Document:

Amended and Restated Credit Agreement

 EXHIBIT 10.11 
  
 CONFORMED COPY 
  
 US$300,000,000 
  
 AMENDED AND RESTATED 
 CREDIT AGREEMENT 
  
 Dated as of October 16, 2000 
 as amended as of October 31, 2000, December 31, 2000, October 31, 2001, May 20, 2003 
 and December 17, 2003, and as amended and restated as of May 5, 2004 
  
 among 
  
 MEMEC GROUP LIMITED 
 as
Borrower 
  
 MEMEC GROUP
HOLDINGS LIMITED 
  
 MEMEC HOLDINGS LIMITED 
  
 BARCLAYS BANK PLC 
 and 
 JPMORGAN CHASE BANK 
 as Underwriters 
  
 BARCLAYS CAPITAL 
 the investment banking division of Barclays Bank PLC 
 and 
 J.P. MORGAN
PLC 
 as Mandated Lead Arrangers and Joint Bookrunners 
  
 THE LENDERS AND
ISSUERS PARTY HERETO 
  
 J.P. MORGAN EUROPE LIMITED 
 as Senior A Facility Agent 

 
 BARCLAYS BANK PLC 
 as Senior B Facility Agent 
  
 and 
  
 JPMORGAN CHASE BANK 
 as
Collateral Agent 
  
 WEIL,
GOTSHAL & MANGES 
  
 One South
Place    London    EC2M 2WG 
 Tel: +44 (0) 20 7903 1000    Fax: +44 (0) 20 7903
0990 
  
 www.weil.com 

 TABLE OF CONTENTS 
  

					
	 	 	 	  	Page

	 ARTICLE I        DEFINITIONS, INTERPRETATION AND ACCOUNTING TERMS
	  	2
			
	         Section 1.1.
	 	Defined Terms	  	2
			
	         Section 1.2.
	 	Computation of Time Periods	  	52
			
	         Section 1.3.
	 	Accounting Terms and Principles	  	52
			
	         Section 1.4.
	 	Certain Terms	  	52
		
	 ARTICLE II        THE FACILITY
	  	53
			
	         Section 2.1.
	 	The Commitments	  	53
			
	         Section 2.2.
	 	Borrowing Procedures	  	54
			
	         Section 2.3.
	 	[Intentionally Omitted]	  	58
			
	         Section 2.4.
	 	Letters of Credit.	  	58
			
	         Section 2.5.
	 	Ancillary Facility.	  	65
			
	         Section 2.6.
	 	Reduction and Termination of the Revolving Credit Commitments	  	66
			
	         Section 2.7.
	 	Repayment of Loans	  	66
			
	         Section 2.8.
	 	Evidence of Debt	  	67
			
	         Section 2.9.
	 	Optional Prepayments.	  	68
			
	         Section 2.10.
	 	Mandatory Prepayments.	  	69
			
	         Section 2.11.
	 	Interest.	  	73
			
	         Section 2.12.
	 	Continuation Option.	  	73
			
	         Section 2.13.
	 	Fees.	  	74
			
	         Section 2.14.
	 	Payments and Computations.	  	75
			
	         Section 2.15.
	 	Special Provisions Governing Loans.	  	78
			
	         Section 2.16.
	 	Capital Adequacy.	  	79
			
	         Section 2.17.
	 	Taxes.	  	80
			
	         Section 2.18.
	 	Substitution of Lenders.	  	82
			
	         Section 2.19.
	 	Ancillary Borrowers.	  	83
			
	         Section 2.20.
	 	Effect of European Monetary Union	  	85
		
	 ARTICLE III       CONDITIONS TO LOANS AND LETTERS OF CREDIT
	  	85
			
	         Section 3.1.
	 	Conditions Precedent to Loans and Letters of Credit on the Amendment Closing Date.	  	85
			
	         Section 3.2.
	 	Conditions Precedent to Each Loan and Letter of Credit.	  	90

  

 i 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page

	 ARTICLE IV      REPRESENTATIONS AND WARRANTIES
	  	92
			
	         Section 4.1.
	  	Corporate Existence; Compliance with Law	  	92
			
	         Section 4.2.
	  	Corporate Power; Authorization; Enforceable Obligations.	  	92
			
	         Section 4.3.
	  	Ownership of Memec Holdings; Subsidiaries.	  	93
			
	         Section 4.4.
	  	Financial Statements.	  	94
			
	         Section 4.5.
	  	Material Adverse Change.	  	95
			
	         Section 4.6.
	  	Solvency.	  	95
			
	         Section 4.7.
	  	Litigation.	  	96
			
	         Section 4.8.
	  	Taxes.	  	96
			
	         Section 4.9.
	  	Full Disclosure.	  	96
			
	         Section 4.10.
	  	Margin Regulations.	  	97
			
	         Section 4.11.
	  	No Burdensome Restrictions; No Defaults.	  	97
			
	         Section 4.12.
	  	Investment Company Act; Public Utility Holding Company Act.	  	97
			
	         Section 4.13.
	  	Use of Proceeds.	  	97
			
	         Section 4.14.
	  	Insurance.	  	98
			
	         Section 4.15.
	  	Labor Matters.	  	98
			
	         Section 4.16.
	  	ERISA.	  	98
			
	         Section 4.17.
	  	Environmental Matters.	  	99
			
	         Section 4.18.
	  	Intellectual Property.	  	100
			
	         Section 4.19.
	  	Title; Real Property.	  	100
			
	         Section 4.20.
	  	Related Documents.	  	100
			
	         Section 4.21.
	  	[Intentionally Omitted]	  	101
		
	 ARTICLE V      FINANCIAL COVENANTS
	  	101
			
	         Section 5.1.
	  	Maximum Leverage Ratio.	  	101
			
	         Section 5.2.
	  	Minimum Fixed Charge Coverage Ratio.	  	102
			
	         Section 5.3.
	  	Minimum Interest Coverage Ratio.	  	103
			
	         Section 5.4.
	  	Capital Expenditures.	  	104
		
	 ARTICLE VI      REPORTING COVENANTS
	  	104
			
	         Section 6.1.
	  	Financial Statements.	  	104
			
	         Section 6.2.
	  	Default Notices.	  	108

  

 ii 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page

	         Section 6.3.
	  	Litigation.	  	108
			
	         Section 6.4.
	  	Asset Sales.	  	109
			
	         Section 6.5.
	  	Notices under Related Documents.	  	109
			
	         Section 6.6.
	  	SEC Filings; Press Releases.	  	109
			
	         Section 6.7.
	  	Labor Relations.	  	109
			
	         Section 6.8.
	  	Insurance.	  	109
			
	         Section 6.9.
	  	ERISA Matters.	  	109
			
	         Section 6.10.
	  	Environmental Matters.	  	110
			
	         Section 6.11.
	  	Borrowing Base Determination.	  	110
			
	         Section 6.12.
	  	Other Information.	  	111
		
	 ARTICLE VII      AFFIRMATIVE COVENANTS
	  	111
			
	         Section 7.1.
	  	Preservation of Corporate Existence, Etc.	  	111
			
	         Section 7.2.
	  	Compliance with Laws, Etc.	  	112
			
	         Section 7.3.
	  	Conduct of Business.	  	112
			
	         Section 7.4.
	  	Payment of Taxes, Etc.	  	112
			
	         Section 7.5.
	  	Maintenance of Insurance.	  	112
			
	         Section 7.6.
	  	Access.	  	112
			
	         Section 7.7.
	  	Keeping of Books.	  	113
			
	         Section 7.8.
	  	Maintenance of Properties, Etc.	  	113
			
	         Section 7.9.
	  	Application of Proceeds.	  	113
			
	         Section 7.10.
	  	Environmental.	  	113
			
	         Section 7.11.
	  	Additional Collateral and Guaranties.	  	113
			
	         Section 7.12.
	  	Interest Rate Contracts.	  	117
			
	         Section 7.13.
	  	Landlord Lien and Bailee Waivers.	  	117
			
	         Section 7.14.
	  	Real Property.	  	117
			
	         Section 7.15.
	  	Account Debtors.	  	118
			
	         Section 7.16.
	  	Related Documents.	  	118
			
	         Section 7.17.
	  	[Intentionally Omitted]	  	118
			
	         Section 7.18.
	  	Syndication of the Facilities.	  	118
			
	         Section 7.19.
	  	Cash Management.	  	119
			
	         Section 7.20.
	  	Initial Public Offering Retained Proceeds.	  	119

  

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 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page

	         Section 7.21.
	  	Disaster Recovery.	  	119
			
	         Section 7.22.
	  	Unlawful Financial Assistance	  	120
		
	 ARTICLE VIII      NEGATIVE COVENANTS
	  	120
			
	         Section 8.1.
	  	Indebtedness.	  	120
			
	         Section 8.2.
	  	Liens, Etc.	  	123
			
	         Section 8.3.
	  	Investments.	  	123
			
	         Section 8.4.
	  	Sale of Assets.	  	124
			
	         Section 8.5.
	  	Restricted Payments.	  	126
			
	         Section 8.6.
	  	Restriction on Fundamental Changes; Permitted Acquisitions.	  	126
			
	         Section 8.7.
	  	Change in Nature of Business.	  	126
			
	         Section 8.8.
	  	Transactions with Affiliates.	  	126
			
	         Section 8.9.
	  	Restrictions on Subsidiary Distributions; No New Negative Pledge.	  	127
			
	         Section 8.10.
	  	Modification of Documents.	  	127
			
	         Section 8.11.
	  	Modification of Related Documents.	  	127
			
	         Section 8.12.
	  	Modification of Shareholder Subordinated Debt Agreements.	  	128
			
	         Section 8.13.
	  	Accounting Changes; Fiscal Year.	  	128
			
	         Section 8.14.
	  	Margin Regulations.	  	128
			
	         Section 8.15.
	  	Operating Leases; Sale/Leasebacks.	  	128
			
	         Section 8.16.
	  	Cancellation of Indebtedness Owed to It.	  	128
			
	         Section 8.17.
	  	No Speculative Transactions.	  	129
			
	         Section 8.18.
	  	Compliance with ERISA.	  	129
			
	         Section 8.19.
	  	Environmental.	  	129
			
	         Section 8.20.
	  	Cash Management Procedures.	  	129
			
	         Section 8.21.
	  	Holding Company Status.	  	129
		
	 ARTICLE IX      EVENTS OF DEFAULT
	  	129
			
	         Section 9.1.
	  	Events of Default.	  	132
			
	         Section 9.2.
	  	Remedies.	  	133
			
	         Section 9.3.
	  	Actions in Respect of Letters of Credit and Ancillary Facilities.	  	133
			
	         Section 9.4.
	  	Rescission.	  	133

  

 iv 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page

	 ARTICLE X      THE FACILITY AGENTS; THE AGENTS
	  	133
			
	         Section 10.1.
	  	Authorization and Action.	  	133
			
	         Section 10.2.
	  	Facility Agents, Reliance, Etc.	  	135
			
	         Section 10.3.
	  	Each Facility Agent Individually.	  	135
			
	         Section 10.4.
	  	Lender Credit Decision.	  	135
			
	         Section 10.5.
	  	Indemnification.	  	136
			
	         Section 10.6.
	  	Successor Facility Agents.	  	136
			
	         Section 10.7.
	  	Concerning the Collateral and the Collateral Documents.	  	137
			
	         Section 10.8.
	  	Collateral Matters Relating to Related Obligations.	  	138
			
	         Section 10.9.
	  	Income and Corporation Taxes Act 1988.	  	139
			
	         Section 10.10.
	  	Joint and Several Creditorship.	  	139
			
	         Section 10.11.
	  	Covenant to Pay.	  	139
			
	         Section 10.12.
	  	Concerning Alternative Currencies.	  	140
		
	 ARTICLE XI      MISCELLANEOUS
	  	140
			
	         Section 11.1.
	  	Amendments, Waivers, Etc.	  	140
			
	         Section 11.2.
	  	Assignments, Participations, Additional Borrowers and Additional Loan Parties.	  	141
			
	         Section 11.3.
	  	Costs and Expenses.	  	144
			
	         Section 11.4.
	  	Indemnities.	  	145
			
	         Section 11.5.
	  	Limitation of Liability	  	147
			
	         Section 11.6.
	  	Right of Set-off.	  	147
			
	         Section 11.7.
	  	Sharing of Payments, Etc.	  	147
			
	         Section 11.8.
	  	Notices, Etc.	  	148
			
	         Section 11.9.
	  	No Waiver; Remedies.	  	149
			
	         Section 11.10.
	  	Binding Effect.	  	149
			
	         Section 11.11.
	  	Governing Law.	  	150
			
	         Section 11.12.
	  	Submission to Jurisdiction; Service of Process.	  	150
			
	         Section 11.13.
	  	Waiver of Jury Trial.	  	151
			
	         Section 11.14.
	  	Marshaling; Payments Set Aside.	  	151
			
	         Section 11.15.
	  	Section Titles.	  	151
			
	         Section 11.16.
	  	Execution in Counterparts.	  	151

  

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	 	  	 	  	Page

	         Section 11.17.
	  	Entire Agreement.	  	151
			
	         Section 11.18.
	  	Confidentiality.	  	151
			
	         Section 11.19.
	  	Loss Sharing.	  	152

  

 vi 

 AMENDED AND RESTATED CREDIT
AGREEMENT, dated as of October 16, 2000 (the “Original Closing Date”), as amended as of October 31, 2000, December 31, 2000, October 31, 2001, May 20, 2003 and December 17, 2003 and as
amended and restated as of May 5, 2004, among MEMEC GROUP LIMITED (formerly known as Choirgrange Limited), a company organized under the laws of England and Wales with registration number 3985622
(“Memec Limited”), as the borrower (together with any Additional Borrowers, the “Borrowers” and each, individually, a “Borrower”), MEMEC GROUP
HOLDINGS LIMITED (formerly known as Cherrybright Limited), a company organized under the laws of England and Wales with registration number 3985629 (“Memec Group Holdings”), MEMEC
HOLDINGS LIMITED (formerly known as Spiretrail Limited), a company organized under the laws of England and Wales with registration number 3936258 (“Memec Holdings”), and the indirect parent of
Memec and the direct parent of Memec Limited, the Lenders (as defined below), the Issuers (as defined below), J.P. MORGAN EUROPE LIMITED (“JPMorgan”), as Senior A Facility Agent
for the Lenders (other than the Term B Loan Lenders) and the Issuers (in such capacity, the “Senior A Facility Agent”), BARCLAYS CAPITAL (“Barclays Capital”), the
investment banking division of Barclays Bank PLC (“Barclays”), as syndication agent for the Lenders and Issuers (in such capacity, the “Syndication Agent”), Barclays as Senior Facility B Agent for the
Term B Loan Lenders (in such capacity, the “Senior B Facility Agent”) and JPMORGAN CHASE BANK, as collateral agent for the Lenders and the Issuers (in such capacity, the
“Collateral Agent”). 
  
 W I T N E S S E T H: 
  
 WHEREAS, pursuant to that certain Share Purchase Agreement dated as of the Original Closing Date (the “Acquisition Agreement”), among, inter alios, VEBA Electronics GmbH,
EBV Verwaltungs GmbH and VEBA Corporation, as the sellers (the “Sellers”), and the Acquisition Entities (as defined below), as purchasers, the Acquisition Entities agreed to purchase from the Sellers all of the issued and
outstanding Stock of the Group (the “Acquisition”); and 
  
 WHEREAS, MEMEC US HOLDINGS, INC. (formerly known as EAS Holdings, Inc.), a corporation organized under the laws of the State of Delaware
(“US Holdco”), Memec Limited (and together with Memec LLC, a limited liability company organized under the laws of Delaware, the “Original Borrowers”), Memec Holdings, the lenders and issuers party
thereto (the “Original Lenders”), The Chase Manhattan Bank (now known as JPMorgan Chase Bank) (“Chase”) as administrative agent, and Barclays Capital as syndication agent were parties to that certain
Credit Agreement dated as of August 7, 2000 (the “Original Credit Agreement”); and 
  
 WHEREAS, Memec Holdings, Memec, the lenders and issuers party thereto (“Existing Lenders”),
Chase, as administrative agent and collateral agent and Barclays Capital, as syndication agent were parties to that certain Amended and Restated Credit Agreement dated as of the Original Closing Date (the “Existing Credit
Agreement”); and 
  
 WHEREAS, contemporaneously with the execution and delivery of the Existing Credit Agreement, (a) the Original Lenders assigned all of their 

 Commitments under the Original Credit Agreement to the Existing Lenders, (b) $39,200,000 was contributed to Memec Group
Holdings by its shareholders, (c) $200,000,000 in gross proceeds of the Consortium Loans was paid to Memec Holdings by the Consortium Lenders, (d) $320,000,000 in gross proceeds of the issuance of the Investor Discount Bonds was paid to Memec
Holdings by the Discount Bondholders, (e) $175,000,000 in gross proceeds of the Receivables Purchase Facility was paid to Triangle Funding by the lenders thereunder, and (f) approximately $671,000,000 was paid by the Group to the Sellers pursuant to
the Acquisition Agreement and the Acquisition closed; and 
  
 WHEREAS, the Borrowers and the Existing Lenders desire to amend certain terms of the Existing Credit Agreement, among other things, to (a) revise the commitments of certain of the facilities, (b) to
resign certain members and add certain other members of the Group as borrowers and (c) to make certain changes to the covenants and other provisions contained therein; and 
  
 WHEREAS, the Borrowers, the Existing Lenders and the Facility Agents (as hereinafter
defined) have agreed to amend and restate the Existing Credit Agreement in its entirety to provide for such amendments on the terms set forth in this Agreement, which Agreement shall become effective upon the satisfaction of certain conditions
precedent set forth herein; and 
  
 WHEREAS, it is the intent of the parties hereto that this Agreement amend and restate in its entirety the Existing Credit Agreement, and that from and after the Amendment Closing Date (as defined below)
the Existing Credit Agreement be of no further force or effect except as to evidence the incurrence of the Obligations thereunder and the representations and warranties made thereunder. 
  
 NOW, THEREFORE, in consideration of the premises and the covenants and
agreements contained herein, the parties hereto hereby agree as follows: 
  
 ARTICLE I 
  
 DEFINITIONS, INTERPRETATION AND
ACCOUNTING TERMS 
  
 Section 1.1. Defined
Terms. As used in this Agreement, the following terms have the following meanings (such meanings to be equally applicable to both the singular and plural forms of the terms defined): 
  
 “Accession Agreement” means an agreement
substantially in the form of Exhibit I, with such amendments as the Facility Agents may approve or reasonably require. 
  
 “Account” has the meaning specified in the Borrower Security Agreement. 
  
 “Account Debtor” has the meaning specified in the
Borrower Security Agreement. 
  

 2 

 “Acquisition” has the meaning specified in the first recital. 
  
 “Acquisition Agreement” has the meaning specified in
the first recital. 
  
 “Acquisition
Entities” means each of Memec Holdings, Memec Limited, Overseas Holdco and Memec LLC. 
  
 “Additional Borrower” means a company which becomes an Additional Borrower in accordance with Section 11.2(i). 
  
 “Additional Loan Party” means a company which
becomes an Additional Loan Party in accordance with Section 11.2(j). 
  
 “Administrative Agent” means Chase, in its capacity as administrative agent under the Original Credit Agreement and the Existing Credit Agreement. 
  
 “Advance Rate” means (a) 65.0% in the case of Eligible Inventory and (b) in the case of Eligible
Receivables, the applicable Effective Advance Rate for each country pursuant to the most recent Receivables Availability Certificate, which will be calculated on a semi-annual basis, the first such calculation to be provided as of August 31, 2004;
provided, however that the receivables availability calculation in each Receivables Availability Certificate, will be calculated on a monthly basis in the event that (i) the portion of the Borrowing Base attributable to receivables comprises
greater than 50% of the total Borrowing Base and (ii) Combined Facility Utilization is greater than 85%. Adjustments to advance rates may be determined by the Collateral Agent, in its reasonable discretion, and in consultation with the Borrowers,
which adjustments (if any) may result from but are not limited to (i) results of collateral reviews with respect to Accounts and Inventory to be performed from time to time by the Collateral Agent and (ii) in the case of Inventory, results from
independent Inventory appraisals which may be performed at the Collateral Agent’s discretion, in the event that (A) Inventory turnover calculated for the most recent twelve month period and in accordance with the Borrower’s historical
accounting practices is greater than 90 days or (B) Combined Facility Utilization is greater than 85%. 
  
 “Affected Eurocurrency Rate Loans” has the meaning specified in Section 2.10(j). 
  
 “Affected Lender” has the meaning specified in
Section 2.18. 
  
 “Affiliate” means, with
respect to any Person, any other Person which, directly or indirectly, controls, is controlled by or is under common control with such Person, each officer, director or general partner of such Person, and each Person who is the beneficial owner of
5% or more of any class of Voting Stock of such Person. For the purposes of this definition, “control” means the possession of the power to direct or cause the direction of management and policies of such Person, whether
through the ownership of voting securities, by contract or otherwise. 
  
 “Agreement” means this Amended and Restated Credit Agreement. 
  

 3 

 “Alternative Currency” means (i) the lawful currency of the United Kingdom, (ii)
Euros and, in the case of the Lenders party hereto at the date hereof and any Lender which has delivered an Alternative Currency Election for the relevant currency, (iii) the lawful currency of Japan and (iv) the lawful currency of Sweden.

  
 “Alternative Currency Commitment”
means, as to any Alternative Currency Lender, such Lender’s commitment to make a portion of its Revolving Credit Commitment available to the Borrowers as Alternative Credit Loans. The maximum Alternative Commitment of each Alternative Currency
Lender is set forth opposite such Lender’s name on Schedule I under the caption “Alternative Currency Commitment for Revolving Loans,” as amended to reflect each Assignment and Acceptance executed by such Alternative
Currency Lender and as such amount may be otherwise revised pursuant to this Agreement. 
  
 “Alternative Currency Election” means a written notice to the Senior A Facility Agent upon a Lender becoming party hereto that it wishes to provide any Alternative Currency. 
  
 “Alternative Currency Lender” means each Revolving
Credit Lender having an amount greater than zero set forth opposite such Lender’s name on Schedule I under the caption “Alternative Currency Commitment for Revolving Loans”. 
  
 “Alternative Currency Loans” means, with respect to
any Alternative Currency Lender, such Lender’s Loans made pursuant to Section 2.2 in an Alternative Currency. Unless specifically stated otherwise herein, the provisions of this Agreement applicable to Loans shall apply equally to Alternative
Currency Loans. 
  
 “Alternative Currency Ratable
Portion” means with respect to any Alternative Currency Lender at any time, the percentage obtained by dividing the Alternative Currency Commitment of such Lender by the Alternative Currency Commitments of all Alternative Currency
Lenders. 
  
 “Amendment Closing Date”
means the first date on which any Loan is made or Letter of Credit is issued or deemed issued in connection with the amendment and restatement of the Existing Credit Agreement. 
  
 “Amendment Date Due Diligence Reports” means, in respect of this Agreement, the accountant’s
report, the market report, and such other due diligence reports which are designated as such by Memec Group Holdings and the Facility Agents. 
  
 “Amendment Date Projections” means those financial projections dated the Amendment Closing Date covering the Fiscal Years ending
in 2004 through 2010 inclusive (on a quarterly basis for the first two Fiscal Years and on an annual basis for the following four Fiscal Years), to be delivered to the Facility Agents by the Borrowers. 
  

 4 

 “American Operating Companies” means each of the Subsidiaries of Memec LLC
listed on Part A of Schedule 1.1(b). 
  
 “Ancillary
Advance” means a Borrowing made or to be made under an Ancillary Facility by an Ancillary Borrower hereunder or the principal amount thereof outstanding from time to time. 
  
 “Ancillary Advance Request” has the meaning specified in Section 2.5(b). 
  
 “Ancillary Borrower” means, a Borrower or any other
Subsidiary of the Applicable Memec Parent which is designated for such purposes pursuant to Section 2.19. 
  
 “Ancillary Borrower Assumption Agreement” means an Ancillary Borrower Assumption Agreement in agreed terms entered into by the
Senior A Facility Agent, Memec Group Limited and the relevant Ancillary Borrower. 
  
 “Ancillary Commitment” means, at any time, in relation to any Ancillary Lender, the maximum principal amount permitted to be made available from time to time under the Ancillary Facility in
respect thereof (which shall be expressed in Dollars and shall not, in any event, exceed the Revolving Credit Commitment of the relevant Ancillary Lender), to the extent not cancelled or reduced pursuant to this Agreement. 
  
 “Ancillary Commitment Effective Date” has the
meaning specified in Section 2.5(b). 
  
 “Ancillary
Facilities” means the ancillary credit facilities made available in accordance with Section 2.5 and the Ancillary Facilities Documents in respect thereof. 
  
 “Ancillary Facilities Documents” means each of the documents and other instruments entered into
pursuant to or in connection with the Ancillary Facilities, and subject to which the Ancillary Facilities are made available and the Ancillary Outstandings are evidenced. 
  
 “Ancillary Lender” means any Revolving Credit Lender which becomes an Ancillary Lender pursuant to
Section 2.5(b). 
  
 “Ancillary
Outstandings” means, at any time and with respect to one or more Ancillary Lenders, the aggregate of the following amounts outstanding at such time (actual or contingent) under the Ancillary Facilities of such Ancillary Lenders then in
force: 
  
 (a) all amounts then outstanding under
any overdraft, check drawing or other current account facilities determined on the same basis (calculated on a gross basis) as that for determination of any limit on such facilities imposed by the terms thereof; and 
  

 5 

 (b) in respect of any other facility or financial accommodation, such other amount as
fairly represents the aggregate exposure of such Ancillary Lenders with respect thereto under the relevant Ancillary Facilities, as reasonably determined by such Ancillary Lenders from time to time in accordance with their usual banking practice for
facilities or accommodations of the relevant type. 
  
 “Applicable Facility Agent” means (a) with respect to the Term A Loan Facility and the Revolving Credit Facility (including any Ancillary Facility made available thereunder), the Senior A Facility Agent and (b) with
respect to the Term B Loan Facility, the Senior B Facility Agent. 
  
 “Applicable Margin” means (a) during the period commencing on the Amendment Closing Date and ending on the date falling twelve months after the Amendment Closing Date, (i) with respect to the Revolving Loans, a rate
equal to 2.50% per annum, (ii) with respect to the Term A Loans, a rate equal to 2.50% per annum, (iii) with respect to the Term B Loans, a rate equal to 6.50% per annum and (b) thereafter, as of any date of determination, a per annum rate equal to
the rate set forth below opposite the applicable type of Loan and the then applicable Margin Leverage Ratio (determined for the period ending on the last day of the most recent Fiscal Quarter or Fiscal Year, as applicable, for which Financial
Statements have been delivered pursuant to Section 6.1) set forth below: 
  

										
	 Margin Leverage Ratio

	  	Revolving
Loans

	 	 	Term A
Loans

	 	 	Term B
Loans

	 
	 Greater than or equal to 2.50 to 1
	  	2.50	%	 	2.50	%	 	6.50	%
	 Less than 2.50 to 1 and equal to or greater than 2.00 to 1
	  	2.25	%	 	2.25	%	 	6.50	%
	 Less than 2.00 to 1 and equal to or greater than 1.50 to 1
	  	2.00	%	 	2.00	%	 	6.50	%
	 Less than 1.50 to 1
	  	1.75	%	 	1.75	%	 	6.50	%

  
 Subsequent changes in
the Applicable Margin resulting from a change in the Margin Leverage Ratio shall become effective as to all Loans five Business Days after delivery by the Borrowers to the Facility Agents of new Financial Statements pursuant to Section 6.1(b) for
each of the first three Fiscal Quarters of each Fiscal Year and Section 6.1(c) for each Fiscal Year. Notwithstanding anything to the contrary set forth in this Agreement (including the then effective Margin Leverage Ratio), (i) during the
continuance of an Event of Default or (ii) if the Borrowers shall fail to deliver such Financial Statements within the time periods specified in Section 6.1(b) or Section 6.1(c) as applicable, the Applicable Margin from and including the 46th day
after the end of such Fiscal Quarter or the 91st day after the end of such Fiscal Year, as the case may be, to but not including the date the Borrowers deliver to the Facility Agents such Financial Statements, shall equal the highest Applicable
Margin set forth above. 
  

 6 

 “Applicable Memec Parent” means (a) until the completion of the Permitted IPO
Reorganization, Memec Group Holdings and (b) from and after the completion of the Permitted IPO Reorganization, Memec US PubCo. 
  
 “Applicable Requisite Lenders” means (a) with respect to the Term A Loan Facility and the Revolving Credit Facility (including
any Ancillary Facility made available thereunder), the Requisite Senior Lenders and (b) with respect to the Term B Loan Facility, the Requisite Term B Lenders. 
  

“Applicable Treaty” means a double tax treaty or convention relating to the relief from double taxation on income and capital.

  
 “Approved Fund” means, with respect
to any Person, any Fund that is advised or managed by (a) such Person, (b) an Affiliate of such Person or (c) an entity or Affiliate of an entity that administers or manages such Person. 
  
 “Arrangers” means Barclays Capital and J.P. Morgan plc, solely in their capacities as joint
bookrunners and joint mandated lead arrangers. 
  
 “Asset-Backed Loan Agreement” means the Asset-Backed Loan Agreement dated as of August 4, 2000, by and among, inter alios, Triangle Funding, as the borrower, Park Avenue Receivables Corporation and Sheffield
Receivables Corporation, as the CP Conduit Lenders, Barclays, as the Sheffield Funding Agent, and Chase, as the PARCO Funding Agent as amended from time to time thereafter including for purposes of extending its maturity to October 2007. 

 
 “Asset Sale” has the meaning specified in Section
8.4. 
  
 “Assignment and Acceptance”
means an assignment and acceptance entered into by a Lender and an Eligible Assignee, and accepted by the Applicable Facility Agent, in substantially the form of Exhibit A. 
  
 “Atlas Entities” means, collectively, Atlas Business Services, LLC, Atlas Services, LLC, Atlas
Logistik Services SL, and Atlas Logistik Services GmbH, each of which is an Affiliate of Memec prior to the Closing Date. 
  
 “Authorized Accountants” means either of PricewaterhouseCoopers or any other internationally recognized accounting firm
reasonably acceptable to the Facility Agents. 
  
 “Authorized Officer” means, as to any Person, a director, secretary, assistant secretary or other duly authorized signatory of such Person. 
  
 “Available Commitment” means, in respect of any Revolving Credit Lender and the Revolving Credit
Facility (including any Ancillary Facilities) at any time, such Revolving Credit Lender’s Revolving Credit Commitment less such Revolving Credit Lender’s pro rata share of the Revolving Credit Outstandings at such time. 
  

 7 

 “Available Credit” means (a) on the Amendment Closing Date, an amount equal to
the lesser of (i) the Revolving Credit Commitments in effect at such time plus the Term A Loan Commitments at such time and (ii) the Borrowing Base at such time, and (b) at any time from and after the initial Borrowing on the Amendment Closing Date,
an amount equal to (i) the lesser of (A) the Revolving Credit Commitments in effect at such time, plus the Term A Loan Outstandings at such time and (B) the Borrowing Base at such time, minus (ii) the sum of (A) the aggregate Original Dollar Amount
of the Revolving Credit Outstandings at such time, and (B) the aggregate Term A Loan Outstandings at such time. 
  
 “Bailee Waiver” means a letter in form and substance acceptable to the Collateral Agent executed by any Person (other than a Loan
Party) who is in possession of Inventory on behalf of any Loan Party pursuant to which such Person acknowledges, among other things, the Collateral Agent’s Lien with respect thereto. 
  
 “Bank” means a Lender which is within the charge to UK corporation tax in respect of a payment of
interest on a Loan made by a Person that was a bank for purposes of section 349 of the Taxes Act (as currently defined in section 840A of the Taxes Act) at the time the Loan was made. 
  
 “Bankruptcy Code” means title 11, United States Code, as amended from time to time. 
  
 “Barclays” has the meaning specified in the
preamble. 
  
 “Barclays Capital” has the
meaning specified in the preamble. 
  
 “Blockage
Notice” has the meaning specified in each Blocked Account Letter. 
  
 “Blocked Account” has the meaning specified in the Original Borrower Security Agreement. 
  
 “Blocked Account Bank” has the meaning specified in the Original Borrower Security Agreement. 
  
 “Blocked Account Letter” has the meaning specified
in the Original Borrower Security Agreement. 
  
 “Borrowers” has the meaning specified in the preamble; provided, however, that, for the avoidance of doubt, upon its accession as a Borrower, Memec France shall only be permitted to borrow Revolving Loans and
shall not be permitted to borrow under either of the Term Loan Facilities. 
  
 “Borrowing” means a borrowing consisting of Loans made on the same day by the Lenders ratably according to their respective Commitments. A Borrowing may be a Revolving Credit Borrowing, a Term
Loan Borrowing or an Ancillary Advance. 
  

 8 

 “Borrowing Base” means, at any time, the sum of (i) the product of the Advance
Rate then in effect for Eligible Receivables and the face amount of all Gross Receivables (calculated net of all finance charges, late fees and other fees which are unearned, and credits or allowances granted at such time), plus (ii)
the product of the Advance Rate then in effect for Eligible Inventory and the Inventory Value of the Eligible Inventory at such time, minus (iii) the Preferential Creditors Liabilities Reserve. The Borrowing Base at any time shall be
determined by reference to the most recent Borrowing Base Certificate delivered to the Collateral Agent pursuant to Section 6.1. Standards of Borrowing Base eligibility and reserves may be revised from time to time by the Collateral Agent, in its
reasonable discretion, and in consultation with the Borrowers, with any changes in such standards to be effective five days after delivery of notice thereof to the Borrowers. 
  
 “Borrowing Base Certificate” means a certificate of the Borrowers substantially in the form of
Exhibit E (with such changes therein as may be required by the Collateral Agent to reflect the components of and reserves against the Borrowing Base as provided for hereunder from time to time) executed and certified as accurate and complete
by a Responsible Officer of the Applicable Memec Parent and which shall include appropriate exhibits, schedules, supporting documentation and additional reports as outlined in Schedule I to Exhibit E or as reasonably requested by the
Collateral Agent. 
  
 “Business Day”
means a day of the year on which banks are not required or authorized to close in New York City or London, England and, if the applicable Business Day relates to notices, determinations, fundings and payments in connection with the Eurocurrency Rate
or any Loans, a day on which dealings in Dollar deposits or deposits in the applicable Alternative Currency, as the case may be, are also carried on in the London interbank market. 
  
 “Business Plan” means the annual business plan and forecasts of the Group prepared by management of
the Group and delivered to the Facility Agents pursuant to Section 6.1(e). 
  
 “BV Co.” means Memec Holding B.V., a company organized under the laws of The Netherlands. 
  
 “Capital Expenditures” means, with respect to any Person for any period, the aggregate of amounts that would be reflected as
additions to property, plant or equipment on a consolidated balance sheet of such Person and its Subsidiaries prepared in conformity with GAAP, excluding interest capitalized during construction. 
  
 “Capital Lease” means, with respect to any Person,
any lease of property by such Person as lessee which would be accounted for as a capital lease or financing lease on a balance sheet of such Person prepared in conformity with GAAP. 
  

 9 

 “Capital Lease Obligations” means, with respect to any Person, the capitalized
amount of all obligations of such Person or any of its Subsidiaries under Capital Leases, as determined on a consolidated basis in conformity with GAAP. 
  
 “Cash Collateral Account” means any interest bearing deposit account established by a Loan Party which is subject to a first
priority perfected Lien in favor of the Collateral Agent pursuant to a Collateral Document or otherwise in form and substance reasonably acceptable to the Collateral Agent. 
  
 “Cash Equivalents” means (a) securities issued or fully guaranteed or insured by the United States
or United Kingdom government or any agency thereof, (b) certificates of deposit, Eurocurrency time deposits, overnight bank deposits and bankers’ acceptances of any commercial bank organized under the laws of the United Kingdom, the United
States, any state thereof, the District of Columbia, any foreign bank, or its branches or agencies (fully protected against currency fluctuations) which, at the time of acquisition, are rated at least “A-1” by S&P or “P-1” by
Moody’s, (c) commercial paper of an issuer rated at least “A-1” by S&P or “P-1” by Moody’s, and (d) shares of any money market fund that (i) has at least 95% of its assets invested continuously in the types of
investments referred to in clauses (a) through (c) above, (ii) has net assets of not less than $500,000,000 and (iii) is rated at least “A-1” by S&P or “P-1” by Moody’s; provided, however, that the maturities of
all obligations of the type specified in clauses (a) through (c) above shall not exceed 180 days. 
  
 “Cash Interest Expense” means, with respect to any Person for any period, the Interest Expense of such Person for such period
less the Non Cash Interest Expense of such Person for such period. 
  
 “Change of Control” means: 
  
 (a) at any time prior to the consummation of an Initial Public Offering, there occurs any event, transaction or occurrence (other than an event, transaction or occurrence as a result of the Permitted IPO
Reorganization) as a result of which (a) the Permira Group shall cease to own and control (as such term is defined in the definition of “Affiliate”) all of the economic and voting rights associated with ownership of at least
51% of the outstanding Stock of all classes of the Applicable Memec Parent on a fully diluted basis, or (b) Memec Group Holdings shall cease to own and control all of the economic and voting rights associated with ownership of at least 100% of the
outstanding Stock of all classes of Memec Holdings on a fully diluted basis, or (c) Memec Holdings shall cease to own and control all of the economic and voting rights associated with 100% of the outstanding Stock of Memec Limited, or (d) Memec
Limited shall cease to own and control all of the economic and voting rights associated with 100% of the outstanding Stock of Overseas Holdco and Memec Europe, or (e) Overseas Holdco shall cease to own and control all of the economic and voting
rights associated with 100% of the outstanding Stock of US Holdco, or (f) US Holdco shall cease to own and control all of the economic and voting rights associated with 100% of the outstanding Stock of Memec LLC; 
  

 10 

 (b) at any time after the consummation of an Initial Public Offering: 
  
 (i) if the Group shall have an IPO Leverage Ratio as at the
date of the Initial Public Offering that is greater than 3.25 to 1.00, there occurs any event, transaction or occurrence as a result of which and for any reason whatever (A) the Permira Group (or any of them) shall cease to own legally and
beneficially an amount of the ordinary share capital of Memec US PubCo equal to at least 30% of the percentage of ordinary share capital of Memec US PubCo and (B) such ownership by the Permira Group ceases to represent the largest single block of
voting shares of Memec US PubCo held by any person or persons acting in concert; or 
  
 (ii) if the Group shall have an IPO Leverage Ratio as at the date of the Initial Public Offering that is equal to or less than 3.25 to
1.00, there occurs any event, transaction or occurrence as a result of which and for any reason whatever, any person or group of persons acting in concert (other than the Permira Group) gains control of the Group; or 
  
 (iii) if the Group shall have achieved external credit
ratings of a minimum of BBB- from S&P and Baa3 from Moody’s (with in each case, a stable outlook or better), there occurs any event, transaction or occurrence as a result of which and for any reason whatever, any person or group of persons
acting in concert (other than the Permira Group) gains control of the Group. 
  
 For purposes of this definition of “Change of Control”, “acting in concert” means a group of Persons who, pursuant to an agreement or understanding (whether formal or
informal), actively co-operate, through the acquisition by any of them, either directly or indirectly, of shares in the Applicable Memec Parent, to obtain or consolidate control of the Applicable Memec Parent. 
  
 “Chase” has the meaning specified in the second
recital. 
  
 “Code” means the Internal
Revenue Code of 1986 (or any successor legislation thereto), as amended from time to time. 
  
 “Collateral” means all property and interests in property and proceeds thereof now owned or hereafter acquired by any Loan Party in or upon which a Lien is granted under any of the Collateral
Documents. 
  
 “Collateral Agent” has the
meaning specified in the preamble. 
  
 “Collateral
Documents” means each of the documents listed on Schedule 1.1(a) and all other documents creating, evidencing or granting a security interest in favor of the Collateral Agent for the ratable benefit of the Secured Parties in respect of
the Obligations and includes the New Collateral Documents and the New Permitted IPO Reorganization Collateral Documents. 
  

 11 

 “Combined Facility Utilization” means, expressed as a percentage, the ratio of
(A)(i) any borrowings outstanding under the Term A Loan and Revolving Loan, plus (ii) any loans outstanding under the Asset Backed Loan Agreement, and (B)(i) the Maximum Credit, plus (ii) the maximum availability under
the Asset Backed Loan Agreement. 
  
 “Commitment” means, with respect to any Lender, such Lender’s Revolving Credit Commitment (including for the avoidance of doubt, such Lender’s Ancillary Commitment), if any, and Term Loan Commitment, if
any, and “Commitments” means the aggregate Revolving Credit Commitments and Term Loan Commitments. 
  
 “Commitment Fee Rate” means a rate equal to 0.50% per annum payable to the relevant Facility Agent for the account of each Term
Loan Lender, as more particularly set forth in Section 2.13(c). 
  
 “Commitment Termination Date” means the date falling on the 45th day after the Signing Date. 
  
 “Compliance Certificate” has the meaning specified in Section 6.1(d). 
  
 “Consolidated Current Assets” means, with respect to
any Person at any date, the total consolidated current assets (other than cash and Cash Equivalents) of such Person and its Subsidiaries at such date, determined in conformity with GAAP. 
  
 “Consolidated Current Liabilities” means, with respect to any Person at any date, all liabilities
of such Person and its Subsidiaries at such date which should, in accordance with GAAP, be classified as current liabilities on a consolidated balance sheet of such Person and its Subsidiaries prepared in conformity with GAAP, but excluding, in the
case of any Group Member, the sum of (a) the principal amount of any current portion of long-term Financial Covenant Debt and (b) (without duplication of clause (a) above) the then outstanding principal amount of the Loans. 
  
 “Consolidated Net Income” means, for any Person for
any period, the net income (or loss) of such Person and its Subsidiaries for such period, determined on a consolidated basis in conformity with GAAP. 
  
 “Consortium A Lenders” means, collectively, Arrow Electronics, Inc., Avnet, Inc., SUKV-IV, SUKV-LP1, SUKV-LP2, SUKV Co-Investors,
SV-US Fund 1, SV-US Fund 2, SV-Euro Fund 1, SV-Euro Fund 2, DB Investor and Richard Skipworth. 
  
 “Consortium A Loans” means the deferred interest loans made to Memec Holdings by the Consortium A Lenders pursuant to the
Consortium Loan Agreement in an aggregate original principal amount of at least $150,000,000, the 
  

 12 

 proceeds of which shall be on-lent to Memec Limited pursuant to the MidCo Loan Agreement and thereafter used by Memec
Limited solely to consummate the Memec Acquisition and pay related costs, fees and expenses. 
  
 “Consortium Agreement” means the agreement relating to the acquisition of the Group and other assets of the Sellers dated as of the Original Closing Date, among Memec Group Holdings, Arrow
Electronics, Inc. and Avnet, Inc. 
  
 “Consortium B
Lenders” means SUKV-IV, SUKV-LP1, SUKV-LP2, SUKV Co-Investors, SV-US Fund 1, SV-US Fund 2, SV-Euro Fund 1, SV-Euro Fund 2, DB Investor and Richard Skipworth. 
  
 “Consortium B Loans” means the deferred interest loans made to Memec Holdings by the Consortium B
Lenders pursuant to the Consortium Loan Agreement in an aggregate original principal amount of at least $50,000,000, the proceeds of which shall be on-lent to Memec Limited pursuant to the MidCo Loan Agreement and thereafter used by Memec Limited
solely to consummate the Memec Acquisition and pay related costs, fees and expenses. 
  
 “Consortium Intercreditor Deed” means the intercreditor deed dated as of the Original Closing Date, among Memec Holdings, the Consortium Lenders and the Discount Bondholders. 
  
 “Consortium Lenders” means, collectively, the
Consortium A Lenders and the Consortium B Lenders. 
  
 “Consortium Loan Agreement” means the $200,000,000 Term Facility Agreement dated as of the Original Closing Date, among Memec Holdings and the Consortium Lenders. 
  
 “Consortium Loans” means, collectively, the
Consortium A Loans and the Consortium B Loans. 
  
 “Constituent Documents” means, with respect to any Person, (a) the articles or certificate of incorporation (or the equivalent organizational documents) of such Person, (b) the bylaws (or the equivalent governing
documents) of such Person and (c) any document setting forth the manner of election and duties of the directors or managing members of such Person (if any) and the designation, amount and/or relative rights, limitations and preferences of any class
or series of such Person’s Stock. 
  
 “Contaminant” means any material, substance or waste that is classified, regulated or otherwise characterized under any Environmental Law as hazardous, toxic, a contaminant or a pollutant or by other words of similar
meaning or regulatory effect. 
  
 “Contractual
Obligation” of any Person means any obligation, agreement, undertaking or similar provision of any Security issued by such Person or 
  

 13 

 of any agreement, undertaking, contract, lease, indenture, mortgage, deed of trust or other instrument (excluding a Loan
Document) to which such Person is a party or by which it or any of its property is bound or to which any of its properties is subject. 
  
 “Contribution Agreement” means the Contribution Agreement dated as of October 13, 2000, between Memec LLC and Triangle Funding.

  
 “Control Account” has the meaning
specified in the Borrower Security Agreement. 
  
 “Control Account Letter” has the meaning specified in the Borrower Security Agreement. 
  
 “Customary Permitted Liens” means, with respect to any Person, any of the following Liens: 
  
 (a) Liens with respect to the payment of taxes, assessments
or governmental charges in all cases which are not yet due or which are being contested in good faith by appropriate proceedings and with respect to which adequate reserves or other appropriate provisions are being maintained to the extent required
by GAAP; 
  
 (b) Liens of landlords arising by
statute and liens of suppliers, mechanics, carriers, materialmen, warehousemen or workmen and other liens imposed by law created in the ordinary course of business for amounts not yet due or which are being contested in good faith by appropriate
proceedings and with respect to which adequate reserves or other appropriate provisions are being maintained to the extent required by GAAP; 
  
 (c) deposits made in the ordinary course of business in connection with worker’s compensation, unemployment insurance or other types
of social security benefits or to secure the performance of bids, tenders, sales, contracts (other than for the repayment of borrowed money) and deposits for customs and excise taxes and and surety, appeal, customs or performance bonds; 

 
 (d) encumbrances arising by reason of zoning
restrictions, easements, licenses, reservations, covenants, rights-of-way, utility easements, building restrictions and other similar encumbrances on the use of real property which do not materially detract from the value of such real property or
interfere with the ordinary conduct of the business conducted and proposed to be conducted at such real property; 
  
 (e) encumbrances arising under leases or subleases of real property which do not in the aggregate materially detract from the value of
such real property or interfere with the ordinary conduct of the business conducted and proposed to be conducted at such real property; and 
  

 14 

 (f) financing statements of a lessor’s rights in and to personal property leased to
such Person in the ordinary course of such Person’s business. 
  
 “Daylight Facility Agreement” means any agreement entered into or to be entered into between a Group Member and a Lender for the purpose of covering intra-day Indebtedness of such Group Member to such Lender pursuant
to cash management arrangements of such Group Member, including the use of ACH and BACS facilities to support such arrangements. 
  
 “DB Investor” means DB Industrial Holding AG. 
  
 “Debenture” means the Debenture dated as of the Original Closing Date, in agreed terms, governed by
English law, between each Guarantor that is organized under the laws of England and Wales and the Collateral Agent. 
  
 “Debt Issuance” means the incurrence of Indebtedness of the type specified in clauses (a) and (b) of the definition of
“Indebtedness” by the Applicable Memec Parent or any of its Subsidiaries; excluding, however, any incurrence of Indebtedness expressly permitted by Section 8.1. 
  
 “Default” means any event which with the passing of time or the giving of notice or any fulfillment
of any other condition, in each case, referred to in Section 9.1 or any combination of the foregoing would become an Event of Default. 
  
 “Dilution Ratio” means the amount, expressed as a percentage, equal to (a) the aggregate amount of deductions, credit memos,
returns, adjustments, allowances, bad debt write-offs and other non-cash credits to Accounts for the twelve most recently ended fiscal months divided by (b) total gross sales (excluding intercompany sales) for the twelve most recently ended fiscal
months. 
  
 “Disaster Recovery Report”
means the disaster recovery report prepared for the Group by Arthur Andersen LLP. 
  
 “Discount Bondholders” means SUKV-IV, SUKV-LP1, SUKV-LP2, SUKV Co-Investors, SV-US Fund 1, SV-US Fund 2, SV-Euro Fund 1, SV-Euro Fund 2, DB Investor and Richard Skipworth. 
  
 “Disqualified Stock” means with respect to any
Person, any Stock which, by its terms (or by the terms of any security into which it is convertible or for which it is exchangeable), or upon the happening of any event, matures or is mandatorily redeemable, pursuant to a sinking fund obligation or
otherwise, or is exchangeable for Indebtedness of such Person, or is redeemable at the option of the holder thereof, in whole or in part, on or prior to six months after the Term Loan B Maturity Date. 
  
 “Distributor Credit Reserve Inventory” means the
value which shall be calculated by (i) dividing the sum of the ship from stock and debit or distributor price adjustments granted by suppliers during the most current six months by the 
  

 15 

 Gross Distribution Costs associated with the Inventory sold to customers during the most current six months and (ii)
multiplying by the current Inventory Value on hand related to those suppliers which have granted ship from stock and distributor price adjustment credits. 
  
 “Documentary Letter of Credit” means any Letter of Credit issued by an Issuer pursuant to Section 2.4 for the account of the
Applicable Memec Parent or its Subsidiaries, which is drawable upon presentation of documents evidencing the sale or shipment of goods purchased by the Applicable Memec Parent or any of its Subsidiaries in the ordinary course of its business.

  
 “Dollar Equivalent” means with
respect to any Alternative Currency at the time of determination thereof, the Original Dollar Amount of such currency determined by using the rate of exchange quoted by JPMorgan in London, England at 11:00 A.M. (London time) on the date of
determination to prime banks in London for the spot purchase in the London foreign exchange market of such amount of Dollars with such Alternative Currency. 
  
 “Dollars” and the sign “$” each mean the lawful money of the United States of America. 
  
 “Domestic Subsidiary” means any Subsidiary of the
Applicable Memec Parent organized under the laws of any state of the United States of America or the District of Columbia. 
  
 “Due Diligence Reports” means, collectively, (a) the Original Due Diligence Reports and (b) the Amendment Date Due Diligence
Reports. 
  
 “EBITDA” means, with respect
to any Person for any period, an amount equal to (a) Consolidated Net Income of such Person for such period plus (b) the sum of, in each case to the extent included in the calculation of such Consolidated Net Income but without duplication, (i) any
provision for income taxes, (ii) Interest Expense, (iii) loss from extraordinary items and (iv) depreciation, depletion and amortization of intangibles (including goodwill) or financing or acquisition costs and (v) all other non-cash charges and
non-cash losses for such period, including the amount of any compensation deduction as the result of any grant of Stock or Stock Equivalents to employees, officers, directors or consultants, other than charges representing accruals of future cash
expenses, minus (c) the sum of, in each case to the extent included in the calculation of such Consolidated Net Income but without duplication, (i) any credit for income tax, (ii) interest income, (iii) gains from extraordinary items for such
period, (iv) any aggregate net gain (but not any aggregate net loss) from the sale, exchange or other disposition of capital assets by such Person, (v) any other non-cash gains or other items which have been added in determining Consolidated Net
Income, including any reversal of a charge referred to in clause (b)(v) above by reason of a decrease in the value of any Stock or Stock Equivalent and (vi) cash payments for previously reserved charges. 
  
 “ECF Application Date” has the meaning specified in
Section 2.10(b). 
  

 16 

 “ECF Percentage” has the meaning specified in Section 2.10(b). 
  
 “Effective Advance Rate” means, expressed as a
percentage, the ratio of (a) total Eligible Receivables multiplied by an 85% advance rate to (b) Gross Receivables. Such Effective Advance Rate will be updated in connection with the delivery of the semi-annual or monthly (as the case
may be) Receivables Availability Certificate. 
  
 “Eligible Assignee” means (a) a Lender or Lender Affiliate or any Approved Fund of any Lender; (b) a commercial bank or Approved Fund having total assets whose Dollar Equivalent exceeds $5,000,000,000; (c) a finance
company, insurance company, other financial institution or Approved Fund, in each case reasonably acceptable to the Applicable Facility Agent, which is regularly engaged in making, purchasing or investing in loans, and having a net worth, determined
in accordance with GAAP, whose Dollar Equivalent exceeds $250,000,000 (or, to the extent net worth is less than such amount, a finance company, insurance company, other financial institution or Fund, reasonably acceptable to the Applicable Facility
Agent); or (d) a savings and loan association or savings bank organized under the laws of the United States or any State thereof which has a net worth, determined in accordance with GAAP, whose Dollar Equivalent exceeds $250,000,000. 
  
 “Eligible Inventory” means the aggregate sum of the
Inventory of the Group Members located in Eligible Jurisdictions (other than any Inventory which has been consigned to any such Group Member) (a) which is owned solely by the applicable Group Member, (b) with respect to which no representation or
warranty contained in any Loan Document has been materially breached, and (c) which is not Ineligible Inventory. 
  
 “Eligible Jurisdictions” means, (a) on the Original Closing Date, the United States of America, the United Kingdom, Germany,
Japan, Switzerland, Ireland, Canada, Israel, Hong Kong and France, and (b) after the Original Closing Date, such other jurisdictions, including Australia, in each case (except as may be otherwise agreed by the Senior A Facility Agent), upon the
agreement of the relevant Group Members in such jurisdictions to be designated as a Specified Subsidiary and grant a security interest in Accounts and Inventory of such Group Members in such jurisdictions. For the avoidance of doubt, the United
States of America, the United Kingdom, Germany, Japan, Switzerland, Ireland, Canada, Israel, Hong Kong, France and Australia are Eligible Jurisdictions as of the Amendment Closing Date. 
  
 “Eligible Receivable” means the aggregate sum of the Gross Receivables which meet all Eligible
Receivables Criteria. For the avoidance of doubt, no Account that is or has been transferred by a Group Member into the Receivables Purchase Facility or any other receivables facility (including the Japanese Receivables Facilities) shall be deemed
an Eligible Receivable. 
  
 “Eligible
Receivables Criteria” means, without duplication and at the time of any determination thereof, each Account that satisfies the following criteria at the time of creation and continues to meet the same at the time of such determination:
such Account (i) has been invoiced to, and represents the bona fide amounts due to 
  

 17 

 the applicable Group Member from the purchaser of goods or services, in each case originated in the ordinary course of
business of such Group Member and (ii) is not ineligible for inclusion in the calculation of the Borrowing Base pursuant to any of clauses (a) through (w) below or otherwise deemed by the Collateral Agent in its reasonable discretion, in
consultation with the Borrowers, to be ineligible for inclusion in the calculation of the Borrowing Base as described below. Without limiting the foregoing, to qualify as an Eligible Receivable, an Account shall indicate no Person other than the
applicable Group Member as sole payee or remittance party. In determining the amount to be so included, the face amount of an Account shall be reduced by, without duplication, to the extent not reflected in such face amount, the amount of all
accrued and actual discounts, claims, credits or credits pending, promotional program allowances, price adjustments, finance charges or other allowances (including any amount that the Borrower may be obligated to rebate to a customer pursuant to the
terms of any agreement or understanding (written or oral)). Unless otherwise approved from time to time in writing by the Collateral Agent, no Accounts shall be Eligible Receivables to the extent: 
  
 (a) any Accounts are (i) more than 60 days past due
according to the original terms of sale, or (ii) 90 days past the original invoice date thereof (or, in the case of Accounts owing to Group Members incorporated in Japan and France, 120 days); or 
  
 (b) any warranty contained in any Loan Document with respect
to any specific Accounts is not true and correct with respect to such Accounts or the Account does not comply in all material respects with the requirements of all applicable Requirements of Laws; or 
  
 (c) the Account is not subject to a valid and perfected
first priority Lien in favor of the Secured Parties, and is not subject to any other Liens other than Liens (if any) permitted by the Agreement; provided, however, that in the case of Accounts and Inventory of Group Members located in both
France and Germany, such Accounts may eligible to the extent that the portion of Borrowing Base attributable to such Accounts (in aggregate) shall not at any time contribute more than 15% of the total Borrowing Base; provided further,
however, that to the extent Memec France or Memec Germany incur actual borrowings under the Revolving Credit Facility, the 15% aggregate limitation may be increased by an amount to be agreed between the Facility Agents and the Borrowers; or

  
 (d) the Account Debtor on any Account has
disputed liability or made any claim with respect to any other Account due from such Account Debtor to any Group Member but only to the extent of such dispute or claim; or 
  
 (e) the Account Debtor on any Account has: (i) filed a petition for bankruptcy or any other relief under any
law relating to bankruptcy, insolvency, reorganization or relief of debtors; (ii) made an assignment for the benefit of creditors; (iii) had filed against it any petition or other application for relief under any such law; (iv) has failed, suspended
business operations, 
  

 18 

 become insolvent, called a meeting of its creditors for the purpose of obtaining any financial concession
or accommodation; or (v) had or suffered a receiver or a trustee to be appointed for all or a significant portion of its assets or affairs; or 
  
 (f) the Account Debtor (i) is a creditor, (ii) has or has asserted a right of set-off against the Group Member (unless such creditor has
executed a no offset letter satisfactory to the Collateral Agent, in its sole discretion to waive such set-off rights), (iii) has disputed its liability (whether by chargeback or otherwise) or made any asserted or unasserted claim with respect to
the Account or any other Account of the Group Member which has not been resolved, or (iv) the Account is subject to any other deduction, deposit from an Account Debtor, counterclaim, return privilege or other conditions other than volume sales
discounts given in the ordinary course of such Group Member’s business, in each case, to the extent of the amount owed by such Group Member to the Account Debtor, the amount of such actual or asserted right of set-off, the amount of such
dispute or claim, or the amount of such deduction, deposit, counterclaim, return privilege or other condition as the case may be; or 
  
 (g) the sale represented by any Account is to an Account Debtor located outside of an Eligible Jurisdiction; or 
  
 (h) the sale to any Account Debtor on such Account is on a
bill-on-hold, guaranteed sale, sale-and-return, sale-on-approval or consignment basis; or 
  
 (i) any Account is subject to a Lien in favor of any Person other than the Collateral Agent for the benefit of the Secured Parties or the
relevant Group Member does not have sole lawful and absolute title to such Account; or 
  
 (j) the Account Debtor on any Account is a United States Governmental Authority (or any other Governmental Authority in a jurisdiction
which restricts the assignment of accounts of Governmental Authorities), unless the applicable Loan Party has assigned its rights to payment of such Account to the Collateral Agent pursuant to applicable law, if any, and such assignment has been
accepted and acknowledged by the appropriate government officers; or 
  
 (k) 50% or more of the outstanding Accounts of any Account Debtor are ineligible in accordance with clause (a) of this definition; or 
  
 (l) the sale represented by any Account is denominated in a currency other than the lawful currency of any
Eligible Jurisdiction; or 
  
 (m) any Account is
not evidenced by (i) an invoice or (ii) other writing in form reasonably acceptable to the Collateral Agent; or 
  

 19 

 (n) the applicable Loan Party, in order to be entitled to collect such Account, is
required to perform any additional service for, or perform or incur any additional obligation to, the Person to whom or to which it was made; or 
  
 (o) the total Accounts of any Account Debtor to the applicable Loan Party represent more than 20% of the Eligible Receivables individually
or in the aggregate as to such Loan Party at such time; or 
  
 (p) cash has been received by a Group Member in respect of an Account, but not yet applied by the Group Member to reduce the amount of the Accounts; or 
  
 (q) in determining the aggregate amounts of Accounts from the same Account Debtor that are unpaid after more
than 60 days from the due date or 90 days (or 120 days, if applicable) from the date of invoice pursuant to clause (a) of this definition, there are any net credit balances relating to Accounts with invoice dates more than 60 days from the due date
or more than 90 days (or 120 days, if applicable) prior to the date of determination, in which case such credits shall be excluded from Eligible Receivables; or 
  
 (r) any Accounts include amounts payable to Governmental Authorities in respect of sales, excise or similar
taxes; or 
  
 (s) the Account is a non-trade
Account, or relates to payments for interest; or 
  
 (t) such Account was invoiced (i) more than once, or (ii) the goods giving rise to such Account have not been shipped and title has not been transferred to the Account Debtor or the goods have been shipped and title will not transfer within
two Business Days, or the Account otherwise does not represent a complete sale; or 
  
 (u) it arises out of a sale made by the Group Member to an employee, officer, agent, director, stockholder, Subsidiary or Affiliate of the
Group Member; or 
  
 (v) the Account was not paid
in full, and the Group Member created a new receivable for the unpaid portion of the Account, and other Accounts constituting chargebacks, debit memos and other adjustments for unauthorized deductions; or 
  
 (w) any Accounts which will be subject to any deductions,
credit memos, returns, adjustments, allowances, bad debt write-offs and other non-cash credits (to be reflected as an amount equal to the Dilution Ratio multiplied by the Eligible Receivables). 
  
 “Enforcement Date” means the date on which the
Senior A Facility Agent serves notice of Loans and all other amounts payable hereunder becoming due and payable under Section 9.2. 
  

 20 

 “Enforcement Date Notice” means a notice to be issued by the Senior A Facility
Agent under Section 11.19. 
  
 “Enterprise Resource
Planning” means, with respect to any Person for any period, the aggregate of amounts of capital expenditures in relation to J. D. Edwards and EKS software implementations. 
  
 “Environmental Laws” means all applicable Requirements of Law now or hereafter in effect, as
amended or supplemented from time to time, relating to pollution or the regulation and protection of human health, safety, the environment or natural resources. 
  

“Environmental Liabilities and Costs” means, with respect to any Person, all liabilities, obligations, responsibilities,
Remedial Actions, losses, damages, punitive damages, consequential damages, treble damages, costs and expenses (including all fees, disbursements and expenses of counsel, experts and consultants and costs of investigation and feasibility studies),
fines, penalties, sanctions and interest incurred as a result of any claim or demand by any other Person, whether based in contract, tort, implied or express warranty, strict liability, criminal or civil statute, including any thereof arising under
any Environmental Law, Permit, order or agreement with any Governmental Authority or other Person, which relate to any environmental, health or safety condition or a Release or threatened Release, and result from the past, present or future
operations of, or ownership of property by, such Person or any of its Subsidiaries. 
  
 “Environmental Lien” means any Lien in favor of any Governmental Authority for Environmental Liabilities and Costs. 
  
 “Equipment” has the meaning specified in the Borrower Security Agreement. 
  
 “ERISA” means the Employee Retirement Income
Security Act of 1974 (or any successor legislation thereto), as amended from time to time. 
  
 “ERISA Affiliate” means any trade or business (whether or not incorporated) under common control or treated as a single employer with any Group Member within the meaning of Section 414 (b),
(c), (m) or (o) of the Code. 
  
 “ERISA
Event” means (a) a reportable event described in Section 4043(b) or 4043(c)(1), (2), (3), (5), (6), (8) or (9) of ERISA with respect to a Title IV Plan or a Multiemployer Plan for which the notice requirements have not been waived; (b)
the withdrawal of Memec LLC, any of its Subsidiaries or any ERISA Affiliate from a Title IV Plan subject to Section 4063 of ERISA during a plan year in which it was a substantial employer, as defined in Section 4001(a)(2) of ERISA; (c) the complete
or partial withdrawal of the Applicable Memec Parent, any of its Subsidiaries or any ERISA Affiliate from any Multiemployer Plan; (d) notice of reorganization or insolvency of a Multiemployer Plan; (e) the filing of a notice of intent to terminate a
Title IV Plan or the treatment of a plan amendment as a termination under Section 4041 of ERISA; (f) the institution of proceedings to 
  

 21 

 terminate a Title IV Plan or Multiemployer Plan by the PBGC; (g) the failure to make any required contribution to a Title
IV Plan or Multiemployer Plan; (h) the imposition of a lien under Section 412 of the Code or Section 302 of ERISA on the Applicable Memec Parent or any of its Subsidiaries or any ERISA Affiliate; or (i) any other event or condition which could
reasonably be expected to constitute grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Title IV Plan or Multiemployer Plan or the imposition of any liability under Title IV of ERISA, other
than for PBGC premiums due but not delinquent under Section 4007 of ERISA. 
  
 “Euro” or the sign “€” means the single currency (whether known as the Euro or otherwise) of the participating member states of the European Union. 
  
 “Eurocurrency Rate” means, with respect to any
Interest Period for any Loan in any currency, the rate of interest determined by the Facility Agents to be the rate per annum (rounded upward to the nearest whole multiple of 1/16 of 1% per annum, if such average is not such a multiple) appearing on
Telerate Page 3750 (or any successor page) as the London interbank offered rate for deposits in the relevant currency at approximately 11:00 A.M. (London time) two Business Days prior to the first day of such Interest Period for a term comparable to
such Interest Period. If for any reason such rate is not available, the term “Eurocurrency Rate” shall mean, for any Loan for any Interest Period therefor, the arithmetic mean (rounded upward to the nearest whole multiple of
1/16 of 1%) of the respective rates offered to the Applicable Facility Agent at its request quoted by reference banks in the London interbank market for a term comparable to such Interest Period. 
  
 “Event of Default” has the meaning specified in
Section 9.1. 
  
 “Excess Cash Flow”
means, for the Group for any period, EBITDA of the Group for such period plus (a) the sum of (without duplication) (i) the excess, if any, of the Working Capital of the Group at the beginning of such period over the Working Capital of the Group at
the end of such period, (ii) cash dividends, cash interest and other similar cash payments received by the Group during such period and (iii) the amount of any refunds of taxes received by the Group Members during such period, minus (b) the sum of
(without duplication) (i) scheduled and mandatory cash principal payments on the Loans during such period (but only to the extent that the Term Loan Commitments and/or the Revolving Credit Commitments are permanently reduced by the amount of such
payments), (ii) scheduled cash principal payments made by any Group Member during such period on other Indebtedness to the extent such other Indebtedness and payments are permitted by this Agreement, (iii) Cash Interest Expense of the Group during
such period, (iv) scheduled payments made by any Group Member on Capital Lease Obligations to the extent such Capital Lease Obligations and payments are permitted by this Agreement, (v) Capital Expenditures made by any Group Member during such
period to the extent permitted by this Agreement (excluding, however, the portion of Capital Expenditures, if any, financed by purchase money debt (other than Loans) or Capital Lease Obligations), together with any amounts carried forward for the
purposes of Section 5.4, (vi) taxes paid by the Group Members during such period and (vii) the excess, if any, of the Working Capital of the Group at the end of such period over the Working Capital of the Group at the beginning of such period.

  

 22 

 “Existing Credit Agreement” has the meaning specified in the third recital.

  
 “Existing Lenders” has the meaning
specified in the third recital. 
  
 “Facilities” means, collectively, (a) the Term A Loan Facility, (b) the Term B Loan Facility and (c) Revolving Credit Facility (including any Ancillary Facility made available thereunder); and
“Facility” means any one of them as the context so requires. 
  
 “Facility Agents” means, collectively, (a) the Administrative Agent, (b) the Senior A Facility Agent, and (c) the Senior B Facility Agent; and “Facility Agent” means any
one of them as the context so requires. 
  
 “Fair
Market Value” means (a) with respect to any asset or group of assets (other than a marketable Security) at any date, the value of the consideration obtainable in a sale of such asset at such date assuming a sale by a willing seller to a
willing purchaser dealing at arm’s length and arranged in an orderly manner over a reasonable period of time having regard to the nature and characteristics of such asset, as reasonably determined by the Board of Directors of the applicable
Group Member, or, if such asset shall have been the subject of a relatively contemporaneous appraisal by an independent third party appraiser, the basic assumptions underlying which have not materially changed since its date, the value set forth in
such appraisal, and (b) with respect to any marketable Security at any date, the closing sale price of such Security on the Business Day next preceding such date, as appearing in any published list of any national securities exchange or the NASDAQ
Stock Market or, if there is no such closing sale price of such Security, the final price for the purchase of such Security at face value quoted on such business day by a financial institution of recognized standing which regularly deals in
securities of such type selected by the Facility Agents. 
  
 “Federal Reserve Board” means the Board of Governors of the Federal Reserve System, or any successor thereto. 
  
 “Fee Letter” means the fee letter dated as of the Signing Date, addressed to Memec Limited from JPMorgan, Barclays and the
Arrangers and accepted by Memec Limited on the Signing Date, in each case with respect to certain fees to be paid from time to time to Chase, JPMorgan, Barclays and/or the Arrangers. 
  
 “Financial Covenant Debt” of any Person on any date of determination means Indebtedness of the type
specified in clauses (a), (b), (c), (d), (e), (f) and (h) of the definition of “Indebtedness” (excluding, however, any Indebtedness in respect of the VAT Bonds and undrawn Letters of Credit); provided, however, that
for purposes of determining the Financial Covenant Debt for the Group, “Financial Covenant Debt” shall not include Indebtedness in respect of (i) the Consortium Loans, (ii) the Investor Discount Bonds and (iii) any Future
Equity/Loan Stock but shall include Indebtedness in respect of the Asset-Backed Loan Agreement and the Japanese Receivables Facilities. 
  

 23 

 “Financial Statements” means the financial statements of the Group delivered in
accordance with Section 3.1(g), Section 3.2 or Section 6.1 (as applicable). 
  
 “Fiscal Quarter” means each of the three month periods ending on March 31, June 30, September 30 and December 31. 
  
 “Fiscal Year” means the twelve month period ending on December 31. 
  
 “Fixed Charges” means, for any Person for any
period, the sum of (a) the Cash Interest Expense of such Person for such period, (b) the principal amount of Financial Covenant Debt of such Person and each of its Subsidiaries determined on a consolidated basis in conformity with GAAP having a
scheduled due date during such period (but, for the avoidance of doubt, excluding any Revolving Credit Borrowings to be refinanced pursuant to Section 2.2(h) during such period), and (c) all cash dividends payable by such Person and its Subsidiaries
on Stock in respect of such period to Persons other than such Person and its Subsidiaries. 
  
 “Fixed Charge Coverage Ratio” means, with respect to any Person for any period, the ratio of (a) EBITDA of such Person for such period minus Capital Expenditures of such Person for such period
minus the total federal income tax liability actually payable by such Person in respect of such period to (b) the Fixed Charges of such Person for such period. 
  

“Foreign Employee Benefit Plan” means any employee benefit plan as defined in Section 3(3) of ERISA which is maintained or
contributed to for the benefit of the employees of the Applicable Memec Parent, any of its Subsidiaries or any of its ERISA Affiliates and is not covered by ERISA pursuant to Section 4(b)(4) of ERISA. 
  
 “Foreign Subsidiary” means any Subsidiary of the
Applicable Memec Parent other than a Domestic Subsidiary. 
  
 “Fund” means any Person (other than a natural Person) that is or will be engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of
business. 
  
 “Future Equity/Loan Stock”
means any unsecured, subordinated loan notes or other instruments entered into after the Closing Date with shareholders of the Applicable Memec Parent and having substantially the same terms as the Investor Discount Bonds, including the following:
(i) the maturity or redemption date shall be at least twelve months after the date of final repayment of the Facilities and termination of the Commitments thereunder, (ii) the ability to pay cash interest or cash dividends shall be subject in all
respects to the terms and conditions of this Agreement (including Section 8.5), and (iii) such instrument shall be otherwise permitted under Article VIII hereof. 
  

 24 

 “GAAP” means generally accepted accounting principles in the United States of
America as in effect from time to time set forth in the opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and the statements and pronouncements of the Financial Accounting
Standards Board, or in such other statements by such other entity as may be in general use by significant segments of the accounting profession in the United States of America, which are applicable to the circumstances as of the date hereof.

  
 “Governmental Authority” means any
nation or government, any state or other political subdivision thereof and any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government. 
  
 “Gross Distribution Costs” means the invoice cost of
product from the supplier or manufacturer to the applicable purchasing company, adjusted where appropriate for price protection adjustments, plus, where appropriate, freight in and duty. 
  
 “Gross Receivables” means the aggregate sum of the gross outstanding balances of those Accounts of
Group Members arising out of sales of merchandise, goods or services in the ordinary course of business, which are made by a Group Member located in an Eligible Jurisdiction to a Person that is not an Affiliate of such Group Member, for which no bad
debt reserves have been established. 
  
 “Group” means, collectively, the Applicable Memec Parent and its Subsidiaries; and “Group Member” means, individually, each member of the Group. 
  
 “Guarantor” means Memec Group Holdings, Memec
Holdings, Memec Limited, Overseas Holdco, Memec Europe, Memec, Memec LLC, (on or after the completion of the Permitted IPO Reorganization) Memec US PubCo, and each Subsidiary Guarantor. 
  
 “Guarantor Security Agreement” means the Pledge and Security Agreement dated as of the Original
Closing Date, in agreed terms, governed by New York law, between each Subsidiary Guarantor that is a Domestic Subsidiary and the Collateral Agent. 
  
 “Guaranty” means the Guaranty dated as of the Original Closing Date, in agreed terms, executed by the Guarantors. 
  
 “Guaranty Obligation” means, as applied to any
Person, any direct or indirect liability, contingent or otherwise, of such Person with respect to any Indebtedness of another Person, if the purpose or intent of such Person in incurring the Guaranty Obligation is to provide assurance to the obligee
of such Indebtedness that such Indebtedness will be paid or discharged, or that any agreement relating thereto will be complied with, or that any holder of such Indebtedness will be protected (in whole or in part) against loss in respect thereof
including, (a) the direct or indirect guaranty, endorsement (other than for collection or deposit in the ordinary course of business), co making, discounting with recourse or sale with recourse by such Person of Indebtedness of another Person and
(b) any liability of such Person for 
  

 25 

 Indebtedness of another Person through any agreement (contingent or otherwise) (i) to purchase, repurchase or otherwise
acquire such Indebtedness or any security therefor, or to provide funds for the payment or discharge of such Indebtedness (whether in the form of a loan, advance, stock purchase, capital contribution or otherwise), (ii) to maintain the solvency or
any balance sheet item, level of income or financial condition of another Person, (iii) to make take or pay or similar payments, if required, regardless of non performance by any other party or parties to an agreement, (iv) to purchase, sell or
lease (as lessor or lessee) property, or to purchase or sell services, primarily for the purpose of enabling the debtor to make payment of such Indebtedness or to assure the holder of such Indebtedness against loss, or (v) to supply funds to or in
any other manner invest in such other Person (including to pay for property or services irrespective of whether such property is received or such services are rendered), if in the case of any agreement described under subclauses (i), (ii), (iii),
(iv) or (v) of clause (b) of this sentence the primary purpose or intent thereof is as described in the preceding sentence. The amount of any Guaranty Obligation shall be equal to the amount of the Indebtedness so guaranteed or otherwise supported.

  
 “Hedging Contracts” means all
Interest Rate Contracts, foreign exchange contracts, currency swap or option agreements, forward contracts, commodity swap, purchase or option agreements, other commodity price hedging arrangements, and all other similar agreements or arrangements
designed to alter the risks of any Person arising from fluctuations in interest rates, currency values or commodity prices. 
  
 “Holding Companies” means, prior to the completion of the Permitted IPO Reorganization collectively, US Holdco, Memec Group
Holdings, Memec Holdings, Memec Limited, Overseas Holdco and BV Co. and following the completion of the Permitted IPO Reorganization, collectively, Memec US PubCo, US Holdco, Overseas Holdco, Memec Group Holdings and BV Co.. 
  
 “Hong Kong Holdco” means a new company with limited
liability organized by BV Co. under the laws of Hong Kong to be the holding company for certain members of the Group from and after the Initial Public Offering, as more fully described in the PWC Reorganization Paper. 
  
 “Indebtedness” of any Person means without
duplication (a) all indebtedness of such Person for borrowed money (including, for the avoidance of doubt, the funded portion of any off-balance sheet asset backed facility), (b) all obligations of such Person evidenced by notes, bonds, debentures
or similar instruments, (c) all reimbursement and all obligations with respect to letters of credit, bankers’ acceptances, surety bonds and performance bonds, whether or not matured, (d) all indebtedness for the deferred purchase price of
property or services, other than trade payables incurred in the ordinary course of business which are not more than ninety days overdue (other than such indebtedness or trade payables the amount or validity of which is currently being contested in
good faith), (e) all indebtedness of such Person created or arising under any conditional sale or other title retention agreement with respect to property acquired by such Person (even though the rights and remedies of the seller or lender under
such agreement in the event of default are limited to repossession or sale of such property), (f) all Capital Lease Obligations of 
  

 26 

 such Person and the present value of future rental payments under all synthetic leases, (g) all Guaranty Obligations of
such Person in respect of obligations of the types described in clauses (a) through (f) above, (h) all obligations of such Person to purchase, redeem, retire, defease or otherwise acquire for value any Stock or Stock Equivalents of such Person,
valued, in the case of redeemable preferred stock, at the greater of its voluntary or involuntary liquidation preference plus accrued and unpaid dividends, and (i) all Indebtedness of the type referred to above secured by (or for which the holder of
such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien upon or in property (including Accounts and general intangibles) owned by such Person, even though such Person has not assumed or become liable for the
payment of such Indebtedness. 
  
 “Indemnified
Matters” has the meaning specified in Section 11.4(a) 
  
 “Indemnitees” has the meaning specified in Section 11.4(a). 
  
 “Ineligible Inventory” means and includes: 
  
 (a) Distributor Credit Reserve Inventory; 
  
 (b) goods returned or rejected by customers other than goods that are undamaged or are resaleable in the normal course of business;

  
 (c) goods to be returned to suppliers;

  
 (d) goods in transit; 
  
 (e) goods located, stored, used or held at the premises of a
third party (other than Third-Party Inventory) unless Landlord Waivers or Bailee Waivers, in respect of Inventory located in the United States, or equivalent waivers in the applicable jurisdiction outside the United States (if required to obtain a
fully perfected security interest), have been received by the Collateral Agent and are in a form satisfactory to the Collateral Agent; 
  
 (f) excess, obsolete or aged Inventory calculated as the sum of (i) 15% of Inventory on hand greater than ninety days with sales equal to
less than 10% of its corresponding current balance during the last ninety days and (ii) 50% of Inventory on hand greater than 180 days with sales equal to less than 10% of its corresponding current balance during last 180 days; 
  
 (g) damaged, defective, or goods classified as quarantine
inventory; 
  
 (h) packing or shipping materials
or supplies and spares; 
  
 (i) inventory subject
to Vendor Title Retention; 
  
 (j) Ineligible
Third-Party Inventory; 
  

 27 

 (k) supplier credits which have not been received for purchase volume discounts or other
discounts earned but not yet deducted from Inventory Value or otherwise reflected in the Group’s perpetual Inventory reports; 
  
 (l) Inventory that is not owned solely by the Group Member, that the Group Member does not have sole and good, valid and unencumbered
title thereto, or is not subject to a valid and perfected first priority Lien in favor of the Collateral Agent; and 
  
 (m) any portion of the Inventory that is attributable to intercompany profit among the Group Members or their Affiliates. 
  
 “Ineligible Third-Party Inventory” means (i) the
Inventory Value of all Third Party Inventory minus (ii) an amount equal the Inventory Value of such Third Party Inventory which is located at up to 35 such third party customer’s or service provider’s premises, but only to the extent that
75% of such amount is covered by fully executed Bailee Waivers, in respect of Inventory located in the United States, or equivalent waivers in the applicable jurisdiction outside the United States (if required to obtain a fully perfected security
interest). 
  
 “Initial Public Offering”
means an underwritten public offering by any Group Member or direct or indirect Holding Company of a Group Member of capital stock representing equity interests in any Group Member to be listed and/or traded on any recognized investment exchange or
any recognized stock exchange or recognized market for trading securities in any jurisdiction. 
  
 “Intercompany Loans” has the meaning specified in Section 4.15(a). 
  
 “Intercreditor Agreements” means, collectively, the Securitization Intercreditor Agreement and the
Priorities Intercreditor Agreement. 
  
 “Interest
Coverage Ratio” means, with respect to any Person for any period, the ratio of (a) EBITDA of such Person for such period to (b) the Cash Interest Expense of such Person for such period. 
  
 “Interest Expense” means, for any Person for any
period, (a) total interest expense of such Person and its Subsidiaries for such period determined on a consolidated basis in conformity with GAAP and including, in any event, interest capitalized during such period (except, for the avoidance of
doubt, any capitalized or rolled-up interest under the Consortium Loans or the Investor Discount Bonds), (ii) net costs under Interest Rate Contracts for such period and (iii) interest expense in respect of the funded portion of any off-balance
sheet asset backed facility, minus (b) the sum of (i) net gains of such Person and its Subsidiaries under Interest Rate Contracts for such period determined on a consolidated basis in conformity with GAAP plus (ii) any interest income of such Person
and its Subsidiaries for such period determined on a consolidated basis in conformity with GAAP. 
  

 28 

 “Interest Period” means (a) initially, the period commencing on the date any
Loan is made and ending one, two, three or six months thereafter, as selected by the applicable Borrower in its Notice of Borrowing or Notice of Continuation given to the Applicable Facility Agent pursuant to Section 2.2 or Section 2.12, and (b)
thereafter, if such Loan is continued, in whole or in part, a period commencing on the last day of the immediately preceding Interest Period therefor and ending one, two, three or six months thereafter, as selected by the applicable Borrower in its
Notice of Continuation given to the Applicable Facility Agent pursuant to Section 2.12; provided, however, that all of the foregoing provisions relating to Interest Periods in respect of Loans are subject to the following: 
  
 (a) if any Interest Period would otherwise end on a day
which is not a Business Day, such Interest Period shall be extended to the next succeeding Business Day, unless the result of such extension would be to extend such Interest Period into another calendar month, in which event such Interest Period
shall end on the immediately preceding Business Day; 
  
 (b) any Interest Period that begins on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall end on the last Business Day
of a calendar month; 
  
 (c) no Borrower may
select any Interest Period that ends after the date of a scheduled principal payment on the Loans as set forth in Article II unless, after giving effect to such selection, the aggregate unpaid principal amount of the Loans for which Interest Periods
end after such scheduled principal payment shall be equal to or less than the principal amount to which the Loans are required to be reduced after such scheduled principal payment is made; 
  
 (d) no Borrower may select any Interest Period that ends (i)
in the case of Revolving Loans, after the Revolving Credit Termination Date or (ii) in the case of Term Loans, after the Term Loan Maturity Date; and 
  
 (e) from the Effective Date until the Syndication Completion Date, “Interest Period” shall mean the period
commencing on the borrowing or conversion date, as the case may be, with respect to all Loans, and ending seven or fourteen days or one month thereafter, as selected by the applicable Borrower in its Notice of Borrowing or Notice of Continuation, as
the case may be, given with respect thereto, and agreed to by the Applicable Facility Agent. 
  
 “Interest Rate Contracts” means all interest rate swap agreements, interest rate cap agreements, interest rate collar agreements and interest rate insurance. 
  
 “Inventory” has the meaning specified in the
Borrower Security Agreement. 
  

 29 

 “Inventory Value” means, with respect to any Inventory of the Group, the value
of such Inventory valued at the lower of cost and market value as presented on the Group’s perpetual Inventory reports, accounted for (net of any intercompany or affiliate profits) on a first in, first out basis, less (A) a reserve for
shrinkage calculated by multiplying (i) the historical shrinkage rate resulting from physical inventories performed during the most current six months by (ii) current total gross Inventory. 
  
 “Investment” means, with respect to any Person, (a)
any purchase or other acquisition by that Person of (i) any Security issued by, (ii) a beneficial interest in any Security issued by, or (iii) any other equity ownership or partnership interest in, any other Person, (b) any purchase by that Person
of all or a significant part of the assets of a business conducted by another Person, and (c) any loan, advance (other than deposits with financial institutions available for withdrawal on demand, prepaid expenses, accounts receivable and similar
items made or incurred in the ordinary course of business as presently conducted), or capital contribution by that Person to any other Person, including all Indebtedness to such Person arising from a sale of property by such Person other than in the
ordinary course of its business. 
  
 “Investment
Agreement” means the Investment Agreement dated as of August 4, 2000, as amended on or prior to the Amendment Closing Date, among Memec Group Holdings, Memec Holdings, the other parties signatory thereto as Managers and Investors, and
Schroder Advisers. 
  
 “Investor Discount
Bonds” means, collectively, (i) the Shareholder Discount Bonds and (ii) the Mezzanine Discount Bonds. 
  
 “IPO Documentation” means the prospectus and any other related documents and agreements, in such terms as are reasonably
satisfactory to the Facility Agents, in respect of the Initial Public Offering of the shares of Memec US PubCo. 
  
 “IPO Leverage Ratio” means, as at the most recently completed Fiscal Quarter for which Financial Statements have been delivered
hereunder prior to the date of an Initial Public Offering but giving pro forma effect to the Permitted IPO Reorganization, the completion of the Initial Public Offering and any Term Loan Borrowings as at the Amendment Closing Date for the Group the
ratio of (a) Financial Covenant Debt of the Group minus cash and Cash Equivalents of the Group on deposit with financial institutions in any Eligible Jurisdiction, in each case as of the last day of such period to (b) EBITDA for the Group for such
period; provided however, that in respect of each of the Fiscal Quarters ending on 03/31/04, 06/30/04, 09/30/04 and 12/31/04 only and for the purposes of the calculations of EBITDA for each such Fiscal Quarter, Consolidated Net Income shall
be determined without the deduction of Reorganization Costs and without the addition or deduction of non-cash charges or gains relating to provisions for inventory obsolescence. 
  
 “IRS” means the Internal Revenue Service of the United States or any successor thereto. 

 
 “Issuer” means each Lender or Affiliate of a
Lender that (a) is listed on the signature pages hereof as an “Issuer” or (b) hereafter becomes an Issuer with 
  

 30 

 the approval of the Senior A Facility Agent and the Borrowers by agreeing pursuant to an agreement with and in form and
substance satisfactory to the Senior A Facility Agent and the Borrowers to be bound by the terms hereof applicable to Issuers. 
  
 “Japanese Receivables Facilities” means one or more third party financing facilities equal to a maximum aggregate amount
outstanding at any time of 5 billion Yen pursuant to which one or more Group Members incorporated in Japan obtain financing, in form and substance reasonably acceptable to the Senior A Facility Agent. 
  
 “JPMorgan” has the meaning specified in the
preamble. 
  
 “Kroner” means the lawful
currency of Sweden. 
  
 “Kroner Sublimit”
shall mean, with respect to the portion of the Revolving Credit Outstandings that is denominated in Kroner, a maximum aggregate outstanding amount of such Revolving Credit Outstandings, the Dollar Equivalent of which shall not exceed, without
duplication, (i) in the case of the Revolving Credit Outstandings, $7,500,000 and (ii) in the case of the Letter of Credit Outstandings, $7,500,000. 
  
 “Landlord Waiver” means a letter in form and substance acceptable to the Collateral Agent, executed by a landlord in respect of
Inventory of any Borrower located at any leased premises of any Group Member pursuant to which such landlord, among other things, waives any Lien such landlord may have in respect of such Inventory. 
  
 “Leases” means, with respect to any Person, all of
those leasehold estates in Real Property of such Person, as lessee, as such may be amended, supplemented or otherwise modified from time to time. 
  
 “Lender” means each financial institution or other entity that (a) is listed on the signature pages hereof as a
“Lender” or (b) from time to time becomes a party hereto by execution of an Assignment and Acceptance; and “Lenders” means the Term Loan Lenders, the Revolving Credit Lenders and the Ancillary Lenders.

  
 “Lender Affiliate” means, (a) with
respect to any Lender, (i) an Affiliate of such Lender or (ii) any entity (whether a corporation, partnership, trust or otherwise) that is engaged in making, purchasing, holding or otherwise investing in bank loans and similar extensions of credit
in the ordinary course of its business and is administered or managed by a Lender or an Affiliate of such Lender and (b) with respect to any Lender that is a fund which invests in bank loans and similar extensions of credit, any other fund that
invests in bank loans and similar extensions of credit and is managed by the same investment advisor as such Lender or by an Affiliate of such investment advisor. 
  
 “Lending Office” means, with respect to any Lender, the office of such Lender specified as its
“Lending Office” opposite its name on Schedule II or on the Assignment and Acceptance by which it became a Lender or such other office of such Lender as such Lender may from time to time specify to the Borrowers and the
Applicable Facility Agent. 
  

 31 

 “Letter of Credit” means any letter of credit issued pursuant to Section 2.4.

  
 “Letter of Credit Obligations” means,
at any time, the aggregate of all liabilities at such time of the Borrowers to all Issuers with respect to Letters of Credit, whether or not any such liability is contingent, and includes the sum of (a) the Reimbursement Obligations at such time and
(b) the Letter of Credit Undrawn Amounts at such time. 
  
 “Letter of Credit Reimbursement Agreement” has the meaning specified in Section 2.4(e). 
  
 “Letter of Credit Request” has the meaning specified in Section 2.4(c). 
  
 “Letter of Credit Undrawn Amounts” means, at any
time, the aggregate undrawn face amount of all Letters of Credit outstanding at such time. 
  
 “Leverage Ratio” means, with respect to any Person for any period, the ratio of (a) Financial Covenant Debt of such Person, minus cash and Cash Equivalents of such Person on deposit with
financial institutions in any Eligible Jurisdiction, in each case as of the last day of such period to (b) EBITDA for such Person for such period. 
  
 “Lien” means any mortgage, deed of trust, pledge, hypothecation, assignment, charge, deposit arrangement, encumbrance, lien
(statutory or other), security interest or preference, priority or other security agreement or preferential arrangement of any kind or nature whatsoever intended to assure payment of any Indebtedness or other obligation, including any conditional
sale or other title retention agreement. 
  
 “Loan” means any loan made by any Lender pursuant to this Agreement, including Revolving Loans, Term Loans and Ancillary Advances. 
  
 “Loan Documents” means, collectively, this Agreement, the Notes (if any), the Guaranty, the
Subordination Deed, each Fee Letter, each Intercreditor Agreement, each Letter of Credit Reimbursement Agreement, each Hedging Contract to which a Loan Party and a Lender or an Affiliate of a Lender is a party, each Ancillary Facility Document, each
Daylight Facility Agreement (if any), the Collateral Documents, each Accession Agreement and each agreement executed by a Loan Party and delivered to the Facility Agents, the Collateral Agent or any Lender in connection with or pursuant to any of
the foregoing. 
  
 “Loan Party” means
each Borrower, each of the Acquisition Entities, each Subsidiary Guarantor and each other Subsidiary of an Acquisition Entity that executes and delivers any Loan Document. 
  

 32 

 “Management Front Sheets” means the management financial information produced
for the Group on a monthly basis, including profit and loss information and selected balance sheet data. 
  
 “Mandatory Costs” means, in relation to any Loan or unpaid sum, the rate per annum determined in accordance with Schedule 1.1(e).

  
 “Margin Leverage Ratio” means, with
respect to any Person for any period, the ratio of (a) Financial Covenant Debt of such Person as of the last day of such period to (b) EBITDA for such Person for such period. 
  
 “Margin Stock” has the meaning specified in Regulation U of the Federal Reserve Board. 

 
 “Material Adverse Change” means a material
adverse change in any of (a) the business, condition (financial or otherwise), operations, performance or properties of the Group taken as a whole or (b) the ability of any Borrower to repay the Obligations or of any Loan Party to perform its
payment obligations under any Loan Document or its obligations under Article V below. 
  
 “Material Adverse Effect” means an effect that results in or causes, or could reasonably be expected to result in or cause, a Material Adverse Change. 
  
 “Material Subsidiary” means, at any time and from
time to time, any direct or indirect wholly-owned Subsidiary of the Applicable Memec Parent owning at least 5% of Total Assets or generating at least 5% of EBITDA of the Group on a consolidated basis, in each case by reference to the most recently
delivered Financial Statements pursuant to Section 3.1(g) or Section 6.1, as the case may be; provided, however, that Triangle Funding shall not at any time be deemed to be a Material Subsidiary. 
  
 “Maximum Credit” means the lesser of (A) the
Revolving Credit Commitments in effect at such time, plus the Term A Loan Commitments at such time and (B) the Borrowing Base at such time. 
  
 “Memec” means Memec Europe Limited (formerly known as Memec (Memory & Electronic Components) Limited), a company organized
under the laws of England and Wales with registration number 01507861. 
  
 “Memec Acquisition” means the purchase by the Acquisition Entities of all of the outstanding capital stock of the Group. 
  
 “Memec France” means Memec France SAS, a limited company organized under the laws of France with registration number B 330 656
638. 
  
 “Memec Germany” means Memec
GmbH, a limited company organized under the laws of Germany with registration number HRB 133740 of the Local Court of Munich. 
  
 “Memec Group Holdings” has the meaning specified in the preamble. 
  

 33 

 “Memec Holdings” has the meaning specified in the preamble. 
  
 “Memec Limited” has the meaning specified in the
preamble. 
  
 “Memec LLC” means Memec
LLC, a limited liability company organized under the laws of the State of Delaware. 
  
 “Memec US PubCo” means the new company to be organized by Memec Group Holdings under the laws of the State of Delaware to be the ultimate holding company for the Group from and after the
Initial Public Offering, as more fully described in the PWC Reorganization Paper. 
  
 “Mezzanine Discount Bonds” means the $452,212,000 Deep Discount Bonds 2011 issued by Memec Holdings payable to the Discount Bondholders in the aggregate issue price of $130,000,000 pursuant to
an instrument dated on or about the Original Closing Date. 
  
