Document:

EX-4.1

 Exhibit 4.1 

iCIMS HOLDING CORP. 

REGISTRATION RIGHTS AGREEMENT 

THIS REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made as of [•], 2021 among iCIMS Holding
Corp., a Delaware corporation (the “Company”), each of the investors listed on the signature pages hereto under the caption “Sponsor Investors” (collectively, the “Sponsor Investors”), each Person listed
on the signature pages under the caption “Other Investors” or who executes a Joinder as an “Other Investor” (collectively, the “Other Investors”) and each of the executives who executes a Joinder as an
“Executive” (collectively, the “Executives”). Except as otherwise specified herein, all capitalized terms used in this Agreement are defined in Exhibit A attached hereto. 

In consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties to this Agreement hereby agree as follows: 
 Section 1 Demand Registrations. 

(a) Requests for Registration. At any time and from time to time, the Sponsor Investors may request registration under the Securities
Act of all or any portion of their Registrable Securities on Form S-1 or any similar long-form registration statement (“Long-Form Registrations”) or on
Form S-3 or any similar short-form registration statement (“Short-Form Registrations”), if available (any such requested registration, a “Demand Registration”). The
Sponsor Investors may request that any Demand Registration be made pursuant to Rule 415 under the Securities Act (a “Shelf Registration”) and (if the Company is a WKSI at the time any such request is submitted to the Company or will
become one by the time of the filing of such Shelf Registration) that such Shelf Registration be an automatic shelf registration statement (as defined in Rule 405 under the Securities Act) (an “Automatic Shelf Registration
Statement”). Each request for a Demand Registration must specify the approximate number or dollar value of Registrable Securities requested to be registered by the requesting Holders and (if known) the intended method of distribution. The
Sponsor Investors will be entitled to request an unlimited number of Demand Registrations. The Company will pay all Registration Expenses, whether or not any such registration is consummated. 

(b) Notice to Other Investors. Within four (4) Business Days after receipt of any such request, the Company will give written
notice of the Demand Registration to all other Holders and, subject to the terms of Section 1(e), will include in such Demand Registration (and in all related registrations and qualifications under state blue sky laws and
in any related underwriting) all Registrable Securities with respect to which the Company has received written requests for inclusion therein within ten (10) days after the receipt of the Company’s notice; provided that, with the
written consent of the Sponsor Investor, the Company may, or at the written request of the Sponsor Investors, the Company shall, instead provide notice of the Demand Registration to all Other Investors within three (3) Business Days following
the non-confidential filing of the registration statement with respect to the Demand Registration so long as such registration statement is not an Automatic Shelf Registration Statement. 

(c) Form of Registrations. All Long-Form Registrations will be underwritten registrations unless
otherwise approved by the Sponsor Investor. Demand Registrations will be Short-Form Registrations whenever the Company is permitted to use any applicable short form unless otherwise requested by the Sponsor Investor. 

 (d) Shelf Registrations. 

(i) For so long as a registration statement for a Shelf Registration (a “Shelf Registration Statement”) is and
remains effective, the Sponsor Investors will have the right at any time or from time to time to elect to sell pursuant to an offering (including an underwritten offering Registrable Securities available for sale pursuant to such registration
statement (“Shelf Registrable Securities”). If the Sponsor Investors desire to sell Registrable Securities pursuant to an underwritten offering, then the Sponsor Investors may deliver to the Company a written notice (a
“Shelf Offering Notice”) specifying the number of Shelf Registrable Securities that the Sponsor Investors desire to sell pursuant to such underwritten offering (the “Shelf Offering”). As promptly as practicable, but
in no event later than two (2) Business Days after receipt of a Shelf Offering Notice, the Company will give written notice of such Shelf Offering Notice to all other Holders of Shelf Registrable Securities that have been identified as selling
stockholders in such Shelf Registration Statement and are otherwise permitted to sell in such Shelf Offering, which such notice shall request that each such Holder specify, within seven (7) days after the Company’s receipt of the Shelf
Offering Notice, the maximum number of Shelf Registrable Securities such Holder desires to be disposed of in such Shelf Offering. The Company, subject to Section 1(e) and Section 7, will include in
such Shelf Offering all Shelf Registrable Securities with respect to which the Company has received timely written requests for inclusion. The Company will, as expeditiously as possible (and in any event within fourteen (14) days after the
receipt of a Shelf Offering Notice), but subject to Section 1(e), use its best efforts to consummate such Shelf Offering. 

(ii) If the Sponsor Investors desire to engage in an underwritten block trade or bought deal pursuant to a Shelf Registration
Statement (either through filing an Automatic Shelf Registration Statement or through a take-down from an already existing Shelf Registration Statement) (each, an “Underwritten Block Trade”), then notwithstanding the time periods
set forth in Section 1(d)(i), the Sponsor Investors may notify the Company of the Underwritten Block Trade not less than two (2) Business Days prior to the day such offering is first anticipated to commence. If
requested by the Sponsor Investors, the Company will promptly notify other Holders of such Underwritten Block Trade and such notified Holders (each, a “Potential Participant”) may elect whether or not to participate no later than
the next Business Day (i.e. one (1) Business Day prior to the day such offering is to commence) (unless a longer period is agreed to by the Sponsor Investors), and the Company will as expeditiously as possible use its best efforts to
facilitate such Underwritten Block Trade (which may close as early as two (2) Business Days after the date it commences); provided further that, notwithstanding the provisions of Section 1(d)(i), no
Holder (other than Holders of Sponsor Investor Registrable Securities) will be permitted to participate in an Underwritten Block Trade without the written consent of the Sponsor Investor. Any Potential Participant’s request to participate in an
Underwritten Block Trade shall be binding on the Potential Participant. 
 (iii) All determinations as to whether to complete
any Shelf Offering and as to the timing, manner, price and other terms of any Shelf Offering contemplated by this Section 1(d) shall be determined by the Sponsor Investors, and the Company shall use its best efforts to
cause any Shelf Offering to occur in accordance with such determinations as promptly as practicable. 
 (iv) The Company
will, at the request of the Sponsor Investors, file any prospectus supplement or any post-effective amendments and otherwise take any action necessary to include therein all disclosure and language deemed necessary or advisable by the Sponsor
Investors to effect such Shelf Offering. 
 (e) Priority on Demand Registrations and Shelf Offerings. The Company will not include in
any Demand Registration any securities which are not Registrable Securities without the prior written consent of the Sponsor Investors. If a Demand Registration or a Shelf Offering is an underwritten offering and the managing underwriters advise the
Company in writing that in their opinion the number of Registrable Securities and (if permitted hereunder) other securities requested to be included in such offering 

  
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exceeds the number of Registrable Securities and other securities (if any), which can be sold therein without adversely affecting the marketability, proposed offering price, timing or method of
distribution of the offering, then the Company will include in such offering (prior to the inclusion of any securities which are not Registrable Securities); (i) first, the number of Sponsor Investor Registrable Securities and Other
Registrable Securities requested to be included which, in the opinion of such underwriters, can be sold, without any such adverse effect, pro rata among the respective Participating Sponsor Investors and Other Investors on the basis of the number of
Sponsor Investor Registrable Securities and Other Registrable Securities owned by each such Participating Sponsor Investor and Other Investor, as applicable; and (ii) second, the number of Registrable Securities requested to be included
by any other Holders which, in the opinion of such underwriters, can be sold, without any such adverse effect, pro rata among such Holders on the basis of the number of Registrable Securities owned by each such Holder. Notwithstanding anything to
the contrary herein, if any Holders of Executive Registrable Securities have requested to include such securities in an underwritten offering and the managing underwriters for such offering advise the Company that in their opinion the inclusion of
some or all of such Executive Registrable Securities could adversely affect the marketability, proposed offering price, timing and/or method of distribution of the offering, then the Company shall exclude from such offering the number of such
Executive Registrable Securities identified by the managing underwriters as having any such adverse effect prior to the exclusion of any Registrable Securities of any other Holders as set forth in this Section 1(e), which,
for the avoidance of doubt, may be all such Executive Registrable Securities requested to be included such offering.1  

(f) Restrictions on Demand Registration and Shelf Offerings. 

(i) The Company may postpone, for up to 60 days (or with the consent of the Sponsor Investors, a longer period) from the date
of the request (the “Suspension Period”), the filing or the effectiveness of a registration statement for a Demand Registration or suspend the use of a prospectus that is part of a Shelf Registration Statement (and therefore
suspend sales of the Shelf Registrable Securities) by providing written notice to the Holders if the following conditions are met: (A) the Company determines that the offer or sale of Registrable Securities would reasonably be expected
to have a material adverse effect on any proposal or plan by the Company or any Subsidiary to engage in any material acquisition of assets or stock (other than in the ordinary course of business) or any material merger, consolidation, tender offer,
recapitalization, reorganization, financing or other transaction involving the Company and (B) upon advice of counsel, the sale of Registrable Securities pursuant to the registration statement would require disclosure of material non-public information not otherwise required to be disclosed under applicable law, and either (x) the Company has a bona fide business purpose for preserving the confidentiality of such transaction,
(y) disclosure would have a material adverse effect on the Company or the Company’s ability to consummate such transaction, or (z) such transaction renders the Company unable to comply with SEC requirements, in each case under
circumstances that would make it impractical or inadvisable to cause the registration statement (or such filings) to become effective or to promptly amend or supplement the registration statement on a post effective basis, as applicable. The Company
may delay or suspend the effectiveness of a Demand Registration or Shelf Registration Statement pursuant to this Section 1(f)(i) only once in any twelve (12)-month period (for avoidance of doubt, in addition to the
Company’s rights and obligations under Section 4(a)(vi)) unless additional delays or suspensions are approved by the Sponsor Investors. 

  
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 (ii) In the case of an event that causes the Company to suspend the use of a
Shelf Registration Statement as set forth in Section 1(f)(i) above or pursuant to Section 4(a)(vi) (a “Suspension Event”), the Company will give a notice to the Holders
whose Registrable Securities are registered pursuant to such Shelf Registration Statement (a “Suspension Notice”) to suspend sales of the Registrable Securities and such notice must state generally the basis for the notice and that
such suspension will continue only for so long as the Suspension Event or its effect is continuing. Each Holder agrees not to effect any sales of its Registrable Securities pursuant to such Shelf Registration Statement (or such filings) at any time
after it has received a Suspension Notice from the Company and prior to receipt of an End of Suspension Notice. A Holder may recommence effecting sales of the Registrable Securities pursuant to the Shelf Registration Statement (or such filings)
following further written notice to such effect (an “End of Suspension Notice”) from the Company, which End of Suspension Notice will be given by the Company to the Holders promptly following the conclusion of any Suspension Event
(and in any event during the permitted Suspension Period). 
 (g) Selection of Underwriters. The legal counsel to the Company, the
investment banker(s) and manager(s) to administer any underwritten offering in connection with any Demand Registration or Shelf Offering shall be selected by the Sponsor Investors. 

(h) Other Registration Rights. Except as provided in this Agreement, the Company will not grant to any Person(s) the right to request
the Company or any Subsidiary to register any equity securities of the Company or any Subsidiary, or any securities convertible or exchangeable into or exercisable for such securities, without the prior written consent of the Sponsor Investors;
provided that, with the prior approval of the Sponsor Investors, the Company may grant rights to employees of the Company and its Subsidiaries to participate in Piggyback Registrations so long as they sign a Joinder as an
“Executive” and Holder of “Executive Registrable Securities” hereunder. 
 (i) Revocation of Demand Notice or Shelf
Offering Notice. At any time prior to the effective date of the registration statement relating to a Demand Registration or the “pricing” of any offering relating to a Shelf Offering Notice, the Sponsor Investors who initiated
such Demand Registration or Shelf Offering may revoke or withdraw such notice of a Demand Registration or Shelf Offering Notice on behalf of all Holders participating in such Demand Registration or Shelf Offering without liability to such Holders
(including, for the avoidance of doubt, the other Participating Sponsor Investors), in each case by providing written notice to the Company. 

(j) Confidentiality. Each Holder agrees to treat as confidential the receipt of any notice hereunder (including notice of a Demand
Registration, a Shelf Offering Notice and a Suspension Notice) and the information contained therein, and not to disclose or use the information contained in any such notice (or the existence thereof) without the prior written consent of the Company
until such time as the information contained therein is or becomes available to the public generally (other than as a result of disclosure by such Holder in breach of the terms of this Agreement). 

Section 2 Piggyback Registrations. 

(a) Right to Piggyback. Whenever the Company proposes to register any of its equity securities under the Securities Act (including
primary and secondary registrations, and other than pursuant to an Excluded Registration) (a “Piggyback Registration”), the Company will give prompt written notice (and in any event within three (3) Business Days
after the public filing of the registration statement relating to the Piggyback Registration) to all Holders of its intention to effect such Piggyback Registration and, subject to the terms of Section 2(b) and
Section 2(c), will include in such Piggyback Registration (and in all related registrations or qualifications under blue sky laws and in any related underwriting) all Registrable Securities with respect to which the Company
has received written requests for inclusion therein within ten (10) days after delivery of the Company’s notice. Any Participating Sponsor Investor may withdraw its request for inclusion at any time prior to executing the
underwriting agreement, or if none, prior to the applicable registration statement becoming effective. 

  
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 (b) Priority on Primary Registrations. If a Piggyback Registration is an underwritten
primary registration on behalf of the Company, and the managing underwriters advise the Company in writing that in their opinion the number of securities requested to be included in such registration exceeds the number which can be sold in such
offering without adversely affecting the marketability, proposed offering price, timing or method of distribution of the offering, the Company will include in such registration (i) first, the securities the Company proposes to sell;
(ii) second, the Sponsor Investor Registrable Securities and Other Registrable Securities requested to be included in such registration which, in the opinion of the underwriters, can be sold without any such adverse effect, pro rata
among the Participating Sponsor Investors and Other Investors on the basis of the number of Sponsor Investor Registrable Securities and Other Registrable Securities owned by each such Participating Sponsor Investor and Other Investor, as applicable;
(iii) third, any other Registrable Securities requested to be included in such registration by any other Holder which, in the opinion of the underwriters, can be sold without any such adverse effect, pro rata among such Holders on the
basis of the number of Registrable Securities owned by each such Holder, and (iv) fourth, other securities requested to be included in such registration which, in the opinion of the underwriters, can be sold without any such adverse
effect. Notwithstanding anything to the contrary herein, if any Holders of Executive Registrable Securities have requested to include such securities in a Piggyback Registration that is an underwritten primary offering on behalf of the Company and
the managing underwriters for such offering advise the Company in writing that in their opinion the inclusion of some or all of such Executive Registrable Securities could adversely affect the marketability, proposed offering price, timing and/or
method of distribution of the offering, the Company shall first exclude from such offering the number (which may be all) of such Executive Registrable Securities identified by the managing underwriters as having any such adverse effect prior to the
exclusion of any securities in such offering. 
 (c) Priority on Secondary Registrations. If a Piggyback Registration is an
underwritten secondary registration on behalf of holders of the Company’s equity securities (other than pursuant to Section 1 hereof), and the managing underwriters advise the Company in writing that in their opinion the number of
securities requested to be included in such registration exceeds the number which can be sold in such offering without adversely affecting the marketability, proposed offering price, timing or method of distribution of the offering, the Company will
include in such registration (i) first, the securities requested to be included therein by the holders initially requesting such registration which, in the opinion of the underwriters, can be sold without any such adverse effect,
(ii) second, the Sponsor Investor Registrable Securities and the Other Registrable Securities requested to be included in such registration, pro rata among the Participating Sponsor Investors and Other Investors holding such Sponsor
Investor Registrable Securities and Other Registrable Securities on the basis of the number of Sponsor Investor Registrable Securities and Other Registrable Securities owned by each such Participating Sponsor Investor and Other Investor, as
applicable, which, in the opinion of the underwriters, can be sold without any such adverse effect, (iii) third, any other Registrable Securities requested to be included in such registration by any other Holder, pro rata among such
Holders on the basis of the number of Registrable Securities owned by each such Holder which, in the opinion of the underwriters, can be sold without any such adverse effect, and (iv) fourth, other securities requested to be included in
such registration which, in the opinion of the underwriters, can be sold without any such adverse effect. Notwithstanding anything to the contrary herein, if any Holders of Executive Registrable Securities have requested to include such securities
in a Piggyback Registration that is an underwritten secondary offering and the managing underwriters for such offering advise the Company in writing that in their opinion the inclusion of some or all of such Executive Registrable Securities could
adversely affect the marketability, proposed offering price, timing or method of distribution of the offering, the Company shall be permitted to first exclude from such offering the number (which may be all) of such Executive Registrable Securities
identified by the managing underwriters as having any such adverse effect prior to the exclusion of any securities in such offering. 

  
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 (d) Right to Terminate Registration. The Company will have the right to terminate or
withdraw any registration initiated by it under this Section 2, whether or not any holder of Registrable Securities has elected to include securities in such registration. 

(e) Selection of Underwriters. If any Piggyback Registration is an underwritten offering, the legal counsel for the Company, the
investment banker(s) and manager(s) for the offering shall be selected by the Sponsor Investors. 
 Section 3 Stockholder Lock-Up Agreements and Company Holdback Agreement. 
 (a) Stockholder Lock-up Agreements. In connection with any underwritten Public Offering, each Holder will enter into any lock-up, holdback or similar agreements requested by the
underwriter(s) managing such offering, in each case with such modifications and exceptions as may be approved by the Sponsor Investors. Without limiting the generality of the foregoing, each Holder hereby agrees that in connection with the initial
Public Offering and in connection with any Demand Registration, Shelf Offering or Piggyback Registration that is an underwritten Public Offering, not to (i) offer, sell, contract to sell, pledge or otherwise dispose of (including sales pursuant
to Rule 144), directly or indirectly, any equity securities of the Company (including equity securities of the Company that may be deemed to be beneficially owned by such Holder in accordance with the rules and regulations of the SEC) (collectively,
“Securities”), or any securities, options or rights convertible into or exchangeable or exercisable for Securities (collectively, “Other Securities”), (ii) enter into a transaction which would have the same effect
as described in clause (i) above, (iii) enter into any swap, hedge or other arrangement that transfers, in whole or in part, any of the economic consequences or ownership of any Securities or Other Securities, whether such transaction is to be
settled by delivery of such Securities or Other Securities, in cash or otherwise (each of (i), (ii) and (iii) above, a “Sale Transaction”), or (iv) publicly disclose the intention to enter into any Sale Transaction,
commencing on the date on which the Company gives notice to the Holders that a preliminary prospectus has been circulated for such underwritten Public Offering or the “pricing” of such offering and continuing to the date that is (x) 180
days following the date of the final prospectus for such underwritten Public Offering in the case of the initial Public Offering or (y) 90 days following the date of the final prospectus in the case of any other such underwritten Public
Offering (each such period, or such shorter period as agreed to by the managing underwriters, a “Holdback Period”), in each case with such modifications and exceptions as may be approved by the Sponsor Investors. The Company may
impose stop-transfer instructions with respect to any Securities or Other Securities subject to the restrictions set forth in this Section 3(a) until the end of such Holdback Period. 

(b) Company Holdback Agreement. The Company (i) will not file any registration statement for a Public Offering or cause any such
registration statement to become effective, or effect any public sale or distribution of its Securities or Other Securities during any Holdback Period (other than as part of such underwritten Public Offering, or a registration on Form S-4 or Form S-8 or any successor or similar form which is (x) then in effect or (y) shall become effective upon the conversion, exchange or exercise of any then
outstanding Other Securities) and (ii) will cause each holder of Securities and Other Securities (including each of its directors and executive officers) to agree not to effect any Sale Transaction during any Holdback Period, except as part of
such underwritten registration (if otherwise permitted), unless approved in writing by the Sponsor Investors and the underwriters managing the Public Offering and to enter into any lock-up, holdback or similar
agreements requested by the underwriter(s) managing such offering, in each case with such modifications and exceptions as may be approved by the Sponsor Investors. 

  
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 Section 4 Registration Procedures. 

