filing a petition, complaint, answer, motion or other pleadings in any legal proceeding relating to
the Obligations, any Loan Party, any of the Borrower’s Subsidiaries and related to or arising out of the transactions contemplated hereby or by any other Loan Document or (iv) in taking any other action in or with respect to any suit or
proceeding (bankruptcy or otherwise) described in clause (i), (ii) or (iii) above; provided, however, that the Borrower shall not have any obligation under clause (iii) hereunder in
connection with any action brought by one Secured Party against another Secured Party (except in its capacity as an Agent, if applicable). 
  
 Section 11.4 Indemnities 
  
 (a) The Borrower agrees to indemnify and hold harmless each Agent, each Lender, each Synthetic Investor and each Issuer and each of their respective
Affiliates, and each of the directors, officers, employees, agents, representatives, attorneys, consultants and advisors of or to any of the foregoing (including those retained in connection with the satisfaction or attempted satisfaction of any
condition set forth in Article III (Conditions To Loans And Letters Of Credit)) (each such Person being an “Indemnitee”) from and against any and all claims, damages, liabilities, obligations, losses, penalties, actions,
judgments, suits, costs, disbursements and expenses of any kind or nature (including reasonable fees, disbursements and expenses of financial and legal advisors to any such Indemnitee) that may be imposed on, incurred by or asserted against any such
Indemnitee in connection with or arising out of any investigation, litigation or proceeding, whether or not any such Indemnitee is a party thereto, whether direct, indirect, or consequential and whether based on any federal, state or local law or
other statutory regulation, securities or commercial law or regulation, or under common law or in equity, or on contract, tort or otherwise, in any manner relating to or arising out of this Agreement, any other Loan Document, any Obligation, any
Letter of Credit or any act, event or transaction related or attendant to any thereof, or the use or intended use of the proceeds of the Loans or Letters of Credit or in connection with any investigation of any potential matter covered hereby
(collectively, the “Indemnified Matters”); provided, however, that the Borrower shall not have any obligation under this Section 11.4 to an Indemnitee with respect to (i) any Indemnified Matter caused
by or resulting from the gross negligence or willful misconduct of that Indemnitee, as determined by a court of competent jurisdiction in a final non-appealable judgment or order and (ii) any action brought by one Secured Party against another
Secured Party (except in its capacity as an Agent, if applicable). Without limiting the foregoing, “Indemnified Matters” include 

  

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(i) all Environmental Liabilities and Costs arising from or connected with the past, present or future operations of the Borrower or any of its
Subsidiaries involving any property subject to a Collateral Document, or damage to real or personal property or natural resources or harm or injury alleged to have resulted from any Release of Contaminants on, upon or into such property or any
contiguous real estate, (ii) any costs or liabilities incurred in connection with any Remedial Action concerning any Borrower or any of its Subsidiaries, (iii) any costs or liabilities incurred in connection with any Environmental Lien and
(iv) any costs or liabilities incurred in connection with any other matter under any Environmental Law, including the Comprehensive Environmental Response, Compensation and Liability Act of 1980, (49 U.S.C. § 9601 et seq.) and
applicable state property transfer laws, whether, with respect to any such matter, such Indemnitee is a mortgagee pursuant to any leasehold mortgage, a mortgagee in possession, the successor in interest to the Borrower or any of its Subsidiaries, or
the owner, lessee or operator of any property of the Borrower or any of its Subsidiaries by virtue of foreclosure, except, with respect to those matters referred to in clauses (i), (ii), (iii) and
(iv) above, to the extent (x) incurred following foreclosure by the Administrative Agent, any Lender, any Synthetic Investor or any Issuer, or the Administrative Agent, any Lender, any Synthetic Investor or any Issuer having become
the successor in interest to the Borrower or any of its Subsidiaries and (y) attributable solely to acts of the Administrative Agent, such Lender, such Synthetic Investor or such Issuer or any agent on behalf of the Administrative Agent, such
Lender, such Synthetic Investor or such Issuer. 
  
 (b) The
Borrower shall indemnify each Agent, each Lender, each Synthetic Investor and each Issuer for, and hold each Agent, each Lender, each Synthetic Investor and each Issuer harmless from and against, any and all claims for brokerage commissions, fees
and other compensation made against any Agent, any Lender, any Synthetic Investor and any Issuer for any broker, finder or consultant with respect to any agreement, arrangement or understanding made by or on behalf of any Loan Party or any of its
Subsidiaries in connection with the transactions contemplated by this Agreement. 
  
 (c) The Borrower, at the request of any Indemnitee, shall have the obligation to defend against such investigation, litigation or proceeding or requested Remedial Action and the Borrower, in any event, may participate
in the defense thereof with legal counsel of the Borrower’s choice. If such Indemnitee requests the Borrower to defend against such investigation, litigation or proceeding or requested Remedial Action, the Borrower shall promptly do so and such
Indemnitee shall have the right to have legal counsel of its choice participate in such defense. No action taken by legal counsel chosen by such Indemnitee in defending against any such investigation, litigation or proceeding or requested Remedial
Action, shall vitiate or in any way impair the Borrower’s obligation and duty hereunder to indemnify and hold harmless such Indemnitee. 
  
 (d) The Borrower agrees that any indemnification or other protection provided to any Indemnitee pursuant to this Agreement (including pursuant to this
Section 11.4) or any other Loan Document shall (i) survive payment in full of the Obligations and (ii) inure to the benefit of any Person that was at any time an Indemnitee under this Agreement or any other Loan Document.

  

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 Section 11.5 Limitation of Liability 
  
 The Borrower agrees that no Indemnitee shall have any liability (whether
direct or indirect, in contract, tort or otherwise) to any Loan Party or any of their respective Subsidiaries or any of their respective equity holders or creditors for or in connection with the transactions contemplated hereby and in the other Loan
Documents, except for direct damages (as opposed to special, indirect, consequential or punitive damages (including, without limitation, any loss of profits, business or anticipated savings)) determined in a final non-appealable judgment by a court
of competent jurisdiction to have resulted from such Indemnitee’s gross negligence or willful misconduct. The Borrower hereby waives, releases and agrees (for itself and on behalf of its Subsidiaries) not to sue upon any such claim for
any special, indirect, consequential or punitive damages, whether or not accrued and whether or not known or suspected to exist in its favor. 
  
 Section 11.6 Right of Set-off 
  
 Upon the occurrence and during the continuance of any Event of Default, each Lender, each Synthetic Investor and each Affiliate of any of them is
hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and other indebtedness at any time
owing by such Lender or such Synthetic Investor or any of their respective Affiliates to or for the credit or the account of the Borrower against any and all of the Obligations now or hereafter existing whether or not such Lender or such Synthetic
Investor shall have made any demand under this Agreement or any other Loan Document and even though such Obligations may be unmatured. Each Lender and each Synthetic Investor agrees promptly to notify the Borrower after any such set-off and
application made by such Lender or such Synthetic Investor or their respective Affiliates; provided, however, that the failure to give such notice shall not affect the validity of such set-off and application. The rights of each Lender
and each Synthetic Investor under this Section 11.6 are in addition to the other rights and remedies (including other rights of set-off) that such Lender or such Synthetic Investor may have. Notwithstanding the foregoing or any contrary
provision contained herein, in any other Loan Document or in any other agreement between the Borrower or any Subsidiary of the Borrower, on the one hand, and any Secured Party or any Affiliate of any Secured Party, on the other hand, neither any
Secured Party nor any Affiliate of any Secured Party shall have, and each Secured Party hereby waives and relinquishes, any right to set off any deposits (general or special, time or demand, provisional or final) held by such Secured Party or
Affiliate to or for the credit or the account of the Borrower or any Subsidiary of the Borrower against any or all of the Obligations if such deposits are, and are identified by the Borrower as, the proceeds of a capital contribution made by MI or
an Affiliate of MI to the Borrower or a Subsidiary of the Borrower in connection with the Contingent MI Payment. 
  

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 Section 11.7 Sharing of Payments, Etc. 
  
 (a) (i) If any Synthetic Investor obtains any payment (whether voluntary,
involuntary, through the exercise of any right of set-off or otherwise) owing to it or the Fronting Lender, any interest thereon, fees in respect thereof or amounts due pursuant to Section 11.3 (Costs and Expenses) or 11.4
(Indemnities) (other than payments pursuant to Section 2.14 (Special Provisions Governing Eurodollar Rate Loans), 2.15 (Capital Adequacy) or 2.16 (Taxes)) in excess of its Ratable Portion of all payments of such
Obligations obtained by all the Lenders and Synthetic Investors, except as the result of a refinancing of the Synthetic Facility, such Synthetic Investor (a “Purchasing Investor”) shall forthwith purchase from the other Lenders
(other than the Fronting Lender) and the other Synthetic Investors (each, a “Selling Investor”) such participations in their Loans or other Obligations or interest in the Credit-Linked Deposits as shall be necessary to cause such
Purchasing Investor to share the excess payment ratably with each of them. 
  
 (ii) If any Lender obtains any payment (whether voluntary, involuntary, through the exercise of any right of set-off or otherwise) of the Loans owing to it, any interest thereon, fees in respect thereof (including, if
such Lender is the Fronting Lender, any fee ultimately payable to any Synthetic Investor) or amounts due pursuant to Section 11.3 (Costs and Expenses) or 11.4 (Indemnities) (other than payments pursuant to Section 2.14
(Special Provisions Governing Eurodollar Rate Loans), 2.15 (Capital Adequacy) or 2.16 (Taxes)) in excess of its Ratable Portion of all payments of such Obligations obtained by all the Lenders and Synthetic Investors, except as the
result of a refinancing of the applicable Facility, such Lender (together with a Purchasing Investor, a “Purchasing Lender”) shall forthwith purchase from the other Lenders (each, together with the Selling Investors, a
“Selling Lender”) and Synthetic Investors such participations in their Loans or other Obligations as shall be necessary to cause such Purchasing Lender to share the excess payment ratably with each of them. 
  
 (iii) Except as expressly provided otherwise with respect to
Swing Loans, each Borrowing or withdrawal of a Credit-Linked Deposit, each payment or prepayment of principal of any Borrowing or withdrawal of a Credit-Linked Deposit, each payment of interest on the Loans or Credit-Linked Deposit, each payment of
the Commitment Fees, each reduction of the Commitments and each conversion of any Borrowing to or continuation of any Borrowing shall be allocated pro rata among the Lenders and Synthetic Investors, as applicable, in accordance with their respective
applicable Commitments (or, if such Commitments shall have expired or been terminated, in accordance with the respective principal amounts of their outstanding Loans or Credit-Linked Deposits). For purposes of determining the available Revolving
Credit Commitments of the Lenders at any time, each outstanding Swing Loan shall be deemed to have utilized the Revolving Commitments of the Lenders (including those Lenders which shall not have made Swing Loans) pro rata in accordance with such
respective Revolving Commitments. Each Lender agrees that in computing such Lender’s portion of any Borrowing to be made hereunder, the Administrative Agent may, in its discretion, round each Lender’s percentage of such Borrowing to the
next higher or lower whole dollar amount. 
  

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 (b) If all or any portion of any payment received by a Purchasing Lender is thereafter recovered from
such Purchasing Lender, such purchase from each Selling Lender shall be rescinded and such Selling Lender shall repay to the Purchasing Lender the purchase price to the extent of such recovery together with an amount equal to such Selling
Lender’s ratable share (according to the proportion of (i) the amount of such Selling Lender’s required repayment in relation to (ii) the total amount so recovered from the Purchasing Lender) of any interest or other amount paid
or payable by the purchasing Lender in respect of the total amount so recovered. 
  
 (c) The Borrower agrees that any Purchasing Lender so purchasing a participation from a Selling Lender pursuant to this Section 11.7 may, to the fullest extent permitted by law, exercise all its rights of
payment (including the right of set-off) with respect to such participation as fully as if such Purchasing Lender were the direct creditor of the Borrower in the amount of such participation. 
  
 Section 11.8 Notices, Etc. 
  
 All notices, demands, requests and other communications provided for in this
Agreement (x) if made by any Synthetic Investor, shall be made through the Fronting Lender or, if expressly provided hereunder, through the Administrative Agent and (y) in any case, shall be given in writing, or, if consented to by the
Administrative Agent, by any telecommunication device capable of creating a written record (including electronic mail), and addressed to the party to be notified as follows: 
  
 (a) if to the Borrower: 
  
 THE BABCOCK & WILCOX COMPANY

 20 S. Van Buren Avenue 
 Barberton, Ohio 44203 
 Attention: Treasurer 
 Telecopy no: (281) 870-5027 
 E-Mail Addresses: jeaster@mcdermott.com 
  
 with a copy to: 
  
 McDermott International, Inc. 
 757 North Eldridge 
 Parkway Houston, Texas 77079 
 Attention: John Nesser 
 Telecopy No: (281) 870-5828 
 E-Mail Address: treasury@mcdermott.com 
  

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 and 
  
 BAKER BOTTS LLP 
 910 Louisiana Street 
 Houston, TX 77002 
 Attention: Ted Paris, Esq. 
 Telecopy no: (713) 229-7738 
 E-Mail Address: ted.paris@bakerbotts.com 
  
 (b) if to any Lender, at its Domestic Lending Office; 
  
 (c) if to any Issuer, (i) at its Domestic Lending Office, if such Issuer is a Lender or (ii) otherwise, at the Domestic Lending Office of any Lender Affiliated therewith or, in each case at any other address
set forth in a notice sent to the Administrative Agent and the Borrower; 
  
 (d) if to the Fronting Lender, at its Domestic Lending Office; and 
  
 (e) if to the Administrative Agent: 
  
 CREDIT SUISSE 
 Eleven Madison Avenue 
 New York, NY 10010 
 Attention: Thomas Lynch 
 Telecopy no: (212) 325-9205 
  
 or at such
other address as shall be notified in writing (x) in the case of the Borrower and the Administrative Agent, to the other parties and (y) in the case of all other parties, to the Borrower and the Administrative Agent. All such notices and
communications shall be effective upon personal delivery (if delivered by hand, including any overnight courier service), when deposited in the mails (if sent by mail), or when properly transmitted (if sent by a telecommunications device or through
the Internet); provided, however, that notices and communications to the Administrative Agent pursuant to Article II (The Facilities) or X (The Administrative Agent, The Fronting Lender and Other Agents) shall not be
effective until received by the Administrative Agent (unless otherwise expressly provided hereunder). 
  
 Section 11.9 No Waiver; Remedies 
  
 No failure on the part of any Lender, any Synthetic Investor, any Issuer or the Administrative Agent to exercise, and no delay in exercising, any right
hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any such right preclude any other or further exercise thereof or the exercise of any other right. The remedies herein provided are cumulative and not exclusive
of any remedies provided by law. 
  

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 Section 11.10 Binding Effect 
  
 (a) This Agreement shall become effective when it shall have been executed
by each of the parties hereto and when the Administrative Agent shall have received counterparts hereof which, when taken together, bear the signatures of each of the other parties hereto. 
  
 Section 11.11 Governing Law 
  
 This Agreement and the rights and obligations of the parties hereto shall be
governed by, and construed and interpreted in accordance with, the law of the State of New York. 
  
 Section 11.12 Submission to Jurisdiction; Service of Process 
  
 (a) Any legal action or proceeding with respect to this Agreement or any other Loan Document may be brought, prior to the
Effective Date, in the U.S. Bankruptcy Court and, at any time, in the courts of the State of New York or of the United States of America for the Southern District of New York, and, by execution and delivery of this Agreement, each party hereto
hereby accepts for itself and in respect of its property, generally and unconditionally, the exclusive jurisdiction of the aforesaid courts, except that the Agents, Issuers, Lenders or Synthetic Investors may bring legal action or proceedings in
other appropriate jurisdictions with respect to the enforcement of its rights with respect to the Collateral. The parties hereto hereby irrevocably waive any objection, including any objection to the laying of venue or based on the grounds of
forum non conveniens, that any of them may now or hereafter have to the bringing of any such action or proceeding in such respective jurisdictions. 
  
 (b) The Borrower irrevocably consents to the service of any and all process in any such action or proceeding by the mailing (by registered or certified
mail, postage prepaid) of copies of such process to the Process Agent or the Borrower at its address specified in Section 11.8 (Notices, Etc.). The Borrower agrees that a final judgment in any such action or proceeding shall be
conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. 
  
 (c) Nothing contained in this Section 11.12 shall affect the right of the Administrative Agent, any Lender or any Synthetic Investor to serve
process in any other manner permitted by law or commence legal proceedings or otherwise proceed against the Borrower or any other Loan Party in any other jurisdiction. 
  
 (d) If for the purposes of obtaining judgment in any court it is necessary to convert a sum due hereunder in Dollars into
another currency, the parties hereto agree, to the fullest extent that they may effectively do so, that the rate of exchange used shall be that at which in accordance with normal banking procedures the Administrative Agent could purchase Dollars
with such other currency at the spot rate of exchange quoted by the Administrative Agent at 11:00 a.m. (New York time) on the Business Day preceding that on which final judgment is given, for the purchase of Dollars, for delivery two Business
Days thereafter. 
  

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 Section 11.13 Waiver of Jury Trial 
  
 EACH AGENT AND
EACH OF THE LENDERS, THE SYNTHETIC INVESTORS, THE ISSUERS AND THE
BORROWER IRREVOCABLY WAIVES TRIAL BY JURY IN ANY ACTION OR PROCEEDING
WITH RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT. 
  
 Section 11.14 Marshaling; Payments Set Aside 

 
 None of the Administrative Agent, any Lender, any Synthetic Investor or
any Issuer shall be under any obligation to marshal any assets in favor of the Borrower or any other party or against or in payment of any or all of the Obligations. To the extent that the Borrower makes a payment or payments to the Administrative
Agent, the Lenders, the Synthetic Investors or the Issuers or any such Person receives payment from the proceeds of the Collateral or exercises its rights of setoff, and such payment or payments or the proceeds of such enforcement or setoff or any
part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside or required to be repaid to a trustee, receiver or any other party, then to the extent of such recovery, the obligation or part thereof originally
intended to be satisfied, and all Liens, right and remedies therefor, shall be revived and continued in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred. 
  
 Section 11.15 Section Titles 
  
 The section titles contained in this Agreement are and shall be without
substantive meaning or content of any kind whatsoever and are not a part of the agreement between the parties hereto, except when used to reference such section. If a numbered reference to a clause, sub-clause or subsection hereof is immediately
followed by a reference in parenthesis to the title of a section hereof containing such clause, sub-clause or subsection, the reference is only to such clause, sub-clause or subsection and not to the section generally. If a numbered reference to a
section hereof is immediately followed by a reference in parenthesis to a section hereof, the title reference shall govern in case of direct conflict. 
  