 “MidCo Loan Agreement” means the Equity Loan Agreement dated as of the Original Closing Date between Memec Holdings and Memec Limited pursuant to which Memec Holdings lends to Memec Limited the proceeds invested in
Memec Holdings pursuant to (i) the Investor Discount Bonds and (ii) the Consortium Loans. 
  
 “Moody’s” means by Moody’s Investors Services, Inc. and includes any successor to its ratings business. 
  
 “Mortgages” means the mortgages, deeds of trust or other real estate Collateral Documents made or
required herein to be made by any Loan Party. 
  
 “Multicurrency Loan” means a Revolving Loan made in an Alternative Currency. 
  
 “Multicurrency Sublimit” means, collectively, the Kroner Sublimit and the Yen Sublimit. 
  
 “Multiemployer Plan” means a multiemployer plan, as
defined in Section 4001(a)(3) of ERISA, to which the Applicable Memec Parent, any of its Subsidiaries or any ERISA Affiliate has any obligation or liability, contingent or otherwise. 
  
 “National Currency Unit” means, in relation to a member state of the European Union that has
adopted or adopts the single currency in accordance with the Treaty, the national currency unit of such member state. 
  
 “Net Cash Proceeds” means proceeds received by any Loan Party after the Closing Date in cash or Cash Equivalents from any (a)
Property Loss Event, Warranty Event or Asset Sale (other than an Asset Sale permitted under clauses (a) through (f) of Section 8.4 or any other Asset Sale in respect of which the consideration received is less than $250,000), net of (i) the
reasonable cash costs of sale, assignment or other disposition, (ii) taxes paid or payable as a result thereof and (iii) any amount required to be paid or prepaid on Indebtedness (other than the 
  

 34 

 Obligations) secured by the assets subject to such Property Loss Event, Warranty Event or Asset Sale; provided,
however, that the evidence of each of the foregoing clauses (i), (ii) and (iii) are provided to the Facility Agents in form and substance reasonably satisfactory to them, or (b) Debt Issuance (other than any Debt Issuance expressly permitted
under Section 8.1), net of brokers’ and advisors’ fees and other costs incurred in connection with such transaction; provided, however, that evidence of such costs is provided to the Facility Agents in form and substance reasonably
satisfactory to them. 
  
 “New Collateral
Document” has the meaning specified in Section 3.1(a)(iv). 
  
 “New Permitted IPO Reorganization Collateral Document” has the meaning specified in Section 7.11(a). 
  
 “Non-Cash Interest Expense” means, with respect to any Person for any period, the sum of the following amounts to the extent
included in the calculation of Interest Expense of such Person for such period: (a) the amount of debt discount and debt issuances costs amortized, (b) charges relating to write-ups or write-downs in the book or carrying value of existing Financial
Covenant Debt and (c) interest payable in evidences of Indebtedness or by addition to the principal of the related Indebtedness. 
  
 “Non-Consenting Lender” has the meaning specified in Section 11.1(c). 
  
 “Non-Funding Lender” has the meaning specified in
Section 2.2(f). 
  
 “Non-U.S. Lender”
means each Lender or Facility Agent that is not a United States person as defined in Section 7701(a)(30) of the Code. 
  
 “Note” means any Revolving Credit Note or Term Loan Note. 
  
 “Notice of Borrowing” has the meaning specified in Section 2.2(a). 
  
 “Notice of Continuation” has the meaning specified
in Section 2.12. 
  
 “Obligations” means
the Loans, the Letter of Credit Obligations and all other amounts, obligations, covenants and duties owing by the Borrowers to the Facility Agents, the Collateral Agent, any Lender, any Issuer, any Affiliate of any of them or any Indemnitee, of
every type and description (whether by reason of an extension of credit, opening or amendment of a Letter of Credit or payment of any draft drawn thereunder, loan, guaranty, indemnification, foreign exchange or currency swap transaction, interest
rate hedging transaction or otherwise), present or future, arising under this Agreement, any other Loan Document, any Hedging Contract, any Daylight Facility Agreement, any agreement for cash management services entered into in connection with this
Agreement or any other Loan Document, whether direct or indirect (including those acquired by assignment), absolute or contingent, due or to become due, now existing or hereafter arising and however acquired and whether or 
  

 35 

 not evidenced by any note, guaranty or other instrument or for the payment of money, and includes all letter of credit,
cash management and other fees, interest, charges, expenses, fees, attorneys’ fees and disbursements and other sums chargeable to the Borrower under this Agreement, any other Loan Document, any Hedging Contract or any agreement for cash
management services entered into in connection with this Agreement or any other Loan Document and all obligations of the Borrower to cash collateralize Letter of Credit Obligations. 
  
 “Original Borrowers” has the meaning specified in the second recital. 
  
 “Original Borrower Security Agreement” means the
Pledge and Security Agreement dated as of the Original Closing Date, in agreed terms, governed by New York law, between Memec LLC and the Collateral Agent. 
  
 “Original Closing Date” has the meaning specified in the first recital. 
  
 “Original Credit Agreement” has the meaning
specified in the second recital. 
  
 “Original Dollar
Amount” means, in relation to a Loan denominated in Dollars, the amount of such Loan requested in a Notice of Borrowing with respect thereto, or, if such Loan is not denominated in Dollars, the Dollar Equivalent of such amount in
Dollars, calculated as of the date of such Notice of Borrowing. 
  
 “Original Due Diligence Reports” means, in respect of the Existing Credit Agreement, the accountant’s report, market report, environmental report, Disaster Recovery Report, Tax Structuring Paper, insurance
report, legal report and such other due diligence reports which were designated as such by Memec Holdings and the Administrative Agent. 
  
 “Original Lenders” has the meaning specified in the second recital. 
  
 “Original Projections” means those financial projections dated the Original Closing Date covering
the Fiscal Years ending in 2000 through 2007 inclusive (on a quarterly basis for the first two Fiscal Years and an annual basis for the following five Fiscal Years), and delivered to the Facility Agents by the Borrowers. 
  
 “Other Taxes” has the meaning specified in Section
2.17(b). 
  
 “Overseas Holdco” means
Memec Overseas Holdings Limited (formerly known as Spirepark Limited), a company incorporated under the laws of England and Wales with registration number 3936296. 
  
 “Overseas Operating Companies” means each of the Subsidiaries of Overseas Holdco listed on Part B
of Schedule 1.1(b). 
  
 “PBGC” means the
Pension Benefit Guaranty Corporation or any successor thereto. 
  

 36 

 “Permira Group” means Permira Europe Fund II Nominees, Permira UK VF IV
Nominees, SV-US Fund 1 and SV-US Fund 2 or any of the subsidiaries of any of them or any partnerships, unit trusts, collective investment scheme or companies of which any of them is general partner, trustee, manager, advisor or consultant (the
“Defined Group”), or any nominee or trustee for any of the Defined Group. 
  
 “Permit” means any permit, approval, authorization, license, variance or permission required from a Governmental Authority under
an applicable Requirement of Law. 
  
 “Permitted 2001
Reorganization” means the reorganization of certain Group Members to be completed on or before March 31, 2001, as more specifically set forth on Schedule 1.1(f). 
  
 “Permitted Acquisition” means the acquisition by any Group Member of all or substantially all of
the assets or Stock of any Person or of any operating division thereof, (other than the Memec Acquisition) (the “Target”), or the merger of the Target with or into such Group Member (with such Group Member being the surviving
corporation) subject to the satisfaction of each of the following conditions: 
  
 (a) the purchase price consideration in connection with such acquisition or merger does not exceed, for one transaction or a series of transactions, $20,000,000; 
  
 (b) the Facility Agents shall receive at least fourteen days prior written
notice of such proposed acquisition, which notice shall include a reasonably detailed description of such proposed acquisition; 
  
 (c) such Permitted Acquisition shall only involve assets of a business, of the type engaged in by the Group Members as of the Amendment Closing Date;

  
 (d) such Permitted Acquisition shall be non-hostile and shall
have been approved by the board of directors of the Applicable Memec Parent; 
  
 (e) no additional Indebtedness or other liabilities shall be incurred, assumed or otherwise be reflected on a consolidated balance sheet of the Group after giving effect to such Permitted Acquisition, except ordinary
course trade payables, accrued expenses and Indebtedness of the Target not incurred in contemplation of such Permitted Acquisition and otherwise permitted under Section 8.1; 
  
 (f) the sum of all amounts payable in connection with all Permitted Acquisitions (including all transaction costs and all
Indebtedness, liabilities and Guaranty Obligations incurred or assumed in connection therewith or otherwise reflected in a consolidated balance sheet of the Group and Target) shall not exceed $50,000,000; 
  

 37 

 (g) at or prior to the closing of any Permitted Acquisition, the Group Member making the Permitted
Acquisition and the Target shall have executed such documents and taken such actions as may be required under Section 7.11, Section 7.13 and Section 7.14; 
  
 (h) concurrently with delivery of the notice referred to in clause (g) above, for any transaction or series of transactions with purchase price
consideration exceeding $5,000,000, the Borrowers shall have delivered to the Facility Agents, (A) pro forma financial statements of the Group for the Fiscal Year in which the Permitted Acquisition occurs, showing compliance with all covenants in
Article V (after giving effect to such Permitted Acquisition), and (B) such other financial information, financial analysis, documentation or other information relating to such Permitted Acquisition as the Facility Agents shall reasonably request in
form and substance satisfactory to the Facility Agents; and 
  
 (i) at the time of such Permitted Acquisition and after giving effect thereto, (i) no Default or Event of Default shall have occurred and be continuing, and (ii) all representations and warranties contained in Article IV and in the other
Loan Documents shall be true and correct in all material respects. 
  
 “Permitted IPO Payments” means the amounts paid or to be paid in accordance with and as set forth in the sources and uses from the IPO Documentation and reasonably satisfactory to the Facility Agents. 
  
 “Permitted IPO Reorganization” means the
reorganization of certain Group Members to be completed in connection with the Initial Public Offering of Memec US PubCo, as more specifically set forth in the PWC Reorganization Paper and summarized on Schedule 1.1(f). 
  
 “Permitted Refinancings” has the meaning specified
Section 4.13. 
  
 “Permitted Term B
Payments” means any payment of principal or interest on the Term B Loans permitted by the express provisions of the Priorities Intercreditor Agreement. 
  
 “Person” means an individual, partnership, corporation (including a business trust), joint stock
company, estate, trust, limited liability company, unincorporated association, joint venture or other entity, or a Governmental Authority. 
  
 “Pledged Notes” has the meaning specified in the Borrower Security Agreement. 
  
 “Pledged Stock” has the meaning specified in the
Borrower Security Agreement. 
  
 “Preferential
Creditor Liabilities Reserve” means, as applicable to each Eligible Jurisdiction under its Requirements of Law, creditors which may have a priority claim to the Collateral pledged or secured in favor of the Collateral Agent, including,
but not limited to, unpaid payroll and accrued vacation liabilities, unsecured creditors’ carve outs, unpaid severance or pension funding obligations, unpaid payroll tax, and unpaid social insurance contributions. 
  

 38 

 “Prepayment Premium” has the meaning specified in Section 2.13(e). 

 
 “Presentation” means a PowerPoint presentation
dated 15 May 2003 and entitled “Cost Reduction Program: Update for Lender Banks” and presented by Memec Group Limited to the Lenders relating to its cost reduction program. 
  
 “Priorities Intercreditor Agreement” means the Intercreditor Agreement dated as of the Amendment
Closing Date, among, inter alios, Memec Europe, Memec Limited, the other Loan Parties, the Lenders, the Facility Agents and the Collateral Agent. 
  
 “Proceeds” has the meaning specified in the Borrower Security Agreement. 
  
 “Process Agent” has the meaning specified in Section
11.12(b). 
  
 “Projections” means,
collectively, the Amendment Date Projections and the Original Projections. 
  
 “Property Loss Event” means any loss of or damage to property of any Loan Party that results in the receipt by such Person of proceeds of insurance in excess of $10,000,000 or any taking of
property of any Loan Party that results in the receipt by such Person of a compensation payment in respect thereof in excess of $10,000,000. 
  
 “Proposed Change” has the meaning specified in Section 11.1(c). 
  
 “Protective Advances” means all expenses, disbursements and advances incurred by the either
Facility Agent pursuant to the Loan Documents after the occurrence and during the continuance of an Event of Default which either Facility Agent, in its sole discretion, deems necessary or desirable to preserve or protect the Collateral or any
portion thereof or to enhance the likelihood or maximize the amount of repayment of the Obligations. 
  
 “Purchasing Lender” has the meaning specified in Section 11.7(a). 
  
 “PWC Reorganization Paper” means the proposed reorganization steps paper by PricewaterhouseCoopers
dated on or prior to the Amendment Closing Date setting out the proposed steps for the reorganization of the Group and delivered to the Facility Agents on or before the Amendment Closing Date. 
  
 “Qualifying Lender” means a Person which on any date
on which interest is payable under this Agreement is beneficially entitled to the interest payable under this Agreement and is a Bank, a UK Lender or a Treaty Lender. 
  
 “Ratable Portion” or “ratably” means, with respect to any Lender at any
time, the percentage obtained by dividing the Commitment of such Lender by the 
  

 39 

 Commitments of all Lenders and, at any time after the first Loan is made or Letter of Credit is issued hereunder, the
proportion which the outstanding Original Dollar Amount of the Loans and Letter of Credit Obligations owing to such Lender bears to the outstanding aggregate Original Dollar Amount of all Loans and Letter of Credit Obligations owing to all Lenders.

  
 “Real Property” means all of those
plots, pieces or parcels of land now owned, leased or hereafter acquired or leased by any Loan Party (the “Land”), together with the right, title and interest of such Loan Party, if any, in and to the streets, the land lying
in the bed of any streets, roads or avenues, opened or proposed, in front of, the air space and development rights pertaining to the Land and the right to use such air space and development rights, all rights of way, privileges, liberties,
tenements, hereditaments and appurtenances belonging or in any way appertaining thereto, all fixtures, all easements now or hereafter benefiting the Land and all royalties and rights appertaining to the use and enjoyment of the Land, including all
alley, vault, drainage, mineral, water, oil and gas rights, together with all of the buildings and other improvements now or hereafter erected on the Land, and any fixtures appurtenant thereto. 
  
 “Receivables Availability Certificate” means the
certificate by a Responsible Officer of the Applicable Memec Parent setting forth the calculation of receivables availability in the form of Exhibit H, with such amendments as the Collateral Agent may approve or reasonably require.

  
 “Receivables Purchase Agreement”
means (i) the UK Receivables Agreement, (ii) the US Receivables Purchase Agreement and (iii) each other similar agreement entered into from time to time in accordance with the terms of the Asset Backed Loan Agreement. 
  
 “Receivables Purchase Facility” means the asset
backed trade receivables purchase and pooling facilities pursuant to each Receivables Purchase Agreement, and shall include any similar facilities in respect of any Loan Party entered into after the Original Closing Date in form and substance
substantially the same as the form of the facilities under the Receivables Purchase Agreement. 
  
 “Receivables Sale” means any sale, conveyance, transfer or disposal of accounts receivable pursuant to the Receivables Purchase
Agreement other than from an Original Receivables Jurisdiction. For the avoidance of doubt, “Receivables Sale” of any Group Member does not include the daily sale of accounts receivable subsequent to the initial sale thereof
by such Group Member pursuant to the Receivables Purchase Agreement. 
  
 “Receivables Transaction Documents” has the meaning specified for the term “Transaction Documents” in the Asset-Backed Loan Agreement. 
  
 “Register” has the meaning specified in Section
11.2(c). 
  
 “Regulation S-X” means
Regulation S-X promulgated by the Securities and Exchange Commission under the Securities Act. 
  

 40 

 “Reimbursement Obligations” means all matured reimbursement or repayment
obligations of any Borrower to any Issuer with respect to amounts drawn under Letters of Credit. 
  
 “Reinvestment Deferred Amount” means, with respect to any Reinvestment Event, the aggregate Net Cash Proceeds received by any
Group Member in connection therewith which are not initially applied to prepay the Loans pursuant to Section 2.10 as a result of the delivery of a Reinvestment Notice. 
  
 “Reinvestment Event” means any Asset Sale, Property Loss Event or Warranty Event in respect of
which a Borrower has delivered a Reinvestment Notice. 
  
 “Reinvestment Notice” means a written notice executed by a Responsible Officer of a Borrower stating that (i) no Default or Event of Default has occurred and is continuing and (ii) the applicable Group Member intends
and expects to use all or a specified portion of the Net Cash Proceeds of an Asset Sale, Warranty Event or Property Loss Event to acquire replacement assets useful in its businesses, effect repairs (in the case of a Property Loss Event or Warranty
Event) or to discharge a liability, charge or claim or reimburse the discharge of such claim (in the case of a Warranty Event). 
  
 “Reinvestment Prepayment Amount” means, with respect to any Reinvestment Event, the Reinvestment Deferred Amount relating thereto
less any amount expended or required to be expended pursuant to a Contractual Obligation entered into prior to the relevant Reinvestment Prepayment Date to acquire replacement assets, effect repairs, reimburse payments or discharge liabilities as
contemplated by the relevant Reinvestment Notice. 
  
 “Reinvestment Prepayment Date” means, with respect to any Reinvestment Event, the earlier of (i) the date occurring 180 days after such Reinvestment Event and (ii) the date five Business Days after the date on which
a Borrower shall have notified the Facility Agents of the applicable Group Member’s determination not to acquire replacement assets useful in such Group Member’s business (or not to effect repairs in the case of a Property Loss Event) with
all or any portion of the relevant Reinvestment Deferred Amount. 
  
 “Related Documents” means the Acquisition Agreement, the Investment Agreement, the Consortium Agreement, the Consortium Loan Agreements, the Consortium Intercreditor Deed, the MidCo Loan Agreement, Investor Discount
Bonds, the Receivables Transaction Documents and each other document and instrument executed with respect thereto. 
  
 “Related Obligations” has the meaning specified in Section 10.8. 
  
 “Release” means, with respect to any Person, any release, spill, emission, leaking, pumping,
injection, deposit, disposal, discharge, dispersal, leaching or migration, in each case, of any Contaminant into the indoor or outdoor environment or into or out of any property owned by such Person, including the movement of Contaminants through or
in the air, soil, surface water, ground water or property. 
  

 41 

 “Remedial Action” means all actions required to (a) clean up, remove, treat or
in any other way address any Contaminant in the indoor or outdoor environment, (b) prevent the Release or threat of Release or minimize the further Release so that a Contaminant does not migrate or endanger or threaten to endanger public health or
welfare or the indoor or outdoor environment or (c) perform pre remedial studies and investigations and post remedial monitoring and care. 
  
 “Reorganization Costs” means, in respect of any Person for any Fiscal Year, the aggregate costs and expenses which are due and
payable during such period and which are (a) directly related or attributable to the termination, severance or cessation by such Person of contracts of employment or (b) which are described as ‘people related costs’ of page 9 of the
Presentation or (c) other costs and expenses provided, however, that in each case such costs and expenses arise in the context of a Group reorganization and restructuring as discussed in the Presentation. These aggregated costs and expenses
are for the Fiscal Quarters ending on 06/30/03, 09/30/03 and 12/31/03 as discussed in the Presentation and for the Fiscal Quarter ending 03/31/03 (provided, however, that such aggregated costs and expenses shall not exceed $2,023,000 for the
Fiscal Quarter ending 03/31/03). 
  
 “Reporting
Date” has the meaning specified in Section 4.4(a). 
  
 “Required Asset Coverage Percentage” means the requirement that at all times the aggregate amount of (i) the gross Inventory plus (ii) the gross Accounts of the Group Members located in Eligible Jurisdictions be
greater than or equal to 150.0% of all drawings under the Facilities. 
  
 “Requirement of Law” means, with respect to any Person, the common law and all federal, state, local and foreign laws, rules and regulations, orders, judgments, decrees and other determinations of any Governmental
Authority or arbitrator, applicable to or binding upon such Person or any of its property or to which such Person or any of its property is subject. 
  
 “Requisite Lenders” means, collectively, the Requisite Senior Lenders and the Requisite Term B Lenders. 
  
 “Requisite Senior Lenders” means, collectively,
Lenders having more than (a) 66 2/3% of the aggregate outstanding amount of the Revolving Credit Commitments or,
after the Revolving Credit Termination Date, 66 2/3% of the aggregate Revolving Credit Outstandings and (b)
66 2/3% of the Term A Loan Commitments or, after the Amendment Closing Date, 66 2/3% of the principal amount of all Term A Loans then outstanding. A Non-Funding Lender that is a Term A Lender or a
Revolving Credit Lender shall not be included in the calculation of “Requisite Senior Lenders.” 
  
 “Requisite Term B Lenders” means Lenders having more than 66 2/3% of the Term B Loan Commitments or, after the Amendment Closing Date, 66 2/3% of the principal amount of all Term B Loans then outstanding. A Non-Funding Lender that is a Term B Lender shall not be included in the calculation of Requisite Term B Lenders.

  

 42 

 “Responsible Officer” means, with respect to any Person, any of the principal
executive officers, managing members or general partners of such Person, but in any event, with respect to financial matters, the chief financial officer, treasurer or controller of such Person. 
  
 “Restricted Payment” means (a) any dividend or other
distribution, direct or indirect, on account of any Stock or Stock Equivalents of any Group Member now or hereafter outstanding, except a dividend payable solely in Stock or Stock Equivalents or a dividend or distribution payable solely to a
Borrower or any other Loan Party (excluding Memec Holdings and the Applicable Memec Parent), (b) any redemption, retirement, sinking fund or similar payment, purchase or other acquisition for value, direct or indirect, of any Stock or Stock
Equivalents of any Loan Party now or hereafter outstanding other than one payable solely to the Borrower or any other Loan Party (excluding Memec Holdings and the Applicable Memec Parent), and (c) any payment or prepayment of principal, premium (if
any), interest, fees (including fees to obtain any waiver or consent in connection with any Security) or other charges on, or redemption, purchase, retirement, defeasance, sinking fund or similar payment with respect to, any Indebtedness of any Loan
Party, other than any required redemptions, retirement, purchases or other payments, in each case to the extent permitted to be made by the terms of such Indebtedness after giving effect to any applicable subordination provisions. 
  
 “Revolving Credit Borrowing” means Revolving Loans
made on the same day by the Revolving Credit Lenders ratably according to their respective Revolving Credit Commitments. 
  
 “Revolving Credit Commitment” means, with respect to each Revolving Credit Lender, the commitment of such Revolving Credit Lender
to make Revolving Loans and acquire interests in other Revolving Credit Outstandings in the aggregate principal amount outstanding not to exceed the amount set forth opposite such Revolving Credit Lender’s name on Schedule I under the caption
“Revolving Credit Commitment,” as amended to reflect (i) each Assignment and Acceptance executed by such Revolving Credit Lender, and (ii) each establishment or termination of an Ancillary Facility, and as such amount may be
otherwise revised pursuant to this Agreement. 
  
 “Revolving Credit Commitment Period” means the period from the Amendment Closing Date to the date which is thirty days prior to the Revolving Credit Termination Date. 
  
 “Revolving Credit Facility” means the Revolving
Credit Commitments and the provisions herein related to the Revolving Loans and Letters of Credit. 
  
 “Revolving Credit Lender” means each Lender having a Revolving Credit Commitment. 
  
 “Revolving Credit Note” means a promissory note of
the Borrowers payable to the order of any Revolving Credit Lender requesting such promissory note, in a principal amount equal to the aggregate Indebtedness of the Borrowers to such Lender resulting from the Revolving Loans owing to such Lender.

  

 43 

 “Revolving Credit Outstandings” means, at any particular time, the sum of (a)
the Original Dollar Amount of the Revolving Loans outstanding at such time plus (b) the Letter of Credit Obligations outstanding at such time plus (c) the amount of the Ancillary Outstandings at such time. 
  
 “Revolving Credit Termination Date” shall mean the
earliest of (a) if the Amendment Closing Date has not occurred on or before the Commitment Termination Date, the Commitment Termination Date, (b) the date of termination of the Revolving Credit Commitments pursuant to Section 2.6, (c) the date on
which the Obligations become due and payable pursuant to Section 9.2 and (d) the Scheduled Revolving Credit Termination Date. 
  
 “Revolving Loan” has the meaning specified in Section 2.1(a). 
  
 “S&P” means Standard & Poor’s Rating Services, a division of The McGraw-Hill
Companies, Inc., and includes any successor to its ratings business. 
  
 “Scheduled Revolving Credit Termination Date” means the fifth anniversary of the Amendment Closing Date. 
  
 “Schroder Advisers” means Schroder Venture Advisers, a UK general unlimited partnership. 
  
 “Secured Obligations” means, in the case of the
Borrowers, the Obligations, and, in the case of any other Loan Party, the obligations of such Loan Party under the Guaranty and the other Loan Documents to which it is a party. 
  
 “Secured Parties” means the Lenders, the Issuers, the Facility Agents, the Collateral Agent and any
other holder of any of the Obligations. 
  
 “Securities Act” means the United States Securities Act of 1933, as amended. 
  
 “Securitization Intercreditor Agreement” means the Intercreditor Agreement dated as of the Original Closing Date, among Memec
LLC, Memec Limited, Memec UK Ltd., a company organized under the laws of England and Wales, Insight Electronics LLC, a Delaware limited liability company, Semiconductor Technologies LLC, a Delaware limited liability company, Unique Semiconductor
Technologies Inc., a LLC, a California corporation, the Administrative Agent, Chase, in its capacity as Receivables Agent, and Triangle Funding. 
  
 “Security” means any Stock, Stock Equivalent, voting trust certificate, bond, debenture, note or other evidence of Indebtedness,
whether secured, unsecured, convertible or subordinated, or any certificate of interest, share or participation in, or any temporary or interim certificate for the purchase or acquisition of, or any right to subscribe to, purchase or acquire, any of
the foregoing, but shall not include any evidence of the Obligations. 
  

 44 

 “Sellers” has the meaning specified in the first recital. 
  
 “Selling Lender” has the meaning specified in
Section 11.7(a). 
  
 “Senior A Facility
Agent” has the meaning specified in the preamble. 
  
 “Senior B Facility Agent” has the meaning specified in the preamble. 
  
 “Shareholder Discount Bonds” means the $403,414,000 Deep Discount Bonds 2011 issued by Memec Holdings payable to the Discount
Bondholders in the aggregate issue price of $190,000,000 pursuant to an instrument to be dated on or before the Original Closing Date. 
  
 “Shareholder Subordinated Debt” has the meaning specified in Section 8.1(l). 
  
 “Signing Date” means the date of the execution and
delivery of this Agreement, being May 5, 2004. 
  
 “Solvent” means, with respect to any Person, that the value of the assets of such Person (both at fair value and present fair saleable value) is, on the date of determination, greater than the total amount of
liabilities (including contingent and unliquidated liabilities) of such Person as of such date and that, as of such date, such Person is able to pay all liabilities of such Person as such liabilities mature and does not have unreasonably small
capital. In computing the amount of contingent or unliquidated liabilities at any time, such liabilities will be computed at the amount which, in light of all the facts and circumstances existing at such time, represents the amount that can
reasonably be expected to become an actual or matured liability. 
  
 “Specified Subsidiary” means (a) on the Amendment Closing Date, each Subsidiary set forth in Schedule 1.1(c), and (b) after the Amendment Closing Date, each other Subsidiary of the Applicable Memec Parent that grants
security to the Secured Parties and becomes a Loan Party hereto, whether mandatorily pursuant to Section 7.11 or voluntarily for the purpose of being included in the calculation of the Borrowing Base. 
  
 “Standby Letter of Credit” means any Letter of
Credit issued pursuant to Section 2.4 which is not a Documentary Letter of Credit. 
  
 “Sterling” and the sign “£” each mean the lawful money of the United Kingdom. 
  
 “Stock” means shares of capital stock (whether denominated as common stock or preferred stock),
beneficial, partnership or membership interests, participations or other equivalents (regardless of how designated) of or in a corporation, partnership, limited liability company or equivalent entity, whether voting or non voting. 
  

 45 

 “Stock Equivalents” means all securities convertible into or exchangeable for
Stock and all warrants, options or other rights to purchase or subscribe for any Stock, whether or not presently convertible, exchangeable or exercisable. 
  
 “Subordination Deed” means the Subordination Deed dated as of the Original Closing Date and amended as of the Amendment Closing
Date, in agreed terms, among Memec Holdings, Memec Limited and the Administrative Agent. 
  
 “Subsidiary” means, with respect to any Person, any corporation, partnership, limited liability company or other business entity of which an aggregate of 50% or more of the outstanding Voting
Stock is, at the time, directly or indirectly, owned or controlled by such Person and/or one or more Subsidiaries of such Person. Unless otherwise expressly provided, all references herein to a “Subsidiary” shall mean a
Subsidiary of the Applicable Memec Parent and any other corporation, partnership, limited liability company or other business entity (i) the accounts of which would be consolidated with those of such Person in such Person’s consolidated
financial statements if such statements were prepared in accordance with GAAP and (ii) that is controlled (as defined in the definition of “Affiliate”) by such Person. 
  
 “Subsidiary Guarantor” means each company that will,
on the Amendment Closing Date, be a direct or indirect Subsidiary of the Applicable Memec Parent and that is or will be a party to the Guaranty, as set forth on Schedule 1.1(d). 
  
 “SUKV Co-Investor” means Schroder UK Venture Fund IV Co-Investment Scheme. 
  
 “SUKV-IV” means Schroder UK Venture IV Trust.

  
 “SUKV-LP1” means Schroder UK Venture
Fund IV LP1. 
  
 “SUKV-LP2” means
Schroder UK Venture Fund IV LP2. 
  
 “SV-Euro Fund
1” means Schroder Ventures European Fund II L.P.1. 
  
 “SV-Euro Fund 2” means Schroder Ventures European Fund II L.P.2. 
  
 “SV-US Fund 1” means Schroder Ventures US Fund L.P.1. 
  
 “SV-US Fund 2” means Schroder Ventures US Fund L.P.2. 
  
 “Syndication Agent” has the meaning specified in the
preamble. 
  
 “Syndication Completion
Date” means the earlier to occur of (i) the 120th day following the Amendment Closing Date and (ii) the date upon which the Facility Agents and the Syndication Agent determine in their sole discretion that the primary syndication of the
Loans and Revolving Credit Commitments has been completed. 
  

 46 

 “Target” has the meaning specified in the definition of Permitted Acquisition.

  
 “Target Group” means each of the
Targets and their respective Subsidiaries. 
  
 “Tax
Affiliate” means, with respect to any Person, (a) any Subsidiary of such Person, and (b) any Affiliate of such Person with which such Person files or is eligible to file consolidated, combined or unitary tax returns. 
  
 “Tax Credit” has the meaning specified in Section
2.17(a). 
  
 “Tax Payment” has the
meaning specified in Section 2.17(a). 
  
 “Tax
Returns” has the meaning specified in Section 4.8(a). 
  
 “Tax Structuring Paper” means the tax structuring paper by Arthur Andersen LLP dated 6 August 2000 and delivered to the Administrative Agent on or before the Original Closing Date. 
  
 “Taxes” has the meaning specified in Section
2.17(a). 
  
 “Taxes Act” means the Income
and Corporation Taxes Act 1988. 
  
 “Term A
Loan” has the meaning specified in Section 2.1(b). 
  
 “Term A Loan Borrowing” means Term A Loans made on the same day by the Term A Loan Lenders ratably according to their respective Term A Loan Commitments. 
  
 “Term A Loan Commitment” means, with respect to each Term A Loan Lender, the commitment of such
Lender to make Term A Loans to the Borrowers in the aggregate principal amount outstanding not to exceed the amount set forth opposite such Lender’s name on Schedule I under the caption “Term A Loan Commitment” as
amended to reflect each Assignment and Acceptance executed by such Lender and as such amount may be reduced pursuant to this Agreement. 
  
 “Term A Loan Commitment Period” means the period from the Signing Date to the Commitment Termination Date. 
  
 “Term A Loan Facility” means the Term A Loan
Commitments and the provisions herein related to the Term A Loans. 
  
 “Term A Loan Lender” means each Lender having a Term A Loan Commitment. 
  
 “Term A Loan Maturity Date” means the fifth year anniversary of the Amendment Closing Date. 
  

 47 

 “Term A Loan Note” means a promissory note of the Borrowers payable to the order
of any Term A Loan Lender requesting such promissory note, in a principal amount equal to the aggregate amount of Indebtedness of the Borrowers to such Lender resulting from the Term A Loan owing to such Lender. 
  
 “Term A Loan Outstandings” means, at any particular
time, the principal amount of the Term A Loans outstanding at such time. 
  
 “Term B Loan” has the meaning specified in Section 2.1(c). 
  
 “Term B Loan Borrowing” means Term B Loans made on the same day by the Term B Loan Lenders ratably according to their respective
Term B Loan Commitments. 
  
 “Term B Loan
Commitment” means, with respect to each Term B Loan Lender, the commitment of such Lender to make Term B Loans to the Borrowers in the aggregate principal amount outstanding not to exceed the amount set forth opposite such Lender’s
name on Schedule I under the caption “Term B Loan Commitment” as amended to reflect each Assignment and Acceptance executed by such Lender and as such amount may be reduced pursuant to this Agreement. 
  
 “Term B Loan Commitment Period” means the period
from the Signing Date to the Commitment Termination Date. 
  
 “Term B Loan Facility” means the Term B Loan Commitments and the provisions herein related to the Term B Loans. 
  
 “Term B Loan Lender” means each Lender having a Term B Loan Commitment. 
  
 “Term B Loan Maturity Date” means the sixth year
anniversary of the Amendment Closing Date. 
  
 “Term B
Loan Note” means a promissory note of the Borrowers payable to the order of any Term B Loan Lender requesting such promissory note, in a principal amount equal to the aggregate amount of Indebtedness of the Borrowers to such Lender
resulting from the Term B Loan owing to such Lender. 
  
 “Term B Loan Outstandings” means, at any particular time, the principal amount of the Term B Loans outstanding at such time. 
  
 “Term Loan Borrowings” means, collectively, the Term A Loan Borrowings and the Term B Loan Borrowings. 
  
 “Term Loan Commitments” means,
collectively, the Term A Loan Commitments and the Term B Loan Commitments. 
  
 “Term Loan Facilities” means, collectively, the Term A Loan Facilities and the Term B Loan Facilities. 
  

 48 

 “Term Loan Lenders” means, collectively, the Term A Loan Lenders and the Term B
Loan Lenders. 
  
 “Term Loan Notes”
means, collectively, the Term A Loan Notes and the Term B Loan Notes. 
  
 “Term Loan Outstandings” means, collectively, the Term A Loan Outstandings and the Term B Loan Outstandings. 
  
 “Term Loans” means, collectively, the Term A Loans and the Term B Loans. 
  
 “Thame Facility” means the Mortgaged Property, as
defined in the Debenture. 
  
 “Third-Party
Inventory” means, with respect to any Group Member, any Inventory of such Group Member that is located, stored, used or otherwise held at the premises of third party customers or service providers. 
  
 “Title IV Plan” means a pension plan, other than a
Multiemployer Plan, which is covered by Title IV of ERISA to which the Applicable Memec Parent, any of its Subsidiaries or any ERISA Affiliate has any obligation or liability (contingent or otherwise). 
  
 “Total Assets” of any Person means, at any date, the
total assets of such Person and its Subsidiaries at such date determined on a consolidated basis in conformity with GAAP minus (a) any minority interest in non-wholly-owned Subsidiaries that would be reflected on a consolidated balance sheet of such
person and its Subsidiaries at such date prepared in conformity with GAAP and (b) any Securities issued by such Person held as treasury securities. 
  
 “Treaty” means the Treaty establishing the European Economic Community being the Treaty of Rome of 25 March 1957 as amended by
the Single European Act 1986 and the Maastricht Treaty (which was signed on 7 February 1992) and came into force on 1 November 1993) as amended, varied or supplemented from time to time. 
  
 “Treaty Lender” means a Person which by virtue of the provisions of a double taxation agreement
between the jurisdiction in which a Borrower is resident and the country of residence of that Person is resident, subject either to (a) a prior direction given to that Borrower by the appropriate tax authority pursuant to an application by that
Person or (b) the receipt by that Borrower or its designees of appropriate documentation allowing that Person to claim the benefits of the double taxation agreement, eligible, on the date of this Agreement (or, if later, the date such Lender becomes
a party to this Agreement) to have payments made to it by that Borrower under this Agreement without any deduction or withholding in respect of Taxes. 
  

 49 

 “Triangle Funding” means Triangle Receivables Funding LLC, a Delaware limited
liability company. 
  
 “UCC” means the
Uniform Commercial Code as from time to time in effect in the State of New York; provided, however, that in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection or priority of the Collateral
Agent’s and the Secured Parties’ security interest in any Collateral is governed by the Uniform Commercial Code as in effect in a United States jurisdiction other than the State of New York, the term “UCC” shall
mean the Uniform Commercial Code as in effect in such other jurisdiction for purposes of the provisions hereof relating to such attachment, perfection or priority and for purposes of definitions related to such provisions; provided further,
however, that if the UCC is amended after the date hereof, such amendment will not be given effect for the purposes of this Agreement if and to the extent the result of such amendment would be to limit or eliminate any item of Collateral.

  
 “UK Receivables Agreement” means the
UK Receivables Purchase Agreement dated as of the Original Closing Date, among Memec UK Limited, as the Originator and Sub-Collection Agent, Memec LLC as the Purchaser and Collection Agent, Barclays, as the Sheffield Funding Agent, and Chase, as the
PARCO Funding Agent and Administrative Agent. 
  
 “UK
Lender” means: 
  
 (a) a company
which is resident in the United Kingdom for UK tax purposes; or 
  
 (b) a partnership each of whose members is a company so resident; or 
  
 (c) a company which is not resident in the United Kingdom for UK tax purposes, but which carries on a trade in the United Kingdom through
a branch or agency and is subject to corporation tax on interest paid to it under this Agreement under section 11(2) of the Taxes Act. 
  
 “Underwriting Entity” has the meaning specified in Section 11.18(c). 
  
 “Unused Facility Fee Rate” means a rate equal to
0.75% per annum payable to the Senior A Facility Agent for the account of each Revolving Credit Lender, as more particularly set forth in Section 2.13(a). 
  
 “US Holdco” has the meaning specified in the second recital. 
  
 “US Receivables Agreement” means the US Receivables Purchase Agreement dated as of the Original
Closing Date, among Insight Electronics LLC, Impact Semiconductor Technologies LLC and Unique Semiconductor Technologies Inc., as the Originators and Sub-Collection Agents, and Memec LLC as the Purchaser. 
  

 50 

 “VAT Bond Amounts” means the amounts, not to exceed $15,000,000 face value at
any time outstanding, of the obligations under the VAT Bonds. 
  
 “VAT Bonds” means letters of credit issued to HM Customs and Excise in respect of the potential VAT liabilities of Group Members 
  
 “VEBA” means, collectively, VEBA AG and its Subsidiaries and Affiliates. 
  
 “Vendor Title Retention” means a sale or other
transfer of property pursuant to an agreement whereby the Person transferring such property reserves to itself the ownership of the property until certain specified conditions have been met, including payment for such property. 
  
 “Voting Stock” means Stock of any Person having
ordinary power to vote in the election of members of the board of directors, managers, trustees or other controlling Persons, of such Person (irrespective of whether, at the time, Stock of any other class or classes of such entity shall have or
might have voting power by reason of the happening of any contingency). 
  
 “Warranty Event” means the receipt of any amounts (net of associated costs and expenses) after the Original Closing Date by any Acquisition Entity or other Group Member in respect of any claim
(i) owing to any Group Member pursuant to the Acquisition Agreement, (ii) against the writers of (x) any Original Due Diligence Report delivered to the Administrative Agent on the Original Closing Date, or (y) any Amendment Date Due Diligence Report
delivered to the Facility Agents pursuant to Section 3.1, or (iii) in respect of advice given in respect to the Memec Acquisition, excluding, however, any working capital adjustments and any amounts payable to parties to the Acquisition Agreement
that are not Group Members. 
  
 “Wholly-Owned Domestic
Subsidiary” or “Wholly-Owned Foreign Subsidiary” means, in respect of a Domestic or Foreign Subsidiary of any Person, (i) any corporation 100% of whose Stock of which (other than directors’ qualifying
shares) is at the time owned by such Person and/or one or more Wholly-Owned Domestic or Foreign Subsidiaries of such Person and (ii) any partnership, association or other entity in which such Person and/or one or more Wholly-Owned Subsidiaries of
such Person has a 100% equity interest at such time. Any reference to a Wholly-Owned Domestic or Foreign Subsidiary, as the case may be, unless expressly to a Wholly-Owned Subsidiary of another person, shall mean a Wholly-Owned Domestic Subsidiary
or a Wholly-Owned Foreign Subsidiary, as the case may be, of the Applicable Memec Parent. 
  
 “Withdrawal Liability” means, with respect to any Group Member at any time, the aggregate liability incurred (whether or not assessed) with respect to all Multiemployer Plans pursuant to
Section 4201 of ERISA or for increases in contributions required to be made pursuant to Section 4243 of ERISA. 
  

 51 

 “Working Capital” means, for any Person at any date, the amount by which the
Consolidated Current Assets of such Person at such date exceeds the Consolidated Current Liabilities of such Person at such date. 
  
 “Yen” means the lawful currency of Japan. 
  
 “Yen Sublimit” shall mean, with respect to the portion of the Revolving Credit Outstandings that is
denominated in Yen, a maximum aggregate outstanding amount of such Revolving Credit Outstandings, the Dollar Equivalent of which shall not exceed, without duplication, (i) in the case of the Revolving Credit Outstandings, $25,000,000 and (ii) in the
case of the Letter of Credit Outstandings, $20,000,000. 
  
 Section 1.2. Computation of Time Periods. In this Agreement, unless otherwise specified, in the computation of periods of time from a specified date to a later specified date, the word “from” means
“from and including” and the words “to” and “until” each mean “to but excluding” and the word “through” means “to and
including.” 
  
 Section 1.3. Accounting Terms
and Principles. 
  
 (a) Except as set forth below, all
accounting terms not specifically defined herein shall be construed in conformity with GAAP and all accounting determinations required to be made pursuant hereto shall, unless expressly otherwise provided herein, be made in conformity with GAAP.

  
 (b) If any change in the accounting principles used in the
preparation of the most recent Financial Statements referred to in Section 6.1 is hereafter required or permitted by the rules, regulations, pronouncements and opinions of the Financial Accounting Standards Board or the American Institute of
Certified Public Accountants (or any successors thereto) and such change is adopted by the Group with the agreement of its Authorized Accountants and results in a change in any of the calculations required by Article V or Article VIII had such
accounting change not occurred, the parties hereto agree to enter into negotiations in order to amend such provisions so as to equitably reflect such change with the desired result that the criteria for evaluating compliance with such covenants by
the Group shall be the same after such change as if such change had not been made; provided, however, that no change in GAAP that would affect a calculation that measures compliance with any covenant contained in Article V or Article VIII
shall be given effect until such provisions are amended to reflect such changes in GAAP. 
  
 Section 1.4. Certain Terms. 
  
 (a) The words “herein,” “hereof” and “hereunder” and similar words refer to this Agreement as a whole, and not to any particular Article,
Section, subsection or clause in, this Agreement. 
  

 52 

 (b) References in this Agreement to an Exhibit, Schedule, Article, Section, subsection or clause refer
to the appropriate Exhibit or Schedule to, or Article, Section, subsection or clause in this Agreement. 
  
 (c) Each agreement defined in this Article I shall include all appendices, exhibits and schedules thereto. If the prior written consent of the Facility
Agents or Requisite Lenders is required hereunder for an amendment, restatement, supplement or other modification to any such agreement and such consent is obtained, references in this Agreement to such agreement shall be to such agreement as so
amended, restated, supplemented or modified. 
  
 (d) References
in this Agreement to any statute shall be to such statute as amended or modified and in effect at the time any such reference is operative. 
  
 (e) The term “including” when used in any Loan Document means “including without limitation” except when
used in the computation of time periods. 
  
 (f) References to
documents “in agreed terms” means documents initialed by both Clifford Chance LLP (on behalf of the relevant Loan Party and the Borrowers) and Weil, Gotshal & Manges LLP (on behalf of the Facility Agents, the Collateral
Agent and the Lenders) or, in the case of a document not so initialed, in a form to be agreed between the Facility Agents and the Borrowers. 
  
 (g) The terms “Lender”, “Issuer”, “Senior A Facility Agent”, “Senior B
Facility Agent” and “Collateral Agent” include their respective successors, and where the term “Collateral Agent” is used in relation to the secured party or trustee or agent under any
Collateral Documents, includes the Administrative Agent or Applicable Facility Agent to the extent named as the secured party or trustee or agent therein. 
  
 (h) The “equivalent” on any given date in one currency (the “first currency”) of an amount denominated in
another currency (the “second currency”) is a reference to the amount of the first currency which could be purchased with the amount of the second currency at the spot rate of exchange quoted by the Applicable Facility Agent
(or such other bank as may be specified by the Applicable Facility Agent with the agreement of the Borrowers) at or about 11:00 A.M. (London time) on such date for the purchase of the first currency with the second currency. 
  
 ARTICLE II  
  
 THE FACILITY 
  
 Section 2.1. The Commitments. 
  
 (a) Revolving Credit Commitments. On the terms and subject to
the conditions contained in this Agreement, each Revolving Credit Lender severally agrees to make loans (each a “Revolving Loan”) to the Borrowers (including, following its accession as a Borrower and for the avoidance of
doubt, Memec France) 
  

 53 

 from time to time on any Business Day during the Revolving Credit Commitment Period in an aggregate Original Dollar
Amount not to exceed at any time outstanding for all such loans by such Revolving Credit Lender such Revolving Credit Lender’s Revolving Credit Commitment; provided, however, that at no time shall any Revolving Credit Lender be obligated
to make a Revolving Loan the Original Dollar Amount of which (i) would be in excess of such Revolving Credit Lender’s Ratable Portion of the Available Credit, (ii) to the extent that the aggregate Revolving Credit Outstandings, after giving
effect to such Revolving Loan, would exceed the Maximum Credit in effect at such time and (iii) (in the case of any Revolving Loan denominated in an Alternative Currency, to the extent the aggregate outstanding Original Dollar Amount of
Multicurrency Loans in that Alternative Currency, after giving effect to such Revolving Loan, would exceed the Multicurrency Sublimit for that Alternative Currency. 
  
 (b) Term A Loan Commitments. On the terms and subject to the conditions contained in this Agreement, each
Term A Loan Lender severally agrees to make a loan (each a “Term A Loan”) to the Borrowers (which, for the avoidance of doubt, shall not include Memec France) on any Business Day during the Term A Loan Commitment Period, in
an aggregate amount not to exceed such Term A Loan Lender’s Term A Loan Commitment. Amounts of Term A Loans prepaid may not be reborrowed. 
  
 (c) Term B Loan Commitments. On the terms and subject to the conditions contained in this Agreement, each Term B Loan Lender severally
agrees to make a loan (each a “Term B Loan”) to the Borrowers (which, for the avoidance of doubt, shall not include Memec France) on any Business Day during the Term B Loan Commitment Period, in an aggregate amount not to
exceed such Term B Loan Lender’s Term B Loan Commitment. Amounts of Term B Loans prepaid may not be reborrowed. 
  
 Section 2.2. Borrowing Procedures. 
  
 (a) Revolving Credit Borrowing. Each Revolving Credit Borrowing shall be made on notice given by the applicable Borrower to the Senior A
Facility Agent not later than 11:00 A.M. (London time) three Business Days prior to the date of the proposed Revolving Credit Borrowing. Each such notice shall be in substantially the form of Exhibit C (a “Notice of
Borrowing”), specifying (A) the date of such proposed Revolving Credit Borrowing, (B) the Original Dollar Amount of such proposed Revolving Credit Borrowing, (C) whether any portion of the proposed Revolving Credit Borrowing will be in
an Alternative Currency and, if so, which Alternative Currency, (D) the initial Interest Period or Periods, and (E) the Available Credit (after giving effect to the proposed Revolving Credit Borrowing). Each Revolving Credit Borrowing (other than
Multicurrency Loans) shall be in an aggregate principal amount that is an integral multiple of $1,000,000 and, to the extent there is Available Credit, not less than $5,000,000. Borrowings of Multicurrency Loans shall be denominated in a single
Alternative Currency in an aggregate minimum amount equal to an integral multiple of 100,000 units in such Alternative Currency and shall be an Original Dollar Amount equal to or greater than $5,000,000. In the case of any Alternative Currency Loan,
the Senior A Facility 
  

 54 

 Agent shall, upon receipt of the Notice of Borrowing, obtain the spot exchange rate and determine each Lenders’
Rateable Portion in an Original Dollar Amount. Any Lenders which have not agreed to provide the Alternative Currency requested pursuant to an Alternative Currency Election shall fund in Dollars. The Borrowers may not request more than five Revolving
Credit Borrowings per month. 
  
 (b) Term A Loan
Borrowing. The Term A Loan Borrowing shall be made upon receipt of a Notice of Borrowing given by the applicable Borrowers to the Senior A Facility Agent not later than 11:00 A.M. (London time) three Business Days prior to the Amendment
Closing Date; provided, however, that the Amendment Closing Date shall not be later than the Commitment Termination Date. The Notice of Borrowing shall specify (A) the proposed Amendment Closing Date, (B) the aggregate amount of such
proposed Term A Loan Borrowing, (C) the initial Interest Period or Periods and (D) the Available Credit (after giving effect to the proposed Term A Loan Borrowing). The Term A Loans shall be made (i) only in Dollars and (ii) only to the extent (x)
there is Available Credit and (y) the Term B Loans have been made in full as provided in paragraph (c) below. 
  
 (c) Term B Loan Borrowing. The Term B Loan Borrowing shall be made upon receipt of a Notice of Borrowing given by the applicable Borrowers
to the Senior B Facility Agent not later than 11:00 A.M. (London time) three Business Days prior to the Amendment Closing Date; provided, however, that the Amendment Closing Date shall not be later than the Commitment Termination Date. The
Notice of Borrowing shall specify (A) the proposed Amendment Closing Date, (B) the aggregate amount of such proposed Term B Loan Borrowing, (C) the initial Interest Period or Periods and (D) the calculation of and compliance with the Required Asset
Coverage Percentage. The Term B Loans shall be made (i) only in Dollars and (ii) only to the extent the Borrowers comply with the Required Asset Coverage Percentage. 
  
 (d) Notice to Lenders; Funds Availability. The Applicable Facility Agent shall give to each relevant Lender
prompt notice of the Applicable Facility Agent’s receipt of a Notice of Borrowing and the applicable interest rate determined pursuant to Section 2.15(a). Each relevant Lender shall, before 11:00 A.M. (London time) on the date of the proposed
Borrowing, make available to the Applicable Facility Agent at its address referred to in Section 11.8, in immediately available funds, such Lender’s Ratable Portion or, in the case of Alternative Currency Loans, such Lender’s Alternative
Currency Ratable Portion, of such proposed Borrowing. After the Applicable Facility Agent’s receipt of such funds and upon fulfillment of the applicable conditions set forth in Section 3.1 and Section 3.2, the Applicable Facility Agent will
make such funds available to the Borrower. 
  
 (e) Assumed
Availability. Unless the Applicable Facility Agent shall have received notice from a relevant Lender prior to the date of any proposed Borrowing that such Lender will not make available to the Applicable Facility Agent such Lender’s
Ratable Portion of such Borrowing or, in the case of Alternative Currency Loans, such Lender’s Alternative Currency Ratable Portion of such Borrowing, the Applicable Facility Agent may assume that such Lender has made such Ratable Portion or
Alternative Currency Ratable Portion, as the case may be, 
  

 55 

 available to the Applicable Facility Agent on the date of such Borrowing in accordance with this Section 2.2 and the
Applicable Facility Agent may, in reliance upon such assumption, make available to the applicable Borrower on such date a corresponding amount. If and to the extent that such Lender shall not have so made such Ratable Portion or Alternative Currency
Ratable Portion, as the case may be, available to the Applicable Facility Agent, such Lender and the applicable Borrower severally agree to repay to the Applicable Facility Agent forthwith on demand such corresponding amount together with interest
thereon, for each day from the date such amount is made available to the applicable Borrower until the date such amount is repaid to the Applicable Facility Agent, at (i) in the case of such Borrower, the interest rate applicable at the time to the
Loans comprising such Borrowing and (ii) in the case of such Lender, the Federal Funds Rate for the first Business Day and thereafter at the interest rate applicable at the time to the Loans comprising such Borrowing. If such Lender shall repay to
the Applicable Facility Agent such corresponding amount, such amount so repaid shall constitute such Lender’s Loan as part of such Borrowing for purposes of this Agreement. If the applicable Borrower shall repay to the Applicable Facility Agent
such corresponding amount, such payment shall not relieve such Lender of any obligation it may have hereunder to such Borrower. 
  
 (f) Non-Funding Lender. The failure of any Lender to make the Loan or any payment required by it on the date specified (a
“Non-Funding Lender”), including any payment in respect of its participation in Letter of Credit Obligations, shall not relieve any other Lender of its obligations to make such Loan or payment on such date; provided,
however, that no such other Lender shall be responsible for the failure of any Non-Funding Lender to make a Loan or payment required under this Agreement. 
  

(g) Multicurrency Non-Availability. Anything hereinabove to the contrary notwithstanding, if any Alternative Currency Lender shall, not
later than 10:00 A.M. (London time) two Business Days before the date of any requested Borrowing of Multicurrency Loans, notify the Senior A Facility Agent that such Lender is not satisfied that deposits in the relevant Alternative Currency will be
freely available to it in the relevant amount and for the relevant Interest Period, the right of the Borrowers to request Multicurrency Loans in such Alternative Currency from such Lender as part of such Borrowing or any subsequent Borrowing of
Multicurrency Loans shall be suspended until such Lender shall notify the Senior A Facility Agent that the circumstances causing such suspension no longer exist, and, at the option of the Borrowers, either (A) the applicable Notice of Borrowing may
be withdrawn and such Borrowing shall not be made, or (B) the Multicurrency Loan to be made by such Lender as part of such Borrowing (and the Multicurrency Loan to be made by such Lender as part of any subsequent Borrowing of Multicurrency Loans in
respect of which such Alternative Currency shall have been requested during such period of suspension) shall be denominated in Dollars and having an Interest Period coextensive with the Interest Period in effect in respect of all other Multicurrency
Loans comprising a part of such Borrowing. If a Borrower elects to withdraw its Notice of Borrowing, such Borrower shall be liable to each other Lender for any damages suffered on account thereof of a nature described in Section 2.15. The Senior A

  

 56 

 Facility Agent shall, upon receiving notice from such Lender that the circumstances causing any such suspension no longer
apply, promptly so notify the Borrowers; provided, however, that the failure of the Senior A Facility Agent to so notify the Borrowers shall not impair the rights of the Lenders under this clause or expose the Senior A Facility Agent to any
liability 
  
 (h) Revolving Loan Rollovers.

  
 (i) The Borrowers may refinance all or any
part of a Revolving Credit Borrowing with another Revolving Credit Borrowing in the same currency, subject to the conditions and limitations set forth in this Agreement. Any Revolving Credit Borrowing or part thereof so refinanced shall be deemed to
be repaid or prepaid in accordance with the applicable provisions of this Agreement with the proceeds of the relevant new Revolving Credit Borrowing, and the proceeds of such new Revolving Credit Borrowing, to the extent they do not exceed the
principal amount of the Revolving Credit Borrowing being refinanced, shall not be paid by the relevant Revolving Credit Lenders to the Senior A Facility Agent or by the Senior A Facility Agent to the Borrowers pursuant to (d). 
  
 (ii) If a Borrower shall not have delivered a Notice of
Borrowing in accordance with this Section 2.2 or a Notice of Continuation in accordance with Section 2.12 prior to the end of the Interest Period then in effect for any Revolving Credit Loan and requesting that such Loan be refinanced, then such
Borrower shall (unless such Borrower has notified the Senior A Facility Agent not less than three Business Days prior to the end of such Interest Period, that such Loan is to be repaid and not refinanced at the end of such Interest Period) be deemed
to have delivered a Notice of Borrowing requesting that such Loan be refinanced with a new Borrowing of equivalent Original Dollar Amount and type for a period of one month. Such Loan shall be so refinanced unless an Event of Default has then
occurred or is continuing and the Senior A Facility Agent notifies the relevant Borrower accordingly. 
  
 (iii) If any Revolving Credit Borrowing denominated in an Alternative Currency is to be refinanced in accordance with this Section 2.2(h)
and there is any difference between the amount of the Revolving Credit Borrowing on the applicable rollover date (the “existing amount”) and the amount of the Revolving Credit Borrowing at the end of the applicable rollover
date (having recalculated the same as the equivalent of the Original Dollar Amount of the Revolving Credit Borrowing) (the “new amount”), then: 
  
 (A) If the existing amount exceeds the new amount, the relevant Borrower shall pay to the Senior A Facility
Agent for the account of the relevant Revolving Credit Lender and amount equal to the amount of such excess; or 
  
 (B) If the new amount exceeds the existing amount, each Revolving Credit Lender participating in such Revolving Credit 
  

 57 

 Borrowing shall pay to the Senior A Facility Agent for the account of the Borrowers an
amount equal to its portion of the amount of such excess (unless an Event of Default shall have occurred, in which case no such payment shall be made and a sum equal to the aggregate amount which would have been payable to the Borrowers shall be
treated as having been prepaid by the Borrowers under Section 2.9). 
  
 Section 2.3. [Intentionally Omitted] 
  
 Section 2.4. Letters of Credit. 
  
 (a)
On the terms and subject to the conditions contained in this Agreement, each Issuer agrees to issue one or more Letters of Credit at the request of a Borrower for the account of such Borrower from time to time during the period commencing on the
Closing Date and ending on the earlier of the Revolving Credit Termination Date and thirty days prior to the Scheduled Revolving Credit Termination Date; provided, however, that no Issuer shall be under any obligation to issue any
Letter of Credit if: 
  
 (i) any order, judgment
or decree of any Governmental Authority or arbitrator shall purport by its terms to enjoin or restrain such Issuer from issuing such Letter of Credit or any Requirement of Law applicable to such Issuer or any request or directive (whether or not
having the force of law) from any Governmental Authority with jurisdiction over such Issuer shall prohibit, or request that such Issuer refrain from, the issuance of letters of credit generally or such Letter of Credit in particular or shall impose
upon such Issuer with respect to such Letter of Credit any restriction or reserve or capital requirement (for which such Issuer is not otherwise compensated) not in effect on the date of this Agreement or result in any unreimbursed loss, cost or
expense which was not applicable, in effect or known to such Issuer as of the date of this Agreement and which such Issuer in good faith deems material to it; 
  

(ii) such Issuer shall have received written notice from the Senior A Facility Agent, any Revolving Credit Lender or any Borrower, on
or prior to the requested date of issuance of such Letter of Credit, that one or more of the applicable conditions contained in Section 3.1 or Section 3.2 is not then satisfied; 
  
 (iii) after giving effect to the issuance of such Letter of Credit, the aggregate Original Dollar Amount of
the Revolving Credit Outstandings would exceed the Maximum Credit at such time; 
  
 (iv) after giving effect to the issuance of such Letter of Credit, the portion of the Revolving Credit Outstandings denominated in Kroner
or Yen would exceed the applicable Multicurrency Sublimit; 
  

 58 

 (v) after giving effect to the issuance of such Letter of Credit, the sum of (i) the
Letter of Credit Undrawn Amounts at such time and (ii) the Reimbursement Obligations at such time exceeds $50,000,000; or 
  
 (vi) any fees due in connection with a requested issuance have not been paid. 
  
 None of the Revolving Credit Lenders (other than the Issuers in their capacity as such) shall
have any obligation to issue any Letter of Credit. 
  
 (b) In no
event shall the expiration date of any Letter of Credit (i) be more than one year after the date of issuance thereof, or (ii) be less than seven days prior to the Scheduled Revolving Credit Termination Date; provided, however, that any Letter
of Credit with a one-year term may provide for the renewal thereof for additional one-year periods (which shall in no event extend beyond the expiry date referred to in clause (ii) above). 
  
 (c) In connection with the issuance of each Letter of Credit, the applicable
Borrower shall give the relevant Issuer and the Senior A Facility Agent at least two Business Days prior written notice, in substantially the form of Exhibit D (or in such other written or electronic form as is acceptable to the Issuer), of
the requested issuance of such Letter of Credit (a “Letter of Credit Request”). Such notice shall be irrevocable and shall specify the Issuer of such Letter of Credit, the stated amount of the Letter of Credit requested,
which stated amount (or, if such Letter of Credit is to be denominated in an Alternative Currency, the Dollar Equivalent of such stated amount) shall not be less than $1,000,000, the date of issuance of such requested Letter of Credit (which day
shall be a Business Day), the date on which such Letter of Credit is to expire (which date shall be a Business Day), and the Person for whose benefit the requested Letter of Credit is to be issued. Such notice, to be effective, must be received by
the relevant Issuer and the Senior A Facility Agent not later than 11:00 A.M. (London time) on the second Business Day prior to the requested issuance of such Letter of Credit. 
  
 (d) Subject to the satisfaction of the conditions set forth in this Section 2.4, the relevant Issuer shall, on the
requested date, issue a Letter of Credit on behalf of the applicable Borrower in accordance with such Issuer’s usual and customary business practices. No Issuer shall issue any Letter of Credit in the period commencing on the first Business Day
after it receives written notice from any Lender that one or more of the conditions precedent contained in Section 3.2 shall not on such date be satisfied, and ending when such conditions are satisfied. The relevant Issuer shall not otherwise be
required to determine that, or take notice whether, the conditions precedent set forth in Section 3.2 have been satisfied in connection with the issuance of any Letter of Credit. 
  
 (e) If requested by the relevant Issuer, prior to the issuance of each Letter of Credit by such Issuer, and as a condition
of such issuance and of the participation of each Revolving Credit Lender in the Letter of Credit Obligations arising with respect thereto, the applicable Borrower shall have delivered to such Issuer a letter of credit reimbursement agreement, in
such form as the Issuer may 
  

 59 

 employ in its ordinary course of business for its own account (a “Letter of Credit Reimbursement
Agreement”), signed by such Borrower, and such other documents or items as may be required pursuant to the terms thereof. In the event of any conflict between the terms of any Letter of Credit Reimbursement Agreement and this Agreement,
the terms of this Agreement shall govern. 
  
 (f) Each Issuer
shall: 
  
 (i) give the Senior A Facility Agent
written notice (or telephonic notice confirmed promptly thereafter in writing, which may be by telecopier) of the issuance or renewal of a Letter of Credit issued by it, of all drawings under a Letter of Credit issued by it and the payment (or the
failure to pay when due) by any Borrower of any Reimbursement Obligation when due (which notice the Senior A Facility Agent shall promptly transmit by telecopy or similar transmission to each Revolving Credit Lender). 
  
 (ii) upon the request of any Revolving Credit Lender,
furnish to such Revolving Credit Lender copies of any Letter of Credit Reimbursement Agreement to which such Issuer is a party and such other documentation as may reasonably be requested by such Revolving Credit Lender; and 
  
 (iii) no later than ten Business Days following the last day
of each calendar month, provide to the Senior A Facility Agent (and the Senior A Facility Agent shall provide a copy to each Revolving Credit Lender requesting the same) and the Borrowers separate schedules for Documentary Letters of Credit and
Standby Letters of Credit issued by it, in form and substance reasonably satisfactory to the Senior A Facility Agent, setting forth the aggregate Letter of Credit Obligations outstanding at the end of such month and any other information requested
by the Borrowers or the Senior A Facility Agent relating thereto. 
  
 (g) Immediately upon the issuance by an Issuer of a Letter of Credit in accordance with the terms and conditions of this Agreement, such Issuer shall be deemed to have sold and transferred to each Revolving Credit Lender, and each Revolving
Credit Lender shall be deemed irrevocably and unconditionally to have purchased and received from such Issuer, without recourse or warranty, an undivided interest and participation, to the extent of such Revolving Credit Lender’s Ratable
Portion, in such Letter of Credit and the obligations of the applicable Borrower with respect thereto (including all Letter of Credit Obligations with respect thereto) and any security therefor and guaranty pertaining thereto. 
  
 (h) Each Borrower agrees to pay to the Issuer of any Letter of Credit the
amount of all Reimbursement Obligations owing to such Issuer under any Letter of Credit issued for its account when such amounts are due and payable, irrespective of any claim, set-off, defense or other right which the Borrowers may have at any time
against such Issuer or any other Person. In the event that any Issuer makes any payment under any Letter of Credit and the Borrowers shall not have repaid such amount to such Issuer pursuant to this clause (h) or such payment is 
  

 60 

 rescinded or set aside for any reason, such Reimbursement Obligation shall be payable on demand with interest thereon
computed from the date on which such Reimbursement Obligation arose to the date of repayment in full at the rate of interest applicable to past due Revolving Loans bearing interest at a rate based on the Eurocurrency Rate during such period, and
such Issuer shall promptly notify the Senior A Facility Agent, which shall promptly notify each Revolving Credit Lender of such failure, and each Revolving Credit Lender shall promptly and unconditionally pay to the Senior A Facility Agent for the
account of such Issuer the amount of such Revolving Credit Lender’s Ratable Portion of such payment in Dollars (or the Dollar Equivalent thereof if such payment was made in an Alternative Currency) and in immediately available funds. If the
Senior A Facility Agent so notifies such Revolving Credit Lender prior to 11:00 A.M. (London time) on any Business Day, such Revolving Credit Lender shall make available to the Senior A Facility Agent for the account of such Issuer its Ratable
Portion of the amount of such payment on such Business Day in immediately available funds. Upon such payment by a Revolving Credit Lender, such Revolving Credit Lender shall, except during the continuance of a Default or Event of Default under
Section 9.1(f) and notwithstanding whether or not the conditions precedent set forth in Section 3.2 shall have been satisfied (which conditions precedent the Revolving Credit Lenders hereby irrevocably waive) be deemed to have made a Revolving Loan
to the applicable Borrower in the principal amount of such payment. Whenever any Issuer receives from a Borrower a payment of a Reimbursement Obligation as to which the Senior A Facility Agent has received for the account of such Issuer any payment
from a Revolving Credit Lender pursuant to this clause (h), such Issuer shall pay to the Senior A Facility Agent and the Senior A Facility Agent shall promptly pay to each Revolving Credit Lender, in immediately available funds, an amount equal to
such Revolving Credit Lender’s Ratable Portion of the amount of such payment adjusted, if necessary, to reflect the respective amounts the Revolving Credit Lenders have paid in respect of such Reimbursement Obligation. 
  
 (i) The Borrowers’ obligations to pay each Reimbursement Obligation and
the obligations of the Revolving Credit Lenders to make payments to the Senior A Facility Agent for the account of the Issuers with respect to Letters of Credit shall be absolute, unconditional and irrevocable, and shall be performed strictly in
accordance with the terms of this Agreement, under any and all circumstances whatsoever, including the occurrence of any Default or Event of Default, and irrespective of: 
  
 (i) any lack of validity or enforceability of any Letter of Credit or any Loan Document, or any term or
provision therein; 
  
 (ii) any amendment or
waiver of or any consent to departure from all or any of the provisions of any Letter of Credit or any Loan Document; 
  
 (iii) the existence of any claim, set off, defense or other right that the Borrowers, any other party guaranteeing, or otherwise obligated
with, the Borrowers, any Subsidiary or other Affiliate thereof or any other Person may at any time have against the beneficiary under any Letter of Credit, 
  

 61 

 Issuer, the Senior A Facility Agent or any Lender or any other Person, whether in connection with this
Agreement, any other Loan Document or any other related or unrelated agreement or transaction; 
  
 (iv) any draft or other document presented under a Letter of Credit proving to be forged, fraudulent, invalid or insufficient in any
respect or any statement therein being untrue or inaccurate in any respect; 
  
 (v) payment by the Issuer under a Letter of Credit against presentation of a draft or other document that does not comply with the terms of such Letter of Credit; and 
  
 (vi) any other act or omission to act or delay of any kind
of the Issuer, the Lenders, the Senior A Facility Agent or any other Person or any other event or circumstance whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions of this Section, constitute a legal or
equitable discharge of the Borrowers’ obligations hereunder. 
  
 Any action
taken or omitted to be taken by the relevant Issuer under or in connection with any Letter of Credit, if taken or omitted in the absence of gross negligence or willful misconduct, shall not put such Issuer under any resulting liability to the
Borrowers or any Revolving Credit Lender. In determining whether drafts and other documents presented under a Letter of Credit comply with the terms thereof, the Issuer may accept documents that appear on their face to be in order, without
responsibility for further investigation, regardless of any notice or information to the contrary and, in making any payment under any Letter of Credit the Issuer may rely exclusively on the documents presented to it under such Letter of Credit as
to any and all matters set forth therein, including reliance on the amount of any draft presented under such Letter of Credit, whether or not the amount due to the beneficiary thereunder equals the amount of such draft and whether or not any
document presented pursuant to such Letter of Credit proves to be insufficient in any respect, if such document on its face appears to be in order, and whether or not any other statement or any other document presented pursuant to such Letter of
Credit proves to be forged or invalid or any statement therein proves to be inaccurate or untrue in any respect whatsoever and any noncompliance in any immaterial respect of the documents presented under such Letter of Credit with the terms thereof
shall, in each case, be deemed not to constitute willful misconduct or gross negligence of the Issuer. 
  
 (j) If and to the extent such Revolving Credit Lender shall not have so made its Ratable Portion of the amount of the payment required by clause (i)
above available to the Senior A Facility Agent for the account of such Issuer, such Revolving Credit Lender agrees to pay to the Senior A Facility Agent for the account of such Issuer forthwith on demand such amount together with interest thereon,
for the first Business Day after payment was first due at the overdraft cost incurred by such Issuer, and thereafter until such amount is repaid to the Senior A Facility Agent for the account of such Issuer, at the rate per annum applicable to Loans
under the Facility. The failure of any Revolving Credit Lender to make available to the Senior A Facility Agent for the account of such Issuer its Ratable Portion of any such payment shall not relieve any other Revolving Credit Lender of its
obligation 
  

 62 

 hereunder to make available to the Senior A Facility Agent for the account of such Issuer its Ratable Portion of any
payment on the date such payment is to be made, but no Revolving Credit Lender shall be responsible for the failure of any other Revolving Credit Lender to make available to the Senior A Facility Agent for the account of the Issuer such other
Revolving Credit Lender’s Ratable Portion of any such payment. 
  
 Section 2.5. Ancillary Facility.  
  
 (a)
Nature of Ancillary Facility. On the terms and subject to the conditions contained in this Agreement and in the applicable Ancillary Loan Documents, each Ancillary Lender agrees to make Ancillary Advances to one or more Borrowers or an
Ancillary Borrower under one or more of the following Ancillary Facilities: 
  
 (i) overdraft, automated payment, check drawing and other current account facilities; and/or 
  
 (ii) short term loans in local currencies; and/or 
  
 (iii) foreign exchange facilities; and/or 
  
 (iv) such other facilities or financial accommodations as may be required in connection with the business of
the applicable Borrower or Ancillary Borrower and which is agreed in writing between the applicable Borrower or Ancillary Borrower and the relevant Ancillary Lender. 
  
 (b) Ancillary Facility Request. A Borrower or Ancillary Borrower may, at any time during the Revolving Credit
Commitment Period, by written notice to the Senior A Facility Agent (an “Ancillary Advance Request”), request the establishment of an Ancillary Facility by the conversion of all or part of any Revolving Credit Lender’s
participation in the Revolving Credit Facility into an Ancillary Commitment; provided, however, that no Ancillary Advance Request may be made prior to the Syndication Completion Date. Such Ancillary Commitment shall become effective from the
date specified in such notice (the “Ancillary Commitment Effective Date”); provided, however, that the Ancillary Commitment Effective Date shall be not less than five Business Days after the date such notice is
received by the Senior A Facility Agent. The Ancillary Advance Request shall specify: 
  
 (i) the proposed start and expiry date for the applicable Ancillary Facility; provided, however, that such expiry date must fall on
or before the date that is thirty days prior to the Scheduled Revolving Credit Termination Date; 
  
 (ii) the type of the proposed Ancillary Facility (including as to currencies available); 
  
 (iii) the proposed Borrower or Ancillary Borrower under such
Ancillary Facility; 
  

 63 

 (iv) the proposed Ancillary Lender; 
  
 (v) the Original Dollar Amount of the proposed Ancillary
Commitment to apply to such Ancillary Facility; and 
  
 (vi) such other details as to the nature, amount and operation of the proposed Ancillary Facility as the Senior A Facility Agent may reasonably require. 
  
 The Senior A Facility Agent shall promptly notify each Revolving Credit Lender upon receipt of any Ancillary Advance Request. 
  
 (c) Effect of Creation of an Ancillary
Facility. 
  
 (i) The Revolving Credit
Commitment of any Ancillary Lender shall be reduced by the amount of its Ancillary Commitment under an Ancillary Facility; provided, however, that the Revolving Credit Commitment of such Ancillary Lender shall automatically increase upon such
Ancillary Facility ceasing to be available to the applicable Borrower. 
  
 (ii) Any Revolving Credit Lender so nominated shall, subject to giving its prior written consent, become an Ancillary Lender authorized to make the proposed Ancillary Facility available with effect on and from the
Ancillary Commitment Effective Date, subject to (A) the reasonable approval of the Senior A Facility Agent and (B) the Senior A Facility Agent having received notification in writing from the Revolving Credit Lender so nominated that it has approved
the proposed Ancillary Facility, it being understood and agreed that such Revolving Credit Lender shall have no obligation to give such an approval. 
  
 (iii) Any material variation in any Ancillary Facility or any proposed increase or reduction in the Ancillary Commitment relating thereto
shall be effective on and subject to the provisions, mutatis mutandis, of this Section 2.5, which shall apply as if such Ancillary Facility were being newly requested. 
  
 (iv) The Ancillary Commitment of any Ancillary Lender shall terminate on or before the Revolving Credit
Termination Date. Any Ancillary Outstandings on the Revolving Credit Termination Date applicable to the Revolving Credit Facility shall be repaid in full or have expired or have been fully cash collateralized by the relevant Borrower on such date.

  
 (v) The applicable Borrower or Ancillary
Borrower may, at any time by notice in writing to the Senior A Facility Agent and the relevant Ancillary Lender, cancel such Ancillary Facility, in which event on the date specified in the notice (which date shall be a date not less than three
Business Days after the date of such notice is received by the Senior A Facility Agent and the relevant Ancillary Lender) the relevant Ancillary Commitment shall be converted into a Revolving Credit Commitment. 
  

 64 

 (vi) In the event that any Ancillary Lender has made an Ancillary Facility available to a
Borrower or Ancillary Borrower and such Ancillary Facility has thereafter been cancelled by such Borrower or Ancillary Borrower or has been repaid in full, expired or fully cash collateralized by such Borrower or Ancillary Borrower at a time when
the Revolving Credit Lenders have made available any Revolving Loans to the Borrowers, then upon such cancellation, repayment, expiry or cash collateralization of such Ancillary Facility, the relevant Ancillary Lender shall make a payment in the
applicable Alternative Currency of such Revolving Loans to each of the Revolving Credit Lenders which shall amount to its pro rata share of any such Revolving Loans then outstanding and its Revolving Credit Commitments in the applicable Alternative
Currency and the Revolving Credit Commitments of the Revolving Credit Lenders shall be adjusted accordingly. 
  
 (d) Interest Rate; Terms; Limitations; etc. 
  
 (i) The rate of interest, fees and other remuneration in respect of each Ancillary Facility shall be
determined by agreement between the applicable Ancillary Lender and the applicable Borrower or Ancillary Borrower. The fees and other remuneration for all Ancillary Facilities shall be based upon the normal market rates and terms from time to time
of the Ancillary Lender. 
  
 (ii) The aggregate
Original Dollar Amount of the Ancillary Commitments at any time under all Ancillary Facilities shall not exceed $60,000,000. 
  
 (iii) Subject to the foregoing clause (i) of this Section 2.5(d), the terms governing the operation of any Ancillary Facility shall be
those determined by agreement between the applicable Ancillary Lender and the applicable Borrower or Ancillary Borrower concerned; provided, however, that such terms are based upon usual and typical commercial terms (except as such terms may
be varied by this Agreement) and the parties to any relevant Loan Documents shall enter into such other documents as are necessary to document the Ancillary Facilities and govern the relationship between the Ancillary Facility Documents and the
other Loan Documents. In the event of any conflict between the terms of any Ancillary Facility Document and this Agreement, the terms of this Agreement shall govern. 
  
 (iv) Each Borrower and Ancillary Borrower and the applicable Ancillary Lender agrees with and for the
benefit of each other Lender that the Dollar Equivalent of the Ancillary Outstandings under any Ancillary Facility provided by such Ancillary Lender shall not at any time exceed the Ancillary Commitment applicable to that Ancillary Facility.

  
 (v) Each Borrower, each Ancillary Borrower
and each Ancillary Lender will, promptly upon request by the Senior A Facility Agent, provide the Senior A Facility Agent with such information relating to the operation of each Ancillary Facility provided by such Ancillary Lender (including the

  

 65 

 Ancillary Outstandings thereunder) as the Senior A Facility Agent may from time to time request. Each
Borrower consents to all such information being released to the Senior A Facility Agent and each Lender. 
  
 Section 2.6. Reduction and Termination of the Revolving Credit Commitments. The Borrowers may, upon at least three Business Days prior
notice to the Senior A Facility Agent, terminate ratably, in whole or reduce in part, the unused portions of the respective Revolving Credit Commitments of the Revolving Credit Lenders; provided, however, that each partial reduction shall be
in the aggregate amount of not less than $10,000,000 (or, if less, the aggregate amount of such unused portions) or an integral multiple of $5,000,000 in excess thereof. 
  
 Section 2.7. Repayment of Loans. 
  
 (a) Revolving Loans. Each Borrower promises to repay the entire unpaid principal amount of each Revolving
Loan made to it on (i) the last day of the Interest Period applicable to such Revolving Loan and (ii) on the Revolving Credit Termination Date. 
  
 (b) Term A Loans. Each Borrower promises to repay the Term A Loans made to it by paying an amount equal to the amounts referenced in the
second column below on each of the dates referenced in the first column below: 
  

			
	 Repayment Date

	  	Repayment Amount
(US$)

	 October 31, 2005
	  	500,000
	 April 30, 2006
	  	500,000
	 October 31, 2006
	  	500,000
	 April 30, 2007
	  	500,000
	 October 31, 2007
	  	500,000
	 April 30, 2008
	  	500,000
	 October 31, 2008
	  	48,500,000
	 April 30, 2009
	  	48,500,000

  
 provided, however, that
each Borrower shall repay the entire unpaid principal amount of the Term A Loans made to it on the Term A Loan Maturity Date. 
  
 (c) Term B Loans. Each Borrower promises to repay the Term B Loans made to it by paying an amount equal to the amounts referenced in the
second column below on each of the dates referenced in the first column below: 
  

			
	 Repayment Date

	  	Repayment Amount
(US$)

	 October 31, 2005
	  	500,000
	 April 30, 2006
	  	500,000
	 October 31, 2006
	  	500,000
	 April 30, 2007
	  	500,000
	 October 31, 2007
	  	500,000
	 April 30, 2008
	  	500,000
	 October 31, 2008
	  	500,000
	 April 30, 2009
	  	500,000
	 October 31, 2009
	  	48,000,000
	 April 30, 2010
	  	48,000,000

  

 66 

 provided, however, that each Borrower shall repay the entire unpaid principal amount of the Term B Loans
made to it on the Term B Loan Maturity Date. 
  
 (d)
Ancillary Facilities. Each Ancillary Borrower promises to repay the entire unpaid principal amount of each Ancillary Advance made to it on the Revolving Credit Termination Date. 
  
 Section 2.8. Evidence of Debt. 
  
 (a) Each Lender shall maintain in accordance with its usual practice an
account or accounts evidencing Indebtedness of the Borrowers to such Lender resulting from each Loan of such Lender from time to time, including the amounts of principal and interest payable and paid to such Lender from time to time under this
Agreement. 
  
 (b) The Applicable Facility Agent shall maintain
accounts in accordance with its usual practice in which it will record (i) the amount of each Loan made under the relevant Facility and the Interest Period applicable thereto, (ii) the amount of any principal or interest due and payable by the
Borrowers to each Lender under the relevant Facility hereunder and (iii) the amount of any sum received by the Applicable Facility Agent hereunder from the Borrowers and each relevant Lender’s share thereof, if applicable. 
  
 (c) The entries made in the accounts maintained pursuant to clauses (a) and
(b) of this Section 2.8 shall, to the extent permitted by applicable law, be prima facie evidence of the existence and amounts of the obligations recorded therein; provided, however, that the failure of any Lender or any Facility Agent to
maintain such accounts or any error therein shall not in any manner affect the obligations of the Borrowers to repay the Loans in accordance with their terms. 
  

(d) Notwithstanding any other provision of the Agreement, in the event that any Lender requests that the Borrowers execute and deliver a promissory
note or notes payable to such Lender in order to evidence the Indebtedness owing to such Lender by such Borrowers hereunder, the Borrowers will promptly execute and deliver a Note or Notes to such Lender evidencing any Term Loans and Revolving
Loans, as the case may be, of such Lender, substantially in the form of Exhibits B-1 or B-2, respectively. 
  

 67 

 Section 2.9. Optional Prepayments. 
  
 (a) Revolving Loans. The Borrowers may, upon at least three
Business Days prior notice to the Senior A Facility Agent, stating the proposed date and aggregate principal amount of the prepayment, prepay the outstanding principal amount of the Revolving Loans in whole or in part; provided,
however, that if any prepayment of any Loan is made by a Borrower other than on the last day of an Interest Period for such Loan, such Borrower shall also pay any amounts owing pursuant to Section 2.15(e). Each optional partial prepayment
shall be in an aggregate principal amount not less than $1,000,000 or integral multiples of $1,000,000 in excess thereof; provided, however, that optional partial prepayments of Multicurrency Loans shall be in an aggregate amount equal
to any integral multiple of 100,000 units in such Alternative Currency (converted to the Dollar Equivalent thereof) and equal to or greater than $1,000,000. Upon the giving of such notice of optional prepayment, the principal amount of Revolving
Loans specified to be prepaid shall become due and payable on the date specified for such prepayment. 
  
 (b) Term A Loans. The Borrowers may, upon at least three Business Days prior notice to the Senior A Facility Agent, stating the proposed
date and aggregate principal amount of the prepayment, prepay the outstanding principal amount of the Term A Loans, in whole or in part, together with accrued interest to the date of such prepayment on the principal amount prepaid; provided,
however, that if any prepayment is made by a Borrower other than on the last day of an Interest Period for such Loan, such Borrower shall also pay any amounts owing pursuant to Section 2.15(e). Each optional partial prepayment shall be in an
aggregate amount not less than $1,000,000 or integral multiples of $1,000,000 in excess thereof and any such partial prepayment shall be applied pro rata to the remaining installments of such outstanding principal amount of the Term A Loans.
Upon the giving of such notice of prepayment, the principal amount of the Term A Loans specified to be prepaid shall become due and payable on the date specified for such prepayment. 
  
 (c) Term B Loans. At any time after all Obligations in respect of the Term A Loans and the Revolving Credit
Loans have been repaid in full (and, in the case of the Revolving Credit Facility, the Revolving Credit Commitments cancelled) and subject to the payment of the Prepayment Premium the Borrowers may, upon at least five days prior notice to the Senior
B Facility Agent, stating the proposed date and aggregate principal amount of the prepayment, prepay the outstanding principal amount of the Term B Loans, in whole or in part, together with accrued interest to the date of such prepayment on the
principal amount prepaid; provided, however, that if any prepayment is made by a Borrower other than on the last day of an Interest Period for such Loan, such Borrower shall also pay any amounts owing pursuant to Section 2.15(e). Each
optional partial prepayment shall be in an aggregate amount not less than $1,000,000 or integral multiples of $1,000,000 in excess thereof and any such partial prepayment shall be applied pro rata to the remaining installments of such
outstanding principal amount of the Term B Loans. Upon the giving of such notice of prepayment, the principal amount of the Term Loans specified to be prepaid shall become due and payable on the date specified for such prepayment. Except as
otherwise expressly provided in this Section 2.9(c), no 
  

 68 

 Borrower shall have any right to prepay the principal amount of any Term B Loan unless and until the Term A Loans have
been repaid in full and all Revolving Credit Loans have been repaid in full and the Revolving Credit Commitments in respect thereof cancelled. 
  
 (d) Ancillary Facilities. The Borrowers’ right to prepay the outstanding principal amount of any Ancillary Facility shall be as set
forth in the Ancillary Facility Documents in respect of such Ancillary Facility. 
  
 (e) No Other Right to Prepay. No Borrower shall have any right to prepay the principal amount of any Revolving Loan or any Term Loan other than as provided in this Section 2.9. 
  
 Section 2.10. Mandatory Prepayments. 
  
 (a) Net Cash Proceeds. Upon receipt by any Group Member of
Net Cash Proceeds, the Borrowers shall immediately prepay the Term Loans in an amount equal to 100% of such Net Cash Proceeds; provided, however, that in the case of any Net Cash Proceeds arising from a Reinvestment Event, such
prepayment obligation shall not be immediate and the Borrowers shall prepay the Term Loans in an amount equal to the Reinvestment Prepayment Amount applicable to such Reinvestment Event, if any, on the Reinvestment Prepayment Date with respect to
such Reinvestment Event and, pending application of such proceeds as specified in the Reinvestment Notice, shall pay the same to the Senior A Facility Agent to be held in a Cash Collateral Account; provided further, however,
that in the case of any Net Cash Proceeds arising from a Warranty Event, only 35% of such Net Cash Proceeds shall be required to be used to prepay the Term Loans. Any such mandatory prepayment shall be applied in accordance with Section 2.10(f)
below. Upon the written request of the applicable Group Member for the release of amounts in such Cash Collateral Account in respect of such Reinvestment Event, and the presentation of evidence and documentation reasonably acceptable to the Facility
Agents in respect thereof, the Senior A Facility Agent shall release amounts to the applicable Group Member within five Business Days after receipt of such request and supporting documentation, to promptly be applied by such Group Member in
accordance with the Reinvestment Notice applicable thereto. 
  
 (b) Excess Cash Flow. The Borrowers shall prepay the Term Loans commencing on the earlier of (A) the date on which the Financial Statements referred to in Section 6.1(c), for each Fiscal Year are required to be delivered to
the Facility Agent and (B) the date such Financial Statements are actually delivered (such date, the “ECF Application Date”), in an amount equal to 50% (the “ECF Percentage”) of Excess Cash Flow for
such Fiscal Year, less any voluntary prepayments made during such Fiscal Year. Any such mandatory prepayment shall be applied in accordance with Section 2.10(f) below; provided further, however, that the Borrowers may retain, and shall not be
required to prepay the Term Loans under this Section 2.10(b), the first $50,000,000 of Excess Cash Flow (for the avoidance of doubt, prior to the application of the ECF Percentage) to accrue after the Fiscal Year ending December 31, 2003.

  

 69 

 (c) Change of Control. The Borrowers shall prepay all Loans and terminate all Commitments
upon the occurrence of a sale of all or substantially all of the assets of the Group or upon a Change of Control. Any such mandatory prepayment shall be applied in accordance with Section 2.10(f) below. 
  
 (d) Intentionally Omitted. 
  
 (e) Refinancing Proceeds. Upon receipt by any Group Member of
proceeds from any Debt Issuance, net of brokers’ and advisers’ fees and other costs incurred in connection with such refinancing (provided, however, that evidence of such costs is provided to the Facility Agents in form and
substance reasonably satisfactory to them), the Borrowers shall immediately prepay the Term Loans in an amount equal to 100% of the proceeds of such Debt Issuance. Any such mandatory prepayment shall be applied in accordance with Section 2.10(f)
below. 
  
 (f) Application Order. Any prepayments
made by the Borrowers required to be applied in accordance with this Section 2.10 shall be applied as follows: first, to prepay the outstanding principal balance of the Term A Loans, until such Term A Loans have been prepaid in full;
second, to repay the outstanding principal balance of the Revolving Loans until such Revolving Loans shall have been paid in full; third, to provide cash collateral for any Letter of Credit Obligations in the manner set forth in
Section 9.3 until all such Letter of Credit Obligations have been fully cash collateralized in the manner set forth therein; fourth, to repay the outstanding principal balance of the Ancillary Outstandings, or provide cash collateral therefor
in the manner set forth in Section 9.3, until all Ancillary Outstandings have either been (i) paid in full or (ii) fully cash collateralized in the manner set forth in Section 9.3; fifth, to pay the Prepayment Premium (if any) and then prepay
the outstanding principal balance of the Term B Loans, until such term Loans B have been prepaid in full; and sixth, to any other Obligations then due and payable. The Borrowers consent to such application. All prepayments of Term Loans made
pursuant to this Section 2.10(f) shall be applied to reduce ratably the remaining installments of such outstanding principal amounts of (i) in respect of the Term A Loans, as set forth in Section 2.7(b) and (ii) in respect of the Term B Loans, as
set forth in Section 2.7(c). 
  
 (g) Maximum
Credit. 
  
 (i) If at any time, the
aggregate principal amount of Revolving Credit Outstandings and Term A Loan Outstandings exceed the Maximum Credit at such time, the Borrowers shall forthwith prepay the Revolving Loans then outstanding in an amount equal to such excess. If any such
excess remains after repayment in full of the aggregate outstanding Revolving Loans, the Borrowers shall provide cash collateral for the Letter of Credit Obligations in the manner set forth in Section 9.3 to the extent required to eliminate such
excess. If any such excess still remains after repayment in full of the aggregate outstanding Revolving Loans and the provision of cash collateral for Letter of Credit Obligations, the Borrowers shall fund into a Cash Collateral Account the amount
required to eliminate such excess. 
  

 70 

 (ii) In the event at the end of a fiscal month following the funding of the Cash
Collateral Account as provided in the foregoing clause (g)(i), the aggregate principal amount of Revolving Credit Outstandings and Term A Loan Outstandings is less the Maximum Credit, the amount paid into the Cash Collateral Account pursuant to this
Section 2.10(g) shall be released to the Borrowers. 
  
 (iii) In the event at the end of the fourth full Fiscal Quarter following the funding of the Cash Collateral Account as provided in the foregoing clause (g)(i), the aggregate principal amount of Revolving Credit Outstandings and Term A Loan
Outstandings continue to exceed the Maximum Credit, the amount paid into the Cash Collateral Account pursuant to this Section 2.10(g) that is necessary to ensure that the aggregate principal amount of Revolving Credit Outstandings and Term A Loan
Outstandings does not exceed the Maximum Credit shall be applied pro rata in prepayment of the Term A Loans, to the remaining installments of the outstanding principal amount of such Term A Loans. No prepayment of Term B Loans shall be
required under this Section 2.10(g). No amount repaid pursuant to this Section 2.10(g)(iii) may be reborrowed. 
  
 (h) Minimum Asset Coverage. 
  
 (i) If at any time, the aggregate principal amount of Revolving Credit Outstandings and Term Loan Outstandings are such that Borrowers do
not comply with the Required Asset Coverage Percentage at such time, the Borrowers shall forthwith prepay the Revolving Loans then outstanding in an amount equal to such excess. If any such excess remains after repayment in full of the aggregate
outstanding Revolving Loans, the Borrowers shall provide cash collateral for the Letter of Credit Obligations in the manner set forth in Section 9.3 to the extent required to eliminate such excess. If any such excess still remains after repayment in
full of the aggregate outstanding Revolving Loans and the provision of cash collateral for Letter of Credit Obligations, the Borrowers shall fund into a Cash Collateral Account the amount required to eliminate such excess. 
  
 (ii) In the event at the end of a fiscal month following the
funding of the Cash Collateral Account as provided in the foregoing clause (h)(i), the aggregate principal amount of Revolving Credit Outstandings and Term Loan Outstandings are such that Borrowers do not comply with the Asset Coverage Percentage,
the amount paid into the Cash Collateral Account pursuant to this Section 2.10(h) shall be released to the Borrowers. 
  
 (iii) In the event at the end of the fourth full Fiscal Quarter following the funding of the Cash Collateral Account as provided in the
foregoing clause (h)(i), the aggregate principal amount of Revolving Credit Outstandings and Term Loan Outstandings are such that Borrowers do not comply with the Required Asset Coverage Percentage, the amount paid into the Cash Collateral Account
pursuant to this Section 2.10(h) that is necessary to ensure that the aggregate principal amount of Revolving Credit 
  

 71 

 Outstandings and Term Loan Outstandings are such that Borrowers do not comply with the Asset Coverage
Percentage shall be applied first in prepayment of the Term A Loans, to the remaining installments of the outstanding principal amount of such Term A Loans in the inverse order of their maturities, and second, after repayment in full of the Term A
Loans, in prepayment of the Term B Loans, to the remaining installments of the outstanding principal amount of such Term B Loans in the inverse order of their maturities. No amount repaid pursuant to this Section 2.10(h)(iii) may be reborrowed.