(a) Company Obligations. Whenever the Holders have requested that any Registrable Securities be registered pursuant to this Agreement or
have initiated a Shelf Offering, the Company will use its best efforts to effect the registration and the sale of such Registrable Securities in accordance with the intended method of disposition thereof, and pursuant thereto the Company will as
expeditiously as possible: 
 (i) prepare and file with (or submit confidentially to) the SEC a registration statement, and
all amendments and supplements thereto and related prospectuses, with respect to such Registrable Securities and use its best efforts to cause such registration statement to become effective, all in accordance with the Securities Act and all
applicable rules and regulations promulgated thereunder (provided that before filing or confidentially submitting a registration statement or prospectus or any amendments or supplements thereto, the Company will furnish to the counsel selected by
the Sponsor Investors covered by such registration statement copies of all such documents proposed to be filed or submitted, which documents will be subject to the review and comment of such counsel); 

(ii) notify each Holder of (A) the issuance by the SEC of any stop order suspending the effectiveness of any registration
statement or the initiation of any proceedings for that purpose, (B) the receipt by the Company or its counsel of any notification with respect to the suspension of the qualification of the Registrable Securities for sale in any jurisdiction or
the initiation or threatening of any proceeding for such purpose, and (C) the effectiveness of each registration statement filed hereunder; 

(iii) prepare and file with the SEC such amendments and supplements to such registration statement and the prospectus used in
connection therewith as may be necessary to keep such registration statement effective for a period ending when all of the securities covered by such registration statement have been disposed of in accordance with the intended methods of
distribution by the sellers thereof set forth in such registration statement (but not in any event before the expiration of any longer period required under the Securities Act or, if such registration statement relates to an underwritten Public
Offering, such longer period as in the opinion of counsel for the underwriters a prospectus is required by law to be delivered in connection with sale of Registrable Securities by an underwriter or dealer) and comply with the provisions of the
Securities Act with respect to the disposition of all securities covered by such registration statement during such period in accordance with the intended methods of disposition by the sellers thereof set forth in such registration statement; 

(iv) furnish, without charge, to each seller of Registrable Securities thereunder and each underwriter, if any, such number of
copies of such registration statement, each amendment and supplement thereto, the prospectus included in such registration statement (including each preliminary prospectus) (in each case including all exhibits and documents incorporated by reference
therein), each amendment and supplement thereto, each Free Writing Prospectus and such other documents as such seller or underwriter, if any, may reasonably request in order to facilitate the disposition of the Registrable Securities owned by such
seller (the Company hereby consenting to the use in accordance with all applicable laws of each such registration statement, each such amendment and supplement thereto, and each such prospectus (or preliminary prospectus or supplement thereto) or
Free Writing Prospectus by each such seller of Registrable Securities and the underwriters, if any, in connection with the offering and sale of the Registrable Securities covered by such registration statement or prospectus); 

  
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 (v) use its best efforts to register or qualify such Registrable Securities
under such other securities or blue sky laws of such jurisdictions as any seller reasonably requests and do any and all other acts and things which may be reasonably necessary or advisable to enable such seller to consummate the disposition in such
jurisdictions of the Registrable Securities owned by such seller (provided that the Company will not be required to (A) qualify generally to do business in any jurisdiction where it would not otherwise be required to qualify but for this
subparagraph or (B) consent to general service of process in any such jurisdiction or (C) subject itself to taxation in any such jurisdiction); 

(vi) notify in writing each seller of such Registrable Securities (A) promptly after it receives notice thereof, of the
date and time when such registration statement and each post-effective amendment thereto has become effective or a prospectus or supplement to any prospectus relating to a registration statement has been filed and when any registration or
qualification has become effective under a state securities or blue sky law or any exemption thereunder has been obtained, (B) promptly after receipt thereof, of any request by the SEC for the amendment or supplementing of such registration
statement or prospectus or for additional information, and (C) at any time when a prospectus relating thereto is required to be delivered under the Securities Act, of the happening of any event or of any information or circumstances as a result
of which the prospectus included in such registration statement contains an untrue statement of a material fact or omits any fact necessary to make the statements therein not misleading, and, subject to Section 1(f), if
required by applicable law or to the extent requested by the Sponsor Investor, the Company will use its best efforts to promptly prepare and file a supplement or amendment to such prospectus so that, as thereafter delivered to the purchasers of such
Registrable Securities, such prospectus will not contain an untrue statement of a material fact or omit to state any fact necessary to make the statements therein not misleading and (D) if at any time the representations and warranties of the
Company in any underwriting agreement, securities sale agreement, or other similar agreement, relating to the offering shall cease to be true and correct; 

(vii) (A) use best efforts to cause all such Registrable Securities to be listed on each securities exchange on which
similar securities issued by the Company are then listed and, if not so listed, to be listed on a securities exchange and, without limiting the generality of the foregoing, to arrange for at least two market markers to register as such with respect
to such Registrable Securities with FINRA, and (B) comply (and continue to comply) with the requirements of any self-regulatory organization applicable to the Company, including without limitation all corporate governance requirements; 

(viii) use best efforts to provide a transfer agent and registrar for all such Registrable Securities not later than the
effective date of such registration statement; 
 (ix) enter into and perform such customary agreements (including, as
applicable, underwriting agreements in customary form) and take all such other actions as the Sponsor Investors or the underwriters, if any, reasonably request in order to expedite or facilitate the disposition of such Registrable Securities
(including, without limitation, making available the executive officers of the Company and participating in “road shows,” investor presentations, marketing events and other selling efforts and effecting a stock or unit split or
combination, recapitalization or reorganization); 
 (x) make available for inspection by any seller of Registrable
Securities, any underwriter participating in any disposition or sale pursuant to such registration statement and any attorney, accountant or other agent retained by any such seller or underwriter, all financial and other records, pertinent corporate
and business documents and properties of the Company as will be 

  
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necessary to enable them to exercise their due diligence responsibility, and cause the Company’s officers, directors, employees, agents, representatives and independent accountants to supply
all information reasonably requested by any such seller, underwriter, attorney, accountant or agent in connection with such registration statement and the disposition of such Registrable Securities pursuant thereto; 

(xi) take all actions to ensure that any Free-Writing Prospectus utilized in connection with any Demand Registration or
Piggyback Registration or Shelf Offering hereunder complies in all material respects with the Securities Act, is filed in accordance with the Securities Act to the extent required thereby, is retained in accordance with the Securities Act to the
extent required thereby and, when taken together with the related prospectus, prospectus supplement and related documents, will not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements
therein, in light of the circumstances under which they were made, not misleading; 
 (xii) otherwise use its best efforts to
comply with all applicable rules and regulations of the SEC, and make available to its security holders, as soon as reasonably practicable, an earnings statement covering the period of at least twelve (12) months beginning with the first day of
the Company’s first full calendar quarter after the effective date of the registration statement, which earnings statement will satisfy the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder; 

(xiii) permit any Holder which, in its sole and exclusive judgment, might be deemed to be an underwriter or a controlling
person of the Company, to participate in the preparation of such registration or comparable statement and to allow such Holder to provide language for insertion therein, in form and substance satisfactory to the Company, which in the reasonable
judgment of such Holder and its counsel should be included; 
 (xiv) use best efforts to (A) make Short-Form
Registration available for the sale of Registrable Securities and (B) prevent the issuance of any stop order suspending the effectiveness of a registration statement, or the issuance of any order suspending or preventing the use of any related
prospectus or suspending the qualification of any Common Equity included in such registration statement for sale in any jurisdiction use, and in the event any such order is issued, best efforts to obtain promptly the withdrawal of such order; 

(xv) use its reasonable best efforts to cause such Registrable Securities covered by such registration statement to be
registered with or approved by such other governmental agencies or authorities as may be necessary to enable the sellers thereof to consummate the disposition of such Registrable Securities; 

(xvi) cooperate with the Holders covered by the registration statement and the managing underwriter or agent, if any, to
facilitate the timely preparation and delivery of certificates (not bearing any restrictive legends) representing securities to be sold under the registration statement, or the removal of any restrictive legends associated with any account at which
such securities are held, and enable such securities to be in such denominations and registered in such names as the managing underwriter, or agent, if any, or such Holders may request; 

(xvii) if requested by any managing underwriter, include in any prospectus or prospectus supplement updated financial or
business information for the Company’s most recent period or current quarterly period (including estimated results or ranges of results) if required for purposes of marketing the offering in the view of the managing underwriter; 

  
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 (xviii) take no direct or indirect action prohibited by Regulation M under
the Exchange Act; provided, however, that to the extent that any prohibition is applicable to the Company, the Company will take such action as is necessary to make any such prohibition inapplicable; 

(xix) cooperate with each Holder covered by the registration statement and each underwriter or agent participating in the
disposition of such Registrable Securities and their respective counsel in connection with the preparation and filing of applications, notices, registrations and responses to requests for additional information with FINRA, the New York Stock
Exchange, Nasdaq or any other national securities exchange on which the shares of Common Equity are or are to be listed, and (B) to the extent required by the rules and regulations of FINRA, retain a Qualified Independent Underwriter acceptable
to the managing underwriter; 
 (xx) in the case of any underwritten offering, use its best efforts to obtain, and
deliver to the underwriter(s), in the manner and to the extent provided for in the applicable underwriting agreement, one or more cold comfort letters from the Company’s independent public accountants in customary form and covering such matters
of the type customarily covered by cold comfort letters; 
 (xxi) use its best efforts to provide (A) a legal opinion of
the Company’s outside counsel, dated the effective date of such registration statement addressed to the Company, (B) on the date that such Registrable Securities are delivered to the underwriters for sale in connection with a Demand
Registration or Shelf Offering, if such securities are being sold through underwriters, or, if such securities are not being sold through underwriters, on the closing date of the applicable sale, (1) one or more legal opinions of the
Company’s outside counsel, dated such date, in form and substance as customarily given to underwriters in an underwritten public offering or, in the case of a non-underwritten offering, to the broker,
placement agent or other agent of the Holders assisting in the sale of the Registrable Securities and (2) one or more “negative assurances letters” of the Company’s outside counsel, dated such date, in form and substance as is
customarily given to underwriters in an underwritten public offering or, in the case of a non-underwritten offering, to the broker, placement agent or other agent of the Holders assisting in the sale of the
Registrable Securities, in each case, addressed to the underwriters, if any, or, if requested, in the case of a non-underwritten offering, to the broker, placement agent or other agent of the Holders assisting
in the sale of the Registrable Securities and (3) customary certificates executed by authorized officers of the Company as may be requested by any Holder or any underwriter of such Registrable Securities; 

(xxii) if the Company files an Automatic Shelf Registration Statement covering any Registrable Securities, use its best efforts
to remain a WKSI (and not become an ineligible issuer (as defined in Rule 405 under the Securities Act)) during the period during which such Automatic Shelf Registration Statement is required to remain effective; 

(xxiii) if the Company does not pay the filing fee covering the Registrable Securities at the time an Automatic Shelf
Registration Statement is filed, pay such fee at such time or times as the Registrable Securities are to be sold; 

  
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 (xxiv) if the Automatic Shelf Registration Statement has been outstanding
for at least three (3) years, at the end of the third year, refile a new Automatic Shelf Registration Statement covering the Registrable Securities, and, if at any time when the Company is required to
re-evaluate its WKSI status the Company determines that it is not a WKSI, use its best efforts to refile the Shelf Registration Statement on Form S-3 and, if such form
is not available, Form S-1 and keep such registration statement effective during the period during which such registration statement is required to be kept effective; and 

(xxv) if requested by any Participating Sponsor Investor, cooperate with such Participating Sponsor Investor and with the
managing underwriter or agent, if any, on reasonable notice to facilitate any Charitable Gifting Event and to prepare and file with the SEC such amendments and supplements to such Registration Statement and the Prospectus used in connection
therewith as may be necessary to permit any such recipient Charitable Organization to sell in the underwritten offering if it so elects. 

(b) Officer Obligations. Each Holder that is an officer of the Company agrees that if and for so long as he or she is employed by the
Company or any Subsidiary thereof, he or she will participate fully in the sale process in a manner customary for persons in like positions and consistent with his or her other duties with the Company, including the preparation of the registration
statement and the preparation and presentation of any road shows. 
 (c) Automatic Shelf Registration Statements. If the Company files
any Automatic Shelf Registration Statement for the benefit of the holders of any of its securities other than the Holders, and the Sponsor Investors do not request that their Registrable Securities be included in such Shelf Registration Statement,
the Company agrees that, at the request of the Sponsor Investors, it will include in such Automatic Shelf Registration Statement such disclosures as may be required by Rule 430B in order to ensure that the Sponsor Investors may be added to such
Shelf Registration Statement at a later time through the filing of a prospectus supplement rather than a post-effective amendment. If the Company has filed any Automatic Shelf Registration Statement for the benefit of the holders of any of its
securities other than the Holders, the Company shall, at the request of the Sponsor Investors, file any post-effective amendments necessary to include therein all disclosure and language necessary to ensure that the holders of Registrable Securities
may be added to such Shelf Registration Statement. 
 (d) Additional Information. The Company may require each seller of Registrable
Securities as to which any registration is being effected to furnish the Company such information regarding such seller and the distribution of such securities as the Company may from time to time reasonably request in writing, as a condition to
such seller’s participation in such registration. 
 (e) In-Kind Distributions. If any
Sponsor Investor (and/or any of their Affiliates) seeks to effectuate an in-kind distribution of all or part of their Registrable Securities to their respective direct or indirect equityholders, the Company
will, subject to any applicable lock-ups, work with the foregoing Persons to facilitate such in-kind distribution in the manner reasonably requested and consistent with
the Company’s obligations under the Securities Act. 
 (f) Suspended Distributions. Each Person participating in a
registration hereunder agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in Section 4(a)(vi), such Person will immediately discontinue the disposition of its
Registrable Securities pursuant to the registration statement until such Person’s receipt of the copies of of a supplemented or amended prospectus as contemplated by Section 4(a)(vi), subject to the Company’s
compliance with its obligations under Section 4(a)(vi). 

  
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 (g) Other. To the extent that any of the Participating Sponsor Investors is or may be
deemed to be an “underwriter” of Registrable Securities pursuant to any SEC comments or policies, the Company agrees that (i) the indemnification and contribution provisions contained in Section 6 shall be
applicable to the benefit of such Participating Sponsor Investor in their role as an underwriter or deemed underwriter in addition to their capacity as a holder and (ii) such Participating Sponsor Investor shall be entitled to conduct the due
diligence which they would normally conduct in connection with an offering of securities registered under the Securities Act, including without limitation receipt of customary opinions and comfort letters addressed to such Participating Sponsor
Investor. 
 Section 5 Registration Expenses. 

Except as expressly provided herein, all out-of-pocket expenses
incurred by the Company in connection with the performance of or compliance with this Agreement and/or in connection with any Demand Registration, Piggyback Registration or Shelf Offering, whether or not the same shall become effective, shall be
paid by the Company, including, without limitation: (i) all registration and filing fees, and any other fees and expenses associated with filings required to be made with the SEC or FINRA, (ii) all fees and expenses in connection with
compliance with any securities or “blue sky” laws, (iii) all printing, duplicating, word processing, messenger, telephone, facsimile and delivery expenses (including expenses of printing certificates for the Registrable Securities in
a form eligible for deposit with The Depository Trust Company or other depositary and of printing prospectuses and Company Free Writing Prospectuses), (iv) all fees and disbursements of counsel for the Company and of all independent certified public
accountants of the Company (including the expenses of any special audit and cold comfort letters required by or incident to such performance), (v) Securities Act liability insurance or similar insurance if the Company so desires or the underwriters
so require in accordance with then-customary underwriting practice, (vi) all fees and expenses incurred in connection with the listing of the Registrable Securities on any securities exchange on which similar securities of the Company are then
listed (or on which exchange the Registrable Securities are proposed to be listed in the case of the initial Public Offering), (vii) all applicable rating agency fees with respect to the Registrable Securities, (viii) all fees and disbursements
of legal counsel for the Company, (ix) all fees and disbursements of one legal counsel for selling Holders selected by the Sponsor Investors together with any necessary local counsel as may be required by the Sponsor Investors, (xi) any
fees and disbursements of underwriters customarily paid by issuers or sellers of securities, (xii) all fees and expenses of any special experts or other Persons retained by the Company or the Sponsor Investors in connection with any
Registration (xiii) all of the Company’s internal expenses (including all salaries and expenses of its officers and employees performing legal or accounting duties) and (xiv) all expenses related to the “road-show” for any
underwritten offering, including all travel, meals and lodging. All such expenses are referred to herein as “Registration Expenses.” The Company shall not be required to pay, and each Person that sells securities pursuant to a
Demand Registration, Shelf Offering or Piggyback Registration hereunder will bear and pay, all underwriting discounts and commissions applicable to the Registrable Securities sold for such Person’s account and all transfer taxes (if any)
attributable to the sale of Registrable Securities. 
 Section 6 Indemnification and Contribution. 

(a) By the Company. The Company will indemnify and hold harmless, to the fullest extent permitted by law and without limitation as to
time, each Holder, such Holder’s officers, directors employees, agents, fiduciaries, stockholders, managers, partners, members, affiliates, direct and indirect equityholders, consultants and representatives, and any successors and assigns
thereof, and each Person who controls such holder (within the meaning of the Securities Act) (the “Indemnified Parties”) against all losses, claims, actions, damages, liabilities and expenses (including with respect to actions or
proceedings, whether commenced or threatened, and including reasonable attorney fees and expenses) (collectively, “Losses”) caused by, resulting from, arising out of, based upon or related to any of the following (each, a
“Violation”) by the Company: (i) any untrue or alleged untrue statement of material fact contained in (A) any registration statement, prospectus, preliminary prospectus or
Free-Writing Prospectus, or any 

  
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amendment thereof or supplement thereto or (B) any application or other document or communication (in this Section 6, collectively called an
“application”) executed by or on behalf of the Company or based upon written information furnished by or on behalf of the Company filed in any jurisdiction in order to qualify any securities covered by such registration under the
“blue sky” or securities laws thereof, (ii) any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein not misleading or (iii) any violation or alleged violation
by the Company of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated thereunder applicable to the Company and relating to action or inaction required of the Company in connection with any
such registration, qualification or compliance. In addition, the Company will reimburse such Indemnified Party for any legal or any other expenses reasonably incurred by them in connection with investigating or defending any such Losses.
Notwithstanding the foregoing, the Company will not be liable in any such case to the extent that any such Losses result from, arise out of, are based upon, or relate to an untrue statement, or omission , made in such registration statement, any
such prospectus, preliminary prospectus or Free-Writing Prospectus or any amendment or supplement thereto, or in any application, in reliance upon, and in conformity with, written information prepared and
furnished in writing to the Company by such Indemnified Party expressly for use therein or by such Indemnified Party’s failure to deliver a copy of the registration statement or prospectus or any amendments or supplements thereto after the
Company has furnished such Indemnified Party with a sufficient number of copies of the same. In connection with an underwritten offering, the Company will indemnify such underwriters, their officers and directors, and each Person who controls such
underwriters (within the meaning of the Securities Act) to the same extent as provided above with respect to the indemnification of the Indemnified Parties or as otherwise agreed to in the underwriting agreement executed in connection with such
underwritten offering. Such indemnity and reimbursement of expenses shall remain in full force and effect regardless of any investigation made by or on behalf of such Indemnified Party and shall survive the transfer of such securities by such
seller. 
 (b) By Holders. In connection with any registration statement in which a Holder is participating, each such Holder will
furnish to the Company in writing such information and affidavits as the Company reasonably requests for use in connection with any such registration statement or prospectus and, to the extent permitted by law, will indemnify the Company, its
officers, directors, employees, agents and representatives, and each Person who controls the Company (within the meaning of the Securities Act) against any Losses resulting from (as determined by a final and appealable judgment, order or decree of a
court of competent jurisdiction) any untrue statement of material fact contained in the registration statement, prospectus or preliminary prospectus or any amendment thereof or supplement thereto or any omission of a material fact required to be
stated therein or necessary to make the statements therein not misleading, but only to the extent that such untrue statement or omission is contained in any information or affidavit so furnished in writing by such Holder expressly for use therein;
provided that the obligation to indemnify will be individual, not joint and several, for each Holder and will be limited to the net amount of proceeds received by such Holder from the sale of Registrable Securities pursuant to such
registration statement. 
 (c) Claim Procedure. Any Person entitled to indemnification hereunder will (i) give prompt written
notice to the indemnifying party of any claim with respect to which it seeks indemnification (provided that the failure to give prompt notice will impair any Person’s right to indemnification hereunder only to the extent such failure has
prejudiced the indemnifying party) and (ii) unless in such indemnified party’s reasonable judgment a conflict of interest between such indemnified and indemnifying parties may exist with respect to such claim, permit such indemnifying
party to assume the defense of such claim with counsel reasonably satisfactory to the indemnified party. If such defense is assumed, the indemnifying party will not be subject to any liability for any settlement made by the indemnified party without
its consent (but such consent will not be unreasonably withheld, conditioned or delayed). An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim will not be obligated to pay the fees and expenses of more than
one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party a conflict of interest may exist between such indemnified party and any other of such
indemnified parties with respect to such claim. In such instance, the conflicted indemnified parties will have a right to retain one separate counsel, chosen by the majority of the conflicted indemnified parties involved in the indemnification and
approved by the Sponsor Investor, at the expense of the indemnifying party. 