 Section 11.16 Execution in Counterparts 
  
 This Agreement may be executed in any number of counterparts and by different parties in separate counterparts, each of which when so executed shall be
deemed to be an original and all of which taken together shall constitute one and the same agreement. Signature pages may be detached from multiple separate counterparts and attached to a single counterpart so that all signature pages are attached
to the same document. Delivery of an executed counterpart of a signature page of this Agreement by telecopy shall be effective as delivery of a manually executed counterpart hereof. 
  
 Section 11.17 Entire Agreement 
  
 This Agreement, together with all of the other Loan Documents and all certificates and documents delivered hereunder or
thereunder, embodies the entire agreement of the parties and supersedes all prior agreements and understandings relating 

  

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to the subject matter hereof. Delivery of an executed signature page of this Agreement by facsimile transmission shall be as effective as delivery of a
manually executed counterpart hereof. A set of the copies of this Agreement signed by all parties shall be lodged with the Borrower and the Administrative Agent. 
  
 Section 11.18 Confidentiality 
  
 (a) Each Lender, each Synthetic Investor and each Agent agree to keep information obtained by it pursuant hereto and the
other Loan Documents confidential in accordance with such Lender’s, such Synthetic Investor’s or such Agent’s, as the case may be, reasonable customary practices and agrees that it shall only use such information in connection with
the transactions contemplated by this Agreement and not disclose any such information other than (i) to such Lender’s, such Synthetic Investor’s or such Agent’s, as the case may be, employees, representatives and agents that are
or are expected to be involved in the evaluation of such information in connection with the transactions contemplated by this Agreement that are advised of the confidential nature of such information and agree to adhere to the confidentiality
provisions hereof, (ii) to the extent such information presently is or hereafter becomes available to such Lender, such Synthetic Investor or such Agent, as the case may be, on a non-confidential basis from a source other than the Borrower or
its Subsidiaries, Affiliates or agents, (iii) to the extent disclosure is required by law, regulation or judicial order or requested or required by bank regulators or auditors (provided that any Lender, Synthetic Investor or Agent who discloses
information pursuant to this clause (iii) shall have provided the Borrower with reasonable prior written notice of such disclosure, and, at the request and expense of the Borrower, shall have reasonably cooperated with the Borrower to obtain a
protective order or other appropriate protection or, if it so elects, the Borrower may waive compliance with the terms of this proviso, and, if such protective order or other protection is not obtained, or if the Borrower waives compliance with the
provisions hereof, such Lender, Synthetic Investor or Agent, as the case may be, may disclose only that portion of the information that it is legally required to disclose) or (iv) to assignees, participants and Special Purpose Vehicles that are
grantees of any option described in Section 11.2(f) (Assignments and Participations) (or potential assignees, participants or grantees) or to any pledgee referred to in Section 11.2(f)(ii) or to any actual or prospective
counterparty (or its advisors) to any securitization, swap or derivative transaction relating to the Borrower, its Subsidiaries or the Obligations that, in each case, agree to be bound by the provisions of this Section 11.18. 

 
 (b) The Agents, the Lenders and the Synthetic Investors acknowledge that
the Borrower and its Subsidiaries perform classified contracts funded by or for the benefit of the United States Federal government and, accordingly, neither the Borrower nor any Subsidiary will be obligated to release, disclose or otherwise make
available to any Agent or any Lender any classified or special nuclear material to any parties not in possession of a valid security clearance and authorized by the appropriate agency of the United States Federal government to receive such material.
The Agents, the Synthetic Investors and the Lenders agree that in connection with any exercise of a right or remedy the United States Federal government may remove classified information or government-issued property prior to any remedial action
implicating such classified information or 

  

 137 

 
government-issued property. Upon notice from the Borrower, the Agents, the Synthetic Investors and the Lenders shall take such steps in accordance with this
Agreement as may reasonably be requested by the Borrower to enable the Borrower or any Subsidiary thereof to comply with the Foreign Ownership Control or Influence requirements of the United States Federal government imposed from time to time.

  
 (c) Each of the Agents, the Lenders and the Synthetic
Investors acknowledges that (i) it has developed compliance procedures regarding the use of material non-public information and (ii) it will handle material non-public information in accordance with applicable law, including Federal and
state securities laws. 
  
 [Remainder of this page intentionally
left blank] 
  

 138 

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

			
	THE BABCOCK & WILCOX COMPANY
		
	 By:
	 	 /s/ James R. Easter

	 Name:
	 	James R. Easter
	 Title:
	 	Treasurer

			
	CREDIT SUISSE, CAYMAN ISLANDS BRANCH,
	as Administrative Agent, Lender, Synthetic Investor, Issuer and Collateral Agent
		
	 By:
	 	 /s/ Robert Hetu

	 Name:
	 	Robert Hetu
	 Title:
	 	Managing Director
		
	 By:
	 	 /s/ Cassandra Droogan

	 Name:
	 	Cassandra Droogan
	 Title:
	 	Vice President

			
	CREDIT SUISSE SECURITIES (USA) LLC,
	as Sole Lead Arranger and Sole Lead Bookrunner
		
	 By:
	 	 /s/ Robert Hetu

	 Name:
	 	Robert Hetu
	 Title:
	 	Managing Director
		
	 By:
	 	 /s/ Cassandra Droogan

	 Name:
	 	Cassandra Droogan
	 Title:
	 	Vice President

			
	JPMORGAN CHASE BANK, N.A.,
	as Syndication Agent, Lender and Issuer
		
	 By:
	 	 /s/ Dianne L. Russell

	 Name:
	 	Dianne L. Russell
	 Title:
	 	Vice President

			
	WACHOVIA BANK, NATIONAL ASSOCIATION,
	as Co-Documentation Agent and Lender
		
	By:	 	 /s/ M. Scott Hodges

	Name:	 	M. Scott Hodges
	Title:	 	Vice President

			
	THE BANK OF NOVA SCOTIA,
	as Co-Documentation Agent, Synthetic Investor and a Lender
		
	By:	 	 /s/ V. Gibson

	Name:	 	V. Gibson
	Title:	 	Assistant Agent

			
	WELLS FARGO BANK, N.A.,
	as a Synthetic Investor, Lender and Issuer
		
	By:	 	 /s/ Philip C. Lauinger III

	Name:	 	Philip C. Lauinger III
	Title:	 	Vice President

			
	PNC BANK, NATIONAL ASSOCIATION,
	as Lender, Synthetic Investor and Issuer
		
	By:	 	 /s/ James A. Fink

	Name:	 	James A. Fink
	Title:	 	Managing Director

			
	BANK OF AMERICA, N.A.,
	as a Lender and Issuer
		
	By:	 	 /s/ Robert W. Troutman

	Name:	 	Robert W. Troutman
	Title:	 	Managing Director

			
	CALYON, NEW YORK BRANCH,
	as a Synthetic Investor, Lender and Issuer
		
	By:	 	 /s/ Page Dillehunt

	Name:	 	Page Dillehunt
	Title:	 	Director
		
	By:	 	 /s/ Bertrand Cord’homme

	Name:	 	Bertrand Cord’homme
	Title:	 	Director

			
	BANK OF SCOTLAND,
	as a Synthetic Investor and Lender
		
	 By:
	 	 /s/ Karen Welch

	 Name:
	 	Karen Welch
	 Title:
	 	Assistant Vice President

			
	NATEXIS BANQUES POPULAIRES,
	as a Synthetic Investor and Lender
		
	 By:
	 	 /s/ Renaud d’Herbes

	 Name:
	 	Renaud d’Herbes
	 Title:
	 	Senior Vice President / Regional Manager
		
	 By:
	 	 /s/ Louis P. LaVille, III

	 Name:
	 	Louis P. LaVille, III
	 Title:
	 	Vice President / Group Manager

			
	NATIONAL CITY BANK,
	as a Synthetic Investor and Lender
		
	By:	 	 /s/ Stephen Monto

	Name:	 	Stephen Monto
	Title:	 	Vice President

			
	WHITNEY NATIONAL BANK,
	as a Lender
		
	By:	 	 /s/ Larry C. Stephens, Jr.

	Name:	 	Larry C. Stephens, Jr.
	Title:	 	Vice President

			
	AMEGY BANK NATIONAL ASSOCIATION,
	as a Lender
		
	By:	 	 /s/ Carmen Jordan

	Name:	 	Carmen Jordan
	Title:	 	Senior Vice President

			
	COMPASS BANK,
	 as a Synthetic Investor and Lender

		
	 By:
	 	 /s/ Tom Brosig

	 Name:
	 	Tom Brosig
	 Title:
	 	Senior Vice President

			
	ALLIED IRISH BANKS, PLC.,
	as a Synthetic Investor and Lender
		
	 By:
	 	 /s/ Margaret Brennan

	 Name:
	 	Margaret Brennan
	 Title:
	 	Senior Vice PresidentPledge and Security Agreement

 EXHIBIT 10.5 
  

  
 PLEDGE AND SECURITY AGREEMENT 
  
 made by 
  
 THE BABCOCK & WILCOX COMPANY 
  
 and certain of its Subsidiaries 
  
 in favor of 
  
 CREDIT SUISSE, CAYMAN ISLANDS BRANCH, as Administrative Agent and Collateral
Agent 
  
 Dated as of February 22, 2006 
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	SECTION 1.	  	DEFINED TERMS	  	2
			
	1.1.    	  	Definitions	  	2
	 1.2.    
	  	Other Definitional Provisions	  	9
			
	SECTION 2.	  	GUARANTEE	  	10
			
	 2.1.    
	  	Guarantee	  	10
	 2.2.    
	  	Rights of Reimbursement, Contribution and Subrogation	  	11
	 2.3.    
	  	Amendments, etc. with respect to the Borrower Obligations	  	12
	 2.4.    
	  	Guarantee Absolute and Unconditional	  	13
	 2.5.    
	  	Reinstatement	  	13
	 2.6.    
	  	Payments	  	14
			
	SECTION 3.	  	GRANT OF SECURITY INTEREST; CONTINUING LIABILITY UNDER COLLATERAL	  	14
			
	SECTION 4.	  	REPRESENTATIONS AND WARRANTIES	  	15
			
	 4.1.    
	  	Representations in Credit Agreement	  	16
	 4.2.    
	  	Title; No Other Liens	  	16
	 4.3.    
	  	Perfected First Priority Liens	  	16
	 4.4.    
	  	Name; Jurisdiction of Organization, etc	  	17
	 4.5.    
	  	Inventory and Equipment	  	17
	 4.6.    
	  	Farm Products	  	17
	 4.7.    
	  	Investment Property	  	17
	 4.8.    
	  	Receivables	  	18
	 4.9.    
	  	Intellectual Property	  	18
	 4.10.    
	  	UCC Letters of Credit and UCC Letter of Credit Rights	  	20
	 4.11.    
	  	Commercial Tort Claims	  	20
	 4.12.    
	  	Contracts	  	20
			
	SECTION 5.	  	COVENANTS	  	21
			
	 5.1.    
	  	Covenants in Credit Agreement	  	21
	 5.2.    
	  	Delivery and Control of Instruments, Chattel Paper, Negotiable Documents, Investment Property	  	21
	 5.3.    
	  	Maintenance of Insurance	  	22
	 5.4.    
	  	Payment of Obligations	  	23
	 5.5.    
	  	Maintenance of Perfected Security Interest; Further Documentation	  	23
	 5.6.    
	  	Changes in Locations, Name, Jurisdiction of Incorporation, etc	  	23
	 5.7.    
	  	Notices	  	24
	 5.8.    
	  	Investment Property	  	24
	 5.9.    
	  	Receivables	  	25
	 5.10.    
	  	Intellectual Property	  	25
	 5.11.    
	  	Contracts	  	28
	5.12.    	  	Commercial Tort Claims	  	28

					
	 	  	 	  	Page

	SECTION 6.	  	REMEDIAL PROVISIONS	  	28
			
	6.1.    	  	Certain Matters Relating to Receivables	  	28
	6.2.    	  	Communications with Obligors; Grantors Remain Liable	  	29
	6.3.    	  	Pledged Securities	  	30
	6.4.    	  	Proceeds to be Turned Over To Collateral Agent	  	30
	6.5.    	  	Application of Proceeds	  	31
	6.6.    	  	Code and Other Remedies	  	31
	6.7.    	  	Registration Rights	  	33
	6.8.    	  	Deficiency	  	34
			
	SECTION 7.	  	THE COLLATERAL AGENT	  	34
			
	7.1.    	  	Collateral Agent’s Appointment as Attorney-in-Fact, etc	  	34
	7.2.    	  	Duty of Collateral Agent	  	36
	7.3.    	  	Execution of Financing Statements	  	36
	7.4.    	  	Authority of Collateral Agent	  	37
	7.5.    	  	Appointment of Co-Collateral Agents	  	37
			
	SECTION 8.	  	MISCELLANEOUS	  	37
			
	8.1.    	  	Amendments in Writing	  	37
	8.2.    	  	Notices	  	37
	8.3.    	  	No Waiver by Course of Conduct; Cumulative Remedies	  	37
	8.4.    	  	Enforcement Expenses; Indemnification	  	38
	8.5.    	  	Successors and Assigns	  	38
	8.6.    	  	Set-Off	  	38
	8.7.    	  	Counterparts	  	39
	8.8.    	  	Severability	  	39
	8.9.    	  	Section Headings	  	39
	8.10.    	  	Integration	  	39
	8.11.    	  	APPLICABLE LAW	  	39
	8.12.    	  	Submission to Jurisdiction; Waivers	  	39
	8.13.    	  	Acknowledgments	  	40
	8.14.    	  	Additional Grantors	  	40
	8.15.    	  	Releases	  	40
	8.16.    	  	WAIVER OF JURY TRIAL	  	41
		
	 SCHEDULE 4.3 — PERFECTED FIRST PRIORITY LIENS
	  	 
		
	 SCHEDULE 4.4 — NAME; JURISDICTION OF ORGANIZATION, ETC
	  	 
		
	 SCHEDULE 4.5 — INVENTORY AND EQUIPMENT
	  	 
		
	 SCHEDULE 4.7 — INVESTMENT PROPERTY
	  	 

  

 ii 

					
	 	  	 	  	Page

	 SCHEDULE 4.9 — INTELLECTUAL PROPERTY
	  	 
		
	 SCHEDULE 4.11 — COMMERCIAL TORT CLAIMS
	  	 
		
	 SCHEDULE 4.12 — EXCLUDED PLEDGED COLLATERAL
	  	 
		
	 SCHEDULE 8.2 — NOTICES
	  	 
		
	 EXHIBIT A — ACKNOWLEDGEMENT AND CONSENT
	  	 
		
	 EXHIBIT B-1 — INTELLECTUAL PROPERTY SECURITY AGREEMENT
	  	 
		
	 EXHIBIT B-2 — AFTER-ACQUIRED INTELLECTUAL PROPERTY SECURITY AGREEMENT
	  	 

  

 iii 

 PLEDGE AND SECURITY AGREEMENT, dated as of February 22, 2006, made by each of the signatories hereto
(together with any other grantor that may become a party hereto as provided herein, the “Grantors”), in favor of CREDIT SUISSE, CAYMAN ISLANDS BRANCH (“Credit Suisse”), as administrative agent (in such capacity and
together with its successors in such capacity, the “Administrative Agent”) and as collateral agent (in such capacity and together with its successors in such capacity, the “Collateral Agent”) for (i) the
Lenders (“Lenders”), the Synthetic Investors (“Synthetic Investors”) and the Issuers (“Issuers”) from time to time parties to the Credit Agreement, dated as of February 22, 2006 (as amended,
restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among The Babcock & Wilcox Company, a Delaware corporation (the “Borrower”), the Lenders, the Synthetic Investors and
the Issuers from time to time parties thereto, Credit Suisse Securities (USA) LLC, as sole lead arranger and sole bookrunner (in each such capacity, and together with its successors, the “Arranger”), Credit Suisse, as Administrative
Agent and Collateral Agent for the Lenders, the Synthetic Investors and the Issuers, JPMORGAN CHASE BANK, N.A., as syndication agent (the “Syndication Agent”) and WACHOVIA BANK, NATIONAL ASSOCIATION and THE BANK OF NOVA SCOTIA as
co-documentation agents (collectively, the “Co-Documentation Agents”), and (ii) the other Secured Parties (as hereinafter defined). 
  
 W I T N E S S E T H: 
  
 WHEREAS, pursuant to the Credit Agreement, the Lenders have severally agreed to make extensions of credit to the Borrower,
the Synthetic Investors have agreed to make Credit-Linked Deposits and participate in Letters of Credit and the Issuers have severally agreed to issue Letters of Credit upon the terms and subject to the conditions set forth therein; 
  
 WHEREAS, the Borrower is a member of an affiliated group of companies that
includes each other Grantor; 
  
 WHEREAS, the proceeds of the
extensions of credit and the issuance of Letters of Credit under the Credit Agreement will be used in part to enable the Borrower to make valuable transfers to one or more of the other Grantors in connection with the operation of their respective
businesses; 
  
 WHEREAS, the Borrower and the other Grantors are
engaged in related businesses, and each Grantor will derive substantial direct and indirect benefit from the making of the extensions of credit and issuance of Letters of Credit under the Credit Agreement; and 
  
 WHEREAS, it is a condition precedent to the obligations of the Lenders and
Synthetic Investors to make their respective extensions of credit to the Borrower, and the Issuers to issue their respective Letters of Credit under the Credit Agreement, that the Grantors shall have executed and delivered this Agreement to the
Collateral Agent for the ratable benefit of the Secured Parties; 
  
 NOW, THEREFORE, in consideration of the premises and to induce the Arranger, the Administrative Agent, the Collateral Agent, the Lenders, the Synthetic Investors and the Issuers to enter into the Credit Agreement and to induce the Lenders
and Synthetic 

 
Investors to make their respective extensions of credit thereunder, and the Issuers to issue their respective Letters of Credit thereunder, each Grantor
hereby agrees with the Administrative Agent and Collateral Agent, for the ratable benefit of the Secured Parties, as follows: 
  
 SECTION 1. DEFINED TERMS 
  
 1.1. Definitions. (a) Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to
them in the Credit Agreement, and the following terms are used herein as defined in the New York UCC (and if defined in more than one Article of the New York UCC, such terms shall have the meanings given in Article 9 thereof): Accounts, Account
Debtor, As-Extracted Collateral, Certificated Security, Chattel Paper, Commercial Tort Claim, Commodity Account, Commodity Contract, Commodity Intermediary, Documents, Deposit Account, Electronic Chattel Paper, Equipment, Farm Products, Financial
Asset, Fixtures, Goods, Instruments, Inventory, Money, Payment Intangibles, Securities Account, Securities Intermediary, Security, Security Entitlement, Supporting Obligations, Tangible Chattel Paper and Uncertificated Security. 
  
 (b) The following terms shall have the following meanings: 
  
 “Administrative Agent” shall have the meaning assigned to
such term in the preamble. 
  