  
 (i) Mandatory Prepayment Limitations. The
mandatory prepayment obligations pursuant to clauses (a), (b) and (c) of this Section 2.10 shall be limited to the extent that such Net Sale Proceeds or Excess Cash Flow can be upstreamed from a Subsidiary to the applicable Borrower or to any other
Subsidiary, without such Subsidiary or Borrower, as the case may be, being in breach of any Requirement of Law or without the directors of such Subsidiary or Borrower incurring personal liability or breaching their fiduciary duties to such
Subsidiary or Borrower, as the case may be; provided, however, that in each such case the relevant Borrower shall deliver to the Facility Agents and the Lenders a certificate of a Responsible Officer in form and substance reasonably
satisfactory to the Facility Agents setting forth in reasonable detail the circumstances of such potential breach of a Requirement of Law or fiduciary duty or such risk of personal liability. Where any such potential breach or risk of personal
liability or breach of fiduciary duty exists, the Borrowers shall procure that each of their Subsidiaries shall use all reasonable endeavors to overcome the prohibition or risk, and any prepayment obligation by a Borrower which is limited by the
provisions of this Section 2.10(i) shall be reinstated at the time and to the extent that the events or circumstances giving rise to such limitation shall cease to exist. Notwithstanding the foregoing, to the extent any Subsidiary is restricted from
upstreaming Net Sale Proceeds or Excess Cash Flow as described in the first sentence of this Section 2.10(i), to the extent other Subsidiaries are not so restricted the Borrowers shall cause such other Subsidiaries to upstream the maximum amounts
required to satisfy the Borrowers’ prepayment obligations 
  
 (j) Affected Loans. Notwithstanding the foregoing provisions of this Section 2.10, if at any time the mandatory prepayment of any Loans pursuant to this Agreement would result, after giving effect to the procedures set forth
in this Agreement, in the Borrowers incurring costs under Section 2.15 as a result of Loans (“Affected Eurocurrency Rate Loans”) being prepaid other than on the last day of an Interest Period applicable thereto, which costs
are required to be paid pursuant to Section 2.15, then the Borrowers may, in their sole discretion, initially deposit a portion (up to 100%) of the amounts that otherwise would have been paid in respect of the Affected Eurocurrency Rate Loans in a
Cash Collateral Account with the Senior A Facility Agent (which deposit must be equal in amount to the amount of the Affected Eurocurrency Loans not immediately prepaid) to be held as security for the obligations of the Borrowers to make such
mandatory prepayment, with such cash collateral to be directly applied upon the first occurrence (or occurrences) thereafter of the last day of an Interest Period applicable to the relevant Loan (or such earlier date or dates as shall be requested
by the Borrowers), to prepay an aggregate principal amount of such Loan equal to the Affected Eurocurrency Rate Loans not initially prepaid pursuant to this Section 2.10(j). 
  

 72 

 Section 2.11. Interest. 
  
 (a) Rate of Interest. All Loans and the outstanding amount of all other Obligations shall bear interest, in
the case of Loans, on the unpaid principal amount thereof from the date such Loans are made and, in the case of such other Obligations, from the date such other Obligations are due and payable until, in all cases, paid in full, except as otherwise
provided in Section 2.11(c), at a rate per annum equal to the sum of (A) the Eurocurrency Rate determined for the applicable Interest Period, plus (B) the Applicable Margin in effect from time to time during such Interest Period, plus (C) the
Mandatory Costs. 
  
 (b) Interest Payments. (i)
Interest accrued on each Loan shall be payable in arrears (A) on the last day of each Interest Period applicable to such Loan and if such Interest Period has a duration of more than three months, on each day during such Interest Period which occurs
every three months from the first day of such Interest Period, (B) upon the payment or prepayment thereof in full or in part, and (C) if not previously paid in full, at maturity (whether by acceleration or otherwise) of such Loan; and (ii) interest
accrued on the amount of all other Obligations shall be payable on demand from and after the time such Obligation becomes due and payable (whether by acceleration or otherwise). 
  
 (c) Default Interest. Notwithstanding the rates of interest specified in Section 2.11(a) or elsewhere herein,
all sums due and payable under the Loan Documents (including the requirement to cash collateralize outstanding Letter of Credit Obligations and Ancillary Outstandings as provided in Section 9.3) which are not paid on the due date therefor in
accordance therewith shall bear interest at a rate which is two percent per annum in excess of the rate of interest applicable to the Loans from time to time. The Applicable Facility Agent may select the duration of the interest periods applicable
to such overdue sums and default interest shall be payable at the end of each such period. 
  
 Section 2.12. Continuation Option. 
  
 (a) The Borrowers may elect to continue such Loans or any portion thereof for an additional Interest Period; provided, however, that the aggregate amount of each continuation shall be allocated among the
Loans of each Lender in accordance with its Ratable Portion. Each such election shall be in substantially the form of Exhibit F hereto (a “Notice of Continuation”) and shall be made by giving the Applicable Facility
Agent at least three Business Days prior written notice specifying (A) the amount and type of Loan being continued, (B) the applicable Interest Period, and (C) the last day of the applicable Interest Period). 
  
 (b) The Applicable Facility Agent shall promptly notify each Lender of its
receipt of a Notice of Continuation and of the options selected therein. Notwithstanding the foregoing, no continuation in whole or in part of Loans upon the expiration of any applicable Interest Period, shall be permitted at any time at which (i)

  

 73 

 a Default or an Event of Default shall have occurred and be continuing or (ii) the continuation of would violate any of
the provisions of Section 2.15. If, within the time period required under the terms of this Section 2.12, the Applicable Facility Agent does not receive a Notice of Continuation from a Borrower containing a permitted election to continue any Loans
for an additional Interest Period, then, upon the expiration of the applicable Interest Period, such Loans will be automatically continued for one month or any other alternative interest period as selected by the Applicable Facility Agent. Each
Notice of Continuation shall be irrevocable. 
  
 Section 2.13.
Fees. 
  
 (a) Unused Facility Fee. The
Borrowers agree to pay to the Senior A Facility Agent for the account of each Revolving Credit Lender an unused facility fee for the period from the Amendment Closing Date until the Revolving Credit Termination Date, computed at the Unused Facility
Fee Rate on the undrawn amount of the Revolving Credit Commitment of such Lender during the period for which payment is made, payable quarterly in arrears (i) on the last Business Day of each calendar quarter, commencing on the first such day
following the Amendment Closing Date and (ii) on the Revolving Credit Termination Date; provided, however, that any balance of such fee shall be payable on the date the Revolving Credit Commitments are terminated. 
  
 (b) Letter of Credit Fees. Each Borrower agrees to pay the
following amounts with respect to Letters of Credit issued for its account by any Issuer: 
  
 (i) to the Senior A Facility Agent for the account of each Issuer of a Letter of Credit, with respect to each Letter of Credit issued by
such Issuer, an issuance fee equal to 0.25% per annum of the maximum amount available from time to time to be drawn under such Letter of Credit, payable in arrears (A) on the last day of each calendar quarter, commencing on the first such day
following the issuance of such Letter of Credit and (B) on the Revolving Credit Termination Date; 
  
 (ii) to the Senior A Facility Agent for the ratable benefit of the Revolving Credit Lenders, with respect to each Letter of Credit, a fee
accruing at a rate per annum equal to the Applicable Margin for Revolving Loans, of the maximum amount available from time to time to be drawn under such Letter of Credit (and, in the case of any Letter of Credit denominated in a currency
other than Dollars, based on the Dollar Equivalent of the average undrawn amount thereof), payable in arrears on the last day of each calendar quarter, commencing on the first such day following the issuance of such Letter of Credit and (ii) on the
Revolving Credit Termination Date; and 
  
 (iii)
to the Issuer of any Letter of Credit, with respect to the issuance, amendment or transfer of each Letter of Credit and each drawing made thereunder, documentary and processing charges in accordance with such Issuer’s standard schedule for such
charges in effect at the time of issuance, amendment, transfer or drawing, as the case may be. 
  

 74 

 (c) Commitment Fee. On the Amendment Closing Date in respect of each of the Term Loan
Facilities, for the account of the relevant Term Loan Lenders, ratably to their relevant Term Loan Commitments), a commitment commission computed at the Commitment Fee Rate on an actual day count basis for the period from the Signing Date to the
Amendment Closing Date, on the daily amount by which the applicable Term Loan Commitments in respect of the applicable Term Loan Facilities exceed the aggregate of the applicable Term Loans of all the relevant Term Loan Lenders in respect of the
applicable Term Loan Facilities. 
  
 (d) Additional
Fees. The Borrowers agree to pay to the Applicable Facility Agent and the Arrangers additional fees, the amount and dates of payment of which are embodied in the Fee Letters. 
  
 (e) Prepayment Premium. Upon any (A) optional prepayment of the Senior B Term Facility under Section 2.9(c),
(B) mandatory prepayment of the Senior B Term Facility under Section 2.10(c), or (C) mandatory prepayment of the Senior B Term Facility under Section 2.10(e), the Borrowers agree to pay to the Senior B Facility Agent, for the account of each of the
Term B Lenders, a prepayment premium (the “Prepayment Premium”) of: 
  
 (i) 2.0% on the amount prepaid if the prepayment is made before the first anniversary of the Amendment Closing Date; and 
  
 (ii) 1.0% on the amount prepaid if the prepayment is made on
or after the first anniversary but before the second anniversary of the Amendment Closing Date. 
  
 For the avoidance of doubt, there shall be no Prepayment Premium due if the prepayment is made on or after the second anniversary of the Amendment Closing Date. 
  
 Section 2.14. Payments and Computations. 
  
 (a) Each Borrower shall make the payments hereunder (including fees and
expenses) not later than 11:00 A.M. (London time) on the day when due, in Dollars or, in respect of Loans made in Alternative Currencies, in the applicable Alternative Currency, to the Applicable Facility Agent at its address referred to in Section
11.18 in immediately available funds without set-off or counterclaim. The Applicable Facility Agent will promptly thereafter cause to be distributed immediately available funds relating to the payment of principal or interest or fees to the Lenders,
in accordance with the application of payments set forth in clauses (e) and (f) of this Section 2.14, as applicable, for the account of their respective Lending Offices; provided, however, that amounts payable pursuant to Section
2.15(c), Section 2.15(e), Section 2.16 or Section 2.17 shall be paid only to the affected Lender or Lenders. Payments received by the Applicable Facility Agent after 11:00 A.M. (London time) shall be deemed to be received on the next Business Day.

  
 (b) All computations of interest and of fees shall be made by
the Applicable Facility Agent on the basis of a year of 360 days, in each case for the 
  

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 actual number of days (including the first day but excluding the last day) occurring in the period for which such
interest and fees are payable. Each determination by the Applicable Facility Agent of an interest rate hereunder shall be conclusive and binding for all purposes, absent manifest error. 
  
 (c) Whenever any payment hereunder shall be stated to be due on a day other than a Business Day, such payment shall be made
on the next succeeding Business Day, and such extension of time shall in such case be included in the computation of payment of interest or fees, as the case may be; provided, however, that if such extension would cause payment of
interest on or principal of any Loan to be made in the next calendar month, such payment shall be made on the immediately preceding Business Day. All repayments of any Revolving Loans or Term Loans shall be applied to repay such Loans outstanding
with those Loans which have earlier expiring Eurocurrency Interest Periods being repaid prior to those which have later expiring Eurocurrency Interest Periods. 
  

(d) Unless the Applicable Facility Agent shall have received notice from a Borrower to the Lenders prior to the date on which any payment is due
hereunder that such Borrower will not make such payment in full, the Applicable Facility Agent may assume that such Borrower has made such payment in full to the Applicable Facility Agent on such date and the Applicable Facility Agent may, in
reliance upon such assumption, cause to be distributed to each Lender on such due date an amount equal to the amount then due such Lender. If and to the extent such Borrower shall not have made such payment in full to the Applicable Facility Agent,
each Lender shall repay to the Applicable Facility Agent forthwith on demand such amount distributed to such Lender together with interest thereon at the rate applicable to Loans for each day from the date such amount is distributed to such Lender
until the date such Lender repays such amount to the Applicable Facility Agent. 
  
 (e) Subject to the provisions of clause (f) of this Section 2.14 (and except as otherwise provided in Section 2.10), all payments and any other amounts received by the Applicable Facility Agent from or for the benefit
of a Borrower shall be applied first, to pay principal of and interest on any portion of the Loans which the Applicable Facility Agent may have advanced pursuant to the express provisions of this Agreement on behalf of any Lender, for which the
Applicable Facility Agent has not then been reimbursed by such Lender or such Borrower; second, to pay all other Obligations then due and payable; and third, as such Borrower so designates. Payments in respect of Revolving Loans received by the
Senior A Facility Agent shall be distributed to each Revolving Credit Lender in accordance with such Lender’s Ratable Portion of the Revolving Credit Commitments; payments in respect of Alternative Currency Loans received by the Senior A
Facility Agent shall be distributed to each Alternative Currency Lender in accordance with such Lender’s Alternative Currency Ratable Portion of the Alternative Currency Commitments; prepayments in respect of the Term A Loans received by the
Senior A Facility Agent shall be distributed to each Term A Loan Lender in accordance with such Lender’s Ratable Portion of the Term A Loans; prepayments in respect of the Term B Loans received by the Senior B Facility Agent shall be
distributed to each Term B Loan Lender in accordance with such Lender’s Ratable Portion of the Term B Loans; and 
  

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 all payments of fees and all other payments in respect of any other Obligation shall be allocated among such of the
Lenders and Issuers as are entitled thereto, and, if to the Lenders, in proportion to their respective Ratable Portions or Alternative Currency Ratable Portions, as applicable. 
  
 (f) After the occurrence and during the continuance of an Event of Default, the Borrowers hereby irrevocably waive the
right to direct the application of any and all payments in respect of the Obligations and any proceeds of Collateral, and agree that the Senior A Facility Agent may, and shall upon either (A) the written direction of the Requisite Senior Lenders or
(B) the acceleration of the Obligations pursuant to Section 9.2, deliver a Blockage Notice and apply (x) all payments in respect of any Obligations and all funds on deposit in any Cash Collateral Account (including all proceeds arising from a
Reinvestment Event that are held in the Cash Collateral Account pending application of such proceeds as specified in a Reinvestment Notice) and (y) all other proceeds of Collateral, in each case in the order set forth in Section 4.3 of the
Priorities Intercreditor Agreement; provided, however, that if sufficient funds are not available to fund all payments to be made in respect of any of the Obligations described in the Priorities Intercreditor Agreement, the available funds
being applied with respect to any such Obligation (unless otherwise specified in such clause) shall be allocated to the payment of such Obligations ratably, based on the proportion of the Applicable Facility Agent’s and each Lender’s or
Issuer’s interest in the aggregate outstanding Obligations described in such clauses. The order of priority set forth in Section 4.3 of the Priorities Intercreditor Agreement may at any time and from time to time be changed by the agreement of
the Requisite Lenders but only as provided in the Priorities Intercreditor Agreement without necessity of notice to or consent of or approval by the Borrower, any Secured Party that is not a Lender or Issuing Bank, or any other Person, but only with
the prior written consent of the Facility Agents in addition to the Requisite Lenders as provided in the Priorities Intercreditor Agreement. 
  
 (g) At the option of the Senior A Facility Agent, Reimbursement Obligations, interest, fees, expenses and other sums due and payable in respect of the
Revolving Loans and Protective Advances may be paid from the proceeds of Revolving Loans. The Borrowers hereby authorize the Revolving Credit Lenders to make Revolving Loans pursuant to Section 2.2(a), from time to time in such Revolving Credit
Lenders’ discretion, which are in the amounts of any and all Protective Advances and interest, fees, expenses and other sums payable in respect of the Revolving Loans, and further authorizes the Senior A Facility Agent to give the Revolving
Credit Lenders notice of any Borrowing with respect to such Protective Advances and Revolving Loans and to distribute the proceeds of such Protective Advances and Revolving Loans to pay such amounts. The Borrowers agree that all such Protective
Advances and Revolving Loans so made shall be deemed to have been requested by it (irrespective of the satisfaction of the conditions in Section 3.2, which conditions the Revolving Credit Lenders irrevocably waive) and directs that all proceeds
thereof shall be used to pay such amounts. 
  
 (h) The Borrowers
hereby authorize each Lender and each Affiliate of each Lender, if and to the extent payment owed to such Lender by a Borrower is not made when due hereunder, to charge from time to time against any or all of the Borrowers’ accounts with such
Lender or Affiliate any amount so due. 
  

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 Section 2.15. Special Provisions Governing Loans. 
  
 (a) Determination of Interest Rate. The Eurocurrency Rate for
each Interest Period for Loans shall be determined by the Applicable Facility Agent pursuant to the procedures set forth in the definition of “Eurocurrency Rate.” The Applicable Facility Agent’s determination shall be
presumed to be correct, absent manifest error, and shall be binding on the Borrowers. 
  
 (b) Interest Rate Unascertainable, Inadequate or Unfair. 
  
 (i) In the event that: (A) the Applicable Facility Agent determines that adequate and fair means do not exist for ascertaining the
applicable interest rates by reference to which the Eurocurrency Rate then being determined is to be fixed; or (B) the Applicable Requisite Lenders notify the Applicable Facility Agent that the Eurocurrency Rate for any Interest Period will not
adequately reflect the cost to the Lenders of making or maintaining such Loans for such Interest Period, the Applicable Facility Agent shall forthwith so notify the Borrowers and the Lenders giving particulars of the relevant circumstances giving
rise to its issue (a “Determination Notice”). After the giving of any Determination Notice the undrawn amount of the Commitments may still be drawn down (subject to the other terms of this Agreement) but on a Substitute Basis
in accordance with Section 2.15(b)(ii). 
  
 (ii)
During the period of 10 days after the Determination Notice has been given by the Applicable Facility Agent under Section 2.15(b)(i) the relevant Lenders shall (having consulted in good faith with the Applicable Memec Parent) certify an alternative
basis (the “Substitute Basis”) for making available or, as the case may be, maintaining their Ratable Portions. The Substitute Basis may (without limitation) include alternative interest periods, alternative currencies or
alternative rates of interest but shall include a margin above the cost of funds (including Mandatory Costs) to such relevant Lenders equivalent to the Applicable Margin. Each Substitute Basis so certified shall be binding upon each borrower and
shall take effect in accordance with its terms from the date specified in the Determination Notice until such time as the Applicable Facility Agent notifies the Applicable Memec Parent that none of the circumstances specified in Section 2.15(b)(i)
continues to exist, whereupon the normal interest rate fixing provisions of this Agreement shall apply. 
  
 (c) Increased Costs. If at any time any Lender shall determine that the introduction of or any change in or in the interpretation of any
law, treaty or governmental rule, regulation or order (other than any change by way of imposition or increase of reserve requirements included in determining the Eurocurrency Rate) or the compliance by such Lender with any guideline, request or
directive from any central bank or other Governmental Authority (whether or not having the force of law, but if not having the force of law, being one compliance with which is in accordance 
  

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 with the usual practices of Persons to whom such guideline, request or directive is intended to apply, in each case,
occurring after the Signing Date), there shall be any increase in the cost to such Lender of agreeing to make or making, funding or maintaining any Loans, then the Borrowers shall from time to time, within three Business Days after demand by such
Lender (with a copy of such demand to the Facility Agents), pay to the Applicable Facility Agent for the account of such Lender additional amounts sufficient to compensate such Lender for such increased cost. A certificate as to the amount of such
increased cost, submitted to the Borrowers and the Facility Agents by such Lender, shall be conclusive and binding for all purposes, absent manifest error. 
  
 (d) Illegality. Notwithstanding any other provision of this Agreement, if any Lender determines that the introduction of or any change in
or in the interpretation of any law, treaty or governmental rule, regulation or order after the Closing Date shall make it unlawful, or any central bank or other Governmental Authority shall assert that it is unlawful, for such Lender to make Loans
or to continue to fund or maintain Loans, then, on notice thereof and demand therefor by such Lender to the Borrowers through the Applicable Facility Agent whereupon (a) such relevant Lender’s Commitments shall be reduced to the extent of such
illegality and (b) each relevant Borrower shall be obliged to prepay and/or discharge the Ratable Portion of such relevant Lender to such Facility on a date not being earlier than the latest date permitted by the relevant law or regulation.

  
 (e) Breakage Costs. In addition to all amounts
required to be paid by the Borrowers pursuant to Section 2.11, the Borrowers shall compensate each Lender, upon demand, for all losses, expenses and liabilities (including any loss or expense incurred by reason of the liquidation or reemployment of
deposits or other funds acquired by such Lender to fund or maintain such Lender’s Loans to the Borrowers but excluding any loss of the Applicable Margin on the relevant Loans) which that Lender may sustain (i) if for any reason (other than as a
result of a default by such Lender) a proposed Borrowing, continuation of Loans does not occur on a date specified therefor in a Notice of Borrowing or a Notice of Continuation given by a Borrower or in a telephonic request by it for borrowing or
continuation or a successive Interest Period does not commence after notice therefor is given pursuant to Section 2.12, (ii) if for any reason any Loan is prepaid (including mandatorily pursuant to Section 2.10) on a date which is not the last day
of the applicable Interest Period or (iii) as a consequence of any failure by a Borrower to repay Loans when required by the terms hereof. The Lender making demand for such compensation shall deliver to the Borrowers concurrently with such demand a
written statement as to such losses, expenses and liabilities, and this statement shall be conclusive as to the amount of compensation due to that Lender, absent manifest error. 
  
 Section 2.16. Capital Adequacy. If at any time any Lender determines that (a) the adoption of or any change
in or in the interpretation of any law, treaty or governmental rule, regulation or order after the date of this Agreement regarding capital adequacy, (b) compliance with any such law, treaty, rule, regulation, or order, or (c) compliance with any
guideline or request or directive from any central bank or other Governmental Authority (whether or not having the force of law, but if 
  

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 not having the force of law, being one compliance with which is in accordance with the usual practices of Persons to whom
such guideline, request or directive is intended to apply, in each case, occurring after the Effective Date) shall have the effect of reducing the rate of return on such Lender’s (or any corporation controlling such Lender’s) capital as a
consequence of its obligations hereunder or under or in respect of any Letter of Credit to a level below that which such Lender or such corporation could have achieved but for such adoption, change, compliance or interpretation, then, upon within
three Business Days after demand by such Lender (with a copy of such demand to the Facility Agents), the Borrowers shall pay to the Applicable Facility Agent for the account of such Lender, from time to time as specified by such Lender, additional
amounts sufficient to compensate such Lender for such reduction. A certificate as to such amounts submitted to the Borrowers and the Facility Agents by such Lender shall be conclusive and binding for all purposes absent manifest error. 

 
 Section 2.17. Taxes. 
  
 (a) Any and all payments by the Borrowers under each Loan Document shall be
made free and clear of and without deduction for any and all present or future taxes, levies, imposts, deductions, charges or withholdings, and all liabilities with respect thereto, excluding (i) in the case of each Lender and each Facility Agent
(A) taxes measured by its net income, and franchise taxes imposed on it, by the jurisdiction (or any political subdivision thereof) under the laws of which such Lender or such Facility Agent (as the case may be) is organized and (B) any United
States or United Kingdom withholding taxes payable with respect to payments under the Loan Documents under laws (including any statute, treaty or regulation) in effect on the Closing Date (or, in the case of an Eligible Assignee, the date of the
Assignment and Acceptance) applicable to such Lender or such Facility Agent, as the case may be, but not excluding any United States or United Kingdom withholding payable as a result of any change in such laws occurring after the Closing Date (or
the date of such Assignment and Acceptance) and (ii) in the case of each Lender, taxes measured by its net income, and franchise taxes imposed on it, by the jurisdiction in which such Lender’s Lending Office is located (all such non-excluded
taxes, levies, imposts, deductions, charges, withholdings and liabilities being hereinafter referred to as “Taxes”). If any Taxes shall be required by law to be deducted from or in respect of any sum payable under any Loan
Document to any Lender or either Facility Agent (A) the sum payable shall be increased as may be necessary so that after making all required deductions (including deductions applicable to additional sums payable under this Section 2.17) such Lender
or such Facility Agent (as the case may be) receives an amount equal to the sum it would have received had no such deductions been made, (B) the Borrowers shall make such deductions, (iii) the Borrowers shall pay the full amount deducted to the
relevant taxing authority or other authority in accordance with applicable law, and (iv) the Borrowers shall deliver to the Facility Agents evidence of such payment; provided, however, that (x) if any Borrower pays any additional amounts
under this Section 2.17(a) (a “Tax Payment”), and (y) a Lender determines that it has effectively obtained a refund of taxes or a credit against taxes on its overall net income by reason of such Tax Payment (a “Tax
Credit”), and (z) such Lender is reasonably able to identify such Tax Credit as being attributable to the Tax Payment, then such Lender shall reimburse to such Borrower such proportion 
  

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 of such Tax Credit (net of such Lender’s reasonable costs and expenses in obtaining such Tax Credit) as such Lender
determines will leave such Lender, after such reimbursement, in no better and no worse position than that in which it would have been if such Tax Payment had not been required. The relevant Borrower shall repay any amount paid to it pursuant hereto
promptly upon receipt of notice from the relevant Lender if all or part of the relevant Tax Credit is subsequently disallowed or cancelled. Nothing herein contained shall interfere with the right of any Lender to arrange its tax and other affairs in
whatever manner it shall think fit, and no Lender shall be under any obligation to disclose any information regarding the organization of its affairs. 
  
 (b) In addition, the Borrowers agree to pay any present or future stamp or documentary taxes or any other excise or property taxes, charges or similar
levies of the United States or any political subdivision thereof or any applicable foreign jurisdiction, and all liabilities with respect thereto, which arise from any payment made under any Loan Document or from the execution, delivery or
registration of, or otherwise with respect to, any Loan Document (collectively, “Other Taxes”). 
  
 (c) Within thirty days after the date of any payment of Taxes or Other Taxes, the applicable Borrower will furnish to the Applicable Facility Agent, at
its address referred to in Section 11.8, the original or a certified copy of a receipt evidencing payment thereof. 
  
 (d) Without prejudice to the survival of any other agreement of the Borrowers hereunder, the agreements and obligations of the Borrowers contained in
this Section 2.17 shall survive the payment in full of the Obligations. 
  
 (e) Prior to the Closing Date in the case of each Non-U.S. Lender that is a signatory hereto, and on the date of the Assignment and Acceptance pursuant to which it becomes a Lender in the case of each other Non-U.S.
Lender and from time to time thereafter if requested by a Borrower or the Facility Agents, each Non-U.S. Lender that is entitled at such time to an exemption from United States withholding tax, or that is subject to such tax at a reduced rate under
an applicable tax treaty, shall provide the Facility Agents and such Borrower with two completed copies of: (i) Form W-8ECI (claiming exemption from withholding because the income is effectively connected with a U.S. trade or business) (or any
successor form); (ii) Form W-8BEN (claiming exemption from, or a reduction of, withholding tax under an income tax treaty) (or any successor form); (iii) in the case of a Non-U.S. Lender claiming exemption under Sections 871(h) or 881(c) of the
Code, a Form W-8BEN (claiming exemption from withholding under the portfolio interest exemption) (or successor form); or (iv) or other applicable form, certificate or document prescribed by the IRS certifying as to such Non-U.S. Lender’s
entitlement to such exemption from United States withholding tax or reduced rate with respect to all payments to be made to such Non-U.S. Lender under the Loan Documents. Unless the Borrowers and the Facility Agents have received forms or other
documents satisfactory to them indicating that payments under any Loan Document to or for a Non-U.S. Lender are not subject to United States withholding tax or are subject to such tax at a rate reduced by an applicable tax treaty, the Borrowers or
the Facility Agents shall withhold taxes from such payments at the applicable statutory rate. 
  

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 (f) Each Lender represents to the Borrowers that such Lender is a Qualifying Lender at the date hereof
or, in the case of a Lender which becomes a party hereto as an assignee, that it is a Qualifying Lender at the date upon which it becomes a party hereto in such capacity. Each Lender which is a Treaty Lender agrees to co operate with the Borrowers
with a view to submitting any forms required for the purpose of ensuring the application of the relevant Applicable Treaty so far as relevant; provided, however, that no Lender shall be required pursuant to this Section 2.17(f) to
disclose any confidential information relating to the organization of its affairs or to incur any expense (unless reimbursed by the Borrowers) for the purpose of claiming exemption or relief from the withholding tax envisaged hereunder pursuant to
the relevant Applicable Treaty. If, otherwise than as a result of the introduction of, change in, or any change in the official interpretation, administration or application of, any law or treaty occurring after the date of this Agreement (or after
the date of the relevant assignment or transfer, in the case of a Lender becoming a Lender after the date hereof), a Lender ceases to be a Qualifying Lender or fails to satisfy the representation set out in Section 10.9, the Borrowers will not be
liable to pay to that Lender under Section 2.17(a)any amount in excess of the amount they would have been obliged to pay if that Lender had not ceased to be a Qualifying Lender or not failed to satisfy the representation set out in Section 10.9.

  
 (g) Any Lender claiming any additional amounts payable
pursuant to this Section 2.17 or, in the event that (i)(A) any Lender makes a claim under Section 2.15(c)) or Section 2.16, or (B) it becomes illegal for any Lender to continue to fund or make any Loan and (ii) such Lender notifies the Borrowers
pursuant to Section 2.15(d), such Lender shall, in consultation with the Facility Agents and the affected Borrower (upon such Borrower’s written request) use its reasonable efforts (consistent with its internal policy and legal and regulatory
restrictions), including changing the jurisdiction of its Lending Office or substituting another financial institution that is an Affiliate of such Lender, if the making of such a change would avoid the need for, or reduce the amount of, any such
additional amounts which would be payable or may thereafter accrue and would not, in the sole determination of such Lender, be otherwise disadvantageous to such Lender (other than minor costs and expenses of an administrative nature). 
  
 Section 2.18. Substitution of Lenders. In the event that (a)
(i) any Lender makes a claim under Section 2.15(c) or Section 2.16, or (ii) it becomes illegal for any Lender to continue to fund or make any Loan and such Lender notifies the Borrower pursuant to Section 2.15(d), or (iii) a Borrower is required to
make any payment pursuant to Section 2.17 that is attributable to any Lender, or (iv) any Lender is a Non-Funding Lender, (b) in the case of clause (a)(i) above, as a consequence of increased costs in respect of which such claim is made, the
effective rate of interest payable to such Lender under this Agreement with respect to its Loans materially exceeds the effective average annual rate of interest payable to the Requisite Lenders under this Agreement and (c) Lenders holding at least
75% of the Commitments are not subject to such increased costs or illegality, payment or proceedings (any such 
  

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 Lender, an “Affected Lender”), the Borrowers may substitute another financial institution for
such Affected Lender hereunder, upon reasonable prior written notice (which written notice must be given within 90 days following the occurrence of any of the events described in clauses (a)(i), (ii), (iii) or (iv)) by the Borrowers to the Facility
Agents and the Affected Lender that the Borrowers intend to make such substitution, which substitute financial institution must be an Eligible Assignee and, if not a Lender, reasonably acceptable to the Facility Agents (it being understood that
neither the Facility Agents nor any Lender shall have any obligation to the Borrowers to find a replacement Lender or other such substitute financial institution); provided, however, that if more than one Lender claims increased costs,
illegality or right to payment arising from the same act or condition and such claims are received by the Borrowers within thirty days of each other then the Borrowers may substitute all, but not (except to the extent the Borrowers have already
substituted one of such Affected Lenders before the Borrowers’ receipt of the other Affected Lenders’ claim) less than all, Lenders making such claims. In the event that the proposed substitute financial institution or other entity is
reasonably acceptable to the Facility Agents and the written notice was properly issued under this Section 2.18, the Affected Lender shall sell and the substitute financial institution or other entity shall purchase, pursuant to an Assignment and
Acceptance, all rights and claims of such Affected Lender under the Loan Documents and the substitute financial institution or other entity shall assume and the Affected Lender shall be relieved of its Commitments and all other prior unperformed
obligations of the Affected Lender under the Loan Documents (other than in respect of any damages (other than exemplary or punitive damages, to the extent permitted by applicable law) in respect of any such unperformed obligations). Upon the
effectiveness of such sale, purchase and assumption (which, in any event shall be conditioned upon the payment in full by the Borrowers to the Affected Lender in cash of all fees, unreimbursed costs and expenses and indemnities accrued and unpaid
through such effective date), the substitute financial institution or other entity shall become a “Lender” hereunder for all purposes of this Agreement having a Commitment in the amount of such Affected Lender’s
Commitment assumed by it and such Commitment of the Affected Lender shall be terminated; provided, however, that all indemnities under the Loan Documents shall continue in favor of such Affected Lender. 
  
 Section 2.19. Ancillary Borrowers. The Applicable Memec Parent
shall have the right to designate any Subsidiary other than a Domestic Subsidiary to become an Ancillary Borrower for all purposes under this Agreement by giving the Senior A Facility Agent at least fourteen days written notice of its intention to
designate such Subsidiary as an Ancillary Borrower. Such Ancillary Borrower shall not be entitled to request the making of Ancillary Advances hereunder unless the following conditions precedent are satisfied: 
  
 (i) the Senior A Facility Agent (on behalf of itself, the
Lenders and the Issuers) shall have received on or before the initial utilization of any Ancillary Facility, all of the following in form and substance reasonably satisfactory to the Senior A Facility Agent: 
  
 (A) an Ancillary Borrower Assumption Agreement, pursuant to
which, among other things, (I) such Ancillary Borrower agrees to be bound by the terms of the Loan Documents applicable to Ancillary Borrowers and (II) the Senior A Facility Agent approves the designation of such Subsidiary as an Ancillary Borrower;

  

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 (B) to the extent such Ancillary Borrower has not already executed and delivered such
Collateral Document and/or made such a pledge, and to the extent in the reasonable opinion of the Collateral Agent it can practicably and legally do so (by reference to the laws of the jurisdiction of its incorporation and/or the laws of the
jurisdiction where its relevant assets are located or which are binding upon it or its assets), a Collateral Document effective under the laws of the jurisdiction of incorporation of the Ancillary Borrower, pursuant to which the parent of such
Ancillary Borrower pledges 100% of the Stock of such Ancillary Borrower as security for the Ancillary Outstandings, together with share certificates representing such Stock and, where appropriate, stock powers or stock transfer forms executed in
blank or otherwise completed as appropriate; 
  
 (C) to the extent such Ancillary Borrower has not already granted such Liens, and to the extent in the reasonable opinion of the Collateral Agent it can practicably and legally do so (by reference to the laws of the jurisdiction of its
incorporation and/or the laws of the jurisdiction where its relevant assets are located or which are binding upon it or its assets), a Lien on the Accounts, Inventory and other property of such Ancillary Borrower, if required by the Ancillary
Lender, as security for the Ancillary Outstandings, together with such instruments, letters, filings, notices and other documents necessary for the perfection of such Liens; and 
  
 (D) such corporate documentation (including corporate resolutions, good standing certificates and
incumbency certificates), opinions of counsel and other documentation (including, for the avoidance of doubt, any statutory declarations, resolutions and reports required pursuant to Chapter VI, Part V of the UK Companies Act 1985) as the Senior A
Facility Agent may reasonably request; 
  
 (ii)
no Event of Default or Default shall have occurred and be continuing or would result from the making of any Ancillary Advances to such Ancillary Borrower; and 
  

(iii) all of the representations and warranties contained in Article IV and the other Loan Documents shall be true and correct in all
material respects on and as of the date of the designation of such Subsidiary as an Ancillary Borrower (other than representations and warranties which expressly speak as of a different date, which shall have been true and correct in all material
respects as of such specific date). 
  

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 Section 2.20. Effect of European Monetary Union If the United Kingdom participates in the
Economic and Monetary Union in accordance with Article 109j of the Treaty on European Union, then: 
  
 (a) If, and at any time while, Sterling and the Euro are at the same time recognized by the Bank of England as the lawful currency of the United Kingdom,
any amount expressed to be payable under this Agreement in Sterling shall be paid in Sterling or in Euro as (i) the Facility Agents may (in the case of any amount payable by the Lenders) by not less than three Business Days notice to the Borrowers
and the Lenders to that effect elect or (ii) the Borrowers may (in the case of any amount payable by the Borrowers) by not less than three Business Days notice to the Facility Agents to that effect elect; 
  
 (b) Any amount so elected to be paid in Euro shall be converted from
Sterling at the rate stipulated pursuant to Article 109l(4) of the Treaty and payment of the amount in Euro derived from such conversion shall discharge the obligation of the relevant party to pay Sterling; 
  
 (c) The Facility Agents, the Borrowers and the Lenders shall consult to
consider what (if any) changes are required to be made to this Agreement to (i) take account of the participation of the United Kingdom in monetary union and/or (ii) to reflect any consequential changes in market practice (including the settlement
of or rounding of obligations and the calculation of interest). If, after such consultation, the Facility Agents (acting on the instructions of the Requisite Lenders) reasonably and in good faith considers that any such amendments are required, the
Facility Agents shall notify the Borrowers and the Lenders of the amendments which it considers to be necessary and, notwithstanding Section 11.1, shall be entitled to make such amendments as to put the parties in the same position as if
participation had not occurred. 
  
 Any amendment so made to this
Agreement by the Facility Agents shall promptly be notified to the Lenders and the Borrowers by the Facility Agents and shall be binding on all the parties to this Agreement. 
  
 ARTICLE III  
  
 CONDITIONS TO LOANS AND LETTERS OF CREDIT 
  
 Section 3.1. Conditions Precedent to Loans and Letters of Credit on the Amendment Closing Date. The obligation of each Lender to make the
Loans requested to be made by it on the Amendment Closing Date and the obligation of each Issuer to issue or continue Letters of Credit on the Amendment Closing Date is subject to the satisfaction of all of the following conditions precedent:

  
 (a) Certain Documents. The Senior A Facility
Agent shall have received on or prior to the Amendment Closing Date each of the following, each dated on or prior to the Amendment Closing Date unless otherwise indicated or agreed to by the Facility Agents, in form and substance reasonably
satisfactory to the Facility Agents: 
  
 (i)
this Agreement, duly executed and delivered by the Borrowers and Memec Group Holdings and, for the account of each Lender requesting the same, a Note or Notes of the Borrowers conforming to the requirements set forth herein, along with updated
schedules required hereunder; 
  

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 (ii) the Priorities Intercreditor Agreement, duly executed by each of the parties
thereto; 
  
 (iii) the Accession Agreements, each
duly executed by Memec and Memec France and, in each case, duly executed by Memec Group Holdings; 
  
 (iv) each of the Collateral Documents listed on Part II of Schedule 1.1(a) (the “New Collateral Documents”), duly
executed by each Loan Party that is a party thereto, as applicable, together with: 
  
 (A) (1) in respect of Loan Parties which are Domestic Subsidiaries, evidence satisfactory to the Collateral Agent that the Collateral
Agent (for the benefit of the Secured Parties) has a valid and perfected first priority security interest (subject only to Liens permitted under Section 8.2) in the Collateral being granted pursuant to the New Collateral Documents which such Loan
Parties are a party (or in the case of filings or other actions necessary to perfect Liens granted on the Amendment Closing Date, will have a valid and perfected first priority security interest (subject only to Liens permitted under Section 8.2)
upon the applicable filings or other actions taken after the Amendment Closing Date), including (x) such documents duly executed by each such Loan Party as the Collateral Agent may request and as are customary with respect to the perfection of its
security interests in the Collateral (including financing statements under the UCC, patent, trademark and copyright security agreements suitable for filing with the Patent and Trademark Office or the Copyright Office, as the case may be, and other
applicable documents under the laws of any jurisdiction with respect to the perfection of Liens created by any New Collateral Document) and (y) copies of UCC search reports as of a recent date listing all effective financing statements that name any
Loan Party as debtor, together with copies of such financing statements, none of which shall cover the Collateral except for those which shall be terminated on the Amendment Closing Date); 
  
 (2) in respect of Loan Parties organized other than in the
United States of America, evidence customary in the applicable jurisdiction of organization that the Collateral Agent (for the benefit of the Secured Parties) has a valid and perfected security interest in the Collateral being granted pursuant to
the New Collateral Documents which such Loan Parties are a party, including such documents duly executed by each Loan Party as the Collateral Agent may request with respect to the perfection of its security interests in the 
  

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 Collateral (including any applicable documents under the laws of any jurisdiction with respect to the
perfection of Liens created by such New Collateral Document); 
  
 (B) where appropriate, share certificates representing all issued share capital of the Acquisition Entities and the Target Group being pledged pursuant to any New Collateral Document and, where appropriate, stock
powers for such share certificates or stock transfer forms executed in blank or otherwise completed as appropriate; 
  
 (C) all instruments representing any Pledged Notes being pledged pursuant to the relevant New Collateral Document duly endorsed in favor
of the Collateral Agent or in blank; 
  
 (D)
where required pursuant to the applicable New Collateral Documents, Blocked Account Letters from all Blocked Account Banks; 
  
 (E) where required pursuant to the applicable New Collateral Documents, Control Account Letters from (A) all securities intermediaries
with respect to all securities accounts and securities entitlements of any Loan Party, and (B) all futures commission agents and clearing houses with respect to all commodities contracts and commodities accounts held by any Loan Party; 

 
 (F) a copy of each consent required to be obtained by the
Loan Parties in connection with the granting of security interests in the Collateral; and 
  
 (G) a copy of each notice required to be delivered pursuant to the New Collateral Documents and evidence that they have been delivered to
the addressees thereof. 
  
 (v) a favorable
opinion of (A) Clifford Chance LLP, U.S. counsel to the Loan Parties, in the agreed form, (B) Weil, Gotshal & Manges, English counsel to the Lenders and (C) except as otherwise agreed between the Borrowers and the Facility Agents and the
Collateral Agent, counsel to the Lenders in each Eligible Jurisdiction, in each case addressed to the Facility Agents and the Lenders and addressing such other matters as any Lender through the Facility Agents may reasonably request (including, for
the avoidance of doubt, opinions from counsel in each Eligible Jurisdiction to the effect that the applicable Collateral Documents from the Original Closing Date remain valid, binding and existing, and continue to secure the Obligations
notwithstanding the amendments contemplated pursuant to this Agreement); 
  
 (vi) a copy of each Related Document delivered on the Original Closing Date that has been amended since the Original Closing Date certified as being complete and correct by a Responsible Officer of Memec Group
Holdings, and certification by a Responsible Officer of Memec 
  

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 Group Holdings that there have been no changes since the Original Closing Date to any other Related
Documents from those delivered on the Original Closing Date; 
  
 (vii) a copy of the Investment Agreement, in form and substance reasonably acceptable to the Facility Agents, duly executed by Schroder Advisers, and each of the other parties thereto, or confirmation that there have
been no changes to the Investment Agreement from that delivered on the Original Closing Date; 
  
 (viii) a copy of any Constituent Documents of any Loan Party which have been amended from those delivered on the Original Closing Date,
certified as of a recent date by, where customary in the jurisdiction of incorporation of such Loan Party, the Secretary of State or other Governmental Authority of the jurisdiction of organization and foreign qualification of such Loan Party,
together with, where available in the jurisdiction of incorporation of such Loan Party, certificates of such official attesting to the good standing of each such Loan Party and such amendments to the Constituent Documents as may be reasonably
required by the Facility Agents in connection with the execution and delivery of the Loan Documents or, in the case of Constituent Documents of Loan Parties which have not been amended, certification by a Responsible Officer of Memec Group Holdings
that there have been no changes to such Constituent Documents since such Constituent Documents were last delivered; 
  
 (ix) a certificate of an Authorized Officer of each Loan Party certifying (A) the names and true signatures of each officer of such Loan
Party who has been authorized to execute and deliver any Loan Document or other document required hereunder to be executed and delivered by or on behalf of such Loan Party, (B) the Constituent Documents of such Loan Party as in effect on the date of
such certification, (C) the resolutions of such Loan Party’s Board of Directors (or equivalent governing body) approving and authorizing the execution, delivery and performance of the Loan Documents to which it is a party and (D) that there
have been no changes in the Constituent Documents of such Loan Party from the articles or certificate of incorporation (or equivalent Constituent Document) since such Constituent Documents were last delivered; 
  
 (x) a certificate of the Chief Financial Officer of US
Holdco and each of the Domestic Subsidiaries, as applicable, stating that each of US Holdco and such Domestic Subsidiaries is Solvent after giving effect to the initial Loans and Letters of Credit made on the Amendment Closing Date, the application
of the proceeds thereof in accordance with Section 7.9 and the payment of all estimated legal, accounting and other fees related hereto and thereto; 
  
 (xi) a certificate of a Responsible Officer of Memec Group Holdings to the effect that (A) the conditions set forth in Section 3.1(c),

  

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 Section 3.1(e) and Section 3.1(f) have been satisfied and (ii) no litigation not listed on Schedule 4.7
shall have been commenced against any Loan Party or any of their Subsidiaries which, if adversely determined, would have a Material Adverse Effect; 
  
 (xii) evidence satisfactory to the Facility Agents that the insurance policies required by Section 7.5 and any Collateral Document are in
full force and effect; and 
  
 (xiii) in respect
of the Loan Parties incorporated under the laws of England and Wales and where appropriate, copies of all statutory declarations, auditors’ reports, comfort letters, board resolutions and board memoranda required for the purpose of compliance
with section 151 of the UK Companies Act 1985. 
  
 (b) Fees
and Expenses Paid. There shall have been paid to the Senior A Facility Agent, for the account of the Facility Agents and the Lenders, as applicable, all fees due and payable on or before the Amendment Closing Date (including all such fees
described in the Fee Letter), and all expenses due and payable on or before the Amendment Closing Date. 
  
 (c) Loan Documents. The Facility Agents shall be satisfied that all representations and warranties in the Loan Documents shall be the
correct in all material respects and no default or event which with the giving of notice or lapse of time or both would be a default has occurred thereunder. 
  
 (d) Application of Proceeds. The Facility Agents shall be satisfied that all proceeds of the Loans and the Letters of Credit made on the
Amendment Closing Date have been, or will be, used by the Borrowers and the other Group Members in accordance with Section 4.13. 
  
 (e) Consents, Etc. Each Group Member shall have (i) received all consents and authorizations required pursuant to any material Contractual
Obligation with any other Person and shall have obtained all consents and authorizations of, and effected all notices to and filings with, any Governmental Authority, in each case, as may be necessary to allow each of the Loan Parties lawfully (A)
to execute, deliver and perform, in all material respects, their respective obligations under the Loan Documents to which each of them, respectively, is, or shall be, a party and each other agreement or instrument to be executed and delivered by
each of them, respectively, pursuant thereto or in connection therewith, and (B) to create, perfect and maintain the Liens on the Collateral to be owned by each of them in the manner and for the purpose contemplated by the Loan Documents or (ii)
provided a confirmation that there are no such consents or authorisations mentioned in paragraph (i) above. There shall be no governmental or judicial action, actual or threatened, that has or could have a reasonable likelihood of restraining,
preventing or imposing burdensome conditions on the financing hereto. 
  

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 (f) Capital Structure. 
  
 (i) The pro forma consolidated capital structure of the Group (including all adjustments made in accordance
with GAAP and permitted by Regulation S-X) shall be consistent in all material respects with the Amendment Date Projections and the prior understandings of the Facility Agents; and 
  
 (ii) the pro forma consolidated capital structure of the Group, after giving effect to the Permitted IPO
Reorganization shall be consistent in all material respects with the prior understandings of the Facility Agents. 
  
 (g) Financial Statements. The Senior A Facility Agent shall have received, on or prior to the Amendment Closing Date, copies of the
following, each in form and substance satisfactory to the Facility Agents: 
  
 (i) the Financial Statements required to be delivered on or before such date pursuant to Section 6.1 of the Existing Credit Agreement; 
  
 (ii) the Amendment Date Due Diligence Reports and the PWC Reorganization Paper, each addressed to or
otherwise capable of being relied upon by the Facility Agents and the Lenders; and 
  
 (iii) the Amendment Date Projections. 
  
 (h) Borrowing Base Certificate. The Senior A Facility Agent shall have received a completed Borrowing Base Certificate certified by a
Responsible Officer of Memec Group Holdings dated as of a date not more than 45 days prior to the Amendment Closing Date. 
  
 (i) Receivables Purchase Facility. The Senior A Facility Agent shall have received, on or prior to the Amendment Closing Date, evidence in
form and substance satisfactory to them that the Commitment Expiry Date (as defined in the Asset-Backed Loan Agreement) has been extended to a date which is not earlier than October 2007. 
  
 Section 3.2. Conditions Precedent to Each Loan and Letter of Credit. The obligation of each Lender on any
date to make any Loan (including, for the avoidance of doubt, the obligation of any Ancillary Lender to make an Ancillary Advance) and of each Issuer on any date to issue any Letter of Credit is subject to the satisfaction of all of the following
conditions precedent: 
  
 (a) Request for Borrowing or
Issuance of Letter of Credit. With respect to any Loan, the Applicable Facility Agents shall have received a duly executed Notice of Borrowing (or, in the case of an Ancillary Advance, any applicable request under the Ancillary Facility in
respect thereof), and with respect to any Letter of Credit, the Senior A Facility Agent and the Issuer shall have received a duly executed Letter of Credit Request. 
  

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 (b) Representations and Warranties; No Defaults. The following statements shall be true on
the date of such Loan or issuance, both before and after giving effect thereto and, in the case of such Loan, to the application of the proceeds therefrom: 
  
 (i) (A) for any Borrowing on the Amendment Closing Date, the representations and warranties set forth in Article IV (other than the
representation and warranty set forth in Section 4.3(c)) and in the other Loan Documents shall be true and correct on and as of the Amendment Closing Date, (B) on the date of completion of the Initial Public Offering, the representation and warranty
set forth in Section 4.3(c) shall be true and correct and (C) on the Syndication Completion Date and for any Borrowing after the Amendment Closing Date, all representations and warranties set forth in Section 4.1, Section 4.2, Section 4.4(a),
Section 4.4(b), Section 4.4(c), Section 4.4(d), Section 4.10, Section 4.11 and Section 4.12 shall be true and correct on and as of the Amendment Closing Date and shall be true and correct in all material respects on and as of any such date after the
Amendment Closing Date with the same effect as though made on and as of such date, except to the extent (a) such representations and warranties expressly relate to an earlier date, in which case they shall have been true and correct in all material
respects as of such earlier date and (b) (in the case of Section 4.4) reference to financial statements and projections shall be to those most recently delivered hereunder; 
  
 (ii) no Default or Event of Default has occurred and is continuing; and 
  
 (iii) the Borrowers shall have delivered the Borrowing Base
Certificate required by Section 6.1(h). 
  
 (c) Borrowing
Base. After giving effect to the Loans or Letters of Credit requested to be made or issued on any such date and the use of proceeds thereof, (i) the Original Dollar Amount of the Revolving Credit Outstandings and the Term Loan Outstandings
shall not exceed the Maximum Credit at such time, and (ii) the Required Asset Coverage Percentage shall be satisfied. 
  
 (d) No Legal Impediments. The making of the Loans or the issuance of such Letter of Credit on such date shall not violate any Requirement
of Law on the date of or immediately following such Loan or issuance and shall not be enjoined, temporarily, preliminarily or permanently. 
  
 (e) Limitation on Loans and Letters of Credit. There would not, after the making of such Loan or the issuance of such Letter of Credit, be
more than twenty Loans (aggregating as a single Loan, for purposes of this clause (e), all Loans having the same Interest Period, but excluding, for purposes of this clause (e), any Ancillary Advances) and Letters of Credit outstanding under the
Term Loan Facilities and the Revolving Credit Facility. 
  

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 Each submission by a Borrower to the Applicable Facility Agent of a Notice of Borrowing and the acceptance by such
Borrower of the proceeds of each Loan requested therein, and each submission by a Borrower to an Issuer of a Letter of Credit Request and the issuance of each Letter of Credit requested therein, shall be deemed to constitute a representation and
warranty by such Borrower as to the matters specified in Section 3.2(b) on the date of the making of such Loan or the issuance of such Letter of Credit. 
  
 ARTICLE IV  
  
 REPRESENTATIONS AND WARRANTIES 
  
 To induce the Lenders, the Issuers and the Facility Agents to enter into this Agreement, the Applicable Memec Parent and each Borrower represents and
warrants (and each other Loan Party represents and warrants (with respect to itself only) by virtue of its execution and delivery of the Collateral Documents) and the Applicable Memec Parent represents in relation to itself and its Subsidiaries
which are Loan Parties (for the purposes of which representations and warranties by the Applicable Memec Parent, each reference to “it” therein shall be deemed to include a reference to Memec Group Holdings (or Memec US
PubCo, as the case may be) and its Subsidiaries which are Loan Parties) to the Lenders, the Issuers and the Facility Agents that, on and as of the Amendment Closing Date, after the making of the Loans and other financial accommodations on the
Amendment Closing Date and on and as of each date as required by Section 3.2(b)(i): 
  
 Section 4.1. Corporate Existence; Compliance with Law. It (a) is duly organized, validly existing and, where appropriate, in good standing under the laws of the jurisdiction of its incorporation; (b) is
duly qualified as a foreign corporation and in good standing under the laws of each jurisdiction where such qualification is necessary, except where the failure to be so qualified or in good standing would not have a Material Adverse Effect; (c) has
all requisite power and authority and the legal right to own, pledge, mortgage and operate its properties, to lease the property it operates under lease and to conduct its business as now or currently proposed to be conducted; (d) is in compliance
with its Constituent Documents; (e) is in compliance with all applicable and material Requirements of Law; and (f) has all necessary licenses, permits, consents or approvals from or by, has made all necessary filings with, and has given all
necessary notices to, each Governmental Authority having jurisdiction, to the extent required for such ownership, operation and conduct, except for licenses, permits, consents, approvals or filings which can be obtained or made by the taking of
ministerial action to secure the grant or transfer thereof or the failure to obtain or make would not in the aggregate have a Material Adverse Effect. 
  
 Section 4.2. Corporate Power; Authorization; Enforceable Obligations. 
  
 (a) The execution, delivery and performance by it of the Loan Documents to which it is a party and the consummation of the
transactions contemplated thereby: 
  
 (i) are
within its corporate, limited liability company, partnership or other powers; 
  

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 (ii) have been or, at the time of delivery thereof pursuant to Article III will have
been duly authorized by all necessary corporate action, including the consent of shareholders where required; 
  
 (iii) do not and will not (A) contravene its respective Constituent Documents, (B) violate in any material respect any other Requirement
of Law applicable to any Loan Party (including Regulations T, U and X of the Federal Reserve Board), or any order or decree of any Governmental Authority or arbitrator applicable to any Loan Party, (C) conflict in any material respect with or result
in the material breach of, or constitute a default under, or result in or permit the termination or acceleration of, any of its material Contractual Obligations, or (D) result in the creation or imposition of any Lien upon any of its property, other
than those in favor of the Secured Parties pursuant to the Collateral Documents; and 
  
 (iv) do not require the consent of, authorization by, approval of, notice to, or filing or registration with, any Governmental Authority
or any other Person, other than those listed on Schedule 4.2 and which have been or will be, on or prior to the Amendment Closing Date, obtained or made (or in the case of filings or other actions necessary to perfect Liens granted on the Amendment
Closing Date, will be filed after the Amendment Closing Date), copies of which have been or will be delivered to the Facility Agents pursuant to Section 3.1 or Section 3.2, as the case may be, and each of which on the Amendment Closing Date will be
in full force and effect and, with respect to the Collateral, filings required to perfect the Liens created by the Collateral Documents. 
  
 (b) Each Loan Document to which it is a party will have been upon delivery thereof, duly executed and delivered by each Loan Party thereto. Each Loan
Documents to which it is a party will be, when delivered hereunder, its legal, valid and binding obligation, enforceable against it in accordance with its terms, subject to the effects of bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium and other similar laws relating to or affecting creditors’ rights generally, general equitable principles (whether considered in a proceeding in equity or at law) and an implied covenant of good faith and fair
dealing. 
  
 Section 4.3. Ownership of Memec Holdings;
Subsidiaries. 
  
 (a) Memec Holdings. The
authorized share capital of Memec Holdings consists of 100 ordinary shares, $1.00 par value per share, of which 100 shares are issued and outstanding. All of the outstanding share capital of Memec Holdings has been validly issued and is fully paid
and is owned beneficially and of record by Memec Group Holdings, free and clear of all Liens (other than Liens granted pursuant to the Collateral Documents). No Stock of Memec Holdings is subject to any option, warrant, right of conversion or
purchase or any similar right. There are no agreements or understandings to which Memec Group Holdings is a 
  

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 party with respect to the voting, sale or transfer of any shares of Stock of Memec Holdings or any agreement restricting
the transfer or hypothecation of any such shares. 
  
 (b)
Subsidiaries. Set forth on Schedule 4.3 hereto is a complete and accurate list and organizational chart showing, as of the Amendment Closing Date, all direct and indirect Subsidiaries of Memec Group Holdings and, as to each such
Subsidiary and the jurisdiction of its incorporation. No Stock of any Subsidiary of Memec Group Holdings is subject to any outstanding option, warrant, right of conversion or purchase or any similar right. All of the outstanding Stock of each
Subsidiary of Memec Group Holdings owned (directly or indirectly) by Memec Group Holdings has been validly issued, is fully paid and non-assessable and is owned by Memec Group Holdings or a Subsidiary of Memec Group Holdings, free and clear of all
Liens (other than the Lien in favor of the Secured Parties created pursuant to the Collateral Documents). Neither Memec Group Holdings nor any such Subsidiary is a party to, or has knowledge of, any agreement restricting the transfer or
hypothecation of any Stock of any such Subsidiary, other than the Loan Documents. Memec Group Holdings does not own or hold, directly or indirectly, any Stock of any Person other than such Subsidiaries and Investments permitted by Section 8.3.

  
 (c) Permitted IPO Reorganization and Application of
Proceeds. As of the date of the Initial Public Offering, (i) Memec US PubCo shall have executed and delivered to the Facility Agents, an Accession Agreement, (ii) all members of the Group are correctly placed and all necessary inter-company
loans, transfers, share exchanges and other steps occurring as a result of the Initial Public Offering and the Permitted IPO Reorganization (except for any steps specifically described therein as occurring after the date of the Initial Public
Offering) have been taken in compliance with all relevant laws and regulations and all requirements of relevant regulatory authorities and (iii) the Applicable Memec Parent and the Borrowers have procured that not less than $25,000,000 of proceeds
from the Initial Public Offering have been retained on the appropriate balance sheet of members of the Group to be used for general corporate purposes. 
  
 Section 4.4. Financial Statements. 
  
 (a) The (i) consolidated balance sheet of the Group as at December 31, 2003 and the related consolidated statements of income, retained earnings and cash
flows of the Group for the fiscal year then ended, certified by PricewaterhouseCoopers, and (ii) consolidated balance sheets of the Group as at the end of the most recent Fiscal Quarter of the most recent Fiscal Year which has ended on the date
which is 60 days before the Amendment Closing Date (the “Reporting Date”), and the related consolidated statements of income, retained earnings and cash flows of the Group for the portion of the most recent Fiscal Year then
ended, copies of which have been furnished to the Facility Agents, fairly present, subject, in the case of said balance sheets as at the Reporting Date, and said statements of income, retained earnings and cash flows for the portion of the most
recent Fiscal Year then ended, to the absence of footnote disclosure and normal recurring year-end audit adjustments, the consolidated financial condition of the Group as at such dates and the consolidated results of the operations of the Group for
the period ended on such dates, all in conformity with GAAP. 
  

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 (b) No Group Member has any material obligation, contingent liability or liability for taxes, long-term
leases or unusual forward or long-term commitment which is not reflected in the Financial Statements referred to in clause (a) above or in the notes thereto or permitted by this Agreement. 
  
 (c) The Amendment Date Projections have been prepared by Memec Group
Holdings in light of the past operations of the Group’s business, and reflect projections for the six year period beginning on January 1, 2004, on a quarterly basis for the first two Fiscal Years and on an annual basis thereafter. The Amendment
Date Projections are based upon estimates and assumptions stated therein, all of which Memec Group Holdings believes to be reasonable and fair in light of current conditions and current facts known to Memec Group Holdings and as of the Amendment
Closing Date reflect Memec Group Holdings’ good faith and reasonable estimates of the future financial performance of the Group and of the other information projected therein for the periods set forth therein. 
  
 (d) The unaudited pro forma consolidated and consolidating balance sheet of
the Group as at March 31, 2004, a copy of which has been delivered to each Lender in connection with this Agreement pursuant to Section 3.1, has been prepared as of the Amendment Closing Date, reflects as of such date, on a pro forma basis,
the consolidated financial condition of the Group, and the assumptions expressed therein were reasonable based on the information available to the Borrowers at the time so furnished and on the Amendment Closing Date. 
  
 (e) The Business Plan has been prepared by Memec Group Holdings in light of
the past operations of the Group’s business, and reflects management’s projections for the Fiscal Year set forth therein. The Business Plan is based upon estimates and assumptions stated therein, all of which Memec Group Holdings believes
to be reasonable and fair in light of the conditions and facts known to Memec Group Holdings on the date of delivery thereof and reflects Memec Group Holdings’ good faith and reasonable estimates of the financial performance of the Group and of
the forecasts and other information for the Fiscal Year set forth therein.. 
  
 Section 4.5. Material Adverse Change. As of the Signing Date, since December 31, 2003, there have been no events or developments that in the aggregate have had a Material Adverse Effect. 
  
 Section 4.6. Solvency. Both before and after giving effect to
(a) the Loans and Letter of Credit Obligations to be made or extended on the Original Closing Date, on the Amendment Closing Date, or such other date as Loans and Letter of Credit Obligations requested hereunder are made or extended, (b) the
disbursement of the proceeds of such Loans pursuant to the instructions of the Borrowers, (c) the Memec Acquisition and the consummation of the other financing transactions contemplated hereby and (d) the payment and accrual of all transaction costs
in connection with the foregoing, it is Solvent. 
  

 95 

 Section 4.7. Litigation. There are no pending or, to its knowledge, threatened actions,
investigations or proceedings affecting it or any of its Subsidiaries before any court, Governmental Authority or arbitrator other than those that in the aggregate have no reasonable risk of being determined adversely to any Group Member and, if so
determined, would not have a Material Adverse Effect. The performance of any action by it and its Subsidiaries required or contemplated by any of the Loan Documents or the Related Documents is not restrained or enjoined (either temporarily,
preliminarily or permanently). Schedule 4.7 lists all litigation pending against any Group Member at the Amendment Closing Date which, if adversely determined, would have a Material Adverse Effect. 
  
 Section 4.8. Taxes. 
  
 (a) All federal, state, local and foreign income and franchise and other
material tax returns, reports and statements (collectively, the “Tax Returns”) required to be filed by the Applicable Memec Parent or any of its Tax Affiliates have been or will be filed with the appropriate Governmental
Authorities in all jurisdictions in which such Tax Returns are required to be filed, all such Tax Returns are true and correct in all material respects, and all taxes, charges and other impositions reflected therein or otherwise due and payable have
been or will be paid prior to the date on which any fine, penalty, interest, late charge or loss may be added thereto for non-payment thereof except where contested in good faith and by appropriate proceedings if adequate reserves therefor have been
established on the books of the Applicable Memec Parent or such Tax Affiliate in conformity with GAAP. No such Tax Return is under audit or examination by any Governmental Authority and no notice of such an audit or examination or any assertion of
any claim for Taxes has been given or made by any Governmental Authority. Proper and accurate amounts have been withheld by the Applicable Memec Parent and each of its Tax Affiliates from their respective employees for all periods in full and
complete compliance with the tax, social security and unemployment withholding provisions of applicable Requirements of Law and such withholdings have been timely paid to the respective Governmental Authorities. 
  
 (b) None of the Applicable Memec Parent or any of its Tax Affiliates has (i)
executed or filed with the IRS or any other Governmental Authority any agreement or other document extending, or having the effect of extending, the period for the filing of any Tax Return or the assessment or collection of any charges; (ii) any
obligation under any tax sharing agreement or arrangement other than that to which the Facility Agents have a copy prior to the Signing Date; or (iii) been a member of an affiliated, combined or unitary group other than the group of which the
Applicable Memec Parent or any of its Tax Affiliates is the common parent. 
  
 Section 4.9. Full Disclosure. The written factual information prepared or furnished by or on behalf of it in connection with the Due Diligence Reports, the Related Documents, the business plan, the
financial models or this Agreement, taken as a whole and, on the date of the first Borrowing after delivery of the information memorandum in connection with the syndication of the Facilities, the information memorandum, does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make the statements contained therein or 
  

 96 

 herein not misleading. It does not have actual knowledge of any material facts or circumstances that have not been
disclosed to the Facility Agents or the Arrangers which would materially and adversely affect the decision of a reasonable Lender to provide Loans or an Issuer to issue Letters of Credit, and for Lenders and Issuers to provide other financial
accommodations to the Borrowers on the terms set out herein. 
  
 Section 4.10. Margin Regulations. No Group Member is engaged in the business of extending credit for the purpose of purchasing or carrying margin stock (within the meaning of Regulation U of the Federal Reserve Board), and no
proceeds of any Borrowing will be used to purchase or carry any margin stock or to extend credit to others for the purpose of purchasing or carrying any margin stock in contravention of Regulation T, U or X of the Federal Reserve Board. 

 
 Section 4.11. No Burdensome Restrictions; No Defaults.

  
 (a) No Group Member (i) is a party to any Contractual
Obligation the compliance with which would have a Material Adverse Effect or the performance of which by any thereof, either unconditionally or upon the happening of an event, would result in the creation of a Lien (other than a Lien permitted under
Section 8.2) on the property or assets of any thereof or (ii) is subject to any charter or corporate restriction which would have a Material Adverse Effect. 
  
 (b) No Group Member is in default under or with respect to any Contractual Obligation owed by it other than those defaults which in the aggregate would
not have a Material Adverse Effect. 
  
 (c) No Event of Default
has occurred and is continuing. 
  
 (d) To the best knowledge of
the Loan Parties, there is no Requirement of Law applicable to any Group Member the compliance with which by such Group Member would have a Material Adverse Effect. 
  
 Section 4.12. Investment Company Act; Public Utility Holding Company Act. No Group Member is (a) an
“investment company” or an “affiliated person” of, or “promoter” or “principal underwriter” for, an “investment company,” as such
terms are defined in the Investment Company Act of 1940, as amended or (b) a “holding company,” or an “affiliate” or a “holding company” or a “subsidiary
company” of a “holding company,” as each such term is defined and used in the Public Utility Holding Act of 1935, as amended. 
  
 Section 4.13. Use of Proceeds. The proceeds of the Loans and the Letters of Credit on the Amendment Closing
Date are being used by the Borrowers and the other Group Members for the purpose of: (a) refinancing existing Indebtedness of the Group under the Existing Credit Agreement; (b) prepaying (x) the entire outstanding Indebtedness (plus accrued and
unpaid interest and fees) under and cancelling the Consortium A Loans and Consortium B Loans and (y) up to $30,000,000 in principal amount of outstanding Indebtedness under the Investor Discount Bonds; (c) prepaying up to $80,000,000 in principal
amount of outstanding Indebtedness under the Asset-Backed Loan Agreement and related documentation 
  

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 (such prepayments and refinancings in this sub-clause (c), the “Permitted Refinancings”); and (d)
paying up to $12,000,000 in fees and other expenses incurred by the Borrowers in connection with the foregoing and with the execution and delivery of this Agreement; provided however, that Memec France shall only be permitted to borrow
Revolving Loans and shall not be permitted to borrow under either of the Term Loan Facilities; and provided further, however, that no proceeds of any Revolving Loans shall be used directly or indirectly to repay or prepay any outstanding
Indebtedness (including accrued and unpaid interest and fees) under the Consortium A Loans, the Consortium B Loans or the Investor Discount Bonds or any costs and expenses in connection therewith. The proceeds of the Loans and the Letters of Credit
following the Amendment Closing Date shall be used by the Borrowers and the other Group Members for the purpose of meeting working capital and general corporate capital requirements; provided however, that no such proceeds shall be used for
the payment of dividends. 
  
 Section 4.14.
Insurance. All policies of insurance of any kind or nature of the Group, including policies of life, fire, theft, product liability, public liability, property damage, other casualty, employee fidelity, workers’ compensation and
employee health and welfare insurance, are in full force and effect and are of a nature and provide such coverage as is sufficient and as is customarily carried by businesses of the size and character of such Person. No Group Member has been refused
insurance for any material coverage which it had applied or had any policy of insurance terminated (other than at its request). 
  
 Section 4.15. Labor Matters. 
  
 (a) There are no strikes, work stoppages, slowdowns or lockouts pending or threatened against or involving any Group Member, other than those which in
the aggregate would not have a Material Adverse Effect. 
  
 (b)
There are no unfair labor practices, grievances or complaints pending, or, to any Loan Party’s knowledge, threatened against or involving any Group Member, nor are there any arbitrations or grievances threatened involving any Group Member,
other than those which, in the aggregate, if resolved adversely to such Group Member, would not have a Material Adverse Effect. 
  
 (c) Except as set forth on Schedule 4.15, as of the Amendment Closing Date, there is no collective bargaining agreement covering any of the employees of
any Group Member. 
  
 (d) Schedule 4.15 sets forth, as of Signing
Date, all material consulting agreements, executive committee employment agreements, executive compensation plans, deferred compensation agreements, employee stock purchase and stock option plans of each Group Member. 
  
 Section 4.16. ERISA. 
  
 (a) Each employee benefit plan of the Group Members which is intended to
qualify under Section 401 of the Code does so qualify, and any trust 
  

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 created thereunder is exempt from tax under the provisions of Section 501 of the Code, except where such failures in the
aggregate would not have a Material Adverse Effect. 
  
 (b) Each
Title IV Plan is in compliance in all material respects with applicable provisions of ERISA, the Code and other Requirements of Law except for non-compliances that in the aggregate would not have a Material Adverse Effect. 
  
 (c) There has been no, nor is there reasonably expected to occur, any ERISA
Event which would have a Material Adverse Effect. 
  
 (d) Except
to the extent set forth on Schedule 4.16, no Group Member nor any ERISA Affiliate has any Withdrawal Liability as a result of its complete withdrawal as of the date hereof from any Multiemployer Plan. 
  
 Section 4.17. Environmental Matters. 
  
 (a) The operations of the Group Members have been and are in compliance
with all Environmental Laws, including obtaining and complying with all required environmental, health and safety Permits, other than non-compliances that in the aggregate would not have (i) a reasonable likelihood of any Group Member incurring
Environmental Liabilities and Costs in excess of $15,000,000 and (ii) a Material Adverse Effect. 
  
 (b) No Group Member nor any Real Property currently or, to the knowledge of any Loan Party, previously owned, operated or leased by or for any Group
Member is subject to any pending or, to the knowledge of any Loan Party, threatened, claim, order, agreement, notice of violation, notice of potential liability or is the subject of any pending or threatened proceeding or governmental investigation
under or pursuant to Environmental Laws other than those that in the aggregate would not have (i) a reasonable likelihood of any Group Member incurring Environmental Liabilities and Costs in excess of $15,000,000 and (ii) a Material Adverse Effect.

  
 (c) Except as disclosed on Schedule 4.17, no Group Member is
a treatment, storage or disposal facility requiring a permit under the Resource Conservation and Recovery Act, 42 U.S.C. § 6901 et seq., the regulations thereunder or any state analog. 
  
 (d) There are no facts, circumstances or conditions arising out of or
relating to the operations or ownership of real property owned, operated or leased by any Group Member which are not specifically included in the financial information furnished to the Lenders other than those that in the aggregate would not have
(i) a reasonable likelihood of any Group Member incurring Environmental Liabilities and Costs in excess of $15,000,000 and (ii) a Material Adverse Affect. 
  
 (e) As of the Signing Date, no Environmental Lien has attached to any property of any Group Member and, to the knowledge of the Loan Parties, no facts,
circumstance or conditions exist that could reasonably be expected to result in any such Environmental Lien attaching to any such property. 
  

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 Section 4.18. Intellectual Property. Each Group Member owns or licenses or otherwise has
the right to use all licenses, permits, patents, patent applications, trademarks, trademark applications, service marks, trade names, copyrights, copyright applications, franchises, authorizations and other intellectual property rights (including
all Intellectual Property (as defined in the Borrower Security Agreement)) that are necessary for the operations of its business, without infringement upon or conflict with the rights of any other Person with respect thereto, including all trade
names associated with any private label brands of the Group Members, save to the extent that the failure to own such licenses or have such rights would not have, or would not be reasonably likely to have, a Material Adverse Effect. To each Loan
Party’s knowledge, no slogan or other advertising device, product, process, method, substance, part or component, or other material now employed, or now contemplated to be employed, by any Group Member infringes upon or conflicts with any
rights owned by any other Person, and no claim or litigation regarding any of the foregoing is pending or threatened, save to the extent that the same would not have, or would not be reasonably likely to have, a Material Adverse Effect. 

 
 Section 4.19. Title; Real Property. Each Group Member (i)
has good and marketable title to, or valid leasehold interests in, all Real Property and good title to all personal property purported to be owned by it, including those reflected on the most recent Financial Statements delivered by the Borrower,
and none of such properties and assets is subject to any Lien, except Liens permitted under Section 8.2, and (ii) has received all deeds, assignments, waivers, consents, non-disturbance and recognition or similar agreements, bills of sale and other
documents, and has duly effected all recordings, filings and other actions necessary to establish, protect and perfect its right, title and interest in and to all such property, save to the extent that the failure to have such title or interest or
to have received such agreements and documents would not have, or would not be reasonably likely to have, a Material Adverse Effect. 
  
 Section 4.20. Related Documents.  
  
 (a) The execution, delivery and performance by it of the Related Documents to which it is a party and the consummation of the transactions contemplated
thereby by it: 
  
 (i) are within its respective
corporate, limited liability company, partnership or other powers; 
  
 (ii) have been duly authorized by all necessary corporate or other action, including the consent of stockholders where required; 
  
 (iii) do not and will not (A) contravene or violate its Constituent Documents, (B) violate in any material
respect any other Requirement of Law applicable to it, or any order or decree of any Governmental Authority or arbitrator, (C) conflict in any material respect with or result in the material breach of, or constitute a default under, or result in or
permit the termination or acceleration of, any of its material Contractual Obligations or (D) result in the creation or imposition of any Lien upon any of its property; and 
  

 100 

 (iv) do not require the consent of, authorization by, approval of, notice to, or filing
or registration with, any Governmental Authority or any other Person, other than those which will have been obtained at the Applicable Closing Date, each of which will be in full force and effect on each Applicable Closing Date and none of which
will on any Applicable Closing Date impose materially adverse conditions upon the exercise of control by Memec Group Holdings over Memec Limited, by Memec Limited over Overseas Holdco, by Overseas Holdco over Memec LLC or by the Applicable Memec
Parent over any of its Subsidiaries. 
  
 (b) Each of the Related
Documents has been, or at the Original Closing Date will have been, duly executed and delivered by each Loan Party thereto and at the Original Closing Date will be the legal, valid and binding obligation of each Loan Party thereto, enforceable
against such Loan Party in accordance with its terms subject to the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws relating to or affecting creditors’ rights generally, general
equitable principles (whether considered in a proceeding in equity or at law) and an implied covenant of good faith and fair dealing. 
  
 Section 4.21. [Intentionally Omitted] 
  
 ARTICLE V  
  
 FINANCIAL COVENANTS 
  
 As long as any of the Obligations or the Commitments remain outstanding, unless the Requisite Lenders otherwise consent in writing, the Applicable Memec
Parent and each Borrower agrees with the Lenders and the Facility Agents that: 
  
 Section 5.1. Maximum Leverage Ratio. The Group will maintain a Leverage Ratio, as determined as of the last day of each Fiscal Quarter set forth below, and calculated for the four Fiscal Quarters ending
on such day, of not more than the maximum ratio set forth opposite such Fiscal Quarter: 
  

					
	 Fiscal Quarter Ending

	  	Maximum Leverage Ratio
Term A Loans and
Revolving Credit Facility

	  	 Maximum Leverage
Ratio
 Term B Loans

	 06/30/04
	  	4.85 to 1	  	5.35 to 1
	 09/30/04
	  	4.65 to 1	  	5.10 to 1
	 12/31/04
	  	4.60 to 1	  	5.05 to 1
	 03/31/05
	  	4.50 to 1	  	4.95 to 1
	 06/30/05
	  	4.50 to 1	  	4.95 to 1
	 09/30/05
	  	4.25 to 1	  	4.65 to 1
	 12/31/05
	  	4.15 to 1	  	4.55 to 1
	 03/31/06
	  	3.90 to 1	  	4.30 to 1
	 06/30/06
	  	3.75 to 1	  	4.15 to 1
	 09/30/06
	  	3.50 to 1	  	3.85 to 1
	 12/31/06
	  	3.35 to 1	  	3.70 to 1
	 03/31/07
	  	3.20 to 1	  	3.50 to 1
	 06/30/07
	  	3.05 to 1	  	3.35 to 1
	 09/30/07
	  	2.90 to 1	  	3.20 to 1
	 12/31/07 and each Fiscal Quarter ending thereafter
	  	2.75 to 1	  	3.00 to 1

  

 101 

 provided however, that in respect of each of the Fiscal Quarters ending on 06/30/03, 09/30/03, 12/31/03, 3/31/04,
6/30/04, 9/30/04 and 12/31/04 only and for the purposes of the calculations of EBITDA for each such Fiscal Quarter, Consolidated Net Income shall be determined without the deduction of Reorganization Costs. 
  
 For the purposes of this Section 5.1, the aggregate Reorganization Costs
shall not exceed $10,500,000 in respect of the Fiscal Quarters mentioned above and for the Fiscal Quarter ending 03/31/03 (provided, however, that such Reorganization Costs shall not exceed $2,023,000 for the Fiscal Quarter ending 03/31/03).

  
 Section 5.2. Minimum Fixed Charge Coverage
Ratio. The Group will maintain a Fixed Charge Coverage Ratio, as determined as of the last day of each Fiscal Quarter set forth below, for the four Fiscal Quarters ending on such day, of at least the minimum ratio set forth opposite such
Fiscal Quarter: 
  

					
	 Fiscal Quarter Ending

	  	 Minimum Fixed Charge
Coverage Ratio
 Term A Loans and
Revolving Credit Facility

	  	Minimum Fixed
Charge Coverage Ratio
Term B Loans

	 06/30/04
	  	1.50 to 1	  	1.35 to 1
	 09/30/04
	  	1.50 to 1	  	1.35 to 1
	 12/31/04
	  	1.50 to 1	  	1.35 to 1
	 03/31/05
	  	1.50 to 1	  	1.35 to 1
	 06/30/05
	  	1.50 to 1	  	1.35 to 1
	 09/30/05
	  	1.55 to 1	  	1.40 to 1
	 12/31/05
	  	1.55 to 1	  	1.40 to 1
	 03/31/06
	  	1.55 to 1	  	1.40 to 1
	 06/30/06
	  	1.55 to 1	  	1.40 to 1
	 09/30/06
	  	1.55 to 1	  	1.40 to 1
	 12/31/06
	  	1.60 to 1	  	1.45 to 1
	 03/31/07
	  	1.70 to 1	  	1.55 to 1
	 06/30/07
	  	1.80 to 1	  	1.60 to 1
	 09/30/07
	  	1.80 to 1	  	1.60 to 1
	 12/31/07
	  	1.90 to 1	  	1.70 to 1
	 03/31/08
	  	1.90 to 1	  	1.70 to 1
	 06/30/08 and each Fiscal Quarter ending thereafter
	  	2.00 to 1	  	1.80 to 1

  

 102 

 provided, however, in respect of each of the Fiscal Quarters ending on 06/30/03, 09/30/03, 12/31/03, 3/31/04,
6/30/04, 9/30/04 and 12/31/04 only; (a) the Minimum Fixed Charge Coverage Ratio shall be determined without the deduction of Capital Expenditures in relation to Enterprise Resource Planning in respect of each such Fiscal Quarter and (b) for the
purposes of the calculation of EBITDA for each such Fiscal Quarter, Consolidated Net Income shall be determined without the deduction of Reorganization Costs. 
  

For the purposes of this Section 5.2, (i) aggregate Reorganization Costs shall not exceed $10,500,000 in respect of the Fiscal Quarters mentioned
above and for the Fiscal Quarter ending 03/31/03 (provided, however, that such Reorganization Costs shall not exceed $2,023,000 for the Fiscal Quarter ending 03/31/03) and (ii) aggregate Capital Expenditures in relation to Enterprise Resource
Planning shall not exceed $11,000,000 in respect of such Fiscal Quarters and for the Fiscal Quarter ending 03/31/03 (provided, however, that such Capital Expenditures in relation to Enterprise Resource Planning shall not exceed $3,100,000 for
the Fiscal Quarter ending 03/31/03). 
  
 Section 5.3.
Minimum Interest Coverage Ratio. The Group will maintain an Interest Coverage Ratio, as determined as of the last day of each Fiscal Quarter set forth below, for the four Fiscal Quarters ending on such day, of at least the minimum ratio
set forth opposite such Fiscal Quarter: 
  

					
	 Fiscal Quarter Ending

	  	Minimum Interest
Coverage Ratio
Term A Loans and
Revolving Credit Facility

	  	Minimum Interest
Coverage Ratio
Term B Loans

	 06/30/04
	  	2.40 to 1	  	2.15 to 1
	 09/30/04
	  	2.45 to 1	  	2.20 to 1
	 12/31/04
	  	2.50 to 1	  	2.25 to 1
	 03/31/05
	  	2.55 to 1	  	2.30 to 1
	 06/30/05
	  	2.60 to 1	  	2.35 to 1
	 09/30/05
	  	2.65 to 1	  	2.40 to 1
	 12/31/05
	  	2.70 to 1	  	2.45 to 1
	 03/31/06
	  	2.75 to 1	  	2.50 to 1
	 06/30/06
	  	2.80 to 1	  	2.55 to 1
	 09/30/06
	  	2.90 to 1	  	2.60 to 1
	 12/31/06
	  	3.00 to 1	  	2.70 to 1
	 03/31/07 and each Fiscal Quarter ending thereafter
	  	3.25 to 1	  	2.95 to 1

  

 103 

 provided, however, that in respect of each of the Fiscal Quarters ending on 06/30/03, 09/30/03, 12/31/03, 3/31/04,
6/30/04, 9/30/04 and 12/31/04 only and for the purposes of the calculation of EBITDA for each such Fiscal Quarter, Consolidated Net Income shall be determined without the deduction of Reorganization Costs. 
  
 For the purposes of this Section 5.3, aggregate Reorganization Costs shall
not exceed $10,500,000 in respect of the Fiscal Quarters mentioned above and for the Fiscal Quarter ending 03/31/03 (provided, however, that such Reorganization Costs shall not exceed $2,023,000 for the Fiscal Quarter ending 03/31/03).

  
 Section 5.4. Capital Expenditures. The
Borrowers will not permit aggregate Capital Expenditures to be made or incurred by the Group during any Fiscal Year in excess of $21,000,000; provided, however, that to the extent that actual Capital Expenditures for any Fiscal Year shall be
less than $21,000,000 (without giving effect to the carryover permitted by this proviso), 100% of the unspent amount of any permitted Capital Expenditures in any Fiscal Year shall, in addition, be available for Capital Expenditures in the next
succeeding Fiscal Year. 
  
 ARTICLE VI 
  
 REPORTING COVENANTS 
  
 As long as any of the Obligations or the Commitments remain outstanding,
unless the Requisite Lenders otherwise consent in writing, the Applicable Memec Parent and each Borrower agrees with the Lenders and the Facility Agents that: 
  

Section 6.1. Financial Statements. The Applicable Memec Parent shall furnish to the Facility Agents (with sufficient copies for each of
the Lenders) the following: 
  
 (a) Monthly
Reports. As soon as available, and in any event within 30 days after the end of each fiscal month in each Fiscal Year, financial information regarding the Group consisting of consolidated and consolidating unaudited balance 
  

 104 

 sheets as of the close of such month and the related statements of income and cash flow for such month and that portion
of the current Fiscal Year ending as of the close of such month, setting forth in comparative form the figures for the corresponding period in the prior year and the figures contained in the Business Plan for the current Fiscal Year, in each case
certified by a Responsible Officer of the Applicable Memec Parent as fairly presenting the consolidated and consolidating financial position of the Group as at the dates indicated and the results of their operations and cash flow for the periods
indicated in accordance with GAAP (subject only to the absence of footnote disclosure and normal year-end audit adjustments), together with a management report describing in reasonable detail the operations and financial condition of the Group for
the period then ending and the portion of the Fiscal Year then elapsed, including by way of comparison to the corresponding periods of the previous Fiscal Year. 
  

(b) Quarterly Reports. As soon as available, and in any event within 45 days after the end of each Fiscal Quarter of each Fiscal Year,
financial information regarding the Group consisting of consolidated and consolidating unaudited balance sheets as of the close of such quarter and the related statements of income and cash flow for such quarter and that portion of the Fiscal Year
ending as of the close of such quarter, setting forth in comparative form the figures for the corresponding period in the prior year and the figures contained in the Business Plan for the current Fiscal Year, in each case certified by a Responsible
Officer of the Applicable Memec Parent as fairly presenting the consolidated and consolidating financial position of the Group as at the dates indicated and the results of their operations and cash flow for the periods indicated in accordance with
GAAP (subject only to the absence of footnote disclosure and normal year-end audit adjustments). 
  
 (c) Annual Reports. As soon as available, and in any event within 120 days after the end of each Fiscal Year, financial information
regarding the Group consisting of consolidated and consolidating balance sheets of the Group as of the end of such year and related statements of income and cash flows of the Group for such Fiscal Year, all prepared in conformity with GAAP and
certified, in the case of such consolidated financial statements, without qualification as to the scope of the audit or as to the Group being a going concern by the Authorized Accountants (including a report of such Authorized Accountants (together
with evidence in form and substance satisfactory to the Facility Agents that the Authorized Accountants have been engaged as the accountants and auditors of the Group) stating that (i) such financial statements fairly present the consolidated
financial position of the Group as at the dates indicated and the results of their operations and cash flow for the periods indicated in conformity with GAAP applied on a basis consistent with prior years (except for changes with which the
Authorized Accountants shall concur and which shall have been disclosed in the notes to the financial statements), and (ii) the examination by the Authorized Accountants in connection with such consolidated financial statements has been made
in accordance with generally accepted auditing standards). 
  
 (d) Compliance Certificate. Together with each delivery of any Financial Statement pursuant to clauses (b) and (c) of this Section 6.1, a certificate of a Responsible Officer of the Applicable Memec Parent (each, a
“Compliance 
  

 105 

 Certificate”) (i) showing in reasonable detail the calculations used in determining the Leverage Ratio
(for purposes of determining the Applicable Margin and the Facility Fee Rate) and demonstrating compliance with each of the financial covenants contained in Article V which is tested on a quarterly or annual basis (as the case may be) and (ii)
stating that no Default or Event of Default has occurred and is continuing or, if a Default or an Event of Default has occurred and is continuing, stating the nature thereof and the action which the Borrower proposes to take with respect thereto and
(in the case of the Financial Statements delivered pursuant to Section 6.1(c), and to the extent reasonably available from the Authorized Accountants), containing or accompanied by a certificate from the Authorized Accountants (together with
evidence in form and substance satisfactory to the Facility Agents that the Authorized Accountants have been engaged as the accountants and auditors of the Group) confirming (A) (if applicable) the amount of Excess Cash Flow, (B) that the
calculations contained in such Compliance Certificate are correct and (C) that in the course of the regular audit of the business of the Group such Authorized Accountants have obtained no knowledge that a Default or Event of Default in respect of
the financial covenants in Article V has occurred and is continuing, or, if in the opinion of such Authorized Accountants, a Default or Event of Default has occurred and is continuing in respect of such financial covenants, a statement as to the
nature thereof. 
  
 (e) Business Plan. Not later
than the end of each Fiscal Year, and containing substantially the types of financial information contained in the Projections, (i) the annual Business Plan of the Group for the next succeeding Fiscal Year and approved by the Board of Directors of
the Applicable Memec Parent and (ii) forecasts prepared by management of the Group for each fiscal quarter in the next succeeding Fiscal Year, including, in the case of this clause (ii), (A) a projected year-end consolidated balance sheet and income
statement and statement of cash flows and (B) a statement of all of the material assumptions on which such forecasts are based. 
  
 (f) Management Letters, Etc. Within five Business Days after receipt thereof by any Group Member, copies of each management letter,
exception report or similar letter or report received by such Group Member from the Authorized Accountants; 
  
 (g) Intercompany Loan Balances. Promptly upon the request of either Facility Agent, a summary of the outstanding balance of all
intercompany Indebtedness as of the last day of the fiscal month covered by such Financial Statement, certified by a Responsible Officer of the Applicable Memec Parent. 
  
 (h) Borrowing Base Certificate. (i) Within 30 days after the end of each fiscal month in each Fiscal Year, a
Borrowing Base Certificate (as of the end of the immediately preceding fiscal month), certified by the principal executive officer, chief financial officer, treasurer or controller (or the equivalent) of the Applicable Memec Parent as true and
correct, and (ii) as soon as reasonably practicable but in any event within five Business Days after request by the Collateral Agent if the Collateral Agent reasonably believes that the then existing Borrowing Base Certificate is materially
inaccurate, a completed Borrowing Base Certificate showing the Borrowing Base as of the date so requested, in each case with such supporting documentation and additional information with respect to the Borrowing Base as the Collateral Agent may
reasonably request. 
  

 106 

 (i) Receivables Availability Certificate. (i) Within 30 days after (A) the end of each
sixth fiscal month in each Fiscal Year to occur from and after August 31, 2004 or (B)(i) at any time while the portion of the Borrowing Base attributable to the Accounts comprises greater than 50% of the total Borrowing Base and (ii) Combined
Facility Utilization is greater than 85%, the end of each fiscal month in each Fiscal Year, a Receivables Availability Certificate (in each case, as of the end of the immediately preceding fiscal month), certified by a Responsible Officer of the
Applicable Memec Parent as true and correct, and (ii) as soon as reasonably practicable but in any event within five Business Days after request by the Collateral Agent if the Collateral Agent reasonably believes that the then existing Receivables
Availability Certificate is materially inaccurate, a completed Receivables Availability Certificate showing the receivables availability calculation as of the date so requested, in each case with such supporting documentation and additional
information with respect to the receivables availability calculation as the Collateral Agent may reasonably request. 
  
 (j) Use of Websites. 
  
 (i) The Applicable Memec Parent may satisfy its obligation under this Agreement to deliver any information in relation to those Lenders
(the “Website Lenders”) who accept this method of communication by posting this information onto an electronic website designated by the Applicable Memec Parent and the Facility Agents (the “Designated
Website”) if: 
  
 (A) the Facility
Agents expressly agree (after consultation with each of the Lenders) that it will accept communication of the information by this method; 
  
 (B) both the Applicable Memec Parent and the Facility Agents are aware of the address of and any relevant password specifications for the
Designated Website; and 
  
 (C) the information
is in a format previously agreed between the Applicable Memec Parent and the Facility Agents. 
  
 If any Lender (a “Paper Form Lender”) does not agree to the delivery of information electronically then the Facility Agents shall notify the Applicable Memec Parent accordingly and the
Applicable Memec Parent shall supply the information to the Applicable Facility Agent (in sufficient copies for each Paper Form Lender) in paper form. In any event the Applicable Memec Parent shall supply the Facility Agents with at least one copy
in paper form of any information required to be provided by it. 
  
 (ii) The Applicable Facility Agent shall supply each Website Lender with the address of and any relevant password specifications for the Designed Website following designation of that website by the Applicable Memec
Parent and the Facility Agents. 
  

 107 

 (iii) The Applicable Memec Parent shall promptly upon becoming aware of its occurrence
notify the Facility Agents if: 
  
 (A) the
Designated Website cannot be accessed due to technical failure; 
  
 (B) the password specifications for the Designated Website change; 
  
 (C) any new information which is required to be provided under this Agreement is posted onto the Designated Website; 
  
 (D) any existing information which has been provided under
this Agreement and posted onto the Designated Website is amended; or 
  
 (E) the Applicable Memec Parent becomes aware that the Designated Website or any information posted on the Designated Website is or has been infected by any electronic virus or similar software. 
  
 If the Applicable Memec Parent notifies the Facility Agents under paragraph
(iii)(A) or paragraph (iii)(E) above, all information to be provided by the Applicable Memec Parent under this Agreement after the date of that notice shall be supplied in paper form unless and until the Facility Agents and each Website Lender is
satisfied that the circumstances giving rise to the notification are no longer continuing. 
  
 (iv) Any Website Lender may request, through the Applicable Facility Agent, one paper copy of any information required to be provided
under this Agreement which his posted onto the Designated Website. The Applicable Memec Parent shall comply with any such request within ten Business Days. 
  
 Section 6.2. Default Notices. As soon as practicable, and in any event within five Business Days after a Responsible Officer of any Loan
Party has actual knowledge of the existence of any Default, Event of Default or other event which has had a Material Adverse Effect, the Applicable Memec Parent shall give the Facility Agents notice specifying the nature of such Default or Event of
Default or other event, including the anticipated effect thereof, which notice, if given by telephone, shall be promptly confirmed in writing on the next Business Day. 
  
 Section 6.3. Litigation. Promptly after the commencement thereof, the Applicable Memec Parent shall give the
Facility Agents written notice of the commencement of all actions, suits and proceedings before any domestic or foreign Governmental Authority or arbitrator, affecting any Group Member, which in the reasonable judgment of the Applicable Memec Parent
expose the Group to liability in an amount aggregating $1,000,000 or more. 
  