  
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 (d) Contribution. If the indemnification provided for in this
Section 6 is held by a court of competent jurisdiction to be unavailable to, or is insufficient to hold harmless, an indemnified party or is otherwise unenforceable with respect to any Loss referred to herein, then such
indemnifying party will contribute to the amounts paid or payable by such indemnified party as a result of such Loss, (i) in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand and of the
indemnified party on the other hand in connection with the statements or omissions which resulted in such Loss as well as any other relevant equitable considerations or (ii) if the allocation provided by clause (i) of this
Section 6(d) is not permitted by applicable law, then in such proportion as is appropriate to reflect not only such relative fault but also the relative benefit of the Company on the one hand and of the sellers of
Registrable Securities and any other sellers participating in the registration statement on the other in connection with the statement or omissions which resulted in such Losses, as well as any other relevant equitable considerations;
provided that the maximum amount of liability in respect of such contribution will be limited, in the case of each seller of Registrable Securities, to an amount equal to the net proceeds actually received by such seller from the sale of
Registrable Securities effected pursuant to such registration. The relative fault of the indemnifying party and of the indemnified party will be determined by reference to, among other things, whether the untrue (or, as applicable alleged) untrue
statement of a material fact or the omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party and the parties’ relative intent, knowledge, access to information and opportunity to
correct or prevent such statement or omission. The parties hereto agree that it would not be just or equitable if the contribution pursuant to this Section 6(d) were to be determined by pro rata allocation or by any other
method of allocation that does not take into account such equitable considerations. The amount paid or payable by an indemnified party as a result of the Losses referred to herein will be deemed to include any legal or other expenses reasonably
incurred by such indemnified party in connection with investigating or defending against any action or claim which is the subject hereof. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f)
of the Securities Act) will be entitled to contribution from any Person who is not guilty of such fraudulent misrepresentation. 
 (e)
Release. No indemnifying party will, except with the consent of the indemnified party, consent to the entry of any judgment or enter into any settlement that does not include as an unconditional term thereof giving by the claimant or
plaintiff to such indemnified party of a release from all liability in respect to such claim or litigation. 
 (f) Non-exclusive Remedy; Survival. The indemnification and contribution provided for under this Agreement will be in addition to any other rights to indemnification or contribution that any
indemnified party may have pursuant to law or contract (and the Company and its Subsidiaries shall be considered the indemnitors of first resort in all such circumstances to which this Section 6 applies) and will remain in
full force and effect regardless of any investigation made by or on behalf of the indemnified party or any officer, director or controlling Person of such indemnified party and will survive the transfer of Registrable Securities and the termination
or expiration of this Agreement. 
 Section 7 Cooperation with Underwritten Offerings. No Person may participate in any
underwritten registration hereunder unless such Person (i) agrees to sell such Person’s securities on the basis provided in any underwriting arrangements approved by the Person or Persons entitled hereunder to approve such arrangements
(including, without limitation, pursuant to the terms of any over-allotment or “green shoe” option requested by the underwriters; provided that no Holder will be required to sell more than the number of Registrable Securities such
Holder has requested to include in such registration) and (ii) 

  
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completes, executes and delivers all questionnaires, powers of attorney, stock powers, custody agreements, indemnities, underwriting agreements and other documents and agreements required under
the terms of such underwriting arrangements or as may be reasonably requested by the Company and the lead managing underwriter(s). To the extent that any such agreement is entered into pursuant to, and consistent with,
Section 3, Section 4 and/or this Section 7, the respective rights and obligations created under such agreement will supersede the respective rights and obligations of the
Holders, the Company and the underwriters created thereby with respect to such registration. 
 Section 8 Subsidiary Public
Offering. 
 (a) Subsidiary Public Offering. If, after an initial Public Offering of the common equity securities of one of
its Subsidiaries, the Company distributes securities of such Subsidiary to its equityholders, then the rights and obligations of the Company pursuant to this Agreement will apply, mutatis mutandis, to such Subsidiary, and the Company will
cause such Subsidiary to comply with such Subsidiary’s obligations under this Agreement as if it were the Company hereunder. 

Section 9 Joinder; Additional Parties; Transfer of Registrable Securities. 

(a) Joinder. The Company may from time to time (with the prior written consent of the Sponsor Investors) permit any Person who acquires
Common Equity (or rights to acquire Common Equity) to become a party to this Agreement and to be entitled to and be bound by all of the rights and obligations as a Holder by obtaining an executed joinder to this Agreement from such Person in the
form of Exhibit B attached hereto (a “Joinder”). Upon the execution and delivery of a Joinder by such Person, the Common Equity held by such Person shall become the category of Registrable Securities (i.e.
Sponsor Investor, Executive or Other Investor Registrable Securities), and such Person shall be deemed the category of Holder (i.e. Sponsor Investor, Executive or Other Investor), in each case as set forth on the signature page to such Joinder. 

(b) Restrictions on Transfers. Prior to transferring any Registrable Securities to any Person (including, without limitation, by
operation of law), the transferring Holder must first obtain the prior written consent of the Sponsor Investor, and if so obtained, cause the prospective transferee to execute and deliver to the Company a Joinder, except that such consent and
Joinder shall not be required in the case of (i) a transfer to the Company, (ii) a transfer by any Sponsor Investor or any Susquehanna Entity to its partners or members, (iii) a Public Offering, (iv) a sale pursuant to Rule 144
after the completion of the initial Public Offering and/or (v) a transfer in connection with a Sale of the Company. Any transfer or attempted transfer of Registrable Securities in violation of any provision of this Agreement will be void, and
the Company will not record such transfer on its books or treat any purported transferee of such Registrable Securities as the owner thereof for any purpose (but the Company will be entitled to enforce against such Person the obligations hereunder).

 (c) Legend. Each certificate (if any) evidencing any Registrable Securities and each certificate issued in exchange for or upon the
transfer of any Registrable Securities (unless such Registrable Securities would no longer be Registrable Securities after such transfer) will be stamped or otherwise imprinted with a legend in substantially the following form: 

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS ON TRANSFER AND OTHER PROVISIONS SET FORTH IN A REGISTRATION
RIGHTS AGREEMENT DATED AS OF _________ __, 20__ AMONG THE ISSUER OF SUCH SECURITIES (THE “COMPANY”) AND CERTAIN OF THE COMPANY’S EQUITYHOLDERS, AS AMENDED. A COPY OF SUCH AGREEMENT WILL BE FURNISHED WITHOUT CHARGE BY THE COMPANY TO
THE HOLDER HEREOF UPON WRITTEN REQUEST.” 

  
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 The Company will imprint such legend on certificates evidencing Registrable Securities outstanding prior to
the date hereof. The legend set forth above will be removed from the certificates evidencing any securities that have ceased to be Registrable Securities. 

Section 10 General Provisions. 

(a) Amendments and Waivers. Except as otherwise provided herein, the provisions of this Agreement may be amended, modified or waived
only with the prior written consent of the Company and the Sponsor Investors; provided that no such amendment, modification or waiver that would treat a specific Holder or group of Holders of Registrable Securities (i.e., Executives or Other
Investors) in a manner materially and adversely different than any other Holder or group of Holders will be effective against such Holder or group of Holders without the consent of the holders of a majority of the Registrable Securities that are
held by the group of Holders that is materially and adversely affected thereby. The failure or delay of any Person to enforce any of the provisions of this Agreement will in no way be construed as a waiver of such provisions and will not affect the
right of such Person thereafter to enforce each and every provision of this Agreement in accordance with its terms. A waiver or consent to or of any breach or default by any Person in the performance by that Person of his, her or its obligations
under this Agreement will not be deemed to be a consent or waiver to or of any other breach or default in the performance by that Person of the same or any other obligations of that Person under this Agreement. 

(b) Remedies. The parties to this Agreement will be entitled to enforce their rights under this Agreement specifically (without posting
a bond or other security), to recover damages caused by reason of any breach of any provision of this Agreement and to exercise all other rights existing in their favor. The parties hereto agree and acknowledge that a breach of this Agreement would
cause irreparable harm and money damages would not be an adequate remedy for any such breach and that, in addition to any other rights and remedies existing hereunder, any party will be entitled to specific performance and/or other injunctive relief
from any court of law or equity of competent jurisdiction (without posting any bond or other security) in order to enforce or prevent violation of the provisions of this Agreement. 

(c) Severability. Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid
under applicable law, but if any provision of this Agreement is held to be prohibited, invalid, illegal or unenforceable in any respect under any applicable law or regulation in any jurisdiction, such prohibition, invalidity, illegality or
unenforceability will not affect the validity, legality or enforceability of any other provision of this Agreement in such jurisdiction or in any other jurisdiction, but this Agreement will be reformed, construed and enforced in such jurisdiction as
if such prohibited, invalid, illegal or unenforceable provision had never been contained herein. 
 (d) Entire Agreement. Except as
otherwise provided herein, this Agreement contains the complete agreement and understanding among the parties hereto with respect to the subject matter hereof and supersedes and preempts any prior understandings, agreements or representations by or
among the parties hereto, written or oral, which may have related to the subject matter hereof in any way. 
 (e) Successors and
Assigns. Except as otherwise provided herein, this Agreement will bind and inure to the benefit and be enforceable by the Company and its successors and permitted assigns and the Holders and their respective successors and permitted assigns
(whether so expressed or not). 

  
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 (f) Notices. Any notice, demand or other communication to be given under or by reason
of the provisions of this Agreement will be in writing and will be deemed to have been given (i) when delivered personally to the recipient, (ii) when sent by confirmed electronic mail or facsimile if sent during normal business hours of
the recipient; but if not, then on the next Business Day, (iii) one Business Day after it is sent to the recipient by reputable overnight courier service (charges prepaid) or (iv) three Business Days after it is mailed to the recipient by
first class mail, return receipt requested. Such notices, demands and other communications will be sent to the Company at the address specified on the signature page hereto or any Joinder and to any holder, or at such address or to the attention of
such other Person as the recipient party has specified by prior written notice to the sending party. Any party may change such party’s address for receipt of notice by giving prior written notice of the change to the sending party as provided
herein. 
 The Company’s address is: 

iCIMS Holding Corp. 
 101
Crawfords Corner Road 
 Holmdel, NJ 07733 

Attention: Kate Scavello, General Counsel 

Email: ********************* 

With a copy to: 

Kirkland & Ellis LLP 

300 North LaSalle Street 

Chicago, IL 60654 
 Attention:
Robert Hayward, P.C. 
         Robert Goedert, P.C. 

Email: ********************* 
 or to such other
address or to the attention of such other person as the recipient party has specified by prior written notice to the sending party. 
 (g)
Business Days. If any time period for giving notice or taking action hereunder expires on a day that is not a Business Day, the time period will automatically be extended to the Business Day immediately following such Saturday, Sunday or
legal holiday. 
 (h) Governing Law. The corporate law of the State of Delaware will govern all issues and questions concerning the
relative rights of the Company and its equityholders. All other issues and questions concerning the construction, validity, interpretation and enforcement of this Agreement and the exhibits and schedules hereto will be governed by, and construed in
accordance with, the laws of the State of Delaware, without giving effect to any choice of law or conflict of law rules or provisions (whether of the State of Delaware or any other jurisdiction) that would cause the application of the laws of any
jurisdiction other than the State of Delaware. In furtherance of the foregoing, the internal law of the State of Delaware will control the interpretation and construction of this Agreement (and all schedules and exhibits hereto), even though under
that jurisdiction’s choice of law or conflict of law analysis, the substantive law of some other jurisdiction would ordinarily apply. 

(i) MUTUAL WAIVER OF JURY TRIAL. AS A SPECIFICALLY BARGAINED FOR INDUCEMENT FOR EACH OF THE PARTIES HERETO TO ENTER INTO THIS AGREEMENT
(AFTER HAVING THE OPPORTUNITY TO CONSULT WITH COUNSEL), EACH PARTY HERETO EXPRESSLY WAIVES THE RIGHT TO TRIAL BY JURY IN ANY LAWSUIT OR PROCEEDING RELATING TO OR ARISING IN ANY WAY FROM THIS AGREEMENT OR THE MATTERS CONTEMPLATED HEREBY. 

  
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 (j) CONSENT TO JURISDICTION AND SERVICE OF PROCESS. EACH OF THE PARTIES IRREVOCABLY
SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE, FOR THE PURPOSES OF ANY SUIT, ACTION OR OTHER PROCEEDING ARISING OUT OF THIS AGREEMENT, ANY RELATED
AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY OR THEREBY. EACH OF THE PARTIES HERETO FURTHER AGREES THAT SERVICE OF ANY PROCESS, SUMMONS, NOTICE OR DOCUMENT BY U.S. REGISTERED MAIL TO SUCH PARTY’S RESPECTIVE ADDRESS SET FORTH ABOVE WILL BE
EFFECTIVE SERVICE OF PROCESS FOR ANY ACTION, SUIT OR PROCEEDING WITH RESPECT TO ANY MATTERS TO WHICH IT HAS SUBMITTED TO JURISDICTION IN THIS PARAGRAPH. EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY OBJECTION TO THE LAYING OF
VENUE OF ANY ACTION, SUIT OR PROCEEDING ARISING OUT OF THIS AGREEMENT, ANY RELATED DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE, AND HEREBY AND THEREBY FURTHER
IRREVOCABLY AND UNCONDITIONALLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH ACTION, SUIT OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. 

(k) No Recourse. Notwithstanding anything to the contrary in this Agreement, the Company and each Holder agrees and acknowledges that no
recourse under this Agreement or any documents or instruments delivered in connection with this Agreement, will be had against any current or future director, officer, employee, general or limited partner or member of any Holder or any Affiliate or
assignee thereof, whether by the enforcement of any assessment or by any legal or equitable proceeding, or by virtue of any statute, regulation or other applicable law, it being expressly agreed and acknowledged that no personal liability whatsoever
will attach to, be imposed on or otherwise be incurred by any current or future officer, agent or employee of any Holder or any current or future member of any Holder or any current or future director, officer, employee, partner or member of any
Holder or of any Affiliate or assignee thereof, as such for any obligation of any Holder under this Agreement or any documents or instruments delivered in connection with this Agreement for any claim based on, in respect of or by reason of such
obligations or their creation. 
 (l) Descriptive Headings; Interpretation. The descriptive headings of this Agreement are inserted
for convenience only and do not constitute a part of this Agreement. The use of the word “including” in this Agreement will be by way of example rather than by limitation. 

(m) No Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties hereto to
express their mutual intent, and no rule of strict construction will be applied against any party. 
 (n) Counterparts. This Agreement
may be executed in multiple counterparts, any one of which need not contain the signature of more than one party, but all such counterparts taken together will constitute one and the same agreement. 

(o) Electronic Delivery. This Agreement, the agreements referred to herein, and each other agreement or instrument entered into in
connection herewith or therewith or contemplated hereby or thereby, and any amendments hereto or thereto, to the extent executed and delivered by means of a photographic, photostatic, facsimile or similar reproduction of such signed writing using a
facsimile machine or electronic mail will be treated in all manner and respects as an original agreement or instrument 

  
 -18- 

 
and will be considered to have the same binding legal effect as if it were the original signed version thereof delivered in person. At the request of any party hereto or to any such agreement or
instrument, each other party hereto or thereto will re-execute original forms thereof and deliver them to all other parties. No party hereto or to any such agreement or instrument will raise the use of a
facsimile machine or electronic mail to deliver a signature or the fact that any signature or agreement or instrument was transmitted or communicated through the use of a facsimile machine or electronic mail as a defense to the formation or
enforceability of a contract and each such party forever waives any such defense. 
 (p) Further Assurances. In connection with this
Agreement and the transactions contemplated hereby, each Holder agrees to execute and deliver any additional documents and instruments and perform any additional acts that may be necessary or appropriate to effectuate and perform the provisions of
this Agreement and the transactions contemplated hereby. 
 (q) Dividends, Recapitalizations, Etc.. If at any time or
from time to time there is any change in the capital structure of the Company by way of a stock split, stock dividend, combination or reclassification, or through a merger, consolidation, reorganization or recapitalization, or by any other means,
appropriate adjustment will be made in the provisions hereof so that the rights and privileges granted hereby will continue. 
 (r) No
Third-Party Beneficiaries. No term or provision of this Agreement is intended to be, or shall be, for the benefit of any Person not a party hereto, and no such other Person shall have any right or cause of action hereunder, except as otherwise
expressly provided herein. 
 (s) Current Public Information. At all times after the Company has filed a registration statement with
the SEC pursuant to the requirements of either the Securities Act or the Exchange Act, the Company will file all reports required to be filed by it under the Securities Act and the Exchange Act and will take such further action as the Sponsor
Investors may reasonably request, all to the extent required to enable such Holders to sell Registrable Securities pursuant to Rule 144. 

*    *    *    *    * 

  
 -19- 

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

			
	iCIMS HOLDING CORP.
		
	By:	 	  

	Name: Valerie Rainey
	Its: Chief Financial Officer

 [Signature Page to Registration Rights Agreement] 

 
			
	SPONSOR INVESTORS:
	
	VISTA EQUITY PARTNERS FUND V, L.P.
	
	By: VISTA EQUITY PARTNERS FUND V GP, L.P.
	Its: General Partner
	
	By: VEPF Group, LLC
	Its: Senior Managing Member
		
	By:	 	
                 

	Name: Robert F. Smith
	Its: Managing Member
	
	VISTA EQUITY PARTNERS FUND V-A, L.P.
	
	By: VEPF V GP (Cayman), L.P.
	Its: General Partner
	
	By: VEPF V GP (Cayman), Ltd.
	Its: General Partner
		
	By:	 	
                 

	Name: Robert F. Smith
	Its: Director
	
	VISTA EQUITY PARTNERS FUND V-B, L.P.
	
	By: VEPF V GP (Cayman), L.P.
	Its: General Partner
	
	By: VEPF V GP (Cayman), Ltd.
	Its: General Partner
		
	By:	 	
                     

	Name: Robert F. Smith
	Its: Director
	
	VEPF V FAF, L.P.
	
	By: VISTA EQUITY PARTNERS FUND V GP, LLC
	Its: General Partner
	
	By: VEPF Group, LLC
	Its: Senior Managing member
		
	By:	 	
                     
            

	Name: Robert F. Smith
	Its: Managing Member

[Signature Page to Registration Rights Agreement] 

			
	
	VISTA EQUITY PARTNERS FUND V EXECUTIVE, L.P.
	
	By: VISTA EQUITY PARTNERS FUND V GP, L.P.
	Its: General Partner
	
	By: VEPF Group, LLC
	Its: Senior Managing Member
		
	By:	 	
                     
            

	Name: Robert F. Smith
	Its: Managing Member
	
	VISTA EQUITY ASSOCIATES V, LLC
	
	By: VEPF Group, LLC
	Its: Senior Managing Member
		
	By:	 	
                     
    

	Name: Robert F. Smith
	Its: Managing Member

 [Signature Page to Registration Rights Agreement] 

 
			
	OTHER INVESTORS:
	
	SUSQUEHANNA GROWTH EQUITY FUND IV, LLLP
		
	By:	 	              

	Its:	 	              

	
	SUSQUEHANNA GROWTH EQUITY FUND V, LLLP
	By:	 	              

	Its:	 	              

	
	COLIN DAY
	
	  

 [Signature Page to Registration Rights Agreement] 

 EXHIBIT A 

DEFINITIONS 

“Affiliate” of any Person means any other Person controlled by, controlling or under common control with such Person and, in
the case of an individual, also includes any member of such individual’s Family Group; provided that the Company and its Subsidiaries will not be deemed to be Affiliates of any holder of Registrable Securities. As used in this
definition, “control” (including, with its correlative meanings, “controlling,” “controlled by” and “under common control with”) will mean possession, directly or indirectly, of power to direct or cause the
direction of management or policies (whether through ownership of securities, by contract or otherwise). 
 “Agreement” has
the meaning set forth in the recitals. 
 “Automatic Shelf Registration Statement” has the meaning set forth in
Section 1(a). 
 “Business Day” means a day that is not a Saturday or Sunday or a day on which
banks in New York City are authorized or requested by law to close. 
 “Charitable Gifting Event” means any transfer by an
Sponsor Investor, or any subsequent transfer by such holder’s members, partners or other employees, in connection with a bona fide gift to any Charitable Organization on the date of, but prior to, the execution of the underwriting agreement
entered into in connection with any underwritten offering. 
 “Charitable Organization” means a charitable organization as
described by Section 501(c)(3) of the Internal Revenue Code of 1986, as in effect from time to time. 

“Common Equity” means the Company’s common stock, par value $0.001 per share. In the event of a Corporate Conversion,
Common Equity will thereafter mean the common stock issued upon conversion or in exchange for the Company’s Common Equity. 

“Company” has the meaning set forth in the preamble and shall include its successor(s). 

“Demand Registrations” has the meaning set forth in Section 1(a). 