 “After-Acquired
Intellectual Property” shall have the meaning assigned to such term in Section 5.10(k). 
  
 “Agreement” shall mean this Pledge and Security Agreement, as the same may be amended, restated, supplemented or otherwise modified from
time to time. 
  
 “Arranger” shall have the
meaning assigned to such term in the preamble. 
  
 “Borrower” shall have the meaning assigned to such term in the preamble. 
  
 “Borrower Obligations” shall mean the collective reference to the unpaid principal of and interest on (including interest accruing after
the maturity of the Loans and reimbursement obligations in respect of amounts drawn under Letters of Credit and interest accruing after the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or like
proceeding, relating to any Grantor, whether or not a claim for post-filing or post-petition interest is allowed in such proceeding) the Loans, any Letter of Credit Obligations (including any obligations of Borrower under any Loan Document to
provide cash collateral for Letter of Credit Obligations) and all other obligations and liabilities of the Grantors to the Arranger, any Agent, Lender, Synthetic Investor, Issuer or other Secured Party (or, in the case of Specified Hedge Agreements,
a Qualified Counterparty), whether direct or indirect, absolute or contingent, due or to become due, or now existing or hereafter incurred, which may arise under, out of, or in connection with the Credit Agreement, any other Loan Document, the
Letters of Credit, any Specified Hedge Agreement or any other document made, delivered or given in connection herewith or therewith, whether on account of principal, interest, reimbursement obligations, fees (including the Commitment Fee, Synthetic
Fee and the Fronting Fee), indemnities, reasonable out-of-pocket costs, expenses (including all reasonable fees, 

  

 2 

 
charges and disbursements of outside counsel to the Arranger, to any Agent or to any Lender, Synthetic Investor or Issuer that are required to be paid by any
Grantor pursuant to the Credit Agreement or any other Loan Document) or otherwise. 
  
 “Business Day” shall mean any day other than a Saturday, Sunday or day on which commercial banks in New York City are authorized or required by law to close. 
  
 “Closing Date” shall mean the date hereof. 
  
 “Collateral” shall have the meaning assigned to such term in
Section 3. 
  
 “Collateral Account” shall
mean any collateral account established by the Collateral Agent as provided in Sections 6.1 or 6.4. 
  
 “Collateral Account Funds” shall mean, collectively, the following: all funds (including all trust monies) and investments (including all
cash equivalents) credited to, or purchased with funds from, any Collateral Account and all certificates and instruments from time to time representing or evidencing such investments; all Money, notes, certificates of deposit, checks and other
instruments from time to time hereafter delivered to or otherwise possessed by the Collateral Agent for or on behalf of any Grantor in substitution for, or in addition to, any or all of the Collateral; and all interest, dividends, cash, instruments
and other property from time to time received in, receivable or otherwise distributed to the Collateral Account in respect of or in exchange for any or all of the items constituting Collateral. 
  
 “Collateral Agent” shall have the meaning assigned to such
term in the preamble. 
  
 “Contracts” shall mean
all contracts and agreements between any Grantor and any other person (in each case, whether written or oral, or third party or intercompany) as the same may be amended, assigned, extended, restated, supplemented, replaced or otherwise modified from
time to time including (i) all rights of any Grantor to receive moneys due and to become due to it thereunder or in connection therewith, (ii) all rights of any Grantor to receive proceeds of any insurance, indemnity, warranty or guaranty
with respect thereto, (iii) all rights of any Grantor to damages arising thereunder and (iv) all rights of any Grantor to terminate and to perform and compel performance of, such Contracts and to exercise all remedies thereunder.

  
 “Copyright Licenses” shall mean any
agreement, whether written or oral, naming any Grantor as licensor or licensee (including those listed in Schedule 4.9(a) (as such schedule may be amended or supplemented from time to time)), granting any right in, to or under any Copyright,
including the grant of rights to , publicly perform, display, copy, prepare derivative works or distribute under any Copyright. This term shall exclude implied licenses and any rights obtained or granted under a copyright pursuant to the doctrines
of first sale or estoppel. 
  
 “Copyrights” shall
mean (i) all copyrights arising under the laws of the United States, any other country, or union of countries, or any political subdivision of any of the foregoing, whether registered or unregistered and whether published or unpublished
(including those listed in Schedule 4.9(a) (as such schedule may be amended or supplemented from time to time)), all registrations and recordings thereof, and all applications in connection therewith and rights corresponding thereto throughout the
world, including all registrations, recordings and 

  

 3 

 
applications in the United States Copyright Office, and all Mask Works (as defined in 17 USC 901), (ii) the right to, and to obtain, all extensions and
renewals thereof, and the right to sue for past, present and future infringements of any of the foregoing, (iii) all proceeds of the foregoing, including license, royalties, income, payments, claims, damages, and proceeds of suit and
(iv) all other rights of any kind whatsoever accruing thereunder or pertaining thereto. 
  
 “Credit Agreement” shall have the meaning assigned to such term in the preamble. 
  
 “dollars” or “$” shall mean lawful money of the United States of America. 
  
 “Excluded Assets” shall mean: (i) any lease, license,
contract, property right or agreement to which any Grantor is a party or any of its rights or interests thereunder if and only for so long as the grant of a security interest hereunder shall constitute or result in a breach, termination or default
under any such lease, license, contract, property right or agreement (other than to the extent that any such term would be rendered ineffective pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the UCC of any relevant jurisdiction or any other
applicable law or principles of equity); provided, however, that such security interest shall attach immediately to any portion of such lease, license, contract, property rights or agreement that does not result in any of the
consequences specified above; (ii) all Security Entitlements, Securities Accounts, Deposit Accounts and Financial Assets to which any Grantor has any right, title or interest; and (iii) the Excluded Foreign Subsidiary Voting Stock.

  
 “Excluded Foreign Subsidiary Voting Stock”
shall mean Voting Stock of any Foreign Subsidiary in excess of 66% of the outstanding Voting Stock of such Foreign Subsidiary. 
  
 “General Intangibles” shall mean all “general intangibles” as such term is defined in Section 9-102(a)(42) of the New York
UCC and, in any event, including with respect to any Grantor, all rights of such Grantor to receive any tax refunds, all Hedging Contracts and all contracts, agreements, instruments and indentures and all licenses, permits, concessions, franchises
and authorizations issued by Governmental Authorities in any form, and portions thereof, to which such Grantor is a party or under which such Grantor has any right, title or interest or to which such Grantor or any property of such Grantor is
subject, as the same may from time to time be amended, supplemented, replaced or otherwise modified, including (i) all rights of such Grantor to receive moneys due and to become due to it thereunder or in connection therewith, (ii) all
rights of such Grantor to receive proceeds of any insurance, indemnity, warranty or guaranty with respect thereto, (iii) all rights of such Grantor to damages arising thereunder and (iv) all rights of such Grantor to terminate and to
perform and compel performance and to exercise all remedies thereunder. 
  
 “Grantors” shall have the meaning assigned to such term in the preamble. 
  
 “Guarantor Obligations” shall mean with respect to any Guarantor, all obligations and liabilities of such Guarantor which may arise under
or in connection with this Agreement (including Section 2) or any other Loan Document to which such Guarantor is a party, in each case whether on account of guarantee obligations, reimbursement obligations, fees, indemnities, 

  

 4 

 
reasonable out-of-pocket costs or expenses or otherwise (including reasonable fees and disbursements of outside counsel to any Secured Party that are
required to be paid by such Guarantor pursuant to the terms of this Agreement or any other Loan Document). 
  
 “Guarantors” shall mean the collective reference to each Grantor herein other than the Borrower. 
  
 “Insurance” shall mean all insurance policies covering any
or all of the Collateral (regardless of whether the Collateral Agent is the loss payee thereof). 
  
 “Intellectual Property” shall mean the collective reference to all intellectual property rights whether arising under United States,
multinational or foreign laws or otherwise, including the Copyrights, the Copyright Licenses, the Patents, the Patent Licenses, the Trademarks, the Trademark Licenses, the Trade Secrets and the Trade Secret Licenses. 
  
 “Intercompany Note” shall mean any promissory note
evidencing Indebtedness permitted to be incurred pursuant to Section 8.1(f) of the Credit Agreement with respect to any outstanding intercompany obligations and advances owed by or to a Loan Party. 
  
 “Investment Property” shall mean the collective reference to
(i) all “investment property” as such term is defined in Section 9-102(a)(49) of the New York UCC (other than any Excluded Foreign Subsidiary Voting Stock), including all Certificated Securities and Uncertificated Securities, all
Commodity Contracts and all Commodity Accounts and (ii) whether or not otherwise constituting “investment property,” all Pledged Notes, all Pledged Equity Interests and all Pledged Commodity Contracts. 
  
 “Issuers” shall have the meaning assigned to such term in
the preamble. 
  
 “Lenders” shall have the
meaning assigned to such term in the preamble. 
  
 “Licensed Intellectual Property” shall have the meaning assigned to such term in Section 4.9(a). 
  
 “Material Intellectual Property” shall have the meaning assigned to such term in Section 4.9(b). 
  
 “New York UCC” shall mean the Uniform Commercial Code as
from time to time in effect in the State of New York. 
  
 “Non-Assignable Contract” shall mean any Contract that either by its terms or by any federal or state statutory prohibition or otherwise purports to restrict or prevent the assignment thereof or granting of a security
interest therein (irrespective of whether such prohibition or restriction is enforceable under Sections 9-407 through 409 of the New York UCC). 
  
 “Obligations” shall mean (i) in the case of the Borrower, the Borrower Obligations, and (ii) in the case of each Guarantor, its
Guarantor Obligations. 
  

 5 

 “Owned Intellectual Property” shall have the meaning assigned to such term in
Section 4.9(a). 
  
 “Patent License” shall
mean all agreements, whether written or oral, providing for the grant by or to any Grantor of any right to make, use, import, offer for sale, or sell any invention covered in whole or in part by a Patent, including any of the foregoing listed in
Schedule 4.9(a) (as such schedule may be amended or supplemented from time to time). This term shall exclude implied licenses and any rights obtained or granted under a patent pursuant to the doctrines of exhaustion or estoppel. 
  
 “Patents” shall mean (i) all United States patents,
patents issued by any other country, union of countries or any political subdivision of any of the foregoing, and all reissues and extensions thereof, including any of the foregoing listed in Schedule 4.9(a) (as such schedule may be amended or
supplemented from time to time), (ii) all patent applications pending in the United States or any other country or union of countries or any political subdivision of any of the foregoing and all divisions, continuations and
continuations-in-part thereof, including any of the foregoing listed in Schedule 4.9(a) (as such schedule may be amended or supplemented from time to time), (iii) all rights to, and to obtain, any reissues or extensions of the foregoing and
(iv) all proceeds of the foregoing, including licenses, royalties, income, payments, claims, damages and proceeds of suit. 
  
 “person” shall mean any natural person, corporation, trust, business trust, joint venture, joint stock company, association company,
limited liability company, partnership, Governmental Authority or other entity. 
  
 “Pledged Alternative Equity Interests” shall mean all interests of any Grantor in participation or other interests in any equity or profits of any business entity and the certificates, if any,
representing such interests and all dividends, distributions, cash, warrants, rights, options, instruments, securities and other property or proceeds from time to time received, receivable or otherwise distributed in respect of or in exchange for
any or all of such interests and any other warrant, right or option to acquire any of the foregoing; provided, however, that Pledged Alternative Equity Interests shall not include any Pledged Stock, Pledged Partnership Interests,
Pledged LLC Interests or Pledged Trust Interests. 
  
 “Pledged Commodity Contracts” shall mean all commodity contracts listed on Schedule 4.7(c) (as such schedule may be amended from time to time) and all other commodity contracts to which any Grantor is party from time
to time. 
  
 “Pledged Equity Interests” shall
mean all Pledged Stock, Pledged LLC Interests, Pledged Partnership Interests, Pledged Trust Interests and Pledged Alternative Equity Interests. 
  
 “Pledged LLC Interests” shall mean all interests of any Grantor now owned or hereafter acquired in any limited liability company,
including all limited liability company interests listed on Schedule 4.7(a) hereto under the heading “Pledged LLC Interests” (as such schedule may be amended or supplemented from time to time) and the certificates, if any, representing
such limited liability company interests and any interest of such Grantor on the books and records of such limited liability company and all dividends, distributions, cash, 

  

 6 

 
warrants, rights, options, instruments, securities and other property or proceeds from time to time received, receivable or otherwise distributed in respect
of or in exchange for any or all of such limited liability company interests and any other warrant, right or option to acquire any of the foregoing. 
  
 “Pledged Notes” shall mean all promissory notes now owned or hereafter acquired by any Grantor, including those listed on Schedule 4.7(b)
(as such schedule may be amended or supplemented from time to time) and all Intercompany Notes at any time issued to or held by any Grantor (other than (i) promissory notes in an aggregate principal amount not to exceed $1,000,000 at any time
outstanding issued in connection with extensions of trade credit by any Grantor in the ordinary course of business and (ii) promissory notes constituting Cash Equivalents that are held by any Grantor). 
  
 “Pledged Partnership Interests” shall mean all interests of
any Grantor now owned or hereafter acquired in any general partnership, limited partnership, limited liability partnership or other partnership, including all partnership interests listed on Schedule 4.7(a) hereto under the heading “Pledged
Partnership Interests” (as such schedule may be amended or supplemented from time to time) and the certificates, if any, representing such partnership interests and any interest of such Grantor on the books and records of such partnership and
all dividends, distributions, cash, warrants, rights, options, instruments, securities and other property or proceeds from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such partnership
interests and any other warrant, right or option to acquire any of the foregoing. 
  
 “Pledged Securities” shall mean the collective reference to the Pledged Notes and the Pledged Equity Interests. 
  

“Pledged Stock” shall mean all shares of capital stock (other than Excluded Foreign Subsidiary Voting Stock) now owned or hereafter
acquired by any Grantor, including all shares of capital stock listed on Schedule 4.7(a) hereto under the heading “Pledged Stock” (as such schedule may be amended or supplemented from time to time), and the certificates, if any,
representing such shares and any interest of such Grantor in the entries on the books of the issuer of such shares and all dividends, distributions, cash, warrants, rights, options, instruments, securities and other property or proceeds from time to
time received, receivable or otherwise distributed in respect of or in exchange for any or all of such shares and any other warrant, right or option to acquire any of the foregoing. 
  
 “Pledged Trust Interests” shall mean all interests of any Grantor now owned or hereafter acquired in a
Delaware business trust or other trust, including all trust interests listed on Schedule 4.7(a) hereto under the heading “Pledged Trust Interests” (as such schedule may be amended or supplemented from time to time) and the certificates, if
any, representing such trust interests and any interest of such Grantor on the books and records of such trust or on the books and records of any securities intermediary pertaining to such interest and all dividends, distributions, cash, warrants,
rights, options, instruments, securities and other property or proceeds from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such trust interests and any other warrant, right or option to
acquire any of the foregoing. 
  

 7 

 “Proceeds” shall mean all “proceeds” as such term is defined in
Section 9-102(a)(64) of the New York UCC and, in any event, shall include all dividends or other income from the Investment Property, collections thereon or distributions or payments with respect thereto. 
  
 “Qualified Counterparty” shall mean, with respect to any
Specified Hedge Agreement, any counterparty thereto that, at the time such Specified Hedge Agreement was entered into, was a Lender, a Synthetic Investor, an Issuer, an Agent or an Affiliate thereof. 
  
 “Receivable” shall mean all Accounts and any other right to
payment for goods or other property sold, leased, licensed or otherwise disposed of or for services rendered, whether or not such right is evidenced by an Instrument or Chattel Paper or classified as a Payment Intangible and whether or not it has
been earned by performance. References herein to Receivables shall include any Supporting Obligation or collateral securing such Receivable. 
  
 “Secured Parties” shall mean, collectively, the Administrative Agent, the Collateral Agent, the Syndication Agent, the Co-Documentation
Agents, the Lenders, the Synthetic Investors, the Issuers and, with respect to any Specified Hedge Agreement, any Qualified Counterparty. 
  
 “Securities Act” shall mean the Securities Act of 1933, as amended. 
  
 “Specified Hedge Agreement” shall mean any Hedging Contract entered into by (i) the Borrower or any of
the Subsidiaries and (ii) a Qualified Counterparty. 
  
 “Subsidiary” shall have the meaning assigned to such term in the Credit Agreement. 
  
 “Syndication Agent” shall have the meaning assigned to such term in the preamble. 
  
 “Synthetic Investors” shall have the meaning assigned to
such term in the preamble. 
  
 “Trademark
License” shall mean any agreement, whether written or oral, providing for the grant by or to any Grantor of any right in, to or under any Trademark, including any of the foregoing referred to in Schedule 4.9(a) (as such schedule may be
amended or supplemented from time to time). This term shall exclude implied licenses and any rights obtained or granted under a trademark pursuant to the doctrines of first sale or estoppel. 
  
 “Trademarks” shall mean (i) all trademarks, trade
names, corporate names, company names, business names, fictitious business names, trade styles, service marks, logos, designs and other source or business identifiers, and all goodwill associated therewith, now existing or hereafter adopted or
acquired, all registrations and recordings thereof, and all applications in connection therewith, whether in the United States Patent and Trademark Office or in any similar office or agency of the United States, any State thereof or any other
country, union of countries, or any political subdivision of any of the foregoing, or otherwise, and all common-law rights related thereto, including any of the foregoing listed in Schedule 4.9(a) (as 

  

 8 

 
such schedule may be amended or supplemented from time to time), (ii) the right to, and to obtain, all renewals thereof, (iii) the goodwill of the
business symbolized by the foregoing and (iv) the right to sue for past, present and future infringements or dilution of any of the foregoing or for any injury to goodwill, and all proceeds of the foregoing, including royalties, income,
payments, claims, damages and proceeds of suit. 
  
 “Trade
Secret License” shall mean any agreement, whether written or oral, providing for the grant by or to any Grantor of any right in, to or under any Trade Secret, including any of the foregoing listed in Schedule 4.9(a) (as such schedule may be
amended or supplemented from time to time). This term shall exclude implied licenses and any rights obtained or granted under a trade secret pursuant to the doctrine of estoppel. 
  
 “Trade Secrets” shall mean (i) all trade secrets and all other confidential or proprietary information
and know how whether or not reduced to a writing or other tangible form, (ii) all documents and things embodying, incorporating or describing such Trade Secrets, and (iii) the right to sue for past, present and future misappropriations of
any Trade Secret and all proceeds of the foregoing, including royalties, income, payments, claims, damages and proceeds of suit. 
  
 “UCC Letter of Credit” shall mean “Letter of Credit” (and in plural, “Letters of Credit”) as defined in the New York
UCC. 
  
 “UCC Letter of Credit Rights” shall mean
“Letter of Credit Rights” as defined in the New York UCC (and if defined in more than one Article of the New York UCC, such terms shall have the meanings given in Article 9 thereof). 
  