 108 

 Section 6.4. Asset Sales. Prior to any Asset Sale anticipated to generate in excess of
$3,000,000 (or its equivalent) in Net Cash Proceeds, the Applicable Memec Parent shall send the Facility Agents a notice (a) describing such Asset Sale or the nature and material terms and conditions of such transaction and (b) stating the estimated
Net Cash Proceeds anticipated to be received by the applicable Group Member. 
  
 Section 6.5. Notices under Related Documents. Promptly after the sending or filing thereof, the Applicable Memec Parent shall send the Facility Agents copies of all material notices, certificates or
reports delivered by any Group Member pursuant to any Related Document. 
  
 Section 6.6. SEC Filings; Press Releases. Promptly after the sending or filing thereof, the Applicable Memec Parent shall send the Facility Agents copies of (a) all reports which any Group Member sends
to its security holders generally (it being understood that this requirement shall not include periodic required reports sent to the agents and/or the lenders pursuant to the Asset Backed Loan Agreement or any other Receivables Transaction
Documents), (b) all reports and registration statements which any Group Member files with the Securities and Exchange Commission or any national or foreign securities exchange, (c) all press releases and (d) all other statements concerning material
changes or developments in the business of any Group Member made available by any Group Member to the public. 
  
 Section 6.7. Labor Relations. Promptly after becoming aware of the same, the Applicable Memec Parent shall give the Facility Agents written
notice of (a) any labor dispute to which any Group Member is or may become a party, including any strikes, lockouts or other disputes relating to any of such Person’s plants and other facilities, and (b) any Worker Adjustment and Retraining
Notification Act or related liability incurred with respect to the closing of any plant or other facility of any of such Person, in each case which could reasonably be expected to have a Material Adverse Effect. 
  
 Section 6.8. Insurance. As soon as is practicable and in any
event within 90 days after the end of each Fiscal Year, the Applicable Memec Parent will furnish the Facility Agents (in sufficient copies for each of the Lenders) with (a) a report outlining all material insurance coverage maintained as of the date
of such report by the Group and the duration of such coverage and (b) an insurance broker’s statement that all premiums then due and payable with respect to such coverage have been paid. 
  
 Section 6.9. ERISA Matters. The Applicable Memec Parent shall
furnish the Facility Agents (with sufficient copies for each of the Lenders): 
  
 (a) promptly and in any event within thirty days after any Group Member or any ERISA Affiliate knows or has reason to know that any ERISA Event which could reasonably be expected to have a Material Adverse Effect has
occurred; 
  

 109 

 (b) promptly and in any event within ten days after any Group Member or any ERISA Affiliate knows or has
reason to know that a request for a minimum funding waiver under Section 412 of the Code has been filed with respect to any Title IV Plan or Multiemployer Plan, a written statement of a Responsible Officer of US Holdco describing such ERISA Event or
waiver request and the action, if any, which the Group Members and ERISA Affiliates propose to take with respect thereto and a copy of any notice filed with the PBGC or the IRS pertaining thereto; 
  
 (c) simultaneously with the date that any Group Member or any ERISA
Affiliate files a notice of intent to terminate any Title IV Plan, if such termination would require material additional contributions in order to be considered a standard termination within the meaning of Section 4041(b) of ERISA, a copy of each
notice. 
  
 Section 6.10. Environmental Matters.
The Applicable Memec Parent shall provide the Facility Agents promptly and in any event within ten days after any Group Member learns of the same, written notice of any of the following: 
  
 (a) any event which could reasonably be expected to subject the Group to Environmental Liabilities and Costs of $15,000,000
or more; 
  
 (b) the receipt by any Group Member of written
notification that any real or personal property of such Group Member is or is reasonably likely to be subject to any Environmental Lien with an expected Environmental Liabilities and Costs of $15,000,000 or more; 
  
 (c) the receipt by any Group Member of any written notice of violation of or
potential liability under, or knowledge by such Group Member that there exists a condition which could reasonably be expected to result in a violation of or liability under any Environmental Law, except for violations and liabilities the consequence
of which in the aggregate would have no reasonable likelihood of subjecting the Group collectively to Environmental Liabilities and Costs of $15,000,000 or more; and 
  
 (d) the commencement of any judicial or administrative proceeding or investigation alleging a violation of or liability
under any Environmental Law, which in the aggregate, if adversely determined, would have a reasonable likelihood of subjecting the Group collectively to Environmental Liabilities and Costs of $15,000,000 or more. 
  
 Section 6.11. Borrowing Base Determination. 
  
 (a) The Applicable Memec Parent shall conduct, or shall cause to be
conducted, at its expense, and upon request of the Senior A Facility Agent, and present to the Senior A Facility Agent for approval, such appraisals, investigations 
  

 110 

 and reviews as the Senior A Facility Agent shall request for the purpose of determining the Borrowing Base, all upon
notice and at such times during normal business hours and as often as may be reasonably requested. Each Borrower shall furnish to the Senior A Facility Agent any information which the Senior A Facility Agent may reasonably request regarding the
determination and calculation of the Borrowing Base including correct and complete copies of any invoices, underlying agreements, instruments or other documents and the identity of all Account Debtors in respect of Accounts referred to therein.

  
 (b) The Applicable Memec Parent shall promptly notify the
Senior A Facility Agent in writing in the event that at any time the Applicable Memec Parent receives or otherwise gains or should have received or otherwise gained knowledge that (i) the Borrowing Base is less than 90% of the Borrowing Base
reflected in the most recent Borrowing Base Certificate delivered pursuant to Section 6.1(h), (ii) the sum of (A) the outstanding Revolving Credit Outstandings plus (B) the Term Loan A Outstandings exceed the Borrowing Base as a result
of a decrease therein, and the amount of such excess, or (iii) the aggregate amount of (x) the gross Inventory plus (y) the gross Accounts of the Material Subsidiaries is less than 150% of all drawings under the Facilities. 
  
 (c) The Collateral Agent, or its representatives or professionals (including
consultants, accountants and appraisers) retained or employed by the Facility Agents or the Collateral Agent, may at any time at the Applicable Memec Parent’s sole cost and expense (including, for the avoidance of doubt, the fees and expenses
associated with services performed by the Facility Agents or the Collateral Agent for purposes of monitoring the Collateral and the Borrowing Base as set forth in the Fee Letters), (i) conduct evaluations and appraisals of the Borrowers’
practices in the computation of the Borrowing Base and inspect, evaluate and appraise the Loan Parties’ operating facilities and (ii) make test verifications of the Accounts and physical verifications of the Inventory and Accounts in any manner
and through any medium that the Facility Agents or the Collateral Agent reasonably considers advisable, and each Borrower shall furnish all such assistance and information as the Facility Agents may reasonably require in connection therewith.

  
 Section 6.12. Other Information. Each Borrower
will provide the Facility Agents with such other information respecting the business, properties, condition, financial or otherwise, or operations of any Group Member as the Facility Agents may from time to time reasonably request. 
  
 ARTICLE VII 
  
 AFFIRMATIVE COVENANTS 
  
 As long as the Obligations or the Commitments remain outstanding, unless the
Requisite Lenders otherwise consent in writing, the Applicable Memec Parent and each Borrower agrees (and each other Loan Party agrees (with respect to itself only) by virtue of its execution and delivery of a Collateral Document) with the Lenders
and the Facility Agents that: 
  
 Section 7.1. Preservation
of Corporate Existence, Etc. It shall, and shall cause each of its Material Subsidiaries to, preserve and maintain its corporate existence, rights (charter and statutory) and franchises, except as permitted by Section 8.3 and Section 8.4.

  

 111 

 Section 7.2. Compliance with Laws, Etc. It shall, and shall cause each of its Material
Subsidiaries to, comply with all applicable Requirements of Law and Permits, except where the failure so to comply would not in the aggregate have a Material Adverse Effect. 
  
 Section 7.3. Conduct of Business. It shall, and shall cause each of its Material Subsidiaries to, (a) conduct
its business in the ordinary course and (b) use its reasonable efforts, in the ordinary course and consistent with past practice, to preserve its business and the goodwill and business of the customers, advertisers, suppliers and others having
business relations with the Group, except in each case where the failure to comply with the covenants in each of clauses (a) and (b) above would not in the aggregate have a Material Adverse Effect. 
  
 Section 7.4. Payment of Taxes, Etc. It shall, and shall cause
each of its Material Subsidiaries to, pay and discharge before the same shall become delinquent, all lawful governmental claims, taxes, assessments, charges and levies, except where contested in good faith, by proper proceedings and adequate
reserves therefor have been established on the books of the Group in conformity with GAAP. 
  
 Section 7.5. Maintenance of Insurance. It shall, and shall cause each of its Material Subsidiaries to, (i) maintain, and cause to be maintained for each of its Subsidiaries, insurance with responsible
and reputable insurance companies or associations in such amounts and covering such risks as is usually carried by companies engaged in similar businesses and owning similar properties in the same general areas in which the Applicable Memec Parent
or such Loan Party or other Group Member operates, and, in any event, all insurance required by any Collateral Documents and (ii) cause all such insurance to name the Collateral Agent on behalf of the Secured Parties as additional insured or loss
payee, as appropriate, and to provide that no cancellation, material addition in amount or material change in coverage shall be effective until after thirty days written notice thereof to the Collateral Agent. 
  
 Section 7.6. Access. It shall, and shall cause each of its
Material Subsidiaries to, from time to time, permit the Facility Agents, the Collateral Agent and the Lenders, or any agents or representatives thereof, during normal business hours and within two Business Days after written notification of the same
(except that during the continuance of an Event of Default, no such notice shall be required) to (a) examine and make copies of and abstracts from its records and books of account, (b) visit its properties, (c) discuss its affairs, finances and
accounts with any of its respective officers or directors, and (d) communicate directly with the Authorized Accountants. The Applicable Memec Parent shall authorize the Authorized Accountants to disclose to the Facility Agents, the Collateral Agent
or any Lender any and all financial statements and other information of any kind, as either Facility Agent, the Collateral Agent or any Lender reasonably requests from any Group 
  

 112 

 Member and which the Authorized Accountants may have with respect to the business, financial condition, results of
operations or other affairs of the Group. 
  
 Section 7.7.
Keeping of Books. It shall, and shall cause each of its Material Subsidiaries to, keep proper books of record and account, in which full and correct entries shall be made in conformity with GAAP of all financial transactions and the
assets and business of the Group. 
  
 Section 7.8.
Maintenance of Properties, Etc. It shall, and shall cause each of its Material Subsidiaries to, maintain and preserve, (a) all of its properties which are necessary in the conduct of its business in good working order and condition, (b)
all rights, permits, licenses, approvals and privileges (including all Permits) which are used or useful or necessary in the conduct of its business, and (c) all registered patents, trademarks, trade names, copyrights and service marks with respect
to its business; except where the failure to so maintain and preserve would not in the aggregate have a Material Adverse Effect. 
  
 Section 7.9. Application of Proceeds. The Borrowers and the other Loan Parties shall use the entire amount of the proceeds of the Loans as
provided in Section 4.13. 
  
 Section 7.10.
Environmental. It shall, and shall cause each of its Material Subsidiaries to, comply in all material respects with Environmental Laws and, without limiting the foregoing, it shall, at its sole cost and expense, upon receipt of any
notification or otherwise obtaining knowledge of any Release or other event that has any reasonable likelihood of the Group incurring Environmental Liabilities and Costs in excess of $15,000,000, take such Remedial Action, investigational or other
action as required by Environmental Laws or as any Governmental Authority requires or as is appropriate and consistent with good business practice to address the Release or event. 
  
 Section 7.11. Additional Collateral and Guaranties. 
  
 (a) On or, as soon as possible, after the Permitted IPO Reorganization but
in any event not later than 15 days after the completion of the Permitted IPO Reorganization, to the extent not delivered to the Collateral Agent on or before the Amendment Closing Date and to the extent it can practicably and legally do so (by
reference to the laws of the jurisdiction of its incorporation and/or the laws of the jurisdiction where its relevant assets are located or which are binding upon it or its assets), the Applicable Memec Parent shall cause each of the Collateral
Documents listed on Part III of Schedule 1.1(a) (the “New Permitted IPO Reorganization Collateral Documents”), to be duly executed and delivered by itself (where applicable) and by each Loan Party that is a party thereto, as
applicable, together with: 
  
 (i) in respect of Loan Parties
which are Domestic Subsidiaries, evidence satisfactory to the Collateral Agent that the Collateral Agent (for the benefit of the Secured Parties) has a valid and perfected first priority security interest (subject only to Liens permitted under
Section 8.2) in the Collateral being granted pursuant to the New 
  

 113 

 Permitted IPO Reorganization Collateral Documents which such Loan Parties are a party
(or in the case of filings or other actions necessary to perfect Liens granted on the Permitted IPO Reorganization, will have a valid and perfected first priority security interest (subject only to Liens permitted under Section 8.2) upon the
applicable filings or other actions taken after the Permitted IPO Reorganization), including (x) such documents duly executed by each such Loan Party as the Collateral Agent may request and as are customary with respect to the perfection of its
security interests in the Collateral (including financing statements under the UCC, patent, trademark and copyright security agreements suitable for filing with the Patent and Trademark Office or the Copyright Office, as the case may be, and other
applicable documents under the laws of any jurisdiction with respect to the perfection of Liens created by any New Permitted IPO Reorganization Collateral Documents) and (y) copies of UCC search reports as of a recent date listing all effective
financing statements that name any Loan Party as debtor, together with copies of such financing statements, none of which shall cover the Collateral except for those which shall be terminated on the Permitted IPO Reorganization); 
  
 (ii) in respect of Loan Parties organized other than in the United States
of America, evidence customary in the applicable jurisdiction of organization that the Collateral Agent (for the benefit of the Secured Parties) has a valid and perfected security interest in the Collateral being granted pursuant to the New
Permitted IPO Reorganization Collateral Documents which such Loan Parties are a party, including such documents duly executed by each Loan Party as the Collateral Agent may request with respect to the perfection of its security interests in the
Collateral (including any applicable documents under the laws of any jurisdiction with respect to the perfection of Liens created by such New Permitted IPO Reorganization Collateral Documents); 
  
 (iii) where appropriate, share certificates representing all issued share
capital of the members of the Group being pledged pursuant to any New Permitted IPO Reorganization Collateral Documents and, where appropriate, stock powers for such share certificates or stock transfer forms executed in blank or otherwise completed
as appropriate; 
  
 (iv) all instruments representing any
Pledged Notes being pledged pursuant to the relevant New Permitted IPO Reorganization Collateral Documents duly endorsed in favor of the Collateral Agent or in blank; 
  
 (v) where required pursuant to the applicable New Permitted IPO Reorganization Collateral Documents, Blocked Account
Letters from all Blocked Account Banks; 
  

 114 

 (vi) where required pursuant to the applicable New Permitted IPO Reorganization Collateral Documents,
Control Account Letters from (A) all securities intermediaries with respect to all securities accounts and securities entitlements of any Loan Party, and (B) all futures commission agents and clearing houses with respect to all commodities contracts
and commodities accounts held by any Loan Party; 
  
 (vii) a
copy of each consent required to be obtained by the Loan Parties in connection with the granting of security interests in the Collateral; and 
  
 (viii) a copy of each notice required to be delivered pursuant to the New Permitted IPO Reorganization Collateral Documents and evidence that they have
been delivered to the addressees thereof. 
  
 (ix) a favorable
opinion of (A) Clifford Chance LLP, U.S. counsel to the Loan Parties, in the agreed form, (B) Weil, Gotshal & Manges, English counsel to the Lenders and (C) except as otherwise agreed between the Borrowers and the Facility Agents and the
Collateral Agent, counsel to the Lenders in each Eligible Jurisdiction, in each case addressed to the Facility Agents and the Lenders and addressing such other matters as any Lender through the Facility Agents may reasonably request in relation to
the New Permitted IPO Reorganization Collateral Documents; 
  
 (b) To the extent not delivered to the Collateral Agent on or before the Amendment Closing Date and to the extent it can practicably and legally do so (by reference to the laws of the jurisdiction of its incorporation and/or the laws of the
jurisdiction where its relevant assets are located or which are binding upon it or its assets), Memec US PubCo and each Loan Party shall, and shall cause each Material Subsidiary and each Specified Subsidiary, whether currently existing or created
or acquired (to the extent permitted hereunder) after the date hereof by any Group Member, promptly: 
  
 (i) execute and deliver to the Collateral Agent such new Collateral Documents or amendments to the existing Collateral Documents as the
Collateral Agent deems necessary or advisable in order to grant to the Collateral Agent, for the benefit of the Secured Parties, a perfected first priority security interest in the Collateral (subject only to Liens permitted under Section 8.2 and
including, for the avoidance of doubt, intellectual property), Stock and Stock Equivalents and other debt Securities (including, for the avoidance of doubt, intercompany loans) of any Material Subsidiary or Specified Subsidiary (including any
Subsidiary that becomes a Material Subsidiary after the Amendment Closing Date pursuant to the definition thereof) which is owned by such Loan Party and requested to be granted or pledged by the Collateral Agent; 
  

 115 

 (ii) deliver to the Collateral Agent the certificates (if any) representing such Stock
and Stock Equivalents and other debt Securities, together with: 
  
 (A) in the case of such certificated Stock and Stock Equivalents, undated stock powers endorsed in blank; and 
  
 (B) in the case of such certificated debt Securities, endorsed in blank, in each case executed and delivered by a Responsible Officer of
the applicable Loan Party; 
  
 (iii) in the case
of Memec US PubCo, to execute and deliver an Accession Agreement; 
  
 (iv) in the case of Memec US PubCo and any such Material Subsidiary or Specified Subsidiary, cause Memec US PubCo and such new Material Subsidiary or Specified Subsidiary: 
  
 (A) to become a party to the Guaranty and the applicable
Collateral Documents; and 
  
 (B) to take such
actions reasonably necessary or advisable to grant to the Collateral Agent for the benefit of the Secured Parties a perfected security interest in the Collateral described in the Collateral Documents with respect to such new Material Subsidiary or
Specified Subsidiary, including the making of such filings in such jurisdictions as may be required by the Collateral Documents or by law, including the filing of UCC financing statements in such jurisdictions as may be required by the Collateral
Documents or by law or as may be reasonably requested by the Collateral Agent; and 
  
 (v) if requested by the Collateral Agent, deliver to the Collateral Agent legal opinions relating to the matters described above, which
opinions shall be in form and substance, and from counsel, reasonably satisfactory to the Collateral Agent, and such corporate documentation (including corporate resolutions, good standing certificates and incumbency certificates) reasonably
requested by the Collateral Agent. 
  
 (c) The Applicable Memec
Parent will procure, unless and to the extent that such execution and delivery and granting of security (i) would be unavoidably unlawful, or (ii) is prohibited by statute, or (iii) would cause the Group to incur costs which are disproportionate to
the value of the security which would be obtained thereby, or (iv) would be beyond the corporate power of the company or corporation concerned (and then only if such corporate power cannot be modified or extended to allow such execution, delivery
and granting of security) or would be reasonably likely to result in the directors of the company or corporation concerned incurring actual personal liabilities, that at all times the pro forma consolidated EBITDA of the Material Subsidiaries is at
least 80.0% or more of the consolidated EBITDA of the Group, in each case tested on a consolidated basis for the previous 12 
  

 116 

 months as at the end of each Fiscal Year by reference to the annual audited financial statements for such Fiscal Year
delivered in accordance with Section 6.1(c). 
  
 Section 7.12.
Interest Rate Contracts. The Borrowers shall, within 90 days after the Amendment Closing Date, enter into an Interest Rate Contract or Contracts with hedge counterparties that are Lenders, on terms and with counterparties satisfactory to
the Facility Agents (it being understood that each Lender shall be a satisfactory counterparty), to provide fixed rate interest rate protection in respect of at least 66-2/3% of the aggregate indebtedness incurred under the Term A Loan Facility and
the Term B Loan Facility for a period of three years. 
  
 Section 7.13. Landlord Lien and Bailee Waivers. Each Loan Party which is the owner of Inventory located, stored, used or held in the United States of America at the premises of a third party shall, within thirty days after the
Amendment Closing Date (or such later date as shall be acceptable to the Senior A Facility Agent in its sole discretion) deliver such Landlord Waivers and Bailee Waivers as the Senior A Facility Agent shall request in its sole discretion exercised
reasonably. 
  
 Section 7.14. Real Property.

  
 (a) It shall, and shall cause each of its Material
Subsidiaries to, (i) comply in all material respects with all of their respective obligations under all of their respective Leases now or hereafter held respectively by them with respect to Real Property, except where the failure to so comply would
not have a Material Adverse Effect; (ii) not modify, amend, cancel, extend or otherwise change any of the terms, covenants or conditions of any such Leases, except where such modification, amendment, cancellation, extension or change would not have
a Material Adverse Effect; (iii) not assign or sublet any other Lease if such assignment or subletting would have a Material Adverse Effect; and (iv) provide the Facility Agents with a copy of each notice of default under any material Lease received
by any Group Member immediately upon receipt thereof and deliver to the Facility Agents a copy of each notice of default sent by any Group Member under any Lease simultaneously with its delivery of such notice under such Lease. 
  
 (b) At least fifteen Business Days prior to (i) entering into any Lease
(other than a renewal of an existing Lease) in which the annual rental payments are anticipated to equal or exceed $500,000 or (ii) acquiring of any owned Real Property for a consideration exceeding $500,000, such Loan Party shall provide the
Facility Agents written notice thereof. Upon written request of the Facility Agents, and to the extent it can practicably and legally do so (by reference to the laws of the jurisdiction of its incorporation and/or the laws of the jurisdiction where
its relevant assets are located or which are binding upon it or its assets), such Loan Party shall execute and deliver to the Collateral Agent, for the benefit of the Secured Parties, immediately upon the acquisition of any such Lease or owned Real
Property, a mortgage, deed of trust, assignment or other appropriate instrument evidencing a Lien upon any such Lease or Real Property, together with such other agreements, documents and instruments which the Collateral Agent deems reasonably
necessary or desirable, the same to be in form and substance satisfactory to the Collateral Agent and to be subject only to (i) Liens permitted under Section 8.2 and (ii) such other Liens as the Collateral Agent may reasonably approve. 

 

 117 

 Section 7.15. Account Debtors. The Loan Parties shall instruct each Account Debtor or
other Person obligated to make a payment to any Loan Party to make payment, or to continue to make payment, as the case may be, to a Blocked Account and will deposit in a Blocked Account all Proceeds received by such Loan Party from any other Person
immediately upon receipt. 
  
 Section 7.16. Related
Documents. Each of the Acquisition Entities will comply with its material obligations under the Related Documents to which it is a party. Each of the Acquisition Entities will ensure that appropriate action is taken to ensure receipt by the
Group Member entitled thereto of any monies payable under the Related Documents, and will use commercially reasonable efforts to protect, maintain and enforce its rights under the Related Documents. 
  
 Section 7.17. [Intentionally Omitted] 
  
 Section 7.18. Syndication of the Facilities. 
  
 (a) It is understood and agreed that Memec Group Holdings and the Borrowers
have engaged the Arrangers to syndicate all or a portion of JPMorgan’s and Barclays’ commitments to provide the Facilities to one or more financial institutions, reasonably acceptable to the Facility Agents and in consultation with the
Applicable Memec Parent, that will become parties hereto pursuant to a syndication to be managed by the Arrangers. The Applicable Memec Parent and each of the Borrowers agree actively to assist the Arrangers in completing a timely and orderly
syndication satisfactory to it, the Facility Agents and the Lenders. To assist the Arrangers in their syndication efforts, the Applicable Memec Parent and each Borrower agrees, upon the reasonable request of the Arrangers, to: 
  
 (i) make senior management and representatives available to
attend meetings at reasonable times, upon reasonable notice, arranged by the Arrangers with Persons who have been invited by the Arrangers to participate in the Facilities; 
  
 (ii) participate at reasonable times and upon reasonable notice in presentations to prospective participants
in the Facilities concerning the Borrowers and the Group and its and their subsidiaries and its and their activities; and 
  
 (iii) promptly provide all financial and other information (including the Projections) with respect to the Group and the other
transactions contemplated hereby, in each case as reasonably requested by the Arrangers in connection with such syndication efforts. 
  
 (b) The Borrowers will supplement the information and the Projections from time to time until the completion of the syndication so that the information
and the Projections remain correct without regard to when such 
  

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 information and Projections were made available, it being understood that the Arrangers may use and rely on the
information and Projections without responsibility for independent verification thereof. 
  
 Section 7.19. Cash Management. The Loan Parties shall maintain through the term of the Facilities, with one or more Lenders, a cash management system, to the extent that to do so would not reasonably be
expected to cause a material breach of any applicable Requirements of Law on the part of the relevant Group Member or its directors and except to the extent that the directors of a Group Member determine that such Group Member would have inadequate
resources to meet the forecast cashflow requirements of such Group Member (which shall be determined by the board of directors of such Group Member, acting reasonably and in good faith, having regard to their responsibilities as directors under
applicable Requirements of Law) and except to the extent that such Group Member would incur a material cost which it would not otherwise ultimately have incurred (after giving effect to any cost savings realized as a result of such cash management):

  
 (i) to utilize their cash balances so as to
(a) reduce amounts outstanding under the Revolving Credit Facility and any Ancillary Facilities or to minimize utilization of the Revolving Credit Facility and any Ancillary Facilities, (b) service the interest and principal payable on the
Facilities and (c) pay any other Obligations due under this Agreement; 
  
 (ii) to the extent the applicable Group Member has not created security over such cash, to lend any cash exceeding the lesser of (a) $2,000,000 per applicable Group Member and (b) $10,000,000 in the aggregate for all
applicable Group Members, to another Group Member which has created such security; and 
  
 (iii) if incorporated in a jurisdiction where a Lien over cash is being given pursuant to any Collateral Document, to ensure that, save as
otherwise permitted by this Agreement or any of the Collateral Documents, all of its cash and Cash Equivalents exceeding the lesser of (a) $2,000,000 per Group Member and (b) $10,000,000 in the aggregate for all Group Members (including the cash and
Cash Equivalents of such Group Members’ Subsidiaries) is kept in an account which is subject to security in favor of the Collateral Agent pursuant to the Collateral Documents. 
  
 Section 7.20. Initial Public Offering Retained Proceeds. The Borrowers will procure that not less than
$25,000,000 of proceeds from the Initial Public Offering shall be retained on the appropriate balance sheet of members of the Group to be used for general corporate purposes. 
  
 Section 7.21. Disaster Recovery. The Group will implement, pursuant to the implementation schedule contained
therein, disaster recovery systems and backup computer and other information management systems pursuant to the recommendations contained in the Disaster Recovery Report to protect the Group’s business against material interruption or loss or
destruction of its primary computer and information management systems. 
  

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 Section 7.22. Unlawful Financial Assistance Each of the Loan Parties will comply in all
respects with any prohibitions against financial assistance under the laws of any applicable jurisdiction. 
  
 ARTICLE VIII 
  
 NEGATIVE COVENANTS 
  
 As long as any of the Obligations or the Commitments remain outstanding, without the written consent of the Requisite Lenders, the Applicable Memec Parent and each Borrower agrees (and each other Loan Party agrees (with respect to itself
only) by virtue of its execution and delivery of a Collateral Document) with the Lenders and the Facility Agents that: 
  
 Section 8.1. Indebtedness. It will not, and will not permit any other Group Member to, directly or indirectly create, incur, assume or
otherwise become or remain directly or indirectly liable with respect to any Indebtedness except: 
  
 (a) the Secured Obligations; 
  
 (b) [Intentionally Omitted]; 
  
 (c) Guaranty Obligations incurred by any Group Member (i) in respect of Indebtedness of another Group Member otherwise permitted by this Section 8.1;

  
 (d) Capital Lease Obligations and purchase money Indebtedness
incurred by any Group Member to finance the acquisition of fixed assets in an aggregate outstanding principal amount not to exceed $20,000,000 at any time; provided, however, that the Capital Expenditure related thereto is otherwise permitted
by Section 5.4; 
  
 (e) Renewals, extensions, refinancings and
refundings of Indebtedness permitted by clause (d) of this Section 8.1; provided, however, that any such renewal extension, refinancing or refunding is in an aggregate principal amount not greater than the principal amount of, and is on terms
no less favorable to the applicable Group Member, including as to weighted average maturity, than the Indebtedness being renewed, extended, refinanced or refunded; 
  
 (f) Indebtedness arising from Intercompany Loans (i) from a Loan Party to any other Loan Party or (ii) from any Loan Party
to any Group Member that is not a Loan Party; provided, however, that the Investment in such Intercompany Loan to such Group Member that is not a Loan Party is permitted by Section 8.3; 
  
 (g) Indebtedness arising under any performance or surety bond entered into
in the ordinary course of business; 
  

 120 

 (h) Obligations under Interest Rate Contracts permitted or required hereunder; 
  
 (i) unsecured Indebtedness not otherwise permitted under this Section 8.1 in
an aggregate outstanding principal amount not to exceed $25,000,000 at any time; provided however, that (A) in the case of Memec France, such unsecured Indebtedness shall not exceed an aggregate principal amount of $10,000,000 at any time
outstanding and (B) in the case of Memec Germany, such unsecured Indebtedness shall not exceed an aggregate principal amount of $10,000,000 at any time outstanding; 
  
 (j) unsecured Indebtedness of the Group in the form of (a) the Shareholder Discount Bonds, (b) the Consortium Loans, (c)
the Mezzanine Discount Bonds and (d) any Future Equity/Loan Stock, and in each case that is subordinated to the payment in full of the Obligations on terms satisfactory to the Facility Agents (all such Indebtedness which is permitted to be incurred
pursuant to this clause (j) being “Shareholder Subordinated Debt”); 
  
 (k) Indebtedness arising from loans from any Group Member that is not a Loan Party to any other Group Member that is not a Loan Party; 
  
 (l) Indebtedness arising in the ordinary course of business of any Group Member in relation to its cash management
arrangements, including in respect of any Daylight Facility Agreements, entered into in accordance with Section 7.19; 
  
 (m) Indebtedness that is subject to a Letter of Credit provided pursuant to the Revolving Credit Facility or that is incurred pursuant to an Ancillary
Facility; 
  
 (n) Indebtedness arising pursuant to the Japanese
Receivables Facilities; 
  
 (o) Indebtedness of Triangle Funding
arising under the Asset-Backed Loan Agreement; and 
  
 (p)
intercompany Indebtedness pursuant to the Tax Structuring Paper and the PWC Reorganization Paper. 
  
 Section 8.2. Liens, Etc. The Loan Parties will not, and will not permit any other Group Member to, create or suffer to exist, any Lien upon
or with respect to any of its properties or assets, whether now owned or hereafter acquired, or assign, or permit any of its Subsidiaries to assign, any right to receive income, except for: 
  
 (a) Liens created pursuant to the Loan Documents; 
  
 (b) Liens existing on the Original Closing Date and disclosed on Schedule
8.2 provided on the Original Closing Date; 
  
 (c) Customary
Permitted Liens of the Group; 
  

 121 

 (d) purchase money Liens granted by any Group Member (including the interest of a lessor under a Capital
Lease and Liens to which any property is subject at the time of such Group Member’s acquisition thereof) securing Indebtedness permitted under Section 8.1(d) and limited in each case to the property purchased with the proceeds of such purchase
money Indebtedness or subject to such Capital Lease; 
  
 (e) any
Lien securing the renewal, extension, refinancing or refunding of any Indebtedness secured by any Lien permitted by clauses (b) or (d) of this Section 8.2 without any change in the assets subject to such Lien; 
  
 (f) Liens in favor of lessors securing operating leases; 
  
 (g) Liens not otherwise permitted by the foregoing clauses of this Section
8.2 securing obligations or other liabilities of any Loan Party; provided, however, that (i) the aggregate outstanding amount of such obligations and liabilities secured by such Liens shall not exceed $30,000,000 at any time, (ii) without
duplication of the foregoing limit, the aggregate outstanding amount of such obligations and liabilities of Memec France secured by such Liens shall not exceed $10,000,000 at any time and (iii) without duplication of the foregoing limit, the
aggregate outstanding amount of such obligations and liabilities of Memec Germany secured by such Liens shall not exceed $10,000,000 at any time; 
  
 (h) Liens existing (i) on any asset acquired by a Group Member after the Amendment Closing Date and subject to which such asset is acquired or (ii) on
any asset of any Person which becomes a Group Member after the Amendment Closing Date; provided, however, that (x) such Lien is not created in contemplation of or in connection with such acquisition or such Person becoming a Group Member, as
the case may be, (y) such Lien shall not apply to any other property or assets of any other Group Member and (z) such Lien shall secure only those obligations which it secures on the date of such acquisition or the date such Person becomes a Group
Member, as the case may be; provided further, however, that in any event, such Liens are released within 90 days after such acquisition or such Person becoming a Group Member, as the case may be; 
  
 (i) Liens arising in connection with any netting or set-off arrangement
entered into by any Group Member in the ordinary course of its banking arrangements with any banking institution for the purpose of netting debit and credit balances on bank accounts of the Group Members operated on a net balance basis; 

 
 (j) any title transfer or retention of title arrangement entered into by
any Group Member (i) in the ordinary course of its trading activities and (ii) not in connection with the incurrence of any Indebtedness; 
  
 (k) Liens in favor of a banking institution arising by operation of law encumbering deposits (including the right of set-off) held by such banking
institution incurred in the ordinary course of business and which are within the general parameters customary in the banking industry; and 
  

 122 

 (l) Liens arising under or pursuant to any Receivables Purchase Agreement or the Asset-Backed Loan
Agreement. 
  
 Section 8.3. Investments. The Loan
Parties will not, and will not permit any other Group Member to, directly or indirectly make or maintain any Investment except: 
  
 (a) Investments existing on the Signing Date and disclosed on Schedule 8.3 to be provided on the Amendment Closing Date; 
  
 (b) Investments in cash and Cash Equivalents held in a Cash Collateral
Account or a Control Account with respect to which the Collateral Agent for the benefit of the Secured Parties has a first priority perfected Lien; 
  
 (c) Investments in accounts, contract rights and chattel paper (each as defined in the UCC), notes receivable and similar items arising or acquired in
the ordinary course of business of the Group; 
  
 (d) Investments
received in settlement of amounts due to any Group Member effected in the ordinary course of business; 
  
 (e) Investments by (i) any Loan Party in any other Loan Party, (ii) any Loan Party in connection with a Permitted Acquisition, (iii) a Subsidiary that is
not a Loan Party in the Applicable Memec Parent or any other Subsidiary and (iv) the Applicable Memec Parent or any other Loan Party in any Subsidiary that is not a Loan Party; provided, however, that the Investments pursuant to this clause
(iv) is in an aggregate outstanding principal amount not exceeding $25,000,000 at any time; 
  
 (f) loans or advances to employees of any Group Member in the ordinary course of business, which loans and advances shall not exceed the aggregate outstanding principal amount of $5,000,000 at any time; 
  
 (g) loans which constitute Indebtedness permitted pursuant to clauses (c),
(k) and (l) of Section 8.1; 
  
 (h) Investments not otherwise
permitted hereby in an aggregate outstanding amount not to exceed $5,000,000 at any time; 
  
 (i) [Intentionally Omitted]; 
  
 (j) Investments in VAT Bonds in an aggregate amount not to exceed $15,000,000 at any time; 
  
 (k) Investments made pursuant to the Contribution Agreement; 
  
 (l) [Intentionally Omitted]; and 
  
 (m) Investments included in the Group’s business plan and reasonably approved by the Facility Agents, in an aggregate outstanding amount not to
exceed $10,000,000 at any time. 
  

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 Section 8.4. Sale of Assets. The Loan Parties will not, and will not permit any other
Group Member to, sell, convey, transfer, lease or otherwise dispose of, any of its assets or any interest therein (including the sale or factoring at maturity or collection of any accounts) to any Person (any such disposition being an
“Asset Sale”), except: 
  
 (a) the sale
or disposition of Inventory in the ordinary course of business it being understood that transfers of Inventory between and among the Borrowers and any other Loan Party at cost, in accordance of past practice, shall be deemed to be a sale or
disposition of Inventory in the ordinary course of business; 
  
 (b) the sale or disposition of Equipment which has become obsolete or is replaced in the ordinary course of business; 
  
 (c) the Lease or sublease of Real Property not constituting a sale and leaseback, to the extent not otherwise prohibited by this Agreement; 

 
 (d) assignments and licenses of intellectual property of the Group in the
ordinary course of business; 
  
 (e) any Asset Sale (other than
Stock in a Member of the Group) to a Loan Party and any Asset Sale consisting of Stock in a Member of the Group to a Loan Party; 
  
 (f) the sale of trade accounts receivable and related rights under the Receivables Purchase Facilities and pursuant to the Contribution Agreement;

  
 (g) [Intentionally Omitted]; and 
  
 (h) as long as no Default or Event of Default is continuing or would result
therefrom, any other Asset Sale for Fair Market Value, payable in cash upon such sale; provided, however, that with respect to any such sale pursuant to this clause (h), (i) the aggregate consideration received for the sale of all assets sold
during any Fiscal Year shall not exceed $5,000,000, (ii) all Net Cash Proceeds of such Asset Sale are applied to the prepayment of the Obligations to the extent required by Section 2.10. 
  
 Section 8.5. Restricted Payments. The Loan Parties will not, and will not permit any other Group Member to,
directly or indirectly, declare, order, pay, make or set apart any sum for any Restricted Payment or make any other payment or other distribution on account of such Group Member, either directly or indirectly, whether in cash or property, except:

  
 (a) Restricted Payments (i) by any Subsidiary of a Loan
Party to such Loan Party or any other Loan Party and (ii) by any Loan Party to any other Loan Party (except that no Restricted Payments may be made to the Applicable Memec Parent pursuant to this paragraph (a)); 
  

 124 

 (b) cash dividends on the Stock of any Holding Company payable to any other Holding Company paid and
declared in any Fiscal Year solely for the purpose of funding the following: 
  
 (i) ordinary operating expenses of the Holding Companies not in excess of $3,000,000 in the aggregate in any Fiscal Year, to finance the payment of annual fees under the Investment Agreement by Memec Group Holdings;
and 
  
 (ii) payments by any
Holding Company in respect of foreign, federal, state or local taxes owing by such Holding Company in respect of the Group, but not greater than the amount that would be payable by the Applicable Memec Parent, on a consolidated basis, if the
Applicable Memec Parent were the taxpayer; 
  
 (c) [Intentionally
Omitted]; 
  
 (d) to the extent the Leverage Ratio for the Group
at the time of any such payments shall not exceed 2.50 to 1.00, regularly scheduled payments of cash interest under the Midco Loan Agreement to finance similar payments by Memec Holdings in accordance with the terms of the Consortium Loan Agreements
and/or Shareholder Subordinated Debt; 
  
 (e) the Permitted
Refinancings; 
  
 (f) the Permitted IPO Payments; 
  
 (g) the Permitted Term B Payments; 
  
 (h) at any time until and upon the Initial Public Offering, payments of (i)
principal and accrued interest in accordance with the terms of the Consortium Loan Agreements and/or Shareholder Subordinated Debt up to an aggregate amount equal to 12.50% of any Excess Cash Flow in respect of the Fiscal Year preceding the
declaration of such dividend; provided, however, that if the Leverage Ratio as of the end of the Fiscal Year preceding the declaration of such dividend or the payment of such principal or interest is less than 2.00 to 1.00, such dividends may
be declared and paid and/or such principal and interest may be paid, in an amount of up to 25% of any Excess Cash Flow for such preceding Fiscal Year, and/or (ii) costs and expenses incurred in connection with the Initial Public Offering and agreed
between the Borrowers and the Facility Agents; and 
  
 (i) at any
time after the Initial Public Offering, dividends on the Stock of Memec US PubCo (and dividends or distributions by Subsidiaries of Memec US PubCo to facilitate the payment thereof other than any such dividends and distributions which are derived
directly or indirectly from the proceeds from any Revolving Loans) up to an aggregate amount equal to 50.0% of Consolidated Net Income for the Group in respect of the Fiscal Year preceding the declaration of such dividend; provided, however,
that no borrowings under the Revolving Credit Facility may be used directly or indirectly for the purposes of paying any such dividends and distributions; 
  

 125 

 provided, however, that the Restricted Payments shall not be permitted if either (A) (x) in the case of Restricted
Payments described in clause (h) above, a Default shall have occurred and be continuing or (y) in the case of any of the Restricted Payments described above, an Event of Default shall have occurred and be continuing at the date of declaration or
payment thereof or would result therefrom or (B) such Restricted Payment is prohibited under the terms of any Indebtedness (other than the Obligations) of any Group Member. 
  
 Section 8.6. Restriction on Fundamental Changes; Permitted Acquisitions. Except in connection with a
Permitted Acquisition, the Permitted Reorganization or the Permitted IPO Reorganization, the Loan Parties will not, and will not permit any other Group Member to merge or consolidate with any Person (other than any other Loan Party). 
  
 Section 8.7. Change in Nature of Business. No Group Member
will make any material change in the nature or conduct of its business if it would result in the business of the Group taken as a whole being materially different from that which it is on the date hereof, whether in connection with a Permitted
Acquisition or otherwise. 
  
 Section 8.8. Transactions
with Affiliates. The Loan Parties will not, and will not permit any other Group Member to, except as otherwise expressly permitted herein, enter into any other transaction directly or indirectly with or for the benefit of any Affiliate of a
Loan Party which is not also a Loan Party (including guaranties and assumptions of obligations of any such Affiliate), except for (i) transactions in the ordinary course of business on a basis no less favorable to such Group Member as would be
obtained in a comparable arm’s length transaction with a Person not an Affiliate and (ii) salaries and other employee compensation to officers or directors of such Group Members commensurate with current compensation levels; provided,
however, that Memec Group Holdings shall not be prohibited under this Section 8.8 from entering into and performing under the Investment Agreement, the Consortium Loan Agreements and the Investor Discount Bonds, and Memec Limited shall not be
prohibited under this Section 8.8 from entering into and performing under the MidCo Loan Agreement; provided further, however, that any payments thereunder shall not be permitted if either (i) an Event of Default or a Default shall have
occurred and be continuing at the date of declaration or payment thereof or would result therefrom or (ii) such payments are prohibited under the terms of either of the Consortium Loan Agreements or the Investor Discount Bonds. To the extent
payments under the Investment Agreement are prohibited pursuant to clause (i) or (ii) of this Section 8.8, fees thereunder may accrue and be paid by Memec Group Holdings when the events or circumstances causing such prohibition no longer continue.

  
 Section 8.9. Restrictions on Subsidiary Distributions;
No New Negative Pledge. Other than pursuant to the Loan Documents and any agreements governing any purchase money Indebtedness or Capital Lease Obligations permitted 
  

 126 

 by clause (b), (d), or (e) of Section 8.1 (in which latter case, any prohibition or limitation shall only be effective
against the assets financed thereby), the Loan Parties will not, and will not permit any other Group Members to, (a) agree to enter into or suffer to exist or become effective any consensual encumbrance or restriction of any kind on the ability of
such Subsidiary to pay dividends or make any other distribution or transfer of funds or assets or make loans or advances to or other Investments in, or pay any Indebtedness owed to, any Group Member or (b) enter into or suffer to exist or become
effective any agreement which prohibits or limits the ability of any Group Member to create, incur, assume or suffer to exist any Lien upon any of its property, assets or revenues, whether now owned or hereafter acquired, to secure the Obligations,
including any agreement which requires other Indebtedness or Contractual Obligation to be equally and ratably secured with the Obligations, except for (i) agreements entered into in the ordinary course of business as conducted at the date hereof,
(ii) agreements relating to the granting of Customary Permitted Liens upon the assets subject to such Customary Permitted Lien and (iii) agreements relating to Liens upon Leases with an annual rental payment of less than $500,000 or owned Real
Property of a value less than $500,000. 
  
 Section 8.10.
Modification of Documents. The Loan Parties will not, and will not permit any other Group Member to, (a) change their capital structure (including in the terms of its outstanding Stock) or (b) otherwise amend (i) their Constituent
Documents or (ii) the Investment Agreement, except for (A) changes and amendments which do not materially affect the rights and privileges of any Group Member, or the interests of the Facility Agents, the Collateral Agent, the Lenders and the
Issuers under the Loan Documents or in the Collateral, (B) changes and amendments required pursuant to the UK Receivables Agreement to preserve the Stamp Duty Group (as defined in the Asset-Backed Loan Agreement) and (C) changes and amendments
required pursuant to the Permitted IPO Reorganization. 
  
 Section 8.11. Modification of Related Documents. The Loan Parties will not, and will not permit any other Group Member to, (a) alter, rescind, terminate, amend, supplement, waive or otherwise modify any provision of any
Related Document (except for modifications which do not materially affect the rights and privileges of any Group Member under such Related Document, or the interests of the Secured Parties under the Loan Documents or in the Collateral) or (b) permit
any breach or default to exist under any Related Document or take or fail to take any action thereunder, if to do so would have a Material Adverse Effect; provided, however, that the Receivables Transaction Documents may be amended for the
purpose of (i) adding Accounts of Group Members organized in France and/or Germany, (ii) increasing the commitments thereunder by an aggregate amount not to exceed $50,000,000 (or such higher amount as may be agreed by the Requisite Lenders in their
sole discretion) and (iii) facilitating the Permitted IPO Reorganization; provided further, however, that any such amended Receivables Transaction Documents shall be on substantially the same terms and conditions as on the Original Closing
Date. 
  
 Section 8.12. Modification of Shareholder
Subordinated Debt Agreements. The Loan Parties will not, and will not permit any other Group Member 
  

 127 

 to, change or amend the terms of any Shareholder Subordinated Debt (or any indenture or agreement in connection
therewith) if the effect of such amendment is to: (a) increase the interest rate on such Shareholder Subordinated Debt; (b) change the dates upon which payments of principal or interest are due on such Shareholder Subordinated Debt other than to
extend such dates; (c) change any default or event of default other than to delete or make less restrictive any default provision therein, or add any covenant with respect to such Shareholder Subordinated Debt; (d) change the redemption or
prepayment provisions of such Shareholder Subordinated Debt other than to extend the dates therefor or to reduce the premiums payable in connection therewith; or (e) change or amend any other term if such change or amendment would materially
increase the obligations of the obligor or confer additional material rights to the holder of such Shareholder Subordinated Debt in a manner adverse in any material respect to any Group Member, either Facility Agent or any Lender; provided however,
that the Shareholder Subordinated Debt Agreements may be amended for the purpose of facilitating the Permitted IPO Reorganization. 
  
 Section 8.13. Accounting Changes; Fiscal Year. The Loan Parties will not, and will not permit any other Group Member to, change its (a)
accounting treatment and reporting practices or tax reporting treatment, except as required by GAAP or any Requirement of Law and disclosed to the Lenders and the Facility Agents or (b) Fiscal Year. 
  
 Section 8.14. Margin Regulations. The Loan Parties will not,
and will not permit any other Group Member to, use all or any portion of the proceeds of any credit extended hereunder to purchase or carry Margin Stock. 
  
 Section 8.15. Operating Leases; Sale/Leasebacks. 
  

(a) The Loan Parties will not, and will not permit any other Group Member to, become or remain liable as lessee or guarantor or other surety with
respect to any operating lease, unless that aggregate amount of all rents paid or accrued under all such operating leases shall not exceed $25,000,000 in any Fiscal Year. 
  
 (b) The Loan Parties will not, and will not permit any other Group Member to, enter into any sale and leaseback transaction
covering any property with an aggregate Fair Market Value in excess of $10,000,000. 
  
 Section 8.16. Cancellation of Indebtedness Owed to It. The Loan Parties will not, and will not permit any other Group Member to, cancel any claim or Indebtedness owed to it except in the ordinary course
of business consistent with past practice. 
  
 Section 8.17.
No Speculative Transactions. The Loan Parties will not, and will not permit any other Group Member to, engage in any transaction involving Hedging Contracts except as required by Section 7.12 or for the sole purpose of hedging in the
normal course of business and consistent with industry practices. 
  

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 Section 8.18. Compliance with ERISA. The Loan Parties will not, and will not permit any
other Group Member to, or cause or permit any ERISA Affiliate to, cause or permit to occur (a) an event which would result in the imposition of a Lien under Section 412 of the Code or Section 302 or 4068 of ERISA or (b) an ERISA Event that would
have a Material Adverse Effect. 
  
 Section 8.19.
Environmental. The Loan Parties will not, and will not permit any other Group Member to, allow a Release of any Contaminant in violation of any Environmental Law; provided, however, that no Group Member shall be deemed in violation
of this Section 8.19 if, as the consequence of all such Releases, the Group would not incur Environmental Liabilities and Costs in excess of $15,000,000 in the aggregate. 
  
 Section 8.20. Cash Management Procedures. Following the determination and establishment of appropriate cash
management procedures, the Loan Parties will not, and will not permit any other Group Member to, establish or maintain any cash management system (including deposit accounts and securities accounts) other than in accordance with the cash management
procedures agreed between the Loan Parties and the Facility Agents pursuant to Section 7.19. 
  
 Section 8.21. Holding Company Status. Notwithstanding anything to the contrary contained in this Agreement, the Holding Companies shall not engage in any activities, own any assets or incur any
Indebtedness or Guaranty Obligations other than (i) owning the Stock of their Subsidiaries, (ii) their activities incident to the performance of their obligations under this Agreement and the other Loan Documents and the Related Documents, (iii)
other Guaranty Obligations and Indebtedness specifically permitted under Section 8.1, (iv) receipt of Restricted Payments permitted to be paid by Section 8.5 and (v) satisfaction of obligations for taxes. 
  
 ARTICLE IX 
  
 EVENTS OF DEFAULT 
  
 Section 9.1. Events of Default. Each of the following events
shall be an Event of Default: 
  
 (a) Any Borrower shall fail to
pay any principal of any Loan or any Reimbursement Obligation when the same becomes due and payable; or 
  
 (b) Any Loan Party shall fail to pay any interest on any Loan, any fee under any of the Loan Documents or any other Obligation (other than the ones
referred to in clause (a) above) and such non-payment continues for a period of five Business Days after the due date therefor; or 
  
 (c) any representation or warranty made or deemed made by any Loan Party in any Loan Document or by any Loan Party (or any of its officers) in connection
with any Loan Document shall prove to have been incorrect in any material respect when made or deemed made; or 
  

 129 

 (d) any Loan Party shall fail to perform or observe (i) any term, covenant or agreement contained in
Article V, Section 6.1 or Section 6.2, Section 8.1 through Section 8.4 (inclusive), Section 8.8 or Section 8.21, or (ii) any other term, covenant or agreement contained in this Agreement or in any other Loan Document if, in the case of any such
term, covenant or agreement that is capable of being remedied, such failure under this clause (ii) shall remain unremedied for 30 days (or, in the case of the failure to perform the covenant in Section 6.1(h), ten days) after the earlier of the date
on which (A) a Responsible Officer of the Borrower becomes aware of such failure or (B) written notice thereof shall have been given to the Borrower by the Facility Agents or any Lender; or 
  
 (e) (i) any Loan Party or any Material Subsidiary shall fail to make any
payment on any of its Indebtedness (other than the Obligations or any Guaranty Obligation in respect of Indebtedness of any other Person) or Hedging Contracts having a principal amount of $5,000,000 or more, within five Business Days after the same
becomes due and payable (whether by scheduled maturity, required prepayment, acceleration, demand or otherwise); or (ii) any other event shall occur or condition shall exist and remain unremedied for five Business Days under any agreement or
instrument relating to any such Indebtedness, if the effect of such event or condition is to accelerate the maturity of such Indebtedness or Hedging Contract or for the maturity of such Indebtedness or Hedging Contract to become capable of
acceleration; or (iii) any such Indebtedness or Hedging Contract shall become or be declared to be due and payable, or required to be prepaid or repurchased (other than by a regularly scheduled required prepayment), prior to the stated maturity
thereof and is not paid, prepaid or repurchased within five Business Days after the date becoming declared to be due and payable; or 
  
 (f) any Loan Party or any Material Subsidiary shall generally not pay its debts as such debts become due, or shall admit in writing its inability to pay
its debts generally, or shall make a general assignment for the benefit of creditors, or any proceeding shall be instituted by or against any Loan Party or any Material Subsidiary seeking to adjudicate it bankrupt or insolvent, or seeking
liquidation, administration, winding up, reorganization, arrangement, adjustment, protection, relief or composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief of debtors, or seeking the entry of
an order for relief or the appointment of a custodian, receiver, administrative receiver, administrator, manager, trustee or other similar official for it or for any substantial part of its property and, in the case of any such proceedings
instituted against any Loan Party or any Material Subsidiary (but not instituted by it), either such proceedings shall remain undismissed or unstayed for a period of thirty days or any of the actions sought in such proceedings shall occur; or any
Loan Party or any Material Subsidiary shall take any corporate action to authorize any of the actions set forth above in this clause (f); or 
  
 (g) one or more judgments or orders (or other similar process) involving, in any single case or in the aggregate, an amount in excess of $5,000,000 in
the case of a money judgment, to the extent not covered by insurance, shall be rendered against any Loan Party or one or more Material Subsidiaries and shall remain unpaid and either (i) enforcement proceedings shall have been commenced by

  

 130 

 any creditor upon such judgment or order or (ii) there shall be any period of ten consecutive days during which a stay of
enforcement of such judgment or order, by reason of a pending appeal or otherwise, shall not be in effect; or 
  
 (h) any execution, distress or similar proceeding is levied against, or a lienholder takes possession of, the whole or a material part (having a value of
more than $5,000,000 of the property, undertaking or assets of any Loan Party or any Material Subsidiary which are not discharged within 21 days of commencement; or 
  
 (i) by or under the authority of any Governmental Authority, (a) the management of any Loan Party or any Material
Subsidiary is wholly or partially displaced, or (b) the authority of any Loan Party or any Material Subsidiary in the conduct of its business is wholly or partially curtailed, or (c) all or a majority of the issued shares of any Loan Party or any
Material Subsidiary or the whole or any part (the book value of which is 20% or more of the book value of the whole) of its revenues or costs is seized, nationalized or compulsorily acquired; or 
  
 (j) an ERISA Event shall occur and the amount of all liabilities and
deficiencies resulting therefrom, whether or not assessed, could have a Material Adverse Effect; or 
  
 (k) any breach by any of the Loan Parties of any of the provisions of the Priorities Intercreditor Agreement which, in the opinion of the Requisite
Senior Lenders, is prejudicial to their position thereunder; or 
  
 (l) any provision of any Collateral Document or any Guaranty after delivery thereof pursuant to this Agreement or any other Loan Document shall for any reason cease to be valid and binding, or enforceable against, on any Loan Party thereto;
or 
  
 (m) any Collateral Document shall for any reason cease to
create a valid Lien on any of the Collateral purported to be covered thereby or except as permitted by the Loan Documents, such Lien shall cease to be a perfected and first priority Lien or any Loan Party shall so state in writing; or 
  
 (n) the Group as a whole ceases to carry on any material part of the
business if to do so would result in the business of the Group taken as a whole being materially different from that which it is on the Signing Date; 
  
 (o) the Authorized Accountants qualify the audited consolidated Financial Statements of the Group; 
  
 (p) except to the extent specifically permitted by this Agreement, (i) Memec
Group Holdings carries on any business other than that of holding all of the issued shares in Memec Limited or incurring liabilities other than pursuant to the Loan Documents or any Related Document to which it is a party, (ii) Memec Limited carries
on any business other than that of holding all of the issued shares in Overseas Holding and Memec or incurring liabilities other than pursuant to the Loan Documents or any Related Document to which it is a party, (iii) Overseas Holding 

 

 131 

 carries on any business other than that of holding all of the issued shares in the Overseas Operating Companies or
incurring liabilities other than pursuant to the Loan Documents or any Related Document to which it is a party or (iv) Memec LLC carries on any business other than that of holding all of the issued shares in the American Operating Companies or
incurring liabilities other than pursuant to the Loan Documents or any Related Document to which it is a party; or 
  
 (q) there shall occur any Change of Control; or 
  
 (r) subsequent to the Amendment Closing Date, any event or circumstance shall occur which has a Material Adverse Effect; or 
  
 (s) there shall be declared the Termination Date pursuant to (and as defined
in) the Asset-Backed Loan Agreement before its re-scheduled maturity in October 2007; or 
  
 (t) any Group Member shall have entered into one or more consent or settlement decrees or agreements or similar arrangements with a Governmental Authority or one or more judgments, orders, decrees or similar actions
shall have been entered against any Group Member based on or arising from the violation of or pursuant to any Environmental Law, or the generation, storage, transportation, treatment, disposal or Release of any Contaminant and, in connection with
all the foregoing, the Group is likely to incur Environmental Liabilities and Costs in excess of $15,000,000 in the aggregate. 
  
 Section 9.2. Remedies. During the continuance of any Event of Default, the Senior A Facility Agent (a) may, and shall at the request of the
Requisite Senior Lenders (or, to the extent provided in the Priorities Intercreditor Agreement, by the Requisite Senior Lenders and/or the Requisite Term B Lenders), by notice to the Applicable Memec Parent declare that all or any portion of the
Commitments be terminated, whereupon the obligation of each Lender to make any Loan and each Issuer to issue any Letter of Credit shall immediately terminate, and/or (b) may and shall at the request of the Requisite Senior Lenders (or, to the extent
provided in the Priorities Intercreditor Agreement, by the Requisite Senior Lenders and/or the Requisite Term B Lenders), by notice to the Applicable Memec Parent, declare the Loans, all interest thereon and all other amounts and Obligations payable
under this Agreement to be forthwith due and payable, whereupon the Loans, all such interest and all such amounts and Obligations shall become and be forthwith due and payable, without presentment, demand, protest or further notice of any kind, all
of which are hereby expressly waived by the Borrowers; provided, however, that upon the occurrence of the Event of Default specified in Section 9.1(f), (i) the Commitments of each Lender to make Loans and of each Lender and Issuer to issue or
participate in Letters of Credit shall automatically be terminated and (ii) the Loans, all such interest and all such amounts and Obligations shall automatically become and be due and payable, without presentment, demand, protest or any notice of
any kind, all of which are hereby expressly waived by the Borrowers. In addition to the remedies set forth above, the Facility Agents and the Collateral Agent may exercise any remedies provided for by the Collateral Documents in accordance with the
terms thereof or any other remedies provided by applicable law. 
  

 132 

 Section 9.3. Actions in Respect of Letters of Credit and Ancillary Facilities. Upon the
Revolving Credit Termination Date or as required by Section 2.10(f) and Section 2.10(h) the Borrowers shall pay to the Senior A Facility Agent in immediately available funds at the Senior A Facility Agent’s office referred to in Section 11.8,
for deposit in a Cash Collateral Account, an amount equal to 105% of the sum of all outstanding Letter of Credit Obligations and Ancillary Outstandings. The Senior A Facility Agent may, from time to time after funds are deposited in any Cash
Collateral Account, apply funds then held in such Cash Collateral Account to the payment of any amounts, in accordance with Section 2.14(f), as shall have become or shall become due and payable by the Borrowers to the Issuers or Lenders in respect
of the Letter of Credit Obligations and Ancillary Outstandings. The Senior A Facility Agent shall promptly give written notice of any such application; provided, however, that the failure to give such written notice shall not invalidate any
such application. 
  
 Section 9.4. Rescission. If
at any time after termination of the Commitments and/or acceleration of the maturity of the Loans, the Borrowers shall pay all arrears of interest and all payments on account of principal of the Loans and Reimbursement Obligations which shall have
become due otherwise than by acceleration (with interest on principal and, to the extent permitted by law, on overdue interest, at the rates specified herein) and all Events of Default and Defaults (other than non-payment of principal of and accrued
interest on the Loans due and payable solely by virtue of acceleration) shall be remedied or waived pursuant to Section 11.1, then upon the written consent of the Requisite Lenders and written notice to the Borrowers, the termination of the
Commitments and/or the acceleration and their consequences may be rescinded and annulled; provided, however, that such action shall not affect any subsequent Event of Default or Default or impair any right or remedy consequent thereon. The
provisions of the preceding sentence are intended merely to bind the Lenders and the Issuers to a decision which may be made at the election of the Requisite Lenders; they are not intended to benefit the Borrowers and do not give the Borrowers the
right to require the Lenders to rescind or annul any acceleration hereunder, even if the conditions set forth herein are met. 
  
 ARTICLE X 
  
 THE FACILITY AGENTS; THE AGENTS 
  
 Section 10.1. Authorization and Action. 
  
 (a) Each Lender and each Issuer hereby appoints J.P. Morgan Europe Limited as the Senior A Facility Agent and Barclays Bank PLC as the Senior B Facility
Agent hereunder and each Lender and each Issuer authorizes the Applicable Facility Agent to take such action as agent on its behalf and to exercise such powers under this Agreement and the other Loan Documents as are delegated to the Applicable
Facility Agent under such agreements and to exercise such powers as are reasonably incidental thereto. Without limiting the foregoing, each Lender and each Issuer hereby authorizes the Applicable Facility Agent to execute and deliver, and to perform
its obligations under, each of the Loan Documents to which the Applicable Facility Agent is a party and to exercise all rights, powers and remedies that the Applicable Facility Agent may have under such Loan Documents and that 
  

 133 

 under the Collateral Documents the Applicable Facility Agent is acting as agent for the Lenders, Issuers and the other
Secured Parties. Each Lender and each Issuer hereby appoints JPMorgan as the Collateral Agent and hereby authorizes the Collateral Agent to act as Collateral Agent on its behalf in accordance with the terms of this Agreement and the other Loan
Documents. 
  
 (b) As to any matters not expressly provided for
by this Agreement and the other Loan Documents (including enforcement or collection), the Applicable Facility Agent shall not be required to exercise any discretion or take any action, but shall be required to act or to refrain from acting (and
shall be fully protected in so acting or refraining from acting) upon the instructions of the Applicable Requisite Lenders, and such instructions shall be binding upon all Lenders and each Issuer; provided, however, that the Applicable
Facility Agent shall not be required to take any action which (i) the Applicable Facility Agent in good faith believes exposes it to personal liability unless the Applicable Facility Agent receives an indemnification satisfactory to it from the
Lenders and the Issuers with respect to such action or (ii) is contrary to this Agreement or applicable law. The Applicable Facility Agent agrees to give to each Lender and each Issuer prompt notice of each notice given to it by any Loan Party
pursuant to the terms of this Agreement or the other Loan Documents. For the avoidance of doubt, in the absence of instructions from the Applicable Requisite Lenders, the Applicable Facility Agent may act (or refrain from taking action) as it
considers to be in the best interests of the relevant Lenders. 
  
 (c) In performing its functions and duties hereunder and under the other Loan Documents, the Applicable Facility Agent is acting solely on behalf of the relevant Lenders and the Issuers and its duties are entirely administrative in nature.
The Facility Agents do not assume and shall not be deemed to have assumed any obligation other than as expressly set forth herein and in the other Loan Documents or any other relationship as the agent, fiduciary or trustee of or for any Lender,
Issuer or holder of any other Obligation. The Facility Agents and/or the Collateral Agent may perform any of its duties under any of the Loan Documents by or through its agents or employees, or by or through any of its Affiliates. 
  
 (d) Except to the extent set forth in Section 7.18, and notwithstanding
anything to the contrary contained in this Agreement, (i) the Syndication Agent is a Lender designated as “Syndication Agent” for title purposes only and (ii) the Arrangers have been so designated for title purposes only, and
in such capacities neither shall have any obligations or duties whatsoever under this Agreement or any other Loan Document to any Loan Party, any Lender or any Issuer nor shall the Syndication Agent have any rights separate from its rights as a
Lender except as expressly provided in this Agreement. 
  
 (e) It
is understood and agreed that (i) no additional arrangers or agents will be appointed and no other titles awarded in connection with the Facilities without the approval of the Facility Agents and the Arrangers and (ii) no Lender or other Person will
receive compensation outside the terms of this Agreement or the Fee Letters in order to obtain its commitment to participate in the Facilities; provided however that the Arrangers may invite one or more financial institutions selected by
them, following consultation with the Applicable Memec Parent, to join them as an underwriter and share the commitment to provide the Facilities. 
  

 134 

 Section 10.2. Facility Agents, Reliance, Etc. Neither the Facility Agents nor any of its
Affiliates or any of the respective directors, officers, agents or employees of the Facility Agents or any such Affiliate shall be liable for any action taken or omitted to be taken by it, him, her or them under or in connection with this Agreement
or the other Loan Documents, except for its, his, her or their own gross negligence or willful misconduct. Without limiting the foregoing, the Facility Agents: (a) may treat the payee of any Note as its holder until such Note has been assigned in
accordance with Section 11.2; (b) may rely on the Register to the extent set forth in Section 11.1(c); (c) may consult with legal counsel (including counsel to the Borrowers or any other Loan Party), the Authorized Accountants and other experts
selected by it and shall not be liable for any action taken or omitted to be taken in good faith by it in accordance with the advice of such counsel, Authorized Accountants or experts; (d) makes no warranty or representation to any Lender or Issuer
and shall not be responsible to any Lender or Issuer for any statements, warranties or representations made by or on behalf of any Group Member in or in connection with this Agreement or any of the other Loan Documents; (e) shall not have any duty
to ascertain or to inquire either as to the performance or observance of any of the terms, covenants or conditions of this Agreement or any of the other Loan Documents or the financial condition of any Group Member, or the existence or possible
existence of any Default or Event of Default; (f) shall not be responsible to any Lender or Issuer for the due execution, legality, validity, enforceability, genuineness, sufficiency or value of this Agreement or any of the other Loan Documents or
any other instrument or document furnished pursuant hereto or thereto; and (g) shall incur no liability under or in respect of this Agreement or any of the other Loan Documents by acting upon any notice, consent, certificate or other instrument or
writing (which may be by telecopy) or any telephone message believed by it to be genuine and signed or sent by the proper party or parties. 
  
 Section 10.3. Each Facility Agent Individually. With respect to its Ratable Portion, J.P. Morgan Europe Limited and Barclays Bank PLC shall
have and may exercise the same rights and powers hereunder and are subject to the same obligations and liabilities as and to the extent set forth herein for any other Lender. The terms “Lenders” or “Requisite
Lenders” or any similar terms shall, unless the context clearly otherwise indicates, include the Facility Agents in their respective individual capacity as a Lender or as one of the Requisite Lenders. J.P. Morgan Europe Limited and
Barclays Bank PLC and their respective Affiliates may accept deposits from, lend money to, and generally engage in any kind of banking, trust or other business with any Group Member as if it were not acting as a Facility Agent. 
  
 Section 10.4. Lender Credit Decision. Each Lender and
each Issuer acknowledges that it shall, independently and without reliance upon the Facility Agents or any other Lender conduct its own independent investigation of the financial condition and affairs of the Loan Parties in connection with the
making and continuance of the Loans and with the issuance of the Letters of Credit. Each Lender and each Issuer also acknowledges that it will, independently and without reliance 
  

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 upon the Facility Agents or any other Lender and based on such documents and information as it shall deem appropriate at
the time, continue to make its own credit decisions in taking or not taking action under this Agreement and other Loan Documents. 
  
 Section 10.5. Indemnification. Each Lender agrees to indemnify the Facility Agents and each of their respective Affiliates, and each of
their respective directors, officers, employees, agents and advisors (to the extent not reimbursed by the Borrowers), from and against such Lender’s aggregate Ratable Portion of any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses and disbursements (including fees and disbursements of legal counsel) of any kind or nature whatsoever which may be imposed on, incurred by, or asserted against, the Facility Agents or any of their
respective Affiliates, directors, officers, employees, agents and advisors in any way relating to or arising out of this Agreement or the other Loan Documents or any action taken or omitted by the Facility Agents under this Agreement or the other
Loan Documents; provided, however, that no Lender shall be liable for any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements resulting from the Facility
Agents’ or such Affiliate’s gross negligence or willful misconduct. Without limiting the foregoing, each Lender agrees to reimburse the Facility Agents promptly upon demand for its ratable share of any out-of-pocket expenses (including
fees and disbursements of legal counsel) incurred by the Facility Agents in connection with the preparation, execution, delivery, administration, modification, amendment or enforcement (whether through negotiations, legal proceedings or otherwise)
of, or legal advice in respect of its rights or responsibilities under, this Agreement or the other Loan Documents, to the extent that the Facility Agents are not reimbursed for such expenses by the Borrowers or another Loan Party. 
  
 Section 10.6. Successor Facility Agents. Either Facility Agent
may resign at any time by giving written notice thereof to the Lenders and the Borrowers. Upon any such resignation, the Applicable Requisite Lenders shall have the right to appoint a successor Applicable Facility Agent. If no successor Applicable
Facility Agent shall have been so appointed by the Applicable Requisite Lenders, and shall have accepted such appointment, within thirty days after the retiring Applicable Facility Agent’s giving of notice of resignation, then the retiring
Applicable Facility Agent may, on behalf of the Lenders, appoint a successor Applicable Facility Agent, selected from among the Lenders. In either case, such appointment shall be subject to the prior written approval of the Borrowers (which approval
may not be unreasonably withheld and shall not be required upon the occurrence and during the continuance of an Event of Default). Upon the acceptance of any appointment as Facility Agent by a successor Facility Agent, such successor Facility Agent
shall succeed to and become vested with all the rights, powers, privileges and duties of the retiring Facility Agent, and the retiring Facility Agent shall be discharged from its duties and obligations under this Agreement and the other Loan
Documents. Prior to any retiring Facility Agent’s resignation hereunder as Facility Agent, the retiring Facility Agent shall take such action as may be reasonably necessary to assign to the successor Facility Agent its rights as Facility Agent
under the Loan Documents. After such resignation, the retiring Facility Agent shall continue to have the benefit of this Article X as to any actions taken or omitted to be taken by it while it was Facility Agent under this Agreement and the other
Loan Documents. 
  

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 Section 10.7. Concerning the Collateral and the Collateral Documents. 
  
 (a) Each Lender and each Issuer agrees that any action taken by the
Facility Agents, the Collateral Agent or the Requisite Lenders (or, where required by the express terms of this Agreement, a greater proportion of the Lenders) in accordance with the provisions of this Agreement or of the other Loan Documents, and
the exercise by the Facility Agents, the Collateral Agent or the Requisite Lenders (or, where so required, such greater proportion) of the powers set forth herein or therein, together with such other powers as are reasonably incidental thereto,
shall be authorized and binding upon all of the Lenders, Issuers and other Secured Parties. Without limiting the generality of the foregoing, the Collateral Agent shall have the sole and exclusive right and authority to: (i) act as the disbursing
and collecting agent for the Lenders and the Issuers with respect to all payments and collections arising in connection herewith and with the Collateral Documents; (ii) execute and deliver each Collateral Document and accept delivery of each such
agreement delivered by any Loan Party; (iii) act as collateral agent for the Lenders, the Issuers and the other Secured Parties for purposes of the perfection of all security interests and Liens created by such agreements and all other purposes
stated therein; provided, however, that the Collateral Agent hereby appoints, authorizes and directs each Lender and Issuer to act as collateral sub-agent for the Collateral Agent, the Lenders and the Issuers for purposes of the perfection of
all security interests and Liens with respect to any Loan Party’s respective deposit accounts maintained with, and cash and Cash Equivalents held by, such Lender or such Issuer; (iv) manage, supervise and otherwise deal with the Collateral; (v)
take such action as is necessary or desirable to maintain the perfection and priority of the security interests and Liens created or purported to be created by the Collateral Documents; and (vi) except as may be otherwise specifically restricted by
the terms hereof or of any other Loan Document, exercise all remedies given to the Collateral Agent, the Lenders, the Issuers and the other Secured Parties with respect to the Collateral under the Loan Documents relating thereto, applicable law or
otherwise. 
  
 (b) Each of the Lenders and the Issuers hereby
directs, in accordance with the terms hereof, the Collateral Agent to release (or, in the case of clause (ii) below, release or subordinate) any Lien held by the Collateral Agent for the benefit of the Secured Parties (and/or in the case of clause
(iii) below, to not take a Lien for the Benefit of the Secured Parties): 
  
 (i) against all of the Collateral upon termination of the Commitments and payment and satisfaction in full of all Loans, Reimbursement Obligations and all other Obligations which have matured and which the Collateral
Agent has been notified in writing are then due and payable (and, in respect of contingent Letter of Credit Obligations, with respect to which cash collateral has been deposited in a Cash Collateral Account or a back-up letter of credit has been
issued, in either case on terms satisfactory to the Collateral Agent and the applicable Issuers); 
  

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 (ii) against any assets that are subject to a Lien permitted by Section 8.2(d)or Section
8.2(e); 
  
 (iii) against any Receivables (as
defined in the Receivables Purchase Agreement), any Related Security (as defined in the Receivables Purchase Agreement) and any collections with respect to the foregoing, of the Group to the extent such Receivables, Related Security and collections
are sold by the Group into the Receivables Purchase Facility as permitted by Section 8.4(f) and in accordance with the Receivables Purchase Agreement in accordance with the documentation therefor; excluding, however, any Receivables, Related
Security and/or collections sold into the Receivables Purchase Facility and subsequently sold back to the Group in connection with and pursuant to the terms of the Receivables Purchase Agreement; provided, however, that following the
occurrence and during the continuance of a Termination Event (as defined in the Receivables Purchase Agreement), the Collateral Agent is directed to take such Liens; and 
  
 (iv) against any part of the Collateral sold or disposed of by a Loan Party if such sale or disposition is
permitted by this Agreement (or permitted pursuant to a waiver or consent of a transaction otherwise prohibited by this Agreement) or, if not pursuant to such sale or disposition, against Collateral with a book value of up to $100,000, if such
release is consented to by the Collateral Agent, or any part of the Collateral in excess of such amount if such release is consented to by all the Lenders. 
  
 Each of the Lenders and the Issuers hereby directs the Collateral Agent to execute and deliver or file such termination and partial release statements and do such other
things as are necessary to release Liens to be released pursuant to this Section 10.7 promptly upon the effectiveness of any such release. 
  
 Section 10.8. Collateral Matters Relating to Related Obligations. The benefit of the Loan Documents and of the provisions of this Agreement
relating to the Collateral shall extend to and be available in respect of any Secured Obligation which arises under any Hedging Contract or any Daylight Facility Agreement or which is otherwise owed to Persons other than the Collateral Agent, the
Facility Agents, the Lenders and the Issuers (collectively, “Related Obligations”) solely on the condition and understanding, as among the Collateral Agent and all Secured Parties, that: (i) the Related Obligations shall be
entitled to the benefit of the Loan Documents and the Collateral to the extent expressly set forth in this Agreement and the other Loan Documents and to such extent the Collateral Agent shall hold, and have the right and power to act with respect
to, the Guaranty and the Collateral on behalf of and as agent for the holders of the Related Obligations, but the Collateral Agent is otherwise acting solely as agent for the Lenders and the Issuers and shall have no fiduciary duty, duty of loyalty,
duty of care, duty of disclosure or other obligation whatsoever to any holder of Related Obligations; (ii) all matters, acts and omissions relating in any manner to the Guaranty, the Collateral, or the omission, creation, perfection, priority,
abandonment or release of any Lien, shall be governed solely by the provisions of this Agreement and the other Loan Documents and no separate Lien, right, power or remedy shall arise or exist in favor of any Secured Party 
  

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 under any separate instrument or agreement or in respect of any Related Obligation; and (iii) each Secured Party shall be
bound by all actions taken or omitted, in accordance with the provisions of this Agreement and the other Loan Documents, by the Collateral Agent and the Requisite Lenders, each of whom shall be entitled to act at its sole discretion and exclusively
in its own interest given its own Commitments and its own interest in the Loans, Letter of Credit Obligations and other Obligations to it arising under this Agreement or the other Loan Documents, without any duty or liability to any other Secured
Party or as to any Related Obligation and without regard to whether any Related Obligation remains outstanding or is deprived of the benefit of the Collateral or becomes unsecured or is otherwise affected or put in jeopardy thereby; and (iv) no
holder of Related Obligations and no other Secured Party (except the Collateral Agent, the Facility Agents, the Lenders and the Issuers, to the extent set forth in this Agreement) shall have any right to be notified of, or to direct, require or be
heard with respect to, any action taken or omitted in respect of the Collateral or under this Agreement or the Loan Documents; and (v) no holder of any Related Obligation shall exercise any right of setoff, banker’s lien or similar right except
as expressly provided in Section 11.6. 
  
 Section 10.9.
Income and Corporation Taxes Act 1988. Each Lender represents to the Facility Agents (on the date hereof, or, in the case of a Lender which becomes a party hereto pursuant to Section 11.2, on the date on which the relevant transfer or
assignment becomes effective) that either: (i) it is not resident for tax purposes in the United Kingdom and will be (when Loans are made) or is beneficially entitled to the Loans and the interest thereon; or (ii) it is a
“bank” as defined for the purposes of Section 840A of the Income and Corporation Taxes Act 1988 and will be (when Loans is made) or is beneficially entitled to the Loans and interest thereon, and each Lender in favor of the
Facility Agents undertakes to notify the Facility Agents promptly if there is any change in its position from that set out above. 
  
 Section 10.10. Joint and Several Creditorship. For the purposes of taking security in the Netherlands, the Collateral Agent shall be the
joint and several creditor (together with each Lender and Issuer) of each and every Obligation of any Loan Party towards such Lender or Issuer so that, accordingly, the Collateral Agent will have its own independent right to demand performance by
the relevant Loan Party of those Obligations and such Obligations will be discharged by and to the extent of any discharge thereof either to the Collateral Agent or to the relevant Lender or Issuer, as the case may be. 
  
 Section 10.11. Covenant to Pay. Each Loan Party covenants in
favor of the Collateral Agent with the agreement of each Lender and Issuer to pay the Obligations to the Collateral Agent as joint and several creditor thereof when and to the extent due from it under the terms of the Loan Documents, except that
each Loan Party may also, subject to the terms of this Agreement, until otherwise notified by the Collateral Agent, pay such Obligations directly to the relevant Lender or Issuer, as the case may be, and each such payment will constitute a pro rata
discharge of the covenant to pay in favor of the Collateral Agent set forth herein. 
  

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 Section 10.12. Concerning Alternative Currencies. Each Lender authorizes the Facility
Agents, in its reasonable discretion, to undertake procedures of an administrative nature and otherwise consistent with the terms and conditions of this Agreement, in respect of Borrowings of Alternative Currency Loans, in order that the Borrowers
will have the full opportunity to benefit from the full amount of the Alternative Currency Lenders’ Alternative Currency Commitments. 
  
 ARTICLE XI 
  
 MISCELLANEOUS 
  
 Section 11.1. Amendments, Waivers, Etc. 
  
 (a) Any amendments or waivers of any provision of this Agreement or any other Loan Document shall be made, or consent to any departure by any Loan Party therefrom shall be given, in accordance with Section 10.1 of the
Priorities Intercreditor Agreement. 
  
 (b) The Facility Agents
may, but shall have no obligation to, with the written concurrence of any Lender, execute amendments, modifications, waivers or consents on behalf of that Lender. Any waiver or consent shall be effective only in the specific instance and for the
specific purpose for which it was given. No notice to or demand on the Borrowers in any case shall entitle the Borrowers to any other or further notice or demand in similar or other circumstances. 
  
 (c) In connection with any proposed amendment, modification, waiver or
termination (a “Proposed Change”) requiring the consent of all Lenders, the consent of Requisite Lenders is obtained, but the consent of other Lenders whose consent is required is not obtained (any such Lender whose consent
is not obtained as described in this Section 11.1 being referred to as a “Non-Consenting Lender”), then, so long as the Lender that is acting as a Facility Agent is not a Non-Consenting Lender, at the Borrowers’ request,
the Facility Agent (in its capacity as a Lender) or an Eligible Assignee that is acceptable to the Facility Agent shall have the right with such Facility Agent’s consent and in the Facility Agent’s sole discretion (but shall have no
obligation) to purchase from such Non-Consenting Lender, and such Non-Consenting Lender agrees that it shall, upon such Facility Agent’s request, sell and assign to the Facility Agent (in its capacity as a Lender) or such Eligible Assignee, all
of the Commitments, Term Loans and Revolving Credit Outstandings of such Non-Consenting Lender for an amount equal to the principal balance of all Term Loans and Revolving Loans held by the Non-Consenting Lender and all accrued interest and fees
with respect thereto through the date of sale, such purchase and sale to be consummated pursuant to an executed Assignment and Acceptance. 
  
 (d) In connection with any proposed amendment, modification or waiver of Section 5.1, Section 5.2 or Section 5.3 as in effect on the Amendment Closing
Date, the approval of any such amendment, modification or waiver of such sections shall require (i) in the case of a breach of a financial covenant in respect of the Senior A Term Facility or Revolving Credit Facility, only the consent of the
Requisite Senior Lenders and (ii) in the case of a breach of a financial covenants in respect of the Senior B Term Facility, only the consent of the Requisite Term B Lenders. 
  

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 Section 11.2. Assignments, Participations, Additional Borrowers and Additional Loan
Parties. 
  
 (a) Each Lender may sell, transfer,
negotiate or assign to one or more Eligible Assignees all or a portion of its rights and obligations hereunder (including all of its rights and obligations with respect to the Term Loans, the Revolving Loans and the Letters of Credit); provided,
however, that (i) (A) if any such assignment shall be of the assigning Lender’s Revolving Credit Outstandings and Revolving Credit Commitment, such assignment shall cover the same percentage of such Lender’s Revolving Credit
Outstandings and Revolving Credit Commitment, and (B) if any such assignment shall be of the assigning Lender’s Term Loans and Term Loan Commitment, such assignment shall cover the same percentage of such Lender’s Term Loans and Term Loan
Commitment, (ii) no assignment shall be effected if, as a consequence of that assignment, the combined Commitments of a Lender (aggregating the interests of all related Funds as though the interests were of a single Fund so that individual Approved
Funds may have Total Commitments of less than $2,500,000 if the Total Commitments for all related Funds together are at least $2,500,000) would be less than the Dollar Equivalent $2,500,000, (iii) such assignment shall be subject to the prior
consent of the Applicable Facility Agent and, in the case of Revolving Loans and Letters of Credit, the prior consent of each Issuer. 
  
 (b) The parties to each assignment shall execute and deliver to the Applicable Facility Agent, for its acceptance and recording, an Assignment and
Acceptance, together with any Note (if the assigning Lender’s Loans are evidenced by a Note) subject to such assignment. Upon such execution, delivery, acceptance and recording and the receipt by the Applicable Facility Agent from the assignee
of an assignment fee in the amount of $3,500 from and after the effective date specified in such Assignment and Acceptance, (i) the assignee thereunder shall become a party hereto and, to the extent that rights and obligations under the Loan
Documents have been assigned to such assignee pursuant to such Assignment and Acceptance, have the rights and obligations of a Lender, and if such Lender were an Issuer, of such Issuer hereunder and thereunder, and (ii) the assignor thereunder
shall, to the extent that rights and obligations under this Agreement have been assigned by it pursuant to such Assignment and Acceptance, relinquish its rights (except those which survive the payment in full of the Obligations) and be released from
its obligations under the Loan Documents, other than those relating to events or circumstances occurring prior to such assignment (and, in the case of an Assignment and Acceptance covering all or the remaining portion of an assigning Lender’s
rights and obligations under the Loan Documents, such Lender shall cease to be a party hereto). 
  
 (c) Each Facility Agent shall maintain at its address referred to in Section 11.8 a copy of each Assignment and Acceptance delivered to and accepted by
it and a register for the recording of the names and addresses of the Lenders and the Commitments of and principal amount of the Loans and Letter of Credit Obligations owing to each Lender from time to time (the “Register”).
The entries in the Register shall be conclusive and binding for all purposes, absent manifest error, and the Loan 
  

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 Parties, the Facility Agents and the Lenders may treat each Person whose name is recorded in the Register as a Lender for
all purposes of this Agreement. The Register shall be available for inspection by the Borrowers, the Facility Agents or any Lender at any reasonable time and from time to time upon reasonable prior notice. 
  
 (d) Upon its receipt of an Assignment and Acceptance executed by an
assigning Lender and an assignee, the Applicable Facility Agent shall, if such Assignment and Acceptance has been completed, (i) accept such Assignment and Acceptance, (ii) record the information contained therein in the Register and (iii) give
prompt notice thereof to the Borrowers. Within five Business Days after its receipt of such notice, the Borrowers, at their own expense, shall, if requested by such assignee, execute and deliver to the Applicable Facility Agent, new Notes to the
order of such assignee in an amount equal to the Commitments and Term Loans assumed by it pursuant to such Assignment and Acceptance and, if the assigning Lender has surrendered any Note for exchange in connection with the assignment and has
retained Commitments or Term Loans hereunder, new Notes to the order of the assigning Lender in an amount equal to the Commitments and Term Loans retained by it hereunder. Such new Notes shall be dated the same date as the surrendered Notes and be
in substantially the form of Exhibit B-1, B-2 or B-3 hereto, as applicable. 
  
 (e) In addition to the other assignment rights provided in this Section 11.2, each Lender may assign, as collateral or otherwise, any of its rights under
this Agreement (including rights to payments of principal or interest on the Loans) to (i) any Federal Reserve Bank pursuant to Regulation A of the Federal Reserve Board without notice to or consent of the Borrowers or the Facility Agents and (ii)
any trustee for the benefit of the holders of such Lender’s Securities; provided, however, that no such assignment shall release the assigning Lender from any of its obligations hereunder. 
  
 (f) Each Lender may sell participations to one or more Persons in or to all
or a portion of its rights and obligations under the Loan Documents (including all its rights and obligations with respect to the Term Loans, Revolving Loans and Letters of Credit). The terms of such participation shall not, in any event, require
the participant’s consent to any amendments, waivers or other modifications of any provision of any Loan Documents, the consent to any departure by any Loan Party therefrom, or to the exercising or refraining from exercising any powers or
rights which such Lender may have under or in respect of the Loan Documents (including the right to enforce the obligations of the Loan Parties), except if any such amendment, waiver or other modification or consent would (i) reduce the amount, or
postpone any date fixed for, any amount (whether of principal, interest or fees) payable to such participant under the Loan Documents, to which such participant would otherwise be entitled under such participation or (ii) result in the release of
all or substantially all of the Collateral other than in accordance with Section 10.7(b). In the event of the sale of any participation by any Lender, (A) such Lender’s obligations under the Loan Documents shall remain unchanged, (B) such
Lender shall remain solely responsible to the other parties for the performance of such obligations, (C) such Lender shall remain the holder of such Obligations for all purposes of this 
  

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 Agreement, and (D) the Borrowers, the Facility Agents and the other Lenders shall continue to deal solely and directly
with such Lender in connection with such Lender’s rights and obligations under this Agreement. Each participant shall be entitled to the benefits of Section 2.15(d), Section 2.16 and Section 2.17 as if it were a Lender; provided,
however, that anything herein to the contrary notwithstanding, the Borrowers shall not, at any time, be obligated to pay to any participant of any interest of any Lender, under Section 2.15(d), Section 2.16 or Section 2.17, any sum in excess of
the sum which the Borrowers would have been obligated to pay to such Lender in respect of such interest had such participation not been sold. 
  
 (g) Any Issuer may at any time assign its rights and obligations hereunder to any other Lender by an instrument in form and substance satisfactory to the
Borrower, the Facility Agents, such Issuer and such Lender. If any Issuer ceases to be a Lender hereunder by virtue of any assignment made pursuant to this Section 11.2, then, as of the effective date of such cessation, such Issuer’s
obligations to issue Letters of Credit pursuant to Section 2.4 shall terminate and such Issuer shall be an Issuer hereunder only with respect to outstanding Letters of Credit issued prior to such date. 
  
 (h) If (i) a Lender or Issuer sells, transfers, negotiates or assigns any of
its rights or obligations hereunder or changes its Lending Office and (ii) as a result of circumstances existing on the date of such sale, transfer, negotiation, assignment or change occurs, a Borrower would be obligated to make a payment to a
Lender or new Lender or an Issuer or new Issuer acting through its Lending Office under Section 2.15(c), Section 2.15(d), Section 2.16 or Section 2.17, then such Lender or new Lender or Issuer or new Issuer acting through its new Lending Office
shall only be entitled to receive payments under Section 2.15(c), Section 2.15(d), Section 2.16 or Section 2.17,, to the same extent the existing Lender or Issuer would have been so entitled had the sale, transfer, negotiation, assignment or change
not occurred. 
  
 (i) The Applicable Memec Parent may request
that any of its wholly-owned Subsidiaries becomes an Additional Borrower. That Subsidiary shall become an Additional Borrower if: 
  
 (i) all the Lenders approve the addition of that Subsidiary as an Additional Borrower; 
  
 (ii) the Applicable Memec Parent delivers to the Facility
Agents a duly completed and executed Accession Agreement; 
  
 (iii) the Applicable Memec Parent confirms that no Default is continuing or would occur as a result of that Subsidiary becoming an Additional Borrower; 
  
 (iv) the Facility Agents have received all of the documents and other evidence listed in Section 3.1 and
Section 3.2 in relation to that Additional Borrower, including such legal opinions in respect of such Additional Borrower as the Facility Agents may reasonably require, each in form and substance reasonably satisfactory to the Facility Agents; and

  

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 (v) the Facility Agents shall have notified the Applicable Memec Parent and the Lenders
promptly upon being satisfied that they have received (in form and substance satisfactory to it) all the documents and other evidence listed in Section 3.1 and Section 3.2 in relation to that Additional Borrower. 
  
 (j) The Applicable Memec Parent may request that any member of the Group
becomes an Additional Loan Party. That member of the Group shall become an Additional Loan Party if: 
  
 (i) all the Lenders approve the addition of that member of the Group as an Additional Loan Party; 
  
 (ii) the Applicable Memec Parent delivers to the Facility Agents a duly
completed and executed Accession Agreement; 
  
 (iii) the
Applicable Memec Parent confirms that no Default is continuing or would occur as a result of that member of the Group becoming an Additional Loan Party; 
  
 (iv) the Facility Agents have received all of the documents and other evidence listed in Section 3.1 and Section 3.2 in relation to that Additional Loan
Party, including such legal opinions in respect of such Additional Loan Party as the Facility Agents may reasonably require, each in form and substance reasonably satisfactory to the Facility Agents; and 
  
 (v) the Facility Agents shall have notified the Applicable Memec Parent and
the Lenders promptly upon being satisfied that they have received (in form and substance satisfactory to it) all the documents and other evidence listed in Section 3.1 and Section 3.2 in relation to that Additional Loan Party. 
  
 Section 11.3. Costs and Expenses. 
  
 (a) The Borrowers agree upon demand to pay, or reimburse each Facility
Agent for, all of such Facility Agent’s reasonable external audit, legal, appraisal, valuation, filing, document duplication and reproduction and investigation expenses and for all other reasonable out-of-pocket costs and expenses of every type
and nature (including the reasonable fees, expenses and disbursements of such Facility Agent’s counsel, Weil, Gotshal & Manges LLP, local legal counsel, auditors, accountants, appraisers, printers, insurance and environmental advisers, and
other consultants and agents) incurred by such Facility Agent in connection with (i) such Facility Agent’s audit and investigation of the Group in connection with the preparation, negotiation and execution of the Loan Documents and such
Facility Agent’s and the Collateral Agent’s periodic audits of the Group and the Collateral, as the case may be; (ii) the preparation, negotiation, execution and interpretation of this Agreement (including the satisfaction or attempted
satisfaction of any of the conditions set forth in Article III), the Loan Documents and any proposal letter or 
  

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 commitment letter issued in connection therewith and the making of the Loans hereunder; (iii) the creation, perfection or
protection of the Liens under the Loan Documents (including any reasonable fees and expenses for local counsel in various jurisdictions); (iv) the ongoing administration of this Agreement and the Loans, including consultation with attorneys in
connection therewith and with respect to such Facility Agent’s rights and responsibilities hereunder and under the other Loan Documents; (v) the preservation of any of the rights of such Facility Agent, the Issuers and the Lenders under any of
the Loan Documents and (vi) any amendments, consents, waivers, assignments, restatements, or supplements to any of the Loan Documents and the preparation, negotiation, and execution of the same. 
  
 (b) The Borrowers further agree, jointly and severally, to pay or reimburse
each Facility Agent and each of the Lenders and Issuers upon demand for all out-of-pocket costs and expenses, including reasonable attorneys’ fees incurred by such Facility Agent, such Lenders or Issuers (i) in enforcing any Loan Document or
Obligation or any security therefor or exercising or enforcing any other right or remedy available by reason of an Event of Default; (ii) in connection with any refinancing or restructuring of the credit arrangements provided hereunder in the nature
of a “work-out” or in any insolvency or bankruptcy proceeding; (iii) in commencing, defending or intervening in any litigation or in filing a petition, complaint, answer, motion or other pleadings in any legal proceeding
relating to the Obligations, any Loan Party or any other Group Member and related to or arising out of the transactions contemplated hereby or by any of the other Loan Documents or Related Documents; and (iv) in taking any other action in or with
respect to any suit or proceeding (bankruptcy or otherwise) described in clauses (i) through (iii) above. 
  
 Section 11.4. Indemnities. 
  