“End of Suspension Notice” has the meaning set forth in Section 1(f)(ii). 

“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, or any successor federal law then in
force, together with all rules and regulations promulgated thereunder. 
 “Excluded Registration” means any registration
(i) pursuant to a Demand Registration (which is addressed in Section 1(a)), or (ii) in connection with registrations on Form S-4 or
S-8 promulgated by the SEC or any successor or similar forms).  

“Executives” has the meaning set forth in the recitals. 

“Executive Registrable Securities” means any Common Equity held by the management employees of the Company who are listed as
“Executives” on the signature page hereto or to a Joinder. 

  
 A-1 

 “Family Group” means with respect to any individual, such individual’s
current or former spouse, their respective parents, descendants of such parents (whether natural or adopted) and the spouses of such descendants, any trust, limited partnership, corporation or limited liability company established solely for the
benefit of such individual or such individual’s current or former spouse, their respective parents, descendants of such parents (whether natural or adopted) or the spouses of such descendants. 

“FINRA” means the Financial Industry Regulatory Authority. 

“Free Writing Prospectus” means a free-writing prospectus, as defined in Rule 405. 

“Holdback Period” has the meaning set forth in Section 3(a). 

“Holder” means a holder of Registrable Securities who is a party to this Agreement (including by way of Joinder). 

“Indemnified Parties” has the meaning set forth in Section 6(a). 

“Joinder” has the meaning set forth in Section 9(a). 

“Long-Form Registrations” has the meaning set forth in Section 1(a). 

“Losses” has the meaning set forth in Section 6(c). 

“Other Investors” has the meaning set forth in the recitals. “Other Registrable Securities” means
(i) any Common Equity held (directly or indirectly) by any Other Investors or any of their Affiliates, and (ii) any equity securities of the Company or any Subsidiary issued or issuable with respect to the securities referred to in
clause (i) above by way of dividend, distribution, split or combination of securities, or any recapitalization, merger, consolidation or other reorganization. 

“Participating Sponsor Investors” means any Sponsor Investor(s) participating in the request for a Demand Registration, Shelf
Offering, Piggyback Registration or Underwritten Block Trade. 
 “Person” means an individual, a partnership, a
corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture, an unincorporated organization and a governmental entity or any department, agency or political subdivision thereof. 

“Piggyback Registrations” has the meaning set forth in Section 2(a). 

“Public Offering” means any sale or distribution by the Company, one of its Subsidiaries and/or Holders to the public of
Common Equity or other securities convertible into or exchangeable for Common Equity pursuant to an offering registered under the Securities Act. 

“Registrable Securities” means Sponsor Investor Registrable Securities and Executive Registrable Securities and Other
Registrable Securities. As to any particular Registrable Securities, such securities will cease to be Registrable Securities when they have been (a) sold or distributed pursuant to a Public Offering, (b) sold in compliance with Rule 144
following the consummation of the initial Public Offering, or (c) repurchased by the Company or a Subsidiary of the Company. For purposes of this Agreement, a Person will be deemed to be a holder of Registrable Securities, and the Registrable
Securities will be deemed to be in existence, whenever such Person has the right to acquire, directly or indirectly, such Registrable Securities (upon conversion or exercise in connection with a transfer of securities or otherwise, but disregarding
any restrictions or limitations upon the exercise of such right), whether or not such acquisition has actually been effected, and such Person will be entitled to exercise the rights of a holder of Registrable Securities hereunder (it being
understood that a holder of Registrable Securities may only 

  
 A-2 

 
request that Registrable Securities in the form of Common Equity be registered pursuant to this Agreement). Notwithstanding the foregoing, following the consummation of an initial Public
Offering, any Registrable Securities held by any Person (other than any Sponsor Investor or its Affiliates) that may be sold under Rule 144(b)(1)(i) without limitation under any of the other requirements of Rule 144 will be deemed not to be
Registrable Securities. 
 “Registration Expenses” has the meaning set forth in Section 5. 

“Rule 144”, “Rule 158”, “Rule 405”, “Rule 415”, “Rule
403B” and “Rule 462” mean, in each case, such rule promulgated under the Securities Act (or any successor provision) by the SEC, as the same will be amended from time to time, or any successor rule then in force. 

“Sale of the Company” means any transaction or series of transactions pursuant to which any Person(s) or a group of related
Persons (other than any Sponsor Investor and/or its Affiliates) in the aggregate acquires: (i) Common Equity of the Company entitled to vote (other than voting rights accruing only in the event of a default, breach, event of noncompliance or
other contingency) to elect directors with a majority of the voting power of the Company’s board of directors (whether by merger, consolidation, reorganization, combination, sale or transfer of the Company’s Common Equity) or (ii) all
or substantially all of the Company’s and its Subsidiaries’ assets determined on a consolidated basis; provided that a Public Offering will not constitute a Sale of the Company. 

“Sale Transaction” has the meaning set forth in Section 3(a). 

“SEC” means the United States Securities and Exchange Commission. 

“Securities” has the meaning set forth in Section 3(a). 

“Securities Act” means the Securities Act of 1933, as amended from time to time, or any successor federal law then in force,
together with all rules and regulations promulgated thereunder. 
 “Shelf Offering” has the meaning set forth in
Section 1(d)(i). 
 “Shelf Offering Notice” has the meaning set forth in
Section 1(d)(i). 
 “Shelf Registration” has the meaning set forth in
Section 1(a). 
 “Shelf Registrable Securities” has the meaning set forth in
Section 1(d)(i). 
 “Shelf Registration Statement” has the meaning set forth in
Section 1(d). 
 “Short-Form Registrations” has the meaning set forth in
Section 1(a). 
 “Sponsor Investors” has the meaning set forth in the recitals; provided that any
decision to be made under this Agreement by the Sponsor Investors shall be made by the holders of a majority of all Sponsor Investor Registrable Securities 

“Sponsor Investor Registrable Securities” means (i) any Common Equity held (directly or indirectly) by any Sponsor
Investor or any of its Affiliates, and (ii) any equity securities of the Company or any Subsidiary issued or issuable with respect to the securities referred to in clause (i) above by way of dividend, distribution, split or
combination of securities, or any recapitalization, merger, consolidation or other reorganization. 

  
 A-3 

 “Subsidiary” means, with respect to the Company, any corporation, limited
liability company, partnership, association or other business entity of which (i) if a corporation, a majority of the total voting power of shares of stock entitled (without regard to the occurrence of any contingency) to vote in the election
of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by the Company or one or more of the other Subsidiaries of the Company or a combination thereof, or (ii) if a limited liability company,
partnership, association or other business entity, a majority of the limited liability company, partnership or other similar ownership interest thereof is at the time owned or controlled, directly or indirectly, by the Company or one or more
Subsidiaries of the Company or a combination thereof. For purposes hereof, a Person or Persons will be deemed to have a majority ownership interest in a limited liability company, partnership, association or other business entity if such Person or
Persons will be allocated a majority of limited liability company, partnership, association or other business entity gains or losses or will be or control the managing director or general partner of such limited liability company, partnership,
association or other business entity. 
 “Suspension Event” has the meaning set forth in
Section 1(f)(ii). 
 “Suspension Notice” has the meaning set forth in
Section 1(f)(ii). 
 “Suspension Period” has the meaning set forth in
Section 1(f)(i). 
 “Susquehanna Entities” means each of Susquehanna Growth Equity Fund IV,
LLLP and Susquehanna Growth Equity Fund V, LLLP. 
 “Violation” has the meaning set forth in
Section 6(a). 
 “WKSI” means a “well-known seasoned issuer” as defined under
Rule 405. 

  
 A-4 

 EXHIBIT B 

The undersigned is executing and delivering this Joinder pursuant to the Registration Rights Agreement dated as of __________________, 20__ (as
amended, modified and waived from time to time, the “Registration Agreement”), among iCIMS Holding Corp., a Delaware corporation (the “Company”), and the other persons named as parties therein (including pursuant to
other Joinders). Capitalized terms used herein have the meaning set forth in the Registration Agreement. 
 By executing and delivering this
Joinder to the Company, the undersigned hereby agrees to become a party to, to be bound by, and to comply with the provisions of, the Registration Agreement as a Holder in the same manner as if the undersigned were an original signatory to the
Registration Agreement, and the undersigned will be deemed for all purposes to be a Holder, an [Sponsor Investor//Executive//Other Investor thereunder] and the undersigned’s ____ [shares of Common Equity// Units]
will be deemed for all purposes to be a [Sponsor Investor // Executive // Other] Registrable Securities under the Registration Agreement. 

Accordingly, the undersigned has executed and delivered this Joinder as of the ___ day of ____________, 20___. 

 

	
	  

	Signature
	
	  

	Print Name
	
	Address:                                     
                                         
  
	  

	  

  

			
	Agreed and Accepted as of
	
	________________, 20___:
	
	iCIMS HOLDING CORP.
		
	By:	 	
                     

		
	Its:	 	              

  
 B-1executedredacted-commitm

Automotive Dealer Finance  120 King Street West  Suite 500  Hamilton, Ontario   Canada L8P 4V2  LEGAL_37007992.3 August 30, 2021  Lithia Master LP Company, LP  220 Caldari Road  Concord, Ontario  L4K 2M9  Attention: Bryan Deboer, President  Dear Mr. Deboer:  We confirm that subject to the terms and conditions attached hereto (including Schedule A and Appendix  A thereto, the “Terms and Conditions”) which forms part hereof (collectively, the “Commitment  Letter”), The Bank of Nova Scotia (the “Bank”) will make available to the Borrowers the Credits in  accordance with the Terms and Conditions.  All capitalized terms used but not defined herein shall have the respective meanings set out in the Terms  of Conditions.  This Commitment Letter shall supersede and replace all prior discussions, letters and agreements  describing the terms and conditions of any credit facility established by the Bank in favour of the Borrowers  or any of them.   If the arrangements set out in this Commitment Letter are acceptable to you, please sign the enclosed copy  of this Commitment Letter in the spaces indicated below, and return the Commitment Letter to us by the  close of business on August 30, 2021, after which date this offer will lapse.    Yours truly,  <*> Senior Relationship Manager  <*> Director and Market Lead  [the remainder of this page was intentionally left blank]  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS  DOCUMENT, MARKED BY <*>, HAS BEEN OMITTED PURSUANT TO  ITEM 601(B)(10) OF REGULATION S-K BECAUSE IT IS NOT MATERIAL. 

 

30th August 

 

 

 

 

 

 

 

 

 

1  LEGAL_36839831.10 TERMS AND CONDITIONS  “Bank” means The Bank of Nova Scotia.   “Borrowers” means collectively each of the following Persons, and “Borrower” means any one or more of them,  as the context may require:   1. Lithia Master LP Company, LP, by its general partner Lithia Master GP Company, Inc. (the “Master Borrower”) 2. Autoworks Markham, LP by its general partner Autoworks Markham GP, Inc. 3. Autoworks Woodbridge, LP by its general partner Autoworks Woodbridge GP, Inc. 4. Canada-MC, LP, by its general partner Canada-MC GP, Inc. 5. Guelph-S, LP, by its general partner Guelph-S GP, Inc. 6. Lithia Canada Leasing, LP, by its general partner Lithia Canada Leasing GP, Inc. 7. Markham-B, LP, by its general partner Markham-B GP, Inc. 8. Markham-P, LP, by its general partner Markham-P GP, Inc. 9. Mississauga-B, LP, by its general partner Mississauga-B GP, Inc. 10. Motus Car Rental, LP, by its general partner Motus Car Rental GP, Inc. 11. Newmarket-A, LP, by its general partner Newmarket-A GP, Inc. 12. Newmarket-V, LP, by its general partner Newmarket-V GP, Inc. 13. Vancouver-MP, LP, by its general partner Vancouver-MP GP, Inc. 14. Vaughan-A, LP, by its general partner Vaughan-A GP, Inc. 15. Vaughan-P, LP, by its general partner Vaughan-P, Inc. 16. Vaughan-S, LP, by its general partner Vaughan-S GP, Inc. 17. Woodbridge-MC, LP, by its general partner Woodbridge-MC GP, Inc. 18. Woodbridge-PA, LP, by its general partner Woodbridge-PA GP, Inc., and such other Persons as may from time to time become a “Borrower” hereunder pursuant to paragraph (k) under  the heading “Positive Covenants”.   All other capitalized terms used and not otherwise defined herein have the meanings defined in Appendix A  attached hereto.  CREDIT NUMBER 01:                 AUTHORIZED LIMIT:  $50,000,000  TYPE  Revolving Facility  

 

2  LEGAL_36839831.10 PURPOSE  General operating requirements including, without limitation, funding capital expenditures and financing  Permitted Acquisitions of the Master Borrower and each of the other Borrowers (the “Credit 01  Borrowers”) that have provided the Bank with up-to-date mirror netting or zero balance accounts  established with the Bank pursuant to a mirror netting services agreement with the Bank which provides  for the applicable Borrowers to maintain the concentration account in respect thereof.  CURRENCY  Canadian Dollars  AVAILMENT  The Credit 01 Borrowers may avail Credit 01 by way of direct Prime Rate Advances (including by way  of overdraft) evidenced by the Bank’s standard form agreement re operating credit line.  The Credit 01 Borrowers may also obtain Advances under Credit 01 by presenting orders to the Bank for  acceptance of Bankers’ Acceptances in multiples of Cdn$100,000 (subject to a minimum availment of  $500,000) and having terms of maturity of 30 to 90 days without grace.  The Credit 01 Borrowers may also avail Credit 01 by way of Letters of Credit (with each availment  subject to completion of the Bank’s standard form application and agreement for irrevocable standby  letter of credit in a form satisfactory to the Bank) to an aggregate maximum of Cdn$4,000,000 and with  expiry dates up to one year.   The aggregate of the sum of the principal amount of all Advances outstanding under Credit 01 and the  face amount of all outstanding Letters of Credit issued shall not exceed at any time the lesser of the  Credit 01 Authorized Limit and the Revolving Credit Facility Borrowing Base (as determined by the  most recent Revolving Credit Facility Borrowing Base Certificate).    “Revolving Credit Facility Borrowing Base” means, with respect to the Credit 01 Borrowers, at any  time the sum of the following:  (a) Cdn$25,000,000; (b) 100% of the value of CITs which have not remained unpaid more than 15 days; (c) 80% of the value of good quality parts and service accounts receivable (excluding accounts over 90 days, accounts due by employees, lease receivables, offsets and inter-company accounts); (d) 85% of the value of unencumbered used vehicles (net of HST); (e) 65% of the value of unencumbered parts and accessories inventories; (f) 75% of Real Estate Value of Real Estate Collateral based on the most recent appraisal for each real property; and (g) 40% of the net book value of Eligible Equipment less the value of the security interests or charges held by other parties and specific payables which have or may have priority over the Bank’s security in such Eligible Equipment. INTEREST RATE  Interest on Advances in accordance with the Bank’s standard form agreement re operating credit line  shall be payable at the Bank’s Prime Lending Rate from time to time, plus <*>% per annum with  interest payable monthly.  Interest on Advances by way of Banker’s Acceptances under Credit 01 at the CDOR Rate in effect from  time to time, plus <*>% per annum. Each Advance by way of Bankers’ Acceptance shall be subject to a  minimum stamping fee of Cdn$500 payable at the time of each acceptance in accordance with the Bank’s  

 

3  LEGAL_36839831.10 standard form bankers’ acceptance agreement advance.  COMMISSION ON LETTERS OF CREDIT  The Credit 01 Borrowers shall pay an amount equal to <*>% per annum, calculated on then outstanding  face amount, based on increments of 30 days or multiples thereof, from date of issuance to expiry date.  Periods of less than 30 days will be pro-rated to the applicable number of days. The amount is subject to  the Bank’s minimum fees as well as revision at any time and is payable upon issuance.  REPAYMENT  Advances are repayable on demand.  If at any time the sum of the aggregate outstanding Advances under Credit 01 exceed the Revolving Credit  Facility Borrowing Base, the Credit 01 Borrowers shall repay an amount equal to 100% of such excess such  that the Revolving Credit Facility Borrowing Base is maintained at all times.   SPECIFIC SECURITY  The following security, evidenced by documents in form satisfactory to the Bank and registered or  recorded as required by the Bank, is to be provided prior to any Advances or availment being made  under Credit 01 by the Applicable Borrower:  (a) Agreement re: operating credit line (b) Mirror netting services agreement executed and delivered by the Credit 01 Borrowers and each other Mirror Netting Participant. (c) Application and agreement for irrevocable standby letter of credit. CREDIT NUMBER 02:               AUTHORIZED LIMIT: $300,000,000  TYPE  Flooring – New & Used  PURPOSE  To finance purchases by each of the Borrowers below (the “Credit 02 Borrowers”) from Audi, BMW,  McLaren, Porsche, Mercedes-Benz, Subaru and Volkswagen of New Motor Vehicles and any other New  Motor Vehicles from manufacturers for which a Credit 02 Borrower obtains distribution rights, as well  as CAP Vehicles and Program Vehicles and to finance Used Motor Vehicles for primarily domestic sale.  Borrowers:  1. Guelph-S, LP, by its general partner Guelph-S GP, Inc. 2. Markham-B, LP, by its general partner Markham-B GP, Inc. 3. Markham-P, LP, by its general partner Markham-P GP, Inc. 4. Mississauga-B, LP, by its general partner Mississauga-B GP, Inc. 5. Newmarket-A, LP, by its general partner Newmarket-A GP, Inc. 

 

4  LEGAL_36839831.10 6. Newmarket-V, LP, by its general partner Newmarket-V GP, Inc. 7. Vancouver-MP, LP, by its general partner Vancouver-MP GP, Inc. 8. Vaughan-A, LP, by its general partner Vaughan-A GP, Inc. 9. Vaughan-P, LP, by its general partner Vaughan-P, Inc. 10. Vaughan-S, LP, by its general partner Vaughan-S GP, Inc. 11. Woodbridge-MC, LP, by its general partner Woodbridge-MC GP, Inc. 12. Woodbridge-PA, LP, by its general partner Woodbridge-PA GP, Inc. CURRENCY  Canadian Dollars  AVAILMENT  The Credit 02 Borrowers may avail Credit 02 by way of CDOR Advances and/or advances secured by  conditional sale contracts in form satisfactory to the Bank, acting reasonably.  INTEREST RATE  Interest on all Advances under Credit 02 shall be payable at the equivalent of the CDOR Rate on the last  Business Day of the current calendar month plus a spread of <*>% per annum for the next calendar  month with interest payable monthly on the second day of the next calendar month with such interest  calculated on a daily basis on the actual outstanding principal amount of Advances under Credit 02 at  the end of each day.  The CDOR Rate will be applicable on all Advances outstanding from time to time during the next  calendar month under Credit 02 and will be calculated on a daily basis on the actual outstanding  principal amount at the end of each day. The CDOR Rate will be established by the Bank for the next  calendar month based on the one (1) month CDOR Rate available on the last Business Day of the current  calendar month.  DRAWDOWN  New Vehicles, CAP and Program Vehicles  An Advance against any New Motor Vehicle is not to exceed the manufacturer’s/auction invoice  amount plus the amount of the Harmonized Sales Tax (HST) / Goods and Services Tax (GST) of  such New Motor Vehicle. This also applies to Dealer Trades. The Bank shall be provided with  the applicable Credit 02 Borrower’s purchase documentation for CAP Vehicles and Program  Vehicles, which is to include the model, year, serial number and odometer reading, prior to  drawdown.  Used Vehicles Purchased from Recognized Auto Auctions  An Advance against any Used Motor Vehicle purchased from a recognized auto auction shall  not exceed the applicable Credit 02 Borrower’s acquisition cost (net of HST). The Bank shall be  provided with the applicable Credit 02 Borrower’s purchase documentation, which is to include  the model, year, serial number and odometer reading, within 5 Business Days of the drawdown.   Other Used Vehicles  An Advance against any Used Motor Vehicle other than a Used Motor Vehicle purchased from  

 