 1.2. Other Definitional Provisions. (a) The words
“hereof,” “herein,” “hereto” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement, and Section
and Schedule references are to the specific provisions of this Agreement unless otherwise specified. 
  
 (b) The meanings given to terms defined herein shall be equally applicable to both the singular and plural forms of such terms. 
  
 (c) Where the context requires, terms relating to the Collateral or any part
thereof, when used in relation to a Grantor, shall refer to the property or assets such Grantor has granted as Collateral or the relevant part thereof. 
  
 (d) The expressions “payment in full,” “paid in full” and any other similar terms or phrases when used herein with respect to the
Borrower Obligations or the Guarantor Obligations shall mean the unconditional, final and irrevocable payment in full, in immediately available funds, of all of the Borrower Obligations or the Guarantor Obligations, as the case may be, in each case,
unless otherwise specified, other than indemnification and other contingent obligations not then due and payable. 
  
 (e) The words “include,” “includes” and “including,” and words of similar import, shall not be limiting and shall be deemed
to be followed by the phrase “without limitation.” 
  

 9 

 (f) All references to the Lenders herein shall, where appropriate, include any Lender, any Synthetic
Investor, the Issuers, the Administrative Agent, the Collateral Agent, the Syndication Agent or any Documentation Agent or, in the case of any Specified Hedge Agreement, any Qualified Counterparty. 
  
 SECTION 2. GUARANTEE 
  
 2.1. Guarantee. 
  
 (a) Each of the Guarantors hereby, jointly and severally, unconditionally
and irrevocably, guarantees to the Administrative Agent, for the ratable benefit of the Secured Parties and their respective successors, indorsees, transferees and assigns, the prompt and complete payment and performance by the Borrower when due
(whether at the stated maturity, by acceleration or otherwise) of the Borrower Obligations. 
  
 (b) If and to the extent required in order for the Obligations of any Guarantor to be enforceable under applicable federal, state and other laws relating to the insolvency of debtors, the maximum liability of such
Guarantor hereunder shall be limited to the greatest amount which can lawfully be guaranteed by such Guarantor under such laws, after giving effect to any rights of contribution, reimbursement and subrogation arising under Section 2.2. Each
Guarantor acknowledges and agrees that, to the extent not prohibited by applicable law, (i) such Guarantor (as opposed to its creditors, representatives of creditors or bankruptcy trustee, including such Guarantor in its capacity as debtor in
possession exercising any powers of a bankruptcy trustee) has no personal right under such laws to reduce, or request any judicial relief that has the effect of reducing, the amount of its liability under this Agreement, (ii) such Guarantor (as
opposed to its creditors, representatives of creditors or bankruptcy trustee, including such Guarantor in its capacity as debtor in possession exercising any powers of a bankruptcy trustee) has no personal right to enforce the limitation set forth
in this Section 2.1(b) or to reduce, or request judicial relief reducing, the amount of its liability under this Agreement, and (iii) the limitation set forth in this Section 2.1(b) may be enforced only to the extent required under
such laws in order for the obligations of such Guarantor under this Agreement to be enforceable under such laws and only by or for the benefit of a creditor, representative of creditors or bankruptcy trustee of such Guarantor or other person
entitled, under such laws, to enforce the provisions thereof. 
  
 (c) Each Guarantor agrees that the Borrower Obligations may at any time and from time to time be incurred or permitted in an amount exceeding the maximum liability of such Guarantor under Section 2.1(b) without impairing the guarantee
contained in this Section 2 or affecting the rights and remedies of any Secured Party hereunder. 
  
 (d) The guarantee contained in this Section 2 shall remain in full force and effect until payment in full of the Obligations, notwithstanding that
from time to time during the term of the Credit Agreement the Borrower may be free from any Borrower Obligations. 
  
 (e) No payment made by the Borrower, any of the Guarantors, any other guarantor or any other person or received or collected by any Secured Party from the
Borrower, any of the Guarantors, any other guarantor or any other person by virtue of any action or 

  

 10 

 
proceeding or any set-off or appropriation or application at any time or from time to time in reduction of or in payment of the Borrower Obligations shall be
deemed to modify, reduce, release or otherwise affect the liability of any Guarantor hereunder which shall, notwithstanding any such payment (other than any payment made by such Guarantor in respect of the Borrower Obligations or any payment
received or collected from such Guarantor in respect of the Borrower Obligations), remain liable for the Borrower Obligations up to the maximum liability of such Guarantor hereunder until the Borrower Obligations (other than Obligations in respect
of any Specified Hedge Agreement) are paid in full, no Letter of Credit shall be outstanding (other than Letters of Credit that have been cash collateralized in accordance with the terms of the Credit Agreement) under the Credit Agreement and all
commitments to extend credit under the Credit Agreement shall have been terminated or have expired. 
  
 2.2. Rights of Reimbursement, Contribution and Subrogation. In case any payment is made on account of the Obligations by any Grantor or is received
or collected on account of the Obligations from any Grantor or its property: 
  
 (a) If such payment is made by the Borrower or from its property, then, if and to the extent such payment is made on account of Obligations arising from or relating to a Loan or other extension of credit made to the
Borrower or a Letter of Credit issued for the account of the Borrower, the Borrower shall not be entitled (i) to demand or enforce reimbursement or contribution in respect of such payment from any other Grantor or (ii) to be subrogated to
any claim, interest, right or remedy of any Secured Party against any other person, including any other Grantor or its property. 
  
 (b) If such payment is made by a Guarantor or from its property, such Guarantor shall be entitled, subject to and upon payment in full of the Obligations,
(i) to demand and enforce reimbursement for the full amount of such payment from the Borrower and (ii) to demand and enforce contribution in respect of such payment from each other Guarantor that has not paid its fair share of such
payment, as necessary to ensure that (after giving effect to any enforcement of reimbursement rights provided hereby) each Guarantor pays its fair share of the unreimbursed portion of such payment. For this purpose, the fair share of each Guarantor
as to any unreimbursed payment shall be determined based on an equitable apportionment of such unreimbursed payment among all Guarantors based on the relative value of their assets and any other equitable considerations deemed appropriate by a court
of competent jurisdiction. 
  
 (c) If and whenever (after payment
in full of the Obligations) any right of reimbursement or contribution becomes enforceable by any Grantor against any other Grantor under Sections 2.2(a) and 2.2(b), such Grantor shall be entitled, subject to and upon payment in full of the
Obligations, to be subrogated (equally and ratably with all other Grantors entitled to reimbursement or contribution from any other Grantor as set forth in this Section 2.2) to any security interest that may then be held by the Collateral Agent
upon any Collateral granted to it in this Agreement. Such right of subrogation shall be enforceable solely against the Grantors, and not against the Secured Parties, and neither the Collateral Agent nor any other Secured Party shall have any duty
whatsoever to warrant, ensure or protect any such right of subrogation or to obtain, perfect, maintain, hold, enforce or retain any Collateral for any purpose related to any such right of subrogation. If subrogation is demanded by any Grantor, then
(after payment in full of the Obligations) the Collateral Agent shall deliver to the Grantors making such demand, or to 

  

 11 

 
a representative of such Grantors or of the Grantors generally, an instrument reasonably satisfactory to the Collateral Agent transferring, on a quitclaim
basis without any recourse, representation, warranty or obligation whatsoever, whatever security interest the Collateral Agent then may hold in whatever Collateral may then exist that was not previously released or disposed of by the Collateral
Agent. 
  
 (d) All rights and claims arising under this
Section 2.2 or based upon or relating to any other right of reimbursement, indemnification, contribution or subrogation that may at any time arise or exist in favor of any Grantor as to any payment on account of the Obligations made by it or
received or collected from its property shall be fully subordinated in all respects to the prior payment in full of all of the Obligations. Until payment in full of the Obligations, no Grantor shall demand or receive any collateral security, payment
or distribution whatsoever (whether in cash, property or securities or otherwise) on account of any such right or claim. If any such payment or distribution is made or becomes available to any Grantor in any bankruptcy case or receivership,
insolvency or liquidation proceeding, such payment or distribution shall be delivered by the person making such payment or distribution directly to the Collateral Agent, for application to the payment of the Obligations. If any such payment or
distribution is received by any Grantor, it shall be held by such Grantor in trust, as trustee of an express trust for the benefit of the Secured Parties, and shall forthwith be transferred and delivered by such Grantor to the Collateral Agent, in
the exact form received and, if necessary, duly endorsed. 
  
 (e)
The obligations of the Grantors under the Loan Documents, including their liability for the Obligations and the enforceability of the security interests granted thereby, are not contingent upon the validity, legality, enforceability, collectibility
or sufficiency of any right of reimbursement, contribution or subrogation arising under this Section 2.2. The invalidity, insufficiency, unenforceability or uncollectibility of any such right shall not in any respect diminish, affect or impair
any such obligation or any other claim, interest, right or remedy at any time held by any Secured Party against any Guarantor or its property. The Secured Parties make no representations or warranties in respect of any such right and shall have no
duty to assure, protect, enforce or ensure any such right or otherwise relating to any such right. 
  
 (f) Each Grantor reserves any and all other rights of reimbursement, contribution or subrogation at any time available to it as against any other Grantor,
but (i) the exercise and enforcement of such rights shall be subject to Section 2.2(d) and (ii) neither the Collateral Agent nor any other Secured Party shall ever have any duty or liability whatsoever in respect of any such right,
except as provided in Section 2.2(c). 
  
 2.3. Amendments,
etc. with respect to the Borrower Obligations. Each Guarantor shall remain obligated hereunder notwithstanding that, without any reservation of rights against any Guarantor and without notice to or further assent by any Guarantor, any demand for
payment of any of the Borrower Obligations made by any Secured Party may be rescinded by such Secured Party and any of the Borrower Obligations continued, and the Borrower Obligations, or the liability of any other person upon or for any part
thereof, or any collateral security or guarantee therefor or right of offset with respect thereto, may, from time to time, in whole or in part, be renewed, increased, extended, amended, modified, accelerated, compromised, waived, surrendered or
released by any Secured Party, and the Credit Agreement and the other Loan Documents and any other documents executed and delivered in connection 

  

 12 

 
therewith may be amended, modified, supplemented or terminated, in whole or in part, as the parties thereto may deem advisable from time to time, and any
collateral security, guarantee or right of offset at any time held by any Secured Party for the payment of the Borrower Obligations may be sold, exchanged, waived, surrendered or released. No Secured Party shall have any obligation to protect,
secure, perfect or insure any Lien at any time held by it as security for the Borrower Obligations or for the guarantee contained in this Section 2 or any property subject thereto. 
  
 2.4. Guarantee Absolute and Unconditional. Each Guarantor waives any and all notice of the creation, renewal,
extension or accrual of any of the Borrower Obligations and notice of or proof of reliance by any Secured Party upon the guarantee contained in this Section 2 or acceptance of the guarantee contained in this Section 2; the Borrower
Obligations, and any of them, shall conclusively be deemed to have been created, contracted or incurred, or renewed, extended, amended or waived, in reliance upon the guarantee contained in this Section 2; and all dealings between the Borrower
and any of the Guarantors, on the one hand, and the Secured Parties, on the other hand, likewise shall be conclusively presumed to have been had or consummated in reliance upon the guarantee contained in this Section 2. Each Guarantor waives
diligence, presentment, protest, demand for payment and notice of default or nonpayment to or upon the Borrower or any of the Guarantors with respect to the Borrower Obligations. Each Guarantor understands and agrees that the guarantee contained in
this Section 2 shall be construed as a continuing, absolute and unconditional guarantee of payment and performance without regard to (a) the validity or enforceability of the Credit Agreement or any other Loan Document, any of the Borrower
Obligations or any other collateral security therefor or guarantee or right of offset with respect thereto at any time or from time to time held by any Secured Party, (b) any defense, set-off or counterclaim (other than a defense of payment or
performance hereunder) which may at any time be available to or be asserted by the Borrower or any other person against any Secured Party, or (c) any other circumstance whatsoever (with or without notice to or knowledge of the Borrower or such
Guarantor) which constitutes, or might be construed to constitute, an equitable or legal discharge of the Borrower for the Borrower Obligations, or of such Guarantor under the guarantee contained in this Section 2, in bankruptcy or in any other
instance. When making any demand hereunder or otherwise pursuing its rights and remedies hereunder against any Guarantor, any Secured Party may, but shall be under no obligation to, make a similar demand on or otherwise pursue such rights and
remedies as it may have against the Borrower, any other Guarantor or any other person or against any collateral security or guarantee for the Borrower Obligations or any right of offset with respect thereto, and any failure by any Secured Party to
make any such demand, to pursue such other rights or remedies or to collect any payments from the Borrower, any other Guarantor or any other person or to realize upon any such collateral security or guarantee or to exercise any such right of offset,
or any release of the Borrower, any other Guarantor or any other person or any such collateral security, guarantee or right of offset, shall not relieve any Guarantor of any obligation or liability hereunder, and shall not impair or affect the
rights and remedies, whether express, implied or available as a matter of law, of any Secured Party against any Guarantor. For the purposes hereof “demand” shall include the commencement and continuance of any legal proceedings.

  
 2.5. Reinstatement. The guarantee contained in this
Section 2 shall continue to be effective, or be reinstated, as the case may be, if at any time payment, or any part thereof, of any of the Borrower Obligations is rescinded or must otherwise be restored or returned by any 

  

 13 

 
Secured Party upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of the Borrower or any Guarantor, or upon or as a result of the
appointment of a receiver, intervenor or conservator of, or trustee or similar officer for, the Borrower or any Guarantor or any substantial part of its property, or otherwise, all as though such payments had not been made. 
  
 2.6. Payments. Each Guarantor hereby guarantees that payments
hereunder will be paid to the Collateral Agent without set-off or counterclaim in Dollars in immediately available funds at the office of the Collateral Agent as specified in the Credit Agreement. 
  
 SECTION 3. GRANT OF SECURITY INTEREST; 
 CONTINUING LIABILITY UNDER COLLATERAL 
  
 (a) Each Grantor hereby assigns and transfers to the Collateral Agent, and hereby grants to the Collateral Agent, for the ratable benefit of the Secured
Parties, a security interest in all of the personal property of such Grantor, including such Grantor’s right, title and interest in and to the following property, in each case, wherever located and whether now owned or at any time hereafter
acquired by such Grantor or in which such Grantor now has or at any time in the future may acquire any right, title or interest (collectively, the “Collateral”), as collateral security for the prompt and complete payment and
performance when due (whether at the stated maturity, by acceleration or otherwise) of such Grantor’s Obligations: 
  
 (i) all Accounts; 
  
 (ii) all As-Extracted Collateral; 
  
 (iii) all Chattel Paper; 
  
 (iv) all Collateral Accounts and all Collateral Account Funds; 
  
 (v) all Commercial Tort Claims from time to time specifically described on Schedule 4.11; 
  
 (vi) all Contracts; 
  
 (vii) all Documents; 
  
 (viii) all Equipment; 
  
 (ix) all Fixtures; 
  
 (x) all General Intangibles; 
  
 (xi) all Goods; 
  
 (xii) all Instruments; 
  
 (xiii) all Insurance; 
  
 (xiv) all Intellectual Property; 
  

 14 

 (xv) all Inventory; 
  
 (xvi) all Investment Property; 
  
 (xvii) all UCC Letters of Credit and UCC Letter of Credit Rights; 
  
 (xviii) all books, records, ledger cards, files,
correspondence, customer lists, blueprints, technical specifications, manuals, computer software, computer printouts, tapes, disks and other electronic storage media and related data processing software and similar items that at any time pertain to
or evidence or contain information relating to any of the Collateral or are otherwise necessary or helpful in the collection thereof or realization thereupon; and 
  
 (xix) to the extent not otherwise included, all other property, whether tangible or intangible, of the
Grantor and all Proceeds, goodwill, products, accessions, rents and profits of any and all of the foregoing and all collateral security, Supporting Obligations and guarantees given by any person with respect to any of the foregoing; 
  
 provided that, notwithstanding any other provision set forth in this
Section 3, this Agreement shall not, at any time, constitute a grant of a security interest in any property that is, at such time, an Excluded Asset, and the term “Collateral” and each of the defined terms incorporated therein shall
exclude the Excluded Assets. 
  
 (b) Notwithstanding anything
herein to the contrary, (i) each Grantor shall remain liable for all obligations under and in respect of the Collateral and nothing contained herein is intended or shall be a delegation of duties to the Collateral Agent or any other Secured
Party, (ii) each Grantor shall remain liable under and each of the agreements included in the Collateral, including any Receivables, any Contracts and any agreements relating to Pledged Partnership Interests or Pledged LLC Interests, to perform
all of the obligations undertaken by it thereunder all in accordance with and pursuant to the terms and provisions thereof and neither the Collateral Agent nor any other Secured Party shall have any obligation or liability under any of such
agreements by reason of or arising out of this Agreement or any other document related hereto nor shall the Collateral Agent nor any other Secured Party have any obligation to make any inquiry as to the nature or sufficiency of any payment received
by it or have any obligation to take any action to collect or enforce any rights under any agreement included in the Collateral, including any agreements relating to any Receivables, any Contracts or any agreements relating to Pledged Partnership
Interests or Pledged LLC Interests and (iii) the exercise by the Collateral Agent of any of its rights hereunder shall not release any Grantor from any of its duties or obligations under the contracts and agreements included in the Collateral,
including any agreements relating to any Receivables, any Contracts and any agreements relating to Pledged Partnership Interests or Pledged LLC Interests. 
  
 SECTION 4. REPRESENTATIONS AND WARRANTIES 
  
 To induce the Arranger, the Administrative Agent, the Collateral Agent, the Syndication Agent, the Co-Documentation Agents, the Lenders, the Synthetic
Investors and the Issuers to enter into the Credit Agreement and to induce (i) the Lenders and the Synthetic Investors to make their respective extensions of credit thereunder and (ii) the Issuers to issue 

  

 15 

 
their respective Letters of Credit thereunder, each Grantor hereby represents and warrants to the Secured Parties that: 
  
 4.1. Representations in Credit Agreement. In the case of each
Guarantor, the representations and warranties set forth in Article IV of the Credit Agreement as they relate to such Guarantor or to the Loan Documents to which such Guarantor is a party, each of which is hereby incorporated herein by reference, are
true and correct, in all material respects, except for representations and warranties expressly stated to relate to a specific earlier date, in which case such representations and warranties shall be true and correct in all material respects as of
such earlier date, and the Secured Parties shall be entitled to rely on each of them as if they were fully set forth herein, provided that each reference in each such representation and warranty to the Borrower’s knowledge shall, for the
purposes of this Section 4.l, be deemed to be a reference to such Guarantor’s knowledge. 
  