 (a) The Borrowers agree to indemnify and hold harmless each Facility Agent, the Collateral Agent, each Lender and each Issuer and each of their
respective Affiliates, and each of the directors, officers, employees, agents, representative, attorneys, consultants and advisors of or to any of the foregoing (including those retained in connection with the satisfaction or attempted satisfaction
of any of the conditions set forth in Article III) (each such Person being an “Indemnitee”) from and against any and all claims, damages, liabilities, obligations, losses, penalties, actions, judgments, suits and reasonable
costs, disbursements and expenses of any kind or nature (including reasonable fees and disbursements of counsel to any such Indemnitee) which may be imposed on, incurred by or asserted against any such Indemnitee in connection with or arising out of
any investigation, litigation or proceeding, whether or not any such Indemnitee is a party thereto, whether direct, indirect, or consequential and whether based on any federal, state or local law or other statutory regulation, securities or
commercial law or regulation, or under common law or in equity, or on contract, tort or otherwise, in any manner relating to or arising out of this Agreement, any other Loan Document, any Obligation, any Letter of Credit, any Related Document, or
any act, event or transaction related or attendant to any thereof, or the use or intended use of the proceeds of the Loans or Letters of Credit or in connection with any investigation of any potential matter covered hereby, including the arrangement
and syndication of the 
  

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 Facilities (collectively, the “Indemnified Matters”); provided, however, that the
Borrowers shall not have any obligation under this Section 11.4 to an Indemnitee with respect to any Indemnified Matter caused by or resulting from the gross negligence or willful misconduct of that Indemnitee, as determined by a court of competent
jurisdiction in a final non-appealable judgment or order. Without limiting the foregoing, Indemnified Matters include (i) all Environmental Liabilities and Costs arising from or connected with the past, present or future operations of any Group
Member involving any property subject to a Collateral Document, or damage to real or personal property or natural resources or harm or injury alleged to have resulted from any Release of Contaminants on, upon or into such property or any contiguous
real estate; (ii) any costs or liabilities incurred in connection with any Remedial Action concerning any Group Member; (iii) any costs or liabilities incurred in connection with any Environmental Lien; (iv) any costs or liabilities incurred in
connection with any other matter under any Environmental Law, including CERCLA and applicable state property transfer laws, whether, with respect to any of such matters, such Indemnitee is a mortgagee pursuant to any leasehold mortgage, a mortgagee
in possession, the successor in interest to any Group Member, or the owner, lessee or operator of any property of any Group Member by virtue of foreclosure, except, with respect to those matters referred to in clauses (i), (ii), (iii) and (iv)
above, to the extent incurred following (A) foreclosure by the such Facility Agents, any Lender or any Issuer, or either Facility Agent, any Lender or any Issuer having become the successor in interest to any Group Member, and (B) attributable
solely to acts of such Facility Agent, such Lender or such Issuer or any agent on behalf of such Facility Agent or such Lender. 
  
 (b) The Borrowers shall indemnify the Facility Agents, the Collateral Agent, the Lenders and each Issuer for, and hold the Facility Agents, the
Collateral Agent, the Lenders and each Issuer harmless from and against, any and all claims for brokerage commissions, fees and other compensation made against the Facility Agents, the Collateral Agent, the Lenders and the Issuers for any broker,
finder or consultant with respect to any agreement, arrangement or understanding made by or on behalf of any Loan Party or any other Group Member in connection with the transactions contemplated by this Agreement. 
  
 (c) Each Facility Agent, each Lender and each Issuer agree that in the event
that any such investigation, litigation or proceeding set forth in clause (b) above is asserted or threatened in writing or instituted against it or any other Indemnitee, or any Remedial Action, is requested of it or any of its officers, directors,
Facility Agents and employees, for which any Indemnitee may desire indemnity or defense hereunder, such Indemnitee shall promptly notify the Borrowers in writing. 
  
 (d) The Borrower, at the request of any Indemnitee, shall have the obligation to defend against such investigation,
litigation or proceeding or requested Remedial Action and the Borrowers, in any event, may participate in the defense thereof with legal counsel of the Borrowers’ choice. In the event that such Indemnitee requests the Borrower to defend against
such investigation, litigation or proceeding or requested Remedial Action, the Borrowers shall promptly do so and such Indemnitee shall have the right to have legal counsel of its choice participate in such defense. No 
  

 146 

 action taken by legal counsel chosen by such Indemnitee in defending against any such investigation, litigation or
proceeding or requested Remedial Action, shall vitiate or in any way impair the Borrowers’ obligation and duty hereunder to indemnify and hold harmless such Indemnitee. 
  
 (e) The Borrowers agree that any indemnification or other protection provided to any Indemnitee pursuant to this Agreement
(including pursuant to this Section 11.4) or any other Loan Document shall (i) survive payment in full of the Obligations and (ii) inure to the benefit of any Person who was at any time an Indemnitee under this Agreement or any other Loan Document.

  
 Section 11.5. Limitation of Liability. The
Borrowers agree that no Indemnitee shall have any liability (whether direct or indirect, in contract, tort or otherwise) to any Loan Party or any of their respective Subsidiaries or any of their equity holders or creditors for or in connection with
the transactions contemplated hereby and in the other Loan Documents and Related Documents, except to the extent such liability is found in a final judgment by a court of competent jurisdiction to have resulted from such Indemnitee’s gross
negligence or willful misconduct. In no event, however, shall any Indemnified Party be liable on any theory of liability for any special, indirect, consequential or punitive damages and each Loan Party, on its own behalf and on behalf of the other
Group Members, hereby waives, releases and agrees (for itself and on behalf of its Subsidiaries) not to sue upon any such claim for any such damages, whether or not accrued and whether or not known or suspected to exist in its favor. 
  
 Section 11.6. Right of Set-off. Upon the occurrence and during
the continuance of any Event of Default each Lender and each Affiliate of a Lender is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or
demand, provisional or final) at any time held and other indebtedness at any time owing by such Lender or its Affiliates to or for the credit or the account of the Borrowers against any and all of the Obligations now or hereafter existing whether or
not such Lender shall have made any demand under this Agreement or any other Loan Document and although such Obligations may be unmatured. Each Lender agrees promptly to notify the Borrowers after any such set-off and application made by such Lender
or its Affiliates; provided, however, that the failure to give such notice shall not affect the validity of such set-off and application. The rights of each Lender under this Section 11.6 are in addition to the other rights and remedies
(including other rights of set-off) which such Lender may have. 
  
 Section 11.7. Sharing of Payments, Etc. 
  
 (a) If any Lender shall obtain any payment (whether voluntary, involuntary, through the exercise of any right of set-off or otherwise) on account of any Loans made by it (other than pursuant to Section 2.15, Section 2.16 or Section 2.17) in
excess of its Ratable Portion of payments obtained by all the Lenders on account of such Obligations, such Lender (a “Purchasing Lender”) shall forthwith purchase from the other Lenders (each, a “Selling
Lender”) such participations in their Loans or other Obligations as shall be necessary to cause such Purchasing Lender to share the excess payment ratably with each of them. 
  

 147 

 (b) If all or any portion of any payment received by a Purchasing Lender is thereafter recovered from
such Purchasing Lender, such purchase from each Selling Lender shall be rescinded and such Selling Lender shall repay to the Purchasing Lender the purchase price to the extent of such recovery together with an amount equal to such Selling
Lender’s ratable share (according to the proportion of (i) the amount of such Selling Lender’s required repayment to (ii) the total amount so recovered from the Purchasing Lender) of any interest or other amount paid or payable by the
purchasing Lender in respect of the total amount so recovered. 
  
 (c) The Borrowers agree that any Purchasing Lender so purchasing a participation from a Selling Lender pursuant to this Section 11.7 may, to the fullest extent permitted by law, exercise all its rights of payment (including the right of
set-off) with respect to such participation as fully as if such Lender were the direct creditor of the Borrowers in the amount of such participation. 
  
 Section 11.8. Notices, Etc. All notices, demands, requests and other communications provided for in this Agreement shall be given in
writing, or by any telecommunication device capable of creating a written record, and addressed to the party to be notified as follows: 
  
 (a) if to any Borrower: 
  
 Memec Group Holdings Limited 
 17 Thame Park
Road 
 Thame, Oxfordshire OX9 3XD 
 Attention:        Group Treasurer 
 Telecopy no:    (011+44)
1844-261-683 
  
 (b) if to any Lender, at the notice address
specified opposite its name on Schedule II or on the signature page of any applicable Assignment and Acceptance; 
  
 (c) if to any Issuer, at the address set forth under its name on Schedule II; and 
  
 (d) if to the Senior A Facility Agent: 
  
 J.P. Morgan Europe Limited 
 125 London Wall 
 London, England EC2Y 5AJ 
 Attention:        Caroline Walsh 
 Telecopy no:    (011+44) 207-777-2360 
  

 148 

 with a copy to: 
  

JPMorgan Chase Bank 
 125 London Wall

 London, England EC2Y 5AJ 
 Attention:        Supriya Saxena 
 Telecopy no:    (011+44)
207-777-4548 
  
 and 
  
 (e) if to the Senior B Facility Agent 
  
 Barclays Bank PLC 
 Global Loans and Syndications-Agency Division 
 7th Floor 
 5 The North Colonnade 
 Canary Wharf 
 London, England E14 4BB 
 Attention:        Antony Girling 
 Telecopy no:    (011+44) 207-773-4893 
  
 or at such other address as shall be notified in writing (i) in the case of the Applicable Memec Parent and the Applicable Facility Agent, to the other parties and (ii) in the case of all other parties, to the
Applicable Memec Parent and the Applicable Facility Agent. All such notices and communications shall be effective upon personal delivery (if delivered by hand, including any overnight courier service), when deposited in the mails (if sent by mail),
or when properly transmitted (if sent by a telecommunications device); provided, however, that notices and communications to the Applicable Facility Agent pursuant to Article II or X shall not be effective until received by the Applicable
Facility Agent. Any notice to be given to any Borrower or to any Loan Party pursuant to any Loan Document shall be given to the Applicable Memec Parent, and if given to the Applicable Memec Parent in the manner set forth in this Section 11.8 such
notice shall be deemed to be effective notice to all Borrowers and all Loan Parties, as the case may be. 
  
 Section 11.9. No Waiver; Remedies. No failure on the part of any Lender, Issuer or Facility Agent to exercise, and no delay in exercising,
any right hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any such right preclude any other or further exercise thereof or the exercise of any other right. The remedies herein provided are cumulative and not
exclusive of any remedies provided by law. 
  
 Section 11.10.
Binding Effect. This Agreement shall become effective when it shall have been executed by the Borrowers and the Facility Agents and when the Facility Agents shall have been notified by each Lender that such Lender has executed it and
thereafter shall be binding upon and inure to the benefit of the Borrowers, the Facility Agents and each Lender and their respective successors and assigns, except that the Borrowers shall not have the right to assign their rights hereunder or any
interest herein without the prior written consent of the Lenders. 
  

 149 

 Section 11.11. Governing Law. This Agreement and the rights and obligations of the parties
hereto shall be governed by, and construed and interpreted in accordance with, the law of the State of New York. 
  
 Section 11.12. Submission to Jurisdiction; Service of Process. 
  
 (a) Any legal action or proceeding with respect to this Agreement or any other Loan Document may be brought in the courts
of the State of New York or of the United States of America for the Southern District of New York, and, by execution and delivery of this Agreement, the Borrowers hereby accept for themselves and in respect of their property, generally and
unconditionally, the jurisdiction of the aforesaid courts. The parties hereto hereby irrevocably waive any objection, including any objection to the laying of venue or based on the grounds of forum non conveniens, which any of them may now or
hereafter have to the bringing of any such action or proceeding in such respective jurisdictions. 
  
 (b) Each Borrower hereby irrevocably designates, appoints and empowers CT Corporation, 111 Eighth Avenue, New York, New York 10011 (telephone no: (212)
894-8440) (telecopy no: (212) 894-8790) (the “Process Agent”), in the case of any suit, action or proceeding brought in the United States of America as its designee, appointee and agent to receive, accept and acknowledge for
and on its behalf, and in respect of its property, service of any and all legal process, summons, notices and documents that may be served in any action or proceeding arising out of or in connection with this Agreement or any Loan Document. Such
service may be made by mailing (by registered or certified mail, postage prepaid) or delivering a copy of such process to such Borrower in care of the Process Agent at the Process Agent’s above address, and each Borrower hereby irrevocably
authorizes and directs the Process Agent to accept such service on its behalf. As an alternative method of service, each Borrower irrevocably consents to the service of any and all process in any such action or proceeding by the mailing (by
registered or certified mail, postage prepaid) of copies of such process to the Process Agent or such Borrower at its address specified in Section 11.8. Each Borrower agrees that a final judgment in any such action or proceeding shall be conclusive
and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. 
  
 (c) Nothing contained in this Section 11.12 shall affect the right of either Facility Agent or any Lender to serve process in any other manner permitted
by law or commence legal proceedings or otherwise proceed against any Borrower or any other Loan Party in any other jurisdiction. 
  
 (d) If for the purposes of obtaining judgment in any court it is necessary to convert a sum due hereunder in Dollars into another currency, the parties
hereto agree, to the fullest extent that they may effectively do so, that the rate of exchange used shall be that at which in accordance with normal banking procedures the Applicable Facility Agent could purchase Dollars with such other currency at
the spot rate of exchange quoted by such Applicable Facility Agent at 11:00 A.M. (London time) on the Business Day preceding that on which final judgment is given, for the purchase of Dollars, for delivery two Business Days thereafter. 

 

 150 

 Section 11.13. Waiver of Jury Trial. EACH OF THE FACILITY AGENTS, THE LENDERS, THE ISSUERS AND
BORROWERS IRREVOCABLY WAIVES TRIAL BY JURY IN ANY ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT. 
  
 Section 11.14. Marshaling; Payments Set Aside. None of the Facility Agents, any Lender or any Issuer shall be under any obligation to
marshal any assets in favor of the Borrowers or any other party or against or in payment of any or all of the Obligations. To the extent that any Borrower makes a payment or payments to the Facility Agents, the Lenders or the Issuers or any of such
Persons receives payment from the proceeds of the Collateral or exercise their rights of setoff, and such payment or payments or the proceeds of such enforcement or setoff or any part thereof are subsequently invalidated, declared to be fraudulent
or preferential, set aside or required to be repaid to a trustee, receiver or any other party, then to the extent of such recovery, the obligation or part thereof originally intended to be satisfied, and all Liens, right and remedies therefor, shall
be revived and continued in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred. 
  
 Section 11.15. Section Titles. The Section titles contained in this Agreement are and shall be without substantive meaning or content of
any kind whatsoever and are not a part of the agreement between the parties hereto. 
  
 Section 11.16. Execution in Counterparts. This Agreement may be executed in any number of counterparts and by different parties in separate counterparts, each of which when so executed shall be deemed to
be an original and all of which taken together shall constitute one and the same agreement. Signature pages may be detached from multiple separate counterparts and attached to a single counterpart so that all signature pages are attached to the same
document. 
  
 Section 11.17. Entire Agreement. This
Agreement, together with all of the other Loan Documents and all certificates and documents delivered hereunder or thereunder, embodies the entire agreement of the parties and supersedes all prior agreements and understandings relating to the
subject matter hereof. Delivery of an executed signature page of this Agreement by facsimile transmission shall be as effective as delivery of a manually executed counterpart hereof. A set of the copies of this Agreement signed by all parties shall
be lodged with the Applicable Memec Parent and the Facility Agents. 
  
 Section 11.18. Confidentiality. 
  
 (a)
Each Lender, each Issuer and each Facility Agent agree to keep information obtained by it pursuant hereto and the other Loan Documents confidential in accordance with such Lender’s, such Issuer’s or the such Facility Agent’s, as the
case may be, customary practices and agrees that it will only use such information in connection with the transactions contemplated by this Agreement and not disclose any of such information other than (a) to such Lender’s or such Facility
Agent’s, as the case may be, employees, representatives and agents who are or are expected to be 
  

 151 

 involved in the evaluation of such information in connection with the transactions contemplated by this Agreement and who
are advised of the confidential nature of such information, (b) to the extent such information presently is or hereafter becomes available to such Lender or such Facility Agent, as the case may be, on a non-confidential basis from a source other
than a Borrower, (c) to the extent disclosure is required by law, regulation or judicial order or requested or required by bank regulators or auditors, or (d) to assignees or participants or potential assignees or participants or any actual or
potential counterparty (or its advisors) to any swap or derivative transaction relating to the Borrowers and their obligations, who agree to be bound by the provisions of this Section 11.18. 
  
 (b) The Borrowers agree that the terms of this Agreement will not be
disclosed by them to any Person (other than their direct and indirect shareholders, officers, directors, employees, accountants, attorneys and other advisers and on a confidential basis). Notwithstanding the foregoing, (i) the Borrowers may file a
copy of this Agreement (provided, however, that they do not file documents containing the fees set out herein or in the Fee Letters) in any public record in which it is required by law to be filed and (ii) the Borrowers may make such other
public disclosures of the terms and conditions of this Agreement as they are required by law or by regulation to make or as may be necessary in connection with any legal proceedings relating to this Agreement. 
  
 (c) The Borrowers acknowledge and agree that the Facility Agents, the
Collateral Agent, the Arrangers and the Lenders, and any of their respective subsidiaries, affiliates or parent undertakings (each an “Underwriting Entity”) may be providing financing or other services to other Persons with
whom you may have conflicting interests in respect of the Facilities or otherwise. None of the Underwriting Entities will furnish confidential information obtained from you to any of its other customers or other Underwriting Entities (save in the
case of any such other Underwriting Entity on a “need to know” basis but subject to complying with the Chinese wall rules then applied by the relevant Underwriting Entities when transacting in a potentially conflicting
situation) and no Underwriting Entity will use such confidential information in connection with its services for any other customer. Equally, none of the Underwriting Entities will make available to you confidential information that it obtained or
may obtain from any other customer. 
  
 Section 11.19. Loss
Sharing. 
  
 (a) Notification. Not later
than five Business Days after the Enforcement Date, the Senior A Facility Agent shall prepare an Enforcement Date Notice and send one copy to each Lender. 
  
 (b) Contents of Enforcement Date Notice. The Enforcement Date Notice shall set out: (i) the proportion which the Commitments of each Lender
under the Facilities at the Enforcement Date bears to the total Commitments of all the Lenders at the Enforcement Date; (ii) the proportion which the Revolving Credit Outstandings and Term Loan Outstandings of each Lender at the Enforcement Date
bears to the Revolving Credit Outstandings and Term Loan Outstandings of all the Lenders at the Enforcement Date; (iii) the amount in Dollars required to be paid or 
  

 152 

 received by each Lender in order to ensure that its proportion referred to in the foregoing clause (ii) will be the same
as its proportion referred to in the foregoing clause (i). 
  
 (c) Adjustment. Where Facilities or Indebtedness are not denominated in Dollars, the amounts shall be notionally converted into Dollars at the spot selling rate of the Senior A Facility Agent for the sale of Dollars for the
other currency concerned, in similar amounts on the Enforcement Date. 
  
 (d) Payments. 
  
 (i)
Promptly upon receipt of an Enforcement Date Notice showing a payment (an “equalization payment”) due from it as specified in clause (b) of this Section 11.19, the recipient Lender shall pay or cause to be paid to the Senior
A Facility Agent in Dollars the full amount of the payment. 
  
 (ii) The Senior A Facility Agent shall, as soon as practicable out of the aggregate of monies paid to it under the foregoing clause (i), make payments to each Lender entitled to a credit pursuant to the Equalization
Notice (an “equalization credit”) due to it, of the amount of the equalization credit. 
  
 (e) Application of Equalization Credits. 
  
 (i) Where any Lender receives an equalization credit, it shall not apply the whole or any part of it in or towards satisfaction of the
relevant Indebtedness but shall instead place the funds on a suspense account unless otherwise agreed by all the Lenders. 
  
 (ii) Equalization credits are payments only between the Secured Parties and shall not reduce, discharge or otherwise affect, or be deemed
to reduce, discharge or otherwise affect, any Indebtedness owing by any Loan Party to any Secured Party. 
  
 [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK] 
  

 153 

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

			
	MEMEC GROUP HOLDINGS LIMITED
		
	By:	 	 /s/ D. M. ASHWORTH

	Title:	 	CEO
	
	MEMEC HOLDINGS LIMITED
		
	By:	 	 /s/ DOUG LINDROTH

	Title:	 	CFO
	
	MEMEC GROUP LIMITED
		
	By:	 	 /s/ E. KRAWITT

	Title:	 	Group Treasurer

  

 SIGNATURE PAGE 1 OF 3 TO 
 AMENDED AND RESTATED CREDIT AGREEMENT 

			
	J.P. MORGAN PLC
	
	as Mandated Lead Arranger
		
	By:	 	 /s/ [ILLEGIBLE]

	Title:	 	 
	
	JPMORGAN CHASE BANK
	
	as a Revolving Credit Lender, as a Term A Loan Lender and as an Issuer
		
	By:	 	 /s/ [ILLEGIBLE]

	Title:	 	 
	
	J.P. MORGAN EUROPE LIMITED
	
	as Senior A Facility Agent
		
	By:	 	 /s/ [ILLEGIBLE]

	Title:	 	 
	
	JPMORGAN CHASE BANK
	
	as Collateral Agent
		
	By:	 	 /s/ [ILLEGIBLE]

	Title:	 	 

  

 SIGNATURE PAGE 2 OF 3 TO 
 AMENDED AND RESTATED CREDIT AGREEMENT 

			
	BARCLAYS CAPITAL,
	the investment banking division of Barclays Bank PLC
	
	as Mandated Lead Arranger
		
	By:	 	 /s/ [ILLEGIBLE]

	Title:	 	Director
	
	BARCLAYS BANK PLC
	
	as a Term B Loan Lender
		
	By:	 	 /s/ [ILLEGIBLE]

	Title:	 	Director
	
	BARCLAYS BANK PLC
	
	as Senior B Facility Agent
		
	By:	 	 /s/ [ILLEGIBLE]

	Title:	 	Director
	
	BARCLAYS CAPITAL,
	the investment banking division of Barclays Bank PLC
	
	as Syndication Agent
		
	By:	 	 /s/ [ILLEGIBLE]

	Title:	 	Director

  

 SIGNATURE PAGE 3 OF 3 TO 
 AMENDED AND RESTATED CREDIT AGREEMENT 

 SCHEDULE I TO 
 AMENDED AND RESTATED CREDIT AGREEMENT 
  
 Commitments of Lenders 
  
 amended as of May 5, 2004 
  
 (Term Loan Commitments
reflect outstanding Term Loans on such date) 
  

													
	 Lender

	  	Revolving
Credit
Commitment

	  	Alternative
Currency
Commitment
for Revolving
Loans

	 	Term Loan A
Commitment

	  	Term Loan B
Commitment

	 JPMorgan Chase Bank
	  	$	50,000,000	  	$	30,000,0001	 	$	50,000,000	  	$	50,000,000
	 Barclays Bank PLC
	  	$	50,000,000	  	$	30,000,0001	 	$	50,000,000	  	$	50,000,000
	 	  	
	
	  	
	
	 	
	
	  	
	

	 Total
	  	$	100,000,000	  	$	60,000,000	 	$	100,000,000	  	$	100,000,000
	 	  	
	
	  	
	
	 	
	
	  	
	

	1	Available in all Alternative Currencies 

	2	Available in Sterling/Euro 

  

 SCHEDULE I TO 
 AMENDED AND RESTATED CREDIT AGREEMENT 

 SCHEDULE II TO 
 AMENDED AND RESTATED CREDIT AGREEMENT 
  
 Lending Offices and Addresses of Lenders 
  

			
	JPMorgan Chase Bank	 	 
		
	Address for Notices	 	JPMorgan Chase Bank
	 	 	125 London Wall
	 	 	London, England EC2Y 5AJ
	 	 	Attention: Supriya Saxena
	 	 	Telecopy no: (011+44) 207-777-4548
		
	 	 	with a copy to:
		
	 	 	J.P. Morgan Europe Limited
	 	 	125 London Wall
	 	 	London, England EC2Y 5AJ
	 	 	Attention: Caroline Walsh
	 	 	Facsimile No. (011+44) 207-777-2360
		
	Lending Office	 	270 Park Avenue
	 	 	New York, New York 10017
		
	Barclays Bank PLC	 	 
		
	Address for Notices	 	Barclays Bank PLC
	 	 	Global Loans and Syndications-Agency Division
	 	 	7th Floor
	 	 	5 The North Colonnade
	 	 	Canary Wharf
	 	 	London, England E14 4BB
	 	 	Attention: Antony Girling
	 	 	Telecopy no: (011+44) 207-773-4893
		
	Lending Office	 	222 Broadway, 8th Floor
	 	 	New York, New York 10038

  

 SCHEDULE II TO 
 AMENDED AND RESTATED CREDIT AGREEMENT 

 SCHEDULE 1.1(a) TO 
 AMENDED AND RESTATED CREDIT AGREEMENT 
  
 Part I – Original Closing Date 
 Collateral Documents 
  

					
	 Jurisdiction

	  	 Document

	  	 Executing Parties

	 United States
	  	Borrower Security Agreement	  	Memec, LLC
			
	 	  	Guarantor Security Agreement	  	 Insight Electronics, LLC
 Unique Semiconductor
Technologies, Inc.
 Impact Semiconductor Technologies, LLC
 Memec
US Holdings, Inc.
 Insight Components (Canada) Inc.

			
	 	  	Intercreditor Agreement	  	 Memec Group Limited
 Memec UK Limited
 Memec, LLC
 Insight Electronics, LLC
 Impact Semiconductor Technologies, LLC
 Unique Semiconductor Technologies,
Inc.

			
	 	  	Guaranty	  	 Memec, LLC
 Insight Electronics, LLC
 Unique Semiconductor Technologies, Inc.
 Impact Semiconductor Technologies,
LLC
 Memec Group Holdings Limited
 Memec Holdings
Limited
 Memec Group Limited
 Memec Overseas Holdings
Limited
 Memec US Holdings, Inc. (formerly known as EAS Holdings, Inc.)
 Memec Europe Limited
 Memec UK Limited
 Thame Properties
Limited
 Memec Ireland Limited
 Memec Electronic Components (AP)
Limited
 Memec GmbH
 Memec Holding B.V.
 Memec Japan KK
 Memec France SAS
 Memec (Asia Pacific) Limited
 Memec AG
 Insight Components (Canada) Inc.
 Memec (Memory and Electronic Components)
Israel Limited

			
	 	  	Guaranty Supplement	  	Memec Pty Limited
			
	 	  	Guaranty Supplement	  	Unique Technology Components Pty Limited

  
 SCHEDULE 1.1(a) TO

 AMENDED AND RESTATED CREDIT AGREEMENT 

					
	Jurisdiction

	  	 Document

	  	 Executing Parties

	 	  	Guaranty Supplement	  	Insight Electronics Pty Limited
			
	 	  	Guaranty Supplement	  	Impact Components Pty Limited (formerly known as Advanced Components Distributors Pty Limited)
			
	United Kingdom	  	Debenture	  	 Memec Group Holdings Limited
 Memec Holdings
Limited
 Memec Group Limited
 Memec Overseas Holdings
Limited
 Memec Europe Limited
 Memec UK Limited
 Thame Properties Limited

			
	 	  	Subordination Agreement	  	 Memec Group Limited
 Memec Holdings
Limited

			
	Germany	  	Share Pledge Agreement	  	Memec Overseas Holdings Limited
			
	 	  	Security Transfer Agreement (machinery)	  	Memec GmbH
			
	 	  	Security Transfer Agreement (inventory/raw materials)	  	Memec GmbH
			
	 	  	Security Transfer Agreement (inventory/raw materials)	  	Memec Europe Limited
			
	 	  	Inter-Group Assignment Agreement	  	Memec GmbH
			
	 	  	Global Assignment Agreement	  	Memec GmbH
			
	France	  	Business Pledge Agreement	  	Memec France SAS
			
	 	  	Agreement for the Pledge of Account of Financial Instruments	  	Memec Overseas Holdings Limited
			
	Hong Kong	  	Debenture	  	Memec (Asia Pacific) Limited
			
	 	  	Debenture	  	Memec Electronic Components (AP) Limited
			
	 	  	Share Security Deed	  	Memec Group Limited
			
	 	  	Share Security Deed	  	Memec Holding B.V.
			
	Japan	  	Share Pledge Agreement	  	Memec Overseas Holdings Limited
			
	 	  	Pledge of Intangible Personal Property	  	Memec Japan KK
			
	 	  	Fiduciary Transfer of Tangible Personal Property	  	Memec Japan KK
			
	The
Netherlands	  	Pledge of Shares	  	Memec Overseas Holdings Limited
			
	Switzerland	  	Share Pledge Agreement over shares in Memec AG	  	Memec Overseas Holdings Limited
			
	 	  	Share Pledge Agreement over shares in Memec Inicore Holding AG	  	Memec Overseas Holdings Limited

  

 2 

					
	 Jurisdiction

	  	 Document

	  	 Executing Parties

	 	  	Share Pledge Agreement over shares in Memec Inicore AG	  	Memec Inicore Holding AG
			
	 	  	General Pledge Agreement	  	Memec AG
			
	 	  	General Pledge Agreement	  	Memec Inicore AG
			
	 	  	General Pledge Agreement	  	Memec Inicore Holding AG
			
	 	  	Assignment of Trade Receivables	  	Memec AG
			
	 Israel
	  	Floating Charge	  	Memec (Memory and Electronic Components) Israel Limited
			
	 	  	Fixed Charge (Shares)	  	Memec Holding B.V.
			
	 	  	Negative Pledge	  	NSD Pty Limited
			
	 Norway
	  	First Priority Pledge of Shares	  	Memec (Memory & Electronic Components) Limited
			
	 Ireland
	  	Debenture	  	Memec Ireland Limited
			
	 Australia
	  	Limited Equitable Mortgage of Shares	  	Memec Holding B.V.
			
	 	  	Limited Equitable Mortgage of Shares	  	Insight Electronics Pty Limited
			
	 	  	Limited Equitable Mortgage of Shares	  	Memec Pty Limited
			
	 	  	Limited Fixed and Floating Charge (Present Assets)	  	Impact Components Pty Limited (formerly known as Advanced Components Distributors Pty Limited)
			
	 	  	Limited Fixed and Floating Charge (Future Assets)	  	Impact Components Pty Limited (formerly known as Advanced Components Distributors Pty Limited)
			
	 	  	Limited Fixed and Floating Charge (Present Assets)	  	Unique Technology Components Pty Limited
			
	 	  	Limited Fixed and Floating Charge (Future Assets)	  	Unique Technology Components Pty Limited
			
	 	  	Limited Fixed and Floating Charge (Present Assets)	  	Insight Electronics Pty Limited
			
	 	  	Limited Fixed and Floating Charge (Future Assets)	  	Insight Electronics Pty Limited
			
	 	  	Limited Fixed and Floating Charge (Present Assets)	  	Memec Pty Limited
			
	 	  	Limited Fixed and Floating Charge (Future Assets)	  	Memec Pty Limited
			
	 	  	Negative Pledge	  	NSD Pty Limited
			
	 	  	Negative Pledge	  	Advanced Components Distributors Pty Limited (formerly known as Impact Components Pty Limited)

  

 3 

 Part II – Amendment Closing Date 
 New Collateral Documents 
  

					
	 Jurisdiction

	  	 Document

	  	 Executing Parties

	 US
	  	Guaranty Supplement	  	Memec Inicore Holding AG
			
	 	  	Guaranty Supplement	  	Memec Inicore AG
			
	 France
	  	“cession Dailly” (French security over commercial receivables)	  	Memec France SAS
			
	 United
 Kingdom
	  	Debenture	  	 Memec Group Holdings Limited
 Memec Overseas Holdings
Limited
 Memec Holdings Limited
 Memec Group Limited

Memec Europe Limited
 Memec UK Limited
 Thame Properties Limited

			
	 Hong Kong
	  	Supplemental Debenture	  	Memec Electronic Components (AP) Limited
			
	 	  	Supplemental Debenture	  	Memec (Asia Pacific) Limited
			
	 	  	Supplemental Share Security Deed over shares in Memec (Asia Pacific) Limited	  	 Memec Holding BV
 Memec (Asia Pacific)
Limited

			
	 	  	Supplemental Share Security Deed over shares in Memec Electronic Components (AP) Limited	  	 Memec Group Limited
 Memec Electronic Components (AP)
Limited

			
	 Germany
	  	Share Pledge Agreement over shares in Memec GmbH	  	Memec Overseas Holdings Limited
			
	 The
 Netherlands
	  	Pledge of Shares over shares in Memec Holding B.V.	  	 Memec Overseas Holdings Limited
 Memec Holding
B.V.

			
	 Ireland
	  	Debenture	  	Memec Ireland Limited

  
 Part III –
Permitted IPO Reorganization 
 New Permitted IPO Reorganization Collateral Documents 
  

					
	 Jurisdiction

	  	 Document

	  	 Executing Parties

	 US
	  	Guaranty Supplement	  	Memec US PubCo
			
	 	  	Joinder Agreement to the Guarantor Security Agreement	  	Memec US PubCo
			
	 France
	  	The Agreement for the Pledge of Account of Financial Instruments over the shares of Memec France SAS	  	Memec Group Limited

  

 4 

					
	 Jurisdiction

	  	 Document

	  	 Executing Parties

	 Hong Kong
	  	Acknowledgement and Confirmation of security over shares in Memec Electronic Components (AP) Limited	  	 Memec Holdings Limited
 Memec Electronic Components (AP)
Limited

			
	 	  	Acknowledgement and Confirmation of security over shares in Memec Electronic Components (AP) Limited	  	 Memec Holding B.V.
 Memec Electronic Components (AP)
Limited

			
	 	  	Share Security Deed over shares in Memec (Asia Pacific) Limited	  	 Hong Kong HoldCo
 Memec (Asia Pacific)
Limited

			
	 	  	Share Security Deed over shares in Memec Electronic Components (AP) Limited	  	 Hong Kong HoldCo
 Memec Electronic Components (AP)
Limited

			
	 	  	Share Security Deed over shares in Hong Kong HoldCo	  	 Memec Holding B.V.
 Hong Kong HoldCo

			
	 	  	Debenture	  	Hong Kong HoldCo
			
	 Germany
	  	Share Pledge Agreement over shares in Memec GmbH	  	Memec Group Limited
			
	 The
 Netherlands
	  	Deed of Assignment of the Contractual Relationship between the Pledgor, the Pledgee and the Company under the Pledge of Shares over shares in Memec Holding B.V.	  	 Memec Group Holdings Limited
 Memec Holding
B.V.

			
	 Switzerland
	  	Share Pledge Agreement over shares in Memec AG	  	Memec Group Limited
			
	 	  	Share Pledge Agreement over shares in Memec Inicore Holding AG	  	Memec Group Limited
			
	 Japan
	  	Share Pledge Agreement over the shares of Memec Japan KK	  	Memec Group Holdings Limited

  

 5 

 SCHEDULE 1.1(b) TO 
 AMENDED AND RESTATED CREDIT AGREEMENT 
  
 Part A 
  
 American
Operating Companies 
  
 Memec, LLC (and its Subsidiaries)

  
 Part B 
  
 Overseas Operating Companies 
  
 Memec GmbH (and its Subsidiary) 
 Memec Belgium NV 
 Memec Holding BV (and its
Subsidiaries) 
 Memec Nederland BV 
 Memec Japan KK 
 Memec AG 
 Memec France SAS 
 Memec Inicore Holding AG (and its Subsidiary) 
 Memec Polska Sp.z.o.o. 
 Memec South Africa (PTY) Limited 
  
 SCHEDULE 1.1(b) TO 
 AMENDED AND RESTATED CREDIT AGREEMENT 

 SCHEDULE 1.1(c) TO 
 AMENDED AND RESTATED CREDIT AGREEMENT 
  
 Specified Subsidiaries 
  

			
	 Company number/ID

	  	 
	 Advanced Components Distributors Pty Limited
	  	372541-40
	 Impact Semiconductor Technologies LLC
	  	991399915-3084232
	 Insight Components (Canada) Inc.
	  	315620-6
	 Insight Electronics LLC
	  	981366206-2935976
	 Insight Electronics Pty Limited
	  	0057498541
	 Memec AG
	  	CH-053.3.003.052-6
	 Memec (Asia Pacific) Limited
	  	153833
	 Memec Canada Inc.
	  	 
	 Memec Electronic Components (AP) Limited
	  	165166
	 Memec Europe Limited
	  	01507861
	 Memec France SAS
	  	B 330 656 638
	 Memec GmbH
	  	HRB 133740
	 Memec Group Limited
	  	3985622
	 Memec Holdings Limited
	  	3936258
	 Memec Inicore AG
	  	CH-073.3.003.488-0
	 Memec Inicore Holding AG
	  	CH-073.3.011.583-6
	 Memec Ireland Limited
	  	2076472
	 Memec Japan KK
	  	020066
	 Memec LLC
	  	981366183-2935958
	 Memec (Memory and Electronic Components) Israel Limited
	  	51-279380-3
	 Memec Overseas Holdings Limited
	  	3936296
	 Memec Pty. Ltd.
	  	00229463
	 Memec UK Limited
	  	3870533
	Memec US Holdings Inc. (formerly known as EAS Holdings, Inc.)	  	33-0954707
	 NSD Pty Limited
	  	000041163
	 Thame Properties Limited
	  	1476018
	 Unique Semiconductor Technologies Inc.
	  	33-0603871
	 Unique Technology Components Pty Limited
	  	006208359

  
 SCHEDULE 1.1(c) TO

 AMENDED AND RESTATED CREDIT AGREEMENT 

 SCHEDULE 1.1 (d) TO 
 AMENDED AND RESTATED CREDIT AGREEMENT 
  
 Subsidiary Guarantors 
  

			
	 Company number/ID

	  	 
	 Advanced Component Distributors Pty Limited
	  	ACN 006 208 359
	 Impact Semiconductor Technologies LLC
	  	991399915-3084232
	 Insight Components (Canada) Inc.
	  	315620-6
	 Insight Electronics LLC
	  	981366206-2935976
	 Insight Electronics Pty Limited
	  	ACN 003 095 903
	 Memec AG
	  	CH-053.3.003.052-6
	 Memec (Asia Pacific) Limited
	  	153833
	 Memec Electronic Components (AP) Limited
	  	165166
	 Memec Europe Limited
	  	01507861
	 Memec France SAS
	  	B 330 656 638
	 Memec GmbH
	  	HRB 133740
	 Memec Holding BV
	  	17096269
	 Memec Inicore AG
	  	CH-073.3.003.488-0
	 Memec Inicore Holding AG
	  	CH-073.3.011.583-6
	 Memec Ireland Limited
	  	2076472
	 Memec Japan KK
	  	020066
	 Memec LLC
	  	981366183-2935958
	 Memec (Memory & Electronic Components) Israel Limited
	  	51-279380-3
	 Memec Pty Limited
	  	ACN 002 269 463
	 Memec UK Limited
	  	3870533
	 Memec US Holdings, Inc. (formerly known as EAS Holdings, Inc.)
	  	33-0954707
	 Thame Properties Limited
	  	1476018
	 Unique Semiconductor Technologies Inc.
	  	33-0603871
	 Unique Technology Components Pty Limited
	  	ACN 005 749 851

  
 SCHEDULE 1.1 (d) TO

 AMENDED AND RESTATED CREDIT AGREEMENT 

 SCHEDULE 1.1(e) 
 TO AMENDED AND RESTATED CREDIT AGREEMENT 
  
 Mandatory Costs Formula  
  
 1. The Mandatory Cost is an addition to the interest rate to compensate Lenders for the cost of compliance with (a) the requirements of the Bank of England and/or the Financial Services Authority (or, in either case,
any other authority which replaces all or any of its functions) or (b) the requirements of the European Central Bank. 
  
 2. On the first day of each Interest Period (or as soon as possible thereafter) the Applicable Facility Agent shall calculate, as a percentage rate, a rate (the
“Additional Cost Rate”) for each Lender, in accordance with the paragraphs set out below. The Mandatory Cost will be calculated by the Applicable Facility Agent as a weighted average of the Lenders’ Additional Cost Rates
(weighted in proportion to the percentage participation of each Lender in the relevant Loan) and will be expressed as a percentage rate per annum. 
  

	 3.      
	 (a) The Additional Cost Rate for any Lender lending from a Lending Office in a Participating Member State will be the percentage notified by that
Lender to the Applicable Facility Agent as the cost (expressed as a percentage of that Lender’s participation in all Loans made from that Lending Office) of complying with the minimum reserve requirements of the European Central Bank. For
purposes of this Schedule 1.1(e), “Participating Member State” means any member state of the European Communities that adopts or has adopted the Euro as its lawful currency in accordance with legislation of the European Union
relating to European Monetary Union. 

  
 (b) If
a Lender fails to specify a rate under paragraph (a) above, the Applicable Facility Agent will assume that the Lender has not incurred any such cost. 
  
 4. The Additional Cost Rate for any Lender lending from a Lending Office in the United Kingdom will be calculated by the Applicable Facility Agent as follows: 

 

	 	(a)	in relation to a Sterling Loan: 

  

			
	 AB + C(B-D) + E x 0.01

	 	 
	             100-(A+C)
	 	per cent. per annum

  

	 	(b)	in relation to a Loan in any currency other than Sterling: 

  

			
	 E x 0.01

	 	 
	     300
	 	per cent. per annum.

  
 Where on the day of
the application of the formulae: 
  

	 	A	is the percentage of that Lender’s Eligible Liabilities (assuming these to be in excess of any stated minimum) which that Lender is from time to time required to hold on a
non-interest bearing deposit account with the Bank of England to comply with cash ratio requirements. 

  
 SCHEDULE 1.1(e) TO 
 AMENDED AND RESTATED CREDIT AGREEMENT 

	 	B	is the percentage rate of interest (excluding the Applicable Margin and the Mandatory Cost) payable for the relevant Interest Period on the Loan. 

  

	 	C	is the percentage (if any) of Eligible Liabilities which that Lender is required from time to time to maintain as interest bearing Special Deposits with the Bank of England.

  

	 	D	is the percentage rate per annum payable by the Bank of England to the Applicable Facility Agent on interest bearing Special Deposits. 

  

	 	E	is calculated by the Applicable Facility Agent as being the average of the most recent rates of charge supplied by that Lender to the Applicable Facility Agent pursuant to paragraph
7 below and expressed in pounds per £1,000,000. 

  
 5. For the
purposes of this Schedule 1.1(e): 
  
 (a) “Eligible
Liabilities” and “Special Deposits” have the meanings given to them from time to time under or pursuant to the Bank of England Act 1998 or (as may be appropriate) by the Bank of England; 
  
 (b) “Fees Rules” means the then current rules on
periodic fees contained in the Supervision Manual of the FSA Handbook or such other law or regulation as may be in force in respect of the payment of fees for the acceptance of deposits; 
  
 (c) “Fee Tariffs” means the fee tariffs specified in the Fees Rules under A.1 (Deposit acceptors)
(ignoring any minimum fee or zero rated fee required pursuant to the Fees Rules but taking into account any applicable discount rate); and 
  
 (d) “Tariff Base” has the meaning given to it, and will be calculated in accordance with, the Fees Rules. 
  
 6. In application of the above formulae, A, B, C and D will be included in the formulae as
percentages (i.e. 5 per cent. will be included in the formula as 5 and not as 0.05). A negative result obtained by subtracting D from B shall be taken as zero. The resulting figures shall be rounded to four decimal places. 
  
 7. If requested by the Applicable Facility Agent, each Lender must, as soon as practicable
after publication by the Financial Services Authority, supply to the Applicable Facility Agent the rate of charge payable by that Lender to the Financial Services Authority pursuant to the Fees Rules in respect of the relevant financial year of the
Financial Services Authority (calculated for this purpose by that Lender as being the average of the Fee Tariffs applicable to that Lender for that financial year) and expressed in pounds per £1,000,000 of the Tariff Base of that Lender.

  

 2 

 8. Each Lender shall supply any information required by the Applicable Facility Agent for the purpose of calculating its
Additional Cost Rate. In particular, but without limitation, each Lender shall supply the following information in writing on or prior to the date on which it becomes a Lender: 
  
 (a) its jurisdiction of incorporation and the jurisdiction of its Lending Office; and 
  
 (b) any other information that the Applicable Facility Agent may reasonably
require for such purpose. 
  
 Each Lender shall promptly notify the Applicable
Facility Agent in writing of any change to the information provided by it pursuant to this paragraph. 
  
 9. The percentages or rates of charge of each Lender for the purpose of A, C and E above shall be determined by the Applicable Facility Agent based upon the information supplied to it pursuant to paragraphs 7 and 8
above and on the assumption that, unless a Lender notifies the Applicable Facility Agent to the contrary, each Lender’s obligations in relation to cash ratio deposits and Special Deposits are the same as those of a typical Lender from its
jurisdiction of incorporation with a Lending Office in the United Kingdom. 
  
 10.
The Applicable Facility Agent shall have no liability to any person if such determination results in an Additional Cost Rate which over or under compensates any Lender and shall be entitled to assume that the information provided by any Lender
pursuant to this Schedule above is true and correct in all respects. 
  
 11. The
Applicable Facility Agent shall distribute the additional amounts received as a result of the Mandatory Cost to the Lenders on the basis of the Additional Cost Rate for each Lender based on the information provided by each Lender pursuant to this
Schedule. 
  
 12. Any determination by the Applicable Facility Agent pursuant to
this Schedule in relation to a formula, the Mandatory Cost, an Additional Cost Rate or any amount payable to a Lender shall, in the absence of manifest error, be conclusive and binding on all parties to this Agreement. 
  

	13.	(a) The Applicable Facility Agent may from time to time, after consultation with the Borrowers and the Lenders, determine and notify to all parties any amendments which are required
to be made to this Schedule in order to comply with any change in law, regulation or any requirements from time to time imposed by the Bank of England, the Financial Services Authority or the European Central Bank (or, in any case, any other
authority which is its successor or which replaces all or any of its functions) and any such determination shall, in the absence of manifest error, be conclusive and binding on all parties. 

  

	 	(b)	If the Applicable Facility Agent, after consultation with the Applicable Memec Parent, determines that the Additional Cost for a Lender lending from a lending office in the United
Kingdom can be calculated by reference to a screen, the Applicable Facility Agent may notify all the parties to this Agreement of any amendment to this Agreement which is required to reflect this. 

  

 3 

 SCHEDULE 1.1(f) TO 
 AMENDED AND RESTATED CREDIT AGREEMENT 
  
 Permitted IPO Reorganization 
  

									
	 Relevant Company

	  	 Transfer From:

	  	 Interim Holding
 Companies
of
 Relevant Company

	  	 To:

	1.	  	Memec GmbH	  	Memec Overseas Holdings Limited	  	None	  	Memec Group Limited
					
	 	  	Memec Belgium NV	  	 	  	 	  	 
					
	 	  	Memec Nederland B.V.	  	 	  	 	  	 
					
	 	  	Memec AG	  	 	  	 	  	 
					
	 	  	Memec France SAS	  	 	  	 	  	 
					
	 	  	Memec Inicore Holding AG	  	 	  	 	  	 
					
	2.	  	Memec Electronic Components (AP) Limited	  	Memec Group Limited	  	 Memec Holdings Limited
  
 Memec Holding B.V.
	  	Hong Kong Holdco
					
	3.	  	Memec (Asia Pacific) Limited	  	Memec Holding B.V.	  	Hong Kong Holdco	  	Hong Kong Holdco
					
	4.	  	Memec Group Limited	  	Memec Holdings Limited	  	None	  	Memec Europe Limited
					
	5.	  	Memec Europe Limited	  	Memec Group Limited	  	Memec Holdings Limited	  	Memec Group Holdings Limited
					
	6.	  	Memec US Holdings Inc. and American Operating Companies	  	Memec Overseas Holdings Limited	  	Memec Group Limited	  	Memec Group Holdings Limited
					
	7.	  	Memec Japan KK	  	Memec Overseas Holdings Limited	  	 Memec Group Limited
  
 Memec Holdings Limited
	  	Memec Group Holdings Limited

  
 SCHEDULE 1.1(f) TO

 AMENDED AND RESTATED CREDIT AGREEMENT 

									
	 Relevant Company

	  	 Transfer From:

	  	 Interim Holding
 Companies of

Relevant Company

	  	 To:

	 8.
	 	Memec Holding B.V.	  	Memec Overseas Holdings Limited	  	 Memec Group Limited
  
 Memec Holdings Limited
	  	Memec Group Holdings Limited

  

 2 

 SCHEDULE 4.3 TO 
 AMENDED AND RESTATED CREDIT AGREEMENT 
  
 Ownership of Subsidiaries2 
  

	2	See separate Docs Open #471835 

 SCHEDULE
4.3 TO 
 AMENDED AND RESTATED CREDIT AGREEMENT 

 

 
  
 Schedule 4.3

 Memec Overseas Holdings Ltd UK 3936296 
 Memec Group Holdings Ltd 
 Uk 3985629 
 Memec Europe Ltd UK 01507861 
 Memec Nederland BV 
 Memec Holdings Ltd UK 3936258 
 Thame
Properties Ltd UK 1476018 
 Memec Belgium NV 
 Memec Group Ltd UK 3985622 
 Memec Norway A/S 
 Memec AG (Switzerland) 
 Memec Electronic
Components (AP) 
 LtdHK 
 Memec
Eire (Holdings) Ltd UK 
 Memec GmbH Germany 
 Memec Holdings BV Netherlands 
 Memec Ireland Ltd Ireland 
 Memec Austria GmbH 
 Memec (Memory And
Electronic Components) Israel Ltd. 
 Memec Sweden AB 
 Memec France SAS 
 Memec (Asia Pacific) Ltd 
 HK 
 Memec Finland OY 
 Memec Inicore Holding AG 
 Switzerland

 Memec Electronics (Shanghai) Co. Ltd 
 Memec Denmark A/S 
 Memec Inicore AG 
 Switzerland 
 Memec PTY Ltd 
 Australia 
 Curragh Technology Ltd UK 
 Memec Japan KK 
 Memec (NZ) Ltd 
 Memec South Africa (PTY) Ltd 
 Unique
Technology Components PTY LtdAustralia 
 Memec Italia SpA 
 Italy 
 Memec Polska Sp.z o.o 
 Insight Electronics PTY Ltd 
 Australia 
 Memec Iberica SA Spain 
 Impact Components PTY
Ltd 
 Australia 
 NSD PTY Ltd
Australia 
 Vista Solutions EMEA Ltd 
 UK1666688 
 Memec US Holdings Inc USA 
 Memec LLC USA 
 Memec Canada Inc Canada 
 Unique Semiconductor Technologies 
 IncUSA

 n - Indicates dormant Company 
 Advanced Component Distributor 
 PTY LtdAustralia 
 Impact Semiconductor Technologies 
 LLCUSA 
 Triangle Receivables Funding LLC 
 USA

 Insight Electronics LLC USA 
 Insight Components (Canada) Inc 
 Canada 
 Insight Electronics SA de CV Mexico 
 Memec do Brasil Ltda 
 Insight Electronics do Brasil Ltda 
 Memec UK
Ltd UK 3870533 
 Ambar Cascom Ltd UK 
 Thame Components Ltd UK 
 Insight Technology Ltd UK 
 Ambar Components Ltd UK 
 Microcall Ltd UK 

 SCHEDULE 4.7 TO 
 AMENDED AND RESTATED CREDIT AGREEMENT 
  
 Litigation 
  
 None 
  
 SCHEDULE 4.7 TO 
 AMENDED AND RESTATED CREDIT AGREEMENT 

 SCHEDULE 4.15 TO 
 AMENDED AND RESTATED CREDIT AGREEMENT 
  
 Labor Matters 
  
 EMPLOYMENT
AGREEMENTS 
  
 No collective bargaining agreement covering any of the
employees of any Group Member. 
  
 David Ashworth 
 Doug Lindroth 
 Greg Provenzano 
 Chris Page 
 Yang-Chiah Yee 
 Chris Norman 
 Gerry Fay 
 Bill O’Neill 
 Jerry Corvino 
 David Johnson 
  
 Memec, LLC Executive Deferred Compensation Plan 
  
 2001 Memec Group Holdings Global Share Option Plan 
  
 SCHEDULE 4.15 TO 
 AMENDED AND RESTATED CREDIT AGREEMENT 

 SCHEDULE 4.16 TO 
 AMENDED AND RESTATED CREDIT AGREEMENT} 
  
 Employee Benefit Plans 
  
 No ERISA Withdrawal Liability 
  
 SCHEDULE 4.16 TO

 AMENDED AND RESTATED CREDIT AGREEMENT 

 SCHEDULE 4.17 TO 
 AMENDED AND RESTATED CREDIT AGREEMENT 
  
 Environmental Matters 
  
 No RCRA permits required 
  
 SCHEDULE 4.17 TO

 AMENDED AND RESTATED CREDIT AGREEMENT 

 SCHEDULE 8.3 TO 
 AMENDED AND RESTATED CREDIT AGREEMENT 
  
 Existing Investments 
  

	1.	Memec Group Limited loans to: 

  

	 	(a)	Memec Italia S.p.A of approximately US$6,200,000; 

  

	 	(b)	Memec Iberia SA of approximately US$3,300,000; 

  

	 	(c)	Memec Nederland BV of approximately US$1,100,000; 

  

	 	(d)	Memec Austria GmbH of approximately US$1,600,000; 

  

	 	(e)	Memec Belgium NV of approximately US$1,200,000; 

  

	 	(f)	Memec Denmark A/S of approximately US$1,200,000; and 

  

	 	(g)	Memec Polska Sp.z.o.o. of approximately US$500,000. 

  
 SCHEDULE 8.3 TO 
 AMENDED AND RESTATED CREDIT
AGREEMENTAsset-Backed Loan Agreement dated as of August 4, 2000

 Exhibit 10.13 
  
 EXECUTION COPY 
  

  
 ASSET
BACKED LOAN AGREEMENT 
  
 by and among 
  
 TRIANGLE
RECEIVABLES FUNDING LLC, 
  
 as Borrower, 
  
 PARK
AVENUE RECEIVABLES CORPORATION, 
  
 as a CP Conduit Lender, 
  
 SHEFFIELD RECEIVABLES CORPORATION, 
  
 as a CP Conduit Lender, 
  
 CERTAIN PARCO APA BANKS, 
  
 BARCLAYS BANK PLC, 
  
 as Sheffield Funding Agent 
  
 AND 
  
 THE
CHASE MANHATTAN BANK, 
  
 as PARCO Funding Agent, Administrative Agent and Collection Agent, 
  
 Dated as of August 4, 2000 
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

		
	 ARTICLE I     Definitions
	  	1
			
	 SECTION 1.01.
	  	 Certain Defined Terms
	  	1
			
	 SECTION 1.02.
	  	 Other Terms
	  	1
			
	 SECTION 1.03.
	  	 Computation of Time Periods
	  	2
			
	 SECTION 1.04.
	  	 Grant of Security Interest
	  	2
			
	 SECTION 1.05.
	  	 Appointment of Administrative Agent
	  	3
			
	 SECTION 1.06.
	  	 Agreement as Security Agreement
	  	3
		
	 ARTICLE II     Loans and Settlements
	  	4
			
	 SECTION 2.01.
	  	 Facility
	  	4
			
	 SECTION 2.02.
	  	 Loans; Certificates; Eligible Receivables
	  	4
			
	 SECTION 2.03.
	  	 Selection of Tranche Periods and Tranche Rates
	  	7
			
	 SECTION 2.04.
	  	 Interest, Fees and Other Costs and Expenses
	  	9
			
	 SECTION 2.05.
	  	 Non-Liquidation Settlement and Reinvestment Procedures
	  	9
			
	 SECTION 2.06.
	  	 Liquidation Settlement Procedures
	  	10
			
	 SECTION 2.07.
	  	 Fees
	  	12
			
	 SECTION 2.08.
	  	 Protection of Security Interest of the Lenders
	  	12
			
	 SECTION 2.09.
	  	 Deemed Collections; Application of Payments
	  	13
			
	 SECTION 2.10.
	  	 Payments and Computations, etc.
	  	14
			
	 SECTION 2.11.
	  	 Reports
	  	14
			
	 SECTION 2.12.
	  	 Accounts
	  	15
			
	 SECTION 2.13.
	  	 Right of Setoff
	  	16
			
	 SECTION 2.14.
	  	 Sharing of Payments, etc.
	  	16
			
	 SECTION 2.15.
	  	 Broken Funding
	  	16
			
	 SECTION 2.16.
	  	 Conversion and Continuation of Outstanding Tranches Funded by the APA Banks
	  	17
			
	 SECTION 2.17.
	  	 Illegality
	  	17
			
	 SECTION 2.18.
	  	 Inability to Determine Eurodollar Rate
	  	18
			
	 SECTION 2.19.
	  	 Reduction and Increase of the Funding Limits
	  	19
			
	 SECTION 2.20.
	  	 Taxes
	  	19
			
	 SECTION 2.21.
	  	 Increased Costs
	  	22

  

 i 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page

			
	 SECTION 2.22.
	  	 Capital Adequacy
	  	23
			
	 SECTION 2.23.
	  	 Hedging
	  	23
		
	 ARTICLE III     Representations and Warranties
	  	24
			
	 SECTION 3.01.
	  	 Representations and Warranties of the Borrower
	  	24
			
	 SECTION 3.02.
	  	 Reaffirmation of Representations and Warranties by the Borrower
	  	28
		
	 ARTICLE IV     Conditions Precedent
	  	28
			
	 SECTION 4.01.
	  	 Conditions to Effectiveness
	  	28
			
	 SECTION 4.02.
	  	 Conditions Precedent to Incremental Borrowings
	  	29
		
	 ARTICLE V      Covenants
	  	32
			
	 SECTION 5.01.
	  	 Affirmative Covenants of the Borrower
	  	32
			
	 SECTION 5.02.
	  	 Negative Covenants of the Borrower
	  	41
			
	 SECTION 5.03.
	  	 Representations, Warranties and Covenants of the Contributor
	  	44
			
	 SECTION 5.04.
	  	 Covenant of the Administrative Agent
	  	44
		
	 ARTICLE VI     Administration and Collections
	  	44
			
	 SECTION 6.01.
	  	 Appointment of Collection Agent
	  	44
			
	 SECTION 6.02.
	  	 Duties of Collection Agent
	  	45
			
	 SECTION 6.03.
	  	 Rights After Designation of New Collection Agent
	  	47
			
	 SECTION 6.04.
	  	 Collection Agent Default
	  	47
			
	 SECTION 6.05.
	  	 Responsibilities of the Borrower and the Contributor
	  	49
			
	 SECTION 6.06.
	  	 Indemnification of the Borrower, the Contributor, the Funding Agents and the Lenders
	  	49
		
	 ARTICLE VII     Termination Events
	  	50
			
	 SECTION 7.01.
	  	 Termination Events
	  	50
			
	 SECTION 7.02.
	  	 Remedies Upon the Occurrence of a Termination Event
	  	52
			
	 SECTION 7.03.
	  	 Prepayment Under Certain Circumstances
	  	53
		
	 ARTICLE VIII     Miscellaneous
	  	53
			
	 SECTION 8.01.
	  	 Term of Agreement
	  	53
			
	 SECTION 8.02.
	  	 Waivers; Amendments
	  	54
			
	 SECTION 8.03.
	  	 Notices
	  	54
			
	 SECTION 8.04.
	  	 Governing Law; Submission to Jurisdiction; Integration
	  	56

  

 ii 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page

	 SECTION 8.05.
	  	 Severability; Counterparts
	  	57
			
	 SECTION 8.06.
	  	 Successors and Assigns
	  	57
			
	 SECTION 8.07.
	  	 Confidentiality
	  	58
			
	 SECTION 8.08.
	  	 No Bankruptcy Petition Against CP Conduit Lenders and the Borrower
	  	59
			
	 SECTION 8.09.
	  	 Limited Recourse
	  	60
			
	 SECTION 8.10.
	  	 Characterization of the Transactions Contemplated by the Agreement
	  	61
			
	 SECTION 8.11.
	  	 Waiver of Setoff
	  	61
			
	 SECTION 8.12.
	  	 Conflict Waiver
	  	61
			
	 SECTION 8.13.
	  	 Liability of Barclays and Chase
	  	62
			
	 SECTION 8.14.
	  	 Indemnification
	  	62
			
	 SECTION 8.15.
	  	 Addition of Approved Currency, Approved Originators and Approved Obligors Country
	  	63
			
	 SECTION 8.16.
	  	 Removal and Withdrawal of Originators and Approved Originators
	  	65
			
	 SECTION 8.17.
	  	 Benefits of the Agreement
	  	65

  
 EXHIBITS 
  

			
	 SCHEDULE A
	  	CP Conduit Lenders, Funding Agents and PARCO APA Banks
	 ANNEX A
	  	Schedule of Definitions
	 EXHIBIT A
	  	Credit and Collection Policies and Practices
	 EXHIBIT B
	  	List of Lock-Box Banks, UK Collection Account Banks and Accounts
	 EXHIBIT C
	  	Form of Lock-Box Agreement
	 EXHIBIT D
	  	Form of Settlement Statement
	 EXHIBIT E-1
	  	Form of Revolving Credit Note
	 EXHIBIT E-2
	  	Form of Loan Certificate
	 EXHIBIT F
	  	Lender Supplement
	 EXHIBIT G
	  	Location of Records
	 EXHIBIT H
	  	List of Trade Names of the Borrower
	 EXHIBIT I
	  	Form of Opinions of Counsel
	 EXHIBIT J
	  	Forms of Secretary’s Certificates
	 EXHIBIT K
	  	Subsidiaries and Divisions of the Contributor
	 EXHIBIT L
	  	Form of Contribution Agreement
	 EXHIBIT M
	  	Form of UK Receivables Purchase Agreement

  

 iii 

 TABLE OF CONTENTS 
 (continued) 
  

			
	 EXHIBIT N
	  	Form of US Receivables Purchase Agreement

  

 iv 

 ASSET-BACKED LOAN
AGREEMENT (as amended, supplemented or otherwise modified and in effect from time to time, this “Agreement”), dated as of August 4, 2000, by and among TRIANGLE RECEIVABLES FUNDING LLC, a Delaware
limited liability company, as borrower (in such capacity, the “Borrower”), PARK AVENUE RECEIVABLES CORPORATION and its respective permitted successors and assigns (“PARCO”), SHEFFIELD RECEIVABLES CORPORATION and its
respective permitted successors and assigns (“Sheffield”, and together with PARCO, the “CP Conduit Lenders”), BARCLAYS BANK PLC, a company organized under the laws of England and Wales (“Barclays”),
as Sheffield’s funding agent (in such capacity, the “Sheffield Funding Agent”), CERTAIN PARCO APA BANKS set forth on the signature pages hereof under the caption “PARCO APA Banks” and each other bank that has become a
PARCO APA Bank in accordance with the terms hereof and THE CHASE MANHATTAN BANK, a New York banking corporation (“Chase”), as PARCO’s funding agent (in such capacity, the “PARCO Funding Agent”) and as
administrative agent (in such capacity, the “Administrative Agent”) and as collection agent (in such capacity, the “Collection Agent”). 
  
 PRELIMINARY STATEMENTS 
  
 WHEREAS, the Borrower has requested that the CP Conduit Lenders and the PARCO APA Banks make available for the purposes specified in
this Agreement a revolving loan facility; and 
  
 WHEREAS, the CP Conduit Lenders and the PARCO APA Banks are willing to make available to the Borrower such revolving loan facility upon the terms and subject to the conditions set forth herein; and 
  
 WHEREAS, the Borrower has agreed to secure its
obligations to the CP Conduit Lenders and the PARCO APA Banks in connection with such financing with security interests in, and liens on, certain Receivables assets, as more specifically provided for herein; and 
  
 NOW,
THEREFORE, in consideration of the premises and the covenants and agreements contained herein, the parties hereto hereby agree as follows: 
  
 ARTICLE I 
  
 Definitions 
  
 SECTION 1.01. Certain Defined Terms. Capitalized terms used herein shall have the meanings assigned to such terms in, or incorporated by reference
into, Annex A attached hereto, which Annex A is incorporated by reference herein. 
  
 SECTION 1.02. Other Terms. All accounting terms not specifically defined herein shall be construed in accordance with GAAP. 
  

 SECTION 1.03. Computation of Time Periods. Unless otherwise stated in this Agreement, in the
computation of a period of time from a specified date to a later specified date, the word “from” means “from and including,” the words “to” and “until” each means “to but excluding,” and the word
“within” means “from and excluding a specified date and to and including a later specified date.” Furthermore, all references to a specific time or times shall be references to such time in New York, New York unless otherwise
specified. 
  
 SECTION 1.04. Grant of Security Interest.
The Borrower hereby grants to the Administrative Agent, for the benefit and security of the Lenders, a first priority security interest in, and all of its estate, right, title and interest (but not the obligations), whether now existing or hereafter
acquired or arising, in, to and under the following: (a) all accounts, general intangibles, investment property, chattel paper, documents, instruments, including all debt obligations and debt or other securities (including all Receivables,
Collections and Related Security), whether or not any of the same may become at any time or times Delinquent Receivables, Delinquent UK Receivables, Defaulted Receivables, Defaulted UK Receivables or Diluted Receivables, including any part thereof
which consists of general intangibles (as defined in the UCC) which the Borrower has caused to be delivered or otherwise pledged to the Administrative Agent herewith, all payments made thereon and any other property delivered with respect thereto,
all rights of the Borrower to receive debt obligations or debt or other securities and obligations (including Receivables, Collections and Related Security) from any Person whether created pursuant to purchase orders or otherwise and all debt
obligations or debt or other securities and obligations (including Receivables, Collections and Related Security) which may be delivered to the Administrative Agent in the future pursuant to the terms hereof and thereof, (b) the Borrower’s
rights under the Transaction Documents and all Hedging Agreements, (c) the Collection Account, the Lock-Box Accounts, the UK Collection Accounts, the Interest Account and the Stamp Duty Reserve Account, all obligations and securities (including all
Permitted Investments) purchased with funds on deposit therein and all income from the investment of funds therein, (d) except to the extent otherwise provided in this Agreement, all present and continuing right, power and authority of the Borrower,
in the name and on behalf of the Borrower, as agent and attorney-in-fact or otherwise, to make claim for and demand performance on, under or pursuant to any of the Receivables held by or for the Administrative Agent for the benefit and security of
the Lenders, to enforce the rights of the Borrower under the Contribution Agreement and each Receivables Purchase Agreement, to bring actions and proceedings thereunder or for the specific or other enforcement thereof, or with respect thereto, to
make all waivers and agreements, to grant or refuse requests, to give or withhold notices and to exercise all rights, remedies, powers, privileges and options, to grant or withhold consents and approvals and to do any and all things and exercise all
other discretionary rights, options, privileges or benefits which the Borrower is or may become entitled to do with respect to the Receivables held for the benefit of the Lenders without notice to, consent or approval by or joinder of the Borrower
and (e) all revenues, issues, products, accessions, substitutions, replacements, profits and Proceeds of and from all of the foregoing (the foregoing described in clauses (a) through (e) is referred to as the “Collateral”). Such
grants are made, however, in trust, to secure the obligations owed by the Borrower hereunder and under the Transaction Documents equally and 

  

 2 

 
without prejudice, priority or distinction, except as expressly provided in this Agreement, and to secure (i) the payment of all amounts payable under this
Agreement, in accordance with it terms and (ii) compliance with the provisions of this Agreement, all as provided in this Agreement. 
  
 SECTION 1.05. Appointment of Administrative Agent. Except to the extent otherwise provided in this Agreement, the Borrower hereby irrevocably
constitutes and appoints the Administrative Agent the true and lawful attorney of the Borrower, with full power (in the name of the Borrower or otherwise), to exercise all rights of the Borrower with respect to the Collateral held for the benefit
and security of the Administrative Agent in trust for the Lenders and to ask, require, demand, receive, settle, compromise, compound and give acquittance for any and all moneys and claims for moneys due and to become due under or arising out of any
of the Collateral held for the benefit and security of the Lenders, to endorse any checks or other instruments or orders in connection therewith and to file any claims or take any action or institute any proceedings which the Administrative Agent
may deem to be necessary or advisable in the premises. The power of attorney granted pursuant to this Agreement and all authority hereby conferred are granted and conferred solely to protect the Administrative Agent’s interest in the Collateral
held for the purposes provided for herein and shall not impose any duty upon the Administrative Agent to exercise any power. This power of attorney shall be irrevocable as one coupled with an interest. The Administrative Agent acknowledges such
grants, accepts the trusts hereunder in accordance with the provisions hereof and agrees to perform the duties herein to the best of its ability to the end that the interests of the Lenders may be adequately and effectively protected. 
  
 SECTION 1.06. Agreement as Security Agreement. Except to the extent
otherwise provided in this Agreement, this Agreement shall constitute a security agreement under the laws of the State of New York applicable to agreements made and to be performed therein. Upon the declaration of the Termination Date pursuant to
Section 7.02(a), and in addition to any other rights available under this Agreement or any other instruments included in the Collateral held for the benefit and security of the Administrative Agent in trust for the Lenders or otherwise
available at law or in equity, the Administrative Agent shall have all rights and remedies of a secured party on default under the laws of the State of New York and other applicable law to enforce the assignments and security interests contained
herein and, in addition, shall have the right, subject to compliance with any mandatory requirements of applicable law, to sell or apply any rights and other interest assigned or pledged hereby in accordance with the terms hereof at public or
private sale. It is expressly agreed that, anything herein contained to the contrary notwithstanding, the Borrower shall remain liable under any instruments included in the Collateral to perform all the obligations assumed by it thereunder, all in
accordance with and pursuant to the terms and provisions thereof, and, except as otherwise expressly provided herein, the Administrative Agent shall not have any obligations or liabilities under such instruments by reason of or arising out of this
Agreement, nor shall the Administrative Agent be required or obligated in any manner to perform or fulfill any obligation of the Borrower under or pursuant to such instruments or to make any payment, to make any inquiry as to the nature or
sufficiency of any payment received by it, to present or file any claim or to take any action to collect or enforce the 

  

 3 

 
payment of any amounts which may have been assigned to it or to which it may be entitled at any time or times. 
  
 ARTICLE II 
  
 Loans and Settlements 
  
 SECTION 2.01. Facility. (a) Upon the terms and subject to the conditions set forth herein and in the other Transaction Documents, (i) PARCO may, in
its sole discretion and prior to the occurrence of a PARCO Termination Event, make loans (in Dollars) to the Borrower, on a proportionate basis relative to its Funding Percentage, from time to time prior to the Termination Date, in an aggregate
principal amount at any one time outstanding up to but not exceeding the amount of its Funding Limit (“PARCO Loans”), but if PARCO shall have notified the PARCO Funding Agent that it has elected not to advance such PARCO Loan, the
PARCO APA Banks shall, subject to the terms of this Agreement, advance that portion of such PARCO Loan not to be advanced by PARCO and (ii) Sheffield shall, subject to the terms of this Agreement, make loans (in Dollars) to the Borrower, on a
proportionate basis relative to its Funding Percentage, from time to time prior to the Termination Date, in an aggregate principal amount at any one time outstanding up to but not exceeding the amount of its Funding Limit (“Sheffield
Loans”). By honoring any Notice of Borrowing hereunder, neither of the CP Conduit Lenders nor any PARCO APA Bank assumes or shall have any obligations or liability under any of the Contracts, all of which shall remain the obligations and
liabilities of the Borrower. The Borrower may borrow, repay, prepay and reborrow Loans pursuant to this Article II. 
  
 (b) Maximum Lender Funding Limit. Notwithstanding anything to the contrary contained in this Agreement, at no time shall the Outstanding Loans (i)
with respect to any CP Conduit Lender, exceed the Funding Limit with respect to such CP Conduit Lender at such time and (ii) with respect to PARCO and any PARCO APA Bank, exceed PARCO’s Funding Limit at such time. Neither PARCO APA Banks nor
the Sheffield Assignees shall be required to fund any amount hereunder if a CP Conduit Insolvency Event has occurred with respect to PARCO or Sheffield, respectively. 
  
 SECTION 2.02. Loans; Certificates; Eligible Receivables. 
  
 (a) Incremental Borrowings. 
  
 (i) Prior to the Termination Date, upon the terms and
subject to the conditions set forth herein and in the other Transaction Documents, 
  
 (x) the Borrower may, at its option from time to time, request a borrowing from Sheffield and PARCO (prior to the occurrence of a PARCO
Termination Event) and from the PARCO APA Banks (if PARCO has elected not to advance such PARCO Loan or following the occurrence of a PARCO Termination Event); and 
  

 4 

 (y) Sheffield shall and PARCO may, at its option from time to time (prior to the
occurrence of a PARCO Termination Event), and the PARCO APA Banks shall (if PARCO has elected not to advance such PARCO Loan or following the occurrence of a PARCO Termination Event), honor such request for borrowing from the Borrower, such
borrowing to be secured by the Collateral (each, an “Incremental Borrowing”); 
  
 provided, however, that after giving effect to such Incremental Borrowing and the advance to the Borrower of such Loan Amount, the amount of
the Outstanding Loans shall not exceed the Facility Limit; and provided, further, that after giving effect to such Incremental Borrowing and the advance to the Borrower of such Loan Amount, the representations and warranties set forth
in Section 3.1 shall be true and correct as of the date of such Incremental Borrowing and the advance to the Borrower of such Loan Amount. 
  
 (ii) The Borrower shall deliver to the Administrative Agent by telecopy or telefax a duly completed Notice of Borrowing in respect of each
Incremental Borrowing at least three (3) Business Days prior to the proposed date of any Incremental Borrowing. The Administrative Agent shall forward such Notice of Borrowing to each Funding Agent as soon as reasonably practicable, in no event
later than the close of business of the day of receipt of such Notice of Borrowing. Each such notice shall specify (x) the Loan Amount (which shall be at least $3,000,000 or integral multiples of $100,000 in excess thereof) or, to the extent that
the then available unused portion of the Facility Limit is less than such amount, such lesser amount equal to such available portion of the Facility Limit; (y) the desired date of such Incremental Borrowing, which shall be a Business Day; and (z)
the desired Tranche Period(s) and allocations of the Outstanding Loans of such Incremental Borrowing thereto as required by Section 2.03 (each, a “Notice of Borrowing”). The Borrower shall be limited to a maximum of two (2)
Incremental Borrowings in any single calendar month, without prior consent of the Administrative Agent. Each Incremental Borrowing shall be subject to a condition precedent that the Collection Agent shall have delivered to the Administrative Agent,
in form and substance satisfactory to each Funding Agent, a completed Daily Report with respect to the prior Business Day, together with such other additional information as the Administrative Agent, on behalf of each Funding Agent, may reasonably
request. Each Funding Agent will promptly notify by telephone, confirmed by telecopy or telefax, the Related Lenders of such Funding Agent’s receipt of any Notice of Borrowing and each CP Conduit Lender’s Funding Percentage of the Loan
Amount. 
  
 (iii) Each notice of proposed
Incremental Borrowing shall be irrevocable and binding on the Borrower, and the Borrower shall, subject to the immediately following sentence, indemnify each Lender against any loss or expense incurred by such Lender, either directly or indirectly,
as a result of any failure by the Borrower to complete such Incremental Borrowing, including, 

  

 5 

 
without limitation, any loss or expense incurred by such Lender, either directly or indirectly, by reason of the liquidation or reemployment of funds
acquired by such Lender (including, without limitation, funds obtained by issuing Commercial Paper or promissory notes, obtaining deposits as loans from third parties and reemployment of funds) or the Sheffield Assignees, as applicable, to fund such
Incremental Borrowing. The obligation of the Borrower pursuant to this Section 2.02(a)(iii) shall be payable at such time as funds are actually received by, or are available to, the Borrower in excess of funds necessary to pay in full all
accrued and payable Interest, Program Fees and Servicing Fees and, to the extent funds are not available to pay such obligations, the claims relating thereto shall not constitute a claim against the Borrower but shall continue to accrue. 

 
 (iv) The Borrower shall execute a Revolving Credit Note
for the benefit of each Lender. The Loans made by each Lender shall be evidenced by the Revolving Credit Note payable to the order of such Lender. Upon any increase in the Funding Limit of any Lender pursuant to Section 2.19 hereof, the
Borrower will immediately deliver to such Lender a new Revolving Credit Note, having a maximum principal amount equal to the amount of such Funding Limit as so increased in exchange for the Revolving Credit Note of such Lender outstanding prior to
such increase. 
  
 (v) On the Closing Date, each
Funding Agent, on behalf of the Related Lenders, shall deliver written confirmation to the Administrative Agent of the Loan Amount, the Tranche Period(s) and the Tranche Rate(s) relating to such Loan, and the Administrative Agent shall deliver such
confirmation to the Borrower. Upon receipt of such confirmation, the Borrower shall deliver to the Administrative Agent, acting on behalf of each Funding Agent, the Loan Certificate in the form of Exhibit E hereto (the “Loan
Certificate”). Each Funding Agent shall indicate the amount of the Incremental Borrowing and the amount of the Related Lenders’ Incremental Borrowing together with the date thereof on the grid attached to the Loan Certificate. On the
date of each subsequent Incremental Borrowing, each Funding Agent shall send written confirmation to the Administrative Agent, and the Administrative Agent shall send such confirmation to the Borrower, of the Loan Amount, the Tranche Period(s), the
Loan Date and the Tranche Rate(s) applicable to such Incremental Borrowing. Each Funding Agent, on behalf of the Related Lenders, shall indicate the amount of the Incremental Borrowing together with the date thereof as well as any decrease in the
amount of the Outstanding Loans with respect to the Related Lenders on the Loan Certificate. The Revolving Credit Note and the Loan Certificate shall evidence the Incremental Borrowings. On the day of an Incremental Borrowing, the CP Conduit Lenders
or the PARCO APA Banks, as applicable, shall make available to the Borrower’s account at the location indicated in Section 8.03 hereof, in immediately available funds, an amount equal to the Loan Amount for such Incremental Borrowing
made available by the CP Conduit Lenders or the PARCO APA Banks, as applicable. 
  

 6 

 (b) Reinvestment Loans. On each Business Day occurring after the Closing Date and prior to the
Termination Date, (i) Sheffield shall lend and (ii) PARCO may lend or, following a PARCO Termination Event or if PARCO elects not to advance such amount, the PARCO APA Banks shall lend, to the Borrower, secured by the Collateral, to the extent that
Collections are available for such Loan in accordance with Section 2.05 hereof, such that, after giving effect to such Loan, the amount of the Outstanding Loans at the close of business on such Business Day shall be equal to the amount of the
Outstanding Loans at the close of the business on the Business Day immediately preceding such Business Day plus the Loan Amount of any Incremental Borrowing made on such day, if any. 
  
 (c) All Loans. Each Loan shall be secured by a security interest in the Collateral, then existing, as well as in all
Collateral which arises at any time after the date of such Loan. 
  
 (d) Percentage Factor. The Percentage Factor shall be initially computed as of the close of business of the Collection Agent on the date prior to the Closing Date. Thereafter, until the Termination Date, the Percentage Factor shall
be recomputed as of the close of business of the Collection Agent on each day. The Percentage Factor shall remain constant from the time as of which any such computation or recomputation is made until the time as of which the next such
recomputation, if any, shall be made. At all times on and after the Termination Date until the date on which the Outstanding Loans have been reduced to zero and all accrued Interest, Program Fees, Servicing Fees and all other Aggregate Unpaids have
been paid in full, the Percentage Factor shall be fixed and shall remain at 100%. 
  
 SECTION 2.03. Selection of Tranche Periods and Tranche Rates. 
  
 (a) CP Rate and CP Tranche Periods. At all times hereafter, but prior to the Termination Date and not with respect to any portion of the Loans made
by any of the PARCO APA Banks or, in the case of Loans made by Sheffield funded with funds provided by the Sheffield Assignees, the Borrower may, subject to the CP Conduit Lenders’ approval and the limitations described below, request CP
Tranche Periods and allocate a portion of the Outstanding Loans to each selected CP Tranche Period, so that the aggregate amounts allocated to outstanding CP Tranche Periods at all times shall equal the portion of the Outstanding Loans held by the
CP Conduit Lenders. At least three (3) Business Days prior to the expiration of any then existing Tranche Period, the Borrower shall give the Administrative Agent irrevocable notice by telephone, confirmed by facsimile or telecopy, of the new
requested CP Tranche Period(s), and the Administrative Agent shall, as soon as reasonably practicable and in no event later than the close of business on the day such notice is received, deliver such notice to each applicable Funding Agent;
provided, however, that each such Funding Agent may select, in consultation with the Related Lenders and the Borrower, any such new CP Tranche Period if (i) the Borrower fails to provide such notice to the Administrative Agent on a
timely basis or (ii) the relevant Funding Agent determines that the CP Tranche Period requested by the Borrower is unavailable or for any reason commercially undesirable. The Tranche Rate for any CP Tranche Periods for any CP Conduit Lender shall be
the CP 

  

 7 

 
Rate for such CP Conduit Lender. Each CP Conduit Lender confirms that it is its intention to allocate all or substantially all of the portion of the
Outstanding Loans held by it to one or more CP Tranche Periods; provided that each Funding Agent may determine, with respect to the Related Lenders, from time to time, that funding such portion of the Outstanding Loans by means of one or more
CP Tranche Periods is not possible or is not desirable for any reason. 
  
 (b) Eurodollar Rate and BR Rate; Eurodollar Tranches and BR Tranches. 
  
 (i) At all times with respect to any portion of the Loans made by the PARCO APA Banks prior to the Termination Date, the initial Tranche
Period applicable to such portion of the Outstanding Loans allocable thereto shall (x) to the extent the PARCO Funding Agent has received, from the Administrative Agent on behalf of the Borrower, at least three (3) Business Days prior notice of the
first day of such Tranche Period, such Tranche Period may be a Eurodollar Tranche, and (y) to the extent the PARCO Funding Agent has received, from the Administrative Agent on behalf of the Borrower, less than three (3) Business Days prior notice of
the first day of such Tranche Period, such Tranche shall be a BR Tranche. Thereafter (but prior to the Termination Date or the occurrence and continuation of a Specified Potential Termination Event), with respect to such portion, and with respect to
any other portion of the Loans made by the PARCO APA Banks, the Tranche Period applicable thereto shall be, at the Borrower’s option, either a BR Tranche or a Eurodollar Tranche. The Borrower shall give the Administrative Agent, who shall
deliver such notice to the PARCO Funding Agent, irrevocable notice by telephone, confirmed by telecopy or telefax, of the new requested Eurodollar Tranche at least three (3) Business Days prior to the expiration of any then existing Tranche Period.
Any Tranche Period maintained by the PARCO APA Banks which is outstanding on the Termination Date shall end on the Termination Date. 
  
 (ii) At all times with respect to any portion of the Loans funded by Sheffield with funds provided by the Sheffield Assignees prior to the
Termination Date, the initial Tranche Period applicable to such portion of the Outstanding Loans allocable thereto shall (x) to the extent the Sheffield Funding Agent has received, from the Administrative Agent on behalf of the Borrower, at least
three (3) Business Days prior notice of the first day of such Tranche Period, such Tranche Period may be a Eurodollar Tranche, and (y) to the extent the Sheffield Funding Agent has received, from the Administrative Agent on behalf of the Borrower,
less than three (3) Business Days prior notice of the first day of such Tranche Period, such Tranche Period shall be a period of not greater than three (3) days, and such Tranche shall be a BR Tranche. Thereafter (but prior to the Termination Date
or the occurrence and continuation of a Specified Potential Termination Event), with respect to such portion, and with respect to any other portion of the Loans made by the Sheffield Assignees, the Tranche Period applicable thereto shall be, at the
Borrower’s option, either a BR Tranche or a Eurodollar Tranche. The Borrower shall give the Administrative Agent, who 

  

 8 

 
shall deliver such notice to the Sheffield Funding Agent, irrevocable notice by telephone, confirmed by telecopy or telefax, of the new requested Eurodollar
Tranche at least three (3) Business Days prior to the expiration of any then existing Tranche Period. Any Tranche Period maintained by the Sheffield Assignee on behalf of Sheffield which is outstanding on the Termination Date shall end on the
Termination Date. 
  
 SECTION 2.04. Interest, Fees and Other
Costs and Expenses. The Borrower shall pay, as and when due in accordance with this Agreement and the other Transaction Documents, all fees hereunder, Interest, Servicing Fees, Program Fees and Aggregate Unpaids. On the last day of each Tranche
Period, the Borrower shall pay to the Administrative Agent, on behalf of each Funding Agent (acting on behalf of the Related Lenders), an amount equal to the accrued and unpaid Interest for such Tranche Period and, in the event any portion of the
Loans has been made by the CP Conduit Lenders, an amount equal to the discount (without duplication) accrued on such CP Conduit Lenders’ Commercial Paper, to the extent such Commercial Paper was issued in order to fund the Loan, in a face
amount in excess of the cash portion of the Loan Amount of an Incremental Borrowing; provided that (i) in the event of any repayment or prepayment of a BR Tranche or a Eurodollar Tranche, accrued Interest on the principal amount repaid or
prepaid shall be payable on the date of such repayment or prepayment and (ii) in the event of any conversion of a BR Tranche or a Eurodollar Tranche, accrued interest on such BR Tranche or Eurodollar Tranche shall be payable on the effective date of
such conversion. Interest shall accrue with respect to each Tranche on each day occurring during the Tranche Period related thereto. 
  
 Nothing in this Agreement or the other Transaction Documents shall limit in any way the obligations of the Borrower to pay the amounts set forth in this
Section 2.04. 
  
 SECTION 2.05. Non-Liquidation
Settlement and Reinvestment Procedures. 
  
 (a) On each day
after the date of any Incremental Borrowing but prior to the Termination Date, and provided that no Specified Potential Termination Event (other than a Specified Termination Event solely as a result of a breach Section 3.01(k) ) shall have
occurred and be continuing, the Collection Agent shall, on a daily basis, out of the Collections received on or prior to such day and not previously applied or accounted for: (i) set aside and hold in trust for the Lenders, and deposit into the
Interest Account as required pursuant to Section 2.12 hereof, an amount equal to all Interest, Servicing Fees, Program Fees and any operating expenses of the Borrower accrued through such day and not so previously set aside or paid, (ii)
deposit into the Stamp Duty Reserve Account the amount as required pursuant to Section 5.01(p) hereof, and (iii) distribute, subject to the limitations provided in Section 2.06(a) and 5.02(k) hereof, the balance of such Collections
remaining after application of Collections as provided in clause (i) of this Section 2.05 to the Borrower or at the Borrower’s direction; provided, however, that if a Specified Potential Termination Event resulting solely
from a breach of Section 3.01(k) shall have occurred and be continuing, the amount distributed to the Borrower 

  

 9 

 
pursuant to this Section 2.05(a) shall exclude an amount equal to the amount required to be paid pursuant to Section 2.09 hereof to cure such
breach. 
  
 (b) On the last day of each Tranche Period, from the
amounts set aside as described in clause (i) of Section 2.05(a), the Collection Agent shall deposit to the Funding Account, for the benefit of the Lenders, prior to 1:00 P.M. on such Business Day, an amount equal to accrued and unpaid
Interest and Program Fees for such Tranche Period, shall deposit to its own account an amount equal to the accrued and unpaid Servicing Fee for such Tranche Period and shall release to the Borrower an amount equal to the accrued operating expenses
of the Borrower for such Tranche Period. The Administrative Agent, upon its receipt of such amounts in the Funding Account, shall distribute such amounts to each Funding Agent, on behalf of the Related Lenders entitled thereto, on a proportionate
basis relative to each Related Lender’s respective Funded Percentage; provided, further, that if the Administrative Agent shall have insufficient funds to pay all of the above amounts in full on any such date, the Administrative
Agent shall notify the Borrower and the Borrower shall immediately pay to the Administrative Agent an amount equal to such insufficiency. 
  
 SECTION 2.06. Liquidation Settlement Procedures. 
  
 (a) If at any time on or prior to the Termination Date, the Percentage Factor is greater than the Maximum Percentage Factor, then the Borrower shall
immediately pay to the Administrative Agent, for the benefit of the Lenders, from previously received Collections, an amount equal to the amount which, when either deposited into the Funding Account or applied directly in reduction of the
Outstanding Loans, will result in a Percentage Factor less than or equal to the Maximum Percentage Factor. The Borrower shall instruct the Administrative Agent as to whether such funds are to be deposited in the Funding Account or applied directly
in the reduction of Outstanding Loans. To the extent such funds are applied in reduction of the Outstanding Loans, the Tranche Periods shall be selected by each Funding Agent. Amounts deposited in the Funding Account pursuant to the immediately
preceding sentence may, at the request of the Borrower, be withdrawn by the Administrative Agent and distributed to the Borrower, or at the Borrower’s direction, if, and to the extent, such withdrawal would not cause the Percentage Factor to
exceed the Maximum Percentage Factor. 
  
 (b) On each day on which
a Specified Potential Termination Event has occurred and is continuing, and on the Termination Date and on each day thereafter, the Collection Agent, at the direction of the Administrative Agent (in consultation with the Funding Agents), shall set
aside and hold in trust for the Lenders and deposit into the Collection Account as required pursuant to Section 2.12 hereof, all Collections received on such day and shall set aside and hold in trust for the Borrower such portion of
Collections not allocated to the Lenders. On the Termination Date or the day on which a Specified Potential Termination Event occurs, the Collection Agent shall deposit to the Funding Account, for the benefit of the Lenders, any amounts set aside
pursuant to Section 2.05 above and pursuant to the immediately preceding sentence. 
  

 10 

 (c) On the last day of each Tranche Period to occur on or after the Termination Date or during the
continuation of a Specified Potential Termination Event, the Collection Agent, at the direction of the Administrative Agent (in consultation with the Funding Agents), shall deposit to the Funding Account, for the benefit of the Lenders, the amounts
so set aside for the Lenders pursuant to Section 2.06(a), but not to exceed the sum of the amount of the Outstanding Loans allocated to such Tranche Period and all Aggregate Unpaids. On such day, the Collection Agent shall deposit to its
account, from the amounts set aside for the Lenders pursuant to the preceding sentence which remain after payment in full of the aforementioned amounts, the accrued Servicing Fee for such Tranche Period. If there shall be insufficient funds on
deposit for the Collection Agent to distribute funds in payment in full of the aforementioned amounts, the Collection Agent shall distribute funds first, in payment of the accrued Interest and Program Fees, second, if the Borrower, the
Contributor or any Affiliate of the Borrower or the Contributor is not then the Collection Agent, to the Collection Agent’s account, in payment of the Servicing Fee payable to the Collection Agent, third, in reduction of the Outstanding
Loans, fourth, in payment of all fees payable by the Borrower hereunder not otherwise specified in priority, fifth, in payment of all Aggregate Unpaids, sixth, if the Borrower, the Contributor or any Affiliate of the Borrower or
the Contributor is the Collection Agent, to its account as Collection Agent, in payment of the Servicing Fee payable to such Person as Collection Agent and seventh, in payment of the accrued operating expenses of the Borrower. The
Administrative Agent, upon its receipt of such amounts in the Funding Account, shall distribute such amounts to each Funding Agent on behalf of the Related Lenders entitled thereto on a proportionate basis relative to their respective Funded
Percentages; provided that if the Administrative Agent shall have insufficient funds to pay all of the above amounts in full on any such date, the Administrative Agent shall pay such amounts in the order of priority set forth above and, with
respect to any such category above for which the Administrative Agent shall have insufficient funds to pay all amounts owing on such date, ratably (based on the amounts in such categories owing to such Persons) among all such Persons entitled to
payment thereof. 
  
 (d) Following the date on which the amount of
Outstanding Loans has been reduced to zero and all accrued Interest, Program Fees, Servicing Fees and all Aggregate Unpaids have been paid in full, (i) the Collection Agent shall recompute the Percentage Factor, (ii) the Administrative Agent, on
behalf of the Lenders, shall be deemed to have released to the Borrower all of the Lenders’ right and interest in, to and under the Collateral, (iii) the Collection Agent shall pay to the Borrower any remaining Collections set aside and held by
the Collection Agent pursuant to the third sentence of Section 2.06(a) and (iv) the Administrative Agent, on behalf of Lenders and in consultation with each Funding Agent, shall execute and deliver to the Borrower, at the Borrower’s
request and expense, such documents or instruments as are necessary to terminate the Lenders’ respective interests in the Collateral. Any such documents shall be prepared by or on behalf of the Borrower and delivered to the Administrative
Agent. The Collection Agent shall remit to the Borrower such portion of Collections set aside for the Borrower pursuant to this Section 2.06 on a daily basis. 
  

 11 

 SECTION 2.07. Fees. To the extent not otherwise provided for by the provisions of the Agreement,
the Borrower shall pay to the Administrative Agent, for the benefit of the Lenders, the fees specified in the Fee Letters. 
  
 SECTION 2.08. Protection of Security Interest of the Lenders. 
  