5  LEGAL_36839831.10 a recognized auto auction shall not exceed 100% of the clean wholesale value as determined  from the current Canadian Black Book if the vehicle has 24,000 km or less per model year,  100% of the average wholesale value if more than 24,000 km per model year, or as otherwise  determined by the Bank, acting reasonably. The Bank shall be provided with the applicable  Credit 02 Borrower’s purchase documentation, which is to include the model, year, serial  number, ownership registration (in the name of the applicable Credit 02 Borrower) and  odometer reading, within 5 Business Days of the drawdown.  REPAYMENT  The Credit 02 Borrowers shall repay to the Bank all outstanding Obligations in respect of Credit 02 as  follows:  (a) make payments of accrued interest due and payable monthly in arrears with respect to each Advance on each Interest Payment Date; (b) make payments in accordance with the terms of any Delayed Payment Privilege Agreement; and (c) Advances or other Obligations outstanding under Credit 02 are repayable on the earlier of: (i) two (2) Business Days from the date of sale of the unit in respect of which a Credit 02 Advance was issued (in the case of sale of a unit for consideration paid by cash, cheque, electronic funds transfer or credit card) and ten (10) Business days from the date of sale (in the case of sale of a unit that is under a contract in transit); (ii) the date of demand by the Bank; or (iii) the month end following the maturity date of the loan term as follows: Type of Vehicle Loan Term  New & CAP Vehicles 365 days  Program Vehicles 180 days  Demonstrator, Service Rental &  Driver Education Vehicles  180 days in service,  maximum 365 days  Used Vehicles 90 days  The loan terms set out above may be extended for periods up to 90 days subject to prior approval of the  Bank and payment of loan curtailments equal to 10% of the original Advance (net of HST or GST) or as  otherwise required by the Bank.  SPECIFIC SECURITY  The following security, evidenced by documents in form satisfactory to the Bank and registered or  recorded as required by the Bank, is to be provided prior to any Advances or availment being made  under Credit 02 to the Applicable Borrower:  (a) If applicable, conditional sale contracts over units floored, with floor plan insurance on a replacement cost basis covering all units, loss, if any, payable to the Bank. (b) If applicable, Delayed Payment Privilege Agreement. SPECIFIC CONDITIONS  Until all debts and liabilities under Credit 02 have been discharged in full, the following conditions will  

 

6  LEGAL_36839831.10 apply in respect of Credit 02:  (a) Up to a maximum of Cdn$75,000,000 of the Authorized Limit of Credit 02 shall be available to finance Used Motor Vehicles. (b) The Credit 02 Borrowers undertake to complete the Bank’s standard form DPP delayed payment privilege request for all purchasers of any vehicles where a delayed payment privilege is requested. The Credit 02 Borrowers are authorized to make flooring loan Bulk Prepayments to a maximum 50%  (the “Bulk Pre-Payment Cap”) of outstanding interest bearing Advances under Credit 02, which may  be allocated to any outstanding Advances under Credit 02 at the sole discretion of the Credit 02  Borrowers, on the following basis:  (i) all Bulk Prepayments are indefeasible payments to the Bank which create a credit for the benefit of the Credit 02 Borrowers that has not, at the time of such payment, been allocated to specific Advances for New Motor Vehicles; (ii) Readvances in an amount greater than the outstanding Bulk Prepayments are not permitted. (iii) Readvances that would cause the Credit 02 Authorized Limit to be exceeded are not permitted. (iv) Bulk Prepayments made in excess of the Bulk Pre-Payment Cap are permitted, however, will not be included in the calculation of the interest owing. The Borrowers agree at all times to monitor the amount of the Bulk Prepayment with respect to the established Bulk Pre-Payment Cap. Bulk payments representing proceeds of Bankers’ Acceptances will be readvanced only on  maturity and to repay related Bankers’ Acceptances.  CREDIT NUMBER 03:                AUTHORIZED LIMIT: $350,000,000  TYPE  Leasing (wholesale), Daily Rental Leases and Finance Contracts  PURPOSE  To provide wholesale lease financing to each of the Borrowers below (the “Credit 03 Borrowers”) for  Leased Units, Daily Rental Leases and Finance Contracts by way of a revolving credit facility.  Borrowers:  1. Lithia Canada Leasing, LP, by its general partner Lithia Canada Leasing GP, Inc. 2. Motus Car Rental, LP, by its general partner Motus Car Rental GP, Inc. CURRENCY  Canadian Dollars  

 

7  LEGAL_36839831.10 AVAILMENT  The Credit 03 Borrowers may avail Credit 03 by way of direct advances (“Direct Advances”) evidenced  by a borrowing request in form satisfactory to the Bank delivered together with the Credit 03 Borrower’s  Wholesale Lease Management Report (defined below).   The Credit 03 Borrowers may obtain Advances under Credit 03 by way of Prime Rate Advances.   The Credit 03 Borrowers obtain Advances under Credit 03 by presenting orders to the Bank for acceptance  of Bankers’ Acceptances in multiples of Cdn$100,000 (subject to a minimum availment of $500,000)  and  having terms of maturity of 30 to 90 days without grace.  The aggregate amount of all Advances under Credit 03 shall not exceed the lesser of the Credit 03  Authorized Limit and the Wholesale Leasing Borrowing Base (as defined herein) as evidenced by the  Credit 03 Borrowers’ Wholesale Leasing Borrowing Base Certificate.  “Wholesale Leasing Borrowing Base” means, without duplication, the aggregate amount equal to the  following:  (a) with respect to Eligible Wholesale Leases, Eligible Daily Rental Leases and Eligible Finance Contracts, 100% of the aggregate depreciated book value (calculated in accordance with the below) of the Borrowers’ Eligible Wholesale Leases, Eligible Daily Rental Leases and Eligible Finance Contracts outstanding at any time, as evidenced by the Wholesale Lease Management Report; (b) with respect to leases for Leased Units and loans for Finance Contracts that do not meet the Rule of Nine but otherwise meet all the criteria of Eligible Wholesale Leases and Eligible Finance Contracts, 100% of the aggregate depreciated book value (calculated in accordance with the below) of such leases outstanding at any time (not to exceed 30% of the Authorized Limit of Credit 03), as evidenced by the Wholesale Lease Management Report; and (c) with respect to leases for Leased Units that are not Eligible Wholesale Leases and loans for Finance Contracts that are not Eligible Finance Contracts, 100% of the aggregate depreciated book value (calculated in accordance with the below) of such leases outstanding at any time (not to exceed 10% of the Authorized Limit of Credit 03), as evidenced by the Wholesale Lease Management Report. Notwithstanding the foregoing, (i) any Wholesale Lease, Daily Rental Lease or Finance  Contract included in the Wholesale Leasing Borrowing Base shall only be for of units/vehicles  in Canada, (ii) the value of the leases (as calculated above) relating to Leased Units of Medium  Duty Trucks or Heavy Duty Trucks that are included in the Wholesale Leasing Borrowing Base  shall not exceed 15% of the Credit 03 Limit and (iii) none of the leases included in the  Wholesale Leasing Borrowing Base shall be financed by any other third-party financing.  INTEREST RATE  Interest on Prime Rate Advances under Credit 03 shall be payable at the Bank’s Prime Lending Rate  from time to time, plus <*>% per annum.  Interest on Advances by way of Banker’s Acceptances under Credit 03 at the CDOR Rate in effect from  time to time, plus <*>% per annum. Each Advance by way of Bankers’ Acceptance shall be subject to a  minimum stamping fee of $500 payable at the time of each acceptance in accordance with the Bank’s  standard form Bankers’ Acceptance Agreement Advance.  

 

8  LEGAL_36839831.10      DRAWDOWN    N/A    REPAYMENT    The Credit 03 Borrowers shall repay to the Bank all outstanding Obligations in respect of Credit 03 as  follows:    (a) Advances together with all accrued interest thereon are repayable on demand; or    (b) Advances against Leased Units under Credit 03 which have been returned from lease (whether  during or at the end of the lease term) are to be removed from the Wholesale Lease Management  Report on the date the unit is sold, or in any event, by no later than 30 days from the date the  unit was returned from lease.        If at any time the sum of the aggregate outstanding Advances under Credit 03 exceed the Wholesale Leasing  Borrowing Base, the Credit 03 Borrowers shall repay an amount equal to 100% of such excess such that the  Wholesale Leasing Borrowing Base is maintained at all times.     SPECIFIC CONDITIONS    Until all debts and liabilities under Credit 03 have been discharged in full, the following conditions will  apply in respect of Credit 03:    (a) Up to a maximum of Cdn$25,000,000 of the Authorized Limit of Credit 03 shall be available to  finance Eligible Daily Rental Leases.    (b) Up to a maximum of Cdn$25,000,000 of the Authorized Limit of Credit 03 shall be available to  finance Eligible Finance Contracts.    (c) Notwithstanding the above, the form of the agreement to be used for Eligible Wholesale Leases,  Eligible Daily Rental Lease and Eligible Finance Contracts is subject to approval of the Bank,  acting reasonably. The Bank shall have the right, acting reasonably, in its sole discretion, to  exclude any Wholesale Lease, Daily Rental Lease or Finance Contract from the Wholesale  Leasing Borrowing Base.    (d) For the purposes of calculating the aggregate depreciated book value for Eligible Wholesale  Leases, the minimum average depreciation of the capital cost of all vehicles forming part of the  Wholesale Lease Management Report, is based on the following schedule:      Original Lease Term Rate per month  Up to 12 months 2.20%  13 to 24 months 1.70%  25 to 36 months 1.40%  37 to 48 months 1.20%  49 to 60 months 1.10%  61 to 72 months 1.00%    (e) For the purposes of calculating such value, the minimum vehicle depreciation of the capital cost  of all Eligible Daily Rental Leases, is based on the following schedule:  

 

9  LEGAL_36839831.10 Original Lease Term Rate per month  Up to 12 months 1.75%  13 to 24 months 2.00%  (f) For the purposes of calculating the aggregate depreciated book value for Eligible Finance Contracts, the minimum average depreciation of the capital cost of all vehicles forming part of the Wholesale Lease Management Report, is based on the following schedule Original Lease Term Rate per month  Up to 12 months 2.20%  13 to 24 months 1.70%  25 to 36 months 1.40%  37 to 48 months 1.20%  49 to 60 months 1.10%  61 to 72 months 1.00%  (g) With respect to any lease included in the Wholesale Leasing Borrowing Base, for audit purposes, the Bank shall have the right to verify any lease directly with the lessee thereunder. The verification of leases shall either be completed (i) directly by the Bank at no cost to the Credit 03 Borrowers or, (ii) at the option of the Credit 03 Borrowers, the verification of leases may be completed by the Credit 03 Borrowers’ auditor so long as the auditor is satisfactory to the Bank, acting reasonably, and the verification is completed in accordance with the terms stipulated by the Bank. The costs of the verification completed by the Borrowers’ auditor shall be paid by the Credit 03 Borrowers. CREDIT NUMBER 04:            AUTHORIZED LIMIT: $1,300,000  TYPE  Scotiabank Commercial Card - Availment, interest rate and repayment as per Bank’s standard form  cardholder agreement for each of the Borrowers.  CURRENCY  Canadian Dollars  CREDIT NUMBER 05:          AUTHORIZED LIMIT: US $285,000  TYPE  Scotiabank Commercial Card - Availment, interest rate and repayment as per Bank’s standard form  cardholder agreement for each of the Borrowers.   CURRENCY  US Dollars  

 

10  LEGAL_36839831.10 SECURITY, TERMS, AND CONDITIONS APPLICABLE TO ALL CREDITS  GENERAL SECURITY  The following security, evidenced by documents in form satisfactory to the Bank and registered or  recorded as required by the Bank, is to be provided prior to any advances or availment being made under  the Credits. For greater certainty, the following security shall secure all of the Borrowers present and  future debts and other obligations to the Bank of any kind whatsoever, whether described in this  Commitment Letter or any other Loan Document between any Borrower and the Bank:  (a) General Security Agreement over all present and future personal property of each Borrower. (b) Unlimited joint and several guarantee of each Borrower in favour of the Bank in respect of the debts, liabilities and obligations of each other Borrower. (c) Postponement and Subordination Agreement between the Bank, the Borrowers and Pfaff Automotive Partners Inc., which shall provide, among other things, that payments thereunder may be made provided that no Material Breach has occurred and is continuing. (d) Postponement and Subordination Agreements in respect of any Funded Debt owning by a Borrower to an Affiliate (not including any other Borrower but including any General Partner) of such Borrower which shall provide, among other things, that payments thereunder may be made provided that no Material Breach has occurred and is continuing. (e) Concurrently with the completion of the Kitchener Acquisition, a Priority Agreement between the Bank, Kitchener, and Mercedes-Benz Financial Services Canada Corporation, giving the Bank priority over all assets except those specifically financed by such manufacturer, in form and substance satisfactory to the parties thereto, each acting reasonably. (f) Concurrently with the completion of the Richmond Acquisition, a Priority Agreement between the Bank, Richmond, and Harley-Davidson Financial Services Canada, Inc., giving the Bank priority over all assets except those specifically financed by such manufacturer, in form and substance satisfactory to the parties thereto, each acting reasonably. (g) Bankers’ Acceptance Agreement in the Bank’s standard form. (h) Bankers’ Acceptance Execution and Issuance Agreement in the Bank’s standard form. (i) Landlord waivers and acknowledgements in respect of each leased property of the Borrowers to the extent obtainable using commercially reasonable efforts in the case of unrelated landlords. (j) Such priority agreements with all other manufacturers having registered Liens over assets acquired by the Borrowers as required, giving the Bank priority over all assets except those specifically financed by such manufacturers. (k) Such priority or subordination agreements with other secured creditors of the Borrower as may be required to give the Bank’s security priority over the secured property. (l) Conditional sales contracts in respect of the units financed under Credit 02. REALLOCATION  The Borrowers may, from time to time, request a reallocation of all or part of any unused portion of the  Credits, no more frequently than once in any calendar month. Following any reallocation:  

 

11  LEGAL_36839831.10 (a) The Authorized Limit of all Credits under this Commitment Letter shall not change. (b) The Credit 01 Authorized Limit shall not be (i) more than 20% of the Authorized Limit of all Credits, or (ii) less than the then outstanding principal balance of Credit 01. (c) The Credit 02 Authorized Limit shall not be (i) more than the Authorized Limit of all Credits, or (ii) less than the then outstanding principal balance of Credit 02. (d) The Credit 03 Authorized Limit shall not be (i) more that 55% of the Authorized Limit of all Credits, or (ii) less than the then outstanding principal balance of Credit 03. (e) No reallocations are permitted that would cause a Material Breach. REPRESENTATIONS AND WARRANTIES  Each of the Obligors represents and warrants to the Bank that:  (a) it is duly incorporated, validly existing and duly registered or qualified to carry on business in each jurisdiction in which its business or assets are located; (b) the execution, delivery and performance by it of this Commitment Letter and the other Loan Documents have been duly authorized by all necessary actions and do not violate its constating documents; (c) the execution, delivery and performance by it of this Commitment Letter and the other Loan Documents do not violate any Applicable Law or material agreements to which it is subject or by which it is bound, and in the case of material agreements, which would cause a Material Adverse Effect; (d) no event has occurred which constitutes, or which, with notice, lapse of time, or both, would constitute a Material Breach. (e) there is no claim, action, prosecution or other proceeding of any kind pending or, to its knowledge, threatened against it or any of its assets or properties before any court or administrative agency which, if adversely determined, might have a Material Adverse Effect, and there are no circumstances of which it is aware which might give rise to any such proceeding which it has not fully disclosed to the Bank; (f) it has good and marketable title to all of its properties and assets, free and clear of any Liens, other than Permitted Liens; (g) its business and assets are insured with financially sound and reputable insurance companies, in such amounts, with such deductibles and covering such risks as are customarily carried by companies engaged in similar businesses and owning similar properties in localities where it operates and in accordance with good industry practice; (h) (i) it has obtained all Governmental Approvals which are necessary for the conduct of its business as presently conducted, each of which is in full force and effect, is a good, valid and subsisting approval which has not been surrendered, forfeited or become void or voidable and is unamended, (ii) there is no default under any Governmental Approval, nor are there any proceedings in progress, pending or threatened which may result in the revocation, suspension or material adverse modification of the Governmental Approval, and (iii) no further registration, order, permit, filing, consent, authorization, licence, decree or approval of, from or with any Person (including any Governmental Authority) is necessary or advisable in order to ensure the legality, validity, binding effect and enforceability of the Loan Documents or the execution, 

 

12  LEGAL_36839831.10 delivery or performance of the Obligations, other than filings and registrations necessary to  perfect and protect the Liens constituted by the Security, except in each case as could not  reasonably be expected to have a Material Adverse Effect;  (i) No Obligor is engaged in any business other than the business of (a) selling, leasing and financing motor vehicles, motorcycles and boats and related activities, including parts and accessories sales and service and ancillary rental programs, (b) operating body and mechanical and service shops and related activities, (c) acquiring, owning, operating and, in some cases, selling dealerships engaged in such businesses, and (d) leasing or sub-leasing owned real property. (j) Except disclosed to the Bank, (i) the Obligors do not maintain or contribute to, is not required to maintain or contribute to, is not a party to, or bound by, and has no liability or contingent liability under any Pension Plan. (ii) All Pension Plans and Benefit Plans are established, registered, funded, invested, administered, operated and maintained under, and in compliance in all material respects with, all requirements of Applicable Law; (iii) No Pension Plan is a defined benefit pension plan; (iv) All employer and employee payments, contributions, premiums and other amounts, reports, returns and filings required to be made, remitted or paid in respect of Pension Plans and Benefit Plans have been made, remitted or paid and all such plans are fully funded both on a going concern basis and on a solvency basis pursuant to their most recent actuarial valuations filed with the applicable Governmental Authority and in accordance with Applicable Law; (v) All post-retirement liabilities (if any) under Pension Plans and Benefit Plans have been properly identified in Master Borrower’s consolidated financial statements provided to the Bank, and there are no going concern, past service or solvency deficiencies; (vi) in respect of Pension Plans which are registered pension plans within the meaning of the Income Tax Act (Canada), no steps have been taken to terminate or wind up any such plans (wholly or in part), no unauthorized merger of such plans, no unauthorized withdrawal of funds from such plans and no improper contribution holidays taken in respect of such plans; and (vii) there are no actions, claims or proceedings existing pending or, to the knowledge of the Borrowers, threatened against any Pension Plan, Benefit Plan or the assets of any such plan which could be reasonably expected to have a Material Adverse Effect; and (k) Except as disclosed to the Bank, there are no strikes, work stoppage, slowdowns, lockouts or other labour disputes pending or, to its knowledge, threatened, against any Obligor. It is in compliance in all material respects with all Applicable Law respecting labour and employment terms, conditions and practice and it is not a party to any labour, union or collective bargaining agreement or, except as disclosed to the Bank and to its knowledge, the subject of any current union organizing activities. CONDITIONS PRECEDENT TO CLOSING  The following conditions are to be met to the satisfaction of the Bank and its solicitor prior to any  Advances or availments being made under the Credits:  (a) a duly executed copy of this Commitment Letter; (b) the Security provided for herein, registered, as required, to the satisfaction of the Bank; (c) insurance certificate(s) of each of the Borrowers naming the Lender, evidencing the insurance required under this Commitment Letter showing loss payable to the Bank and showing the Bank as an additional insured under all liability policies; (d) the Bank shall have received satisfactory evidence that all registrations, filings, recordings and notices necessary or desirable (as determined by the Bank and its own counsel, acting 

 

13  LEGAL_36839831.10 reasonably) in connection with the Security have been properly made, filed or completed,  including all such registrations, filings, recordings and notices required to create a perfected first  priority security interest in favour of the Bank in the collateral described therein, subject to  Permitted Liens;  (e) such financial and other information or documents relating to the Borrowers (including the Asset Purchase Agreement) as the Bank may reasonably require; and (f) such other authorizations, approvals, officer’s certificates, legal opinions and any other documentation as the Bank may reasonably require. CONDITIONS PRECEDENT TO ADVANCES UNDER EACH CREDIT  The obligation of the Bank to make Advances hereunder (including the initial Advance) is subject to the  satisfaction of the following conditions precedent:   (a) The applicable Borrower shall have delivered to the Bank all advance notices and proceeds requests as required hereunder; (b) No Material Breach shall have occurred and be continuing on the date of the Advance or would result from the making of any such Advance; and (c) The representations and warranties contained in this Commitment Letter and in any other Loan Document (in each case, other than those made as of a specific date)  shall be true and correct in all material respects as if made on and as of the Advance date and the date of any Compliance Certificate. GENERAL CONDITIONS  FINANCIAL COVENANTS:  Master Borrower covenants and agrees with the Bank that:  (a) A Fixed Charge Coverage Ratio is to be maintained at all times of not less than 1.20:1. (b) A Leverage Ratio is to be maintained at all times of not more than 5.75:1. For the purposes of calculating the above ratios, any Debt and Interest Expense in respect of Credit 02, Credit 03  and the Manufacturer Flooring Facilities shall be excluded. The above financial covenants shall be calculated for  Master Borrower on a consolidated basis for the Obligors but such consolidation shall not include any Non- Designated Subsidiaries.   NEGATIVE COVENANTS:  Without limiting any other covenants hereunder or in any other Loan Document, without the Bank’s prior  written consent, no Obligor (unless otherwise indicated) shall take any of the following actions:  (a) Cause or permit any change of Control of the Obligors, other than a change of Control involving only the Obligors provided the Obligors provide prior written notice to the Bank. (b) Make any redemption, retraction, dividends, withdrawals or other return of capital in respect of the capital of Borrowers (other than from or to another Borrower) unless the Bank has been 