 4.2. Title; No Other Liens. Such Grantor owns or licenses or otherwise has the right to use each item of the Collateral free and clear of any and
all Liens, including Liens arising as a result of such Grantor becoming bound (as a result of merger or otherwise) as grantor under a security agreement entered into by another person, except for Liens expressly permitted by Section 8.2 (Liens,
Etc.) of the Credit Agreement. No effective financing statement, mortgage or other public notice indicating the existence of a Lien with respect to all or any part of the Collateral is on file or of record in any public office, except such as have
been filed in favor of the Collateral Agent, for the ratable benefit of the Secured Parties, pursuant to this Agreement or as are expressly permitted by the Credit Agreement. 
  
 4.3. Perfected First Priority Liens. The security interests granted pursuant to this Agreement (a) upon
completion of the filings and other actions specified on Schedule 4.3 (all of which, in the case of all filings and other documents referred to on said Schedule, have been delivered to the Collateral Agent in duly completed and duly executed form,
as applicable, and may be filed by the Collateral Agent at any time) and payment of all filing fees, will constitute valid fully perfected security interests in all of the Collateral in favor of the Collateral Agent, for the ratable benefit of the
Secured Parties, as collateral security for such Grantor’s Obligations, enforceable in accordance with the terms hereof, to the extent such security interest in such Collateral can be perfected by (i) the filing of a financing statement
under the Uniform Commercial Code of any jurisdiction, (ii) the filing with the United States Patent and Trademark Office or the United States Copyright Office of an Intellectual Property Security Agreement, or (iii) the possession of such
Collateral, and (b) are prior to all other Liens on the Collateral, except for Liens expressly permitted by Section 8.2 of the Credit Agreement. Without limiting the foregoing, each Grantor has taken all actions necessary or desirable,
including those specified in Section 5.2 to (i) establish the Collateral Agent’s “control” (within the meanings of Sections 8-106 and 9-106 of the New York UCC) over any portion of the Investment Property constituting
Certificated Securities, Uncertificated Securities (each as defined in the New York UCC), other than any such Investment Property issued by a Foreign Subsidiary, (ii) establish the Collateral Agent’s “control” (within the meaning
of Section 9-107 of the New York UCC) over all UCC Letter of Credit Rights, (iii) establish the Collateral Agent’s control (within the meaning of Section 9-105 of the New York UCC) over all Electronic Chattel Paper and
(iv) establish the Collateral Agent’s “control” (within the meaning of Section 16 of the Uniform Electronic Transaction Act as in effect in the applicable jurisdiction “UETA”) over all “transferable
records” (as defined in UETA). 
  

 16 

 4.4. Name; Jurisdiction of Organization, etc. On the date hereof, such Grantor’s exact legal
name (as indicated on the public record of such Grantor’s jurisdiction of formation or organization), jurisdiction of organization, organizational identification number, if any, and the location of such Grantor’s chief executive office or
sole place of business are specified on Schedule 4.4. Each Grantor is organized solely under the law of the jurisdiction so specified and has not filed any certificates of domestication, transfer or continuance in any other jurisdiction. Except as
otherwise indicated on Schedule 4.4, the jurisdiction of each such Grantor’s organization of formation is required to maintain a public record showing the Grantor to have been organized or formed. Except as specified on Schedule 4.4, as of the
Closing Date no such Grantor has changed its name, jurisdiction of organization, chief executive office or sole place of business or its corporate structure in any way (e.g., by merger, consolidation, change in corporate form or otherwise) within
the past five years and has not within the last five years become bound (whether as a result of merger or otherwise) as a grantor under a security agreement entered into by another person, which has not heretofore been terminated. 
  
 4.5. Inventory and Equipment. (a) On the date hereof, the
material Inventory and Equipment (other than mobile goods, Inventory in transit, and Inventory and Equipment located outside the United States of America) that is included in the Collateral are kept at the locations listed on Schedule 4.5.

  
 (b) Any Inventory now or hereafter produced by any Grantor
included in the Collateral have been and will be produced in compliance in all material respects with the requirements of all applicable laws and regulations, including the Fair Labor Standards Act, as amended. 
  
 (c) No material portion of the Inventory or Equipment that is included in the
Collateral is in the possession of an issuer of a negotiable document (as defined in Section 7-104 of the New York UCC) therefor or is otherwise in the possession of any bailee or warehouseman. 
  
 4.6. Farm Products. None of the Collateral constitutes, or is the
Proceeds of, Farm Products. 
  
 4.7. Investment Property.
(a) Schedule 4.7(a) hereto sets forth under the headings “Pledged Stock,” “Pledged LLC Interests,” “Pledged Partnership Interests” and “Pledged Trust Interests,” respectively, all of the Pledged Stock,
Pledged LLC Interests, Pledged Partnership Interests and Pledged Trust Interests owned by any Grantor as of the Closing Date, and such Pledged Equity Interests constitute the percentage of issued and outstanding shares of stock, percentage of
membership interests, percentage of partnership interests or percentage of beneficial interest of the respective issuers thereof indicated on such schedule. Schedule 4.7(b) sets forth under the heading “Pledged Notes” all of the Pledged
Notes owned by any Grantor as of the Closing Date, and all of such Pledged Notes have been duly authorized, authenticated or issued, and delivered and are the legal, valid and binding obligation of the issuers thereof enforceable in accordance with
their terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to 

  

 17 

 
general principals of equity, regardless of whether considered in a proceeding in equity or at law, and constitute all of the issued and outstanding
inter-company indebtedness evidenced by an instrument or certificated security of the respective issuers thereof owing to such Grantor. 
  
 (b) The shares of Pledged Equity Interests pledged by such Grantor hereunder constitute all of the issued and outstanding shares of all classes of Equity
Interests owned by such Grantor in each issuer thereof (other than Excluded Foreign Subsidiary Voting Stock). 
  
 (c) The Pledged Equity Interests have been duly and validly issued and, except as set forth on Schedule 4.7(a) hereto, are fully paid and nonassessable.

  
 (d) Such Grantor is the record and beneficial owner of, and
has good and marketable title to, the Investment Property pledged by it hereunder, free of any and all Liens or options in favor of, or claims of, any other person, except Liens expressly permitted by Section 8.2 of the Credit Agreement, and
there are no outstanding warrants, options or other rights to purchase, or shareholder, voting trust or similar agreements outstanding with respect to, or property that is convertible into, or that requires the issuance or sale of, any Pledged
Equity Interests. 
  
 (e) Each Subsidiary of the Borrower that is
an issuer of Pledged Securities that is not a Grantor hereunder has executed and delivered to the Collateral Agent an Acknowledgment and Consent, in substantially the form of Exhibit A, to the pledge of the Pledged Securities pursuant to this
Agreement. 
  
 4.8. Receivables. (a) No amount payable to
such Grantor under or in connection with any Receivable in excess of $1,000,000 that is included in the Collateral is evidenced by any Instrument or Tangible Chattel Paper which has not been delivered to the Collateral Agent or constitutes
Electronic Chattel Paper that has not been subjected to the control (within the meaning of Section 9-105 of the New York UCC) of the Collateral Agent. 
  
 (b) Each Receivable that is included in the Collateral (i) is and will be the legal, valid and binding obligation of the Account Debtor in respect
thereof, representing an unsatisfied obligation of such Account Debtor, (ii) is and will be enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting
creditors’ rights generally and subject to general principals of equity, regardless of whether considered in a proceeding in equity or at law, (iii) is not and will not be subject to any setoffs, defenses, taxes, counterclaims (except with
respect to refunds, returns and allowances in the ordinary course of business) and (iv) is and will be in compliance with all applicable laws and regulations, except where the failure to comply with this Section 4.8(b) with respect to each
Receivable would not reasonably be expected to have a Material Adverse Effect. 
  
 4.9. Intellectual Property. (a) Schedule 4.9(a) lists all Copyrights, Patents, and Trademarks which are registered with the U.S. Patent and Trademark Office or the U.S. Copyright Office or are the subject
of an application for registration with any such Governmental Authority, in each case which is owned by such Grantor in its own name on the date hereof (collectively, the “Owned Intellectual Property”). Except as set forth in
Schedule 4.9(a), such Grantor is the exclusive owner of the entire and unencumbered right, title and interest in and to 
  

 18 

 
all material Owned Intellectual Property and is otherwise entitled to grant to others the right to use (and, where applicable, itself use) all such material
Owned Intellectual Property. Such Grantor has a valid and enforceable right to use all material Intellectual Property used by, or licensed to others by, such Grantor which is not owned Intellectual Property either pursuant to one of the written
material Copyright Licenses, Patent Licenses, Trademark Licenses, and/or Trade Secret Licenses listed on Schedule 4.9(a) and subject to the terms thereof (collectively, the “Licensed Intellectual Property”) or otherwise. 

 
 (b) On the date hereof all Owned Intellectual Property and all Licensed
Intellectual Property, in each case, which is material to such Grantor’s business (collectively, the “Material Intellectual Property”), is valid, subsisting, unexpired and enforceable and has not been abandoned. The operation
of such Grantor’s business as currently conducted or as contemplated to be conducted does not infringe, constitute a misappropriation of, dilute, or otherwise violate the Intellectual Property rights of any other person where the same would
have a Material Adverse Effect. 
  
 (c) No claim has been asserted
that the use of the Material Intellectual Property does or may infringe upon or constitute a misappropriation of the rights of any other person. 
  
 (d) To such Grantor’s knowledge, no decision or judgment has been rendered by any Governmental Authority or arbitrator in the United States or
outside the United States which would materially limit or cancel the validity or enforceability of, or such Grantor’s rights in, any Material Intellectual Property. Such Grantor is not aware of any uses of any item of Material Intellectual
Property that could reasonably be expected to lead to such item becoming invalid or unenforceable including unauthorized trademark uses by third parties and uses which were not supported by the goodwill of the business connected with Trademarks and
Trademark Licenses. 
  
 (e) No action or proceeding is pending,
or, to such Grantor’s knowledge, threatened, on the date hereof (i) seeking to limit, cancel or invalidate any Owned Intellectual Property, (ii) alleging that any services provided by, processes used by, or products manufactured or
sold by such Grantor infringe any patent, trademark, copyright, or misappropriate any trade secret or violate any other right of any other person, or (iii) alleging that any Material Intellectual Property (x) owned by such Grantor or
(y) licensed by such Grantor (to such Grantor’s knowledge), is being licensed or sublicensed in violation of any intellectual property or any other right of any other person, in each case, which, if adversely determined, would reasonably
be expected to have a Material Adverse Effect. To such Grantor’s knowledge, no person is engaging in any activity that infringes upon or misappropriates, or is otherwise an unauthorized use of, any Material Intellectual Property owned by
Grantor. The consummation of the transactions contemplated by this Agreement will not result in the termination of any of the Material Intellectual Property. 
  
 (f) With respect to each Copyright License, Trademark License, Trade Secret License and Patent License which license concerns Material Intellectual
Property or the loss of which could otherwise have a Material Adverse Effect: (i) such license is binding and enforceable against the other party thereto; (ii) such license will not cease to be valid and binding and in full force and
effect on terms identical to those currently in effect as a result of the rights and interests granted herein (including, but not limited to, the enforceability of such rights and 

  

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interests with respect to each such license), nor will the grant of such rights and interests (or the enforceability thereof) constitute a breach or default
under such license or otherwise give the licensor or licensee a right to terminate such license; (iii) such Grantor has not received any notice of termination or cancellation under such license; (iv) such Grantor has not received any
notice of a breach or default under such license, which breach or default has not been cured; and (v) such Grantor is not in breach or default in any material respect, and no event has occurred that, with notice and/or lapse of time, would
constitute such a breach or default or permit termination, modification or acceleration under such license. 
  
 (g) Except as set forth on Schedule 4.9(g), such Grantor has made all filings and recordations and paid all required fees and taxes to maintain each and
every item of registered Material Intellectual Property in full force and effect and to protect and maintain its interest therein. 
  
 (h) To the knowledge of such Grantor, (i) none of the trade secrets that constitute Material Intellectual Property of such Grantor have been used,
divulged, disclosed or appropriated to the detriment of such Grantor for the benefit of any other person without permission of such Grantor; and (ii) no employee, independent contractor or agent of such Grantor has misappropriated any Trade
Secrets of any other person in the course of the performance of his or her duties as an employee, independent contractor or agent of such Grantor where the same would reasonably be expected to have a Material Adverse Effect. 
  
 (i) Such Grantor has taken commercially reasonable steps to exercise quality
control over any licensee of such Grantor’s Trademarks. 
  
 4.10. UCC Letters of Credit and UCC Letter of Credit Rights. With respect to any UCC Letters of Credit that are by their terms transferable, each Grantor will, upon receipt of a written request from the Collateral Agent, use
commercially reasonable efforts to cause all issuers and nominated persons under UCC Letters of Credit in which the Grantor is the beneficiary or assignee to consent to the assignment of such UCC Letter of Credit to the Collateral Agent and has
agreed that, upon receipt of written notice received from the Collateral Agent that an Event of Default has occurred and so long as such Event of Default is continuing, it shall cause all payments thereunder to be made to the Collateral Account.
With respect to any UCC Letters of Credit that are not transferable, each Grantor shall, upon receipt of a written request from the Collateral Agent, use commercially reasonable efforts to obtain the consent of the issuer thereof and any nominated
person thereon to the assignment of the proceeds of such released UCC Letter of Credit to the Collateral Agent in accordance with Section 5-114(c) of the New York UCC. 
  
 4.11. Commercial Tort Claims. No Grantor has knowledge that it has any Commercial Tort Claims as of the date hereof
individually or in the aggregate in excess of $1,000,000. 
  
 4.12. Contracts. No amount payable to such Grantor under or in connection with any Contract which has a value in excess of $1,000,000 individually or $5,000,000 in the aggregate is evidenced by any Instrument or Tangible Chattel
Paper which has not been delivered to the Collateral Agent or constitutes Electronic Chattel Paper that is not under the 

  

 20 

 
control (within the meaning of Section 9-105 of the New York UCC) of the Collateral Agent. Notwithstanding any representation, warranty, covenant or
other provision contained herein to the contrary, the failure of any Grantor to deliver to the Collateral Agent the original Certificated Securities, Instruments and Tangible Chattel Paper described on (i) Schedule 4.12(a) and
(ii) Schedule 4.12(b) so long as the entities set forth on Schedule 4.12(b) are dissolved within a six-months period commencing as of the date hereof, shall not constitute a breach, Default or an Event of Default hereunder. 
  
 SECTION 5. COVENANTS 
  
 Each Grantor covenants and agrees with the Secured Parties that, as of the
date hereof and until the payment in full of all Obligations, the cancellation or termination of all Commitments, the expiration or termination of all Specified Hedge Agreements and the cancellation or expiration of all outstanding Letters of Credit
(or cash collateralization thereof): 
  
 5.1. Covenants in
Credit Agreement. Each Grantor shall take, or shall refrain from taking, as the case may be, each action that is within its control and is necessary to be taken or not taken, as the case may be, so that no Default or Event of Default is caused
by the failure to take such action or to refrain from taking such action by such Grantor or any of its Subsidiaries. 
  
 5.2. Delivery and Control of Instruments, Chattel Paper, Negotiable Documents and Investment Property. (a) If any of the Collateral having a value
in excess of $1,000,000 individually or $5,000,000 in the aggregate is or shall become evidenced or represented by any Instrument, Certificated Security, Negotiable Document or Tangible Chattel Paper, such Instrument (other than checks received in
the ordinary course of business), Certificated Security, Negotiable Documents or Tangible Chattel Paper shall be promptly delivered to the Collateral Agent, duly endorsed in a manner reasonably satisfactory to the Collateral Agent, to be held as
Collateral pursuant to this Agreement, and all of such property owned by any Grantor as of the Closing Date and represented in such form shall be delivered on the Closing Date. 
  
 (b) If any of the Collateral having a value in excess of $1,000,000 individually or $5,000,000 in the aggregate is or shall
become “Electronic Chattel Paper” such Grantor shall ensure that (i) a single authoritative copy shall exist which is unique, identifiable, unalterable (except as provided in clauses (iii), (iv) and (v) of this paragraph),
(ii) such authoritative copy identifies the Collateral Agent as the assignee and is communicated to and maintained by the Collateral Agent or its designee, (iii) copies or revisions that add or change the assignee of the authoritative copy
can only be made with the participation of the Collateral Agent, (iv) each copy of the authoritative copy and any copy of a copy is readily identifiable as a copy and not the authoritative copy and (v) any revision of the authoritative
copy is readily identifiable as an authorized or unauthorized revision. 
  
 (c) If any Collateral having a value in excess of $1,000,000 individually or $5,000,000 in the aggregate is or shall become an Uncertificated Security, such Grantor shall cause the issuer thereof, if such issuer is a Subsidiary of the
Borrower, either (i) to register the Collateral Agent as the registered owner of such Uncertificated Security, upon original issue or registration of transfer or (ii) to agree in writing with such Grantor and the Collateral Agent that

  

 21 

 
such issuer will comply with instructions with respect to such Uncertificated Security originated by the Collateral Agent without further consent of such
Grantor, such agreement to be in substantially the form of Exhibit A, and such actions shall be taken on or prior to the Closing Date with respect to any such Uncertificated Securities owned as of the Closing Date by any Grantor. 
  
 (d) If any of the Collateral is or shall become evidenced or represented by a
Commodity Contract having a value in excess of $1,000,000 individually or $5,000,000 in the aggregate, such Grantor shall, upon receipt of written request from the Collateral Agent, cause the Commodity Intermediary with respect to such Commodity
Contract to agree in writing with such Grantor and the Collateral Agent that such Commodity Intermediary will apply any value distributed on account of such Commodity Contract as directed by the Collateral Agent without further consent of such
Grantor, such agreement to be in form and substance reasonably satisfactory to the Collateral Agent. 
  
 (e) In addition to and not in lieu of the foregoing, if any issuer of any Investment Property is a Subsidiary of the Borrower and is organized under the
law of, or has its chief executive office in, a jurisdiction outside of the United States, each Grantor shall take such additional actions, including causing such issuer to register the pledge on its books and records, as may be reasonably requested
by the Collateral Agent, under the laws of such jurisdiction to insure the validity, perfection and priority of the security interest of the Collateral Agent. 
  

(f) In the case of any transferable UCC Letters of Credit in excess of $1,000,000 individually or $5,000,000 in the aggregate, each Grantor shall use
commercially reasonable efforts to obtain the consent of any issuer thereof to the transfer of such UCC Letters of Credit to the Collateral Agent. In the case of any other UCC Letter of Credit Rights in excess of $1,000,000 individually or
$5,000,000 in the aggregate, each Grantor shall use commercially reasonable efforts to obtain the consent of the issuer thereof and any nominated person thereon to the assignment of the proceeds of the related UCC Letter of Credit in accordance with
Section 5-114(c) of the New York UCC. 
  