 (a) The Borrower agrees that it will, and will cause the Contributor to, from time to time, at its expense, promptly execute
and deliver all instruments and documents and take all actions as may be necessary or as the Administrative Agent may, in consultation with each Funding Agent, reasonably request in order to perfect or protect the security interest in the Collateral
or to enable the Administrative Agent, the Funding Agents or any Lender to exercise or enforce any of their respective rights hereunder. In order to accurately reflect this lending transaction, and without limiting the foregoing, the Borrower will,
and will cause the Contributor to, upon the request of the Administrative Agent (in consultation with each Funding Agent) or any Lender, (i) execute and file such financing or continuation statements or amendments thereto or assignments thereof (as
permitted pursuant to Section 9.06 hereof) as may be requested by the Administrative Agent for the benefit of the Lenders and (ii) mark its respective master data processing records and other documents with a legend describing the conveyance
to the Borrower (in the case of the Contributor) and the pledge to the Administrative Agent (for the benefit of the Lenders) of the Collateral. The Borrower shall, and will cause the Contributor to, upon request of the Administrative Agent (in
consultation with each Funding Agent), obtain such additional search reports as the Administrative Agent, for the benefit of the Lenders, shall request. To the fullest extent permitted by applicable law, the Administrative Agent shall be permitted
to sign and file continuation statements and amendments thereto and assignments thereof without the Borrower’s or the Contributor’s signature. Carbon, photographic or other reproduction of this Agreement or any financing statement shall be
sufficient as a financing statement. The Borrower shall not, and shall not permit the Contributor to, change its respective name, identity or corporate structure (within the meaning of Section 9-402(7) of the Relevant UCC), nor relocate its
respective chief executive office or any office where Records are kept unless it shall have: (i) given the Administrative Agent at least thirty (30) days’ prior notice thereof and (ii) prepared, at Borrower’s expense and delivered to the
Administrative Agent, all financing statements, instruments and other documents necessary to preserve and protect the Lenders’ security interest in the Collateral or requested by the Administrative Agent (in consultation with each Funding
Agent) in connection with such change or relocation. Any filings under the Relevant UCC or otherwise that are occasioned by such change in name or location shall be made at the expense of Borrower. 
  
 (b) Other than with respect to the Atlas Receivables during the Atlas
Transition Period, the Collection Agent shall instruct all Obligors to cause all Collections to be deposited directly with a Lock-Box Bank and, in respect of UK Receivables, to be deposited directly into a UK Collection Account. The Collection Agent
shall transfer, or cause to be transferred, all Collections on deposit in the form of available funds with the Lock-Box Bank or in the UK Collection Account to the Collection Account by the close of business on the Business Day such Collections are
received by the Lock-Box Bank or in the UK Collection Account, respectively. Any Lock-Box Account or UK Collection 

  

 12 

 
Account maintained pursuant to a Lock-Box Agreement or UK Collection Account Agreement, as applicable, shall be owned by the Borrower and subject to the
exclusive control of the Administrative Agent, which is hereby granted to the Administrative Agent by the Contributor and the Borrower. The Collection Agent shall be permitted to give instructions to the Lock-Box Banks except following the
declaration of a Collection Agent Default or following the declaration (or deemed occurrence) of a Termination Date pursuant to Section 7.02(a) hereof. The Collection Agent shall not add any bank as a Lock-Box Bank or a UK Collection Account
Bank to those listed on Exhibit B attached hereto unless such bank has entered into a Lock-Box Agreement or UK Collection Account Agreement, as applicable. The Collection Agent shall not terminate any bank as a Lock-Box Bank or a UK
Collection Account Bank, as applicable, unless the Administrative Agent shall have received fifteen (15) days’ prior notice of such termination. If any of the Borrower, the Contributor or the Collection Agent receives any Collections, the
Borrower, the Contributor or the Collection Agent, as applicable, shall immediately remit (and shall cause the Contributor to remit) such Collections to a Lock-Box Account or UK Collection Account, as applicable. 
  
 SECTION 2.09. Deemed Collections; Application of Payments. 

 
 (a) If on any day a Receivable becomes a Diluted Receivable (and if such
Receivable was represented to be an Eligible Receivable at the time of its pledge hereunder), the Borrower shall be deemed to have received on such day a Collection in respect of such Receivable in the amount of such dilution, and the Borrower shall
cause to be paid into the Collection Account an amount equal to such dilution, as soon as reasonably practicable, but in no event later than the Business Day immediately following the date which is the earlier of the date upon which (x) receipt of
notice of such event is received by the Borrower or (y) the Borrower or the Collection Agent acquires knowledge thereof; (or, if the Collection Agent is not the Contributor or an Affiliate of the Contributor, the Business Day immediately following
the date upon which the Collection Agent delivers notice to the Borrower of such event). Any such amount shall be applied by the Collection Agent as a Collection in accordance with the provisions of Section 2.05 or 2.06 hereof, as
applicable, 
  
 (b) If on any day (i) any of the representations
or warranties in Article III (other than Sections 3.01(u) and (v)) was or becomes untrue with respect to a Receivable (and if such Receivable was represented to be an Eligible Receivable at the time of its pledge hereunder) or (ii) the
nature of the Administrative Agent’s interest therein is unenforceable for any reason (whether on or after the date of any pledge of such interest to the Lenders), then the Borrower shall be deemed to have received on such day a Collection of
such Receivable in full and the Borrower shall (as soon as reasonably practicable but in no event later than the Business Day immediately following the date which is the earlier of the date upon which (x) receipt of notice of such event is received
by the Borrower or (y) the Borrower or the Collection Agent acquires knowledge thereof (or, if the Collection Agent is not the Contributor or an Affiliate of the Contributor, the Business Day immediately following the date upon which the Collection
Agent delivers notice to the Borrower of such event)) cause to be paid into the Collection Account an amount equal to the Outstanding Balance of such Receivable and such amount shall be 

  

 13 

 
allocated and applied by the Collection Agent as a Collection in accordance with Section 2.05 or 2.06 hereof, as applicable. 
  
 (c) Simultaneously with any payment by the Borrower pursuant to this
Section 2.09, each of the Lenders shall terminate all of its right, title and interest in the related Receivable and Related Security, and the Administrative Agent, on behalf of the Lenders and in consultation with each Funding Agent, shall
take all action reasonably requested by the Borrower to effectuate such termination. Payment by the Borrower of each amount due under this Section 2.09 shall discharge the liability of the Borrower in relation to any such Receivables, and the
Administrative Agent, each Funding Agent and each Lender shall have no further right or claim in respect of such Receivable, including without limitation under Section 8.14 hereof. 
  
 SECTION 2.10. Payments and Computations, etc. The Borrower shall repay the principal amount of all Outstanding Loans
no later than ninety (90) days following the Termination Date; provided, however, that if the Termination Date shall have been declared or deemed to occurred pursuant to Section 7.02 hereof the Borrower shall repay the principal
amount of all Outstanding Loans on or prior to the Termination Date. All amounts to be paid or deposited by the Borrower or the Collection Agent hereunder shall be paid or deposited in accordance with the terms hereof no later than 11:00 A.M. on the
day when due in immediately available funds; if such amounts are payable to the Lenders, they shall be paid or deposited in the Funding Account, unless otherwise notified by the Administrative Agent, at the direction of either Funding Agent. No
later than 4:30 P.M. on the date of any Incremental Borrowing hereunder, the CP Conduit Lenders and, if applicable, the PARCO APA Banks, will make available to the Borrower, in immediately available funds, the amount of such Incremental Borrowing on
such day by remitting such amount to an account of the Borrower specified in the related Notice of Borrowing. The Borrower shall, to the extent permitted by law, pay to the Administrative Agent, for the benefit of the Lenders, upon demand of the
Administrative Agent at the direction of the Funding Agents, interest on all amounts not paid or deposited by it when due hereunder at a rate equal to 1.5% per annum plus the Base Rate. Whenever any payment or deposit to be made hereunder shall be
due on a day other than a Business Day, such payment or deposit shall be made on the next succeeding Business Day and such extension of time shall be included in the computation of such payment or deposit. Any computations by the Administrative
Agent of amounts payable by the Borrower hereunder shall be binding upon the Borrower absent manifest error. 
  
 SECTION 2.11. Reports. The Collection Agent shall prepare and forward to the Administrative Agent and the Borrower (a) on each Settlement Date, a
Settlement Statement as of the end of the last day of the immediately preceding Settlement Period, (b) on the Closing Date, and each Business Day thereafter, a Daily Report as of the preceding Business Day and (c) such other information as the
Administrative Agent, at the direction of the Funding Agents, may reasonably request. The Administrative Agent shall forward each report delivered to it by the Collection Agent to each Funding Agent. 
  

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 SECTION 2.12. Accounts. 
  
 (a) On or before the Closing Date, there shall be established and maintained by the Collection Agent, for the benefit of the
Lenders, segregated or trust accounts, each denominated in an Approved Currency (aggregately, the “Collection Account”), in the name of the Borrower and bearing a designation clearly indicating that the funds deposited therein are
held for the benefit of the Lenders. The Collection Agent shall remit daily to the Collection Account all Collections received with respect to any Receivables as provided in this Article II. Funds on deposit in the Collection Account (other
than investment earnings) shall be invested by the Collection Agent in Permitted Investments that will mature so that such funds will be available prior to the last day of each successive Tranche Period following such investment. On the last day of
each Tranche Period, all interest and earnings (net of losses and investment expenses) on funds on deposit in the Collection Account shall be retained in the Collection Account and be available to make any payments required to be made hereunder
(including Interest) by the Borrower. On the date on which the amount of Outstanding Loans is zero and all accrued Interest, Program Fees, Servicing Fees and all Aggregate Unpaids have been paid in full, any funds remaining on deposit in the
Collection Account shall be paid to the Borrower. 
  
 (b) On or
before the Closing Date, there shall be established and maintained by the Collection Agent, for the benefit of the Lenders, a segregated account denominated in U.S. dollars, in the name of the Borrower, (the “Interest Account”),
bearing a designation clearly indicating that the funds deposited therein are held for the benefit of the Lenders. The Collection Agent shall remit daily to the Interest Account from the Collection Account an amount equal to all Interest, Servicing
Fees and Program Fees accrued through such day and not so previously set aside or paid, as provided in Section 2.05 hereof. Funds on deposit in the Interest Account (other than investment earnings) may be invested by Collection Agent in
Permitted Investments that will mature so that such funds will be available prior to the last day of each successive Tranche Period following such investment. The Administrative Agent, on behalf of the Lenders, shall have the sole right of
withdrawal from the Interest Account. 
  
 (c) On or before the
Closing Date, there shall be established and maintained by the Administrative Agent on behalf of the Lenders, a demand deposit account for the Lenders (the “Funding Account”). The Administrative Agent, on behalf of the Lenders,
shall have the sole right of withdrawal from the Funding Account. For so long as any amounts remain due and owing to the Lenders hereunder, the Administrative Agent shall distribute all payments received by it immediately after receipt thereof by
transferring to each Lender, on a proportionate basis relative to its respective Funded Percentage, (i) on the last day of the applicable Tranche Period, all payments of Interest and interest received in the Interest Account pursuant to this
Agreement and (ii) on the date of payment, any other amounts owing to Lenders under this Agreement. Such transfers shall be made by the Administrative Agent by withdrawing funds on deposit in the Funding Account and remitting such funds to the
accounts of the respective Funding Agents, on behalf of the Lenders, specified by each of them from time to time. Notwithstanding the foregoing, if at any time prior to the Termination Date and prior to the occurrence of a Specified Potential
Termination Event, funds on deposit in the Funding Account reflect payments of amounts by the Borrower made pursuant to Section 

  

 15 

 
2.06(a) hereof, such amounts shall be held in the Funding Account in trust for the Borrower and the Administrative Agent shall not distribute such
amounts to the Lenders. 
  
 (d) On or before the Closing Date,
there shall be established and maintained by the by the Administrative Agent for the benefit of the Lenders a segregated account (the “Stamp Duty Reserve Account”) bearing a designation that the funds deposited therein are held for
the benefit of the Lenders. If an amount is required to be credited to the Stamp Duty Reserve Account to satisfy any of the provisions of Section 5.01(p), Collection Agent shall initially remit on behalf of the Borrower such amount, and
thereafter on a daily basis such further amount as is necessary to ensure that the balance of the Stamp Duty Reserve Account is equal to the amount required to satisfy any of the provisions of Section 5.01(p). 
  
 SECTION 2.13. Right of Setoff. Each of the Lenders is hereby
authorized (in addition to any other rights it may have) at any time after the occurrence of the Termination Date, or during the occurrence of a Termination Event, to set off, appropriate and apply (without presentment, demand, protest or other
notice which are hereby expressly waived) any deposits and any other indebtedness held or owing by such Lender to, or for the account of, the Borrower against the amount of the Aggregate Unpaids owing by the Borrower to such Person (even if
contingent or unmatured). 
  
 SECTION 2.14. Sharing of
Payments, etc. If any Lender (for purposes of this Section 2.14 only, being a “Recipient”) shall obtain any payment (whether voluntary, involuntary, through the exercise of any right of setoff, or otherwise) on account of
any Loan in excess of its ratable share of payments on account of any interest in the Collateral obtained by the Lender entitled thereto, such Recipient shall forthwith advance to such Lender entitled to a share of such amount participations in the
percentage interests held by such Persons as shall be necessary to cause such Recipient to share the excess payment ratably with each such other Person entitled thereto; provided, however, that if all or any portion of such excess
payment is thereafter recovered from such Recipient, such purchase from each such other Person shall be rescinded and each such other Person shall repay to the Recipient the purchase price paid by such Recipient for such participation to the extent
of such recovery, together with an amount equal to such other Person’s ratable share (according to the proportion of (a) the amount of such other Person’s required payment to (b) the total amount so recovered from the Recipient) of any
interest or other amount paid or payable by the Recipient in respect of the total amount so recovered. 
  
 SECTION 2.15. Broken Funding. In the event of (a) the payment of any principal of any Eurodollar Tranche other than on the last day of the
Eurodollar Tranche Period applicable thereto (including as a result of the occurrence of the Termination Date or an optional prepayment of a Eurodollar Tranche), (b) the conversion of any Eurodollar Tranche other than on the last day of the related
Eurodollar Tranche Period, or (c) any failure to borrow, convert, continue or prepay any Eurodollar Tranche on the date specified in any notice delivered pursuant hereto, then, in any such event, the Borrower shall compensate the relevant APA Banks
for the loss, cost and expense actually incurred by such APA Banks attributable to such event. Such loss, cost or expense to any APA 

  

 16 

 
Bank shall include an amount determined by such APA Bank to be the excess, if any, of (i) the amount of Interest which would have accrued on the principal
amount of such Eurodollar Tranche had such event not occurred, at the Eurodollar Rate that would have been applicable to such Eurodollar Tranche, for the period from the date of such event to the last day of the Eurodollar Tranche Period (or, in the
case of a failure to borrow, convert or continue, for the period that would have been the related Eurodollar Tranche Period), over (ii) the amount of interest which would accrue on such principal amount for such period at the interest rate which
such APA Bank would bid were it to bid, at the commencement of such period, for dollar deposits of a comparable amount and period from other banks in the interbank Eurodollar market. Within forty-five (45) days after any APA Bank hereunder receives
actual knowledge of any of the events specified in this Section 2.15, a certificate of such APA Bank setting forth any amount or amounts that such APA Bank is entitled to receive pursuant to this Section 2.15 and the reason(s) therefor
shall be delivered to the Borrower (with a copy to the Administrative Agent) and shall be conclusive absent manifest error. The Borrower shall pay each such APA Bank the amount shown as due on any such certificate within ten days after receipt
thereof. 
  
 SECTION 2.16. Conversion and Continuation of
Outstanding Tranches Funded by the APA Banks. Prior to the occurrence of the Termination Date or a Specified Potential Termination Event, (a) each BR Tranche hereunder may, at the option of the Borrower, be converted to a Eurodollar Tranche and
(b) each Eurodollar Tranche may, at the option of the Borrower, be continued as a Eurodollar Tranche or converted to a BR Tranche. If the Termination Date has occurred or a Specified Potential Termination Event has occurred and is continuing, then
(i) no outstanding Tranche funded by the APA Banks may be converted to, or continued as, a Eurodollar Tranche and (ii) unless repaid, each Eurodollar Tranche shall be converted to a BR Tranche on the last day of the Tranche Period related thereto.
For any conversion or continuation, the Borrower shall give the Administrative Agent irrevocable notice (each, a “Conversion/ Continuation Notice”) of such request not later than 12:30 P.M. (A) in the case of a conversion of a BR
Tranche into a Eurodollar Tranche, or a continuation of a Eurodollar Tranche as a Eurodollar Tranche, three (3) Business Days before the date of such conversion or continuation, as applicable, and (B) following the Termination Date or a Specified
Potential Termination Event, in the case of a conversion of a Eurodollar Tranche into a BR Tranche or a continuation of a BR Tranche as a BR Tranche, on the Business Day of such conversion. If a Conversion/Continuation Notice has not been timely
delivered with respect to any BR Tranche or Eurodollar Tranche, such funding shall be automatically continued as, or converted to, a BR Tranche. Each Conversion/Continuation Notice shall specify (x) the requested date (which shall be a Business Day)
of such conversion or continuation, (y) the aggregate amount and rate option applicable to the Tranche which is to be converted or continued and (z) the amount and rate option(s) of Tranche(s) into which such Tranche is to be converted or continued.

  
 SECTION 2.17. Illegality. 
  
 (a) Notwithstanding any other provision of this Agreement, if any Lender
determines that the introduction of or any change in or in the interpretation of any law, treaty or governmental rule, regulation or order after the date of this Agreement shall 

  

 17 

 
make it unlawful, or any central bank or other Governmental Authority shall assert that it is unlawful, for such Lender to make Eurodollar Rate Loans or to
continue to fund or maintain Loans based upon the Eurodollar Rate, then, on notice thereof and demand therefor by such Lender to the Borrower through the Administrative Agent, (i) the obligation of such Lender to make or to continue Loans based upon
the Eurodollar Rate and to convert Loans based upon the Base Rate into Loans based upon the Eurodollar Rate shall be suspended, and each such Lender shall make Loans based upon the Base Rate as part of any requested Incremental Borrowing based upon
the Eurodollar Rate and (ii) if the affected Loans based upon the Eurodollar Rate are then outstanding, the Borrowers shall immediately convert each such Loan into a Loan based upon the Base Rate. If any such conversion occurs on a day which is not
the last day of the related Eurodollar Tranche Period, the Borrower shall pay to such Lender such amounts, if any, as may be required to compensate such Lender. If at any time after a Lender gives notice under this Section 2.17 such Lender
determines that it may lawfully make Loans based upon the Eurodollar Rate, such Lender shall promptly give notice of that determination to the Borrower and the Administrative Agent. The Borrower’s right to request, and such Lender’s
obligation, if any, to make Loans based upon the Eurodollar Rate shall thereupon be restored. 
  
 (b) Each Lender agrees that, upon the occurrence of any event giving rise to the operation of Section 2.17(a) with respect to such Lender, it will, if requested by the Borrower and to the extent permitted by
law or by the relevant Official Body, endeavor in good faith to change the office at which it books its portions of Eurodollar Tranches hereunder if such change would make it lawful for such Lender to continue to acquire or to maintain its
acquisition of portions of Eurodollar Tranches hereunder; provided, however, that such change may be made in such manner that such Lender, in its sole determination, suffers no unreimbursed cost or expense or any other disadvantage
whatsoever. 
  
 SECTION 2.18. Inability to Determine Eurodollar
Rate. In the event that: (i) the Administrative Agent determines, in consultation with each Funding Agent, that those means specified in the definition of “LIBOR Rate” do not exist for ascertaining the applicable interest rates by
reference to which the Eurodollar Rate then being determined is to be fixed; or (ii) either (or both) Funding Agents notify the Administrative Agent that the Eurodollar Rate for any Tranche Period will not adequately reflect the cost to the Related
Lenders of making or maintaining such Loans for such Tranche Period, the Administrative Agent shall forthwith so notify the Borrower, whereupon each Eurodollar Tranche for such Lenders will automatically, on the last day of the current Tranche
Period for such Loan, convert into a BR Tranche and the obligations of such Lenders to make Eurodollar Tranches or to convert BR Tranches into Eurodollar Tranches shall be suspended until the Administrative Agent shall notify the Borrower that such
Funding Agent(s) determined that the circumstances causing such suspension no longer exist. 
  

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 SECTION 2.19. Reduction and Increase of the Funding Limits. 
  
 (a) The Borrower may, upon not less than five (5) days’ irrevocable
prior notice to the Administrative Agent, permanently reduce all or any portion of the Aggregate Funding Limit, provided that (i) any partial reduction of the Aggregate Funding Limit must be in an aggregate amount of $1,000,000 or any greater
amount that is an integral multiple of $1,000,000, (ii) each such reduction shall be applied to the Funding Limits of all of the CP Conduit Lenders pro rata in proportion to such Lender’s Funding Limit, and (iii) the Administrative Agent
shall have promptly given the Funding Agents and the Collection Agent notice of any such reduction of the Aggregate Funding Limit. 
  
 (b) The Funding Limit of a CP Conduit Lender may be increased from time to time to such amount as the Borrower and such CP Conduit Lender each, in its
sole discretion, may agree. Nothing contained in this Agreement shall be deemed to obligate any party to agree to any increase proposed by any other party. Any such increase shall be effected by the Borrower, the Administrative Agent, the related
Funding Agent and each CP Conduit Lender whose Funding Limit will be increased entering into an appropriate document reflecting such increase, whereupon the Borrower will deliver a new Revolving Credit Note to such CP Conduit Lender in exchange for
the Revolving Credit Note outstanding prior to such increase. The Administrative Agent will promptly give the Lenders, the Borrower and the Collection Agent, notice of any increase of the Funding Limits. With respect to any increase of the Funding
Limit of a CP Conduit Lender, it shall be a condition precedent to the effectiveness of any such increase that the APA Banks with respect to such CP Conduit Lender effect a corresponding increase in their Commitments under the related Asset Purchase
Agreement. 
  
 SECTION 2.20. Taxes. 
  
 (a) Any and all payments by the Borrower under this Agreement shall be made
free and clear of and without deduction for any and all present or future taxes, levies, imposts, deductions, charges or withholdings, and all liabilities with respect thereto, excluding (i) in the case of each Lender and the related Funding Agent
(A) taxes measured by its net income, and franchise taxes imposed on it, by the jurisdiction (or any political subdivision thereof) under the laws of which such Lender or Funding Agent (as the case may be) is organized and (B) any United States
withholding taxes payable with respect to payments under this Agreement under laws (including any statute, treaty or regulation) in effect on the Signing Date (or, in the case of an Conduit Assignee or Acquiring Lender, the date such assignment or
transfer, as the case may be, is effective) applicable to such Lender or Funding Agent, as the case may be, but not excluding any United States withholding payable as a result of any change in such laws occurring after the Signing Date (or the date
of such transfer or assignment) and (ii) in the case of each Lender, taxes measured by its net income, and franchise taxes imposed on it, by the jurisdiction in which such Lender’s Applicable Lending Office is located (all such non-excluded
taxes, levies, imposts, deductions, charges, withholdings and liabilities being hereinafter referred to as “Taxes”). If any Taxes shall be required by law to be deducted from or in respect of any sum payable under this Agreement to
any Lender or Funding Agent, the sum payable shall be increased as may be necessary so that after making all required deductions (including deductions applicable to additional sums payable under 

  

 19 

 
this Section 2.20) such Lender or Funding Agent (as the case may be) receives an amount equal to the sum it would have received had no such deductions
been made, (A) the Borrower shall pay the full amount deducted to the relevant taxing authority or other authority in accordance with applicable law, and (B) the Borrower shall deliver to the relevant Funding Agent evidence of such payment;
provided, however, that (x) if the Borrower pays any additional amounts under this Section 2.20(a) (a “Tax Payment”), and (y) a Lender determines that it has effectively obtained a refund of taxes or a credit
against taxes on its overall net income by reason of such Tax Payment (a “Tax Credit”), and (z) such Lender is reasonably able to identify such Tax Credit as being attributable to the Tax Payment, then such Lender shall reimburse to
the Borrower such proportion of such Tax Credit (net of such Lender’s reasonable costs and expenses in obtaining such Tax Credit) as such Lender determines will leave such Lender, after such reimbursement, in no better and no worse position
than that in which it would have been if such Tax Payment had not been required. The Borrower shall repay any amount paid to it pursuant hereto promptly upon receipt of notice from the relevant Lender if all or part of the relevant Tax Credit is
subsequently disallowed or cancelled. Nothing herein contained shall interfere with the right of any Lender to arrange its tax and other affairs in whatever manner it shall think fit, and no Lender shall be under any obligation to disclose any
information regarding the organization of its affairs. 
  
 (b) In
addition, the Borrower agrees to pay any present or future stamp or documentary taxes or any other excise or property taxes, charges or similar levies of the United States, the United Kingdom or any political subdivision thereof or any applicable
foreign jurisdiction, and all liabilities with respect thereto, which arise from any payment made under this Agreement or from the execution, delivery or registration of, or otherwise with respect to, this Agreement. 
  
 (c) The Borrower will pay and hold itself responsible for and will seek no
indemnity from the Lenders of the Administrative Agent in respect of Stamp Duty which is required to be paid in order to secure the stamping of any Relevant Document for any of the following purposes: 
  

	 	(i)	allowing the Relevant Document in question to be produced in evidence in proceedings in the United Kingdom where this is required in order to enable the Borrower to enforce its
rights in respect of any Receivables against the Obligors and either: 

  

	 	(a)	 the judge, arbitrator or other person responsible for the determination of such proceedings has ruled that an executed original or counterpart of the document in
question must be produced in evidence as aforesaid (provided that if an appeal against the ruling is permissible and the Borrower so requests, and on the condition that the Borrower indemnifies each Lender or the Administrative Agent, as the case
may be, to its respective satisfaction on an after-tax basis for all costs involved in such an appeal, each Lender or the Administrative Agent, as the case may 

  

 20 

	 	 
be, will pursue such an appeal pending which neither the Lenders nor the Administrative Agent, as the case may be, will cause an executed original or
counterpart of the document in question to be produced in evidence as aforesaid); or 

  

	 	(b)	the rules governing the conduct of such proceedings provide that a certified unstamped copy of the Relevant Document in question or any other form of evidence of the matters which
are the subject of such proceedings cannot be produced as adequate evidence for the purposes of such proceedings; or 

  

	 	(ii)	complying with a requirement imposed by any judicial or governmental authority for the Relevant Document in question to be stamped before it will be taken into account for the
purpose of determining any liability of the Borrower to taxation (subject to the Borrower taking reasonable steps to resist or avoid such requirement (insofar as it is able to do so whilst fully complying with its obligations under applicable law
and practice and without causing any material prejudice (actual or potential) to its interests)). 

  
 (d) The Borrower will indemnify each Lender and each Funding Agent for the full amount of Taxes excluding any Taxes imposed on or calculated by reference
to the overall income, profits or gains of the indemnified party, including income, profits or gains attributable to any part of its business (including any Taxes imposed by any jurisdiction on amounts payable under this Section 2.20) paid by
such Lender or Funding Agent (as the case may be) in respect of amounts paid by the Borrower hereunder and any liability (including for penalties, interest and expenses, subject to the indemnified party taking all reasonable steps to avoid and
mitigate the same) arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally asserted, subject to the indemnified party taking all reasonable and lawful steps to challenge any wrongful or incorrect assertions of
liability. This indemnification shall be made within thirty (30) days from the date the Administrative Agent, on behalf and at the direction of such Lender or Funding Agent (as the case may be), makes written demand therefor. 
  
 (e) Within thirty (30) days after the date of any payment of Taxes or Other
Taxes, the Borrower will furnish to the Administrative Agent the original or a certified copy of a receipt evidencing payment thereof. 
  
 (f) Without prejudice to the survival of any other agreement of the Borrower hereunder, the agreements and obligations of the Borrower contained in this
Section 2.20 shall survive the payment in full of the Loans. 
  

 21 

 (g) Prior to the Closing Date, in the case of each Non-U.S. Lender that is a signatory hereto, and on the
date on which it becomes a Lender in the case of each other Non-U.S. Lender and from time to time thereafter if requested by the Borrower or the Administrative Agent (in consultation with each Funding Agent), each Non-U.S. Lender that is entitled at
such time to an exemption from United States withholding tax, or that is subject to such tax at a reduced rate under an applicable tax treaty, shall provide the Administrative Agent and the Borrower with two completed copies of: (i) Form W-8ECI
(claiming exemption from withholding because the income is effectively connected with a U.S. trade or business) (or any successor form); (ii) Form W-8BEN (claiming exemption from, or a reduction of, withholding tax under an income tax treaty) (or
any successor form); or (iii) or other applicable form, certificate or document prescribed by the IRS certifying as to such Non-U.S. Lender’s entitlement to such exemption from United States withholding tax or reduced rate with respect to all
payments to be made to such Non-U.S. Lender under this Agreement. Unless the Borrowers and the Administrative Agent (in consultation with the Funding Agents) have received forms or other documents satisfactory to them indicating that payments under
this Agreement to or for a Non-U.S. Lender are not subject to United States withholding tax or are subject to such tax at a rate reduced by an applicable tax treaty, the Borrower or the Administrative Agent (in consultation with the Funding Agents)
shall withhold taxes from such payments at the applicable statutory rate. 
  
 (h) Any Lender claiming any additional amounts payable pursuant to this Section 2.20 or, in the event that (i)(A) any Lender makes a claim under Section 2.21 or Section 2.22, or (B) it becomes
illegal for any Lender to continue to fund or maintain any Eurodollar Tranche and (ii) the Administrative Agent notifies Borrower pursuant to Section 2.17, such Lender shall, in consultation with the related Funding Agent, and the Borrower
(upon the Borrower’s written request) use its reasonable efforts (consistent with its internal policy and legal and regulatory restrictions), including changing the jurisdiction of its Applicable Lending Office or substituting another financial
institution reasonably acceptable to the Borrower, if the making of such a change would avoid the need for, or reduce the amount of, any such additional amounts which would be payable or may thereafter accrue and would not, in the sole determination
of such Lender, be otherwise disadvantageous to such Lender (other than minor costs and expenses of an administrative nature). 
  
 SECTION 2.21. Increased Costs. If at any time any Lender or Sheffield Assignee shall determine that the introduction of or any change in or in the
interpretation of any law, treaty or governmental rule, regulation or order (other than any change by way of imposition or increase of reserve requirements included in determining the Eurodollar Rate) or the compliance by such Lender or Sheffield
Assignee with any guideline, request or directive from any central bank or other Governmental Authority (whether or not having the force of law, but if not having the force of law, being one compliance with which is in accordance with the usual
practices of Persons to whom such guideline, request or directive is intended to apply, in each case, occurring after the Signing Date), there shall be any increase in the cost to such Lender or Sheffield Assignee of agreeing to make or making,
funding or maintaining any Eurodollar Tranche (including on an indirect basis), then the Borrower shall from time to time, within three 

  

 22 

 
(3) Business Days after demand by the Administrative Agent (at the request of such Lender or Sheffield Assignee (with a copy of such demand to the Funding
Agents)), pay to the related Funding Agent for the account of such Lender or Sheffield Assignee additional amounts sufficient to compensate such Lender or Sheffield Assignee for such increased cost. A certificate as to the amount of such increased
cost, including reasonable details as to the computation of such cost, submitted to the Borrower and the Administrative Agent by such Lender or Sheffield Assignee shall be conclusive and binding for all purposes, absent manifest error. 

 
 SECTION 2.22. Capital Adequacy. If at any time any Lender or
Sheffield Assignee determines that (a) the adoption of or any change in or in the interpretation of any law, treaty or governmental rule, regulation or order after the date of this Agreement regarding capital adequacy, (b) compliance with any such
law, treaty, rule, regulation, or order, or (c) compliance with any guideline or request or directive from any central bank or other Governmental Authority (whether or not having the force of law, but if not having the force of law, being one
compliance with which is in accordance with the usual practices of Persons to whom such guideline, request or directive is intended to apply, in each case, occurring after the Signing Date) shall have the effect of reducing the rate of return on
such Lender’s or Sheffield Assignee’s (or any corporation controlling such Lender’s or Sheffield Assignee’s) capital as a consequence of its obligations hereunder to a level below that which such Lender or such corporation could
have achieved but for such adoption, change, compliance or interpretation, then, upon within three (3) Business Days after demand by the Administrative Agent (at the request of such Lender or Sheffield Assignee (with a copy of such demand to the
Funding Agents)), the Borrower shall pay to the related Funding Agent for the account of such Lender or Sheffield Assignee, from time to time as specified by such Lender or Sheffield Assignee, additional amounts sufficient to compensate such Lender
or Sheffield Assignee for such reduction. A certificate as to such amounts submitted to the Borrower and the Administrative Agent by such Lender or Sheffield Assignee shall be conclusive and binding for all purposes absent manifest error.

  
 SECTION 2.23. Hedging. The Borrower hereby assigns to
each Funding Agent the right to enter into Hedging Agreements on the Borrower’s behalf. Each Funding Agent shall, on behalf of the Borrower, enter into Hedging Agreements on such terms and with such hedge counterparties as may be approved by
such Funding Agent. On the date of each Incremental Borrowing, the Borrower shall irrevocably assign to the Administrative Agent, on behalf of the Lenders, all of the Borrower’s rights and obligations under each Hedging Agreement relating to
the Receivables conveyed on the date of such Incremental Borrowing. The Collection Agent shall provide the Administrative Agent with written notice confirming the amounts, if any, to be paid by or to a hedge counterparty on each Settlement Date and
any early termination date. 
  

 23 

 ARTICLE III 
  
 Representations and Warranties 
  
 SECTION 3.01. Representations and Warranties of the Borrower. The Borrower hereby represents and warrants to each Funding Agent and each Lender
that: 
  
 (a) Limited Liability Company Existence; Compliance
with Law. The Borrower (a) is duly organized, validly existing and, where appropriate, in good standing under the laws of the jurisdiction of its organization; (b) is duly qualified and in good standing under the laws of each jurisdiction where
such qualification is necessary; (c) has all requisite power and authority and the legal right to own, pledge, mortgage and operate its properties, to lease the property it operates under lease and to conduct its business as now or currently
proposed to be conducted; (d) is in compliance with its Constituent Documents; (e) is in compliance with all applicable and material Requirements of Law; and (f) has all necessary licenses, permits, consents or approvals from or by, has made all
necessary filings with, and has given all necessary notices to, each Official Body having jurisdiction, to the extent required for such ownership, operation and conduct, except for licenses, permits, consents, approvals or filings which can be
obtained or made by the taking of ministerial action to secure the grant or transfer thereof. 
  
 (b) Power; Authorization; Enforceable. The execution, delivery and performance by Borrower of the Transaction Documents to which it is a party and the consummation of the transactions contemplated thereby:

  
 (i) are within the Borrower’s corporate,
limited liability company, partnership or other powers; 
  
 (ii) have been or, at the time of delivery thereof will have been duly authorized by all necessary Limited Liability Company action, including the consent of members where required; 
  
 (iii) do not and will not (A) contravene the Borrower’s
Constituent Documents, (B) violate any other Requirement of Law applicable to the Borrower (including Regulations T, U and X of the Federal Reserve Board), or any order or decree of any Official Body or arbitrator applicable to the Borrower, (C)
conflict with or result in the breach of, or constitute a default under, or result in or permit the termination or acceleration of, any Contractual Obligation of the Borrower or any of its Subsidiaries, or (D) result in the creation or imposition of
any Lien upon any of the property of the Borrower or any of its Subsidiaries, other than Permitted Liens; and 
  
 (iv) do not require the consent of, authorization by, approval of, notice to, or filing or registration with, any Official Body or any
other Person, and which have been or will be, prior to the Signing Date, obtained or made, copies of which have been or will be delivered to the Administrative Agent, and each of which on the Signing Date and of the date of each Incremental
Borrowing 

  

 24 

 
thereafter will be in full force and effect and, with respect to the Collateral, filings required to perfect the security interest in the Collateral.

  
 This Agreement has been, and each of the other Transaction
Documents to which it is a party and each Notice of Borrowing will have been upon delivery thereof, duly executed and delivered by the Borrower. This Agreement is, and the other Transaction Documents to which it is a party and each Notice of
Borrowing will be, when delivered hereunder, the legal, valid and binding obligation of the Borrower, enforceable against the Borrower in accordance with its terms. 
  
 (c) Perfection. As of the Closing Date and each Incremental Borrowing thereafter, the Borrower shall be the owner of
all of the Receivables, free and clear of all Adverse Claims other than Permitted Liens. In the case of the first Loan, on the date thereof, the financing statements described in Sections 4.01(c), 4.01(d), 4.01(e) and
4.01(f) below shall have been executed and delivered by the Borrower and/or the Contributor, as applicable, to the Administrative Agent or its representatives for filing in the appropriate offices by or on behalf of each Lender. Following the
filing of such financing statements, on or prior to the date of each Loan and each recomputation of the Outstanding Loans, all financing statements and other documents required to be recorded or filed in order to perfect and protect the Lenders
against all creditors of, and purchasers from, the Borrower and the Contributor will have been duly filed in each filing office necessary for such purpose, and all filing fees and taxes, if any, payable in connection with such filings shall have
been paid in full. 
  
 (d) Accuracy of Information. All
information heretofore furnished by or on behalf of the Borrower or the Collection Agent on its behalf (including, without limitation, the Settlement Statements, any reports delivered pursuant to Section 2.11 hereof and the Borrower’s
financial statements) to the Lenders for purposes of, or in connection with, this Agreement and the other Transaction Documents are, and all such information hereafter furnished by or on behalf of the Borrower to the Lenders will be, true and
accurate in every material respect, on the date such information is stated or certified. 
  
 (e) Tax Status. The Borrower has filed all material tax returns (Federal, state and local) required to be filed and has paid or made adequate provision for the payment of all material taxes, assessments and
other governmental charges other than taxes or filings contested in good faith or taxes which are not yet due and payable, and for which adequate reserves have been established in accordance with GAAP. 
  
 (f) Litigation. There are no pending or, to the knowledge of the
Borrower, threatened actions, investigations or proceedings affecting the Borrower before any court, Official Body or arbitrator. The performance of any action by the Borrower required or contemplated by any of this Agreement or any Transaction
Document is not restrained or enjoined (either temporarily, preliminarily or permanently). 
  

 25 

 (g) Use of Proceeds. No proceeds of any Loan will be used by the Borrower to acquire any security
in any transaction which violates Regulation T, U or X of the Federal Reserve Board. 
  
 (h) Place of Business. The principal place of business and chief executive office of the Borrower are located at the address of the Borrower indicated in Section 8.03 hereof, and the offices where the
Borrower keeps all its Records, are located at the address(es) described on Exhibit G or such other locations notified to the Administrative Agent in accordance with Section 2.08 hereof in jurisdictions where all action required by
Section 2.08 hereof has been taken and completed. 
  
 (i)
Good Title. As of the Closing Date, after the filing in the appropriate offices of the financing statements described in Sections 4.01(c), (d), (e) and (f) below, and with respect to each Incremental Borrowing
subsequent to such filing and each recomputation of the Outstanding Loans, the Administrative Agent, on behalf of each Lender, shall acquire (A) a valid and perfected first priority security interest or (B) a first priority perfected security
interest in each Receivable that exists on the date of such Incremental Borrowing and recomputation and in the Related Security, Collections and Proceeds with respect thereto, free and clear of any Adverse Claim, other than Permitted Liens.

  
 (j) Trade Names, etc. As of the date of each
Incremental Borrowing: (i) the Borrower’s chief executive office is located at the address for notices set forth in Section 8.03 hereof; and (ii) the Borrower has, within the last five (5) years, operated only under the trade names
identified in Exhibit H hereto, and, within the last five (5) years, has not changed its name, merged with or into or consolidated with any other corporation or been the subject of any proceeding under Title 11, United States Code
(Bankruptcy), except as disclosed in Exhibit H hereto. 
  
 (k) Nature of Receivables. Each Receivable (i) represented by the Borrower to be an Eligible Receivable (included in any Settlement Statement or other report delivered pursuant to Section 2.11 hereof) or (ii) included in the
calculation of the Net Receivables Balance in fact satisfies at such time the definition of “Eligible Receivable.” 
  
 (l) Coverage Requirement. The Percentage Factor does not exceed the Maximum Percentage Factor. 
  
 (m) No Termination Event. No event has occurred and is continuing and
no condition exists which constitutes a Termination Event or a Potential Termination Event. 
  
 (n) Not an Investment Company. The Borrower is not, and is not controlled by, an “investment company” within the meaning of the Investment Company Act of 1940, as amended, or is exempt from all
provisions of such Act. 
  

 26 

 (o) ERISA. Each of the Borrower and its ERISA Affiliates is in compliance in all material respects
with ERISA, and no lien exists in favor of the Pension Benefit Guaranty Corporation on any of the Receivables. 
  
 (p) Lock-Box Accounts and UK Collection Accounts. The names and addresses of all the Lock-Box Banks and the UK Collection Account Banks, together
with the account numbers of (i) the Lock-Box Accounts at such Lock-Box Banks, and (ii) the UK Collection Account at such UK Collection Account Banks, are specified in Exhibit B hereto (or at such other Lock-Box Banks, UK Collection Account
Banks and/or with such other Lock-Box Accounts or UK Collection Accounts as have been notified to each Lender and for which Lock-Box Agreements or UK Collection Account Agreement, as applicable, have been executed in accordance with Section
2.08(b) hereof and delivered to the Collection Agent). Other than with respect to the Atlas Receivables during the Atlas Transition Period, all Obligors have been instructed to make payment to a Lock-Box Account or a UK Collection Account, as
applicable, and only Collections are deposited into a Lock-Box Account or a UK Collection Account, as applicable. 
  
 (q) Bulk Sales. No transaction contemplated hereby or by the Contribution Agreement requires compliance with any “bulk sales” act or
similar law. 
  
 (r) Transfers Under Contribution
Agreement. Each Receivable which has been transferred to the Borrower by the Contributor has been transferred pursuant to, and in accordance with, the terms of the Contribution Agreement. 
  
 (s) Preference; Voidability. The Borrower shall have given reasonably
equivalent value to the Contributor in consideration for the transfer to the Borrower of the Collateral from the Contributor, and each such transfer shall not have been made for or on account of an antecedent debt owed by the Contributor to the
Borrower, and no such transfer is or may be voidable under any Section of the Bankruptcy Reform Act of 1978 (11 U.S.C. §§ 101 et seq.), as amended (the “Bankruptcy Code”). 
  
 (t) Subsidiaries. The Borrower shall not have any subsidiaries.

  
 (u) Stamp Duty Group. Each member of the Stamp Duty
Group is associated (within the meaning of Section 42 of the United Kingdom Finance Act 1930 (as amended)) with each other member of the Stamp Duty Group. 
  
 (v) Clifford Chance Tax Opinion. The statements of fact assumed in assumptions 6, 7-11 (inclusive), 16, 18, 18A, 29, 31 and 32 of the Clifford
Chance Tax Opinion are correct so far as they relate to the Stamp Duty Group and its Affiliates. For the avoidance of doubt, no representation is made in this sub-paragraph (v) in respect of matters of law or legal judgment 
  
 (w) No material adverse change has occurred with respect to the business,
operations, property or condition (financial or otherwise) of the Borrower since the Closing Date provided that, for the avoidance of doubt, it shall not be considered a material adverse change if the performance of the Receivables owned by the
Borrower 

  

 27 

 
deteriorates for the purposes of the tests in respect of the Termination Events set out in Sections 7.01(k), (l) or (p) (other than as a
result of the actions and/or omissions of the Borrower or its Affiliates, including without limitation, a relaxation in the Credit and Collection Policies which is not contemplated in Clause 6.5 of the Contribution Agreement) but such deterioration
does not cause the tests set out in any of such sections to be breached. 
  
 (x) There are no circumstances in existence which could cause the Borrower to have any liability under Section 132 of the Finance Act 1988. 
  
 Any document, instrument, certificate or notice delivered to the Administrative Agent or any Lender by the Borrower or any
agent of the Borrower hereunder shall be deemed a representation and warranty by the Borrower. 
  
 SECTION 3.02. Reaffirmation of Representations and Warranties by the Borrower. On each day that a Incremental Borrowing is made hereunder, the Borrower, by delivery of a Notice of Borrowing and by accepting the
proceeds of such Incremental Borrowing, whether delivered to the Borrower pursuant to Section 2.02(a) or Section 2.05 hereof, shall be deemed to have certified that all representations and warranties described in Section 3.01
hereof are true and correct on and as of such day as though made on and as of such day. 
  
 ARTICLE IV 
  
 Conditions
Precedent 
  
 SECTION 4.01. Conditions to
Effectiveness. This Agreement shall become effective on the first day on which special consent shall have been obtained from the United Kingdom Treasury (pursuant to section 765 of the United Kingdom Income and Corporation Taxes Act 1988) to the
entry by the Borrower into this Agreement and the raising of loans by the Borrower in accordance with the terms hereof and such consent shall not have been withdrawn or revoked in whole or in part and the Administrative Agent shall have received the
following documents, instruments and fees, all of which shall be in a form and substance acceptable to each Funding Agent: 
  
 (a) A certificate of the Secretary or Assistant Secretary of the Borrower in substantially the form of Exhibit J-1 hereto certifying (i) the names
and signatures of the officers and employees authorized on its behalf to execute this Agreement and any other documents to be delivered by it hereunder (on which certificate the Lenders may conclusively rely until such time as the Administrative
Agent shall receive from the Borrower a revised certificate meeting the requirements of this clause (a) (i)), (ii) a copy of the Borrower’s Certificate of Formation, certified by the Secretary of State of the State of Delaware, (iii) a copy of
the Borrower’s Limited Liability Company Agreement, (iv) a copy of resolutions of the Board of Directors of the Borrower approving this transaction and (v) certificates of the Secretary of State of the 

  

 28 

 
State of Delaware certifying the Borrower’s good standing under the laws of the State of Delaware. 
  
 (b) A certificate of the Secretary or Assistant Secretary of the Contributor
in substantially the form of Exhibit J-2 hereto certifying (i) the names and signatures of the officers and employees authorized on its behalf to execute this Agreement and any other documents to be delivered by it hereunder (on which
certificate the Lenders may conclusively rely until such time as the Administrative Agent shall receive from the Contributor a revised certificate meeting the requirements of this clause (b) (i)), (ii) a copy of the Contributor’s Certificate of
Formation, certified by the Secretary of State of the State of Delaware, (iii) a copy of the Contributor’s Limited Liability Company Agreement, (iv) a copy of resolutions of the Board of Directors of the Contributor approving this transaction
and (v) certificates of the Secretary of State of the State of Delaware certifying the Contributor’s good standing under the laws of the State of Delaware. 
  

(c) A form of opinion of Clifford Chance Rogers & Wells LLP, special counsel to the Borrower and the Contributor, regarding substantive
consolidation and “true contribution” between the Contributor and the Borrower. 
  
 (d) An opinion of Clifford Chance Rogers & Wells LLP, special counsel to the Borrower and the Contributor, regarding enforceability of the Transaction Documents to which each is a party and other corporate
matters. 
  
 (e) An executed copy of this Agreement and each other
Transaction Document to be executed by the Borrower and/or the Contributor in substantially the form annexed hereto with such amendments and modifications as shall be acceptable to the Funding Agents. 
  
 (f) A document signed by an Affiliate of the Borrower which is resident in
the United Kingdom containing statements substantially in the form contemplated in Part IX of the Clifford Chance Tax Opinion relating to section 767A and section 767AA United Kingdom Income and Corporation Taxes Act 1988, section 132 Finance Act
1988 and Schedule 28 Finance Bill 2000. 
  
 SECTION 4.02.
Conditions Precedent to Incremental Borrowings. As a condition precedent to the Closing Date, such date shall be on or before February 28, 2001, no Termination Event shall have occurred and special consent shall have been obtained from the
United Kingdom Treasury (pursuant to section 765 of the United Kingdom Income and Corporation Taxes Act 1988) to the entry by the Borrower into this Agreement and the raising of loans by the Borrower in accordance with the terms hereof and such
consent shall not have been withdrawn or revoked in whole or in part and the Administrative Agent shall have received the following documents, instruments and fees, all of which shall be in a form and substance acceptable to each Funding Agent:

  
 (a) Evidence that the fees specified in the Fee Letters for
payment on or prior to the Closing Date have been paid. 
  

 29 

 (b) Copies of proper financing statements (Form UCC-1), dated a date on or prior to the Closing Date,
naming the Borrower as the debtor, the Administrative Agent, on behalf of the Lenders, as secured party, and other similar instruments or documents as may be necessary or, in the reasonable opinion of the Administrative Agent (in consultation with
each Funding Agent), desirable under the Relevant UCC of all appropriate jurisdictions or any comparable law to perfect the Administrative Agent’s security interest in the Collateral. 
  
 (c) Copies of proper financing statements (Form UCC-1), dated a date on or
prior to the Closing Date, naming the Contributor as debtor, the Borrower as secured party, and the Administrative Agent, as assignee of the secured party, and other similar instruments or documents as may be necessary or, in the reasonable opinion
of the Administrative Agent (in consultation with each Funding Agent), desirable under the relevant UCC of all appropriate jurisdictions or any comparable law to perfect the Borrower’s ownership or security interest in the Collateral.

  
 (d) Copies of Form 395 (pursuant to UK Companies Act 1985, as
amended). 
  
 (e) Copies of proper financing statements (Form
UCC-3), if any, necessary to terminate all security interests and other rights of any person in the Collateral previously granted by the Borrower. 
  
 (f) Copies of proper financing statements (Form UCC-3), if any, necessary to release all security interests and other rights of any person in the
Collateral previously granted by the Contributor. 
  
 (g)
Certified copies of request for information or copies (Form UCC-11) (or a similar search report certified by parties acceptable to the Administrative Agent (in consultation with each Funding Agent)), dated a date on or prior to the Closing Date,
listing all effective financing statements which name the Borrower and the Contributor (under their respective present names and any previous names) as debtor and which are filed in jurisdictions in which the filings were made pursuant to item (e)
or (f) above together with copies of such financing statements (none of which shall cover any Receivables, Related Security or Contracts). 
  
 (h) Executed copies of the Lock-Box Agreements and UK Collection Account Agreements relating to each of the Lock-Box Banks and the Lock-Box Accounts and
the UK Collection Account Banks and UK Collection Account Agreements. 
  
 (i) (i) Opinions of Clifford Chance Rogers & Wells LLP, special counsel to the Contributor and the Borrower, respectively, regarding the valid creation of the security interest granted by the Contributor to the Borrower and the security
interest granted by the Borrower to the Administrative Agent, and (ii) opinions of special California counsel (acceptable to the Administrative Agent) to the Contributor and the Borrower, respectively, regarding perfection and priority of such
security interests. 
  

 30 

 (j) An opinion of Clifford Chance Rogers & Wells LLP, special counsel to the Borrower and the
Contributor, regarding substantive consolidation and “true contribution” between the Contributor and the Borrower, substantially in the form delivered pursuant to Section 4.01 hereof. 
  
 (k) A certificate of the secretary or assistant secretary of the Contributor
certifying that Contributor maintains disaster recovery systems and backup computer and other information management systems reasonably satisfactory to the Lenders to protect the Contributor’s business against material interruption or loss or
destruction of its primary computer and information management systems. 
  
 (l) A Daily Report for the previous Business Day. 
  
 (m)
Evidence that Hedging Agreements are in place and effective. 
  
 (n) Evidence that the Borrower is in compliance with Section 5.01(n) hereof. 
  
 (o) Evidence that all conditions precedent to the effectiveness of the Contribution Agreement and each of the Receivables Purchase Agreements have been satisfied. 
  
 (p) Evidence that the Contributor has purchased all of the outstanding
ownership interests in the Borrower. 
  
 (q) If the Closing Date
(i) is prior to the fourteenth (14th) day of the month in which such date occurs, a Settlement Statement for the two (2) prior months, and (ii) is on or following to the fourteenth (14th) day of the month in which such date occurs, a Settlement
Statement for the prior month. 
  
 (r) Evidence that the rights
and obligations of the Collection Agent have been assigned to MEMEC LLC and MEMEC LLC has (i) accepted such assignment, (ii) affirmed to each Lender that its representations and warranties made to the Borrower in Article IV of the
Contribution Agreement are true and correct, (iii) affirmed to each Lender that it has complied with its covenants made to the Borrower in Article V of the Contribution Agreement, and (iv) fulfilled all the obligations of the Collection Agent
hereunder. 
  
 (s) Evidence that the Borrower has entered into an
Intercreditor Agreement and the Borrower Security Agreement and Debenture (each as defined in the Credit Agreement) each in a form and substance satisfactory to the Funding Agents. 
  
 (t) Such other documents, instruments, certificates and opinions as each Funding Agent shall reasonably request. 

 

 31 

 ARTICLE V 
  
 Covenants 
  
 SECTION 5.01. Affirmative Covenants of the Borrower. At all times from the date hereof to the later to occur of (i) the Termination Date or (ii)
the date on which the Outstanding Loans has been reduced to zero, all accrued Interest, Servicing Fees, Program Fees and all Aggregate Unpaids shall have been paid in full, in cash, unless the Administrative Agent (in consultation with each Funding
Agent) shall otherwise consent in writing: 
  
 (a) Financial
Reporting. The Borrower will maintain a system of accounting established and administered in accordance with GAAP, and furnish to the Administrative Agent: 
  

(i) Annual Reporting. Within one hundred fifty (150) days after the close of the Borrower’s Fiscal Year, audited financial
statements, prepared in accordance with GAAP consistently applied, including balance sheets as of the end of such period, related statements of operations, shareholder’s equity and cash flows, accompanied by an unqualified audit report
certified by independent certified public accountants, acceptable to the Administrative Agent (in consultation with each Funding Agent), prepared in accordance with GAAP and any management letter prepared by said accountants and by a certificate of
said accountants stating that, (A) such financial statements fairly present the financial position of the Borrower as at the dates indicated and the results of its operations and cash flow for the periods indicated in conformity with GAAP applied on
a basis consistent with prior years (except for changes with which the accountants shall concur and which shall have been disclosed in the notes to the financial statements), and (B) in the course of the foregoing, nothing has come to their
attention to cause such accountants to believe that (x) any Termination Event or Potential Termination Event has occurred, or (y) the servicing of the Receivables has not been conducted in compliance with this Agreement; provided that if, in
the opinion of such accountants, (I) any Termination Event or Potential Termination Event shall exist, or (II) the servicing of the Receivables has not been conducted in accordance with this Agreement, said accountants shall provide an alternate
certificate stating their reasons believing (x) and (y) above and explaining the nature and status thereof. 
  
 (ii) Quarterly Reporting. Within sixty (60) days after the end of each fiscal quarter of the Borrower, unaudited balance sheets as
at the close of each such period and related statements of operations, shareholders’ equity and cash flows (in each case, prepared in accordance with GAAP) for the period from the beginning of such fiscal quarter to the end of such quarter, all
certified by its senior financial officer. 
  
 (iii) Compliance Certificate. Together with the financial statements required hereunder, a compliance certificate signed by the Borrower’s 

  

 32 

 
director stating that (x) the attached financial statements have been prepared in accordance with GAAP and accurately reflect the financial condition of the
Borrower or and (y) to the best of such Person’s knowledge, no Termination Event or Potential Termination Event exists, or if any Termination Event or Potential Termination Event exists, stating the nature and status thereof. 
  
 (iv) Notice of Termination Events or Potential
Termination Events. As soon as possible and in any event within two (2) Business Days after the actual knowledge of a Responsible Officer of the Borrower of the occurrence of each Termination Event or each Potential Termination Event, a
statement of the chief financial officer of the Borrower setting forth details of such Termination Event or Potential Termination Event and the action which the Borrower has taken or proposes to take with respect thereto. 
  
 (v) Other Information. Such other information
(including non-financial information) as Administrative Agent (at the request of either Funding Agent) may from time to time reasonably request with respect to the Contributor, the Borrower or any Subsidiary of any of the foregoing; provided
that after a PARCO Termination Event such information shall also be provided to each of the PARCO APA Banks at each such PARCO APA Bank’s expense. 
  
 (b) Conduct of Business. The Borrower shall carry on and conduct its business in substantially the same manner and in substantially the same fields
of enterprise as it is presently conducted and do all things necessary to remain duly incorporated, validly existing and in good standing as a domestic corporation in its jurisdiction of incorporation and maintain all requisite authority to conduct
its business in each jurisdiction in which its business is conducted. 
  
 (c) Compliance with Laws. The Borrower shall comply with all applicable Requirements of Law, Contractual Obligations and Permits. 
  
 (d) Furnishing of Information and Inspection of Records. The Borrower shall furnish to the Administrative Agent from time to time such information
with respect to the Receivables as the Administrative Agent (in consultation with the Funding Agents) may reasonably request, including, without limitation, listings identifying the Obligor and the Outstanding Balance for each Receivable, together
with an aging of Receivables (in the case of UK Receivables, based upon days past the original due date, and in the case of all other Receivables, based upon days past original invoice date). The Borrower will at any time and from time to time
during regular business hours and upon reasonable notice permit the Administrative Agent or its agents or representatives, (i) to examine and make copies of and abstracts from all Records and (ii) to visit the offices and properties of the Borrower
for the purpose of examining such Records, and to discuss matters relating to Receivables or the Borrower’s performance hereunder and under the other Transaction Documents to which the Borrower is a party with any of the officers, directors,
employees or independent public accountants of the Borrower having knowledge of such matters. 
  

 33 

 (e) Keeping of Records and Books of Account. The Borrower shall maintain and implement
administrative and operating procedures (including, without limitation, an ability to recreate records evidencing Receivables in the event of the destruction of the originals thereof), and keep and maintain, all documents, books, records and other
information reasonably necessary or advisable for the collection of all Receivables (including, without limitation, records adequate to permit the daily identification of each new Receivable and all Collections of and adjustments to each existing
Receivable). The Borrower shall give the Administrative Agent prompt notice of any change in the administrative and operating procedures of the Borrower referred to in the previous sentence to the extent such change may have a Material Adverse
Effect. 
  
 (f) Performance and Compliance with Contracts.
The Borrower, at its expense, shall instruct the Collection Agent to, and to the extent applicable, timely and fully perform and comply in all material respects with all provisions, covenants and other promises required to be observed by the
Borrower under the Contracts related to the Receivables. 
  
 (g)
Collections. The Borrower shall maintain, and keep in full force and effect, each Lock-Box Agreement and UK Collection Account Agreement to which it is a party, except to the extent otherwise permitted under the terms of this Agreement and
the other Transaction Documents. The Borrower shall instruct the Collection Agent to (i) instruct all Obligors to cause all Collections, other than Collections remitted directly to the Borrower and other than Collections with respect to the Atlas
Receivables during the Atlas Transition Period, to be deposited directly to a Lock-Box Account or the UK Collection Account, as applicable, and (ii) hold in trust, and deposit immediately (but in any event no later than twenty-four (24) hours of its
receipt thereof) to a Lock-Box Account or a UK Collection Account, as applicable, all Collections received from time to time by the Borrower. 
  
 (h) [Reserved.] 
  
 (i) Corporate Documents. The Borrower shall only amend, alter, change or repeal its Constituent Documents with the prior written consent of the
Administrative Agent (in consultation with each Funding Agent), which shall not be unreasonably withheld. 
  
 (j) Separate Corporate Existence. The Borrower shall: 
  
 (i) Except as set forth in the Transaction Documents, maintain its deposit account or accounts, separate from those of any Affiliate and
ensure that its funds will not be diverted to any Affiliate, nor will such funds be commingled with the funds of any Affiliate 
  
 (ii) To the extent that it shares any officers or other employees with any Affiliate, the salaries of and the expenses related to
providing benefits to such officers and other employees shall be fairly allocated among it and such 

  

 34 

	 	 
Affiliate, and it and such Affiliate shall bear their fair shares of the salary and benefit costs associated with all such common officers and employees;

  
 (iii) To the extent that it
jointly contracts with any Affiliate to do business with vendors or service providers or to share overhead expenses, the costs incurred in so doing shall be allocated fairly between it and such Affiliate and it and such Affiliate shall bear their
fair shares of such costs. To the extent that it contracts or does business with vendors or service providers where the goods and services provided are partially for the benefit of an Affiliate, the costs incurred in so doing shall be fairly
allocated between it and such Affiliate in proportion to the benefit of the goods or services each is provided, and it and such Affiliate shall bear their fair shares of such costs. All material transactions between it and an Affiliate, whether
currently existing or hereafter entered into, shall be only on an arm’s length basis; 
  
 (iv) Maintain office space separate from the office space of any Affiliate (but which may be located at the same address as an Affiliate).
To the extent that it and any Affiliate have offices in the same location, there shall be a fair and appropriate allocation of overhead costs between them, and each shall bear its fair share of such expenses; 
  
 (v) Issue financial statements separate from any financial
statements issued by any Affiliate; 
  
 (vi)
Conduct its affairs strictly in accordance with its organizational documents and observe all necessary, appropriate and customary corporate formalities, including, but not limited to, holding regular and special members’ and directors’
meetings appropriate to authorize all company action, keeping separate minutes of its meetings, passing all resolutions or consents necessary to authorize actions taken or to be taken, and maintaining separate books, records and accounts, including,
but not limited to, payroll and intercompany transaction accounts; 
  
 (vii) Except as set forth in the Transaction Documents, not assume or guarantee any of the liabilities of any Affiliate; and 
  
 (viii) Take, or refrain from taking, as the case may be, all other actions that are necessary to be taken or not to be taken in order (x)
to ensure that the assumptions and factual recitations set forth in the Specified Bankruptcy Opinion Provisions remain true and correct with respect to it (and, to the extent within its control, to ensure that the assumptions and factual recitations
set forth in the Specified Bankruptcy Opinion Provisions remain true and correct with respect to the Company) and (y) to comply with those procedures described in such provisions that are applicable to it; and 
  
 (ix) Ensure that no action is taken by the Borrower or any
Affiliate which would or may result in (x) any member of the Stamp Duty Group 

  

 35 

 
ceasing to be associated with any other member or members of the Stamp Duty Group for the purposes of Section 42 Finance Act 1930 or (y) the provisions of
Section 27 Finance Act 1967 applying to any transfer of UK Receivables made between members of the Stamp Duty Group. 
  
 (k) Enforcement of Contribution Agreement. The Borrower shall use its best efforts to enforce all rights held by it under the Contribution
Agreement and shall not waive any breach of any covenant contained in Section 5.01 thereunder without the written consent of the Administrative Agent (in consultation with each Funding Agent). 
  
 (l) Transfer by the Contributor. With respect to any Receivable
transferred by the Contributor to the Borrower, the Borrower shall, and shall cause the Contributor to, effect such transfer under, and pursuant to the terms of, the Contribution Agreement including, without limitation, the crediting to a
distributable assets ledger maintained by the Borrower of an amount equal to the reasonably equivalent value of the Receivables transferred by the Contributor, in accordance with the terms of the Contribution Agreement. 
  
 (m) Additional Security Documentation. The Borrower shall, at its own
expense, promptly take or cause to be taken such actions as may be necessary or desirable, in the reasonable judgment of and at the request of the Administrative Agent (in consultation with each Funding Agent), (A) to create and maintain a valid and
perfected first priority security interest covering the Collateral and (B) to preserve and protect fully the perfected first priority security interest of the Administrative Agent, on behalf of the Lenders, with respect to the Collateral including,
without limitation, the execution and filing of all necessary instruments, necessary to be kept and filed in such manner and in such places as may be required by law to preserve, protect and perfect fully such security interest. 
  
 (n) Further Assurances. The Borrower at its own expense, shall, upon
the request of the Administrative Agent (in consultation with each Funding Agent), from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged or delivered, within a reasonable time period of such request, such
amendments or supplements to this Agreement and the Contribution Agreement and, on and prior to the Closing Date, such further instruments and take such further action as may be reasonably necessary (as determined by the Funding Agents in
consultation with the Borrower), including, without limitation, the submission of any documents for adjudication by the United Kingdom Stamp Office on a date after the enactment of the UK Finance Bill 2000, to obtain the confirmation of the current
ratings assigned to the Commercial Paper (on an unwrapped basis), to the extent such ratings are attributable to the transactions contemplated hereby and the other Transaction Documents. In furtherance of the foregoing and thereafter from time to
time as may be necessary, the Borrower shall (i) cooperate with each of S&P and/or Moody’s in connection with any review of the Transaction Documents which may be undertaken by S&P and/or Moody’s prior to the Closing Date and (ii)
provide each of S&P and Moody’s with such information or access to such information as they may reasonably request in connection with any future review of the ratings referred to above. 
  

 36 

 (o) Termination of Contribution Agreement. Upon the occurrence of a Termination Event or Potential
Termination Event under the Contribution Agreement or any Receivables Purchase Agreement (as each such term is defined in the Contribution Agreement or Receivables Purchase Agreement, as applicable), the Borrower shall, and shall cause the
Contributor to, take any action with respect to such Termination Event or Potential Termination Event only at the direction of the Administrative Agent, on behalf of the Lenders. 
  
 (p) Applicability of Stamp Duty Provisions. The following provisions of this Section 5.01(p) through
5.01(s) shall apply if, at any time after the date of this Agreement, any circumstances arise or become known to the Borrower or the Collection Agent which give either of them reason to believe that any Relevant Document does not or (in the
case of a Relevant Document not yet executed at the relevant time) would not qualify for Section 42 Exemption. For the purposes of the foregoing (and for the avoidance of doubt): 
  
 (i) the circumstances referred to shall include, so far as relevant, any failure by the United Kingdom Stamp
Office to adjudicate a Relevant Document as being free of any United Kingdom Stamp Duty where a Rating Agency has required that such a document should be so adjudicated as an indication that Section 42 exemption is available for the Relevant
Documents as a condition of maintaining or granting an Appropriate Rating, any change in law or official practice, any transaction entered into by the Borrower or any of its Affiliates or the Borrower or the Collection Agent becoming aware of any
legal rule or legal interpretation not mentioned in the Tax Opinion; and 
  
 (ii) the reference to any Relevant Document includes both documents which have been executed at the relevant time and documents which may be required to be executed thereafter for the purposes mentioned in the
definition of “Relevant Document”. 
  
 (q) Stamp Duty
Confirmation. Where Section 5.01(p) applies, the Borrower shall: 
  
 (i) notify the Administrative Agent of the relevant circumstances promptly after becoming aware of the same; and 
  
 (ii) instruct Clifford Chance (or any other Tax Adviser) to confirm (so far as it is able) in a manner acceptable to the Administrative
Agent (acting reasonably) that: 
  
 (A) where the
Tax Opinion considers the application of stamp duty to the Relevant Document in question, the circumstances mentioned in Section 5.01(p) above do not require the Tax Opinion to be altered or qualified in any way as regards that Relevant
Document; 
  
 (B) where the Tax Opinion does not
consider the application of stamp duty to the Relevant Document in question, the document in 

  

 37 

 
questions fulfils (or, as the case may be, would fulfil) the conditions for being eligible to be adjudicated free of ad valorem stamp duty under section 42
of Finance Act 1930; or 
  
 (C) in either case,
it would not be necessary to produce the document in question (I) as evidence in a court in the United Kingdom in order to enable the Borrower to enforce its rights in respect of the Receivables against the Obligors or (II) where relevant, for any
of the purposes described in Section 2.20(c)(ii); 
  
 and, if such
confirmation cannot be given, to advise as to the amount of stamp duty (including any interest and penalties) which would be chargeable on the Relevant Document in question (the “Applicable Stamp Duty Amount” in relation to that
document) and additionally as to the amount of Stamp Duty which is chargeable on any Existing Relevant Document. 
  
 (r) Stamp Duty Termination Event. Where the Borrower notifies the Administrative Agent pursuant to Section 5.01(q)(i) above, a Termination
Event shall be deemed to occur on the expiry of a period of ninety (90) Business Days after the date of receipt of such notice (the “Cure Period”) unless, before such expiry, one of the conditions set out in Section
5.01(r)(i)(ii), (iii) or (iv) below is satisfied: 
  
 (i) the Borrower shall have received an opinion from Clifford Chance (or any other Tax Adviser) containing a confirmation in the terms set out in Section 5.01(q)(ii)(a), (b) or (c) above and
either 
  
 (A) where any debt which is secured on
the debt under this Agreement is already rated by the Rating Agencies on a basis which takes into account this Agreement without reference to any credit support provided through the PARCO Asset Purchase Agreement and the Sheffield Asset Purchase
Agreement, the Rating Agencies have confirmed such opinion is adequate to maintain the existing rating; or 
  
 (B) where such debt is not yet rated, the Rating Agencies have confirmed that such opinion is adequate to allow them to grant an
Appropriate Rating on such a basis, without a Rating Agency requirement for additional adjudication of the Stamp Office indicating the Section 42 Exemption is available for Relevant Documents; or 
  
 (ii) the Borrower shall (and, if applicable, shall have
procured that the Collection Agent, the Contributor and any Affiliate of the Borrower shall) have altered the relationships between members of the Stamp Duty Group with a view to ensuring that Section 42 Exemption is available in relation to any
Relevant Documents (such exemption to be confirmed by the delivery acceptable to the Rating Agency of an appropriate tax opinion if requested by the Administrative Agent together with, if required by any Rating Agency, evidence of an adjudication of
a Relevant Document (specified by the Rating Agencies) by the 

  

 38 

 
Stamp Office indicating that Section 42 Exemption is available for Relevant Documents; or 
  
 (iii) the Borrower shall have agreed with the Administrative Agent what amount should be credited to the
Stamp Duty Reserve Account in order to provide against any possible requirement for stamp duty to be paid on any Relevant Document referred to in Section 5.01(q) above and the said amount shall have been credited to the Stamp Duty Reserve
Account; provided that: 
  
 (A) the
Administrative Agent undertakes to act reasonably in agreeing the said amount having regard to (inter alia) the Applicable Stamp Duty Amount referred to in Section 5.01(q)(ii) above and any requirements of the Rating Agencies; and 

 
 (B) the amount to be credited to the Stamp Duty Reserve
Account in accordance with this Section 5.01(r)(iii) shall not exceed 8% of the Outstanding Balance of all Receivables; or 
  
 (iv) the Borrower and Administrative Agent shall have agreed what change should be made to the Percentage Factor in order to reflect the
relevant circumstances referred to in Section 5.01(p). 
  
 No Offer Letter may be delivered during the Cure Period unless and until one of the conditions set out in (i), (ii), (iii) and (iv) above have been satisfied. 
  
 (s) Notwithstanding the provisions of Section 5.01(r) above, where the Borrower notifies the Administrative Agent
pursuant to Section 5.01(q)(ii) above and such notification relates to any document which is an Existing Relevant Document, a Termination Event shall be deemed to occur immediately after the expiry of a period of seven (7) Business Days after
the date of receipt of such notice unless, before such expiry, either: 
  
 (i) the Borrower shall have received an opinion from Clifford Chance (or any other Tax Advisor) containing a confirmation in the terms set out in Section 5.01(q)(ii)(A), (B) or (C) above in
relation to such Existing Relevant Documents; or 
  
 (ii) the Borrower shall have agreed with the Administrative Agent (in consultation with the Funding Agents) what amount should be credited to the Stamp Duty Reserve Account in order to provide against any possible requirement for stamp duty
to be paid on any Existing Relevant Document referred to in Section 5.01(q) above and the said amount shall have been credited to the Stamp Duty Reserve Account provided that: 
  
 (A) the Administrative Agent undertakes to act reasonably in agreeing the said amount having regard to,
inter alia, the Applicable Stamp Duty Amount relating to Existing Relevant Documents referred to 

  

 39 

 
in Section 5.01(q)(ii) above and any requirements of the Rating Agencies; and 
  
 (B) the amount to be credited to the Stamp Duty Reserve Account in accordance with this Section
5.01(s) shall not exceed 8% of the Outstanding Balance of all Receivables which have already been acquired by the Borrower to which an Existing Relevant Document relates; or 
  
 (iii) the Receivables which are the subject of any Existing Relevant Documents referred to in Section
5.01(q) above are dealt with according to Clause 2.6 of the Contribution Agreement as if they were Ineligible Receivables (as defined in the Contribution Agreement) and an Adjustment Payment (as defined in the Contribution Agreement) is made to
the Borrower in respect of such Receivables within seven (7) Business Days of the commencement of the Cure Period; or the Borrower and Administrative Agent shall have agreed what change should be made to the Percentage Factor in order to reflect the
relevant circumstances referred to in Section 5.01(p). 
  
 (t) Funds shall be released from the Stamp Duty Reserve Account in the circumstances and in the amounts set out in this Section 5.01(t). In each case the relevant amount shall be released to the Borrower and the amount released shall
cease to be subject to any security interests granted by the Borrower to or for the benefit of the Lenders or to any restrictions contained in the Transaction Documents over the assets of the Borrower. Amounts shall be released from the Stamp Duty
Reserve Account as follows: 
  
 (i) if (A) any
amount (or any part of an amount) standing to the credit of the Stamp Duty Reserve Account shall have been so credited in order to provide against the payment of stamp duty on any particular Relevant Document (such amount being the
“Attributable Stamp Duty Reserve Amount” in relation to the Relevant Document in question); and 
  
 (B) the Contributor or the Borrower or any of their Affiliates (or any other person on their behalf) shall have paid any amount either:

  
 (I) to the Inland Revenue in order to secure
the stamping of the Relevant Document in question; or 
  
 (II) to any other person in order to indemnify that person for the payment of stamp duty on the Relevant Document in question: 
  
 an amount equal to the amount paid by the Contributor, the Borrower or any Affiliate (or on their behalf) as mentioned in (b) above (but not exceeding the
relevant Attributable Stamp Duty Reserve Amount) shall be released to the Borrower. 
  

 40 

 (ii) if any Relevant Document is adjudicated by the Inland Revenue as being free of ad
valorem stamp duty and any amount standing to the credit of the Stamp Duty Reserve Account represents an Attributable Stamp Duty Reserve Amount in relation to that Relevant Document, the said amount shall be released provided that no amount
shall be released from the Stamp Duty Reserve Account pursuant to this Section 5.01(t) if either of the Rating Agencies shall have indicated that such release would cause a downgrading of any debt which is secured on the debt under this
Agreement; 
  
 (iii) subject to the written
consent of the Administrative Agent acting reasonably, if the Rating Agencies shall confirm (following a request from the Borrower or otherwise) that the release of a given amount from the Stamp Duty Reserve Account would not cause a down-grading of
any debt which is secured on the debt under this Agreement without reference to any credit support provided through the PARCO Asset Purchase Agreement and the Sheffield Asset Purchase Agreement. 
  
 (iv) if at any time the Borrower shall either (A) have no
outstanding rights or claims against any Obligors and shall have ceased to acquire any rights in respect of Receivables, or (B) shall have discharged all of its liabilities under this Agreement and there is no prospect of any further Loans being
made, any funds remaining in the Stamp Duty Reserve Account at that time shall be released. 
  
 SECTION 5.02. Negative Covenants of the Borrower. During the term of this Agreement, unless each Funding Agent shall otherwise consent in writing: 
  
 (a) No Sales, Liens, etc. Except as otherwise provided herein and in the Contribution Agreement, the Borrower shall
not sell, assign (by operation of law or otherwise) or otherwise dispose of, or create or suffer to exist any Adverse Claim, other than Permitted Liens, upon (or the filing of any financing statement) or with respect to (x) any of the Collateral, or
(y) any Lock-Box Account or the UK Collection Account. 
  
 (b)
No Mergers, etc. The Borrower shall not (i) consolidate or merge with or into any other Person, or (ii) sell, lease or transfer all or substantially all of its assets to any other Person. 
  
 (c) Change in Payment Instructions to Obligors; Deposits to Lock-Box
Accounts or UK Collection Accounts. The Borrower shall not add or terminate any bank as a Lock-Box Bank or UK Collection Account Bank, as applicable, or any account as a Lock-Box Account or UK Collection Account, as applicable, to or from those
listed in Exhibit B hereto or make any change in its instructions to Obligors regarding payments to be made to any Lock-Box Account or UK Collection Account, unless (i) such instructions are to deposit such payments to another existing
Lock-Box Account or UK Collection Account or (ii) the Administrative Agent shall have received written notice of such addition, termination or change at least thirty (30) days prior thereto and the Administrative Agent shall have received a Lock-Box
Agreement or UK Collection Account Agreement, as applicable, executed by each new Lock-Box Bank, UK Collection Account Bank or an existing Lock-Box Bank or UK Collection Account Bank 

  

 41 

 
with respect to each new Lock-Box Account or UK Collection Account, as applicable. The Borrower shall not knowingly deposit or otherwise credit, or cause or
permit to be so deposited or credited, to any Lock-Box Account or UK Collection Account cash or cash proceeds other than Collections of Receivables. 
  
 (d) Change of Name, etc. The Borrower shall not change its name, identity or structure or the location of its chief executive office, unless at
least sixty (60) days prior to the effective date of any such change the Borrower delivers to the Administrative Agent and the Collection Agent (i) such documents, instruments or agreements, executed by the Borrower as are necessary to reflect such
change and to continue the perfection of the Administrative Agent’s ownership interests or security interests in the Collateral and (ii) new or revised Lock-Box Agreements and UK Collection Account Agreements executed by the Lock-Box Banks or
UK Collection Account Bank which reflect such change and enable the Administrative Agent to continue to exercise its rights contained in Section 2.08 hereof. 
  
 (e) Amendment to Contribution Agreement. The Borrower shall not, and shall not permit the Contributor to, amend,
modify, or supplement the Contribution Agreement or any Receivables Purchase Agreement, except with the prior written consent of the Administrative Agent (in consultation with the Funding Agents); nor shall the Borrower take, or permit the
Contributor to take, any other action under the Contribution Agreement or any Receivables Purchase Agreement that shall have a Material Adverse Affect on the Administrative Agent, either Funding Agent, any Lender or which is inconsistent with the
terms of this Agreement. 
  
 (f) Other Debt. Except as
provided for herein or in the Contribution Agreement, the Borrower shall not create, incur, assume or suffer to exist any indebtedness whether current or funded, or any other liability other than (i) indebtedness of the Borrower representing fees,
expenses and indemnities arising hereunder or under the Contribution Agreement in connection with the contribution of the Receivables; (ii) other indebtedness incurred in the ordinary course of its business to the extent permitted or required
thereunder and under any other Transaction Document and (iii) additional indebtedness in an amount not to exceed $10,000. 
  
 (g) ERISA Matters. The Borrower shall not (i) engage or permit any of its ERISA Affiliates to engage in any prohibited transaction (as defined in
Section 4975 of the Code and Section 406 of ERISA) for which an exemption is not available or has not previously been obtained from the U.S. Department of Labor; (ii) permit to exist any accumulated funding deficiency (as defined in Section 302(a)
of ERISA and Section 412(a) of the Code) or funding deficiency with respect to any Benefit Plan other than a Multiemployer Plan; (iii) fail to make any payments to any Multiemployer Plan that the Borrower or any ERISA Affiliate of the Borrower is
required to make under the agreement relating to such Multiemployer Plan or any law pertaining thereto; (iv) terminate any Benefit Plan so as to result in any liability; or (v) permit to exist any occurrence of any reportable event described in
Title IV of ERISA which represents a material risk of a liability to the Borrower or any ERISA Affiliate of the Borrower under ERISA or the Code. 
  

 42 

 (h) Sale Treatment. The Borrower shall not (i) account for (including for accounting purposes), or
otherwise treat, the transactions contemplated by the Contribution Agreement in any manner other than as an absolute disposition of Receivables by the Contributor to the Borrower, or (ii) account for or otherwise treat the transactions contemplated
hereby in any manner other than as a borrowing by the Borrower from the Lenders. In addition, the Borrower shall disclose (in a footnote or otherwise) in all of its financial statements (including any such financial statements consolidated with any
other Persons’ financial statements) the existence and nature of the transaction contemplated hereby and by the Contribution Agreement and the interest of the Borrower and the Lenders in the Collateral. 
  
 (i) Separate Business. The Borrower shall not engage in any business
not permitted by its Constituent Documents as in effect on the Signing Date. 
  
 (j) Limitation on Guarantee Obligations. The Borrower shall not become or remain liable, directly or contingently, in connection with any Indebtedness or other liability of any other Person, whether by
guarantee, endorsement (other than endorsements of negotiable instruments for deposit or collection in the ordinary course of business and reimbursement and indemnification obligations in favor of the Administrative Agent, the Funding Agents or the
Lenders as provided for under this Agreement and the other Transaction Documents), agreement to purchase or repurchase, agreement to supply or advance funds, or otherwise, except in connection with its indemnification obligations to the limited
extent provided in its Constituent Documents; provided that any such indemnification shall be paid solely from funds available to the Borrower which are not otherwise needed to be applied to the payment of any amounts pursuant to this
Agreement, shall be non-recourse other than with respect to proceeds in excess of the proceeds necessary to make such payment, and shall not constitute a claim against the Borrower to the extent that insufficient proceeds exist to make such payment.

  
 (k) Limitation on Dividends and Other Payments. The
Borrower shall not declare or pay any dividend on, or make any payment on account of, or set apart assets for a sinking or other analogous fund for, the purchase, redemption, defeasance, retirement or other acquisition of, any shares of any class of
its share capital, whether now or hereafter outstanding, or make any other distribution in respect thereof, either directly or indirectly, whether in cash or property or in obligations of the Borrower (any of the foregoing, a “restricted
payment”), unless (i) at the date such restricted payment is made, the Borrower shall have made all payments in respect of its obligations pursuant to this Agreement due and payable at such date, (ii) such restricted payment is effected in
accordance with all corporate and legal formalities applicable to the Borrower and (iii) the Borrower maintains at such date Eligible Receivables in an amount equal to at least the product of the aggregate Outstanding Loans and the Dividend Test
Ratio; provided, however, that (A) no restricted payment shall be made on any date if a Specified Potential Termination Event or a Termination Event has occurred and is continuing (or would occur as a result of such payment) on such
date and (B) all restricted payments made on any date shall be payable by the Borrower solely from funds available to the Borrower which are not otherwise needed on such date to be applied to the payment of any amounts by the Borrower pursuant to
this Agreement. 
  

 43 

 (l) Addition of Originators. The Borrower shall not agree to the addition of any Additional
Originators other than pursuant to the terms of Section 8.15 hereof. 
  
 (m) Stamp Duty Group. The Borrower shall not take any steps or action which would result in the Borrower ceasing to be associated with the Contributor and the Originator for the purposes of Section 42 of the
Finance Act, 1930. 
  
 SECTION 5.03. Representations,
Warranties and Covenants of the Contributor. The Contributor hereby reaffirms to each Funding Agent and each Lender its covenants made to the Borrower in Article V of the Contribution Agreement. 
  
 SECTION 5.04. Covenant of the Administrative Agent. The Administrative
Agent, promptly after receipt, shall transmit by telephone, telecopy or telefax to each Lender, all communications that are required to be delivered to the Administrative Agent under this Agreement or any other Transaction Document and all
communications that are received from the Borrower or on behalf of the Lenders in connection with any Transaction Document. Notwithstanding any provision of this Agreement to the contrary, the Required Lenders shall have the exclusive right to
direct the Administrative Agent to give or withhold any consent or direction for any action that requires the consent or direction of the Administrative Agent and the Administrative Agent hereby acknowledges such right and agrees to take such
direction from the Required Lenders. 
  
 ARTICLE VI 
  
 Administration and Collections 
  
 SECTION 6.01. Appointment of Collection Agent. The servicing,
administering and collection of the Receivables shall be conducted by such Person (the “Collection Agent”) so designated from time to time in accordance with this Section 6.01. Until the Administrative Agent gives written
notice to the Contributor and each Funding Agent of the designation of a new Collection Agent, The Chase Manhattan Bank is hereby designated as the Collection Agent. Prior to the Closing Date, the Collection Agent shall, upon notice to the Borrower
and each Funding Agent, assign all of its rights, duties and obligations as Collection Agent to MEMEC LLC. After the Closing Date, the Collection Agent may not delegate any of its rights, duties or obligations hereunder, or designate a substitute
Collection Agent, without the prior written consent of each Funding Agent; provided that the Collection Agent shall be permitted to delegate its duties hereunder to any of its Affiliates or their agents, but such delegation shall not relieve
the Collection Agent of its duties and obligations hereunder. After the Closing Date, the Administrative Agent may, and upon the direction of the Required Lenders the Administrative Agent shall, but only following the declaration of a Collection
Agent Default or any other Termination Event, designate as Collection Agent any Person (including either Funding Agent) to succeed the Collection Agent or any successor Collection Agent, on the condition in each case that any such Person so
designated shall 

  

 44 

 
agree to perform the duties and obligations of the Collection Agent pursuant to the terms hereof. Following the declaration of a Collection Agent Default or
a Termination Event, the Administrative Agent may notify any Obligor of the Receivables of the designation of a successor Collection Agent. 
  
 SECTION 6.02. Duties of Collection Agent. 
  
 (a) The Collection Agent shall take or cause to be taken all such action as may be necessary or advisable to collect each Receivable from time to time,
all in accordance with applicable laws, rules and regulations, with reasonable care and diligence, and in accordance with the Credit and Collection Policy with respect to such Receivables. Each of the Borrower, each Lender and the Administrative
Agent, hereby appoints as its agent the Collection Agent, from time to time designated pursuant to Section 6.01 hereof, to enforce its respective rights and interests in and under the Collateral. To the extent permitted by applicable law,
each of the Borrower and the Contributor (to the extent not then acting as Collection Agent hereunder) hereby grants to any Collection Agent appointed hereunder an irrevocable power of attorney to take in the Borrower’s and/or the
Contributor’s name and on behalf of the Borrower or the Contributor any and all steps necessary or desirable, in the reasonable determination of the Collection Agent and subject to the Credit and Collection Policies, to collect all amounts due
under any and all Receivables, including, without limitation, endorsing the Borrower’s and/or the Contributor’s name on checks and other instruments representing Collections and enforcing such Receivables and the related Contracts. The
Collection Agent shall segregate and deposit to the appropriate account each Lender’s allocable share of Collections of Receivables when required pursuant to Article II hereof. The Borrower shall deliver to the Collection Agent and the
Collection Agent shall hold in trust for the Borrower, each Lender and the Administrative Agent, in accordance with their respective interests, all Records which evidence or relate to the Collateral. Notwithstanding anything to the contrary
contained herein, the Administrative Agent (at the direction of the Required Lenders) shall have the absolute and unlimited right to direct the Collection Agent (whether the Collection Agent is the Contributor or any other Person) to commence or
settle any legal action to enforce collection of any Receivable or to foreclose upon or repossess any Related Security. The Collection Agent shall not make the Administrative Agent, the Funding Agents or any Lender a party to any litigation without
the prior written consent of such Person. 
  
 (b) If the
Collection Agent is not the Borrower, the Contributor or an Affiliate of the Borrower or the Contributor, the Collection Agent, by giving three (3) Business Days’ prior written notice to the Administrative Agent, may revise the Servicing Fee;
provided that such revised Servicing Fee shall be a reasonable fee agreed upon by the Collection Agent and the Administrative Agent (in consultation with the Funding Agents) reflecting rates and terms prevailing at such time as would be
negotiated on an arm’s-length basis. The Collection Agent, if other than the Borrower or the Contributor or an Affiliate of the Borrower or the Contributor, shall as soon as practicable upon demand, deliver to the Contributor all Records in its
possession which evidence or relate to indebtedness of an Obligor which is not a Receivable. 
  

 45 

 (c) On or before one hundred twenty (120) days after the end of each fiscal year of the Collection Agent,
beginning with the fiscal year ending in the year in which the Closing Date occurs, the Collection Agent shall cause a firm of independent public accountants acceptable to the Administrative Agent at the expense of the Borrower (who may also render
other services to the Collection Agent, the Borrower, the Contributor or any Affiliates of any of the foregoing) to furnish a report to the Administrative Agent and the Borrower to the effect that they have (i) selected at least one Settlement
Statement for each fiscal quarter delivered during the fiscal year then ended and verified that the amounts presented on such Settlement Statement relating to sales, total dilution, net sales, collections, write-offs and aging of Receivables agreed
with the information contained within the Collection Agent’s underlying accounting records for such Settlement Period, (ii) recalculated the Net Receivables Balance as of the end of at least one Settlement Period of each fiscal quarter, (iii)
verified that the Receivables treated by the Collection Agent as Eligible Receivables in fact satisfied the requirements of clauses (iii), (iv) and (viii) of the definition of such term contained herein, (iv) selected at least one Settlement
Statement for each fiscal quarter and a sample of twenty-five (25) Receivables and verified that the Collection Agent’s records and computer system used in servicing the Receivables contained correct information with regard to outstanding
balances, and (v) selected at least one Settlement Statement for each fiscal quarter and selected a sample of twenty-five (25) Receivables (which can be the same twenty-five (25) Receivables selected in clause (iv) above) and verified that such
Receivables were included in the proper aging category on such Settlement Statement based on the dates listed on the original Contracts for such Receivables, except, in each case for (a) such exceptions as such firm shall believe to be immaterial
(which exceptions need not be enumerated) and (b) such other exceptions as shall be set forth in such statement. 
  
 (d) The Collection Agent shall furnish to the Administrative Agent from time to time such information with respect to the Receivables as the
Administrative Agent may reasonably request, including, without limitation, listings identifying the Obligor and the Outstanding Balance for each Receivable, together with an aging of Receivables. The Collection Agent will at any time and from time
to time during regular business hours and upon reasonable notice permit the Administrative Agent or its agents or representatives, (i) to examine and make copies of and abstracts from all Records and (ii) to visit the offices and properties of the
Collection Agent for the purpose of examining such Records, and to discuss matters relating to Receivables or the Collection Agent’s performance hereunder and under the other Transaction Documents to which the Collection Agent is a party with
any of the officers, directors, employees or independent public accountants of the Borrower having knowledge of such matters. 
  
 (e) Notwithstanding anything to the contrary contained in this Article VI, the Collection Agent, if not the Borrower, the Contributor or any
Affiliate of the Borrower or the Contributor, shall have no obligation to collect, enforce or take any other action described in this Article VI with respect to any indebtedness that is not included in the Collateral other than to deliver to
the Borrower the collections and documents with respect to any such indebtedness as described in Section 6.02(b) hereof. 
  

 46 

 SECTION 6.03. Rights After Designation of New Collection Agent. At any time following the
designation of a Collection Agent other than the Contributor or Borrower pursuant to the penultimate sentence of Section 6.01 hereof: 
  
 (a) The Administrative Agent may, at its option, or shall, at the direction of the Required Lenders, direct that payment of all amounts payable under any
Receivable be made directly to the Administrative Agent or its designee for the benefit of the Lenders. 
  
 (b) The Borrower shall, at the Administrative Agent’s request and at the Borrower’s expense, give notice of the Lenders’ or the
Borrower’s interest in of Receivables to each Obligor and direct that payments be made directly to the Administrative Agent or its designee. 
  
 (c) The Borrower shall, at the Administrative Agent’s request, (A) assemble all of the Records, and shall make the same available to the
Administrative Agent or its designee at a place selected by the Administrative Agent or its designee, and (B) segregate all cash, checks and other instruments received by it from time to time constituting Collections of Receivables in a manner
acceptable to the Administrative Agent and shall, promptly upon receipt, remit all such cash, checks and instruments, duly endorsed or with duly executed instruments of transfer, to the Administrative Agent or its designee. 
  
 (d) The Borrower and the Contributor hereby authorize the Administrative
Agent to take any and all steps in the Borrower’s or the Contributor’s name and on behalf of the Borrower and the Contributor necessary or desirable, in the determination of the Administrative Agent (in consultation with the Funding
Agents), to collect all amounts due under any and all Receivables, including, without limitation, endorsing the Borrower’s or the Contributor’s name on checks and other instruments representing Collections and enforcing such Receivables
and the related Contracts. 
  
 SECTION 6.04. Collection Agent
Default. At any time following the Closing Date, upon the occurrence of any one or more of the following events the Administrative Agent may, or at the direction of the Required Lenders shall, by notice to the Borrower and the Collection Agent,
declare a Collection Agent Default (each, a “Collection Agent Default”): 
  
 (a) (i) the Collection Agent or, to the extent that the Borrower, the Contributor or any Affiliate of the Borrower or the Contributor is then acting as Collection Agent, the Borrower, the Contributor or such
Affiliate, as applicable, shall fail to observe or perform any material term, covenant or agreement hereunder (other than as referred to in clause (ii) of this Section 6.04(a)), and such failure shall remain unremedied for three (3) Business
Days, after a Responsible Officer of the Collection Agent has knowledge thereof or (ii) the Collection Agent or, to the extent that the Borrower, the Contributor or any Affiliate of the Borrower, or the Contributor is then acting as Collection
Agent, the Borrower, the Contributor or such Affiliate, as applicable, shall fail to make any payment or deposit required to be made by it hereunder when due or the 

  

 47 

 
Collection Agent shall fail to observe or perform in any material respect any term, covenant or agreement on the Collection Agent’s part to be performed
under Section 2.08(b) hereof; or 
  
 (b) failure of the
Collection Agent or any Loan Party or a Material Subsidiary to make any payment on any of its Indebtedness having a principal amount of $5,000,000 or more when the same becomes due and payable (whether by scheduled maturity, required prepayment,
acceleration, demand or otherwise); or any other event shall occur or condition shall exist under any agreement or instrument relating to any such Indebtedness, if the effect of such event or condition is to accelerate the maturity of such
Indebtedness or for the maturity of such Indebtedness to become capable of acceleration; or any Indebtedness of the Collection Agent or any Loan Party or Material Subsidiary shall be declared to be due and payable or required to be prepaid or
repurchased (other than by a regularly scheduled required prepayment) prior to the scheduled date of maturity thereof; or 
  
 (c) any Event of Bankruptcy shall occur and be continuing with respect to the Collection Agent or any of its Material Subsidiaries; 
  
 (d) one or more judgments or orders (or other similar process) involving, in
any single case or in the aggregate, an amount in excess of $5,000,000 in the case of a money judgment, to the extent not covered by insurance, shall be rendered against the Collection Agent, any Loan Party or one or more Material Subsidiaries and
shall remain unpaid and either (i) enforcement proceedings shall have been commenced by any creditor upon such judgment or order or (ii) there shall be any period of ten (10) consecutive days during which a stay of enforcement of such judgment or
order, by reason of a pending appeal or otherwise, shall not be in effect; or 
  
 (e) any execution, distress or similar proceeding is levied against, or an lienholder takes possession of, the whole or a material part (having a value of more than $5,000,000 of the property, undertaking or assets of
the Collection Agent, any Loan Party or any Material Subsidiaries which are not discharged within twenty one (21) days of commencement; or 
  
 (f) or under the authority of any Governmental Authority, (a) the management of the Collection Agent, any Loan Party or any Material Subsidiaries is
wholly or partially displaced, or (b) the authority of the Collection Agent, any Loan Party or any Material Subsidiaries in the conduct of its business is wholly or partially curtailed, or (c) all or a majority of the issued shares of the Collection
Agent, any Loan Party or any of its Material Subsidiaries or the whole or any part (the book value of which is 20% or more of the book value of the whole) of its revenues or costs is seized, nationalized or compulsorily acquired; or 
  
 (g) an ERISA Event shall occur and the amount of all liabilities and
deficiencies resulting therefrom, whether or not assessed, could have a Material Adverse Effect; or 
  

 48 

 (h) any provision of any this Agreement, after delivery hereof, shall for any reason cease to be valid
and binding, or enforceable against, on the Collection Agent party thereto; or 
  
 (i) the Collection Agent ceases to carry on any material part of the business if to do so would result in the business of the Collection Agent taken as a whole being materially different from that which it is on the
date hereof; or 
  
 (j) subsequent to the Closing Date, any event
or circumstance shall occur which has a Material Adverse Effect on the business, assets or financial condition of the Collection Agent and its Subsidiaries taken as a whole; or 
  
 (k) the Authorized Accountants qualify the audited consolidated Financial Statements of the Group. 
  