 

14  LEGAL_36839831.10 provided with the quarterly financial reporting below together with a Compliance Certificate  showing compliance with the financial covenants under this Commitment Letter before and after  such redemption, retraction, dividends, withdrawals or other return of capital.  (c) The Borrowers shall not make any distributions including dividends, withdrawals, bonuses, and advances to partners, shareholders, management or Affiliates (in each case other than to another Borrower) unless the Bank has been provided with the quarterly financial reporting below together with a Compliance Certificate showing compliance with the financial covenants under this Commitment Letter before and after such distributions. (d) Consolidate, amalgamate or merge with any other Person (other than another Obligor) or make any Acquisitions, other than Permitted Acquisitions, Investments, other than Permitted Investments, or material change in any of the Obligors’ line of business. (e) The Borrowers shall not create, incur, assume or permit any Funded Debt other than Permitted Debt. (f) The Borrowers shall not create, incur, assume or suffer to exist or cause or permit any Lien upon or in respect of any of its property other than Permitted Liens. (g) Export any New Motor Vehicles and Used Motor Vehicles being financed by any of the Credits outside of Canada unless, the financing related to such New Motor Vehicle or Used Motor Vehicle has been repaid prior to its export. (h) Permit its chief executive office or domicile or the location of its property to be located in any jurisdictions other than as specified in the Security without providing the Bank with fifteen (15) days’ prior written notice thereof. POSITIVE COVENANTS:  Without limiting any other covenants hereunder or in any other Loan Document, the Obligors covenant  and agree as follows:  (a) To duly and punctually pay and perform its Obligations hereunder and under the other Loan Documents to which it is a party at the times and places and in the manner required by the terms hereof and thereof. (b) To maintain its corporate existence and conduct its business in compliance in all material respects with all Applicable Laws and all permits and in accordance with prudent standards. (c) For ongoing credit risk management purposes, to maintain the operating accounts of the Borrowers with the Bank as long as the Borrowers have any operating line facilities with the Bank other than any operating accounts of the Borrowers not maintained with the Bank that are subject to a blocked accounts agreement with the Bank, the Applicable Borrower and the deposit bank in a form satisfactory to the Bank. (d) To permit the Bank, or its agents, access to conduct (on reasonable written notice and during normal business hours) from time to time inspections (at the Borrowers’ expense) for up to 2 such inspections per year per Borrower, unless a Material Breach has occurred and is continuing, including at all premises where the collateral covered by the Bank’s Security may be located, of all or any of the records, business and property of the Obligors. (e) The Borrowers will make the necessary information available and will permit the Bank or its agents to conduct flooring, and/or daily rental and/or revolving term audits, as applicable, during 

 

15  LEGAL_36839831.10 normal business hours once per Fiscal Quarter for each Borrower, provided that the Bank  reserves the right to increase the frequency of such audits once per month for each Borrower if  (i) a Material Breach has occurred and is continuing or (ii) the results of prior audits are not satisfactory to the Bank, acting reasonably. (f) To maintain insurance with financially sound and reputable insurance companies, in such amounts, with such deductibles and covering such risks as are customarily carried by companies engaged in similar businesses and owning similar properties in localities where it operates and in accordance with good industry practice. Each Borrower shall provide copies of those policies to the Bank (as requested), which policies shall be satisfactory to the Bank, acting reasonably, and shall not be subject to any co-insurance clause. Each insurance policy shall include an endorsement whereby the insurers agree to give the Bank not less than 30 days’ notice of the cancellation of the policy of insurance and permit the Bank to cure any default which may exist under the policy. The Bank shall either be named as loss payee or additional insured as its interest may appear in all of the Borrowers’ policies of insurance or otherwise be assured of the availability of continuing coverage in a manner satisfactory to the Bank. (g) To pay all Taxes as they become due and payable unless they are being contested in good faith by appropriate proceedings, diligently prosecuted, and for which satisfactory resources have been set aside. (h) To promptly notify the Bank in writing of the occurrence of (i) any Material Breach of which it is aware;  (ii) any Material Adverse Change or any other event or circumstance with could cause a Material Adverse Change or (iii) any litigation, proceeding or dispute, threatened or commenced for claims in excess of Cdn$10,000,000. (i) To provide such other information relating to its business, property and financial condition as the Bank may reasonably request from time to time. (j) If there is any change from the accounting policies, practices and calculation methods used by the Borrowers in preparing any part of its financial statements for the fiscal year most recently completed, the Borrowers shall provide the Bank with all information that the Bank requires to ensure that reporting provided to the Bank after any changes are comparable to previous reporting. In addition, all calculations made for the purposes of this Commitment Letter shall continue to be made based on the accounting policies, practices and calculation methods in effect as at the date of the financial statements for the most recently completed fiscal year. In the event of a change in the accounting policies, practices and calculation methods, the Bank retains the right (a) to act on any default under the financial covenants or any other terms and conditions as defined in this Commitment Letter that is disclosed by applying the previous accounting policies, practices and calculation methods and (b) at its discretion and acting reasonably, to amend/reset covenants that are affected by the change. (k) To operate and administer all Pensions Plans and Benefit Plans in compliance with the terms of such plans and all Applicable Law and shall maintain all necessary governmental approvals which are material in respect of the operation of such plans and comply, in all respects, with its obligations under such plans and Applicable Law including, without limitation, making all contributions and payments required to be made under the terms of such plans, Applicable Law and any applicable valuation report. (l) To promptly notify the Bank on becoming aware of (a) the institution of any steps by any Person to terminate or effect a partial wind-up of any Pension Plan, (b) the failure to make a required contribution to any Pension Plan if such failure is sufficient to give rise to a Lien under Applicable Law, (c) the taking of any action with respect to a Pension Plan that is reasonably likely to result in the requirement that any Obligor furnish a bond or other security to such Pension Plan or any applicable Governmental Authority, or (d) the occurrence of any event with 

 

16  LEGAL_36839831.10 respect to any Pension Plan that has not been disclosed to the Bank and that is reasonably likely  to result in the incurrence by an Obligor of any material liability, fine or penalty.  (m) The Borrowers shall, within thirty (30) days, cause any Person that is or becomes a Designated Subsidiary of any of the Borrowers to become a “Borrower” for the purposes of this Commitment Letter and the other Borrowers shall cause such new Borrower, as applicable, to: a. execute and deliver in favour of the Bank a joinder to this Commitment Letter in form satisfactory to the Bank, acting reasonably; b. execute and deliver to the Bank an unlimited unconditional guarantee with respect to the Obligations of the other Borrowers, such guarantee to be in substantially similar form as the guarantee delivered by the Borrowers on the Effective Date; c. grant or cause to be granted to the Bank a first priority perfected lien on all of the assets of such new Borrower, as applicable; and d. execute such other documents and take such other actions, including delivery of legal opinions of counsel to such Borrower, as may be reasonably required by the Bank in connection therewith. Upon compliance with the applicable requirements of this Section, the applicable Designated  Subsidiary shall become a Borrower hereunder and under the other applicable Loan Documents  with the same force and effect as if originally named as an Borrower. The execution and  delivery by an additional Borrower, of any instrument adding such additional a Borrower shall  not require the consent of any other Borrower hereunder or the Bank, provided in the case of the  Bank (a) through (d) above are complied with. The rights and obligations of each Borrower  hereunder shall remain in full force and effect notwithstanding the addition of any new  Borrower hereunder.  Additional terms and conditions in Schedule A are to apply, provided that in the event of a conflict  between the terms and conditions of the main body of this Commitment Letter and Schedule A, the terms and  conditions of the main body of this Commitment Letter will apply.  REPORTING CONDITIONS  Until all Obligations have been discharged in full, the Borrowers will provide the Bank with the  following:  (a) Annual internally prepared financial statements of Master Borrower, on a consolidated basis, but excluding any Non-Designated Subsidiary with accompanying cash flow statement within 120 days of each fiscal year end. Breakdowns to include sales, cost of sales, Bank debt and other items as reasonably required by the Bank. (b) Quarterly consolidated interim financial statements of Master Borrower, excluding any Non- Designated Subsidiary, within 45 days of the end of each of the first (3) Fiscal Quarters. (c) Quarterly interim financial statements of the Borrowers, within 45 days of the end of each Fiscal Quarter. (d) Quarterly compliance certificate signed by a senior officer of the Master Borrower, certifying that the Borrowers, on a combined basis, are in compliance with all conditions of this Commitment Letter and that there has been no Material Breach, other than as outlined in the compliance certificate (such certificate, a “Compliance Certificate”), within 45 days of the end of each of the first (3) Fiscal Quarters and within 120 days of the fiscal year end of the Borrowers. (e) Quarterly wholesale lease loan loss and payment delinquency report with 30 days of the end of 

 

17  LEGAL_36839831.10 each Fiscal Quarter which report shall include delinquency aging for leases included in the most  recent Wholesale Lease Management Report.  (f) Monthly Revolving Credit Facility Borrowing Base Certificate with accompanying calculation in a form satisfactory to the Bank within 30 days of each calendar month-end. (g) Monthly Wholesale Leasing Borrowing Base Certificate with accompanying Wholesale Lease Management Report in a form satisfactory to the Bank within 30 days of each calendar month- end. PARAMOUNTCY  In the event of a conflict between the terms and conditions of (i) the agreements re operating credit line, the B/A  Agreement and B/A Execution and Issuance Agreement, the application and agreement for irrevocable standby  letter of credit, the visa cardholder agreements, any Cash Management Agreements, any Hedging Agreements  and any other Bank standard form document, and (ii) this Commitment Letter, the terms and conditions this  Commitment Letter will apply.  ASSIGNMENT  The Bank will have the right to assign all or a part of its loans with the Borrower’s prior written consent, such  consent not to be unreasonably withheld, provided that in the event of a Material Breach, the Bank may enter  into any such assignment without the Borrower’s consent.  OTHER FEES  The Borrowers shall pay to the Bank:  (a) A commitment fee of Cdn$<*> which is due and payable upon acceptance of this  commitment. (b) An audit fee of Cdn$<*>which is due and payable quarterly by the Borrowers at the end of  each reporting period. EXPIRY OF OFFER  This offer expires August 30, 2021  

 

18  LEGAL_36839831.10  SCHEDULE A    ADDITIONAL TERMS AND CONDITIONS APPLICABLE TO ALL CREDITS    (In the event of a conflict, the terms and conditions of any lease agreement and/or conditional sales contract  supersede the terms and conditions in this Schedule A with regard to such leases and/or conditional sales  contracts).     Calculation and Payment of Interest    1. Interest on loans/advances made in Canadian Dollars will be calculated on a daily basis and payable  monthly on the 22nd day of each month (unless otherwise stipulated by the Bank). Interest shall be  payable not in advance on the basis of a calendar year for the actual number of days elapsed both before  and after demand of payment or default and/or judgment.    2. Interest on loans/advances made in US Dollars will be calculated on a daily basis and payable monthly  on the 22nd day of each month, (unless otherwise stipulated by the Bank). Interest shall be payable not  in advance on the basis of a 360 day year for the actual number of days elapsed both before and after  demand of payment or default and/or judgment. The rate of interest based on a 360 day year is  equivalent to a rate based on a calendar year of 365 days of 365/360 times the rate of interest that applies  to the US Dollar loans/advances.    Interest on Overdue Interest    3. Interest on overdue interest shall be calculated at the same rate as interest on the loans/advances in  respect of which interest is overdue, but shall be compounded monthly and be payable on demand, both  before and after demand and judgment.     Indemnity Provision     4. If the introduction, adoption or implementation of, or any change in, or in the interpretation of, or any  change in its application to the Borrowers of, any law, regulation, guideline or request issued by any  central bank or other Governmental Authority (whether or not having the force of law), including,  without limitation, any liquidity reserve or other reserve or special deposit requirement or any tax (other  than tax on the Bank’s general income) or any capital requirement, has due to the Bank’s compliance the  effect, directly or indirectly, of (i) increasing the cost to the Bank of performing its obligations hereunder  or under any availment hereunder; (ii) reducing any amount received or receivable by the Bank or its  effective return hereunder or in respect of any availment hereunder or on its capital; or (iii) causing the  Bank to make any payment or to forgo any return based on any amount received or receivable by the  Bank hereunder or in respect of any availment hereunder determined by the Bank in its discretion, then  upon demand from time to time the Borrowers shall pay such amount as shall compensate the Bank for  any such cost, reduction, payment or forgone return (collectively “Increased Costs”) as such amounts  are reasonably determined by the Bank and set forth in a certificate to the Borrowers.    In the event of the Borrowers becoming liable for such Increased Costs, the Borrowers shall have the  right to prepay in full, without penalty, the outstanding principal balance under the affected credit other  than the face amount of any document or instrument issued or accepted by the Bank for the account of  the Borrowers, including, without limitation, a Letter of Credit, a Letter of Guarantee or a Bankers’  Acceptance. Upon any such prepayment, the Borrowers shall also pay the then accrued interest on the  amount prepaid and the Increased Costs to the date of prepayment together with such amount as will  compensate the Bank for the cost of any early termination of its funding arrangements in accordance  with its normal practices, as such amounts are calculated in a certificate reasonably prepared by the  Bank.    Calculation and Payment of Bankers’ Acceptance Fee  

 

19  LEGAL_36839831.10    5. The fee for the acceptance of each Bankers’ Acceptance will be payable on the face amount of each  Bankers’ Acceptance at the time of acceptance of each draft calculated on the basis of a calendar year  for the actual number of days elapsed from and including the date of acceptance to the due date of the  draft.     Environment    6. Each Borrower agrees:    (a) to obey all Applicable Laws and requirements of any federal, provincial, or any other  Governmental Authority relating to the environment and the operation of the business activities  of such Borrower, except where failure to so comply would not reasonably be expected to have  a Material Adverse Effect;    (b) to allow the Bank access during normal business hours to the business premises of such  Borrower to monitor and inspect all property and business activities of such Borrower;;    (c) to notify the Bank from time to time of any business activity conducted by such Borrower which  involves the use or handling of hazardous materials or wastes which are not normally used in the  business of such Borrower or which increases the environmental liability of such Borrower in  any material manner;    (d) to notify the Bank of any proposed change in the use or occupation of the property of such  Borrower prior to any change occurring;    (e) to provide the Bank with prompt written notice of any environmental problem and any  hazardous materials or substances which would reasonably be expected to have a Material  Adverse Effect and with any other environmental information reasonably requested by the Bank  from time to time.    (f) to conduct all environmental remedial activities which a commercially reasonable person would  perform in similar circumstances to meet its environmental responsibilities and if such Borrower  fails to do so, the Bank may perform such activities; and    (g) to pay for any environmental investigations, assessments or remedial activities with respect to  any property of such Borrower that may be performed for or by the Bank from time to time.    If the Borrowers notify the Bank of any specified activity or change or provides the Bank with any  information pursuant to subsections (c), (d), or (e), or if the Bank receives any environmental  information from other reasonable sources that would reasonably be expected to have a Material  Adverse Effect, the Bank, in its sole discretion, may decide that a Material Adverse Change has  occurred. Following this decision being made by the Bank, the Bank shall notify the Borrowers of the  Bank’s decision concerning the Material Adverse Change.    If the Bank decides or is required to incur reasonable out-of-pocket expenses in compliance or to verify  the Borrowers’ compliance with applicable environmental or other regulations, the Borrowers shall  indemnify the Bank in respect of such reasonable out of pocket expenses, which will constitute further  advances by the Bank to the Borrowers under this Commitment Letter.    Notice of Drawdown/Payments    7. The Borrowers shall give the Bank prior notice of a drawdown or payment of any loan/advance as  follows:    

 

20  LEGAL_36839831.10  (a) Before 10:00am on the same Business Day in the case of Prime Rate Advances (provided that  no notice shall be required for Prime Rate Advances by way of overdraft)  (b) Before 10:00am one Business Day in the case of CDOR Advances, Direct Advances and B/As.  (c) Before 10:00am three Business Days in the case of Letters of Credit provided that the  Applicable Borrower has provided the Bank with an application and agreement for irrevocable  standby letter of credit prior to such period.    Initial Drawdown    8. The right of the Borrowers to obtain the initial drawdown under the Credit(s) is subject to the condition  precedent that there shall not have been any Material Adverse Change (and the Bank acknowledges and  agrees that transactions pursuant to the Asset Purchase Agreement shall not constitute a Material  Adverse Change).      Evidence of Indebtedness    9. The Bank’s accounts, books and records constitute, in the absence of manifest error, conclusive evidence  of the advances made under all Credits, repayments on account thereof and the indebtedness of the  Borrowers to the Bank.    Acceleration    10. (a) All indebtedness and liability of the Borrowers to the Bank payable on demand, is repayable by  the Borrowers to the Bank at any time on demand by the Bank;    (b) All indebtedness and liability of the Borrowers to the Bank not payable on demand, shall, at the  option of the Bank, become immediately due and payable, the security held by the Bank shall  immediately become enforceable, and the obligation of the Bank to make further advances or  other accommodation available under the Credits shall terminate, if any one of the following  occurs:    (i) any Borrower or any guarantor fails to make when due whether on demand or at a fixed  payment date, by acceleration or otherwise, any payment of interest, principal, fees,  commissions or other amounts payable to the Bank;    (ii) there is a breach by any Borrower or any guarantor of any other term or condition  contained in this Commitment Letter or in any other agreement to which the Borrower  and/or any guarantor and the Bank are parties;    (iii) any default occurs under any security listed in this Commitment Letter under the  headings “Specific Security” or “General Security” or under any other credit, loan or  security agreement to which any Borrower and/or any guarantor is a party, or any  representation or warranty of any Borrower ceases to be true.    (iv) any bankruptcy, re-organization, compromise, arrangement, insolvency or liquidation  proceedings or other proceedings for the relief of debtors are instituted by or against any  Borrower or any guarantor and, if instituted against any Borrower or any guarantor, are  allowed against or consented to by any Borrower or any guarantor or are not dismissed  or stayed within 60 days after such institution;    (v) a receiver is appointed over any property of any Borrower or any guarantor or any  judgement or order or any process of any court becomes enforceable against the  Borrower or any guarantor or any property of the Borrower or any guarantor or any  creditor takes possession of any property of the Borrower or any guarantor;  

 

21  LEGAL_36839831.10    (vi) any course of action is undertaken by any Borrower or any guarantor or with respect to  the Borrowers or any guarantor which would result in the Borrower’s or guarantor’s  reorganization, amalgamation or merger with another corporation or the transfer of all  or substantially all of any Borrower’s or any guarantor’s assets;    (vii) any guarantee of indebtedness and liability under the Credit is withdrawn, determined to  be invalid or otherwise rendered ineffective;    (viii) any adverse change occurs in the financial condition of any Borrower or any guarantor.    (ix) any adverse change occurs in the environmental condition of:    (A) any Borrower or any guarantor of the Borrowers; or    (B) any property, equipment, or business activities of any Borrower or any  guarantor of any Borrower.    Costs    11. All reasonable out of pocket costs, including reasonable legal and appraisal fees incurred by the Bank  relative to security and other documentation and the enforcement thereof, shall be for the account of the  Borrowers and may be charged to any Borrower’s deposit account when submitted.    Request for English (Quebec only)    12.  This document and all related documents have been drafted in English at the Borrowers’ request. Ce  document et tous les documents y afférents ont été rédigés en anglais à la demande de l’emprunteur.    Judgement Currency    13. The obligations of any Borrower shall be payable in (Canadian/US) Dollars. Such obligations shall not  be discharged or satisfied by any tender or recovery pursuant to any judgment expressed in or converted  into any other currency except to the extent to which such tender or recovery shall result in the effective  receipt by the Bank of the full amount of (Canadian/US) Dollars so payable. Accordingly, the obligation  of any Borrower shall be enforceable as an alternate or additional cause of action for the purpose of  recovery in (Canadian/US) Dollars of the amount (if any) by which such effective receipt shall fall short  of the full amount of (Canadian/US) Dollars so payable and shall not be affected by any judgment being  obtained for any other sum due hereunder.    Financing Statement    14. On acceptance of this credit offer the Bank is hereby authorized to register a financing statement(s) in  connection with the security detailed in this Commitment Letter.    Counterparts and execution of documents.    15. This Commitment Letter and any security and other documents relating to the credits established in it  may be executed in counterparts and by different parties in different counterparts, all of which when  taken together will constitute a single contract. Subject to applicable conditions precedent, a document  will become effective when it has been executed by the Bank (if execution by the Bank is contemplated  by the document) and the Bank has received counterparts of the document that, when taken together,  bear the signatures of each of the other relevant parties. Delivery of an executed counterpart of a  document or a signature page to the document by telecopy or by sending a scanned or other copy by  electronic mail or similar means shall be as effective as delivery of an originally executed counterpart,  