 5.3. Maintenance
of Insurance. (a) Such Grantor will maintain insurance in accordance with Section 7.5 of the Credit Agreement, and furnish to the Collateral Agent, upon written request, of a copy of such insurance policies. 
  
 (b) Such Grantor will deliver to the Collateral Agent on behalf of the
Secured Parties, (i) on the Closing Date, a certificate dated as of a recent date showing the amount and types of insurance coverage as of such date, (ii) upon reasonable request of the Collateral Agent from time to time, reasonably
detailed information as to the insurance carried, (iii) promptly following receipt of notice from any insurer, a copy of any notice of cancellation or material change in coverage from that existing on the Closing Date and (iv) forthwith,
notice of any cancellation or nonrenewal of coverage by such Grantor. To the extent applicable, the Collateral Agent shall be named as additional insured on all such liability insurance policies of such Grantor and the Collateral Agent shall be
named as loss payee on all property and casualty insurance policies of such Grantor. 
  

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 5.4. Payment of Obligations. Such Grantor shall pay and discharge or otherwise satisfy at or
before maturity or before they become delinquent, as the case may be, all taxes, assessments and governmental charges or levies imposed upon the Collateral or in respect of income or profits therefrom, as well as all claims of any kind (including
claims for labor, materials and supplies) against or with respect to the Collateral, except that no such tax, assessment or charge need be paid if (i) the amount or validity thereof is currently being contested in good faith by appropriate
proceedings, reserves in conformity with GAAP with respect thereto have been provided on the books of such Grantor and such proceedings could not reasonably be expected to result in the sale, forfeiture or loss of any material portion of the
Collateral or any interest therein, or (ii) the failure to so pay and discharge would not, in the aggregate, reasonably be expected to have a Material Adverse Effect. 
  
 5.5. Maintenance of Perfected Security Interest; Further Documentation. (a) Except as otherwise expressly
permitted by the Credit Agreement, such Grantor shall maintain each of the security interests created by this Agreement as a perfected security interest having at least the priority described in Section 4.3 and shall defend such security
interest against any claims and demands of any persons (other than the Secured Parties), subject to the provisions of Section 8.15. 
  
 (b) Such Grantor shall furnish to the Secured Parties from time to time statements and schedules further identifying and describing the Collateral and
such other reports in connection with the assets and property of such Grantor as the Collateral Agent may reasonably request, all in reasonable detail. 
  
 (c) At any time and from time to time, upon the written request of the Collateral Agent, and at the sole expense of such Grantor, such Grantor shall
promptly and duly authorize, execute and deliver, and have recorded, such further instruments and documents and take such further actions as the Collateral Agent may reasonably request for the purpose of obtaining or preserving the full benefits of
this Agreement and of the rights and powers herein granted, including, the filing of any financing or continuation statements under the Uniform Commercial Code (or other similar laws) in effect in any jurisdiction with respect to the security
interests created hereby and in the case of Investment Property and any other relevant Collateral, taking any actions necessary to enable the Collateral Agent to obtain “control” (within the meaning of the applicable Uniform
Commercial Code) with respect thereto. 
  
 5.6. Changes in
Locations, Name, Jurisdiction of Incorporation, etc. Such Grantor shall not, except upon at least 10 days’ prior written notice (or such shorter period consented to by the Collateral Agent in writing), in each case, to the Collateral Agent
and delivery to the Collateral Agent of duly authorized and, where required, executed copies of all additional financing statements and other documents reasonably requested by the Collateral Agent to maintain the validity, perfection and priority of
the security interests provided for herein: 
  
 (i) change its legal name, jurisdiction of organization or the location of its chief executive office or sole place of business from that referred to in Section 4.4; or 
  

 23 

 (ii) change its legal name, identity or structure to such an extent that any financing
statement filed by the Collateral Agent in connection with this Agreement would become misleading. 
  
 5.7. Notices. Such Grantor shall advise the Collateral Agent promptly, in reasonable detail, of: 
  
 (a) any Lien (other than any Lien expressly permitted by Section 8.2 of
the Credit Agreement) on any of the Collateral which would adversely affect the ability of the Collateral Agent to exercise any of its remedies hereunder; and 
  

(b) the occurrence of any other event of which such Grantor becomes aware that would reasonably be expected to have a Material Adverse Effect on the
aggregate value of the Collateral or on the security interests created hereby. 
  
 5.8. Investment Property. (a) If such Grantor shall become entitled to receive or shall receive any stock or other ownership certificate (including any certificate representing a stock dividend or a
distribution in connection with any reclassification, increase or reduction of capital or any certificate issued in connection with any reorganization), option or rights in respect of Equity Interests in any issuer thereof, whether in addition to,
in substitution of, as a conversion of, or in exchange for, any shares of or other ownership interests in the Pledged Securities, or otherwise in respect thereof, such Grantor shall accept the same as the agent of the Secured Parties, hold the same
in trust for the Secured Parties and promptly deliver the same to the Collateral Agent in the exact form received (other than Excluded Foreign Subsidiary Voting Stock if such issuer is a Foreign Subsidiary), duly endorsed by such Grantor to the
Collateral Agent, if required, together with an undated stock power or similar instrument of transfer covering such certificate duly executed in blank by such Grantor and with, if the Collateral Agent so requests, signature guaranteed, to be held by
the Collateral Agent, subject to the terms hereof, as additional collateral security for the Obligations. Any sums paid upon or in respect of the Pledged Securities upon the liquidation or dissolution of any issuer thereof shall be paid over to the
Collateral Agent to be held by it hereunder as additional collateral security for the Obligations if an Event of Default then exists, and in case any distribution of capital shall be made on or in respect of the Pledged Securities or any property
shall be distributed upon or with respect to the Pledged Securities pursuant to the recapitalization or reclassification of the capital of any issuer thereof or pursuant to the reorganization thereof, the property so distributed shall, if an Event
of Default then exists, and unless otherwise subject to a perfected security interest in favor of the Collateral Agent, be delivered to the Collateral Agent to be held by it hereunder as additional collateral security for the Obligations. If any
sums of money or property so paid or distributed in respect of the Pledged Securities shall be received by such Grantor in violation of the immediately preceding sentence, such Grantor shall, until such money or property is paid or delivered to the
Collateral Agent, hold such money or property in trust for the Secured Parties, segregated from other funds of such Grantor, as additional collateral security for the Obligations. 
  
 (b) Without the prior written consent of the Collateral Agent, such Grantor shall not (i) vote to enable, or take any
other action to permit, any Subsidiary of the Borrower that is an issuer of Pledged Securities to issue any stock, partnership interests, limited liability company interests or other equity securities of any nature or to issue any other securities
convertible into 

  

 24 

 
or granting the right to purchase or exchange for any stock, partnership interests, limited liability company interests or other equity securities of any
nature of any such issuer (except, in each case, pursuant to a transaction expressly permitted by the Credit Agreement), (ii) sell, assign, transfer, exchange, or otherwise dispose of, or grant any option with respect to, any of the Investment
Property or Proceeds thereof or any interest therein (except, in each case, pursuant to a transaction expressly permitted by the Credit Agreement), (iii) create, incur or permit to exist any Lien or option in favor of, or any claim of any
person with respect to, any of the Investment Property or Proceeds thereof, or any interest therein, except for the security interests created by this Agreement or any Lien expressly permitted thereon pursuant to Section 8.2 of the Credit
Agreement, (iv) enter into any agreement or undertaking restricting the right or ability of such Grantor or the Collateral Agent to sell, assign or transfer any of the Investment Property or Proceeds thereof or any interest therein or
(v) without the prior written consent of the Collateral Agent, cause or permit any Subsidiary of the Borrower that is an issuer of any Pledged Partnership Interests or Pledged LLC Interests which are not securities (for purposes of the New York
UCC) on the date hereof to elect or otherwise take any action to cause such Pledged Partnership Interests or Pledged LLC Interests to be treated as securities for purposes of the New York UCC; provided, however, notwithstanding the
foregoing, if any issuer of any Pledged Partnership Interests or Pledged LLC Interests takes any such action in violation of the provisions in this clause (v) or any non-Subsidiary of the Borrower that is an issuer takes any of the foregoing
actions, such Grantor shall promptly notify the Collateral Agent in writing of any such election or action and, in such event, shall take all steps necessary or advisable to establish the Collateral Agent’s “control” thereof.

  
 (c) In the case of each Grantor which is an issuer of Pledged
Securities, such issuer agrees that (i) it shall be bound by the terms of this Agreement relating to the Pledged Securities issued by it and shall comply with such terms insofar as such terms are applicable to it, (ii) it shall notify the
Collateral Agent promptly in writing of the occurrence of any of the events described in Section 5.8(a) with respect to the Pledged Securities issued by it and (iii) the terms of Sections 6.3(c) and 6.7 shall apply to it, mutatis
mutandis, with respect to all actions that may be required of it pursuant to Section 6.3(c) or 6.7 with respect to the Pledged Securities issued by it. In addition, each Grantor which is either an issuer or an owner of any Pledged Security
hereby consents to the grant by each other Grantor of the security interest hereunder in favor of the Collateral Agent and to the transfer of any Pledged Security to the Collateral Agent or its nominee following an Event of Default and to the
substitution of the Collateral Agent or its nominee as a partner, member or shareholder of the issuer of the related Pledged Security. 
  
 5.9. Receivables. Other than in the ordinary course of business, such Grantor shall not (i) grant any extension of the time of payment of any
Receivable, (ii) compromise or settle any Receivable for less than the full amount thereof, (iii) release, wholly or partially, any person liable for the payment of any Receivable, (iv) allow any credit or discount whatsoever on any
Receivable or (v) amend, supplement or modify any Receivable in any manner that could adversely affect the value thereof. 
  
 5.10. Intellectual Property. (a) Such Grantor (either itself or through licensees) shall, in the exercise of its reasonable business judgment,
taking into account the Secured Parties’ interests under this Agreement, (i) continue to use each owned Trademark material to its business, (ii) maintain commercially reasonable quality of products and services offered under 

  

 25 

 
such Trademarks and take all necessary steps to ensure that all licensed users of such Trademarks comply with such Grantor’s quality control
requirements and maintain reasonable quality, (iv) not adopt or use any mark which is confusingly similar or a colorable imitation of such Trademarks unless the Collateral Agent, for the ratable benefit of the Secured Parties, shall obtain a
perfected security interest in such mark pursuant to this Agreement and the Intellectual Property Security Agreement, and (v) not (and not permit any licensee or sublicensee thereof to) do any act or knowingly omit to do any act whereby such
Trademark may become invalidated or impaired in any way. 
  
 (b)
Such Grantor (either itself or through licensees), subject to the exercise of its reasonable business judgment, taking into account the Secured Parties’ interests under this Agreement, shall not do any act, or omit to do any act, whereby any
Patent owned by such Grantor material to its business may become forfeited, abandoned or dedicated to the public. 
  
 (c) Such Grantor (either itself or through licensees), subject to the exercise of its reasonable business judgment, taking into account the Secured
Parties’ interests under this Agreement, shall not (and shall not permit any licensee or sublicensee thereof to) do any act or knowingly omit to do any act whereby any material portion of Copyrights owned by such Grantor and material to its
business may become invalidated or otherwise impaired. Such Grantor shall not (either itself or through licensees) do any act whereby any material portion of such Copyrights may fall into the public domain. 
  
 (d) Such Grantor shall notify the Collateral Agent promptly if it knows or
suspects that any application or registration relating to any Material Intellectual Property owned by Grantor may become forfeited, abandoned or dedicated to the public, or of any adverse determination (including the institution of, or any such
determination in, any proceeding in the United States Patent and Trademark Office, the United States Copyright Office or any court or tribunal in any country) regarding such Grantor’s ownership of, or the validity of, any such Material
Intellectual Property or such Grantor’s right to register the same or to own and maintain the same. 
  
 (e) Before such Grantor, either by itself or through any agent, employee, licensee or designee, shall file an application for the registration of any
Intellectual Property that is material to the business of such Grantor with the United States Patent and Trademark Office, the United States Copyright Office or any similar office or agency in any other country or any political subdivision thereof,
such Grantor shall give the Collateral Agent as much prior notice as is reasonably practical and report such filing to the Collateral Agent (a) in the case of Copyrights, within five Business Days after applying for a registration and again
within five Business Days after receiving a registration and (b) in the case of Patents, Trademarks or other Intellectual Property, within five Business Days after the last day of the fiscal quarter in which such filing occurs. Upon request of
the Collateral Agent, such Grantor shall execute and deliver, and have recorded, any and all agreements, instruments, documents, and papers as the Collateral Agent may request to evidence the Secured Parties’ security interest in any Copyright,
Patent, Trademark or other Intellectual Property of such Grantor. 
  
 (f) Such Grantor, subject to the exercise of its reasonable business judgment, taking into account the Secured Parties’ interests under this Agreement, shall take reasonable and 

  

 26 

 
necessary steps, including in any proceeding before the United States Patent and Trademark Office, the United States Copyright Office or any similar office
or agency in any other country or any political subdivision thereof, to maintain and pursue each application (and to obtain the relevant registration) and to maintain each registration of Intellectual Property material to its business, including the
payment of required fees and taxes, the filing of responses to office actions issued by the United States Patent and Trademark Office and the United States Copyright Office, the filing of applications for renewal or extension, the filing of
affidavits of use and affidavits of incontestability, the filing of divisional, continuation, continuation-in-part, reissue and renewal applications or extensions, the payment of maintenance fees, and the participation in interference,
reexamination, opposition, cancellation, infringement and misappropriation proceedings. 
  
 (g) Such Grantor (either itself or through licensees), subject to the exercise of its reasonable business judgment, taking into account the Secured Parties’ interests under this Agreement, shall not, without the
prior written consent of the Collateral Agent, discontinue use of or otherwise abandon any of its registered Owned Intellectual Property, or abandon any application or any right to file an application for any patent, trademark, or copyright, unless
such Grantor shall have previously determined that such use or the pursuit or maintenance of such Intellectual Property is no longer desirable in the conduct of such Grantor’s business and that the loss thereof could not reasonably be expected
to have a Material Adverse Effect. 
  
 (h) In the event that any
Intellectual Property material to its business is infringed, misappropriated or diluted by a third party, such Grantor shall (i) take such actions as such Grantor shall reasonably deem appropriate under the circumstances to protect such
Intellectual Property and (ii) if such Intellectual Property is of material economic value, promptly notify the Collateral Agent after it learns thereof and sue for infringement, misappropriation or dilution, to seek injunctive relief where
appropriate and to recover any and all damages for such infringement, misappropriation or dilution. 
  
 (i) Such Grantor agrees that, should it obtain an ownership interest in any item of intellectual property which is not, as of the Closing Date, a part of
the Intellectual Property Collateral (the “After-Acquired Intellectual Property”), (i) the provisions of Section 3 shall automatically apply thereto, (ii) any such After-Acquired Intellectual Property, and in the case of
trademarks, the goodwill of the business connected therewith or symbolized thereby, shall automatically become part of the Intellectual Property Collateral, (iii) it shall give prompt (and, in any event within five Business Days after the last
day of the fiscal quarter in which such Grantor acquires such ownership interest) written notice thereof to the Collateral Agent in accordance herewith, and (iv) it shall provide the Collateral Agent promptly (and, in any event within five
Business Days after the last day of the fiscal quarter in which such Grantor acquires such ownership interest) with an amended Schedule 4.9(a) and take the actions specified in 5.9(m). 
  
 (j) Such Grantor agrees to execute an Intellectual Property Security Agreement with respect to its Intellectual Property in
substantially the form of Exhibit B-1 in order to record the security interest granted herein to the Collateral Agent for the ratable benefit of the Secured Parties with the United States Patent and Trademark Office and the United States Copyright
Office. 
  

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 (k) Such Grantor agrees to execute an After-Acquired Intellectual Property Security Agreement with
respect to its After-Acquired Intellectual Property in substantially the form of Exhibit B-2 in order to record the security interest granted herein to the Collateral Agent for the ratable benefit of the Secured Parties with the United States Patent
and Trademark Office and the United States Copyright Office. 
  
 (l) Such Grantor shall take commercially reasonable steps to protect the secrecy of all trade secrets or confidential information material to its business, including entering into confidentiality agreements with employees and labeling and
restricting access to secret information and documents. 
  
 5.11.
Contracts. (a) Such Grantor shall perform and comply in all material respects with all its obligations under the Contracts, except where the failure to so perform and comply would not reasonably be expected to have a Material Adverse
Effect. 
  
 (b) Such Grantor shall not amend, modify, terminate,
waive or fail to enforce any provision of any Contract in any manner which would reasonably be expected to have a Material Adverse Effect. 
  
 (c) Such Grantor shall exercise promptly and diligently each and every material right which it may have under each Material Contract (other than any right
of termination), except where the failure to so exercise would not reasonably be expected to have a Material Adverse Effect. 
  
 (d) Such Grantor shall not permit to become effective in any document creating, governing or providing for any permit, lease, license or Material
Contract, a provision that would limit the creation, perfection or scope of, or exercise or enforcement of remedies in connection with, a Lien on such permit, lease, license or Material Contract in favor of the Collateral Agent for the ratable
benefit of the Secured Parties unless such Grantor believes, in its reasonable judgment, that such prohibition is usual and customary in transactions of such type. 
  
 5.12. Commercial Tort Claims. Such Grantor shall advise the Collateral Agent promptly after such Grantor becomes
aware of any Commercial Tort Claim held by such Grantor individually or in the aggregate in excess of $1,000,000 and shall promptly execute a supplement to this Agreement in form and substance reasonably satisfactory to the Collateral Agent to grant
a security interest in such Commercial Tort Claim to the Collateral Agent for the ratable benefit of the Secured Parties. 
  
 SECTION 6. REMEDIAL PROVISIONS 
  
 6.1. Certain Matters Relating to Receivables. (a) The Collateral Agent shall have the right (but shall in no way be obligated), at its own
expense if an Event of Default does not then exist, to make test verifications of the Receivables that are included in the Collateral in any manner and through any medium that it reasonably considers advisable, and each Grantor shall furnish all
such assistance and information as the Collateral Agent may reasonably require in connection with such test verifications. 
  

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 (b) The Collateral Agent hereby authorizes each Grantor to collect such Grantor’s Receivables, and
each Grantor hereby agrees to use its commercially reasonable efforts to continue to collect all amounts due or to become due to such Grantor under the Receivables and any Supporting Obligation and diligently exercise each material right it may have
under any Receivable and any Supporting Obligation, in each case, at its own expense; provided, however, that the Collateral Agent may curtail or terminate said authority at any time after the occurrence and during the continuance of
an Event of Default. If required by the Collateral Agent at any time after the occurrence and during the continuance of an Event of Default, any payments of Receivables, when collected by any Grantor, (i) shall be promptly (and, in any event,
within two Business Days) deposited by such Grantor in the exact form received, duly endorsed by such Grantor to the Collateral Agent if required, in a Collateral Account maintained under the sole dominion and control of the Collateral Agent,
subject to withdrawal by the Collateral Agent for the account of the Secured Parties only as provided in Section 6.5, and (ii) until so turned over, shall be held by such Grantor in trust for the Secured Parties, segregated from other
funds of such Grantor. Each such deposit of Proceeds of Receivables shall be accompanied by a report identifying in reasonable detail the nature and source of the payments included in the deposit. 
  