 SECTION 6.05. Responsibilities of the Borrower and the Contributor.
Anything herein to the contrary notwithstanding, the Borrower shall, and/or shall cause the Contributor to, (a) perform all of the Contributor’s obligations under the Contracts related to the Receivables to the same extent as if interests in
such Receivables had not been pledged hereunder and contributed under the Contribution Agreement and the exercise by the Administrative Agent, the Funding Agents and Lenders of their rights hereunder and under the Contribution Agreement shall not
relieve the Borrower or the Contributor from such obligations and (b) pay when due any taxes, including without limitation, any sales taxes payable in connection with the Receivables and their creation and satisfaction. None of the Administrative
Agent, the Funding Agents or any Lender shall have any obligation or liability with respect to any Receivable or related Contracts, nor shall it be obligated to perform any of the obligations of the Contributor thereunder. 
  
 SECTION 6.06. Indemnification of the Borrower, the Contributor, the
Funding Agents and the Lenders. 
  
 The Collection Agent shall
indemnify and hold harmless the Contributor, the Borrower, the Administrative Agents, the Funding Agents and each Lender (collectively, the “Indemnified Persons”) from and against any loss, liability, expense, damage or injury
suffered or sustained by any Indemnified Person by reason of any acts, omissions or alleged acts or omissions of the Collection Agent, including, but not limited to any judgment, award, settlement, reasonable attorneys’ fees and other costs or
expenses incurred in connection with the defense of any actual or threatened action, proceeding or claim. Notwithstanding the foregoing, the Collection Agent shall not indemnify an Indemnified Person if such loss, liability, expense, damage or
injury results or arises as a result of fraud, gross negligence (unless such Indemnified Person is expressly held to a higher standard of care by this Agreement) or breach of fiduciary duty by such Indemnified Person. The provisions of this
indemnity shall run directly to and be enforceable by an injured party subject to the limitations hereof. 
  
 The obligations of the Collection Agent under this Section 6.06 shall survive the termination of this Agreement. 
  

 49 

 ARTICLE VII 
  
 Termination Events 
  
 SECTION 7.01. Termination Events. The occurrence of any one or more of the following events shall constitute a Termination Event: 
  
 (a) the Borrower or the Collection Agent shall fail to make any payment or
deposit to be made by it hereunder or under any of the Transaction Documents when due hereunder or thereunder and (i) with respect to any payment of the principal amount of any Loan, such failure continues for one (1) Business Day and (ii) with
respect to any payment of any other amount due and owing, such failure continues for two (2) consecutive Business Days; provided however that if the failure to make any payment or deposit is caused solely by the failure of the relevant
banking money transmission system through which such payment or deposit was effected, the period of time referred to in (i) and (ii) above shall be a period of five (5) days; or 
  
 (b) any representation, warranty, certification or statement made by the Borrower or the Contributor in this Agreement, any
other Transaction Document to which it is a party or in any other document delivered pursuant hereto or thereto, shall prove to have been incorrect in any material respect when made or deemed made; provided that no such event shall constitute
a Termination Event unless such event shall continue unremedied for a period of thirty (30) days from the date a Responsible Officer of the Borrower obtains knowledge thereof; provided, further, that no grace period shall apply to
Sections 3.01(b), 3.01(c), 3.01(i), 3.01(n) and 3.01(o) of this Agreement; or 
  
 (c) (i) the Borrower or the Collection Agent shall fail to observe or perform any covenant contained in Sections 5.01(a)(iv), 5.02(a),
5.02(c), 5.02(d), 5.02(e), 5.02(g), 5.02(i) and 5.02(j) and such default shall continue for five (5) consecutive Business Days after the earliest to occur of (x) the date upon which a Responsible Officer of
such party obtains actual knowledge of such failure or (y) the date on which written notice of such failure, requiring the same to be remedied, shall have been given to the Borrower or the Collection Agent, as applicable, by the Administrative
Agent; or (ii) the Borrower or the Collection Agent shall fail to observe or perform any other covenant or agreement applicable to it contained herein (other than as specified in Section 7.01(a) or 7.01(c)(i) hereof) that has a
Material Adverse Effect with respect to it and that continues unremedied until thirty (30) days after the earlier to occur of (x) the date upon which a Responsible Officer of the Borrower or the Collection Agent, as applicable, obtains actual
knowledge of such failure or (y) the date on which written notice of such failure, requiring the same to be remedied shall have been given to the Borrower or the Collection Agent, as applicable, by the Administrative Agent; or 
  
 (d) failure of the Borrower to pay when due any amounts due under any
agreement to which the Borrower is a party and under which any Indebtedness greater than $500,000 is governed; or the default by the Borrower in the performance of any term, provision or condition contained in any agreement to which the Borrower is
a party and under which any Indebtedness owing by the Borrower greater than $500,000 

  

 50 

 
was created or is governed, the effect of which default is to cause, or to permit the holder or holders of such Indebtedness (or a trustee or agent on behalf
of such holder or holders) to cause, such Indebtedness to become due prior to its stated maturity; or any Indebtedness owing by the Borrower greater than $500,000 shall be declared to be due and payable or required to be prepaid (other than by a
regularly scheduled payment) prior to the date of maturity thereof; or 
  
 (e) any Event of Bankruptcy shall occur with respect to the Borrower or any of its Subsidiaries; or 
  
 (f) after the filing in the appropriate offices of the financing statements described in Sections 4.01(c), 4.01(d), 4.01(e) and
4.01(f), the Administrative Agent, on behalf of the Lenders, shall, for any reason, fail or cease to have a valid and perfected first priority ownership or security interest in the Collateral, free and clear of any Adverse Claims, other than
Permitted Liens; or 
  
 (g) a Collection Agent Default shall have
been declared; or 
  
 (h) the Borrower shall enter into any
corporate transaction or merger whereby it is not the surviving entity or as a result of which the nature of its business materially changes; or 
  
 (i) there has been a change in the ability of the Collection Agent to implement its collection procedures or exercise its rights with respect to the
Receivables which would result in a material adverse change in the overall collectability of the Receivables taken as a whole; or 
  
 (j) (i) the Percentage Factor exceeds the Maximum Percentage Factor unless the Borrower reduces the Outstanding Loans or increases the balance of the
Receivables and/or cash in the Funding Account on the Business Day following such breach so as to reduce the Percentage Factor to less than or equal to 100%; or (ii) the Outstanding Loans shall exceed the Facility Limit; or 
  
 (k) the average Dilution Ratio for the two preceding Settlement Periods
exceeds 9.0%; or 
  
 (l) the average Default Ratio for the three
(3) preceding Settlement Periods exceeds 8.0%; or 
  
 (m) a
Responsible Officer of the Borrower receives notice or becomes aware that a notice has been filed to the effect that the security interest granted hereunder is not enforceable; or 
  
 (n) a Termination Event shall have occurred under the Contribution Agreement or the Contribution Agreement shall have been
terminated; or 
  

 51 

 (o) the representation made by the Borrower Section 3.01(u) shall prove to be untrue when made or
deemed made and shall not have been cured pursuant to the provision of Section 5.01(p) hereof; or 
  
 (p) for any Settlement Period, DSO shall be more than sixty (60) days. 
  
 SECTION 7.02. Remedies Upon the Occurrence of a Termination Event. 
  
 (a) (i) Upon the occurrence of any Termination Event, the Borrower shall
deliver notice thereof immediately upon a Responsible Officer of the Borrower obtaining actual knowledge thereof, and the Administrative Agent may, or at the direction of the Required Lenders shall, by notice to the Borrower and the Collection
Agent, declare the Termination Date to have occurred; provided, however, that in the case of any event described in Sections 7.01(e), 7.01(f), and 7.01(j) above, the Termination Date shall be deemed to have
occurred automatically upon the occurrence of such event; 
  
 (ii) Notwithstanding the foregoing, if a Termination Event described in Section 7.01 hereof shall have occurred and if the Borrower or the Collection Agent subsequently cures such Termination Event following
the expiration of the cure period described therein, if any, then (A) the Borrower may deliver to the Administrative Agent a request to waive the Termination Event and (B) the Administrative Agent (in consultation with each Funding Agent) may notify
the Borrower of the Lender’s decision to waive such Termination Event or declare the Termination Date to have occurred; provided, however, in the case of a Termination Event described in Section 7.01(a), the Administrative
Agent shall notify the Borrower of its decision to declare a Termination Date within three (3) Business Days of receipt of the request from the Borrower; provided further, the foregoing shall have no applicability to Termination Events
arising as a result of Sections 7.01(e), 7.01(f) and 7.01(j); 
  
 (iii) At all times after the declaration or automatic occurrence of the Termination Date pursuant to this Section 7.02(a), the Base
Rate plus 1.5% shall be the Tranche Rate applicable to the Outstanding Loans for all existing and future Tranches. If an event or condition shall have occurred which constitutes a Potential Termination Event, the Borrower shall deliver notice
thereof immediately upon a Responsible Officer of the Borrower obtaining actual knowledge thereof, and the Administrative Agent may, by notice to the Borrower, declare such event or condition a Potential Termination Event. 
  
 (b) In addition, if any Termination Event occurs hereunder, (i) the
Administration Agent shall promptly notify the Borrower in writing whether it has declared a Termination Date or a Potential Termination Date and whether it will be exercising the remedies specified in this Section 7.02, (ii) the
Administrative Agent, on 

  

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behalf of the Lenders, shall have all of the rights and remedies provided to a secured creditor or a purchaser of accounts under the Relevant UCC by
applicable law in respect thereto and (iii) if the Administrative Agent so elects (in consultation with each Funding Agent) (A) the Facility Limit shall be reduced as of each calendar date thereafter to an amount equal to the Outstanding Loans as of
such date, (B) the Percentage Factor shall be increased to 100% and (C) no Commercial Paper with respect to the Borrower will thereafter be issued by the CP Conduit Lenders. 
  
 (c) If a Termination Event shall occur, the Administrative Agent, at the written direction of the Required Lenders, shall
(a) deliver notice to the Collection Agent advising the Collection Agent that the Administrative Agent is thereby exercising exclusive control over the Collateral, (b) take possession of the Collateral forthwith or at any time thereafter, in which
case the Borrower shall marshal and deliver the Collateral to the Administrative Agent or its designee at such time and place as the Administrative Agent (in consultation with the Funding Agents) may specify, (c) succeed to the Borrower’s
rights and duties with respect to the Collateral, and (d) in compliance with applicable laws, collect, receive, appropriate and realize upon the Collateral, give an option or options to purchase or sell the whole or, from time to time, any part of
the Collateral, by private or public sale, in such order or otherwise in such manner and at such prices and on such terms and conditions as the Required Lenders may direct the Administrative Agent in writing. The Administrative Agent and the Lenders
shall have, with respect to the Collateral, in addition to any other rights and remedies which may be available to it or them at law or in equity or pursuant to this Agreement or any other contract or agreement, all rights and remedies of a secured
party under any applicable version of the Uniform Commercial Code of the relevant jurisdictions relating to the Collateral. 
  
 SECTION 7.03. Prepayment Under Certain Circumstances. The Borrower agrees to prepay the Outstanding Loans if the Administrative Agent (in
consultation with the Funding Agents) notifies the Borrower of a breach (with a material effect on the Lenders) of any representation or warranty made or deemed made pursuant to Sections 3.01(a), 3.01(b), 3.01(f), 3.01(r)
and 3.01(s) of this Agreement, and the Borrower shall fail to cure or cause to be cured such breach within fifteen (15) days (or, in the case of the representations and warranties in Sections 3.01(c) and 3.01(i), three (3) Business Days) of
such notice. The prepayment price shall be paid by the Borrower to the Funding Agents, for the account of the Lenders, in immediately available funds on such fifteenth (15th) (or third (3rd) day, if applicable) day in an amount equal to the
Aggregate Unpaids. 
  
 ARTICLE VIII 
  
 Miscellaneous 
  
 SECTION 8.01. Term of Agreement. This Agreement shall terminate on the
date following the Termination Date upon which the amount of Outstanding Loans has been reduced to zero, and all accrued Interest, Program Fees, Servicing Fees and all 

  

 53 

 
other Aggregate Unpaids have been paid in full, in each case, in cash; provided, however, that (i) the rights and remedies of the Funding
Agents, the Lenders and the Administrative Agent with respect to any representation and warranty made or deemed to be made by the Borrower or the Contributor pursuant to this Agreement and (ii) the agreements set forth in Sections 8.08 and
8.09 hereof, shall be continuing and shall survive any termination of this Agreement. 
  
 SECTION 8.02. Waivers; Amendments. No failure or delay on the part of the Funding Agents, the Lenders or the Administrative Agent in exercising any power, right or remedy under this Agreement shall operate as a
waiver thereof, nor shall any single or partial exercise of any such power, right or remedy preclude any other further exercise thereof or the exercise of any other power, right or remedy. The rights and remedies herein provided shall be cumulative
and nonexclusive of any rights or remedies provided by law. Any provision of this Agreement may be amended or waived if, but only if, such amendment or waiver is in writing and is signed by the parties hereto and the Required Lenders;
provided, however, that no such amendment or waiver shall, without the consent of each affected Lender, (A) extend the Commitment Expiry Date or the Termination Date or the date of any payment or deposit of Collections by the Borrower
or Collection Agent, (B) reduce the rate or extend the time of payment of any interest or fees hereunder, (C) change the amount of an Lender’s Funding Limit, (D) consent to or permit the assignment or transfer by the Borrower of any of its
rights or obligations under this Agreement, or (E) amend or modify this Section 8.02 or the definition of “Required Lenders”. 
  
 SECTION 8.03. Notices. Except as provided below, all communications and notices provided for hereunder shall be in writing (including telecopy or
electronic facsimile transmission or similar writing) and shall be given to the other party at its address or telecopy number set forth below or at such other address or telecopy number as such party may hereafter specify for the purposes of notice
to such party. Each such notice or other communication shall be effective (i) if given by telecopy, when such telecopy is transmitted to the telecopy number specified in this Section 8.03 and confirmation is received, (ii) if given by mail
three (3) Business Days following such posting, postage prepaid, U.S. certified or registered, (iii) if given by overnight courier, one (1) Business Day after deposit thereof with a national overnight courier service, or (iv) if given by any other
means, when received at the address specified in this Section 8.03. However, anything in this Section 8.03 to the contrary notwithstanding, the Borrower hereby authorizes the Administrative Agent to effect Loans, Tranche Period and
Tranche Rate selections based on telephonic notices made by any Person which the Administrative Agent in good faith believes to be acting on behalf of the Borrower. The Borrower agrees to deliver promptly to the Administrative Agent a written
confirmation of each telephonic notice signed by an authorized officer of Borrower. However, the absence of such confirmation shall not affect the validity of such notice. If the written confirmation differs in any material respect from the action
taken by the Administrative Agent, the records of the Administrative Agent shall govern absent manifest error. 
  

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 If to a CP Conduit Lender and the Funding Agent with respect to such CP Conduit Lender, at their
respective addresses set forth on Schedule A. 
  
 If to the
Borrower: 
  
 Triangle Receivables Funding LLC 
 c/o Memec, LLC 
 9980 Huennekens Street

 San Diego, CA 92121 
  
 Attention: Doug Lindroth 
 Telephone:
858-450-8500 
 Telecopy: 858-450-8857 
 Payment Information: 
  
 ABA 
 Account 
 Reference 
  
 If to the Collection Agent: 
  
 The Chase Manhattan Bank 
 450 West 33rd Street, 15th Floor 
 New York,
New York 10001 
  
 Attention: Lara Graff, Vice President

 Telephone: 212-946-3748 
 Telecopy: 212-946-8098 
  
 with a copy to: 

 
 Chase Securities Inc. 
 270 Park Avenue, 7th Floor 
 New York, New
York 10019 
  
 Attention: Tino Luzano 
 Telephone: 212-834-5381 
 Telecopier:
212-834-6562 
  

 55 

 If to the Administrative Agent: 
  
 The Chase Manhattan Bank 
 450 West 33rd Street, 15th Floor 
 New York, New York 10001 
  
 Attention: Lara Graff, Vice President 
 Telephone: 212-946-3748 
 Telecopy:
212-946-8098 
  
 with a copy to: 
  
 Chase Securities Inc. 
 270 Park Avenue, 7th Floor 
 New York, New
York 10019 
  
 Attention: Tino Luzano 
 Telephone: 212-834-5381 
 Telecopier:
212-834-6562 
  
 If to the PARCO APA Banks, at their respective
addresses set forth on Schedule A. 
  
 SECTION 8.04.
Governing Law; Submission to Jurisdiction; Integration. 
  
 (a) This Agreement shall be governed by, and construed in accordance with the laws of the State of New York. Each of the parties hereto hereby submits to the nonexclusive jurisdiction of the United States District Court for the Southern
District of New York and of any New York state court sitting in The City of New York for purposes of all legal proceedings arising out of or relating to this Agreement or the transactions contemplated hereby. Each of the parties hereto hereby
irrevocably waives, to the fullest extent it may effectively do so, any objection which it may now or hereafter have to the laying of the venue of any such proceeding brought in such a court and any claim that any such proceeding brought in such a
court has been brought in an inconvenient forum. Nothing in this Section 8.04 shall affect the right of any party hereto to bring any action or proceeding against any party hereto or its respective properties in the courts of other
jurisdictions. 
  
 (b) Each of the parties hereto hereby waives
any right to have a jury participate in resolving any dispute, whether sounding in contract, tort or otherwise among any of them arising out of, connected with, relating to or incidental to the relationship between them in connection with this
Agreement or the other Transaction Documents. 
  

 56 

 (c) This Agreement contains the final and complete integration of all prior expressions by the parties
hereto with respect to the subject matter hereof and shall constitute the entire Agreement among the parties hereto with respect to the subject matter hereof superseding all prior oral or written understandings. 
  
 (d) The Borrower and the Collection Agent each hereby appoint CT Corporation,
as the authorized agent upon whom process may be served in any action arising out of or based upon this Agreement, the other Transaction Documents to which such Person is a party or the transactions contemplated hereby or thereby that may be
instituted in the United States District Court for the Southern District of New York and of any New York State court sitting in The City of New York by any Lender, any Funding Agent or the Administrative Agent or any assignee of any of them.

  
 SECTION 8.05. Severability; Counterparts. This
Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute one and the same
Agreement. Any provisions of this Agreement which are prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions
hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 
  

SECTION 8.06. Successors and Assigns. 
  
 (a) This Agreement shall be binding on the parties hereto and their respective successors and assigns; provided, however, that neither the
Borrower nor the Contributor may assign any of its rights or delegate any of its duties hereunder or under any of the other Transaction Documents to which it is a party without the prior written consent of the Administrative Agent; provided,
further, that no CP Conduit Lender may assign or transfer any of its rights under this Agreement other than in accordance with this Agreement or otherwise to the APA Bank with respect to such CP Conduit Lender or pursuant to clause (b) below
of this Section 8.06. 
  
 (b) Without limiting the
foregoing, each CP Conduit Lender may, from time to time with prior or concurrent notice to the Borrower and the Administrative Agent, assign the Funding Limit with respect to such CP Conduit Lender (or its related APA Banks, as applicable) and its
rights and obligations under this Agreement and any other Transaction Documents to which it is a party to a Conduit Assignee with respect to such CP Conduit Lender; provided, however, that any such assignment shall be subject to the
condition precedent that such assignment shall not result in adverse tax consequences or increased costs to the Borrower. Upon such assignment by a CP Conduit Lender to a Conduit Assignee, (A) the related administrative or managing agent for such
Conduit Assignee will act as the administrative agent for such Conduit Assignee hereunder, (B) such Conduit Assignee and its liquidity support provider(s) and credit support provider(s) and other related parties shall have the benefit of all the
rights and protections provided to such CP Conduit Lender herein and in the other Transaction Documents 

  

 57 

 
(including, without limitation, any limitation on recourse against such Conduit Assignee), (C) such Conduit Assignee shall assume all of such CP Conduit
Lender’s obligations hereunder or under any other Transaction Document and such CP Conduit Lender shall be released from all such obligations, (D) all distributions in respect of the Outstanding Loans with respect to such CP Conduit Lender
shall be made on behalf of such Conduit Assignee, (E) the definitions of the terms “Monthly Funding Costs” and “Interest” shall be determined in the manner set forth in the definition of “Monthly Funding
Costs” and “Interest” applicable to such CP Conduit Lender on the basis of the interest rate or discount applicable to commercial paper issued by such Conduit Assignee (rather than such CP Conduit Lender), (F) the defined
terms and other terms and provisions of this Agreement and the other Transaction Documents shall be interpreted in accordance with the foregoing, and (G) if requested by the Administrative Agent or administrative agent with respect to the Conduit
Assignee, the parties will execute and deliver such further agreements and documents and take such other actions as the Administrative Agent or such administrative agent may reasonably request to evidence and give effect to the foregoing.

  
 (c) Any Lender may at any time sell all or any part of its
respective rights and obligations under this Agreement, with the prior written consent of the Borrower and the Administrative Agent (which consent shall not be unreasonably withheld), to a multi-seller commercial paper conduit and one or more banks
providing support to such multi-seller commercial paper conduit (an “Acquiring Lender”) pursuant to a transfer supplement, substantially in the form of Exhibit F (the “Lender Supplement”), executed by such
Acquiring Lender, such assigning CP Conduit Lender and the APA Bank with respect to such assigning CP Conduit Lender, the related Funding Agent and the Administrative Agent and delivered to the Administrative Agent. 
  
 (d) The Borrower authorizes each CP Conduit Lender and each APA Bank to
disclose to any Conduit Assignee, Acquiring Lender or any APA Bank that may become a party to an Asset Purchase Agreement with a CP Conduit Lender (each, a “Transferee”) and any prospective Transferee any and all financial
information in such CP Conduit Lender or APA Bank’s possession concerning the Borrower, the Receivables, the Collection Agent and the Transaction Documents which has been delivered to such CP Conduit Lender or APA Bank by the Borrower or the
Administrative Agent in connection with such CP Conduit Lender or APA Bank’s credit evaluation of the Borrower, the Receivables and the Collection Agent. 
  

SECTION 8.07. Confidentiality. 
  
 (a) Each Lender, each Funding Agent and the Administrative Agent agree to keep information obtained by it pursuant hereto confidential in accordance with
such Lender’s, such Funding Agent’s or the Administrative Agent’s, as the case may be, customary practices and agrees that it will only use such information in connection with the transactions contemplated by this Agreement and not
disclose any of such information other than (a) to such Lender’s, Funding Agent’s or the Administrative Agent’s, as the case may be, employees, representatives and agents who are or are expected to be involved in the evaluation of
such information in connection with the 

  

 58 

 
transactions contemplated by this Agreement and who are advised of the confidential nature of such information, (b) to the extent such information presently
is or hereafter becomes available to such Lender, Funding Agent or the Administrative Agent, as the case may be, on a non-confidential basis from a source other than the Borrower or Collection Agent, (c) to the extent disclosure is required by law,
regulation or judicial order or requested or required by bank regulators or auditors, or (d) to assignees or participants or potential assignees or participants or any actual or potential counterparty (or its advisors) to any swap or derivative
transaction relating to the Borrowers and their obligations, who agree to be bound by the provisions of this Section 8.07. 
  
 (b) The Borrower agrees that the terms of this Agreement will not be disclosed by them to any Person (other than their direct and indirect shareholders,
officers, directors, employees, accountants, attorneys and other advisers and on a confidential basis). Notwithstanding the foregoing, (a) to the extent necessary for the purposes of the Memec Acquisition (as defined in the Credit Agreement), the
Borrower may (i) disclose to VEBA AG and its Subsidiaries and Affiliates and its advisers (A) the existence, terms and amount of the Funding Limits hereunder and (B) of the Administrative Agent’s and the Funding Agents’ identities
hereunder and (ii) supply them with a copy of this Agreement (provided that the Borrower may not disclose the fees set out herein or in the Fee Letters), (b) the Borrower may file a copy of this Agreement (provided that they do not file documents
containing the fees set out herein or in the Fee Letters) in any public record in which it is required by law to be filed and (c) the Borrower may make such other public disclosures of the terms and conditions of this Agreement as they are
required by law or by regulation to make or as may be necessary in connection with any legal proceedings relating to this Agreement. 
  
 (c) The Borrower acknowledge and agree that the Administrative Agent, the Funding Agents and the Lenders, and any of their respective subsidiaries,
affiliates or parent undertakings (each a “Specified Entity”) may be providing financing or other services to other Persons with whom you may have conflicting interests. None of the Specified Entities will furnish confidential
information obtained from you to any of its other customers or other Specified Entities (save in the case of any such other Specified Entity on a “need to know” basis but subject to complying with the Chinese wall rules then applied by the
relevant Specified Entities when transacting in a potentially conflicting situation) and no Specified Entity will use such confidential information in connection with its services for any other customer. Equally, none of the Specified Entities will
make available to you confidential information that it obtained or may obtain from any other customer. 
  
 SECTION 8.08. No Bankruptcy Petition Against CP Conduit Lenders and the Borrower. 
  
 (a) Each party hereto hereby covenants and agrees that, prior to the date which is one year and one day after the payment in
full of all outstanding Commercial Paper or other indebtedness of any CP Conduit Lender, it will not institute against, or join any other Person in instituting against, any CP Conduit Lender any 

  

 59 

 
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings or other similar proceeding under the laws of the United States or any state
of the United States. 
  
 (b) Each party hereto hereby covenants
and agrees that, prior to the date which is one year and one day after the payment in full of all outstanding indebtedness of the Borrower, it will not institute against, or join any other Person in instituting against, the Borrower any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings or other similar proceeding under the laws of the United States or any state of the United States. 
  
 SECTION 8.09. Limited Recourse. Notwithstanding anything to the contrary contained herein, the obligations of any CP
Conduit Lender under this Agreement are solely the corporate obligations of such CP Conduit Lender and, in the case of obligations of such CP Conduit Lender other than Commercial Paper, shall be payable at such time as funds are actually received
by, or are available to, such CP Conduit Lender in excess of funds necessary to pay in full all outstanding Commercial Paper and, to the extent funds are not available to pay such obligations, the claims relating thereto shall not constitute a claim
against such CP Conduit Lender but shall continue to accrue. Each party hereto agrees that the payment of any claim (as defined in Section 101 of Title 11 of the Bankruptcy Code) of any such party shall be subordinated to the payment in full of all
Commercial Paper. 
  
 No recourse under any obligation, covenant
or agreement of any CP Conduit Lender contained in this Agreement shall be had against any incorporator, stockholder, officer, director, member, manager, employee or agent of such CP Conduit Lender, the administrative agent or manager of such CP
Conduit Lender or any of their Affiliates (solely by virtue of such capacity) by the enforcement of any assessment or by any legal or equitable proceeding, by virtue of any statute or otherwise; it being expressly agreed and understood that this
Agreement is solely a corporate obligation of such CP Conduit Lender, and that no personal liability whatever shall attach to or be incurred by any incorporator, stockholder, officer, director, member, manager, employee or agent of such CP Conduit
Lender, the administrative agent or the manager of such CP Conduit Lender or any of their Affiliates (solely by virtue of such capacity) or any of them under or by reason of any of the obligations, covenants or agreements of such CP Conduit Lender
contained in this Agreement, or implied therefrom, and that any and all personal liability for breaches by such CP Conduit Lender of any of such obligations, covenants or agreements, either at common law or at equity, or by statute, rule or
regulation, of every such incorporator, stockholder, officer, director, member, manager, employee or agent is hereby expressly waived as a condition of and in consideration for the execution of this Agreement; provided that the foregoing
shall not relieve any such Person from any liability it might otherwise have as a result of fraudulent actions taken or fraudulent omissions made by them. 
  

 60 

 SECTION 8.10. Characterization of the Transactions Contemplated by the Agreement. 
  
 (a) It is the intention of the parties that the transactions contemplated
hereby constitute a financing, the parties intend that the Borrower hereby grants to the Administrative Agent, on behalf of each Lender, a first priority perfected and continuing security interest in all of the Borrower’s right, title and
interest in, to and under the Collateral, and together with all of the Borrower’s rights under the Contribution Agreement with respect to the Receivables and with respect to any obligations thereunder of the Contributor with respect to the
Receivables, and that this Agreement shall constitute a security agreement under applicable law. The Borrower hereby assigns to the Administrative Agent, on behalf of each Lender, all of its rights and remedies under the Contribution Agreement with
respect to the Receivables and with respect to any obligations thereunder of the Contributor with respect to the Receivables. The Borrower agrees that it shall not give any consent or waiver required or permitted to be given under the Contribution
Agreement without the prior consent of the Administrative Agent, such consent not to be unreasonably withheld. 
  
 (b) It is the intention of the parties that the transactions contemplated by this Agreement will create a debt obligation of the Borrower for United
States Federal, state and local income and franchise tax purposes. Unless otherwise required by law, the parties agree to treat the transactions accordingly for all such purposes. 
  
 SECTION 8.11. Waiver of Setoff. Each of the Administrative Agent, the Borrower, the Collection Agent and the
Contributor hereby waives any right of setoff it may have or to which it may be entitled under this Agreement from time to time against each CP Conduit Lender or its respective assets. 
  
 SECTION 8.12. Conflict Waiver. 
  
 (a) Barclays acts as Sheffield Funding Agent and administrative agent for Sheffield, as issuing and paying agent for
Sheffield’s Commercial Paper, as provider of other backup facilities for Sheffield, and may provide other services or facilities from time to time (the “Barclays Roles”). Each of the parties hereto hereby acknowledges and
consents to any and all Barclays Roles, waives any objections it may have to any actual or potential conflict of interest caused by Barclays’ acting as the Sheffield Funding Agent or as an APA Bank under the Sheffield Asset Purchase Agreement
and acting as or maintaining any of the Barclays Roles, and agrees that in connection with any Barclays Role, Barclays may take, or refrain from taking, any action which it in its discretion deems appropriate. 
  
 (b) Chase acts as the Administrative Agent, a PARCO APA Bank, the PARCO
Funding Agent and administrative agent for PARCO, as issuing and paying agent for PARCO’s Commercial Paper, as provider of other backup facilities for PARCO, and may provide other services or facilities from time to time (the “Chase
Roles”). Each of the parties hereto hereby acknowledges and consents to any and all Chase Roles, waives any objections it may have to any actual or potential conflict of 

  

 61 

 
interest caused by Chase’s acting as the Administrative Agent or the PARCO Funding Agent or as a PARCO APA Bank and acting as or maintaining any of the
Chase Roles, and agrees that in connection with any Chase Role, Chase may take, or refrain from taking, any action which it in its discretion deems appropriate. 
  

SECTION 8.13. Liability of Barclays and Chase. Notwithstanding any provision of this Agreement: (i) Neither Barclays nor Chase shall have any
obligations under this Agreement other than those specifically set forth herein, and no implied obligations of Barclays or Chase shall be read into this Agreement; and (ii) in no event shall Barclays or Chase be liable under or in connection with
this Agreement for indirect, special, or consequential losses or damages of any kind, including lost profits, even if advised of the possibility thereof and regardless of the form of action by which such losses or damages may be claimed. Neither
Barclays nor Chase nor any of their respective directors, officers, agents or employees shall be liable for any action taken or omitted to be taken in good faith by it or them under or in connection with this Agreement, except for its or their own
gross negligence or willful misconduct. Without limiting the foregoing, each of Barclays and Chase (a) may consult with legal counsel (including counsel for Sheffield or PARCO, as applicable), independent public accountants and other experts
selected by it and shall not be liable for any action taken or omitted to be taken in good faith by it in accordance with the advice of such counsel, accountants or experts, (b) shall not be responsible to any Lender, the Borrower, the Contributor
or the Collection Agent for any statements, warranties or representations made in or in connection with this Agreement or the other Transaction Documents, (c) shall not be responsible to any Lender, the Borrower, the Contributor or the Collection
Agent for the due execution, legality, validity, enforceability, genuineness, sufficiency or value of this Agreement or the other Transaction Documents, (d) shall incur no liability under or in respect of any of the Commercial Paper or other
obligations of any Lender under this Agreement or the other Transaction Documents and (e) shall incur no liability under or in respect of this Agreement or the other Transaction Documents by acting upon any notice (including notice by telephone),
consent, certificate or other instrument or writing (which may be by facsimile) believed by it to be genuine and signed or sent by the proper party or parties. Notwithstanding anything else herein or in the other Transaction Documents, it is agreed
that where the Barclays or Chase may be required under this Agreement or the other Transaction Documents to give notice of any event or condition or to take any action as a result of the occurrence of any event or the existence of any condition, the
Administrative Agent agrees to give such notice or take such action only to the extent that it has actual knowledge of the occurrence of such event or the existence of such condition, and shall incur no liability for any failure to give such notice
or take such action in the absence of such knowledge. 
  
 SECTION
8.14. Indemnification. The Borrower agrees to pay, indemnify, and hold the Administrative Agent, each Funding Agent and each Lender and each of their respective Affiliates and the officers, directors, employees or any of them or any of their
respective Affiliates (each, an “Indemnitee”) harmless from and against any and all out-of-pocket liabilities (including penalties), obligations, losses, damages, actions, suits, demands, claims, judgments, costs, expenses or
disbursements of any kind or nature whatsoever (including without limitation attorneys fees and disbursements) that 

  

 62 

 
arise out of or in any way relate to or result from or out of (i) the breach of representations, warranties or obligations undertaken in connection with the
Transaction Documents (without prejudice to the provisions of Section 2.09(c) hereof) or (ii) any investigation or defense of, or participation in, any legal proceeding relating to the execution, delivery, enforcement, performance or
administration of the Transaction Documents or any other documents related thereto (whether or not such Indemnitee is a party thereto) (collectively, the “Indemnified Liabilities”); provided that the Borrower shall have no
obligation under this Agreement to any Indemnitee with respect to Indemnified Liabilities arising from the negligence or willful misconduct of such Indemnitee or any other Indemnitee who is an Affiliate of such Indemnitee. Any payments required to
be made by the Borrower under this Section 8.14 shall be due on the third (3rd) Business Day after demand
therefor. Notwithstanding anything in this Agreement to the contrary, the provisions of this Section 8.14 shall survive the termination of this Agreement. Each Indemnitee shall immediately notify the Borrower of any such damage, loss,
liability, cost or expense which such Indemnitee has determined has given or would give rise to a right of indemnification under this Agreement and the Borrower shall have the right to compromise or defend any such liability or claim at its own
expense, which decision shall be binding and conclusive upon such Indemnitee. Failure to give such notice shall not relieve the Borrower of its indemnity under this Agreement; provided that the Borrower shall not be held responsible for any
damage, loss, liability, cost or expense resulting from the failure to give such notice or if such failure results in the forfeiture of substantive rights. 
  
 SECTION 8.15. Addition of Approved Currency, Approved Originators and Approved Obligors Country. At the written request of the Borrower to the
Administrative Agent, the addition of a currency as an Approved Currency, the addition of an originator as an Approved Originator, the addition of a jurisdiction as an Approved Obligor Country after the Signing Date shall be permitted upon
satisfaction of the relevant conditions set forth in this Section 8.15, and such other conditions that the Funding Agents may reasonably request, and the relevant Receivables Purchase Agreement. Notwithstanding satisfaction of the conditions
set forth in this Section 8.15 or a Receivables Purchase Agreement, until such time as Outstanding Loans are reduced to zero, (a) the addition of any Receivables denominated in a currency other than an Approved Currency or (b) the execution
and delivery of any other Receivables Purchase Agreement (other than those entered into on the Signing Date) or (c) the addition of an Additional Originator shall, in each case, require the prior written consent of the Required Lenders. 

 
 (a) Approved Originator. 
  
 (i) The Administrative Agent shall have received
confirmation that there is no pending or threatened action or proceeding affecting such Originator before any Governmental Authority that could reasonably be expected to have a Material Adverse Effect with respect to it; 
  
 (ii) The Administrative Agent shall have received an opinion
of counsel in form and substance satisfactory to it and each Lender from a nationally 

  

 63 

 
recognized law firm qualified to practice in the jurisdiction in which such Originator is located to the effect that the sales of Receivables by such
Originator to the Contributor constitute true sales of such Receivables to the Contributor; 
  
 (iii) The Administrative Agent shall have received an opinion of counsel from a nationally recognized law firm in form and substance
satisfactory to it and each Lender together with such other opinions as were rendered on the in accordance with Section 4.02 hereof with respect to the Originators from one or more nationally recognized law firms authorized to practice law in
the jurisdiction in which such Originator is located, the jurisdictions governing the contracts originated by such Originator (if a jurisdiction is specified) and in New York; 
  
 (iv) The Collection Agent shall have agreed in writing to service such Originator’s Receivables in
accordance with the terms and conditions of this Agreement; 
  
 (v) The Administrative Agent shall have received a certificate prepared by a Responsible Officer of the Collection Agent certifying that after giving effect to the addition of such Originator, the Percentage Factor
shall be equal to or less than the Maximum Percentage Factor; 
  
 (vi) Such Originator shall have executed an Receivables Purchase Agreement, in form and substance satisfactory to the Administrative Agent; 
  
 (vii) Such Originator shall have executed, filed and recorded, at its own expense, all necessary financing
statements or similar documents (if any) with respect to the Receivables (and Related Security) originated and proposed to be sold by it in such manner and such jurisdictions as are necessary to perfect the Borrower’s ownership interest in such
Receivables; 
  
 (viii) The Borrower and the
Administrative Agent shall be satisfied that there are no Liens on the Receivables to be sold by such Originator, except Permitted Liens; and 
  
 (ix) A Lock-Box Account (or an account maintained on substantially identical terms) with respect to the Receivables to be sold by such
Originator shall have been established in accordance with the terms of this Agreement. 
  
 (b) Approved Obligor Country. The Borrower and the Administrative Agent (in consultation with each Funding Agent) shall have consented in advance, in writing, to such inclusion of a jurisdiction as an Approved
Obligor Country. 
  
 (c) Approved Contract Jurisdiction.
The Borrower and the Administrative Agent (in consultation with each Funding Agent) shall have consented in advance, in writing, to inclusion of a jurisdiction as an Approved Contract Jurisdiction. 
  

 64 

 SECTION 8.16. Removal and Withdrawal of Originators and Approved Originators  
  
 (a) At the written request of the Borrower, an Approved Originator may be
removed or terminated as an originator and an Approved Originator may withdraw as an originator, provided that, in each case, (i) such removal or withdrawal is in accordance with the applicable Receivables Purchase Agreement, (ii) the Administrative
Agent (in consultation with each Funding Agent) shall have given its prior written consent to such removal, termination or withdrawal, (iii) no Termination Event or Potential Termination Event has occurred and is continuing or would occur as a
result thereof, (iv) the Administrative Agent shall have received prior written notice of such removal, termination or withdrawal (accompanied by a Daily Report which confirms that the Percentage Factor shall be equal to or less than the Maximum
Percentage Factor after giving effect to such removal, termination or withdrawal). 
  
 (b) An Originator that is removed, terminated or withdraws shall have a continuing obligation with respect to Receivables previously sold by it pursuant to the relevant Receivables Purchase Agreement (including making
dilution adjustment payments, originator adjustment payments and payments in respect of indemnification). 
  
 SECTION 8.17. Benefits of the Agreement. Nothing in this Agreement, expressed or implied, shall give to any Person, other than the parties hereto
and their successors hereunder and the Sheffield Assignees (each of which shall be an express third party beneficiary of this Agreement), any benefit or any legal or equitable right, remedy or claim under this Agreement. 
  

 65 

 IN WITNESS WHEREOF, the parties hereto have executed and delivered this Asset-Backed Loan Agreement as of
the date first written above. 
  

			
	
	TRIANGLE RECEIVABLES FUNDING LLC, as Borrower
		
	 By:
	 	 /s/ [ILLEGIBLE]

	 	 	

	 	 	 Name: Gregory F. Lavelle

	 	 	 Title: Authorised Signatory

	
	THE CHASE MANHATTAN BANK, as Collection Agent
		
	 By:
	 	 /s/ [ILLEGIBLE]

	 	 	

	 	 	 Name: John Zeszutek

	 	 	 Title: Assistant Treasurer

	
	 PARK AVENUE RECEIVABLES CORPORATION,
 as a CP Conduit Lender

		
	 By:
	 	 /s/ ANDREW L. STIDD

	 	 	

	 	 	 Name: Andrew L. Stidd

	 	 	 Title: President

	
	 SHEFFIELD RECEIVABLES CORPORATION, as a
 CP Conduit Lender

		
	 By:
	 	 /s/ JAMIE PRATT

	 	 	

	 	 	 Name: Jamie Pratt

	 	 	 Title: Associate Director

	
	 BARCLAYS BANK PLC, as the Sheffield
 Funding Agent

		
	 By:
	 	 /s/ JAMIE PRATT

	 	 	

	 	 	 Name: Jamie Pratt

	 	 	 Title: Associate Director

  
 [ASSET BACKED LOAN AGREEMENT SIGNATURE PAGE] 
  

			
	
	 THE CHASE MANHATTAN BANK, as the
 Administrative Agent

		
	 By:
	 	 /s/ [ILLEGIBLE]

	 	 	

	 	 	 Name: John Zeszutek

	 	 	 Title: Assistant Treasurer

	
	 THE CHASE MANHATTAN BANK, as a
 PARCO APA Bank

		
	 By:
	 	 /s/ [ILLEGIBLE]

	 	 	

	 	 	 Name: Bradley S. Schwartz

	 	 	 Title: Managing Director

	
	 THE CHASE MANHATTAN BANK, as the
 PARCO Funding Agent

		
	 By:
	 	 /s/ [ILLEGIBLE]

	 	 	

	 	 	 Name: John Zeszutek

	 	 	 Title: Assistant Treasurer

  
 [ASSET BACKED LOAN AGREEMENT SIGNATURE PAGE] 
  

 Schedule A 
  

			
	PARK AVENUE RECEIVABLES CORPORATION	  	FUNDING LIMIT:             $100,000,000

  

			
	 Attention:
 Telecopier:
 Telephone:
 Address:
	  	 Andrew Stidd, President
 212-302-8767
 212-302-8330 ext. 11
 114 West 47th Street,
 Suite 1715
 New York, NY 10036

  

					
	 PARCO FUNDING AGENT:
	  	THE CHASE MANHATTAN BANK
	 	  	Attention:	  	Lara Graff, Vice President
	 	  	Telecopier:	  	212-946-8098
	 	  	Telephone:	  	212-946-3748
	 	  	Address:	  	450 West 33rd Street,
	 	  	 	  	15th Floor
	 	  	 	  	New York, New York 10001
			
	 	  	with a copy to:	  	 
			
	 	  	 	  	Chase Securities Inc.
	 	  	 	  	270 Park Avenue, 7th Floor
	 	  	 	  	New York, New York 10019
	 	  	 	  	Attention: Tino Luzano
	 	  	 	  	Telecopier: 212-834-6562
	 	  	 	  	Telephone: 212-834-5381
		
	 PARCO APA BANKS:
	  	THE CHASE MANHATTAN BANK
	 	  	Attention:	  	Lara Graff, Vice President
	 	  	Telecopier:	  	212-946-8098
	 	  	Telephone:	  	212-946-3748
	 	  	Address:	  	450 West 33rd Street,
	 	  	 	  	15th Floor
	 	  	 	  	New York, New York 10001
			
	 	  	with a copy to:	  	 
			
	 	  	 	  	Chase Securities Inc.
	 	  	 	  	270 Park Avenue, 7th Floor
	 	  	 	  	New York, New York 10019
	 	  	 	  	Attention: Tino Luzano
	 	  	 	  	Telecopier: 212-834-6562
	 	  	 	  	Telephone: 212-834-5381

  

			
	SHEFFIELD RECEIVABLES CORPORATION	  	FUNDING LIMIT:             $200,000,000

  

			
	 Attention:
 Telecopier:
 Telephone:
 Address:
	  	 David Lister
 212 412 6846
 212 412 7659
 c/o Barclays Bank PLC
 222 Broadway, 7th Floor
 New York, NY 10038

  

					
		
	 SHEFFIELD FUNDING AGENT:
	  	BARCLAYS BANKS PLC
			
	 	  	Attention:	  	David Lister
	 	  	Telecopier:	  	212 412 6846
	 	  	Telephone:	  	212 412 7659
	 	  	Address:	  	222 Broadway, 7th Floor
	 	  	 	  	New York, NY 10038

  

 2 

 ANNEX A 
  
 “Acquiring Lender” shall have the meaning assigned to such term in Section 8.06 hereof. 
  
 “Additional Originator” shall mean any Originator added as
an Approved Originator pursuant to Section 8.15 of this Agreement after the Signing Date. 
  
 “Administrative Agent” shall mean The Chase Manhattan Bank, its successors and permitted assigns. 
  
 “Adverse Claim” shall mean a lien, security interest, charge
or encumbrance, or other right or claim in, of or on any Person’s assets or properties in favor of any other Person (including any UCC financing statement or any similar instrument filed against such Person’s assets or properties).

  
 “Affiliate” shall mean, with respect to any
Person, any other Person directly or indirectly controlling, controlled by, or under direct or indirect common control with, such Person. A Person shall be deemed to control another Person if the controlling Person possesses, directly or indirectly,
the power to direct or cause the direction of the management or policies of the controlled Person, whether through ownership of voting Stock, by contract or otherwise. 
  
 “Aggregate Funding Limit” shall mean, at any time, the sum of the Funding Limits then in effect.

  
 “Aggregate Unpaids” shall mean, at any time,
an amount equal to the sum of (i) the aggregate accrued and unpaid Interest with respect to all Tranche Periods at such time, (ii) the Outstanding Loans at such time, and (iii) all other amounts owed (whether due or accrued) hereunder by the
Borrower to the Lenders at such time. 
  
 “APA
Banks” shall mean the PARCO APA Banks and the Sheffield Assignees. 
  
 “Applicable Lending Office” means, with respect to each Lender, its domestic lending office in the case of a BR Tranche, and its eurodollar lending office in the case of a Eurodollar Tranche.

  
 “Applicable Margin” shall mean 2.5%.

  
 “Appropriate Rating” shall mean a rating at a
level agreed between the Borrower and the Administrative Agent. 
  
 “Approved Contract Jurisdiction” shall mean, as of the Signing Date, each of the United Kingdom, the United States and each additional jurisdiction approved in accordance with Section 8.15 hereof. 
  

 “Approved Currency” shall mean, as of the Signing Date, Dollars, Canadian dollars, euros
and sterling, and such additional currency approved in accordance with Section 8.15 hereof. 
  
 “Approved Obligor Country” shall mean, as of the Signing Date, the United States, United Kingdom and Canada, and such additional country
approved in accordance with Section 8.15 hereof. 
  
 “Approved Originator” shall mean each Originator party to a Receivables Purchase Agreement as of the Signing Date and each Additional Originator. 
  
 “Asset Purchase Agreement” shall mean each of the Sheffield Asset Purchase Agreement and the PARCO Asset
Purchase Agreement. 
  
 “Atlas Receivables” shall
have the meaning assigned to such term in the Contribution Agreement. 
  
 “Atlas Transition Period” shall have the meaning assigned to such term in the Contribution Agreement. 
  
 “Authorized Accountants” shall have the meaning assigned to such term in the Credit Agreement. 
  
 “Bankruptcy Code” shall mean the United States Federal
Bankruptcy Code, 11 U.S.C. §§ 101-1330, as amended. 
  
 “Barclays Roles” shall have the meaning specified in Section 8.12(a) of this Agreement. 
  
 “Base Rate” or “BR” shall mean, a rate per annum equal to the greater of (i) the prime rate of interest announced by the
Administrative Agent from time to time, changing when and as said prime rate changes (such rate not necessarily being the lowest or best rate charged by the Administrative Agent) and (ii) the sum of (a) 1.5% and (b) the rate equal to the weighted
average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published for such day (or, if such day is not a Local Business Day, for the next preceding Local Business
Day) by the Federal Reserve Bank of New York, or, if such rate is not so published for any day that is a Local Business Day, the average of the quotations for such day for such transactions received by the Administrative Agent from three (3) Federal
funds brokers of recognized standing selected by it. 
  
 “Benefit Plan” shall mean any employee benefit plan as defined in Section 3(3) of ERISA in respect of which the Borrower, the Contributor or any ERISA Affiliate of the Borrower, or the Contributor is, or at any time during
the immediately preceding six (6) years was, an “employer” as defined in Section 3(5) of ERISA. 
  
 “Borrower” shall mean Triangle Receivables Funding LLC, a Delaware limited liability company, and its successors and permitted assigns.

  

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 “BR Tranche” shall mean a Tranche as to which Interest is calculated at the Base Rate.

  
 “BR Tranche Period” shall mean, with respect
to a BR Tranche, either (i) prior to the Termination Date, a period of up to thirty (30) days requested by the Borrower and agreed to by the Lenders commencing on a Business Day requested by the Borrower and agreed to by the Lenders, or (ii) after
the Termination Date, a period of one (1) day. If such BR Tranche Period would end on a day which is not a Business Day, such BR Tranche Period shall end on the next succeeding Business Day. 
  
 “Business Day” shall mean any day other than (i) a Saturday
or a Sunday or (ii) another day on which commercial banking institutions or trust companies in London, the States of California and New York, or in the city where the chief executive office of the Contributor is located, are authorized or obligated
by law, executive order, or governmental decree to be closed. 
  
 “Carrying Cost Reserve Ratio” shall mean, on any day, a rate equal to the product of (a) the Base Rate plus 1.5%, (b) the DSO divided by 365 and (c) 2. 
  
 “Charged-Off Receivables” shall mean, with respect to any Settlement Period, all Receivables (or portions
thereof) which, in accordance with the Credit and Collection Policy with respect to such Receivable, have or should have been written off during such Settlement Period as uncollectible, including, without limitation, the Receivables of any Obligor
which becomes the subject of any voluntary or involuntary bankruptcy proceeding. 
  
 “Chase” shall mean The Chase Manhattan Bank. 
  
 “Chase Roles” shall have the meaning specified in Section 8.12(b) of this Agreement. 
  
 “Clifford Chance” means Clifford Chance Limited Liability Partnership; 
  
 “Clifford Chance Tax Opinion” shall mean that certain English law legal opinion by Clifford Chance in the
form signed for identification. 
  
 “Closing
Date” shall mean the earlier of February 28, 2001 and the date of the first Incremental Borrowing. 
  
 “Code” shall mean the Internal Revenue Code of 1986, as amended, and the rules and regulations promulgated thereunder. 
  
 “Collateral” shall have the meaning assigned to such term in
Section 1.04 hereof. 
  
 “Collection
Account” shall mean each account designated as such, established by the Administrative Agent, for the benefit of the Lenders pursuant to Section 2.12(a) of this Agreement. 
  

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 “Collection Agent” shall mean, at any time, the Person then authorized pursuant to
Section 6.01 of this Agreement to service, administer and collect Receivables. 
  
 “Collection Agent Default” shall have the meaning specified in Section 6.04 of this Agreement. 
  
 “Collections” shall mean, with respect to any Receivable, all cash collections and other cash proceeds of such Receivable, including,
without limitation, all Finance Charges, if any, and cash proceeds of Related Security with respect to such Receivable. 
  
 “Commercial Paper” shall mean the short-term promissory notes of the CP Conduit Lenders issued in the commercial paper market.

  
 “Commitment” shall mean, with respect to each
APA Bank, the amount set forth in the related Asset Purchase Agreement with respect to such APA Bank. 
  
 “Commitment Expiry Date” shall mean the earliest to occur of (i) the date on which all amounts due and owing to the Lenders under this
Agreement and the other Transaction Documents have been paid in full, (ii) the date on which the Commitments have been reduced to zero pursuant to the terms of the PARCO Asset Purchase Agreement, (iii) the date upon which the Sheffield Asset
Purchase Agreement has been terminated, and (iv) five years from the Closing Date. 
  
 “Concentration Factor” shall mean, 
  
 (i) except with respect to Special Obligors, on any day with respect to any Obligor, a percentage equal to the following: 
  
 (a) with respect to Receivables of any Obligor with short-term or long-term ratings of at least A-l+ or AA- by S&P, respectively, and
at least P-l or Aa3 by Moody’s, respectively, 10%; 
  
 (b) with respect to Receivables of any Obligor with short-term or long-term ratings of at least A-l or A by S&P, respectively, and at least P-l or A2 by Moody’s, respectively, 8%; 
  
 (c) with respect to Receivables of any Obligor with
short-term and long-term ratings of at least A-2 or BBB by S&P, respectively, and at least P-2 or Baa2 by Moody’s, respectively, 6%; 
  
 (d) with respect to Receivables of any Obligor with short-term and long-term ratings at or below A-3 or BBB- by S&P, respectively, or
at or below P-3 or Baa3 by Moody’s, respectively, 3%; 
  
 (e) with respect to Receivables of any Obligor with no short-term and long-term ratings by S&P and Moody’s, 3%; and 
  

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 (ii) on any day with respect to any Special Obligor, a percentage equal to the following: (a) with
respect to Solectron, (x) so long as Solectron remains a Special Obligor, a percentage equal to 10%, and (y) if Solectron does not qualify as a Special Obligor solely because the rating assigned to it by S&P has been reduced to BB or below or
the rating assigned to it by Moody’s has been reduced to Ba1 or below, a percentage equal to 5%, (b) with respect to Jabil Circuits, so long as Jabil Circuits remains a Special Obligor, a percentage equal to 5%, (c) with respect to Flextronics,
so long as Flextronics remains a Special Obligor, a percentage equal to 4%, and (d) with respect to any other Special Obligor, a percentage specified by the Administrative Agent (with the prior written consent of the Required Lenders) in a written
notice to the Borrower and the Lenders. 
  
 For the purposes of
determining the foregoing, if the Obligor of such Receivable is (A) rated by only S&P or only Moody’s, then the rating for such Obligor shall be deemed to be one sub-category below the assigned rating; or (B) is assigned a split-rating by
S&P and Moody’s, then the lower of such ratings shall apply. 
  
 “Conduit Assignee” shall mean, with respect to any CP Conduit Lender, any commercial paper conduit that issues commercial paper rated at least A-1 by S&P and P1 by Moody’s administered by the Funding Agent with
respect to such CP Conduit Lender and designated by such Funding Agent to accept an assignment from such CP Conduit Lender of such CP Conduit Lender’s rights and obligations pursuant to Section 8.06(b). 
  
 “Constituent Documents” means, with respect to any Person,
(a) the articles or certificate of incorporation (or the equivalent organizational documents) of such Person, (b) the bylaws (or the equivalent governing documents) of such Person and (c) any document setting forth the manner of election and duties
of the directors or managing members of such Person (if any) and the designation, amount and/or relative rights, limitations and preferences of any class or series of such Person’s Stock. 
  
 “Contract” shall mean a written agreement or invoice,
pursuant to or under which a Person shall be obligated to pay for merchandise purchased or services rendered and including all items and provisions incorporated or implied by applicable law, including, without limitation, the Relevant UCC.

  
 “Contractual Obligation” of any Person shall
mean any obligation, agreement, undertaking or similar provision of any Security issued by such Person or of any agreement, undertaking, contract, lease, indenture, mortgage, deed of trust or other instrument (excluding a Loan Document) to which
such Person is a party or by which it or any of its property is bound or to which any of its properties is subject. 
  
 “Contribution Agreement” shall mean the Contribution Agreement, dated as of August [    ], 2000, by and
between the Contributor, as contributor, and the Borrower, as such agreement may be amended, supplemented or otherwise modified and in effect from time to time. 
  

 5 

 “Contributor” shall mean MEMEC LLC, a Delaware limited liability company, its successors
(including permitted assigns) and any of its Affiliates that the Administrative Agent consents to, such consent not to be unreasonably withheld. 
  
 “Conversion/Continuation Notice” shall have the meaning specified in Section 2.16 of this Agreement. 
  
 “CP Conduit Insolvency Event” means, with respect to a CP
Conduit Lender, the occurrence of any one or more of the following: (a) any proceeding shall have been instituted by such CP Conduit Lender seeking to adjudicate it as bankrupt or insolvent, or seeking liquidation, winding up, reorganization,
arrangement, adjustment, protection, relief or composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief of debtors, or seeking the entry of any order for relief or the appointment of a receiver,
trustee or other similar official for it or any substantial part of its property, or (b) any proceeding of the type described in the foregoing clause (a) shall be instituted against such CP Conduit Lender and shall have remained undismissed for a
period of sixty (60) consecutive days, or an order granting relief requested in any such proceeding shall be entered. 
  
 “CP Conduit Lender” shall have the meaning assigned to such term in the preamble of this Agreement. 
  
 “CP Rate” shall mean, with respect to any CP Tranche Period,
the rate equivalent to the rate (or if more than one rate, the weighted average of the rates) at which Commercial Paper having a term equal to such CP Tranche Period may be sold by any placement agent or commercial paper dealer selected by the
issuing CP Conduit Lender; provided, however, that if the rate (or rates) as agreed between any such agent or dealer and such CP Conduit Lender is a discount rate, then the rate (or if more than one rate, the weighted average of the
rates) resulting from such CP Conduit Lender’s converting such discount rate (or rates) to an interest-bearing equivalent rate per annum. 
  
 “CP Tranche” shall mean a Tranche as to which Interest is calculated at the CP Rate. 
  
 “CP Tranche Period” shall mean, with respect to a CP
Tranche, a period of days not to exceed ninety (90) days commencing on a Local Business Day requested by the Borrower and agreed to by the CP Conduit Lenders pursuant to Section 2.03 of this Agreement. If a CP Tranche Period would end on a
day which is not a Local Business Day, such CP Tranche period shall end on the next succeeding Local Business Day. 
  
 “Credit Agreement” shall mean the Credit Agreement, dated as of August 4, 2000, by and among EAS Holdings, Inc., Choirgrange Limited,
Spiretrail Limited, The Chase Manhattan Bank, as administrative agent and collateral agent and Barclays Capital, as syndication agent, as amended, supplemented or otherwise modified and in effect from time to time. 
  
 “Credit and Collection Policy” shall mean each
Originator’s credit and collection policy or policies relating to Contracts and Receivables existing on the Closing 

  

 6 

 
Date and attached to this Agreement as Exhibit A (or as subsequently delivered prior to the Closing Date) as amended, supplemented or otherwise
modified and in effect from time to time in compliance with the terms of this Agreement. 
  
 “Custody Documents” shall have the meaning assigned to such term in the UK Receivables Purchase Agreement. 
  
 “Daily Report” shall mean a report, in substantially the form attached to the Contribution Agreement as Schedule 2.1(d) thereto or in
such other form as is mutually agreed to by the Borrower and the Administrative Agent, delivered by the Collection Agent to the Administrative Agent pursuant to Section 2.11 of this Agreement. 
  
 “Deemed Collections” shall mean any Collections on any
Receivable deemed to have been received pursuant to Section 2.09(a) or (b) of this Agreement. 
  
 “Default Ratio” shall mean, on any day, a fraction, the numerator of which is the sum of (a) the Outstanding Balance of all Receivables
which are 91-120 days past their original invoice date or, in the case of UK Receivables, 61-90 days past the original due date, as of the end of the preceding Settlement Period plus (b) the Outstanding Balance of all Receivables which were
written off as uncollectible by the Collection Agent in accordance with the related Credit and Collection Policy during the preceding Settlement Period prior to 91 days after their original invoice dates or, in the case of UK Receivables, 61 days
past the original due date and the denominator of which is the balance of Gross Sales during the Settlement Period four (4) Settlement Periods prior to such day. 
  
 “Defaulted Receivable” shall mean a Receivable (which is not a Defaulted UK Receivable): (i) as to which
any payment, or part thereof, remains unpaid for more than one hundred twenty (120) days from the original invoice date for such Receivable; (ii) as to which an Event of Bankruptcy has occurred and is continuing with respect to the Obligor thereof;
(iii) which has been identified by the Borrower, the Contributor or the Collection Agent as uncollectible; or (iv) which, in accordance with the related Credit and Collection Policy, has been written off as uncollectible. 
  
 “Defaulted UK Receivable” shall mean a UK Receivable (i)
which is not paid for more than ninety (90) days from the due date for such UK Receivable; (ii) as to which an Event of Bankruptcy has occurred and is continuing with respect to the Obligor thereof; (iii) which has been identified by the Borrower,
the Contributor or the Collection Agent as uncollectible; or (iv) which, in accordance with the related Credit and Collection Policy, has been written off as uncollectible. 
  
 “Delinquent Receivable” shall mean a Receivable (which is not a Delinquent UK Receivable) which is not paid
for more than ninety (90) days from the original invoice date for such Receivable. 
  
 “Delinquent UK Receivable” shall mean a Receivable which is not paid for more than sixty (60) days from the original due date for such Receivable. 
  

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 “Designated Obligor” shall mean at any time, each Obligor; provided,
however, that any Obligor shall cease to be a Designated Obligor upon notice to the Borrower from the Administrative Agent, acting reasonably, delivered at any time. 
  
 “Diluted Receivable” shall mean any Receivable which is the subject of a reduction or cancellation as a
result of any defective, rejected or returned merchandise or services and all credits, rebates, discounts, disputes, warranty claims, repossessed or returned goods, charge backs, allowances, other dilative factors and any other billing or other
adjustment (whether effected through the granting of credits against the applicable Receivables or by the issuance of a check or other payment in respect of (and as payment for) such reduction but excluding adjustments, reductions, or cancellations
in respect of the Obligor’s bankruptcy or financial condition). 
  
 “Dilution Horizon” shall mean the number of days from the invoicing of a Receivable until an Originator recognizes such Receivable as a Diluted Receivable. 
  
 “Dilution Horizon Factor” shall mean for any six-month period following the Closing Date (beginning and
ending on a Settlement Date or, for the first six-month period, beginning on the Closing Date and ending on a Settlement Date), a fraction, (x) the numerator of which is the aggregate weighted average Dilution Horizon of the Originators for such
period (which shall be calculated by the Collection Agent, in accordance with its past procedures for such calculations, selecting a random sample of approximately twenty-five (25) Diluted Receivables from each Originator created during such period
and determining the weighted average Dilution Horizon therefrom, and (y) the denominator of which is thirty (30); provided, however, that until such time as the Originators have provided the information necessary to calculate the
Dilution Horizon, the Dilution Horizon shall be sixty (60) days. 
  
 “Dilution Period” shall mean, on any day, a number equal to a fraction, the numerator of which is the product of (i) Gross Sales during the Settlement Period immediately preceding such day and (ii) the Dilution Horizon
Factor and the denominator of which is the Net Receivables Balance. 
  
 “Dilution Ratio” shall mean, on any day, the percentage equivalent of a fraction, the numerator of which is the Outstanding Balance of all Receivables which have become Diluted Receivables during the related Settlement
Period (calculated as of the last day of the preceding Settlement Period), and the denominator of which is the balance of Gross Sales during the preceding Settlement Period to such day and which have been contributed by the Contributor to the
Borrower pursuant to the Contribution Agreement. 
  
 “Dilution Reserve Ratio” shall mean, on any day, an amount (expressed as a percentage) which is calculated as follows: 
  
 [(c x d) + [(e - d) x (e / d)]] x f 
  
 Where: 
  

					
	c	 	=	  	2.0;

  

 8 

					
	d	 	=	  	the average of the Dilution Ratio during the period of twelve (12) preceding Settlement Periods
			
	e	 	=	  	the highest Dilution Ratio for any Settlement Period during the period of twelve (12) preceding Settlement Periods; and
			
	f	 	=	  	the Dilution Period.

  
 “Dividend Test
Ratio” shall mean an amount equal to the product of (a) the Percentage Factor and (b) the Net Receivables Balance divided by the aggregate amount of Outstanding Loans. 
  
 “Dollar Equivalent” shall mean, in relation to an amount denominated in another currency, the amount of
that currency converted into Dollars at the spot rate of exchange specified (or at about 11:00 a.m. on the Business Day in question) for the purchase of the relevant currency with Dollars. 
  
 “Dollars” or “$” shall mean the lawful
currency of the United States. 
  
 “DSO” shall
mean, on any Settlement Date, the number of calendar days equal to the product of (a) 91 and (b) the amount obtained by dividing (i) the Net Receivables Balance as of the last day of the preceding Settlement Period by (ii) the aggregate balance of
Gross Sales during the three (3) consecutive Settlement Periods preceding such Settlement Date, which calculation shall remain in effect until the next succeeding Settlement Date for all purposes of this Agreement. 
  
 “Eligible Obligor” shall mean, as of any monthly date of
determination, any Obligor, of which not more than 25% of such Obligor’s aggregate Receivables are more than 120 days past their original invoice date or, in the case of UK Receivables, 90 days past the original due date. 
  
 “Eligible Receivable” shall mean, at any time, any
Receivable: 
  
 (i) which has been originated by
an Originator and sold to the Contributor pursuant to a Receivables Purchase Agreement and subsequently contributed to the Borrower pursuant to (and in accordance with) the Contribution Agreement, and to which the Borrower has good title thereto,
free and clear of all Liens other than Permitted Liens; 
  
 (ii) which (together with the Collections and Related Security related thereto) has been the subject of either (A) a valid transfer and assignment from the Borrower to the Administrative Agent, on behalf of the
Lenders, of all of the Borrower’s right, title and interest therein or (B) the grant of a first priority perfected security interest therein (and in the Collections and Related Security related thereto), in each case effective until the
termination of this Agreement; 
  

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 (iii) the Obligor of which is (A) an Approved Obligor Country, (B) a Designated Obligor
at the time of the initial creation of an interest therein hereunder, (C) not an Affiliate of any of the parties to this Agreement or any of the Originators, and (D) an Eligible Obligor; 
  
 (iv) which is not a Delinquent Receivable or a Delinquent UK Receivable; 
  
 (v) which is not a Defaulted Receivable or a Defaulted UK
Receivable (without duplication of paragraph (iv) above); 
  
 (vi) which is not an obligation issued by a United States federal or state government or an agency thereof; 
  
 (vii) which, (A) arises pursuant to a Contract with respect to which the Contributor has performed all obligations required to be
performed by it thereunder, including, without limitation, shipment of the merchandise and/or the performance of the services purchased thereunder; (B) has been billed; and (C) according to the Contract related thereto, has been billed and is
required to be paid in full within ninety (90) days of the original billing date therefor; 
  
 (viii) which is (A) an “account” within the meaning of Article 9 of the Relevant UCC, (B) chattel paper within the meaning of
Section 9-105 of such UCC (provided that, in order for such chattel paper to be eligible, the Collection Agent shall have certified to the Administrative Agent that the terms of the contract or contracts giving rise to such chattel paper do not
prohibit the assignment thereof) or (C) a general intangible (to the extent that such Receivables include interest, finance charges, returned check or late charges or sales or similar taxes) within the meaning of Section 9-106 of such UCC;

  
 (ix) which is denominated and payable only in
an Approved Currency; 
  
 (x) which arises under
a Contract that, together with the Receivable related thereto, is in full force and effect and constitutes the legal, valid and binding obligation of the related Obligor, enforceable against such Obligor in accordance with its terms and is not
subject to any litigation, dispute, offset, counterclaim or other defense; 
  
 (xi) which, together with the Contract related thereto, does not contravene in any material respect any laws, rules or regulations applicable thereto (including, without limitation, laws, rules and regulations
relating to truth in lending, fair credit billing, fair credit reporting, equal credit opportunity, fair debt collection practices and privacy) and with respect to which no part of the Contract related thereto is in violation of any such law, rule
or regulation in any material respect; 
  

 10 

 (xii) which (A) satisfies all applicable requirements of the related Credit and
Collection Policy, (B) is assignable without the consent of, or notice to, the Obligor thereunder and (C) complies with such other criteria and requirements as the Administrative Agent (in consultation with the Lenders) may from time to time specify
to the Borrower following five (5) days’ notice; 
  
 (xiii) which was generated in the ordinary course of the Originator’s business; 
  
 (xiv) the Obligor of which (other than Obligors with respect to the Atlas Receivables during the Atlas Transition Period) has been
directed to make all payments to a specified account of the Collection Agent with respect to which there shall be a Lock-Box Account Agreement or UK Collection Account Agreement, as applicable, in effect; 
  
 (xv)the assignment of which under the Contribution Agreement
by the Contributor to the Borrower and the pledge of which under this Agreement by the Borrower to the Lenders does not violate, conflict with or contravene in any material respect any applicable laws, rules, regulations, orders or writs or any
contractual or other restriction, limitation or encumbrance; 
  
 (xvi) which has not been compromised, adjusted or modified (including by the extension of time for payment or the granting of any discounts, allowances or credits); and 
  
 (xvii) which arises under a Contract which, to the extent
such contract specifies a governing law, is governed by the law of an Approved Obligor Country. 
  
 “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended, supplemented or otherwise modified and in effect from
time to time, and the rules and regulations promulgated thereunder. 
  
 “ERISA Affiliate” shall mean, with respect to any Person, (i) any corporation which is a member of the same controlled group of corporations (within the meaning of Section 414(b) of the Code (as in effect from time to time,
the “Code”)) as such Person; (ii) a trade or business (whether or not incorporated) under common control (within the meaning of Section 414(c) of the Code) with such Person; or (iii) a member of the same affiliated service group (within
the meaning of Section 414(m) of the Code) as such Person, any corporation described in clause (i) above or any trade or business described in clause (ii) above. 
  
 “ERISA Event” shall have the meaning assigned to such term in the Credit Agreement. 
  
 “Eurodollar Rate” shall mean, with respect to any Eurodollar
Tranche Period, a rate which exceeds by an amount equal to the Applicable Margin a rate per annum equal to the sum (rounded upwards, if necessary, to the next higher 1/100 of 1%) 

  

 11 

 
of (A) the rate obtained by dividing (i) the applicable LIBOR Rate by (ii) a percentage equal to 100% minus the reserve percentage used for
determining the maximum reserve requirement as specified in Regulation D (including, without limitation, any marginal, emergency, supplemental, special or other reserves) that is applicable to the Administrative Agent during such Eurodollar Tranche
Period in respect of eurocurrency or eurodollar funding, lending or liabilities (or, if more than one percentage shall be so applicable, the daily average of such percentage for those days in such Eurodollar Tranche Period during which any such
percentage shall be applicable) plus (B) the then daily net annual assessment rate (rounded upwards, if necessary, to the nearest 1/100 of 1%) as estimated by the Administrative Agent for determining the current annual assessment payable by
the Administrative Agent to the Federal Deposit Insurance Corporation in respect of eurocurrency or eurodollar funding, lending or liabilities. 
  
 “Eurodollar Tranche” shall mean a Tranche as to which Interest is calculated at the Eurodollar Rate. 
  
 “Eurodollar Tranche Period” shall mean, with respect to a
Eurodollar Tranche, prior to the Termination Date, a period of up to three (3) month[s] requested by the Borrower and agreed to by the CP Conduit Lenders and the Administrative Agent commencing on a Business Day requested by the Borrower and agreed
to by the CP Conduit Lenders and the Administrative Agent; provided, however, that if such Eurodollar Tranche Period would expire on a day which is not a Business Day, such Eurodollar Tranche Period shall expire on the next succeeding
Business Day; provided, further, that if such Eurodollar Tranche Period would expire on (a) a day which is not a Business Day but is a day of the month after which no further Business Day occurs in such month, such Eurodollar Tranche
Period shall expire on the next preceding Business Day or (b) a Business Day for which there is no numerically corresponding day in the applicable subsequent calendar month, such Eurodollar Tranche Period shall expire on the last Business Day of
such month. 
  
 “Event of Bankruptcy” shall mean,
with respect to any Person, (i) that such Person (a) shall generally not pay its debts as such debts become due or (b) shall admit in writing its inability to pay its debts generally or (c) shall make a general assignment for the benefit of
creditors; (ii) (x) the entry of a decree or order by a court having jurisdiction in the premises adjudging such Person under the united States Bankruptcy Code or any other applicable law, or appointing a receiver, liquidator, assignee or
sequestrator (or other similar official) of such person or of any substantial part of its property, or ordering the winding up or liquidation of its affairs, and the continuance of any such decree or order unstayed and in effect for a period of
sixty (60) consecutive days; or (y) the institution by such Person of proceedings to be adjudicated a bankrupt or insolvent, or the consent by it to the institution of bankruptcy or insolvency proceedings against it, or the filing by it of a
petition or answer or consent seeking reorganization or relief under the United States Bankruptcy Code or any other similar applicable law, or the consent by it to the filing of any such petition or to the appointment of a receiver, liquidator,
assignee, trustee or sequestrator (or other similar official) of such Person or of any substantial part of its property, or to the ordering of the winding up or liquidation of its affairs, or the making by it of an assignment for the benefit of
creditors, 

  

 12 

 
or the admission by it in writing of its inability to pay its debts generally as they become due, or the taking of any action by such Person in furtherance
of any such action; or (iii)if such Person is a corporation, such Person or any Subsidiary of such Person shall take any action to authorize any of the actions set forth in the preceding clauses (i) or (ii). 
  
 “Excluded Receivables” means Receivables denominated or
payable in any currency other than an Approved Currency and collections in respect of which are not to be paid to a Lock-Box Account or UK Collection Account. 
  

“Existing Relevant Document” means a Relevant Document which is already in existence and relating to Purchased Receivables which have
already been acquired by the Borrower. 
  
 “Facility
Limit” shall mean $300,000,000, provided that such amount may not at any time exceed the Aggregate Funding Limit at any time in effect; provided, further, that from and after the Termination Date, the Facility Limit
shall at all times equal the amount of the Outstanding Loans. 
  
 “Fee Letters” shall mean the fee letter agreements and program fee letter agreements, each dated the Signing Date, with respect to the fees to be paid by the Borrower under the Transaction Documents, as amended,
supplemented or otherwise modified and in effect from time to time. 
  
 “Finance Charges” shall mean, with respect to a Contract, any finance, interest, late or similar charges owing by an Obligor pursuant to such Contract. 
  
 “Fiscal Year” shall have the meaning assigned to such term in the Credit Agreement. 
  
 “Funded Percentage” shall mean, on any date of
determination, with respect to any Lender, the ratio, expressed as a percentage, which the Outstanding Loans made by such Lender bears to the aggregate amount of all Outstanding Loans on such date. 
  
 “Funding Account” shall have the meaning specified in
Section 2.12(b) of this Agreement. 
  
 “Funding
Agent” shall mean each of the Sheffield Funding Agent and the PARCO Funding Agent. 
  
 “Funding Limit” shall mean the amount set forth on Schedule A hereto, as such amount may be amended from time to time. 
  
 “Funding Percentage” shall mean, on any date of determination, with respect to any CP Conduit Lender, the
ratio, expressed as a percentage, which such CP Conduit Lender’s Funding Limit bears to the Aggregate Funding Limit on such date. 
  

 13 

 “GAAP” shall mean generally accepted accounting principles in the United States, set
forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such
accounting profession, which are in effect as of the date of this Agreement. 
  
 “Governmental Authority” means any nation or government, any state or other political subdivision thereof and any entity exercising executive, legislative, judicial, regulatory or administrative
functions of or pertaining to government. 
  
 “Gross
Sales” shall mean, on a monthly basis, the total Dollar Equivalent of goods sold. 
  
 “Group” shall have the meaning assigned to such term in the Credit Agreement. 
  
 “Hedging Agreement” shall mean each hedging agreement entered into for the purpose of managing currency risk whether by way of forward
exchange, cap, collar, swap, forward rate agreement or otherwise. 
  
 “Incremental Borrowing” shall mean a Loan which is made pursuant to Section 2.02(a) of this Agreement. 
  
 “Indebtedness” of any Person means without duplication (a) all indebtedness of such Person for borrowed money (including, for the
avoidance of doubt, the funded portion of any off-balance sheet asset backed facility), (b) all obligations of such Person evidenced by notes, bonds, debentures or similar instruments, (c) all reimbursement and all obligations with respect to
letters of credit, bankers’ acceptances, surety bonds and performance bonds, whether or not matured, (d) all indebtedness for the deferred purchase price of property or services, other than trade payables incurred in the ordinary course of
business which are not more than ninety days overdue (other than such indebtedness or trade payables the amount or validity of which is currently being contested in good faith by appropriate proceedings and with respect to which appropriate reserves
in conformity with GAAP have been provided on the books of such Person), (e) all indebtedness of such Person created or arising under any conditional sale or other title retention agreement with respect to property acquired by such Person (even
though the rights and remedies of the seller or lender under such agreement in the event of default are limited to repossession or sale of such property), (f) all Capital Lease Obligations (as defined in the Credit Agreement) of such Person and the
present value of future rental payments under all synthetic leases, (g) all Guaranty Obligations (as defined in the Credit Agreement) of such Person in respect of obligations of the types described in clauses (a) through (f) above, (h) all
obligations of such Person to purchase, redeem, retire, defease or otherwise acquire for value any Stock or Stock Equivalents of such Person, valued, in the case of redeemable preferred stock, at the greater of its voluntary or involuntary
liquidation preference plus accrued and unpaid dividends, and (i) all Indebtedness of the type referred to above secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien

  

 14 

 
upon or in property (including Accounts and general intangibles) owned by such Person, even though such Person has not assumed or become liable for the
payment of such Indebtedness. 
  
 “Indemnified
Persons” shall have the meaning specified in Section 6.06 of this Agreement. 
  
 “Interest” means, with respect to any Tranche Period: 
  
 (TR x TOL x AD) 
                     YD 
  
 Where: 
  

	TR     =  	the Tranche Rate applicable to such Tranche Period; 

  

	TOL  =  	the portion of the Outstanding Loans allocated to such Tranche Period; 

  

	AD    =  	the actual number of days during such Tranche Period; and 

  

	YD    =  	either (i) if the Tranche Rate is the CP Rate or the Eurodollar Rate, 360 or (ii) if the Tranche Rate is the Base Rate, 365 or 366, as applicable. 

  
 provided, however, that (i) Interest shall include any commissions or fees
payable to the CP Conduit Lenders’ commercial paper placement agents in connection with the sale of commercial paper related to this Agreement and (ii) no provision of this Agreement shall require the payment or permit the collection of
Interest in excess of the maximum amount permitted by applicable law; and provided, further, that Interest shall not be considered paid by any distribution if, at any time, such distribution is rescinded or must be returned for any
reason. 
  
 “Interest Account” shall have the
meaning assigned to such term in Section 2.12(b) hereof. 
  
 “Law” shall mean any law (including common law), constitution, statute, treaty, regulation, rule, ordinance, order, injunction, writ, decree or award of any Official Body. 
  
 “Lender” means each CP Conduit Lender and the PARCO APA Bank
and, with respect to Sheffield, each Sheffield Assignee to the extent of its interest in the Loans. 
  
 “LIBOR Rate” shall mean with respect to each Eurodollar Tranche Period for a Eurodollar Tranche, the rate determined in accordance with
the following provisions: 
  
 (a) as determined by the
Administrative Agent as the rate for deposits in U.S. dollars having the Tranche Period specified, commencing on the second (2nd) 

  

 15 

 
Business Day immediately preceding the first day of such Tranche Period, which appears on the Telerate Page 3750 as of approximately 11:00 A.M., London time
(“LIBOR Telerate”). “Telerate Page 3750” shall mean the display designated as page “3750” on the Telerate Service (or such other page as may replace the 3750 page on that service or such other service or services
as may be nominated by the British Bankers’ Association for the purpose of displaying London interbank offered rates for U.S. dollar deposits). If no rate appears on the Telerate Page 3750, LIBOR in respect of that Tranche Period shall be
determined as if the parties had specified the rate described in (b) below. 
  
 (b) With respect to a day on which no rate appears on Telerate Page 3750, LIBOR will be determined as approximately 11:00 A.M., London time, on such day on the basis of (a) the arithmetic mean of the rates at which
deposits in U.S. dollars having the Tranche Period specified are offered to prime banks in the London interbank market by four (4) major banks in the London interbank market selected by the Administrative Agent and in a principal amount of not less
than $1,000,000 that is representative for a single transaction in such market at such time, if at least two (2) such quotations are provided, or (b) if fewer than two (2) quotations are provided as described in the preceding clause (a), the
arithmetic mean of the rates, as requested by the Administrative Agent, quoted by three (3) major banks in New York City, selected by the Administrative Agent, at approximately 11:00 A.M., New York City time, on such day, for such Tranche Period in
United States dollars to leading European banks and in a principal amount of not less than $1,000,000 that is representative for a single transaction in such market at such time; provided, however, that, if such banks selected by the
Administrative Agent are not providing such quotations, LIBOR determined on such day as provided in Section 2.18 hereof. 
  
 “Lien” shall mean, with respect to any asset, (a) any mortgage, deed of trust, lien, pledge, encumbrance, charge or security interest in
or on such asset and (b) the interest of a vendor or a lessor under any conditional sale agreement, capital lease or title retention agreement relating to such asset; provided, however, that if a lien is imposed under Section 412(n) of
the Code or Section 302(f) of ERISA for a failure to make a required installment or other payment to a plan to which Section 412(n) of the Code or Section 302(f) of ERISA applies, then such lien shall not be treated as a “Lien” from and
after the time (i) any Person who is obligated to make such payment pays to such plan the amount of such lien determined under Section 412(n)(3) of the Code or Section 302(f)(3) of ERISA, as the case may be, and provides to the Company and the
Funding Agents a written statement of the amount of such lien together with written evidence of payment of such amount, or (ii) such lien expires pursuant to Section 412(n)(4)(B) of the Code or Section 302(f)(4)(B) of ERISA. 
  
 “Loan” shall mean each PARCO Loan, Sheffield Loan and each
other advance made by a Lender to the Borrower pursuant to, and in accordance with, this Agreement (including, without limitation, as a result of any reinvestment of Collections pursuant to Section 2.02(b) and 2.05) of this Agreement).

  
 “Loan Amount” shall mean, with respect to any
Incremental Borrowing, the amount paid to the Borrower by a Lender as described in the applicable Loan 

  

 16 

 
Certificate. The Loan Amount for any Loan shall be comprised of a cash component equal to the Outstanding Loans. 
  
 “Loan Certificate” shall have the meaning specified in
Section 2.02(a)(v) of this Agreement. 
  
 “Loan
Date” shall mean, with respect to each Loan, the Business Day on which such Loan is made. 
  
 “Loan Documents” shall have the meaning assigned to such term in the Credit Agreement. 
  
 “Loan Party” shall have the meaning assigned thereto in the
Credit Agreement. 
  
 “Local Business Day” shall
mean, with respect to a Person, any day other than (a) a Saturday or Sunday or (b) another day on which commercial banking institutions or trust companies in the jurisdictions where such Person has its principal place of business are authorized or
obligated by law, executive order or governmental decree to be closed. 
  
 “Lock-Box Account” shall mean an account maintained by the Collection Agent at a Lock-Box Bank for the purpose of receiving Collections from Receivables. 
  
 “Lock-Box Agreement” shall mean an agreement between the Collection Agent and a Lock-Box Bank in
substantially the form of Exhibit C-1 to this Agreement. 
  
 “Lock-Box Bank” shall mean each of the banks identified as such in Exhibit B to this Agreement, and such banks as may be added thereto or deleted therefrom pursuant to Section 2.08 of this Agreement.

  
 “Loss and Dilution Reserve Ratio” shall mean,
on any day, the greater of (a) the Reserve Floor and (b) the sum of (i) the Loss Reserve Ratio and (ii) the Dilution Reserve Ratio. 
  
 “Loss Horizon” shall mean, on any day, the amount obtained by dividing (i) the sum of Gross Sales during the three (3) preceeding
Settlement Periods by (ii) the Net Receivables Balance as of the end of the preceding Settlement Period. 
  
 “Loss Reserve Ratio” shall mean, on any day, the product of (a) 2 and (b) (i) after the earlier of (x) such time as fourteen (14)
Settlement Periods have occurred since the April 30, 2000 Settlement Period or (y) such time as the Collection Agent shall have delivered to the Administrative Agent fourteen (14) months of historical aging data showing separate aging of Receivables
91-120 and 121-150, respectively, past their original invoice date or, with respect to UK Receivables, 61-90 and 91-120, respectively, past original due date, the highest three-month rolling average of the Default Ratio that occurred during the
period of twelve (12) consecutive Settlement Periods preceding such earlier Settlement Date, or before such time, (ii) until the June 2000 report is available, 

  

 17 

 
the average of the Default Ratio reported for the months of April 2000 and May 2000 and (iii) after the June 2000 report is available, the highest
three-month average of the Default Ratio reported over any three consecutive months since the April 30, 2000 Settlement Period; and (c) the Loss Horizon. 
  
 “Material Adverse Effect” shall mean, when used with respect to a any Person, (a) a material impairment of such Person’s ability to
perform its obligations under the Transaction Documents, (b) a materially adverse effect on the business, operations, property or condition (financial or otherwise) of such Person or (c) a material impairment of the validity or enforceability of any
of the Transaction Documents against such Person and, where applicable, shall also include (d) a material impairment of the collectability of the Receivables taken as a whole and (e) a material impairment of the interests, rights or remedies of the
Borrower, the Lenders or the Funding Agents, with respect to the Transaction Documents or the Receivables taken as a whole. 
  
 “Material Subsidiary” shall have the meaning thereto in the Credit Agreement. 
  
 “Maximum Percentage Factor” means 100%. 
  
 “Minimum Loss Reserve” shall mean 19.0%. 
  
 “Moody’s” shall mean Moody’s Investors Service,
Inc., and its successors and assigns. 
  
 “Multiemployer
Plan” shall mean a “multiemployer plan” as defined in Section 4001(a)(3) of ERISA which is or was at any time during the current year or the immediately preceding five years contributed to by the Borrower, the Contributor or any
ERISA Affiliate of the Borrower or the Contributor on behalf of its employees. 
  
 “Net Receivables Balance” shall mean, at any time, the Outstanding Balance of the Eligible Receivables at such time, as reduced by the aggregate amount by which the Outstanding Balance of all Eligible
Receivables of each Designated Obligor exceeds the Concentration Factor for such Designated Obligor, 
  
 “Non-U.S. Lender” means each Lender or Funding Agent that is not a United States person as defined in Section 7701(a)(30) of the Code.

  
 “Obligor” shall mean a Person obligated to
make payments for the provision of goods and services pursuant to a Contract and each of such Persons Affiliates. 
  
 “Offer Letter” shall have the meaning assigned to such term in the UK Receivables Purchase Agreement. 
  
 “Official Body” shall mean any nation or government, any
state or other political subdivision or any agency, authority, bureau, central bank, commission, 

  

 18 

 
department or instrumentality of any such government or political subdivision, or any court, tribunal, grand jury or arbitrator, in each case whether foreign
or domestic. 
  
 “Originator” shall mean any
seller of Receivables pursuant to a Receivables Purchase Agreement. 
  
 “Outstanding Balance” shall mean, with respect to any Receivable at any time, the then outstanding principal amount thereof, excluding any accrued and outstanding Finance Charges related thereto. 
  
 “Outstanding Loans” shall mean the sum of the cash amounts
paid to the Borrower by the Lenders in connection with each Incremental Borrowing minus (a) the aggregate amount of proceeds of Collections received and applied by the Administrative Agent to reduce such Outstanding Loans pursuant to
Section 2.05, 2.06 or 2.09 of this Agreement (b) any amounts on deposit in the Funding Account pursuant to Section 2.06(a) hereof; and (c) any additional amount paid to the Lenders by the Borrower; provided that
the Outstanding Loans shall be restored and reinstated in the amount of any Collections so received and applied if, at any time, the distribution of such Collections is rescinded or must otherwise be returned for any reason. 
  
 “PARCO” shall mean Park Avenue Receivables Corporation, a
Delaware corporation. 
  
 “PARCO APA Banks” shall
have the meaning assigned thereto in the PARCO Asset Purchase Agreement. 
  
 “PARCO Asset Purchase Agreement” shall mean that certain Asset Purchase Agreement, dated as of August [    ], 2000, by and among the PARCO Funding Agent, PARCO and the APA
Banks party thereto, as the same may from time to time be amended, supplemental or otherwise modified and in effect. 
  
 “PARCO Funding Agent” shall mean The Chase Manhattan Bank, its successors and permitted assigns. 
  
 “PARCO Loans” shall have the meaning assigned to such term
in Section 2.01(a) of this Agreement. 
  
 “PARCO
Termination Event” shall mean any provider of PARCO’s program liquidity and/or letter of credit facilities shall have given notice that an event of default has occurred and is continuing under its agreement with PARCO. 
  
 “Percentage Factor” shall mean the fraction (expressed as a
percentage) computed on any date of determination as follows: 
  

					
	 	 	 (OL x [1 + (LDRR + CCRR)]) + ( SFRR x OBR)
	 	 
	 	 	                     1 -
LDRR                     1 - LDRR
	 	 
	 	 	_______________________________________	 	 
	 	 	 NRB
	 	 

  
 Where: 
  

					
	OL	 	=	  	the Outstanding Loans on the date of such computation;

  

 19 

					
	LDRR	 	=	  	the Loss and Dilution Reserve Ratio on the date of such computation;
			
	CCRR	 	=	  	the Carrying Cost Reserve Ratio on the date of such computation;
			
	SFRR	 	=	  	the Servicing Fee Reserve Ratio on the date of such computation;
			
	OBR	 	=	  	the Outstanding Balance of all Receivables on the date of such computation; and
			
	NRB	 	=	  	the Net Receivables Balance on the date of such computation.

  
 The Percentage Factor
shall be calculated by the Collection Agent on the Closing Date. Thereafter, until the Termination Date, the Collection Agent shall recompute the Percentage Factor at the time of each Incremental Borrowing pursuant to Section 2.02(a) of this
Agreement and as of the close of business on each Business Day and report such recomputations to the Administrative Agent in the Settlement Statement and as otherwise requested by the Administrative Agent (in consultation with the Lenders). The
Percentage Factor shall remain constant from the time as of which any such computation or recomputation is made until the time as of which the next such recomputation shall be made, notwithstanding any additional Receivables arising, any Incremental
Borrowing made pursuant to such Section 2.02(a) or any reinvestment Loan made pursuant to Section 2.02(b) and 2.05 of this Agreement during any period between computations of the Percentage Factor. The Percentage Factor shall
remain constant at 100% at all times on and after the Termination Date until such time as the Administrative Agent, on behalf of the Lenders, shall have received the Aggregate Unpaids, in cash, at which time the Percentage Factor shall be recomputed
in accordance with Section 2.06 of this Agreement. 
  
 “Permits” shall have the meaning assigned to such term in the Credit Agreement. 
  
 “Permitted Investments” shall mean any of the following (a) negotiable instruments or securities represented by instruments in bearer or
registered or in book-entry form which evidence (i) obligations fully guaranteed by the United States; (ii) time deposits in, or bankers acceptances issued by, any depositary institution or trust company incorporated under the laws of the United
States or any state thereof and subject to supervision and examination by Federal or state banking or depositary institution authorities; provided, however, that at the time of investment or contractual commitment to invest therein,
the certificates of deposit or short-term deposits, if any, or long-term unsecured debt obligations (other than such obligation whose rating is based on collateral or on the credit of a Person other than such institution or trust company) of such
depositary institution or trust company shall have a credit rating from Moody’s and S&P of at least “P-1” and “A-l+”, respectively, in the case of the certificates of deposit or short-term deposits, or a rating not lower
than one of the two (2) highest investment 

  

 20 

 
categories granted by Moody’s and by S&P; (iii) certificates of deposit having, at the time of investment or contractual commitment to invest
therein, a rating from Moody’s and S&P of at least “P-l” and “A-1+”, respectively; or (iv) investments in money market funds rated in the highest investment category or otherwise approved in writing by the applicable
rating agencies; (b) demand deposits in any depositary institution or trust company referred to in (a) (ii) above; (c) commercial paper (having original or remaining maturities of no more than 30 days) having, at the time of investment or
contractual commitment to invest therein, a credit rating from Moody’s and S&P of at least “P-1” and “A-1+”, respectively; (d) Eurodollar time deposits having a credit rating from Moody’s and S&P of at least
“P-1” and “A-1+”, respectively; (e) repurchase agreements involving any of the Permitted Investments described in clauses (a) (i), (a) (iii) and (d) of this definition so long as the other party to the repurchase agreement has at
the time of investment therein, a rating from Moody’s and S&P of at least “P-1” and “A-1+”, respectively; and (f) shall exclude any investment giving rise to income arising from a source in the United Kingdom (other than
interest paid by a bank (as defined in Section 840A of the Income and Corporation Taxes Act 1988) in the ordinary course of its business. 
  