 

22  LEGAL_36839831.10  but the Bank may from time to time require delivery of originally executed documents. The Bank may  create and store copies of documents in any form as part of its business records, including by microfilm,  photocopy and electronic image. Copies may be held in place of original documents and substituted for  original documents for any purpose. In administering the credits established in the Commitment Letter  and in otherwise dealing with any Borrower and any guarantor, the Bank may rely and act on e-mail,  telecopier and other electronic communications that it reasonably believes have been sent by or on  behalf of the Borrowers or any guarantor, but the Bank may from time to time require that  communications from any Borrower or any guarantor be in a non-electronic form specified by the Bank.    Representation or Warranty    16. Each Obligor represents and warrants to the Bank that all financial and other information (including,  without limitation, any financial forecasts) provided to the Bank in connection with the credit(s)  provided pursuant to this Commitment Letter is true and accurate in all material respects and has been  prepared in accordance with GAAP consistently applied, and acknowledges that the offer of credit  contained in this Commitment Letter is made in reliance on the truth and accuracy of this information  and the representation and warranties above.    Governing Law    17. This Commitment Letter shall be construed in accordance with and governed by the laws of the Province  of Ontario and the laws of Canada applicable therein. The Borrowers irrevocably submits to the non- exclusive jurisdiction of the courts of the Province of Ontario and acknowledges the competence of such  courts and irrevocably agrees to be bound by a judgment of any such court.    Discontinuance of Benchmark Rate     18. Notwithstanding anything to the contrary in this Commitment Letter or any other loan or security  document between the Bank and the Borrowers, following a Discontinuation Event the Bank may amend  the relevant documentation to replace the Benchmark Rate with a Replacement Rate for the next  following Interest Period by providing the Borrowers with notice thereof, following which the  Borrowers shall (a) if the relevant credit is an operating facility, have the right to prepay in full, without  penalty, the outstanding principal balance under the affected credit plus any accrued interest on the  amount prepaid at the end of the then current Interest Period, or (b) if the relevant credit is a term facility  or revolving term facility, have the right to prepay the credit in full at the end of the then current Interest  Period in accordance with the terms of prepayment set out in the Commitment Letter, including any  prepayment fees or penalties.    Definitions Related to Discontinuance of Benchmark Rate    “Authority” shall mean an administrative body that regulates and/or publishes the relevant Benchmark  Rate, including any applicable governmental or regulatory body that has the direct or indirect ability to  determine whether or not a Benchmark Rate shall be generally used in the market and/or published.    “Benchmark Rate” shall mean any interest rate, fee or charge in a Loan Document that is based on or  equivalent to a standard regularly published rate and includes, for greater certainty, LIBOR.    “Discontinuation Event” means (i) an announcement by or on behalf of an Authority that the relevant  Benchmark Rate will no longer be used or published, (ii) the relevant Benchmark Rate is not published  for five consecutive Business Days and such failure is not reasonably believed to be temporary in nature,  or (iii) the Authority has invoked its insufficient submissions policy (for LIBOR) or any policy of  similar effect (for any other Benchmark Rates).    “Interest Period” means, for any credit referencing a Benchmark Rate, the period commencing on the  applicable date of drawdown or rollover of such credit and ending on the maturity date of such credit.  

 

23  LEGAL_36839831.10    “Replacement Rate” means an alternate interest rate, fee, or charge, including any positive or negative  spread adjustment or method for determining such spread adjustment selected by the Bank, acting  reasonably, in each case giving due to consideration to any market convention for similar credit  facilities; provided that the Replacement Rate (together with any applicable spread) shall not be less than  zero for the purposes of any Loan Documents.     

 

24  LEGAL_36839831.10  APPENDIX A  DEFINITIONS AND INTERPRETATION    1. Definitions. In this Commitment Letter, including the Terms and Conditions attached hereto:  “Acquisition” means, for any Person, the acquisition (whether for cash, property, services, securities or  otherwise) of any businesses that are in a substantially similar line of business conducted by the Borrowers  (or any of them) and any ancillary businesses related thereto, located substantially within Canada or the  United States of America or any agreements to make such acquisition.  “Advance” means an availment of a Credit hereunder by the Applicable Borrower including by way of  Prime Rate Advances, CDOR Advances, issuances of Letters or Credit, acceptances of B/As, Direct  Advances and other deemed Advances and conversions, renewals and rollovers of existing Advances, and  any reference relating to the amount of Advances shall mean the sum of all outstanding Prime Rate  Advances plus the face amount of all outstanding Letters of Credit and B/As.  “Affiliates” means with respect to a specified Person, another Person that directly, or indirectly through  one or more intermediaries, Controls or is Controlled by or is under common Control with the Person  specified.  “Applicable Borrowers” means, in the context of any Credit, all Borrowers who are entitled to receive  Advances pursuant to such Credit.  “Applicable Law” means, with respect to any Person, (i) any domestic or foreign statute, law (including  common and civil law), treaty, code, ordinance, rule, regulation, restriction or by-law (zoning or  otherwise), (ii) any judgement, order, writ, injunction, decision, ruling, decree or award, (iii) any  regulatory policy, practice, guideline or directive, or (iv) any franchise, licence, qualification,  authorization, consent, exemption, waiver, right, permit or other approval of any Governmental Authority,  binding on or affecting the Person referred to in the context in which the term is used or binding on or  affecting the Property of such Person, in each case whether or not having the force of law.  “Asset Purchase Agreement” means the asset purchase agreement dated May 25, 2021 between, among  others, Pfaff Automotive Partners Inc. and Lithia Motors, Inc. as assigned pursuant as an assignment  agreement dated August 30, 2021 between Lithia Motors Inc. and the Master Borrower and an assignment  agreement between dated August 30, 2021, among others, Master Borrower and the seller entities party  thereto and as further assigned by an assignment agreement dated August 30, 2021 between, among others,  the Master Borrower and the other Borrowers.  “Authorized Limit of all Credits” means the sum of (i) the authorized limit of Credit 01 (which as of the  date hereof is Cdn$50,000,000), (ii) the authorized limit of Credit 02 (which as of the date hereof is  Cdn$300,000,000), (iii) the authorized limit of Credit 03 (which as of the date hereof is Cdn$350,000,000),  (iv) the authorized limit of Credit 04 (which as of the date hereof is Cdn$1,300,000), and (v) the authorized  limit of Credit 05 (which as of the date hereof is US$285,000).  “Bankers’ Acceptance” or “B/A” means a depository bill as defined in the Depository Bills and Notes  Act (Canada) in Canadian Dollars that is in the form of an order signed by the Applicable Borrower and  accepted by the Bank.    “Benefit Plan” means any employee benefit plan (other than a Pension Plan) established, contributed to  or maintained by or on behalf of any Obligor for the benefit of their respective employees.  “Bulk Prepayments” means a program allowing the Borrowers to make lump sum payments from time  to time in repayment of Advances under Credit 02 (without paying out specific units).  

 

25  LEGAL_36839831.10  “Business Day” means any day other than a Saturday, or a Sunday or a day that banks are lawfully closed  for business in Toronto, Ontario.  “Canadian Black Book” means that publication that provides, inter alia, values for New and Used Motor  Vehicles in Canada.  “Canadian Dollars” and “Cdn$” mean the lawful money of Canada.   “CAP Vehicle” means New Motor Vehicles, previously driven by manufacturer executives and  representatives.  “Cash Equivalent Investments” means (i) securities issued or fully guaranteed by the government of  Canada, United States or any agency or instrumentality thereof, (ii) commercial paper rated A-1 or better  by S&P or P-1 or better by Moody’s, (iii) demand deposit accounts maintained in the ordinary course of  business, and (iv) certificates of deposit issued by and time deposits with commercial banks (whether  domestic or foreign) having capital and surplus in excess of $500,000,000, (v) shares of money market  mutual funds that are rated at least “AAAm” or “AAAG” by S&P or “P-1” or better by Moody’s, (vi)  Canadian Dollars or U.S. Dollars, and (vii) other cash equivalent investments approved in writing by the  Bank.   “Cash Management Agreements” means any agreement entered into or to be entered into by the  Borrowers or any of the other Obligors with the Bank for or in respect of cash management services for  the Borrowers and any other Obligor, including mirror accounting arrangements, account positioning  arrangements, pooled accounts, netting arrangements across accounts, centralized operating accounts,  automated clearing house transactions, controlled disbursement services, treasury, depository, overdraft  and electronic funds transfer services, and any indemnity given in connection with any of the foregoing.  “CDOR Advances” means an Advance bearing interest based on CDOR.   “CDOR Rate” means on any day the annual rate of interest which is the rate determined as being the  arithmetic average of the quotations of all institutions listed in respect of Canadian Dollar denominated  bankers’ acceptances with a maturity equal or comparable to the requested Bankers’ Acceptance displayed  and identified as such on the “Refinitiv Screen Canadian Dollar Offered Rate (CDOR) Page” of Reuters  Monitor Money Rates Service (the “Reuters Screen CDOR Page”) as of 10:00 a.m. Toronto, Ontario  local time on such day and, if such day is not a Business Day, then on the immediately preceding Business  Day (as adjusted by the Bank after 10:00 a.m. Toronto, Ontario local time to reflect any error in a posted  rate of interest or in the posted average annual rate of interest); and if such rates are not available on the  Reuters Screen CDOR Page on any particular day, then the CDOR Rate on that day shall be calculated as  the rate applicable to Canadian Dollar denominated bankers’ acceptances with a maturity equal or  comparable to the requested Bankers’ Acceptance quoted by the Bank as of 10:00 a.m. Toronto, Ontario  local time on such day; or if such day is not a Business Day, then as quoted by the Bank on the immediately  preceding Business Day.  “Commitment Letter” mean this agreement and any schedules hereto, as amended, supplemented,  restated and replaced from time to time.  “Compliance Certificate” has the meaning ascribed to such term in paragraph (g) under the heading  “Reporting Conditions”.  “Contracts in Transit” or “CITs”  means all amounts due to an Obligor from any financial institution  on retail finance contracts from vehicle sales, including amounts receivable from wholesale sales.  “Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the  management or policies of a Person, whether through the ability to exercise voting power, by contract or  otherwise. “Controlling” and “Controlled” have corresponding meanings.  

 

26  LEGAL_36839831.10   “Dealer Trade” means a vehicle financed under Credit 02 or Credit 03 that is purchased and sold between  the Borrowers or between a Borrower and a third party arm’s length dealer.  “Debt” means in respect of any Person, the debt of such Person determined in accordance with GAAP.  “Delayed Payment Privilege Agreement” means a program under which a Borrower is permitted to grant  short term payment terms to eligible purchasers on delivered vehicles; for the purposes of this definition,  eligible purchasers means governments, large national corporations, financially strong lessors and daily  rental counterparties, or such other counterparties acceptable to the Bank, acting reasonably. Such short  term payments shall not exceed 30 days.  “Demonstrator, Service Rental, Public Education Vehicle” means a passenger car or Light Duty Truck  from the current model year or the immediately prior model year (based on a calendar year) used by the  Borrowers as a demonstrator/courtesy vehicle/service rental/public education unit at their respective  places of business.  “Designated Subsidiary” each Subsidiary, direct or indirect, of a Borrower designated by the Master  Borrower, in its sole discretion, as a Designated Subsidiary, provided that such Subsidiary must be formed  or incorporated pursuant to the laws of Canada or its provinces or territories.  “EBITDAR” means, with respect to any fiscal period of the Master Borrower, consolidated net income  from continuing operations (excluding extraordinary gains or losses and unrealized gains or losses with  respect to hedging obligations) of Master Borrower plus, to the extent deducted in determining net income,  Interest Expense and income taxes accrued during, and depreciation, depletion and amortization expenses  deducted, rental or lease expense for, the period, all computed and consolidated in accordance with GAAP.  Notwithstanding the foregoing, with respect to any Permitted Acquisition, EBITDAR shall include  normalized EBITDAR of the Person being acquired or whose assets are being acquired, as if such  acquisition was made at the beginning of the 12-month period prior to such Permitted Acquisition solely  with respect to the calculation of the Fixed Charge Coverage Ratio and the Leverage Ratio.   “Effective Date” means August 30, 2021  “Eligible Daily Rental Leases” are leases which meet the following criteria:    (i) are in respect of new and used passenger cars and Light Duty Trucks;  (ii) are for motor vehicles from the current and preceding one model year with an odometer reading  of 24,000 kilometres or less, per model year; and  (iii) the lease terms do not exceed 24 months; and  (iv) the Applicable Borrower shall have provided evidence satisfactory to the Bank of the insurance  on the leased vehicle(s) as follows:  (A) fire, theft and comprehensive (or combined additional coverage for trucks), in an amount  not less than the actual cash/value;  (B) collision or upset in an amount not less than the actual cash value with a deductible  amount not exceeding $1,000 for automobiles and light trucks; and  (C) public liability (property damage and bodily injury) in the minimum amount of  $1,000,000.  “Eligible Equipment” means at any time, the equipment, and machinery of the Borrowers that, at such  time:  (i) are permanently located in Canada;  

 

27  LEGAL_36839831.10  (ii) are subject to a first-ranking lien held by the Bank pursuant to the Security,  (iii) and are not subject to any other lien (including any purchase money security interest);  (iv) are not, in the Bank’s opinion, obsolete, unsaleable or damaged; and  (v) are not leasehold improvements.  “Eligible Finance Contracts”  means Finance Contracts which meet the following criteria:  (i) are negotiated between the Applicable Borrower and other Obligors or unrelated third parties with  terms not exceeding 72 months;  (ii) have initial capitalized book value of the vehicle subject to the Finance Contract not to exceed the  applicable Borrowers’ acquisition cost (net of HST) supported by purchase documentation;  (iii) are in respect of vehicles from the current and preceding eight model years;   (iv) the sum of the age of the vehicle subject to the Finance Contract in model years and the term of  the lease does not exceed the aggregate of 108 months;  (v) the Finance Contract shall not be in arrears of payments for (i) over 30 days at the time of its initial  inclusion in the Wholesale Leasing Borrowing Base and (ii) 90 days or over at any time thereafter;  (vi) the Applicable Borrower shall have performed a credit investigation on each new purchaser and  have maintained a copy of such report for review by the Bank at any time requested by them; and  (vii) the Applicable Borrower shall have conducted the appropriate Lien searches and the Bank shall  have received and be satisfied with evidence of personal property registrations in respect of the  Finance Contract against each purchaser in all relevant jurisdictions.  “Eligible Wholesale Leases” are leases which meet the following criteria  (i) are negotiated between the Applicable Borrower and other Obligors or unrelated third parties with  terms not exceeding 72 months;  (ii) have initial capitalized book value of any Leased Unit subject to the lease not to exceed the  applicable Borrowers’ acquisition cost (net of HST) supported by purchase documentation;  (iii) are in respect of Leased Units from the current and preceding eight model years;   (iv) the sum of the age of the Leased Unit in model years and the term of the lease does not exceed  the aggregate of 108 months (the “Rule of Nine”);  (v) the lease shall not be in arrears of lease payments for (i) over 30 days at the time of its initial  inclusion in the Wholesale Leasing Borrowing Base and (ii) 90 days or over at any time thereafter;  (vi) the Applicable Borrower shall have performed a credit investigation on each new lessee of a lease  and have maintained a copy of such report for review by the Bank at any time requested by them;  (vii) are not for Leased Units that are boats or motorcycles;  (viii) the Applicable Borrower shall have provided evidence satisfactory to the Bank of the insurance  on the leased vehicle(s) as follows:  (A) fire, theft and comprehensive (or combined additional coverage for trucks), in an amount  not less than the actual cash/value;  (B) collision or upset in an amount not less than the actual cash value with a deductible  amount not exceeding $1,000 for automobiles and light trucks ($2,000 for vehicles  costing over $40,000); and  (C) public liability (property damage and bodily injury) for $1,000,000;  

 

28  LEGAL_36839831.10    (ix) the Bank shall have received and be satisfied evidence of contingent liability insurance for each  lessor under each lease in the minimum amount of $1,000,000; and  (x) the Applicable Borrower shall have conducted the appropriate Lien searches and the Bank shall  have received and be satisfied with evidence of personal property registrations in respect of the  lease against each lessee in all relevant jurisdictions.  Notwithstanding the above, the form of the lease agreement to be used for Eligible Daily Rental Leases is  subject to approval of the Bank. The Bank shall have the right, acting reasonably, in its sole discretion, to  exclude any motor vehicle lease from the Wholesale Leasing Borrowing Base.    “Finance Contract” means a conditional sales contract for the purchase and sale of a vehicle pursuant to  which all the rights to and risks of ownership of such vehicle have been transferred to the purchaser of  such vehicle and the purchaser agrees to pay to a Borrower over a period of time, the loan amount advanced  for such vehicle being the purchase price of such vehicle plus interest and/or other fees. For certainty, the  applicable Borrower shall record interest income for Finance Contracts over the term of the contract as  loan payments are received by the applicable Borrower from the purchaser.    “Fiscal Quarter” means each fiscal quarter of the Borrowers, currently ending on March 31, June 30,  September 30 and December 31.  “Fixed Charge Coverage Ratio” means, on the last day of any Fiscal Quarter for Master Borrower  calculated on a consolidated basis, the ratio of (a) EBITDAR for the Rolling Period ended on that date  minus the aggregate of (i) an allowance for maintenance capital expenditures in an amount equal to  $85,000 for each dealership location of the Borrowers, (ii) all Income Tax Expense paid in cash during  such Rolling Period and (iii) all dividends, capital withdrawals, intercompany loans made to Affiliates  (not including other Borrowers), payments in respect of purchase, redemption or return of capital or  reduction in shareholder loans made by Master Borrower during such Rolling Period, net of any  capitalization requirements of a manufacturer for a Borrower that are no longer required by such  manufacturer, to (b) Fixed Charges over the same Rolling Period.  “Fixed Charges” means for any period, for Master Borrower calculated on a consolidated basis, the sum  of (a) the cash Interest Expense for such period,(b) the scheduled principal payments of Debt during such  period reduced by prepayments as permitted by the Loan Documents and (c) rental or lease expense.  Notwithstanding the foregoing, with respect to Debt related to any Permitted Acquisition, Fixed Charges  shall include the Fixed Charges of the Person being acquired or whose assets are being acquired, as if such  acquisition was made at the beginning of the 12-month period prior to such Permitted Acquisition.  “Funded Debt” means, at any time, for any Borrower, all obligations for borrowed money which bears  interest or to which interest is imputed, plus all obligations for the deferred payment of the purchase price  of property, all capital lease obligations, all indebtedness secured by purchase money security interests,  and the amount of any secured guarantees of Funded Debt of a third party.  “GAAP” means generally accepted accounting principles which are in effect from time to time in the  United States of America.   “General Partners” means, collectively, Lithia Master GP Company, Inc., Autoworks Markham GP, Inc.,  Autoworks Woodbridge GP, Inc., Canada-MC GP, Inc., Guelph-S GP, Inc., Lithia Canada Leasing GP,  Inc., Markham-B GP, Inc., Markham-P GP, Inc., Mississauga-B GP, Inc., Motus Car Rental GP, Inc.,  Newmarket-A GP, Inc., Newmarket-V GP, Inc., Vancouver-MP GP, Inc., Vaughan-A GP, Inc., Vaughan- P GP, Inc., Vaughan-S GP, Inc., Woodbridge-MC GP, Inc. and Woodbridge-PA GP, Inc. and such other  Persons who may from time to time be “General Partners” hereunder, and each of their respective  successors and assigns.  “Government Approvals” means all licences, permits, consents, authorizations and approvals from any  and all Governmental Authorities required by Applicable Law for the conduct of a Borrower’s business  as presently conducted.  