 (c) At the Collateral Agent’s request but subject to the confidentiality
provisions set forth in the Credit Agreement, during the continuance of an Event of Default each Grantor shall make available to the Collateral Agent original and other documents evidencing, and relating to, the agreements and transactions which
gave rise to the Receivables that are included in the Collateral, including original orders, invoices and shipping receipts. 
  
 6.2. Communications with Obligors; Grantors Remain Liable. 
  
 (a) The Collateral Agent in its own name or in the name of others may at any time after the occurrence and during the
continuance of an Event of Default communicate with obligors under the Receivables and parties to the Contracts to verify with them to the Collateral Agent’s satisfaction the existence, amount and terms of any Receivables or Contracts.

  
 (b) The Collateral Agent may at any time after the occurrence
and during the continuance of an Event of Default notify, or require any Grantor to so notify, the Account Debtor or counterparty on any Receivable or Contract of the security interest of the Collateral Agent therein. In addition, after the
occurrence and during the continuance of an Event of Default, the Collateral Agent may upon written notice to the applicable Grantor, notify, or require any Grantor to notify, the Account Debtor or counterparty to make all payments under the
Receivables and/or Contracts directly to the Collateral Agent. 
  
 (c) Anything herein to the contrary notwithstanding, each Grantor shall remain liable under each of the Receivables and Contracts to observe and perform all the conditions and obligations to be observed and performed by it thereunder, all
in accordance with the terms of any agreement giving rise thereto. No Secured Party shall have any obligation or liability under any Receivable (or any agreement giving rise thereto) or Contract by reason of or arising out of this Agreement or the
receipt by any Secured Party of any payment relating thereto, nor shall any Secured Party be obligated in any manner to perform any of the obligations of any Grantor under or pursuant to any Receivable (or any agreement giving rise thereto) or
Contract, to make any 

  

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payment, to make any inquiry as to the nature or the sufficiency of any payment received by it or as to the sufficiency of any performance by any party
thereunder, to present or file any claim, to take any action to enforce any performance or to collect the payment of any amounts which may have been assigned to it or to which it may be entitled at any time or times. 
  
 6.3. Pledged Securities. (a) Unless an Event of Default shall
have occurred and be continuing and the Collateral Agent shall have given notice to the relevant Grantor of the Collateral Agent’s intent to exercise its corresponding rights pursuant to Section 6.3(b), each Grantor shall be permitted to
receive all cash dividends paid in respect of the Pledged Equity Interests and all payments made in respect of the Pledged Notes, to the extent not prohibited by the Credit Agreement, and to exercise all voting and corporate rights with respect to
the Pledged Securities; provided, however, that no vote shall be cast or corporate or other ownership right exercised or other action taken which would materially impair the Collateral or which would be inconsistent with or result in
any violation of any provision of the Credit Agreement, this Agreement or any other Loan Document. 
  
 (b) If an Event of Default shall occur and be continuing and the Collateral Agent shall have given notice to the relevant Grantor of the Collateral
Agent’s intent to exercise its rights pursuant to this Section 6.3(b): (i) all rights of each Grantor to exercise or refrain from exercising the voting and other consensual rights which it would otherwise be entitled to exercise
pursuant hereto shall cease and all such rights shall thereupon become vested in the Collateral Agent who shall thereupon have the sole right, but shall be under no obligation, to exercise or refrain from exercising such voting and other consensual
rights; (ii) the Collateral Agent shall have the right, without notice to any Grantor (where permitted by applicable law), to transfer all or any portion of the Investment Property to its name or the name of its nominee or agent; and
(iii) the Collateral Agent shall have the right, without notice to any Grantor, to exchange any certificates or instruments representing any Investment Property for certificates or instruments of smaller or larger denominations. In order to
permit the Collateral Agent to exercise the voting and other consensual rights which it may be entitled to exercise pursuant hereto and to receive all dividends and other distributions which it may be entitled to receive hereunder each Grantor shall
promptly execute and deliver (or cause to be executed and delivered) to the Collateral Agent all proxies, dividend payment orders and other instruments as the Collateral Agent may from time to time reasonably request and each Grantor acknowledges
that the Collateral Agent may utilize the power of attorney set forth herein. 
  
 (c) Each Grantor hereby authorizes and instructs each issuer of any Pledged Securities pledged by such Grantor hereunder to (i) comply with any instruction received by it from the Collateral Agent in writing that
(x) states that an Event of Default has occurred and is continuing and (y) is otherwise in accordance with the terms of this Agreement, without any other or further instructions from such Grantor, and each Grantor agrees that each such
issuer shall be fully protected in so complying, and (ii) upon any such instruction following the occurrence and during the continuance of an Event of Default, pay any dividends or other payments with respect to the Investment Property,
including Pledged Securities, directly to the Collateral Agent. 
  
 6.4. Proceeds to be Turned Over To Collateral Agent. In addition to the rights of the Secured Parties specified in Section 6.1 with respect to payments of Receivables, if an 

  

 30 

 
Event of Default shall occur and be continuing, all Proceeds received by any Grantor consisting of cash, cash equivalents, checks and other near-cash items
shall, if requested in writing by the Collateral Agent, be held by such Grantor in trust for the Secured Parties, segregated from other funds of such Grantor, and shall, forthwith upon receipt by such Grantor, be turned over to the Collateral Agent
in the exact form received by such Grantor (duly endorsed by such Grantor to the Collateral Agent, if required). All Proceeds received by the Collateral Agent hereunder shall be held by the Collateral Agent in a Collateral Account maintained under
its sole dominion and control. All Proceeds while held by the Collateral Agent in a Collateral Account (or by such Grantor in trust for the Secured Parties) shall continue to be held as collateral security for all the Obligations and shall not
constitute payment thereof until applied as provided in Section 6.5. 
  
 6.5. Application of Proceeds. At such intervals as may be agreed upon by the Borrower and the Collateral Agent, or, if an Event of Default shall have occurred and be continuing, at any time at the Collateral
Agent’s election, the Collateral Agent may apply all or any part of the net Proceeds (after deducting fees and reasonable out-of-pocket expenses as provided in Section 6.6) constituting Collateral realized through the exercise by the
Collateral Agent of its remedies hereunder, whether or not held in any Collateral Account, and any proceeds of the guarantee set forth in Section 2, in payment of the Obligations in the following order: 
  
 First, to the Collateral Agent, to pay incurred and
unpaid fees and expenses of the Secured Parties under the Loan Documents; 
  
 Second, to the Collateral Agent, for application by it towards payment of amounts then due and owing and remaining unpaid in respect of the Obligations, pro rata among the Secured Parties according to
the amounts of the Obligations then due and owing and remaining unpaid to the Secured Parties; 
  
 Third, to the Collateral Agent, for application by it towards prepayment of the Obligations, pro rata among the Lenders,
Synthetic Investors and Issuers, according to the amounts of the Obligations then held by the respective Lenders, Synthetic Investors and Issuers; and 
  
 Fourth, any balance of such Proceeds remaining after the Obligations shall have been paid in full, no Letters of Credit issued
under the Credit Agreement shall be outstanding (unless cash collateralized in accordance with the terms of the Credit Agreement) and the Commitments under the Credit Agreement shall have terminated or expired shall be paid over to the applicable
Grantor or to whomsoever may be lawfully entitled to receive the same. 
  
 6.6. Code and Other Remedies. (a) If an Event of Default shall occur and be continuing, the Collateral Agent, on behalf of the Secured Parties, may exercise, in addition to all other rights and remedies granted to it in this
Agreement and in any other instrument or agreement securing, evidencing or relating to the Obligations, all rights and remedies of a secured party under the New York UCC (whether or not the New York UCC applies to the affected Collateral) or its
rights under any other applicable law or in equity. Without limiting the generality of the foregoing, the Collateral Agent, without demand of performance or other 

  

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demand, presentment, protest, advertisement or notice of any kind (except any notice required by law referred to below) to or upon any Grantor or any other
person (all and each of which demands, defenses, advertisements and notices are hereby waived), may in such circumstances collect, receive, appropriate and realize upon the Collateral, or any part thereof, and/or may sell, lease, license, assign,
give option or options to purchase, or otherwise dispose of and deliver the Collateral or any part thereof (or contract to do any of the foregoing), in one or more parcels at public or private sale or sales, at any exchange, broker’s board or
office of any Secured Party or elsewhere upon such terms and conditions as it may deem advisable and at such prices as it may deem best, for cash or on credit or for future delivery without assumption of any credit risk. Each Secured Party shall
have the right upon any such public sale or sales, and, to the extent permitted by law, upon any such private sale or sales, to purchase the whole or any part of the Collateral so sold, free of any right or equity of redemption in any Grantor, which
right or equity is hereby waived and released. Each purchaser at any such sale shall hold the property sold absolutely free from any claim or right on the part of any Grantor, and each Grantor hereby waives (to the extent permitted by applicable
law) all rights of redemption, stay and/or appraisal which it now has or may at any time in the future have under any rule of law or statute now existing or hereafter enacted. Each Grantor agrees that, to the extent notice of sale shall be required
by law, at least ten days notice to such Grantor of the time and place of any public sale or the time after which any private sale is to be made shall constitute reasonable notification. The Collateral Agent shall not be obligated to make any sale
of Collateral regardless of notice of sale having been given. The Collateral Agent may adjourn any public or private sale from time to time by announcement at the time and place fixed therefore, and such sale may, without further notice, be made at
the time and place to which it was so adjourned. The Collateral Agent may sell the Collateral without giving any warranties as to the Collateral. The Collateral Agent may specifically disclaim or modify any warranties of title or the like. This
procedure will not be considered to adversely effect the commercial reasonableness of any sale of the Collateral. Each Grantor agrees that it would not be commercially unreasonable for the Collateral Agent to dispose of the Collateral or any portion
thereof by using Internet sites that provide for the auction of assets of the types included in the Collateral or that have the reasonable capability of doing so, or that match buyers and sellers of assets. To the extent permitted by applicable law,
each Grantor hereby waives any claims against the Collateral Agent arising by reason of the fact that the price at which any Collateral may have been sold at such a private sale was less than the price which might have been obtained at a public
sale, even if the Collateral Agent accepts the first offer received and does not offer such Collateral to more than one offeree. Each Grantor further agrees, at the Collateral Agent’s request, to assemble the Collateral and make it available to
the Collateral Agent at places which the Collateral Agent shall reasonably select, whether at such Grantor’s premises or elsewhere. To the extent permitted by applicable law, and so long as an Event of Default is continuing, the Collateral
Agent shall have the right to enter onto the property where any Collateral is located and take possession thereof with or without judicial process. 
  
 (b) The Collateral Agent shall apply the net proceeds of any action taken by it pursuant to this Section 6.6, after deducting all reasonable costs
and expenses of every kind incurred in connection therewith or incidental to the care or safekeeping of any of the Collateral or in any way relating to the Collateral or the rights of the Secured Parties hereunder, including reasonable
attorneys’ fees and disbursements, to the payment in whole or in part of the Obligations and only after such application and after the payment by the Collateral Agent of any 

  

 32 

 
other amounts required by any provision of law, including Section 9-615(a) of the New York UCC, need the Collateral Agent account for the surplus, if
any, to any Grantor. If the Collateral Agent sells any of the Collateral upon credit, the Grantor will be credited only with payments actually made by the purchaser and received by the Collateral Agent and applied to indebtedness of the purchaser.
In the event the purchaser fails to pay for the Collateral, the Collateral Agent may resell the Collateral and the Grantor shall be credited with proceeds of the sale. To the extent permitted by applicable law, each Grantor waives all claims,
damages and demands it may acquire against any Secured Party arising out of the exercise by any Secured Party of any rights hereunder. 
  
 (c) In the event of any disposition of any of the Intellectual Property, the goodwill of the business connected with and symbolized by any Trademarks
subject to such Disposition shall be included, and the applicable Grantor shall, to the extent commercially reasonable and feasible under the circumstances, supply the Collateral Agent or its designee with such Grantor’s know-how and expertise,
and with documents and things embodying the same, relating to the manufacture, distribution, advertising and sale of products or the provision of services relating to any Intellectual Property subject to such disposition, and such Grantor’s
customer lists and other records and documents relating to such Intellectual Property and to the manufacture, distribution, advertising and sale of such products and services. 
  
 6.7. Registration Rights. (a) If the Collateral Agent shall determine to exercise its right to sell any or all
of the Pledged Equity Interests pursuant to Section 6.6, and if in the opinion of the Collateral Agent it is necessary or advisable to have the Pledged Equity Interests, or that portion thereof to be sold, registered under the provisions of the
Securities Act, the relevant Grantor shall use commercially reasonable efforts to cause the issuer thereof to (i) execute and deliver, and cause the directors and officers of such issuer to execute and deliver, all such instruments and
documents, and do or cause to be done all such other acts as may be, in the opinion of the Collateral Agent, necessary or advisable to register the Pledged Equity Interests, or that portion thereof to be sold, under the provisions of the Securities
Act, (ii) cause the registration statement relating thereto to become effective and to remain effective for a period of one year from the date of the first public offering of the Pledged Equity Interests, or that portion thereof to be sold, and
(iii) make all amendments thereto and/or to the related prospectus which, in the opinion of the Collateral Agent, are reasonably necessary or advisable, all in conformity with the requirements of the Securities Act and the rules and regulations
of the SEC applicable thereto. Each Grantor agrees to use commercially reasonable efforts to cause such issuer to comply with the provisions of the securities or “Blue Sky” laws of any and all jurisdictions which the Collateral Agent shall
designate and to make available to its security holders, as soon as practicable, an earnings statement (which need not be audited) which will satisfy the provisions of Section 11(a) of the Securities Act. 
  
 (b) Each Grantor recognizes that the Collateral Agent may be unable to effect
a public sale of any or all the Pledged Equity Interests, by reason of certain prohibitions contained in the Securities Act and applicable state securities laws or otherwise, and may be compelled to resort to one or more private sales thereof to a
restricted group of purchasers which will be obliged to agree, among other things, to acquire such securities for their own account for investment and not with a view to the distribution or resale thereof. Each Grantor acknowledges and agrees that
any such private sale may result in prices and other terms less favorable than if 

  

 33 

 
such sale were a public sale and, notwithstanding such circumstances, agrees that any such private sale shall be deemed to have been made in a commercially
reasonable manner. The Collateral Agent shall be under no obligation to delay a sale of any of the Pledged Equity Interests for the period of time necessary to permit the issuer thereof to register such securities for public sale under the
Securities Act, or under applicable state securities laws, even if such issuer would agree to do so. 
  
 (c) Each Grantor agrees to use commercially reasonable efforts to do or cause to be done all such other acts as may be necessary to make such sale or
sales of all or any portion of the Pledged Equity Interests pursuant to this Section 6.7 valid and binding and in compliance with any and all other applicable Requirements of Law. Each Grantor further agrees that a breach of any of the
covenants contained in this Section 6.7 will cause irreparable injury to the Secured Parties, that the Secured Parties have no adequate remedy at law in respect of such breach and, as a consequence, that each and every covenant contained in
this Section 6.7 shall be specifically enforceable against such Grantor, and such Grantor hereby waives and agrees not to assert any defenses against an action for specific performance of such covenants except for a defense that no Event of
Default has occurred and is continuing under the Credit Agreement or a defense of payment. 
  
 6.8. Deficiency. Each Grantor shall remain liable for any deficiency if the proceeds of any sale or other disposition of the Collateral are insufficient to pay its Obligations and the reasonable fees and
disbursements of any outside attorneys employed by any Secured Party to collect such deficiency. 
  
 SECTION 7. THE COLLATERAL AGENT 
  
 7.1. Collateral Agent’s Appointment as Attorney-in-Fact, etc. (a) Each Grantor hereby irrevocably constitutes and appoints the Collateral Agent, with full power of substitution, as its true and lawful
attorney-in-fact with full irrevocable power and authority in the place and stead of such Grantor and in the name of such Grantor or in its own name, for the purpose of carrying out the terms of this Agreement, to take any and all appropriate action
and to execute any and all documents and instruments which may be necessary or desirable to accomplish the purposes of this Agreement, and, without limiting the generality of the foregoing, each Grantor hereby gives the Collateral Agent the power
and right, on behalf of such Grantor, without notice to or assent by such Grantor, to do any or all of the following: 
  
 (i) in the name of such Grantor or its own name, or otherwise, take possession of and endorse and collect any checks, drafts, notes,
acceptances or other instruments for the payment of moneys due under any Receivable or Contract or with respect to any other Collateral and file any claim or take any other action or proceeding in any court of law or equity or otherwise deemed
appropriate by the Collateral Agent for the purpose of collecting any and all such moneys due under any Receivable or Contract or with respect to any other Collateral whenever payable; 
  
 (ii) in the case of any Intellectual Property, execute and deliver, and have recorded, any and all
agreements, instruments, documents and papers as the Collateral Agent may request to evidence the Secured Parties’ security interest in such Intellectual Property and the goodwill and general intangibles of such Grantor relating thereto or
represented thereby; 
  

 34 

 (iii) pay or discharge taxes and Liens levied or placed on or threatened against the
Collateral, effect any repairs or any insurance called for by the terms of this Agreement and pay all or any part of the premiums therefor and the costs thereof; 
  
 (iv) execute, in connection with any sale provided for in Section 6.7 or 6.8, any endorsements,
assignments or other instruments of conveyance or transfer with respect to the Collateral; and 
  
 (v) (1) direct any party liable for any payment under any of the Collateral to make payment of any and all moneys due or to become
due thereunder directly to the Collateral Agent or as the Collateral Agent shall direct; (2) ask or demand for, collect, and receive payment of and receipt for, any and all moneys, claims and other amounts due or to become due at any time in
respect of or arising out of any Collateral; (3) sign and endorse any invoices, freight or express bills, bills of lading, storage or warehouse receipts, drafts against debtors, assignments, verifications, notices and other documents in
connection with any of the Collateral; (4) commence and prosecute any suits, actions or proceedings at law or in equity in any court of competent jurisdiction to collect the Collateral or any portion thereof and to enforce any other right in
respect of any Collateral; (5) defend any suit, action or proceeding brought against such Grantor with respect to any Collateral; (6) settle, compromise or adjust any such suit, action or proceeding and, in connection therewith, give such
discharges or releases as the Collateral Agent may deem appropriate; (7) assign any Copyright, Patent or Trademark (along with the goodwill of the business to which any such Copyright, Patent or Trademark pertains), throughout the world for
such term or terms, on such conditions, and in such manner, as the Collateral Agent shall in its sole discretion determine; and (8) generally, sell, transfer, pledge and make any agreement with respect to or otherwise deal with any of the
Collateral as fully and completely as though the Collateral Agent were the absolute owner thereof for all purposes, and do, at the Collateral Agent’s option and such Grantor’s expense, at any time, or from time to time, all acts and things
which the Collateral Agent deems necessary to protect, preserve or realize upon the Collateral and the Secured Parties’ security interests therein and to effect the intent of this Agreement, all as fully and effectively as such Grantor might
do. 
  
 Anything in this Section 7.1(a) to the contrary
notwithstanding, the Collateral Agent agrees that, except as provided in Section 7.1(b), it will not exercise any rights under the power of attorney provided for in this Section 7.1(a) unless an Event of Default shall have occurred and be
continuing. 
  
 (b) If any Grantor fails to perform or comply with
any of its agreements contained herein, the Collateral Agent, at its option, but without any obligation so to do, may perform or comply, or otherwise cause performance or compliance, with such agreement; provided, however, that unless
an Event of Default has occurred and is continuing or time is of the essence, the Collateral Agent shall not exercise this power without first making demand on the Grantor and the Grantor failing to promptly comply therewith. 
  

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 (c) The expenses of the Collateral Agent incurred in connection with actions undertaken as provided in
this Section 7.1, together with interest thereon at a rate per annum equal to the rate per annum at which interest would then be payable on past due Revolving Loans that are Base Rate Loans under the Credit Agreement, from the
date of payment by the Collateral Agent to the date reimbursed by the relevant Grantor, shall be payable by such Grantor to the Collateral Agent on demand. 
  
 (d) Each Grantor hereby ratifies all that said attorneys shall lawfully do or cause to be done by virtue hereof. All powers, authorizations and agencies
contained in this Agreement are coupled with an interest and are irrevocable until this Agreement is terminated and the security interests created hereby are released. 
  
 7.2. Duty of Collateral Agent. The Collateral Agent’s sole duty with respect to the custody, safekeeping and
physical preservation of the Collateral in its possession, under Section 9-207 of the New York UCC or otherwise, shall be to deal with it in the same manner as the Collateral Agent deals with similar property for its own account. Neither the
Collateral Agent, nor any other Secured Party nor any of their respective officers, directors, partners, employees, agents, attorneys and other advisors, attorneys-in-fact or affiliates shall be liable for failure to demand, collect or realize upon
any of the Collateral or for any delay in doing so or shall be under any obligation to sell or otherwise dispose of any Collateral upon the request of any Grantor or any other person or to take any other action whatsoever with regard to the
Collateral or any part thereof. The powers conferred on the Secured Parties hereunder are solely to protect the Secured Parties’ interests in the Collateral and shall not impose any duty upon any Secured Party to exercise any such powers. The
Secured Parties shall be accountable only for amounts that they actually receive as a result of the exercise of such powers, and neither they nor any of their officers, directors, partners, employees, agents, attorneys and other advisors,
attorneys-in-fact or affiliates shall be responsible to any Grantor for any act or failure to act hereunder, except to the extent that any such act or failure to act is found by a final and nonappealable decision of a court of competent jurisdiction
to have resulted from their own gross negligence or willful misconduct in breach of a duty owed to such Grantor. 
  
 7.3. Execution of Financing Statements. Each Grantor acknowledges that pursuant to Section 9-509(b) of the New York UCC and any other
applicable law, each Grantor authorizes the Collateral Agent to file or record financing or continuation statements, and amendments thereto, and other filing or recording documents or instruments with respect to the Collateral, without the signature
of such Grantor, in such form and in such offices as the Collateral Agent reasonably determines appropriate to perfect or maintain the perfection of the security interests of the Collateral Agent under this Agreement. Each Grantor agrees that such
financing statements may describe the collateral in the same manner as described in the Collateral Documents or as “all assets” or “all personal property,” whether now owned or hereafter existing or acquired or such other
description as the Collateral Agent, in its sole judgment, determines is necessary or advisable, provided that any such description of the Collateral that uses phrases such as “all assets” or “all personal property” also
includes a reference to the fact that the Collateral excludes the Excluded Assets. A photographic or other reproduction of this Agreement shall, where permitted by applicable law, be sufficient as a financing statement or other filing or recording
document or instrument for filing or recording in any jurisdiction. 
  

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 7.4. Authority of Collateral Agent. Each Grantor acknowledges that the rights and responsibilities
of the Collateral Agent under this Agreement with respect to any action taken by the Collateral Agent or the exercise or non-exercise by the Collateral Agent of any option, voting right, request, judgment or other right or remedy provided for herein
or resulting or arising out of this Agreement shall, as between the Collateral Agent and the other Secured Parties, be governed by the Credit Agreement and by such other agreements with respect thereto as may exist from time to time among them, but,
as between the Collateral Agent and the Grantors, the Collateral Agent shall be conclusively presumed to be acting as agent for the Secured Parties with full and valid authority so to act or refrain from acting, and no Grantor shall be under any
obligation, or entitlement, to make any inquiry respecting such authority. 
  
 7.5. Appointment of Co-Collateral Agents. At any time or from time to time, in order to comply with any applicable requirement of law, the Collateral Agent may appoint another bank or trust company or one of
more other persons, either to act as co-agent or agents on behalf of the Secured Parties with such power and authority as may be necessary for the effectual operation of the provisions hereof and which may be specified in the instrument of
appointment (which may, in the discretion of the Collateral Agent, include provisions for indemnification and similar protections of such co-agent or separate agent). 
  
 SECTION 8. MISCELLANEOUS 
  
 8.1. Amendments in Writing. None of the terms or provisions of this Agreement may be waived, amended, supplemented or otherwise modified except by
a written instrument executed by each affected Grantor and the Collateral Agent or the Administrative Agent, as applicable, subject to any consents required under Section 11.1 of the Credit Agreement; provided that any provision of this
Agreement imposing obligations on any Grantor may be waived by the Collateral Agent or Administrative Agent, as applicable, in a written instrument executed by such Agent. 
  
 8.2. Notices. All notices, requests and demands to or upon the Collateral Agent, Administrative Agent or any Grantor
hereunder shall be effected in the manner provided for in Section 11.8 of the Credit Agreement; provided that any such notice, request or demand to or upon any Guarantor shall be addressed to such Guarantor at its notice address set
forth on Schedule 8.2. 
  
 8.3. No Waiver by Course of Conduct;
Cumulative Remedies. No Secured Party shall by any act (except by a written instrument pursuant to Section 8.1), delay, indulgence, omission or otherwise be deemed to have waived any right or remedy hereunder or to have acquiesced in any
Default or Event of Default. No failure to exercise, nor any delay in exercising, on the part of any Secured Party, any right, power or privilege hereunder shall operate as a waiver thereof. No single or partial exercise of any right, power or
privilege hereunder shall preclude any other or further exercise thereof or the exercise of any other right, power or privilege. A waiver by any Secured Party of any right or remedy hereunder on any one occasion shall not be construed as a bar to
any right or remedy which such Secured Party would otherwise have on any future occasion. The rights and remedies herein provided are cumulative, may be exercised singly or concurrently and are not exclusive of any other rights or remedies provided
by law. 
  

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 8.4. Enforcement Expenses; Indemnification. (a) Each Grantor agrees to pay or reimburse each
Secured Party for its reasonable out-of-pocket costs and expenses incurred in collecting against such Grantor under the guarantee contained in Section 2 or otherwise enforcing or preserving any rights under this Agreement and the other Loan
Documents to which such Grantor is a party, including the reasonable fees and disbursements of outside counsel to each Secured Party and outside counsel to the Collateral and Administrative Agents. 
  
 (b) Each Grantor agrees to pay, and to hold the Secured Parties harmless
from, any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits and reasonable out-of-pocket costs, expenses or disbursements of any kind or nature whatsoever with respect to, or resulting from any delay in paying,
any and all stamp, excise, sales or other taxes which may be payable or determined to be payable with respect to any of the Collateral or in connection with any of the transactions contemplated by this Agreement. 
  
 (c) Each Grantor agrees to pay, and to hold the Secured Parties harmless
from, any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits and reasonable out-of-pocket costs, expenses or disbursements of any kind or nature whatsoever with respect to the execution, delivery, enforcement,
performance and administration of this Agreement to the extent the Borrower would be required to do so pursuant to Section 11.4 of the Credit Agreement. 
  
 (d) The agreements in this Section shall survive repayment of the Obligations and all other amounts payable under the Credit Agreement and the other Loan
Documents. 
  
 8.5. Successors and Assigns. This Agreement
shall be binding upon the successors and assigns of each Grantor and shall inure to the benefit of the Secured Parties and their permitted successors and assigns; provided that, except as otherwise permitted by the Credit Agreement, no
Grantor may assign, transfer or delegate any of its rights or obligations under this Agreement without the prior written consent of the Collateral Agent or the Administrative Agent, as applicable, and any attempted assignment without such consent
shall be null and void. 
  
 8.6. Set-Off. Each Grantor
hereby irrevocably authorizes each Secured Party at any time and from time to time, while an Event of Default shall have occurred and be continuing, without notice to such Grantor or any other Grantor, any such notice being expressly waived by each
Grantor, to set-off and appropriate and apply any and all deposits (general or special, time or demand, provisional or final), in any currency, and any other credits, indebtedness or claims, in any currency, in each case whether direct or indirect,
absolute or contingent, matured or unmatured, at any time held or owing by such Secured Party to or for the credit or the account of such Grantor, or any part thereof in such amounts as such Secured Party may elect, against and on account of the
obligations and liabilities of such Grantor to such Secured Party hereunder and claims of every nature and description of such Secured Party against such Grantor, in any currency, whether arising hereunder, under the Credit Agreement or under any
other Loan Document, as such Secured Party may elect, whether or not any Secured Party has made any demand for payment and although such obligations, liabilities and claims may be contingent or unmatured. Each Secured Party shall notify such Grantor
promptly of any such set-off and the application made by such Secured Party of the proceeds thereof, provided that the failure to give such notice shall not affect the validity of such set-off and application. 
  

 38 

 
The rights of each Secured Party under this Section are in addition to other rights and remedies (including other rights of set-off) which such Secured Party
may have. Notwithstanding the foregoing or any contrary provision contained herein, in any other Loan Document or in any other agreement between any Grantor, on the one hand, and any Secured Party or any Affiliate of any Secured Party, on the other
hand, neither any Secured Party nor any Affiliate of any Secured Party shall have, and each Secured Party hereby waives and relinquishes, any right to set off any deposits (general or special, time or demand, provisional or final) held by such
Secured Party or Affiliate to or for the credit or the account of any Grantor against any or all of the Obligations if such deposits are, and are identified by the Borrower as, the proceeds of a capital contribution made by MI or an Affiliate of MI
to the Borrower or a Subsidiary of the Borrower in connection with the Contingent MI Payment. 
  
 8.7. Counterparts. This Agreement may be executed by one or more of the parties to this Agreement on any number of separate counterparts (including by facsimile), and all of said counterparts taken together
shall be deemed to constitute one and the same instrument. 
  
 8.8. Severability. Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 
  
 8.9. Section Headings. The Section headings used in this Agreement are for convenience of reference only and are not
to affect the construction hereof or be taken into consideration in the interpretation hereof. 
  
 8.10. Integration. This Agreement and the other Loan Documents represent the agreement of the Grantors, the Collateral Agent, the Administrative Agent and the other Secured Parties with respect to
the subject matter hereof and thereof, and there are no promises, undertakings, representations or warranties by any Secured Party relative to subject matter hereof and thereof not expressly set forth or referred to herein or in the other Loan
Documents. 
  
 8.11. APPLICABLE LAW. THIS AGREEMENT
SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF THAT WOULD REQUIRE APPLICATION OF LAWS OF ANOTHER STATE. 
  
 8.12. Submission to Jurisdiction; Waivers. Each Grantor hereby
irrevocably and unconditionally: 
  
 (a) submits for itself and
its property in any legal action or proceeding relating to this Agreement and the other Loan Documents to which it is a party, or for recognition and enforcement of any judgment in respect thereof, to the non-exclusive general jurisdiction of the
Courts of the State of New York, the courts of the United States of America for the Southern District of New York, and appellate courts from any thereof; 
  

 39 

 (b) consents that any such action or proceeding may be brought in such courts and waives any objection
that it may now or hereafter have to the venue of any such action or proceeding in any such court or that such action or proceeding was brought in an inconvenient court and agrees not to plead or claim the same; 
  
 (c) agrees that service of process in any such action or proceeding may be
effected by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, to such Grantor at its address referred to in Section 8.2 or at such other address of which the applicable Agent
shall have been notified pursuant thereto; 
  
 (d) agrees that
nothing herein shall affect the right to effect service of process in any other manner permitted by law or shall limit the right to sue in any other jurisdiction; and 
  
 (e) waives, to the maximum extent not prohibited by law, any right it may have to claim or recover in any legal action or
proceeding referred to in this Section any special, exemplary, punitive or consequential damages. 
  
 8.13. Acknowledgments. Each Grantor hereby acknowledges that: 
  
 (a) it has been advised by counsel in the negotiation, execution and delivery of this Agreement and the other Loan Documents
to which it is a party; 
  
 (b) no Secured Party has any fiduciary
relationship with or duty to any Grantor arising out of or in connection with this Agreement or any of the other Loan Documents, and the relationship between the Grantors, on the one hand, and the Secured Parties, on the other hand, in connection
herewith or therewith is solely that of debtor and creditor; and 
  
 (c) no joint venture is created hereby or by the other Loan Documents or otherwise exists by virtue of the transactions contemplated hereby among the Secured Parties or among the Grantors and the Secured Parties. 
  
 8.14. Additional Grantors. Each Subsidiary of the Borrower that is
required to become a party to this Agreement pursuant to Section 7.11 of the Credit Agreement shall become a Grantor and a Guarantor for all purposes of this Agreement upon execution and delivery by such Subsidiary of an Assumption Agreement in
the form of Annex 1 hereto. 
  
 8.15. Releases. (a) At
such time as the Loans and the other Obligations (other than Obligations in respect of any Specified Hedge Agreement) shall have been paid in full, the Commitments under the Credit Agreement have been terminated or expired and each Letter of Credit
issued under the Credit Agreement shall be cash collateralized or no longer outstanding, the Collateral shall be released from the Liens created hereby, and this Agreement and all obligations (other than those expressly stated to survive such
termination) of the Administrative Agent, Collateral Agent and each Grantor hereunder shall terminate, all without delivery of any instrument or performance of any act by any party, and all rights to the Collateral shall revert to the Grantors. At
the request and sole expense of any Grantor following any such termination, the Collateral Agent shall deliver to such Grantor any Collateral held by the Collateral Agent hereunder, and execute and deliver to such Grantor such documents as such
Grantor shall reasonably request to evidence such termination. 
  

 40 

 (b) If any of the Collateral shall be sold or otherwise disposed of by any Grantor in a transaction
permitted by the Credit Agreement, then the Collateral Agent, at the request and sole expense of such Grantor, shall execute and deliver to such Grantor all releases or other documents reasonably necessary for the release of the Liens created hereby
on such Collateral. At the request and sole expense of the Borrower, a Guarantor shall be released from its obligations hereunder in the event that all the Equity Interests in such Guarantor shall be sold or otherwise disposed of in a transaction
permitted by the Credit Agreement; provided that the Borrower shall have delivered to the Collateral Agent, at least three Business Days (or such lesser period permitted in writing by the Collateral Agent) prior to the date of the proposed
release, a written request for such release identifying the relevant Guarantor and the terms of the relevant sale or other disposition in reasonable detail, including the price thereof and any expenses incurred in connection therewith, together with
a certification by the Borrower stating that such transaction is in compliance with the Credit Agreement and the other Loan Documents. 
  
 (c) Each Grantor acknowledges that it is not authorized to file any financing statement or amendment or termination statement with respect to any
financing statement originally filed in connection herewith without the prior written consent of the Collateral Agent, subject to such Grantor’s rights under Sections 9-509(d)(2) and 9-518 of the New York UCC. 
  
 8.16. WAIVER OF JURY TRIAL. EACH GRANTOR, THE ADMINISTRATIVE AGENT
AND COLLATERAL AGENT HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN. 
  
 [Remainder of page intentionally left blank] 
  

 41 

 IN WITNESS WHEREOF, each of the undersigned has caused this Pledge and Security Agreement to be duly
executed and delivered as of the date first above written. 
  

			
	THE BABCOCK AND WILCOX COMPANY
		
	By:	 	 /s/ James R. Easter

	Name:	 	James R. Easter
	Title:	 	Treasurer
	
	AMERICON EQUIPMENT SERVICES, INC.
	AMERICON, INC.
	APPLIED SYNERGISTICS, INC.
	B&W SERVICE COMPANY
	BABCOCK & WILCOX CHINA HOLDINGS, INC.
	 BABCOCK & WILCOX CONSTRUCTION CO., INC.

	 BABCOCK & WILCOX DENMARK HOLDINGS, INC.

	BABCOCK & WILCOX EBENSBURG POWER, INC.
	BABCOCK & WILCOX EQUITY INVESTMENTS, INC.
	 BABCOCK & WILCOX INTERNATIONAL SALES AND SERVICE CORPORATION

	 BABCOCK & WILCOX INTERNATIONAL, INC.

	 DIAMOND OPERATING CO., INC.

	 DIAMOND POWER AUSTRALIA HOLDINGS, INC.

	 DIAMOND POWER CHINA HOLDINGS, INC.

	 DIAMOND POWER EQUITY INVESTMENTS, INC.

	 DIAMOND POWER INTERNATIONAL, INC.

	 PALM BEACH RESOURCE RECOVERY CORPORATION

	 POWER SYSTEMS OPERATIONS, INC.

	 REVLOC RECLAMATION SERVICE, INC.

		
	By:	 	 /s/ James R. Easter

	Name:	 	James R. Easter
	Title:	 	Treasurer of each of the above-listed Guarantors

  

 42 

			
	NATIONAL ECOLOGY COMPANY NORTH COUNTY RECYCLING, INC.
	 	 	 
	By:	 	 /s/ Robert E. Stumpf

	Name	 	: Robert E. Stumpf
	Title:	 	Treasurer of each of the above-listed Guarantors
	
	CREDIT SUISSE, CAYMAN ISLANDS BRANCH, as Administrative Agent and Collateral Agent
		
	By:	 	 /s/ Robert Hetu

	Name:	 	Robert Hetu
	Title:	 	Managing Director
		
	By:	 	 /s/ Cassandra Droogan

	Name	 	: Cassandra Droogan
	Title:	 	Vice President
	 	 	 
	 	 	 

  

 43

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