 

29  LEGAL_36839831.10  “Governmental Authority” means the government of Canada or any other nation, or of any political  subdivision thereof, whether state, provincial or local, and any agency, authority, instrumentality,  regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing,  regulatory or administrative powers or functions of or pertaining to government, including any supra- national bodies such as the European Union or the European Central Bank and including a Minister of the  Crown, Superintendent of Financial Institutions or other comparable authority or agency.  “Heavy Duty Truck” means a heavy-duty truck having a minimum gross vehicle weight exceeding  26,000 lbs.  “Hedging” means any transaction or combination of transactions, including any related agreement, of a  type commonly considered to be a derivative or hedging transaction, whether relating to one or more of  interest rates, currencies, commodities, securities or any other matters, including (a) any cap, collar, floor  or option, (b) any forward contract, and (c) any rate swap, basis swap, commodity swap, cross currency  swap or other swap or contract for differences.  “Hedging Agreement” means any agreement evidencing Hedging arrangements entered into by the  Obligors with the Bank or such other hedge provider.    “Income Tax Expense” means, for any period, the aggregate of all taxes on the income of Master  Borrower on a consolidated basis for such period, whether current or deferred (net of any tax credits which  are applied against any income tax otherwise payable).  “Interest Expense” means in respect of any fiscal period, the cost to the Master Borrower on a  consolidated basis for such period of advances of credit outstanding during that period including interest  charges, capitalized interest, the interest component of capital leases, fees payable in respect of letters of  credit and letters of guarantee and discounts incurred and fees payable in respect of bankers’ acceptances  and all net amounts charged or credited to interest expense in respect of interest rate Hedging Agreements,  all computed in accordance with GAAP.  “Interest Payment Date” means, with respect to Credit 02, the second Business Day of a calendar month.   “Investment” means, for any Person, the acquisition (whether for cash, property, services, securities or  otherwise) of shares, bonds, notes, debentures, partnership or other ownership interests or other securities  (where securities has the meaning assigned in the Securities Act (Ontario)) of any other Person or any  agreement to make that acquisition.  “Kitchener” means Kitchener-MB, LP, by its general partner Kitchener-MB GP, Inc., and its successors  and permitted assigns.  “Kitchener Acquisition” means the Acquisition by Master Borrower (or a Subsidiary thereof, including  Kitchener) of the Mercedes Benz assets from Pfaff Automotive Partners Inc. (or an Affiliate thereof).  “Lease Adjusted Funded Debt” means, at any time, for Master Borrower on a consolidated basis and  without duplication, all Funded Debt plus six times rental or lease expense.   “Lease Agreement” means in respect of a particular Credit, the Lease Agreement as defined herein under  that Credit.  “Leased Unit” means New Leased Units and Used Leased Units.  “Letter of Credit” means a letter of credit issued by Bank at the request and for the account of any  Borrower under this Commitment Letter.  

 

30  LEGAL_36839831.10  “Leverage Ratio” means with respect to the Master Borrower and with respect to any Rolling Period, the  ratio of Lease Adjusted Funded Debt to EBITDAR.  “Lien” means: (a) a lien, charge, hypothec, mortgage, pledge, security interest, priority, conditional sale  agreement or other title retention arrangements; (b) an assignment, lease, consignment, trust or deemed  trust that secures payment or performance of an obligation; (c) a garnishment; (d) a defect of title; and (e)  any other lien of any kind.  “Light Duty Truck” means light-duty trucks having a maximum gross vehicle weight of 10,000 lbs.  “Loan Documents” means this Commitment Letter, the Security, the agreements re operating credit line,  the B/A Agreement and B/A Execution and Issuance Agreement, the Lease Agreements, application and  agreement for irrevocable standby letter of credit, visa cardholder agreements, any Cash Management  Agreements or Hedging Agreements with the Bank, and all other documents, instruments contemplated  therein or herein, as the same may be amended, restated, replaced or superseded from time to time.   “Manufacturer Flooring Facilities” means:  (i) upon completion of the Kitchener Acquisition, the wholesale flooring facility pursuant to a facility  agreement to be made between Mercedes-Benz Financial Services Canada Corporation and  Kitchener; and  (ii) upon completion of the Richmond Acquisition, the wholesale flooring facility agreement pursuant  to a facility agreement to be made between Harley-Davidson Financial Services Canada, Inc. and  Richmond.   “Material Adverse Change” means any event, circumstance, occurrence or change which results in, or  which would reasonably be expected to result in, a material adverse change in (a) the financial condition  of the Obligors on a combined basis and taken as a whole (b) the ability of the Obligors to observe or  perform their obligations under the Loan Documents to which it is a party or the validity or enforceability  of such Loan Documents or any material provision thereof; (c) the property, business, operations,  liabilities or capitalization of the Obligors on a combined basis and taken as a whole; or (d) the Security,  the priority thereof or any right or remedy of the Bank thereunder.  “Material Adverse Effect” means any event, circumstance, occurrence or change which results in, or  which would reasonably be expected to result in, a Material Adverse Change.  “Material Breach” means the breach by any Obligor of any (i) representation or warranty, positive  covenant, negative covenant, financial covenant or reporting requirement, or (ii) other material term,  covenant or condition, in each case contained in any Loan Document.  “Medium Duty Truck” means a medium-duty truck having a gross vehicle weight between 10,001 lbs.  and 26,000 lbs.  “Mirror Netting Participant” means each Borrower with up-to-date mirror netting or zero balance  accounts established with the Bank pursuant to a mirror netting services agreement with the Bank which  provides for the Credit 01 Borrower to maintain the concentration account in respect thereof.   “New Leased Unit” means a passenger car, Light Duty Truck, motorcycle or boat from car, motorcycle  or boat manufacturers, as applicable, approved by the Bank, from the current and preceding one model  year and with an odometer reading of 24,000 kilometres or less per model year, for domestic lease by the  Applicable Borrower as lessor to third party lessees.   “New Motor Vehicles” means new passenger cars and Light Duty Trucks as well as CAP vehicles and  Program Vehicles supplied to the Borrowers by manufacturers acceptable to the Bank from the current  and preceding one model year with an odometer reading of 24,000 km or less per model year, for domestic  sale by the Borrowers.    

 

31  LEGAL_36839831.10   “Non-Designated Subsidiary” means each Subsidiary, direct or indirect, of a Borrower that is not a  Designated Subsidiary or otherwise an Obligor hereunder.   “Obligations” means all debt, liabilities and obligations of the Borrowers to the Bank under or in  connection with this Commitment Letter and the other Loan Documents, including but not limited to all  debts and liabilities, present or future, direct or indirect, absolute or contingent, matured or not, at any  time owing by the Borrowers to the Bank in any currency or remaining unpaid by the Borrowers to the  Bank in any currency under or in connection with this Commitment Letter, whether arising from dealings  between the Bank and the Borrowers or from any other dealings or proceedings by which the Bank may  be or become in any manner whatever a creditor of the Borrowers under or in connection with this  Commitment Letter and the other Loan Documents, and wherever incurred, and whether incurred by the  Borrowers alone or with another or others and whether as principal or surety, all present and all interest,  fees, legal and other costs, charges, expenses and indemnities.  “Obligors” means collectively the Borrowers and the General Partners and “Obligor” means any one of  them as the context requires.   “Permitted Acquisitions” means:  (a) the Kitchener Acquisition and the Richmond Acquisition;  (b) an Acquisition by an Obligor of any Non-Designated Subsidiary, and  (c) an Acquisition by an Obligor of any Designated Subsidiary which satisfies the following  requirements:  (i) the Obligor shall give the Bank prior written notice of the proposed Acquisition at least 15  days prior to the closing date of such Acquisition;  (ii) the Acquisition shall be for not less than 51% of the interests in the acquired assets (including  goodwill, assets, and real property) or the equity interests;  (iii) the board of directors (or other Persons exercising similar functions) of the seller have not  disapproved the transaction or recommended that such transaction be disapproved;  (iv) each new Obligor shall comply with the requirements in paragraph (k) under the heading  “Positive Covenants”;  (v) all representations and warranties in this Commitment Letter shall be true and correct in all  material respects as of the date of any Acquisition and no Material Breach shall have occurred  and be continuing or will exist after giving effect to the Acquisition;   (vi) the Bank shall have received copies of the purchase agreement and lease, if any, relating to  that Acquisition;  (vii) the Designated Subsidiary and the assets being acquired must be located in Canada;  (viii) the Bank shall have conducted such audits of any assets being acquired or which is owned by  any new Obligor as is desired by the Bank, the results of which shall be satisfactory to the  Bank;  (ix) the Borrowers and/or any new Obligor shall have received approval of all material agreements  between any new Obligor and any manufacturer or distributor of New Vehicles, or which the  new Obligor will act as a dealer as may be necessary for the new Obligor to conduct its  intended business following the Acquisition;  (x) all insurance required under paragraph (f) under the heading “Positive Covenants” shall have  been obtained and the Bank shall have received evidence thereof in the form of a certificate  of insurance;  

 

32  LEGAL_36839831.10  (xi) the Master Borrower has delivered to the Bank a Compliance Certificate, demonstrating that  the Master Borrower would have been in compliance with the requirements under the heading  “Financial Covenants” if the Acquisition had occurred on the first day of the period covered  by the Compliance Certificate (using Master Borrower’s historical methods of calculation for  purposes of the target to be acquired); and  (xii) the Bank has received such additional documents, approvals, consents and information and  each Obligor has satisfied such additional requirements as the Bank reasonably requests.  “Permitted Debt” means:  (i) the Obligations;  (ii) short-term unsecured trade obligations incurred in the ordinary course of business which are  outstanding not more than 90 days after the original date on which such trade obligations were  created;  (iii) the Manufacturing Flooring Facilities;  (iv) Funded Debt in respect of Hedging Agreements entered into in the ordinary course of business  for non-speculative purposes;  (v) unsecured Funded Debt of a Borrower to any other Borrower;  (vi) Funded Debt consisting of capital leases and purchase money indebtedness incurred to acquire  equipment which is secured only by the equipment acquired and proceeds therefrom and such  equipment secures only the obligation to pay the purchase price;  (vii) Funded Debt consisting of leases entered into with a manufacturer with respect to vehicles used  by a Borrower for service loaners, subscription services or otherwise leased to its customers;  (viii) Funded Debt appearing as a claims reserve (or similar term) on the balance sheet of an Obligor,  which represents amounts which have been received but which will be expended to pay warranty  and service claims by customers of the Obligors;  (ix) Funded Debt incurred under the promissory notes in connection with the Reverse Earn-Out  Agreement (as defined in the Asset Purchase Agreement) and such other Funded Debt incurred in  connection with reverse earn-outs granted pursuant to Permitted Acquisitions, provided that such  Funded Debt is subject to a postponement and subordination agreement made between the Bank  and the applicable vendor in form and substance satisfactory to the Bank, acting reasonably;  (x) Funded Debt incurred with respect to Securitization Programs;  (xi) Funded Debt owed by a Borrower to a General Partner or another Affiliate (other than another  Borrower), provided that such Funded Debt is subject to a postponement and subordination  agreement made between the Bank and such Affiliate in form and substance satisfactory to the  Bank, acting reasonably;  (xii) Funded Debt that is only secured by owned real property of an Obligor, provided that such owned  real property is not Real Estate Collateral; and  (xiii) additional unsecured Funded Debt, provided that, after giving pro forma effect to the incurrence  of such additional unsecured Funded Debt, the Master Borrower would have been in compliance  with the “Financial Covenants” as of such day.   “Permitted Investments” means:  (i) Investments by an Obligor in another Obligor;  (ii) Cash Equivalent Investments;  

 

33  LEGAL_36839831.10  (iii) Investments pursuant to a Permitted Acquisition;  (iv) Investments by an Obligor in a Non-Designated Subsidiary;  (v) Investments not otherwise permitted in this definition provided that the aggregate amount of such  Investments does not exceed Cdn$10,000,000 in any Fiscal Year; and  (vi) such other Investments as are consented to by the Bank in writing in its sole discretion,  provided that the making of any such Permitted Investment shall not cause a Material Beach to occur and  be continuing.   “Permitted Liens” means:  (i) Liens in favor of the Bank which secure the Obligations;  (ii) Liens for taxes, assessments or other government charges or levies not yet due and payable or, if  due and payable, if they are being contested in good faith by appropriate proceedings and for  which appropriate reserves are maintained;  (iii) Liens imposed by law, such as mechanics’, materialmen’s, landlords’, warehousemen’s, and  carriers’ Liens, and other similar Liens, securing obligations incurred in the ordinary course of  business which are not past due for more than 30 days or which are being contested in good faith  by appropriate proceedings and for which appropriate reserves have been established;  (iv) Liens under workers’ compensation, unemployment insurance, or similar legislation which are  not past due for more than sixty (60) days or which are being contested in good faith by appropriate  proceedings and for which appropriate reserves have been established;  (v) Liens, deposits, or pledges to secure the performance of bids, tenders, contracts (other than  contracts for the payment of money), leases (permitted under the terms of this Commitment  Letter), public or statutory obligations, surety, stay, appeal, indemnity, performance or other  similar bonds, or other similar obligations arising in the ordinary course of business which are not  past due for more than 30 days or which are being contested in good faith by appropriate  proceedings and for which appropriate reserves have been established;  (vi) judgment and other similar Liens arising in connection with court proceedings, in an aggregate  amount not in excess of Cdn$6,000,000; provided the execution or other enforcement of such  Liens is effectively stayed and the claims secured thereby are being actively contested in good  faith and by appropriate proceedings, and the existence thereof does not constitute a Material  Breach hereunder;  (vii) easements, rights-of-way, zoning restrictions, and other similar encumbrances in existence on the  date of this Commitment Letter or which, in the aggregate, do not materially interfere with the  occupation, use, and enjoyment by any Obligor of the property or assets encumbered thereby in  the normal course of its business or materially impair the value of the property subject thereto;  (viii) purchase money Liens hereafter created by any Obligor to secure the purchase price of equipment  acquired after the date hereof, so long as (i) such equipment is acquired in the ordinary course of  such Person’s business, (ii) such Lien attaches to such equipment no later than 10 days after the  acquisition thereof; (iii) such Lien does not extend to any property other than the equipment  acquired, (iv) such Lien secures only the obligation to pay the purchase price of such equipment,  and (v) the Debt secured is Permitted Debt;  (ix) Liens securing the Manufacturing Flooring Facilities;  (x) Liens securing obligations in respect of capital leases provided that such capital leases are  otherwise permitted under this Commitment Letter, and such Liens attach only to the property  being leased;  

 

34  LEGAL_36839831.10  (xi) Liens arising solely by virtue of any statutory or common law provision relating to banker’s liens,  rights of setoff or similar rights and remedies as to deposit accounts or other funds maintained  with a creditor depository institution (provided that such deposit accounts are permitted) and, if  such deposit accounts are with another financial institution, such liens are subordinated to the  Liens in favor of the Bank under the Security;  (xii) Liens consented to in writing by the Bank;   (xiii) Liens (including, without limitation, certain rights of set-off and title retention agreements) in  favor of a manufacturer attaching to a vehicle sold or leased to an Obligor by such manufacturer  and securing amounts owing in connection with the purchase or lease of such vehicle by such  Obligor from such manufacturer, so long as such Liens do not secure Funded Debt (other than  Permitted Debt) and such Liens arise in the ordinary course of business consistent with the  Borrowers’ existing business practices, and Liens consisting of purchase options and rights of first  refusal arising under any agreement;  (xiv) Liens in favour of Lithia Canada Leasing, LP attaching to a vehicle sold or leased by Lithia Canada  Leasing, LP to another Borrower;     (xv) Liens securing Securitization Programs; and  (xvi) Liens granted with respect to owned real property of an Obligor, provided that such owned real  property is not Real Estate Collateral.  “Person” means any natural person, corporation, limited liability company, trust, joint venture,  association, company, partnership, Governmental Authority or other entity.  “Pension Plan” means any pension, retirement or supplemental retirement benefit plans, arrangements or  agreements, including any defined benefit or defined contribution pension plans and any group registered  retirement savings plans, employee benefit plans and any other similar employee benefit plans,  arrangements or agreements, whether oral or written, formal or informal, funded or unfunded, that are, in  each case, sponsored, contributed to by or maintained by any Borrower, any subsidiary of the Borrower  or any other Obligor providing for retirement income for the benefit of any such party’s employees, former  employees dependents or beneficiaries of either of them, whether or not insured.  “Prepayment Amount” means the principal amount being prepaid in respect of an Advance under this  Commitment Letter.  “Prepayment Period” means the period commencing on, and including, the date on which the  Prepayment Amount is paid to the Bank to, but excluding, the scheduled repayment date of the relevant  Advance.  “Prime Lending Rate” means the variable annual rate of interest as declared by the Bank from time to  time to be its prime rate for Canadian dollar loans made by the Bank in Canada. The Bank may change its  Prime Lending Rate from time to time without notice to the Borrowers.   “Prime Rate Advance” means an Advance bearing interest based on the Prime Lending Rate.  “Program Vehicle” means vehicles with special option packages produced for sale to major daily rental  fleets. Under their fleet incentive programs, the manufacturer agrees to repurchase vehicles from the daily  rental company after a specified time period at a predetermined price.  “Real Estate Collateral” means all owned real property of a Borrower subject to a first priority Lien  (subject to Permitted Liens) by way of a fixed charge mortgage in favour of the Bank.  “Real Estate Value” means the appraised value of individual real estate properties.   “Revolving Credit Facility Borrowing Base Certificate” means a certificate of the Master Borrower in  a form acceptable to the Bank on which Master Borrower has set forth the calculation of the Revolving  Credit Facility Borrowing Base as of the date of the certificate.   

 

35  LEGAL_36839831.10  “Richmond” means Richmond Hill-H, LP, by its general partner Richmond Hill-H GP, Inc., and its  successors and permitted assigns.   “Richmond Acquisition” means the Acquisition by Master Borrower (or a Subsidiary thereof, including  Richmond) of the Harley Davidson assets from Pfaff Automotive Partners Inc. (or an Affiliate thereof).  “Rolling Period” means a rolling four Fiscal Quarter period.  “Securitization Programs” means the Sun Life Securitization Program and any other transaction  whereby a Borrower may sell, transfer and/or assign to a third party certain leases and personal property  related thereto, and the proceeds of which are repaid to the Bank pursuant to Credit 03.  “Security” means, collectively, all security agreements, mortgages, pledge agreements, assignments and  other security agreements executed and delivered, or required to be executed and delivered, by the  Obligors and any other documents, instruments or agreements held from time to time by the Bank, securing  or intended to secure payment and performance of the Obligations and any guarantee of the Obligations.  “Subsidiary” of a Person means (a) any corporation of which the Person and/or any one of its Affiliates  holds, directly or beneficially, other than by way of security only, securities to which are attached more  than 50% of the votes that may be cast to elect directors of such corporation, (b) any corporation of which  the Person and/or any one of its Affiliates has, through operation of law or otherwise, the ability to elect  or cause the election of a majority of the directors of such corporation and (c) any partnership, limited or  unlimited liability company or joint venture in which such Person and/or one or more Subsidiaries of such  Person shall have, directly or indirectly, more than 50% of the votes that may be cast to elect the governing  body of such entity.  “Sun Life” means Sun Life Assurance Company of Canada and its successors and assigns.  “Sun Life Securitization Program” means the securitization program made pursuant to that certain  master purchase and servicing agreement dated as of December 21, 2018, originally made between Sun  Life and Pfaff Motors Inc. and others, as assigned by Sun Life and assumed by Lithia Canada Leasing,  L.P. pursuant to an assignment and assumption agreement dated as of August 30, 2021, as amended,  supplemented, restated or replaced from time to time.  “Taxes” means all taxes, levies, imposts, stamp taxes, duties, deductions, withholdings and similar  impositions by any Governmental Authority payable, levied, collected, withheld or assessed as of the date  of this Commitment Letter or at any time in the future.  “Used Leased Unit” means a reconditioned a passenger car, Light Duty Truck, motorcycle or boat and  listed in the current Canadian Black Book (current plus up to eight previous model year units) for domestic  lease by the Applicable Borrower as lessor to third party lessees with:  (i) an odometer reading of 150,000 km or less (or in the case of boats, <> hours or less) if  purchased from a recognized auto auction; and  (ii) a Canadian Black Book Value or acquisition cost (net of HST) of at least $7,500.   “Used Motor Vehicles” means reconditioned used passenger cars and Light Duty Truck for domestic  sale listed in the current Canadian Black Book (current plus up to seven previous model year old units)  with an odometer reading of 150,000 km or less.   “US Dollars” and “USD$” mean the lawful money of the United States of America.   “Wholesale Leasing Borrowing Base Certificate” means a certificate of the Applicable Borrowers in a  form acceptable to the Bank on which such Applicable Borrowers have set forth the calculation of the  Wholesale Leasing Borrowing Base as of the date of the certificate.   “Wholesale Lease Management Report” means a report, in form and substance satisfactory to the Bank,  from the applicable Borrower summarizing such Borrower’s Eligible Wholesale Leases, Eligible Daily  

 

36  LEGAL_36839831.10  Rental Leases and Eligible Finance Contracts and, in connection with any requested Advance by the  applicable Borrower, which identifies all Eligible Wholesale Leases, Eligible Daily Rental Leases and  Eligible Finance Contracts, including, for each such Eligible Wholesale Lease, Eligible Daily Rental Lease  and Eligible Finance Contract, customer (account) name, unit description, VIN (serial) number, lease term,  finance rate, depreciated book value, residual value, net rent, depreciation amount, interest amount, and  lease type.

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