 “Permitted Liens” shall mean, at any time, for any Person: 
  

	 	(a)	Liens created pursuant to any Transaction Document; and 

  

	 	(b)	Liens for taxes, assessments or other governmental charges or levies (i) not yet due or (ii) that are being contested in good faith by appropriate proceedings and with respect to
which reserves in conformity with GAAP have been provided on the books of such Person. 

  
 “Person” shall mean any corporation, limited liability company, natural person, firm, joint venture, partnership, trust, unincorporated
organization, enterprise, government or any department or agency of any government. 
  
 “Potential Termination Event” shall mean an event which but for the lapse of time or the giving of notice, or both, would constitute a Termination Event. 
  
 “Proceeds” shall mean “proceeds” as defined in
Section 9-306(1) of the Relevant UCC. 
  
 “Program
Fee” shall have the meaning specified in the Fee Letters. 
  
 “Receivable” shall mean the indebtedness owed to an Originator by an Obligor under a Contract, other than an Excluded Receivable, and rights of payment and other payment obligations, whether constituting an account, chattel
paper, instrument, investment property or general intangible, arising in connection with the sale or lease of merchandise or the rendering of services by the Originator, in its ordinary course of business and includes the right to payment of any
Finance Charges and other obligations of such Obligor with respect thereto. Notwithstanding the foregoing, once a Receivable 

  

 21 

 
has been deemed collected pursuant to Section 2.09 of this Agreement, it shall no longer constitute a Receivable under this Agreement. 
  
 “Receivables Purchase Agreement” shall have the meaning
assigned to such term in the Contribution Agreement. 
  
 “Recipient” shall have the meaning specified in Section 2.14 of this Agreement. 
  
 “Records” shall mean all Contracts and other documents, books, records and other information (including, without limitation, computer
programs, tapes, discs, punch cards, data processing software and related property and rights) maintained with respect to Receivables and the related Obligors. 
  

“Related Lenders” shall mean (i) with respect to the PARCO Funding Agent, PARCO and the PARCO APA Banks, and (ii) with respect to the
Sheffield Funding Agent, Sheffield and, to the extent of their respective interests in the Loans, the Sheffield APA Banks. 
  
 “Related Security” shall mean, with respect to any Receivable, all of the Contributor’s or Borrower’s right, title and interest
in, to and under: 
  
 (a) the merchandise, if any, the sale of
which by the Contributor gave rise to such Receivable; 
  
 (b) all
other security interests or liens and property subject thereto from time to time, if any, purporting to secure payment of such Receivable, whether pursuant to the Contract related to such Receivable or otherwise, together with all financing
statements signed by an Obligor describing any collateral securing such Receivable; 
  
 (c) all guarantees, indemnities, warranties, insurance (and proceeds and premium refunds thereof) or other agreements or arrangements of any kind from time to time supporting or securing payment of such Receivable
whether pursuant to the Contract related to such Receivable or otherwise; 
  
 (d) all Records related to such Receivable; 
  
 (e) in the case of the Administrative Agent for the benefit of the Lenders, all rights and remedies of the Borrower under the Contribution Agreement, together with all financing statements filed by the Borrower
against the Contributor in connection therewith; and 
  
 (f) all
Proceeds of any of the foregoing. 
  
 “Relevant
Document” means any document whether previously executed or expected to be executed in connection with the transfer of any Receivables which may have been sold or may in the future to be sold pursuant to any agreement which may have 

  

 22 

 
been formed or may in the future be formed on acceptance of an offer contained in an Offer Letter which first mentioned document: 
  
 (i) would be necessarily required (A) to be produced as
evidence in a court in the United Kingdom in order to enable the Borrower to enforce its rights in respect of the Purchased Receivables against the Obligors or (B) for any of the purposes described in Section 2.20(c)(ii); and 
  
 (ii) would be liable to ad valorem stamp duty if it did not
fulfil the conditions for being eligible to be adjudicated free of stamp duty under section 42 of Finance Act 1930. 
  
 “Relevant UCC” shall mean, with respect to any state, the Uniform Commercial Code as from time to time in effect in such state.

  
 “Required Lenders” shall mean each CP Conduit
Lender and the PARCO APA Banks and each Sheffield Assignee. 
  
 “Requirement of Law” means, with respect to any Person, the common law and all federal, state, local and foreign laws, rules and regulations, orders, judgments, decrees and other determinations of any Official Body or
arbitrator, applicable to or binding upon such Person or any of its property or to which such Person or any of its property is subject. 
  
 “Reserve Floor” shall mean the Minimum Loss Reserve plus the product of (a) the Dilution Period and (b) the average of the Dilution Ratio
during the period of twelve (12) proceeding Settlement Periods 
  
 “Responsible Officer” shall mean with respect to the Contributor or Borrower, any officer directly or indirectly responsible for the execution of the transactions contemplated by the Transaction Documents. 
  
 “Revolving Credit Note” shall mean each promissory note of
the Borrower payable to the order of a Lender in respect of obligations under this Agreement, substantially in the form of Exhibit E-1 hereto, and any promissory note of the Borrower issued in substitution thereof. 
  
 “Section 42 Exemption” shall mean exemption from stamp duty
under section 42 of Finance Act 1930. 
  
 “Security” shall mean any Stock, Stock Equivalent, voting trust certificate, bond, debenture, note or other evidence of Indebtedness, whether secured, unsecured, convertible or subordinated, or any certificate of interest,
share or participation in, or any temporary or interim certificate for the purchase or acquisition of, or any right to subscribe to, purchase or acquire, any of the foregoing, but shall not include any evidence of the Obligations. 
  

 23 

 “Servicing Fee” shall mean the fees payable to the Collection Agent with respect to a
Tranche, in an amount equal to the Servicing Fee Percentage multiplied by the amount of the Outstanding Loans allocated to such Tranche pursuant to Section 2.03 of this Agreement. Such fee shall accrue from the date of the initial Loan
by the Lenders to the later of the Termination Date or the date on which the Percentage Factor is reduced to zero. On or prior to the Termination Date, such fee shall be payable only from Collections pursuant to, and subject to the priority of
payments set forth in, Section 2.05 of this Agreement. After the Termination Date, such fee shall be payable only from Collections pursuant to, and subject to the priority of payments set forth in, Section 2.06 of this Agreement.

  
 “Servicing Fee Percentage” shall mean 1.0%
per annum. 
  
 “Servicing Fee Reserve Ratio”
shall mean, at any time, an amount equal to the product of (i) the Servicing Fee Percentage and (ii) a fraction having as the numerator, the product of (a) 2 and (b) the DSO, and as the denominator, 360. 
  
 “Settlement Date” shall mean the fourteenth (14th) day of each calendar month immediately succeeding a Settlement Period or, if such day is not a Business Day, the next
succeeding Business Day. 
  
 “Settlement Period”
shall mean the period of days from and including the first day of a calendar month to and including the last day of such calendar month. 
  
 “Settlement Statement” shall mean a report, in substantially the form attached to this Agreement as Exhibit D or in such other
form as is mutually agreed to by the Borrower and the Administrative Agent, delivered by the Collection Agent to the Administrative Agent on each Settlement Date pursuant to Section 2.11 of this Agreement or prior to an Incremental Borrowing
pursuant to Section 2.02(a) of this Agreement. 
  
 “Sheffield” shall mean Sheffield Receivables Corporation, a Delaware corporation. 
  
 “Sheffield Assignee” shall have the meaning assigned thereto in the Sheffield Asset Purchase Agreement. 
  
 “Sheffield Asset Purchase Agreement” shall mean that certain
Asset Purchase Agreement, dated as of August [    ], 2000, by and among the Sheffield Funding Agent, the APA Banks party thereto and Sheffield, as the same may from time to time be amended, supplemented or otherwise
modified and in effect. 
  
 “Sheffield Funding
Agent” shall mean Barclays Bank plc, its successors and permitted assigns. 
  
 “Sheffield Loans” shall have the meaning assigned to such term in Section 2.01(a) of this Agreement. 
  

 24 

 “Signing Date” shall mean August 4, 2000. 
  
 “Special Obligor” shall mean each Obligor (and its
Affiliates with equal or greater credit ratings) designated by the Borrower and approved by the Funding Agents. As of the Closing Date, each of the following shall be designated a Special Obligor so long as each Special Obligor maintains their
current ratings: 
  

					
	 Obligor

	  	Moody’s Rating

	  	S&P Rating

	 Solectron
	  	Baa3	  	BBB
	 Jabil Circuits
	  	NR	  	BB
	 Flextronics
	  	Ba3	  	BB

  
 “Specified
Bankruptcy Opinion Provisions” shall mean the factual assumptions (including those contained in the factual certificate referred to therein) and the actions to be taken by the Contributor, the Originators or the Borrower, in each case as
specified in the legal opinion of Clifford Chance Rogers & Wells LLP relating to certain bankruptcy matters delivered on the Closing Date. 
  
 “Specified Potential Termination Event” shall mean any Potential Termination Event excluding those Potential Termination Events
arising from 
  
 (a) any representation, warranty, certification
or statement made by the Borrower in Sections 3.01(d), (e), (g), (h), (j) and (q) having been incorrect in any material respect when made or deemed made; 
  
 (b) the failure to observe or perform the covenants contained in Section
5.01(a), (d) and (e); provided, however, that 
  
 (i) any Potential Termination Event arising from the representation specified in Section 3.01(f) having been incorrect in any
material respect when made or deemed made, shall be considered a “Specified Potential Termination Event” only if such Potential Termination Event arises as a result of a pending, or a reasonable prospect of, a material action,
investigation or proceeding affecting the Borrower; 
  
 (ii) any Potential Termination Event arising from the representation specified in Section 3.01(p) having been incorrect in any material respect when made or deemed made, shall be considered a “Specified Potential Termination
Event” only if such Potential Termination Event arises as a result of a substantial (in the determination of the Funding Agents) number of Obligors (other than Obligors with respect to the Atlas Receivables during the Atlas Transition Period)
failing to have been instructed to make payment to a Lock-Box Account or a UK Collection Account, as appropriate; and 
  

 25 

 (iii) any Potential Termination Event arising from the failure to observe or perform the
covenant specified in Section 5.01(c), shall be considered a “Specified Potential Termination Event” only if such Potential Termination Event arises as a result of a failure to comply with a material Requirement of Law. 

 
 “Standard & Poor’s” or
“S&P” shall mean Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc., and its successors and assigns. 
  
 “Stamp Duty” shall be construed as a reference to any stamp, registration or other transaction or
documentary tax (including, without limitation, any penalty or interest payable in connection with any failure to pay or any delay in paying any of the same). 
  

“Stamp Duty Group” shall mean each of the Borrower, Contributor and the UK Originator. 
  
 “Stamp Duty Reserve Account” shall mean the account
established pursuant to Section 2.12(d) hereof. 
  
 “Stock” shall mean shares of capital stock (whether denominated as common stock or preferred stock), beneficial, partnership or membership interests, participations or other equivalents (regardless of how designated) of or
in a corporation, partnership, limited liability company or equivalent entity, whether voting or non-voting. 
  
 “Stock Equivalents” shall mean all securities convertible into or exchangeable for Stock and all warrants, options or other rights to
purchase or subscribe for any Stock, whether or not presently convertible, exchangeable or exercisable. 
  
 “Subsidiary” shall mean, with respect to any Person, any corporation, partnership, limited liability company or other business entity of
which an aggregate of 50% or more of the outstanding voting Stock is, at the time, directly or indirectly, owned or controlled by such Person and/or one or more Subsidiaries of such Person. 
  
 “Tax Adviser” shall mean a reputable firm of lawyers of
international standing which habitually advises on transactions similar in type and scale to the transactions reflected in the Transaction Documents and including partners who: 
  

	 	(i)	are solicitors of the Supreme Court of England and Wales; and 

  

	 	(ii)	specialize in United Kingdom taxation (including stamp duty). 

  
 “Tax Opinion” shall mean the opinion of Clifford Chance in the form signed for identification relating to the United Kingdom taxation
treatment of the Borrower in connection with the transactions reflected in the Transaction Documents and the application of United Kingdom stamp duty to certain Relevant Documents: 
  
 “Termination Date” shall mean the earliest of (i) the Business Day designated by the Borrower to the
Administrative Agent as the Termination Date at any 

  

 26 

 
time following forty five (45) days’ written notice to the Administrative Agent, (ii) the day upon which a Termination Date is declared or automatically
occurs relating to a Termination Event pursuant to Section 7.02(a) and (iii) the Commitment Expiry Date. 
  
 “Termination Event” shall mean an event described in Section 7.01 of this Agreement. 
  
 “Tranche” shall mean a portion of the Outstanding Loans
allocated to a Tranche Period pursuant to Section 2.04 of this Agreement. 
  
 “Tranche Period” shall mean a CP Tranche Period, a BR Tranche Period or a Eurodollar Tranche Period. 
  
 “Tranche Rate” shall mean the CP Rate, the Base Rate or the Eurodollar Rate. 
  
 “Transaction Documents” shall mean, collectively, this
Agreement, the Contribution Agreement, each Asset Purchase Agreement, each Receivables Purchase Agreement, the Fee Letter, the Lock-Box Agreements and all of the other instruments, documents, certificates and other agreements executed and delivered
by the Contributor or the Borrower in connection with any of the foregoing, in each case, as the same may be amended, restated, supplemented or otherwise modified from time to time. 
  
 “Transfer Supplement” shall have the meaning specified in Section 8.06(c) of this Agreement.

  
 “UCC” means the Uniform Commercial Code as
from time to time in effect in the State of New York; provided, however, that in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection or priority of the Lenders’ security interest in
any Receivable is governed by the Uniform Commercial Code as in effect in a United States jurisdiction other than the State of New York, the term “UCC” shall mean the Uniform Commercial Code as in effect in such other jurisdiction for
purposes of the provisions hereof relating to such attachment, perfection or priority and for purposes of definitions related to such provisions; provided, further, that if the UCC is amended after the date hereof, such amendment will
not be given effect for the purposes of this Agreement if and to the extent the result of such amendment would be to limit or eliminate any item of Receivable. 
  

“UK Collection Account” shall mean the “Originator Collection Account” as defined in Clause 12.1 of the UK Receivables
Purchase Agreement. 
  
 “UK Collection Account
Agreement” shall mean such agreement between the UK Originator, the Borrower and a Lock-Box Bank, in such form to be agreed between the parties hereto. 
  

“UK Collection Account Bank” shall mean each of the banks specified as such in Exhibit B to this Agreement, and such banks as
may be added thereto or deleted therefrom pursuant to Section 2.08 of this Agreement. 
  

 27 

 “UK Originator” shall have the meaning assigned to such term in the Contribution
Agreement. 
  
 “UK Receivables” shall mean the
“Receivables” as defined in the UK Receivables Purchase Agreement. 
  
 “UK Receivables Purchase Agreement” shall have the meaning assigned to such term in the Contribution Agreement. 
  

“U.S.” or “United States” shall mean the United States of America and its territories. 
  

 28 

 EXHIBIT A 
  

CREDIT AND COLLECTION POLICIES AND PRACTICES 
  
 [To Be Provided to the Administrative Agent by the Collection Agent] 
  

 EXHIBIT B 
  

LIST OF LOCK-BOX BANKS, 
  
 UK COLLECTION ACCOUNT BANKS 
  
 AND ACCOUNTS 
  
 [To Be Provided to the Administrative Agent by the Collection Agent] 
  

 EXHIBIT C-1 
  
 FORM OF LOCK-BOX AGREEMENT 
  
 [Date] 
  
 [Name and Address 
 of Lock-Box Bank] 
  

	 	Re:	[COLLECTION AGENT] 

  
 Receipts Account 
 No[s].                     
  
 Ladies and Gentlemen: 
  
 [COLLECTION AGENT] [BORROWER] hereby notifies you that in connection with certain transactions involving its accounts receivable, it has transferred
exclusive control of its receipts account no[s].              maintained with you (collectively the “Accounts”) to The Chase Manhattan Bank, as Administrative Agent
(the “Administrative Agent”), and that [COLLECTION AGENT] [BORROWER] will transfer exclusive control of the Accounts to the Administrative Agent effective upon delivery to you of the Notice of Effectiveness (as hereinafter defined).

  
 In furtherance of the foregoing, [COLLECTION AGENT] [BORROWER]
and the Administrative Agent hereby instruct you, beginning on the date of your receipt of the Notice of Effectiveness: (i) to collect the monies, checks, instruments and other items of payment mailed to the Accounts; (ii) to deposit into the
Accounts all such monies, checks, instruments and other items of payment or all funds collected with respect thereto (unless otherwise instructed by the Administrative Agent); and (iii) to transfer all funds deposited and collected in the Accounts
pursuant to instructions given to you by the Administrative Agent from time to time. 
  
 You are hereby further instructed: (i) unless and until the Administrative Agent notifies you to the contrary at any time after your receipt of the Notice of Effectiveness, to make such transfers from the Accounts at
such times and in such manner as [COLLECTION AGENT] [BORROWER], [in its capacity as collection agent for the Administrative Agent,] shall from time to time instruct to the extent such instructions are not inconsistent with the instructions set forth
herein, and (ii) to permit [COLLECTION AGENT] [BORROWER] [(in its capacity as collection agent for the Administrative Agent)] and the Administrative Agent to obtain upon request any information relating to the Accounts, including, without
limitation, any information regarding the balance or activity of the Accounts. 
  

 [COLLECTION AGENT] [BORROWER] also hereby notifies you that, beginning on the date of your receipt of the
Notice of Effectiveness and notwithstanding anything herein or elsewhere to the contrary, the Administrative Agent, and not the Borrower, shall be irrevocably entitled to exercise any and all rights in respect of or in connection with the Accounts,
including, without limitation, the right to specify when payments are to be made out of or in connection with the Accounts. The Administrative Agent has a continuing interest in all of the checks and their proceeds and all monies and earnings, if
any, thereon in the Accounts, and you shall be the Administrative Agent’s agent for the purpose of holding and collecting such property. The monies, checks, instruments and other items of payment mailed to, and funds deposited to, the Accounts
will not be subject to deduction, set-off, banker’s lien, or any other right in favor of any person other than the Administrative Agent (except that you may set off (i) all amounts due to you in respect of your customary fees and expenses for
the routine maintenance and operation of the Accounts, and (ii) the face amount of any checks which have been credited to the Accounts but are subsequently returned unpaid because of uncollected or insufficient funds). 
  
 This Agreement may not be terminated at any time by [COLLECTION AGENT]
[BORROWER] or you without the prior written consent of the Administrative Agent. Neither this Agreement nor any provision hereof may be changed, amended, modified or waived orally but only by an instrument in writing signed by the Administrative
Agent, [COLLECTION AGENT] and you. 
  
 You shall not assign or
transfer your rights or obligations hereunder (other than to the Administrative Agent) without the prior written consent of the Administrative Agent and [COLLECTION AGENT] [BORROWER]. Subject to the preceding sentence, this Agreement shall be
binding upon each of the parties hereto and their respective successors and assigns, and shall inure to the benefit of, and be enforceable by, the Administrative Agent, each of the parties hereto and their respective successors and assigns.

  
 You hereby represent that the person signing this Agreement on
your behalf is duly authorized by you to so sign. 
  
 You agree to
give the Administrative Agent and [COLLECTION AGENT] [BORROWER] prompt notice if the Accounts become subject to any writ, garnishment, judgment, warrant of attachment, execution or similar process. 
  
 [COLLECTION AGENT] [BORROWER] AGREES TO INDEMNIFY AND HOLD YOU HARMLESS FROM
AND AGAINST ANY AND ALL LIABILITIES, LOSSES, COSTS AND EXPENSES (INCLUDING REASONABLE ATTORNEYS’ FEES) WHICH YOU MAY SUFFER OR INCUR IN CONNECTION WITH THIS AGREEMENT OR THE MAINTENANCE OF THE ACCOUNTS, INCLUDING BUT NOT LIMITED TO THOSE WHICH
IN WHOLE OR IN PART ARISE OUT OF YOUR NEGLIGENCE, BUT NOT INCLUDING THOSE ARISING OUT OF YOUR GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. IN NO 

  

 2 

 
EVENT SHALL YOU BE LIABLE FOR ANY INCIDENTAL, INDIRECT, PUNITIVE OR CONSEQUENTIAL DAMAGES. 
  
 Notwithstanding any other provision of this Agreement, you shall not be liable for any failure, inability to perform, or
delay in performance hereunder, if such failure, inability, or delay is due to acts of God, war, civil commotion, governmental action, fire, explosion, terrorist activities, strikes, other industrial disturbances, equipment malfunction, outages of
computers, action, non-action or delayed action on the part of [COLLECTION AGENT] [BORROWER] or Administrative Agent, or any other entity or any other causes that are beyond your reasonable control, or for any such failure, or delay resulting from
your reasonable belief that the action would violate any guideline, rule or regulation of any Governmental Authority. 
  
 Any notice, demand or other communication required or permitted to be given hereunder shall be in writing and may be personally served or sent by
facsimile or by courier service or by United States mail and shall be deemed to have been delivered when delivered in person or by courier service or by facsimile or three (3) Business Days after deposit in the United States mail (registered or
certified, with postage prepaid and properly addressed). For the purposes hereof, (i) the addresses of the parties hereto shall be as set forth below each party’s name below, or, as to each party, at such other address as may be designated by
such party in a written notice to the other party and the Administrative Agent and (ii) the address of the Administrative Agent shall be The Chase Manhattan Bank, 450 West 33rd Street, 15th Floor, New York, New York 10001, Attention:
[                    ], Telephone: (212) [            ], Telecopy: (212)
[            ] or at such other address as may be designated by the Administrative Agent in a written notice to each of the parties hereto. 
  
 Please agree to the terms of, and acknowledge receipt of, this notice by
signing in the space provided below. 
  
 The transfer of control
of the Accounts, referred to in the first paragraph of this letter, shall become effective upon delivery to you of a notice (the “Notice of Effectiveness”) in substantially the form attached hereto as Annex “1”.

  

			
	Very truly yours,
	
	[COLLECTION AGENT] [BORROWER]
		
	 By:
	 	 
	 	 	

			
		
	 Title:
	 	 
	 	 	

			
		
	 Attention:
	 	 
	 	 	

			
		
	 Facsimile No.:
	 	 
	 	 	

  

 3 

 ACKNOWLEDGED AND AGREED: 
  

									
	 [NAME OF LOCK-BOX BANK]
	 	 	 	 THE CHASE MANHATTAN BANK,
 as Administrative
Agent

					
	By:	 	 	 	 	 	By:	 	 
	 	 	
	 	 	 	 	 	

					
	Title:	 	 	 	 	 	Title:	 	 
	 	 	
	 	 	 	 	 	

					
	Date:	 	 	 	 	 	Date:	 	 
	 	 	
	 	 	 	 	 	

  

											
	 [Address]
	 	 	 	 	 	           [Address]
	 	 	 	 
	 Attention:
	 	 	 	 	 	           Attention:
	 	 
	 	 	
	 	 	 	 	 	

						
	 Facsimile No.:
	 	 	 	 	 	           Facsimile No.:
	 	 	 	 
	 	 	
	 	 	 	 	 	 	 	

  

 4 

 ANNEX 1 
  
 TO LOCK-BOX AGREEMENT 
  
 [FORM OF NOTICE OF EFFECTIVENESS] 
  
 DATED:                          
  

	TO:	[Name of Lock-Box Bank] 

	    	[Address] 

 ATTN:                                     
    
  

	 	Re:	Receipts Account No[s].             

  
 Ladies and Gentlemen: 
  
 We hereby give you notice that the transfer of control of the above-referenced Receipts Account[s], as described in our letter agreement with you dated
            , is effective as of the date hereof. You are hereby instructed to comply immediately with the instructions set forth in that letter. 
  

			
	 Very truly yours,
  
 [COLLECTION AGENT] [BORROWER]

		
	By:	 	 
	 	 	

		
	Title:	 	 
	 	 	

  

			
	ACKNOWLEDGED AND AGREED:
	
	[NAME OF LOCK-BOX BANK]
		
	By:	 	 
	 	 	

		
	Title:	 	 
	 	 	

		
	Date:	 	 
	 	 	

			
		
	 [Address]
	 	 
	Attention:	 	 
	 	 	

		
	Facsimile No.:	 	 
	 	 	

  

 5 

 EXHIBIT D 
  

FORM OF SETTLEMENT STATEMENT 
  
 [To Be Provided to the Administrative Agent by the Collection Agent] 
  

 EXHIBIT E-1 
  
 FORM OF REVOLVING CREDIT NOTE 
  

			
	US$[                    ]	  	August [    ], 2000

  
 Reference is made to
the Asset-Backed Loan Agreement, dated as of August [    ], 2000 (as amended, supplemented or otherwise modified and in effect from time to time, the “Agreement”), by and among TRIANGLE RECEIVABLES FUNDING
LLC, as borrower (in such capacity, the “Borrower”), PARK AVENUE RECEIVABLES CORPORATION (“PARCO”), SHEFFIELD RECEIVABLES CORPORATION (“Sheffield”, and together with PARCO, the “CP Conduit
Lenders”), BARCLAYS BANK PLC (“Barclays”), as Sheffield’s funding agent (in such capacity, the “Sheffield Funding Agent”) and THE CHASE MANHATTAN BANK (“Chase”), as PARCO’s
funding agent (in such capacity, the “PARCO Funding Agent”), as administrative agent (in such capacity, the “Administrative Agent”), as collection agent (in such capacity, the “Collection Agent”)
and as PARCO APA Bank. Terms defined in the Agreement, or incorporated therein by reference, are used herein as therein defined. 
  
 The Borrower, for value received, hereby promises to pay to the order of
[                            ] (the “Lender”), at its office at
[                                    ] or such other office as
the Lender may designate, the principal amount of [                            ], or, if less, the
unpaid principal amount of all Loans outstanding and owing to the Lender under the Agreement. Each Loan shall be due and payable as provided in the Agreement. The Borrower also promises to pay interest on the unpaid principal amount hereof from time
to time outstanding, at such interest rate and on such dates as are determined pursuant to the Agreement. All such principal and interest shall be payable in lawful money of the United States of America in same day funds in The City of New York.

  
 Each Loan by the Borrower from a Lender, and each reduction or
increase in the Outstanding Loans in respect of each Loan evidenced hereby, shall be indicated by the Funding Agent with respect to such Lender on the grid attached hereto which is part of this Note. 
  
 This Note is made without recourse except as otherwise provided in the
Agreement. 
  
 This Note shall be governed by, and construed in
accordance with, the laws of the State of New York. 
  

 IN WITNESS WHEREOF, the undersigned has caused this Note to be duly executed and delivered by its duly
authorized officer as of the date first above written. 
  

			
	TRIANGLE RECEIVABLES FUNDING LLC
		
	By	 	 
	 	 	

	 	 	 Name:

	 	 	 Title:

  

 2 

 EXHIBIT E-2 
  
 FORM OF LOAN CERTIFICATE 
  
 REVOLVING CREDIT LOANS 
  

									
	 Date of
 Loan

	  	 Principal Amount
 of Loan

	  	 Payments or
 Prepayments of
 Principal

	  	 Balance
 Outstanding

	  	 Notation
 Made By

  

 EXHIBIT F 
  

FORM OF LENDER SUPPLEMENT 
  
 THIS LENDER SUPPLEMENT is entered into as of the      day of
                    , 20    , by and between
                     (the “Seller”) and
                     (the “Purchaser”). 
  
 PRELIMINARY STATEMENTS 
  
 A. This Lender Supplement is being executed and delivered in accordance with Section 8.06(c) of that certain Asset-Backed Loan Agreement, dated as
of August [    ], 2000 (as amended, supplemented or otherwise modified and in effect from time to time, the “Agreement”), by and among TRIANGLE RECEIVABLES FUNDING LLC, as borrower (in such capacity, the
“Borrower”), PARK AVENUE RECEIVABLES CORPORATION (“PARCO”), SHEFFIELD RECEIVABLES CORPORATION (“Sheffield”, and together with PARCO, the “CP Conduit Lenders”), BARCLAYS BANK PLC
(“Barclays”), as Sheffield’s funding agent (in such capacity, the “Sheffield Funding Agent”) and THE CHASE MANHATTAN BANK (“Chase”), as PARCO’s funding agent (in such capacity, the
“PARCO Funding Agent”) and as administrative agent (in such capacity, the “Administrative Agent”), as collection agent (in such capacity, the “Collection Agent”) and as a PARCO APA Bank. Capitalized
terms used herein and not otherwise defined herein are used with the meanings set forth in, or incorporated by reference into, the Agreement. 
  
 B. The Seller is a Lender party to the Agreement, and the Purchaser wishes to become a Lender Bank thereunder. 
  
 C. The Seller is selling and assigning to the Purchaser an undivided
             % (the “Transferred Percentage”) interest in all of Seller’s rights and obligations under the Agreement and the other Transaction Documents,
including, without limitation, the Seller’s Funding Limit and (if applicable) the Seller’s Outstanding Loans as set forth herein. 
  
 The parties hereto hereby agree as follows: 
  
 1. The transfer effected by this Lender Supplement shall become effective (the “Supplement Effective Date”) two (2) Business Days (or
such other date selected by the Administrative Agent (in consultation with the Lenders)) following the date on which a transfer effective notice substantially in the form of Schedule II to this Lender Supplement (“Supplement Effective
Notice”) is delivered by the Administrative Agent to the Funding Agents, the Borrower, the Seller and the Purchaser. From and after the Supplement Effective Date, the Purchaser shall be a Lender party to the Agreement for all purposes
thereof as if the Purchaser were an original party thereto and the Purchaser agrees to be bound by all of the terms and provisions contained therein. 
  

 2. If there are no Outstanding Loans with respect to the Seller on the Supplement Effective Date, Seller
shall be deemed to have hereby transferred and assigned to the Purchaser, without recourse, representation or warranty (except as provided in paragraph 6 below), and the Purchaser shall be deemed to have hereby irrevocably taken, received and
assumed from the Seller, the Transferred Percentage of the Seller’s Funding Limit and all rights and obligations associated therewith under the terms of the Agreement, including, without limitation, the Transferred Percentage of the
Seller’s future funding obligations under the Agreement. 
  
 3. If there are Outstanding Loans with respect to the Seller, at or before 12:00 noon, local time of the Seller, on the Supplement Effective Date, the Purchaser shall pay to the Seller, in immediately available funds, an amount equal to the
sum of (i) the Transferred Percentage of an amount equal to the Seller’s Outstanding Loans (such amount, being hereinafter referred to as the “Purchaser’s Outstanding Loans”); (ii) all accrued but unpaid (whether or not
then due) interest attributable to the Purchaser’s Outstanding Loans; and (iii) accrued but unpaid fees and other costs and expenses payable in respect of the Purchaser’s Outstanding Loans for the period commencing upon each date such
unpaid amounts commence accruing, to and including the Supplement Effective Date (the “Purchaser’s Acquisition Cost”), whereupon, the Seller shall be deemed to have transferred and assigned to the Purchaser, without recourse,
representation or warranty (except as provided in paragraph 6 below), and the Purchaser shall be deemed to have hereby irrevocably taken, received and assumed from the Seller, the Transferred Percentage of the Seller’s Funding Limit and
Outstanding Loans and all related rights and obligations under the Agreement and the other Transaction Documents, including, without limitation, the Transferred Percentage of the Seller’s future funding obligations under the Agreement.

  
 4. Concurrently with the execution and delivery hereof, the
Seller will provide to the Purchaser copies of all documents requested by the Purchaser which were delivered to such Seller pursuant to the Agreement. 
  
 5. Each of the parties to this Lender Supplement agrees that at any time and from time to time upon the written request of any other party, it will
execute and deliver such further documents and do such further acts and things as such other party may reasonably request in order to effect the purposes of this Lender Supplement. 
  
 6. By executing and delivering this Lender Supplement, the Seller and the Purchaser confirm to and agree with each other,
the Administrative Agent, the Borrower and the Lenders as follows: (a) other than the representation and warranty that it has not created any Adverse Claim upon any interest being transferred hereunder, the Seller makes no representation or warranty
and assumes no responsibility with respect to any statements, warranties or representations made by any other Person in or in connection with the Agreement or the other Transaction Documents or the execution, legality, validity, enforceability,
genuineness, sufficiency or value thereof or any other instrument or document furnished pursuant thereto or the perfection, priority, condition, value or sufficiency of any collateral; (b) the Seller makes no representation or warranty and assumes
no responsibility with respect to the financial condition of any Lender, the 

  

 2 

 
Borrower, the Collection Agent, any surety or any guarantor or the performance or observance by the Lenders, the Borrower, the Funding Agents or the
Collection Agent of any of their respective obligations under any of the Transaction Documents or any other instrument or document furnished pursuant thereto or in connection therewith; (c) the Purchaser confirms that it has received a copy of the
Agreement and the other Transaction Documents, together with such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Lender Supplement; (d) the Purchaser will, independently
and without reliance upon the Funding Agents, any Lender or the Administrative Agent, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action
under the Agreement or the other Transaction Documents; (e) the Purchaser appoints and authorizes the Funding Agent and the Administrative Agent to take such action as agent on its behalf and to exercise such powers under the Agreement as are
delegated to the Funding Agent or the Administrative Agent, respectively, by the terms thereof, together with such powers as are reasonably incidental thereto; (f) the Purchaser was not formed for the purpose of acquiring the interest being acquired
hereunder; and (g) the Purchaser agrees that it will perform in accordance with their terms all of the obligations which, by the terms of the Agreement and the other Transaction Documents, are required to be performed by it as a Lender. 

 
 7. Each party hereto represents and warrants to and agrees with the
Administrative Agent that it is aware of and will comply with the provisions of the Agreement. 
  
 8. Schedule I hereto sets forth the revised Funding Limit of the Seller and the Funding Limit of the Purchaser, as well as administrative information with respect to the Purchaser. 
  
 9. This Lender Supplement shall be governed by, and construed in accordance
with, the laws of the State of New York. 
  

 3 

 IN WITNESS WHEREOF, the parties hereto have caused this Lender Supplement to be executed by their
respective duly authorized officers of the date hereof. 
  

			
	[SELLER]
		
	By:	 	 
	 	 	

	 	 	 Name:

	 	 	 Title:

	
	[PURCHASER]
		
	By:	 	 
	 	 	

	 	 	 Name:

	 	 	 Title:

  

 4 

 SCHEDULE I TO LENDER SUPPLEMENT 
  
 LIST OF PURCHASING OFFICES, ADDRESSES 
 FOR NOTICES AND FUNDING LIMITS 
  
 Date:                 , 20   
  
 Transferred Percentage:     % 
  

					
	Funding Limit	 	Funding Limit	 	Outstanding Loans
	[existing share]	 	[revised]	 	 

  

					
	Funding Limit	 	Funding Limit	 	Outstanding Loans
	[existing]	 	[revised]	 	 

  
 Address for Notices:

  
 ______________________ 
 ______________________ 
 ______________________ 
  
 Attention: 
 Telephone: 
 Telecopy: 
  

 5 

 SCHEDULE II TO LENDER SUPPLEMENT 
  
 SUPPLEMENT EFFECTIVE NOTICE 
  
 TO: _____________________, Seller 
         _____________________ 
         _____________________ 
  
 TO: _____________________, Purchaser 
         _____________________ 
         _____________________ 
  
 The undersigned, pursuant to that certain Asset-Backed Loan Agreement, dated as of August
[            ], 2000 (as amended, supplemented or otherwise modified and in effect from time to time, the “Agreement”), by and among TRIANGLE RECEIVABLES FUNDING
LLC, as borrower (in such capacity, the “Borrower”), PARK AVENUE RECEIVABLES CORPORATION (“PARCO”), SHEFFIELD RECEIVABLES CORPORATION (“Sheffield”, and together with PARCO, the “CP Conduit
Lenders”), BARCLAYS BANK PLC (“Barclays”), as Sheffield’s funding agent (in such capacity, the “Sheffield Funding Agent”) and THE CHASE MANHATTAN BANK (“Chase”), as PARCO’s
funding agent (in such capacity, the “PARCO Funding Agent”), as administrative agent (in such capacity, the “Administrative Agent”), as collection agent (in such capacity, the “Collection Agent”)
and as a PARCO APA Bank, hereby acknowledges receipt of executed counterparts of a completed Lender Supplement, dated as of             , 20    ,
between                 , as Seller, and                 , as
Purchaser. Capitalized terms defined in such Lender Supplement are used herein as therein defined or incorporated by reference therein. 
  
 1. Pursuant to such Lender Supplement, you are advised that the Supplement Effective Date will be
            , 20    . 
  
 2. The Borrower and the Administrative Agent each hereby consents to the Lender Supplement as required by Section 8.06(c) of the Agreement.

  
 [3. Pursuant to such Lender Supplement, the Purchaser is
required to pay $     to the Seller at or before 12:00 noon (local time of the Seller) on the Supplement Effective Date in immediately available funds.] 
  

			
	 Very truly yours,

	
	The Chase Manhattan Bank, as Administrative Agent
		
	By:	 	 
	 	 	

	 	 	 Authorized Signatory

  

 6 

 EXHIBIT G 
  

LOCATION OF RECORDS 
  
 [To be Provided to the Administrative Agent by the Collection Agent] 
  

 EXHIBIT H 
  

LIST OF TRADE NAMES OF THE BORROWER 
  
 [To be Provided to the Administrative Agent by the Collection Agent] 
  

 EXHIBIT I 
  

FORMS OF OPINIONS OF COUNSEL 
  

 Form of Enforceability Opinion 
  
 [    ], 2000 
  
 To the Persons Listed 
 on Schedule I hereto 
  
 Ladies and Gentlemen: 
  
 We have acted as special New York counsel to Triangle Receivables Funding LLC, a newly formed special purpose Delaware limited liability
company (the “Company”) in connection with the Asset Backed Loan Agreement dated as of August 6, 2000 (the “Loan Agreement”), among the Company, as Borrower, Park Avenue Receivables Corporation and Sheffield
Receivables Corporation, as CP Conduit Lenders, Certain PARCO APA Banks, Barclays Bank plc, as Sheffield Funding Agent, and the Administrative Agent, as Administrative Agent, PARCO Funding Agent and Collection Agent. This opinion is being delivered
pursuant to Section 4.01(d) of the Loan Agreement. Capitalized terms not otherwise defined herein have the meanings assigned to such terms in the Loan Agreement. 
  
 In rendering the opinions expressed below, we have examined originals or copies certified or otherwise authenticated to our satisfaction of
the Loan Agreement. In addition, we have reviewed and relied on the legal opinion of Richards, Layton & Finger (as to certain Delaware corporate law matters relating to the Company), addressed to you and dated the date hereof. 
  
 We have examined and relied upon originals and copies certified to our satisfaction of such
other documents, and such matters of law, as we have deemed necessary in connection with the opinions hereinafter expressed. In such examination, we have assumed the genuineness of all signatures, the authenticity of all documents submitted to us as
originals, the conformity to the originals of all such documents submitted to us as certified, conformed or photostatic copies, and the authenticity of the originals of such latter documents. As to questions of fact material to such opinions we
have, when relevant facts were not independently established, relied upon the representations, warranties, covenants and other agreements of the various parties contained in the Loan Agreement. 
  
 We have assumed for purposes of our opinions hereinafter set forth that the Loan Agreement
has been duly authorized, executed and delivered by each of the parties thereto, and that each such party has full power, legal right and authority to make and perform its obligations under such documents to which it is a party, and the Loan
Agreement constitutes, on the date hereof, the legal, valid and binding obligation of each such party (other than the Company), enforceable against such party in accordance with its respective terms. In addition, we have assumed that each of the
parties thereto is duly organized, validly existing and in good standing under the laws of such party’s jurisdiction of organization and that each of 

  

 To the Parties Listed 
 on Schedule I hereto 
 August 6, 2000 
  

 
the parties to the Loan Agreement has obtained all approvals, authorizations, consents and licenses (including any foreign exchange licenses) from, and has
made all filings and registrations with, all governmental or regulatory authorities or agencies required for the execution and delivery of, or for the performance of its obligations under, the Loan Agreement. 
  
 Based upon the foregoing and subject to the comments and qualifications set forth below, we
are of the opinion that: 
  

	 	(i)	Upon due authorization, execution and delivery by each party thereto, the Loan Agreement will constitute the legal, valid and binding obligation of the Company, enforceable against
the Company in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization or other laws relating to or affecting creditors' rights generally and to the application of general equity principles.

  

	 	(ii)	The Company is not an investment company as defined in the United States Investment Company Act of 1940, as amended (the “Investment Company Act”) or required to be
registered pursuant to the Investment Company Act. 

  
 Our opinions
set forth above are subject to the following qualifications and limitations: 
  

	 	(a)	We express no opinion as to whether a federal or state court outside of the State of New York would give effect to the choice of New York law provided for in the Loan Agreement.

  

	 	(b)	We express no opinion as to Section 2.14 of the Loan Agreement, as such section relates to the setoff rights amongst the Lenders under the sharing provisions.

  

	 	(c)	We express no opinion as to Section 8.02 of the Loan Agreement insofar as such Section provides that the terms of the Loan Agreement may not be waived or modified except in writing,
which may be limited under certain circumstances. 

  

	 	(d)	We express no opinion as to the waiver of inconvenient forum set forth in Section 8.04 of the Loan Agreement insofar as such provision relates to proceedings in the United States
District Court for the Southern District Court for the Southern District of New York. 

  

 To the Parties Listed 
 on Schedule I hereto 
 August 6, 2000 
  

 We are members of the bar of the State of New York and we express no opinion herein as to any matters governed by
laws other than the laws of the State of New York and the federal securities laws of the United States of America. We have with your permission assumed the correctness of the conclusions expressed in the legal opinion of Richards, Layton &
Finger (as to certain Delaware corporate law matters relating to the Company), addressed to you and dated the date hereof without independently investigating or verifying the matters covered thereby. 
  
 This opinion is rendered solely to you and is solely for your benefit in connection with the
transactions contemplated in the Loan Agreement. It may not be relied upon by you for any purpose, or quoted to or relied upon by any other person, firm or corporation for any purpose, and, without our prior written consent, may not be transmitted
or disclosed to any other person save to Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc., and Moody’s Investors Service, Inc., who may rely on this opinion as if it were addressed to them, and their
respective legal advisers. 
  
 Very truly yours, 
  

 Schedule I 
 Addressees 
  
 Triangle Receivables Funding
LLC 
 c/o Memec, LLC 
 9980 Huennekens Street 
 San Diego, CA 92121 
  
 The Chase Manhattan Bank, 
 as Administrative Agent 
 450 West 33rd Street, 15th Floor 
 New York, NY 10001 
  
 Park Avenue Receivables Corporation, 
 as CP Conduit Lender 
 114 West 47th Street 
 Suite 1715 
 New York, NY 10036 
  
 Sheffield Receivables Corporation, 
 as CP Conduit Lender 
 c/o Barclays Bank PLC 
 222 Broadway, 7th Floor 
 New York, NY 10038 
  

 Form of Security Interest Opinion 
  
 [    ], 2000 
  
 To the Persons Listed 
 on Schedule I hereto 
  
 Ladies and Gentlemen: 
  
 We have acted as special New York counsel to Triangle Receivables Funding LLC, a newly formed special purpose Delaware limited liability
company (the “Company”), in connection with (a) the contribution by Memec LLC, a Delaware limited liability company (the "Contributor") of certain trade receivables to the Company pursuant to the Contribution Agreement dated as of [ ],
2000 (the “Contribution Agreement”) between the Contributor and the Company, and (b) the grant by the Company of a security interest in all of its right, title and interest in and to the Contribution Agreement and certain trade receivables
to The Chase Manhattan Bank, solely in its capacity as Administrative Agent (in such capacity, the “Administrative Agent”) pursuant to the Asset Backed Loan Agreement dated as of July [ ], 2000 (the "Loan Agreement"), among the Company, as
Borrower, the Administrative Agent, as Administrative Agent, PARCO Funding Agent and Collection Agent, Park Avenue Receivables Corporation and Sheffield Receivables Corporation, as CP Conduit Lenders, certain PARCO APA Banks and Barclays Bank plc,
as Sheffield Funding Agent. This opinion is rendered pursuant to Section 4.02(i) of the Loan Agreement. Capitalized terms not otherwise defined herein have the meanings assigned to such terms in the Loan Agreement. 
  
 In rendering the opinions expressed below, we have examined originals or copies certified or
otherwise authenticated to our satisfaction of the documents listed on Schedule II hereto. In addition, we refer to the legal opinion of Richards, Layton & Finger (as to certain Delaware corporate law matters relating to the Company), addressed
to you and dated the date hereof. 
  
 In such examination, we have assumed the
genuineness of all signatures, the authenticity of all documents submitted to us as originals, the conformity to the originals of all such documents submitted to us as certified, conformed or photostatic copies, and the authenticity of the originals
of such latter documents. As to questions of fact material to such opinions we have, when relevant facts were not independently established, relied upon the representations and warranties in the Contribution Agreement and the Loan Agreement.

  
 We have assumed for purposes of our opinion hereinafter set forth that the
Loan Agreement and each other Transaction Document has been duly authorized, executed and delivered by each of the parties 

  

 To the Persons Listed 
 on Schedule I hereto 
 [    ], 2000 
  

 
thereto, and that each such party has full power, legal right and authority to make and perform its obligations under such documents to which it is a party,
and the Loan Agreement and each other Transaction Document constitutes, on the date hereof, the legal, valid and binding obligation of each such party, enforceable against such party in accordance with its respective terms. In addition, we have
assumed that each of the parties thereto is duly organized, validly existing and in good standing under the laws of such party’s jurisdiction of organization, and that the Company is not entering into the transactions contemplated in the Loan
Agreement with the interest of hindering, delaying or defrauding creditors. 
  
 Based upon the foregoing and subject to the comments and qualifications set forth below, we are of the opinion that the Loan Agreement creates a valid security interest in all right, title and interest of the Company in the Contribution
Agreement, the Receivables and the proceeds thereof in favor of the Administrative Agent. 
  
 Our opinion set forth above is subject to the following qualifications and limitations: 
  

	(i)	We have assumed that the Receivables exist and we express no opinion as to the nature or extent of the rights or title of the Company in or to the Receivables.

  

	(ii)	We express no opinion regarding the security interest in any of the Receivables consisting of claims against any government or governmental agency (including, without limitation,
the United States of America or any state thereof or any agency or department of the United States of America or any state thereof). 

  

	(iii)	In the case of any Receivable secured by other property, we express no opinion with respect to the rights of the Company or the Administrative Agent, respectively, in and to such
underlying property. 

  

	(iv)	We express no opinion as to the priority of any security interest purported to be created by the Loan Agreement. 

  

	(v)	We express no opinion as to the perfection of any security interest purported to be created by the Loan Agreement. 

  

	(vi)	We express no opinion as to the creation of any security interest in any property (other than accounts and general intangibles for money due or to become due) which prohibits the
assignment thereof or the creation of a security interest therein without, in each case, the consent of the account debtor thereof. 

  

 - 2 - 

 To the Persons Listed 
 on Schedule I hereto 
 [    ], 2000 
  

 We are members of the bar of the State of New York and we express no opinion herein as to any matters governed by
laws other than the laws of the State of New York. We refer you to our legal opinion (as to certain New York law matters relating to the Company), addressed to you and dated the date hereof, and we have with your permission assumed the correctness
of the conclusions expressed in the legal opinion of Richards, Layton & Finger (as to certain Delaware corporate law matters relating to the Company), addressed to you and dated the date hereof without independently investigating or verifying
the matters covered thereby. 
  
 This opinion is rendered solely to you and is
solely for your benefit in connection with the transactions contemplated in the Loan Agreement and the other Transaction Documents. It may not be relied upon by you for any purpose, or quoted to or relied upon by any other person, firm or
corporation for any purpose, and, without our prior written consent, may not be transmitted or disclosed to any other person save to Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc., and Moody’s
Investors Service, Inc., who may rely on this opinion as if it were addressed to them, and their respective legal advisers. 
  
 Very truly yours, 
  

 - 3 - 

 Schedule I 
  
 Addressees 
  
 Triangle Receivables Funding LLC 
 c/o Memec, LLC 
 9980 Huennekens Street 
 San Diego, CA 92121 
  
 The Chase Manhattan Bank, 
 as Administrative
Agent 
 450 West 33rd Street, 15th Floor 
 New York, NY 10001

  
 Park Avenue Receivables Corporation, 
 as a CP Conduit Lender 
 114 West 47th Street, Suite 1715 
 New York, NY 10036 
  
 Sheffield Receivables Corporation, 
 as a CP Conduit Lender 
 c/o Barclays Bank PLC 
 222 Broadway, 7th Floor 
 New York, NY 10038 
  

 Schedule II 
  
 List of Documents Reviewed by 
 Clifford Chance
Rogers & Wells LLP 
  

	1.	Contribution Agreement. 

  

	2.	Loan Agreement. 

  

	3.	Unfiled copies of the financing statements naming Triangle Receivables Funding LLC as “Debtor” and The Chase Manhattan Bank, as Administrative Agent, as “Secured
Party” and describing the Contribution Agreement and the relevant Receivables, which we understand will be filed in the relevant filing offices. 

  

 Form of Perfection Opinion 
  
 __________________, 2000 
  
 The Chase Manhattan Bank, 
 as Administrative Agent 
 450 West 33rd Street 
 15th Floor 
 New York, NY 10001 
  
 Park Avenue Receivables Corporation 
  
 [address]

  
 Sheffield Receivables Corporation 
  
 [address] 
  

	 	Re:	Triangle Receivables Funding LLC 

	 	    	Asset-Backed Loan Agreement  

	 	    	Perfection of Security Interest 

  
 Ladies and Gentlemen: 
  
 We have acted as local counsel for Triangle Receivables Funding LLC, a Delaware limited liability company (the “Borrower”) in connection
with the Borrower’s request for an extension of a revolving loan facility from Park Avenue Receivables Corporation (“PARCO”), Sheffield Receivables Corporation (“Sheffield”) and certain PARCO APA Banks
(“APA Banks” collectively with PARCO and Sheffield, the “Lenders”) set forth on the signature page of the Loan Agreement (defined below) pursuant to the Asset-Backed Loan Agreement, dated as of ________, 2000 (the
“Loan Agreement”) by and between Borrower, Lenders, Barclays Bank PLC and The Chase Manhattan Bank. 
  
 Under the terms of the Loan Agreement, the Borrower will transfer (the “Transfer”) to the Lenders, a security interest in and to certain
Receivables and Receivables Assets contributed to the Borrower by Memec, LLC from time to time, which Receivables are identified in a Daily Report concurrently delivered to the Borrower and identified in the Financing Statements described below, as
security for the Borrower’s obligations under the Loan Agreement. 
  
 This opinion is being furnished pursuant to Subsection 4.02(j) of the Loan Agreement. Capitalized terms used but not otherwise defined herein have the meanings ascribed in the Loan Agreement. In this letter, the term “Code”
means the Uniform Commercial Code as currently in 

  

 The Chase Manhattan Bank 
 Park Avenue Receivables Corporation 
 Sheffield Receivables Corporation 
                     , 2000 
 Page 2 
  

 
effect in the State of California, and the term “Proceeds” means all proceeds, as defined in the Code, of the Receivables. 
  
 1. Documents. For purposes of rendering this opinion, we have examined
originals or copies identified to our satisfaction of the following documents: 
  
 (a) the Loan Agreement; 
  
 (b) an acknowledgment copy of the UCC–I Financing Statements naming the Borrower as Debtor and The Chase Manhattan Bank, as
Administrative Agent and as Secured Party, each filed on                             , 2000 with the
California Secretary of State as Document Nos.                            ,
                ,
                             and file-stamped “FILED SACRAMENTO, CA, ___________, 2000” (the
“Financing Statements”). 
  
 We have also made
such investigations of law as we have deemed necessary as a basis for the opinions set forth herein. As to matters of fact relevant to the opinions contained herein, we have made such inquiries of and been furnished with such certificates from
certain of the officers of the Borrower as we deem necessary for the purposes of this opinion, but we have made no independent investigation as to any matter of fact, nor have we independently verified any information obtained from or certified by
such officers or third parties. As to such matters of fact, we have relied solely upon (i) such inquiries and certificates, and (ii) the information and representations contained in the documents listed above examined by us. We have represented the
Borrower in connection with this specific transaction only. We have acted only as local counsel to the Borrower and are not generally familiar with the Borrower’s background, operating histories or other business and affairs. 
  
 2. Assumptions. For purposes of this opinion, we have assumed (i) the
due authorization, execution and delivery by all parties thereto of the documents listed above and examined by us; (ii) that all such parties have the legal power to act in the capacities in which they are to act under such documents; (iii) the
conformity to the original documents of any documents submitted to us as certified or photostatic copies, the authenticity of the documents and the genuineness of all signatures on the documents; (iv) that each such document is the legal, valid and
binding obligation of all parties thereto, enforceable against each such party in accordance with its terms; (v) that the Loan Agreement creates a valid sale or security interest in favor of the Lenders in the Receivables and Proceeds; (vi) that
each such party has performed and will perform its obligations thereunder; and (vii) that the Receivables constitute “accounts” as described in Section 9106 of the Code. With respect to the assumptions in clause (iv) and (v) of this
paragraph as they relate to the Borrower and the Loan Agreement, we understand that you are relying on the separate opinion of Clifford Chance Rogers & Wells, New York, of even date herewith addressed to you. 
  

 The Chase Manhattan Bank 
 Park Avenue Receivables Corporation 
 Sheffield Receivables Corporation 
                     , 2000 
 Page 3 
  

 In expressing the opinions set forth herein we have relied, without independent investigation, upon a
UCC Search Report for the Borrower obtained from the Secretary of State of California dated as of
                        , 2000 showing filings through
                        , 2000 (the “UCC Search Date[s]”) with respect to financing statements and
related filings and certain notices of federal tax liens, California state tax liens and judgment liens with respect to the Borrower on file with the office of the California Secretary of State, (the “UCC Search Reports”).

  
 With respect to the opinions contained herein, we have assumed
the following, without independent investigation or verification: 
  
 (A) based upon the certificates of certain of the officers of the Borrower, that the principal place of business and chief executive office for the Borrower is located at _____________________, and that substantially
all offices, books, records, equipment and tangible personal property of the Borrower is located in the State of California; 
  
 (B) based upon the certificates of certain of the officers of the Borrower, that the Borrower has not changed its name, whether by
amendment of its Certificate of Formation, as applicable, by reorganization or otherwise, within the four months next preceding the date any of the Receivables came into existence; 
  
 (C) based upon the certificates of certain of the officers of the Borrower, that the Borrower has not
changed its principal place of business or its chief executive office within the last four months; 
  
 (D) based upon the certificates of certain of the officers of the Borrower and the representations and warranties of the Borrower set
forth in the Loan Agreement, that the Borrower will be the legal and beneficial owner of all right, title and interest in and to the Receivables immediately prior to granting the Lenders a security interest in such Receivables, free and clear of all
liens (other than certain liens permitted by the Loan Agreement), and that, after giving effect to such grant, no liens or claims against the Receivables (other than the claims of the Lenders or other claims or interests contemplated under the Loan
Agreement) will exist; 
  
 (E) that at the time
of filing of the Financing Statements, and at the time that Borrower grants a security interest in any Receivables to the Lenders, the Lenders had no notice or knowledge of any adverse claims, rights, liens, defenses or interests affecting the
Receivables other than as contemplated by the Loan Agreement; 
  
 (F) that the UCC Search Report is accurate and complete and, based upon the certificates of certain of the officers of the Borrower, that no financing statements or 

  

 The Chase Manhattan Bank 
 Park Avenue Receivables Corporation 
 Sheffield Receivables Corporation 
                     , 2000 
 Page 4 
  

 
related filings or notices of federal or state tax liens or notices of judgment liens, or other filings or notices evidencing claims, liens, encumbrances or
interests with respect to the Receivables have been made or filed with respect to the Borrower between the UCC Search Date[s] and the date hereof or, if such filings or notices have been made or filed, such notices or filings do not relate to the
Receivables or have been effectively terminated and released; 
  
 (G) that the legal nature of the Proceeds will not change from “instruments” or “accounts” or “general intangibles” or “instruments” or “chattel paper” or
“money” as defined in the Code; 
  
 (H)
that in the event that a change in the Borrower’s name, identity or corporate structure makes any Financing Statement, or any continuation statement thereof, seriously misleading within the meaning of Section 9402(7) of the Code, or the
Borrower moves the location of its place of business or chief executive office, that the Lenders will file or cause to be filed such financing statements, continuation statements or amendments as may be necessary to continue the perfection of the
Lenders’ interest in the Receivables, as required by the Loan Agreement, within the time specified in Section 9402(7) of the Code or Section 9103(3)(e) of the Code, as the case may be; 
  
 (I) that the Borrower and the Lenders will file within the
time specified by Section 9403 of the Code any continuation statement that may be necessary to continue the perfection of the Lenders’ interest in the Receivables; and 
  
 (J) that there are no equities arising from actual or constructive fraud in the conduct of the Lenders and
there has been no act of management or control of the Borrower by the Lenders that would allow or require subordination of the claims of the Lenders pursuant to principles of equity in an insolvency proceeding. 
  
 3. Opinions. Based upon and subject to the foregoing and to the
assumptions, qualifications and limitations set forth below, we are of the opinion that: 
  
 (a) Form of Financing Statement. The Financing Statements are in appropriate form for filing in the State of California and have
been duly filed in the appropriate filing office in such State and the fees and document taxes, if any, payable in connection with the said filing of the Financing Statements have been paid in full. 
  
 (b) Perfection and Priority. The Financing Statements
having been filed in the office of the California Secretary of State, the interest of the Lenders in the Receivables and Proceeds constitutes a fully perfected interest in Receivables in existence as of the date of the execution and delivery of the
Loan Agreement, Receivables which come into existence after the 

  

 The Chase Manhattan Bank 
 Park Avenue Receivables Corporation 
 Sheffield Receivables Corporation 
                     , 2000 
 Page 5 
  

 
date hereof (the “After-Arising Receivables”), as of and after the time those After-Arising Receivables come into existence, and Proceeds of
any of the foregoing. 
  
 Subject to (A) liens permitted by the
Loan Agreement, and (B) the Borrower’s right to receive payments as provided in the Loan Agreement, and the matters discussed elsewhere in this letter, such interest is a first priority, perfected interest, enforceable as a security interest
against, and is prior to, all creditors of and purchasers from the Borrower, and the Lenders will have the rights of a secured creditor properly perfected under state law in a bankruptcy or insolvency proceeding with respect to the Borrower, except,
in each case, (i) with respect to Receivables or Proceeds evidenced by instruments (as defined in Section 9105(1)(i) of the Code), or money, which are not in the possession of the Lenders; and (ii) as priority may be subject to (A) liens under
Section 4210 of the Code (relating to the security interest of collecting banks), (B) claims of the United States under the federal priority statute (31 U.S.C. § 3713), (C) with respect to Receivables or Proceeds represented by chattel paper,
the interest of a purchaser of such chattel paper under Section 9308 of the Code, and (D) with respect to Receivables or Proceeds evidenced by instruments, security interests of third parties perfected for 21 days under Section 9304(4) or (5)(b) of
the Code. With respect to clauses (i), (ii)(C) and (ii)(D), we have assumed that no action will be take to cause any Receivable to be evidenced by an instrument or chattel paper. 
  
 We further note that unless the Obligor in respect of a Receivable has received notice of the Borrower’s grant of a
security interest in such Receivable to Lenders, bona fide payments made by such Obligor to the Borrower, or to a subsequent assignee of such Receivable as to which the Obligor has received notice of such assignment, will discharge such
Obligor’s obligations to the extent of such payment, and such payment will be recoverable only from the Borrower, which recovery may be impaired in a subsequent insolvency of the Borrower. 
  
 (c) UCC Choice of Law; Other Actions. Pursuant to
Section 9103 of the Code, the perfection and the effect of perfection or nonperfection of the Lenders’ interest in the Receivables and Proceeds is governed by the laws of the State of California and any applicable federal law. No filing or
other action, other than the filing of the Financing Statements with respect to the Lenders’ interest in the Receivables and Proceeds in the office of the California Secretary of State (which Financing Statements having been filed) is necessary
to perfect or continue the perfected status under California law of the interest of the Lenders, with respect to the Receivables and Proceeds against third parties, except that appropriate continuation statements must be filed with respect to the
Financing Statements at 5-year intervals to continue the perfection of such security interest and that in the event that a change in the Borrower’s name, identity or corporate structure makes any Financing Statement, or any continuation
statement thereof, seriously misleading within the meaning of Section 9402(7) of the Code, or the moves the location of its place of business or chief executive office, additional financing 

  

 The Chase Manhattan Bank 
 Park Avenue Receivables Corporation 
 Sheffield Receivables Corporation 
                     , 2000 
 Page 6 
  

 
statements, continuation statements or amendments may need to be filed to continue the perfection of the Lenders’ interest in the Receivables, as
required by the Loan Agreement, within the time specified in Section 9402(7) of the Code or Section 9103(3)(e) of the Code, as the case may be. 
  
 4. Qualifications. The foregoing opinions are subject to the following assumptions, qualifications and exceptions: 
  
 (A) The opinions contained in this letter are limited to the
laws of the State of California and of the United States of America in effect on the date of this letter, as applied to the factual circumstances on which we have relied (as set forth above) in existence on the date hereof. We express no opinion as
to the laws of any other time or jurisdiction, or (except to the extent set forth in Section 3(c)) the applicability of the laws of any particular jurisdiction, or the enforceability of any choice of law provision in the Loan Agreement. We do not
assume any continuing obligation or responsibility to advise you of any changes in law, or any change of circumstances of which we may become aware, which may affect the conclusions reached in this opinion. 
  
 (B) No opinion is expressed as to the Borrower’ title
to the Receivables or Proceeds, or as to whether the transfer of the Receivables and Proceeds constitutes a true sale or the grant of a security interest, see, e.g., Octagon Gas Systems v. Rimmer (In re Meridian Reserve, Inc.),
995 F.2d 948 (10th Cir. 1993). 
  
 (C) No opinion
is expressed with respect to the effect of (i) bankruptcy, insolvency, reorganization, receivership, moratorium and other similar laws affecting the rights and remedies of creditors generally (except as expressly provided in the first sentence of
the second paragraph of Paragraph 3(b) as to the Lenders’ rights as a secured creditor under state law), or (ii) state fraudulent transfer and conveyance laws. 
  
 (D) No opinion is expressed as to the priority of any interest of the Lenders in the Receivables and
Proceeds against: (i) any liens, claims or other interests that arise by operation of law and do not require any filing, possession or similar action in order to take priority over security interests perfected through the filing of a UCC financing
statement or by taking possession of collateral as contemplated by Article 9 of the Code; (ii) any improperly recorded claims arising prior to the date hereof; (iii) any claim or lien in favor of the United States or any agency or instrumentality
thereof (including, without limitation, liens arising under Title IV of the Employee Retirement Income Security Act of 1974, as amended; (iv) Proceeds due from any federal, state or local government; or (v) any lien for the payment of federal, state
or local taxes or charges which are given priority by operation of law, including, without limitation, Sections 6321 and 6323 of the 

  

 The Chase Manhattan Bank 
 Park Avenue Receivables Corporation 
 Sheffield Receivables Corporation 
                     , 2000 
 Page 7 
  

 
Internal Revenue Code. With respect to the qualification contained in clause (i) of this paragraph, we note that in the course of our acting as counsel to
the Borrower in this matter, and without independent investigation (and, with your permission, without performing research as to any legal matter) we have not become aware of (a) any lien, claim or other interest that arises by operation of law and
does not require filing, possession or similar action in order to take priority over security interests perfected as described herein which might be asserted against the Receivables or Proceeds other than the claims and liens specified in clauses
(iii) and (v) above and the claims and liens referred to in clause (ii) of the second paragraph of Paragraph 3(b) above; or (b) any such lien, claim or other interest that has been asserted against the Receivables or Proceeds. 
  
 (E) No opinion is expressed with respect to the perfection
or priority of the Lenders’ interest in the Proceeds of any Receivables, except to the extent such Proceeds are governed by the Code and consist of proceeds received by the Lenders or the Borrower not more than nine days before the date on
which perfection or priority is being determined; provided, that the Lenders’ interest in such Proceeds will be limited to the extent provided in Section 9306 of the Code. 
  
 (F) We express no opinion as to the security interest of the Lenders in any property or interest therein
perfected under the laws of another jurisdiction. 
  
 (G) We have not inspected or reviewed the books and records of the Borrower except as specified in this letter, nor have we made a physical inspection of the originator’s assets or any investigation of the state of title to any such
assets. 
  
 This opinion is delivered at the request of the
Borrower, solely for the benefit of each of you in connection with the Loan Agreement, and may not be relied upon by any other person or for any other purpose; nor may it be used, circulated, published, communicated, quoted or otherwise referred to
or made available to any other person without, in each instance, our prior written consent. Notwithstanding the foregoing, the persons listed in Exhibit A attached hereto are entitled to rely on this opinion letter as though the same were
addressed to each of them, subject to the condition that by acceptance of this letter each person listed on Exhibit A recognizes and acknowledges that: (i) no attorney-client relationship has existed between our firm and such person in
connection with the purchase of the Receivable or by virtue of this opinion letter, (ii) in order to provide this letter, our firm undertook no duties or responsibilities and conducted no activities in addition to those undertaken or conducted for
purposes of the rendering of this opinion letter to the addresses hereof, and (iii) this opinion letter may not be appropriate or sufficient for such person’s purposes. We disclaim any obligation to update this opinion letter for events
occurring or coming to our attention after the date hereof. 
  

 The Chase Manhattan Bank 
 Park Avenue Receivables Corporation 
 Sheffield Receivables Corporation 
                     , 2000 
 Page 8 
  

	
	 Very truly yours,

	
	 FARELLA BRAUN & MARTEL LLP

  
 FBM:wpc 
  

 EXHIBIT A 
  
 Standard & Poor’s Rating Services, 
 a
division of the McGraw Hill Companies, Inc. 
  
 [address] 
  
 Moody’s Investor Services, Inc. 
  
 [address] 
  
 Clifford Chance Rogers & Wells LLP 
  
 [address] 
  

 Form of Bankruptcy Opinion 
  
 [ • ], 2000 
  
 To the Persons listed 
 on Schedule I hereto 
  
 Ladies and Gentlemen: 
  
 We have acted as special New York counsel to Memec, LLC, a Delaware limited liability company (“Memec”), and Triangle
Receivables Funding LLC, a newly formed special purpose Delaware limited liability company (the “Company”), in connection with (a) the contribution by Memec of certain trade receivables, as described below, to the Company, pursuant
to the Contribution Agreement dated as of [ • ], 2000 (the “Contribution Agreement”), between Memec and the Company, and (b) the grant of a security interest by the Company in its right, title and interest in, to and under the
Contribution Agreement and certain trade receivables, as described below, to The Chase Manhattan Bank, solely in its capacity as Administrative Agent (in such capacity, the “Administrative Agent”) under the Asset Backed Loan
Agreement dated as of [ • ], 2000 (the “Loan Agreement”), among the Company, Park Avenue Receivables Corporation and Sheffield Receivables Corporation, as CP Conduit Lenders, certain PARCO APA Banks, Barclays Bank plc, as
Sheffield Funding Agent and the Administrative Agent, as Administrative Agent, PARCO Funding Agent and Collection Agent. Capitalized terms not otherwise defined herein have the meanings assigned to such terms in the Contribution Agreement or, if
applicable, the Loan Agreement. 
  
 Pursuant to the Contribution Agreement, Memec
(in this capacity, the “Contributor”) proposes to contribute and convey to the Company from time to time, certain accounts receivable purchased by Memec from the Originators, in each case as specified in the applicable Daily Report
(the “Daily Report”) provided to, and to the extent accepted by, the Company pursuant to Section 2.1(a) of the Contribution Agreement (collectively, the “Receivables”), as a capital contribution to the Company. The
relevant transaction contemplated by the Contribution Agreement (the “Transaction”) is more fully described under Section I (Statement of Facts and Assumptions) below. 
  
 You have requested our opinion as to whether in the event the Contributor becomes a debtor in a voluntary or involuntary bankruptcy case
under Title 11 of the United States Code, as amended (the “Bankruptcy Code”), a bankruptcy court having jurisdiction over such case would (a) hold that the contribution of the Receivables by the Contributor to the Company in the
manner set forth in the Contribution Agreement would constitute a true conveyance of such Receivables, rather than a 

  

			
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borrowing by the Contributor secured by such Receivables, and therefore whether the bankruptcy court would not hold that such Receivables would be the
property of the Contributor’s bankruptcy estate under Section 541 of the Bankruptcy Code and (b) not order the consolidation of the assets and liabilities of the Company with those of the Contributor. 
  
 Our opinions are (i) limited to the specific issues set forth in the previous paragraph, (ii)
do not cover the grant of a security interest by the Company in its right, title and interest in, to and under the Receivables and the Contribution Agreement to the Administrative Agent pursuant to the Loan Agreement and (iii) are further limited in
all respects to the facts assumed. 
  

	I.	STATEMENT OF FACTS AND ASSUMPTIONS 

  
 In describing the Transaction and rendering the opinions expressed below, we have examined originals or copies certified or otherwise authenticated to our satisfaction of
the agreements and other documents described in Schedule II hereto. As to all factual matters material to the opinions expressed below, we have, with your permission and without any independent investigation, relied exclusively on, and assumed the
truth and accuracy of, those facts which have been provided to us by the Contributor and the Company, certain of which facts are contained in the Officers’ Certificate attached hereto as Exhibit A. 
  

	A.	Assumptions 

  
 We have assumed (i) that all facts and circumstances described herein will continue to exist, without any change in such facts and circumstances that might be material to such opinions, (ii) that the representations
and warranties of the Contributor and the Company contained in the Contribution Agreement and the other Transaction Documents to which each is a party are accurate and correct and that at all relevant times the Contributor and the Company will
comply with its obligations as set forth in the Contribution Agreement and the other Transaction Documents to which each is a party, (iii) the due authorization, execution and delivery by all parties thereto of all documents examined by us,
including the Contribution Agreement and the other Transaction Documents, (iv) that each party has the power and authority to enter into the Contribution Agreement and each of the other Transaction Documents to which it is a party and perform all of
its obligations thereunder, (v) that each of the Contribution Agreement and the other Transaction Documents is a legal, valid and binding obligation of each of the parties thereto, enforceable in accordance with its respective terms, (vi) that each
party to the Contribution Agreement and the other Transaction Documents is duly organized, validly existing and in good standing under the laws of its jurisdiction of organization, (vii) that each of the Contributor and the Company will act in
accordance with applicable laws and in accordance with its charter documents, (viii) that neither the Contributor nor the Company is entering into the Transaction with the actual or constructive intent of hindering, delaying or defrauding creditors
and (ix) that the increase in the value of the membership interest in the Company held by the Contributor in return for the contribution by the Contributor to the Company of 

  

			
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the Receivables will provide fair consideration and reasonably equivalent value to the Contributor. We refer you to our legal opinion (as to certain New York
law matters relating to the Contributor and the Company), to the legal opinion of Farella Braun & Martel (as to certain California law matters relating to the Transaction), and to the legal opinions of Richards, Layton & Finger (as to
certain Delaware corporate law matters relating to the Company and the Contributor). 
  

	B.	Facts 

  
 We understand, based on the representations and assumptions described above and our review of the Transaction Documents, that the relevant facts regarding the Transaction are as follows: 
  

	1.	The Transaction 

  
 Memec is a limited liability company organized under the laws of the State of Delaware. The Company is a special purpose limited liability company organized under the laws of the State of Delaware. The Company was
formed on July 19, 2000 for the sole purpose of consummating the Transaction. 
  
 This Transaction comprises a portion of a program (the “Program”), which has been established as part of a sale of certain trade receivables by certain Affiliates of Memec including Insight Electronics LLC, Impact
Semiconductor Technologies LLC and Unique Semiconductor Technologies Inc. (the “U.S. Originators”) and another Affiliate of Memec based in the United Kingdom (the “U.K. Originator” and, together with the U.S.
Originators, the “Originators”). 
  
 Each Originator will sell
all of its right, title and interest in, to and under certain accounts receivable generated by such Originator in its ordinary course of business and referred to in the applicable Originator Daily Report provided to the Company pursuant to the U.K.
Receivables Purchase Agreement (with respect to the U.K. Originator) and the U.S. Receivables Purchase Agreement (with respect to the U.S. Originators). 
  
 The Receivables represent amounts due from various customers (the “Obligors”) in respect of goods sold or services rendered by the Originators, and have
been originated in the ordinary course of business by such Originator. 
  
 Pursuant to the Contribution Agreement, the Contributor may from time to time, on and after the Effective Date, by delivering a Daily Report to the Company, contribute certain Receivables to the Company, as a capital contribution to the
Company. For administrative convenience, under the Contribution Agreement, the Contributor has the option (without obligation) of also contributing to the Company Designated Ineligible Receivables (which are Receivables that do not qualify as
Eligible Receivables under the Contribution Agreement). We understand that the amount of Designated Ineligible Receivables will be immaterial relative to the aggregate amount of Receivables 

  

			
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contributed to the Company pursuant to the Contribution Agreement. The Contributor will identify and describe in the Daily Report those Receivables that are
Designated Ineligible Receivables. 
  
 The Contributor is admitted as the sole
equity member of the Company, and the Contributor’s interest in the Company is owned free and clear of all Liens, other than any Liens in favor of the Company arising under the Limited Liability Company Agreement; provided that Memec may
pledge any portion or all of its membership interest to the Lenders under the Credit Agreement, dated [ • ], 2000, by and among [parties to the Credit Agreement]. 
  
 All Receivables will be owned by the Contributor free and clear of any Liens (other than Permitted Liens) immediately prior to the time of
contribution. Upon delivery of a Daily Report by the Contributor to the Company and acceptance thereof by the Company pursuant to the Contribution Agreement, the Receivables will be contributed, transferred, assigned and conveyed to the Company, so
that the Company acquires all of the Contributor’s right, title and interest, in, to and under such Receivables. Acceptance by the Company of the contribution, assignment, transfer and conveyance of the Receivables will be in good faith and
without knowledge of any Lien (other than Permitted Liens) against, interest in, or defense to payment of, such Receivables. The Contribution Agreement reflects bona fide transactions which have been negotiated on an arm’s-length basis
and which will be undertaken in good faith for legitimate business purposes. 
  
 The contribution of the Receivables (including the Designated Ineligible Receivables) will be without recourse to the Contributor, who will not guarantee the performance or collectability of such Receivables. There is no provision in the
Contribution Agreement which permits reconveyance of the Receivables contributed thereunder by the Company to the Contributor or contemplates the retention by the Contributor of any interest whatsoever in the Receivables except that (a) the
Contributor may be obligated to accept a reconveyance of Receivables for a material breach of certain representations and warranties, relating to the eligibility of such Receivables which includes the absence of Liens (other than Permitted Liens)
with respect to such Receivables and (b) the Contributor may exercise its “clean-up” call option when the Receivables contributed by the Contributor aggregate less than 10% of the average outstanding Principal Amount of Receivables
contributed by the Contributor over the period of 12 months ending 30 days prior to the date of such repurchase. 
  
 The Contributor will not, and will not attempt or purport to, extend, rescind, cancel, amend or otherwise modify the terms of any Receivables, or make any Dilution
Adjustment, unless (a) (i) such cancellation, termination, amendment, modification, or waiver is made in accordance with the servicing standards set forth in section 6 of the Loan Agreement (and would have been made in the ordinary course of
business), (ii) such cancellation, termination, amendment, modification or waiver arose as a result of a request from an Obligor, (iii) any such amendment, modification or waiver does not cause such Receivable to cease to be an Eligible Receivable
and (iv) such cancellation, termination, amendment, modification or waiver would not have a material and prejudicial effect on 

  

			
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the collectability of the relevant Receivable or (b) such Dilution Adjustment is the result of a pre-existing contractual obligation between the Originator
and the Obligor with respect to such Receivable; provided that in the event the Contributor cancels an invoice related to a Receivable, the Contributor must make the Dilution Adjustment Payment to the Company in accordance with Section 2.5 of
the Contribution Agreement. 
  
 Invoices with respect to certain Receivables,
which shall be designated on the applicable Daily Report (the “Atlas Receivables”), have been and during the 90 days after the Effective Date, or with respect to Receivables invoiced by Atlas pursuant to contracts between Atlas and
customers of the Originators that have a longer term, for such longer term (the “Atlas Transition Period”) may continue to be, sent to Obligors on behalf of the Originators by Atlas Services LLC, which prior to the Effective Date,
was an affiliate of the Originators (“Atlas”). The invoices sent by Atlas (the “Atlas Invoices”), in addition to setting forth amounts owed on the Atlas Receivables, may also include amounts owed to other affiliates
of the Originators (the “Other Receivables”). Payments with respect to the Atlas Invoices, which may include payments with respect to both the Atlas Receivables and the Other Receivables, are currently being made by Obligors to
lock-box accounts maintained by Atlas (the “Atlas Lock-Box Accounts”). During the Atlas Transition Period, Atlas will forward[, within two (2) Business Days,] any payments received by it with respect to the Atlas Receivables to the
applicable Lock-Box Accounts established pursuant to the Loan Agreement. 
  
 The
Contribution Agreement stipulates that the Contributor is required to take all actions needed to convey, contribute, assign and transfer the Receivables. Other than with respect to the Atlas Receivables during the Atlas Transition Period, Obligors
will make payments in respect of Receivables to the applicable Lock-Box Account. During the Atlas Transition Period, any amounts received by Atlas with respect to the Atlas Receivables will be forwarded by Atlas [within two (2) Business Days] to the
applicable Lock-Box Account. The Lock-Box Accounts will be accounts of the Company, such that the Contributor shall have no right, title or interest in and to the Lock-Box Accounts and the moneys deposited from time to time therein. 
  
 The Contribution Agreement requires that the Contributor maintain a record-keeping system
that will clearly and unambiguously indicate that the Receivables have been contributed, assigned, conveyed and transferred to the Company, and thereupon, a security interest has been granted by the Company to the Administrative Agent pursuant to
the Loan Agreement. The contribution of the Receivables will be treated by the Contributor and the Company as a conveyance, and not a borrowing by the Contributor secured by such Receivables, for all tax, accounting and regulatory purposes. The
Receivables will not be carried as assets on the books, records or financial statements of the Contributor; provided, however, that where consolidated financial statements of the Contributor are prepared, the conveyance of the Receivables to
the Company will be indicated through a footnote to such financial statements, which will state that as a result of the contribution of Receivables to the Company, creditors of the Contributor should not rely on such Receivables as a source of
payment for obligations of the Contributor. The Contribution Agreement does not contain restrictive financial 

  

			
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covenants relating to the operation of the Contributor’s businesses as would customarily be seen in loan documentation. The right of the Contributor to
contribute Receivables originated by any of the Originators, as the case may be, will terminate after expiration of any applicable grace periods upon the occurrence and continuance of certain designated Originator Termination Events with respect to
such Originators. The right of the Contributor to contribute any Receivables will also terminate immediately upon the occurrence and continuance of certain Termination Events, including the occurrence of an Insolvency Event with respect to the
Contributor. 
  
 As contemplated by the Contribution Agreement, the Company will
grant a first priority perfected security interest under the Loan Agreement in favor of the Administrative Agent in all of its right, title and interest in, to and under the Contribution Agreement and the Receivables. 
  
 Pursuant to the Loan Agreement, the Company will initially appoint the Administrative Agent,
and on the Effective Date, the Administrative Agent will appoint the Contributor, as the Collection Agent (the “Collection Agent”) of the Receivables. The Collection Agent shall appoint each U.S. Originator as a Sub-Collection Agent
(in such capacity, each, a “Sub-Collection Agent”) for the Receivables generated by such U.S. Originator pursuant to the U.S. Receivables Purchase Agreement. In the event that a Sub-Collection Agent shall resign or be removed from
its position, the Collection Agent or an alternate Sub-Collection Agent shall service the Receivables previously serviced by such Sub-Collection Agent. 
  
 So long as no Collection Agent Default has occurred and is continuing, the Collection Agent may delegate to one or more Persons the servicing, collection, enforcement and
administrative duties of the Collection Agent set forth under the Loan Agreement with respect to the Receivables; provided, however, that with respect to any such Person that is not an Affiliate of the Contributor, the Collection Agent shall
give prior written notice to the Company and each Funding Agent of any such delegation. Prior to any such delegation becoming effective, the consent of the Company and each Funding Agent to such delegation shall have been obtained. No delegation of
duties by the Collection Agent shall relieve the Collection Agent of its liability and responsibility with respect to its duties under the Loan Agreement. 
  
 In the event that any payments in respect of any Receivable are made directly to the Collection Agent, the Collection Agent will immediately deliver or deposit such
amount to the appropriate Lock-Box Account, and, prior to delivery or depositing such amount, the Collection Agent will hold such payments in trust as Administrative Agent for the Company and the Administrative Agent. Other than in accordance with
instructions by the Administrative Agent, the Collection Agent will have no right to withdraw any funds on deposit in any Lock-Box Account or the Collection Account. To the extent that the Collection Agent identifies any funds received in the
Lock-Box Account or the Collection Account as funds that do not constitute Collections on the Receivables, the Collection Agent shall remit such funds to the applicable Originator. 
  

			
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 At the Collection Agent’s sole cost and expense and as agent for the Company, it will collect (or cause to be
collected), consistent with its past practices (or those of the applicable Sub-Collection Agent) and in accordance with the Policies, as and when the same becomes due, the amount owing on each Receivable. Pursuant to the Loan Agreement, the
Collection Agent will agree that it will not make any material change in its administrative, servicing and collection systems that deviates from the Policies, except as otherwise permitted under the Loan Agreement, and after giving written notice to
the Administrative Agent of any such change. In the event of default under any Receivable, the Collection Agent has the power and authority on behalf of the Company to take such action in respect of the Receivable as the Collection Agent shall deem
advisable. In the enforcement or collection of any Receivable, the Collection Agent is entitled, but not required, to sue in its own name or to sue in the name of the Company provided that, in the latter case, the Company consents in writing (such
consent not to be unreasonably withheld). 
  
 The Loan Agreement provides that
following the occurrence of certain events, the Administrative Agent, as assignee of the Company, may terminate the then-current Collection Agent and appoint a replacement Collection Agent with respect to the Receivables. 
  
 The Loan Agreement provides for the payment to the Collection Agent of a monthly servicing
fee (the “Monthly Servicing Fee”) that has been calculated on an arm’s-length basis and will reflect the fair market value for the services (including collecting and enforcing the Company’s rights with respect to the
Receivables) to be provided by the Collection Agent; provided, however, so long as the Collection Agent is an Affiliate of the Company, payment of the Monthly Servicing Fee will be subordinated to the payment of interest, principal and
certain other amounts due under the Loan Agreement. The servicing fee shall be payable to the Collection Agent solely pursuant to the terms of, and to the extent amounts are available for payment under, Article III of the Loan Agreement. To the
extent that any of the Originators act as a Sub-Collection Agent, they will receive a fee from the Collection Agent that will reflect the fair market value of the services provided by such Sub-Collection Agent. 
  

	2.	Disclosure of the Transaction  

  
 For administrative and cost reasons, the Obligors with respect to the Receivables will not be informed of the Transaction. We note that existing Obligors currently make
payments to certain designated accounts of the Originators, or with respect to the Atlas Receivables, to Atlas. Other than with respect to the Atlas Receivables, Obligors will continue to make payments on the Receivables to the accounts designated
by the Originator, but such accounts will be transferred to the Company and thus qualify as Lock-Box Accounts under the Loan Agreement. With respect to the Atlas Receivables, during the Atlas Transition Period, Obligors may make payments to the
Atlas Lock-Box Account. Atlas will hold any amounts so received in trust for the benefit of the applicable Originator and shall within [one (1)] Business Day forward such amounts to a Lock-Box Account. All transfers from the Lock-Box Accounts to the
other Transaction accounts shall be made by the 

  

			
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Collection Agent at the direction of the Administrative Agent. On and after the Termination Date, the Company (and its assignees) may itself, or may request
that such Originator (at such Originator's expense), notify the respective Obligors of the Company’s ownership of and title to the Receivables and direct that payment of all amounts due or to become due under the Receivables be made directly to
an account designated by the Administrative Agent. 
  
 Appropriate UCC-1 financing
statements will be properly filed in the appropriate filing offices as required by Section 9-103(3)(a) of the applicable UCC in order to perfect the contribution and conveyance of the Receivables to the Company on or before the Effective Date. All
financial statements prepared by the Contributor will treat the Transaction as a conveyance of the Receivables, with the effect that the Receivables will not be disclosed as an asset on any such financial statements of the Contributor. Where
consolidated financial statements of the Contributor and the Company are prepared, the conveyance of the Receivables will be indicated through a footnote to such financial statements which will state that as a result of the contribution of
Receivables to the Company, creditors of the Contributor should not rely on such Receivables as a source of payment for obligations of the Contributor. The Contributor will disclose the effects of the Transaction in accordance with GAAP. 

 

	3.	Organization of the Company and the Limited Company Agreement 

  
 The Company is a special purpose limited liability company organized under the laws of the State of Delaware. The sole equity member of the Company is Memec. Pursuant to
the Limited Liability Company Agreement, the Company shall have [an] [two] independent director[s] for the period beginning on the date of the Limited Liability Company Agreement and ending on the date all amounts due under the Loan Agreement have
been paid in full. The independent director[s] may not be terminated until a successor thereto shall have been appointed. Any independent director shall be a Person who is not at the time of initial appointment and has not been at any time during
the preceding five years and shall not be at any time while serving as an independent director: (i) a direct or indirect legal or beneficial owner in the Company or any of its Affiliates (excluding de minimis ownership interest), (ii) a creditor,
supplier, employee, officer, director, family member, manager, or contractor of such entity or any Affiliate of any of them, or (iii) a person who controls (whether directly or indirectly or otherwise) such entity or its Affiliates or a creditor,
supplier, employee, officer, director, family member, manager, or contractor of such entity or any Affiliate of any of them. When making decisions, the independent director shall be required to consider the interests of the Company’s creditors.
As of the Effective Date, the independent directors of the Company are Donald J. Puglisi and [*]. 
  
 Pursuant to the Limited Liability Company Agreement, the Company is required to, among other things, (i) maintain its books, records, financial statements, stationery, invoices, accounting records, if any, and
organizational documents separate from those of its Affiliates and any other Person, (ii) maintain its assets, in such a manner that it is not costly or difficult to segregate, ascertain or identify 

  

			
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such assets, (iii) observe all organizational formalities under the Delaware Limited Liability Company Act and preserve its separate limited liability
company existence, (iv) hold itself out as a legal entity separate and distinct from any other entity, (v) allocate fairly and reasonably any overhead expenses that are shared with an Affiliate, including paying for office space and for services
performed by any employee of an Affiliate, and retain directly or indirectly a sufficient number of employees in light of its contemplated business operations, (vi) transact all business with Affiliates on terms and conditions that are intrinsically
fair and substantially similar to those that would be available on an arm’s-length basis with third parties other than any such party, (vii) conduct business in its own name, and maintain and utilize separate stationery, invoices and checks,
(viii) not commingle its funds or other assets with those of any Affiliate or any other Person, (ix) not guarantee or become obligated for the debt of any other person or entity or hold itself out to be responsible for the debts of any other Person
or entity, (x) pay its debts and liabilities out of its assets as the same shall become due, (xi) not make loans or advances to any other Person, (xii) not pledge its assets for the benefit of any other Person except as expressly permitted under the
Transaction Documents, (xiii) correct any known misunderstanding regarding its separate legal existence or identity, (xiv) maintain adequate capital for the normal obligations reasonably foreseeable in a business of its size and character and in
light of its contemplated business operations and (xv) maintain all required qualifications to do business in any state in which it conducts business. 
  
 Pursuant to the Limited Liability Company Agreement, the Company is not permitted to take any action set forth in items (a) through (h) below unless (i) such action is
otherwise expressly permitted under the Transaction Documents and (ii) such action has the unanimous consent of the directors of the Company (including the independent director[s]) and the members: 
  
 a. Terminate, dissolve or liquidate itself, except as provided in Section 27 of the Limited
Liability Company Agreement; 
  
 b. transfer, exchange, dispose of, or abandon, in
any transaction or series of transactions, Company properties or assets having a value in excess of 10% of the aggregate value of all Company properties and assets; 
  
 c. merge or consolidate with any other entity; 
  
 d. file a voluntary petition or otherwise initiate proceedings to have itself adjudicated bankrupt or insolvent, or consent to the institution of bankruptcy or insolvency
proceedings against itself, or file a petition seeking or consenting to reorganization or relief of itself as a debtor under any applicable federal or state law relating to bankruptcy, insolvency, or other relief for debtors with respect to itself;
or seek or consent to the appointment of any administrative agent, receiver, conservator, assignee, sequestrator, custodian, liquidator (or other similar official) of itself or of all or any substantial part of its properties and assets, or make any
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its creditors, or admit in writing its inability to pay its debts generally as they become due or declare or effect a moratorium on its debt or take any
action in furtherance of any such action; 
  
 e. confess a judgement against the
Company; or 
  
 f. assign rights in the Company property for other than a Company
purpose. 
  
 Prior to the date on which all amounts due under the Loan Agreement
have been paid in full, the members of the Company may not amend, alter, repeat or change any provision of the Limited Liability Company Agreement without the prior written consent of the Administrative Agent. 
  
 The sole equity member of the Company on the Effective Date shall be the Contributor. The
capitalization of the Company consists of the Receivables contributed to the Company pursuant to the Contribution Agreement. In the Contribution Agreement, the Contributor will agree not to permit the Company to sell any membership interest or other
equity interest to any Person until after the date on which all amounts due under the Loan Agreement have been paid in full. The members and the directors of the Company shall not be personally liable for the expenses, liabilities, debts, and
obligations of the Company, except as expressly provided for in the Delaware Limited Liability Company Act. 
  
 Each of the Company and the Contributor observes, and complies fully with, all corporate procedures required by its limited liability company agreement. Each of the Company and the Contributor, to the extent required
by the laws of its jurisdiction of organization, as applicable, maintains its valid existence and good standing under such jurisdiction. Each of the Company and the Contributor is qualified to do business in each jurisdiction in which the conduct of
its business so requires. 
  
 The Contributor will covenant and agree that it will
not institute against, or join any other Person in instituting against, the Company any insolvency or other similar proceedings. 
  

	II.	DISCUSSION 

  

	A.	True Contribution Discussion 

  

	1.	Introduction 

  
 Section 541 of the Bankruptcy Code provides that property of a debtor’s estate includes “all legal or equitable interests of the debtor in property as of the commencement of the case.” 11 U.S.C.
§541(a)(1). If the Contributor were to declare bankruptcy, the Contributor as a debtor-in-possession, a trustee in bankruptcy or a creditor of the Contributor might argue that the Receivables (which, for the avoidance of doubt, does not include
the Excluded Receivables, which are not being purchased by the Contributor from the Originators or contributed to the Company) have not been contributed 

  

			
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and are, therefore, part of the Contributor’s bankruptcy estate. Courts have recharacterized purported sales of assets as pledges in a variety of
circumstances. See, e.g., In re Navigation Technology Corp., 880 F.2d 1491, 1493 (1st Cir. 1989); Major’s Furniture Mart v. Castle Credit Corp., 602 F.2d 538, 545-46 (3d Cir. 1979); Levin v. City Trust Co. (In re Joseph Kanner Hat Co., Inc.),
482 F.2d 937, 940 (2d Cir. 1973). While Section 541 of the Bankruptcy Code provides that property in which the debtor has an interest is part of the debtor’s bankruptcy estate, the substantive determination of the property rights in particular
assets is generally governed, in the absence of controlling federal law, by state law. Butner v. U.S., 440 U.S. 48, 55 (1979). See also Barnhill v. Johnson, 503 U.S. 393, 398 (1992) (stating that “property” and “interests in
property” are “creatures of state law”). 
  
 We note that there is
no reported controlling judicial precedent, which analyzes the totality of factors present in the Transaction. We therefore examined decisions from a range of jurisdictions in which certain facts and circumstances present in this Transaction were
discussed and in which the distinction between a sale and a secured loan was analyzed more generally. Furthermore, existing reported judicial authority is not conclusive as to the relative weight to be accorded to the various factors present in this
Transaction, although we have emphasized in our analysis those factors which courts have noted as particularly important in determining whether a Transaction is a sale or a secured loan. We also note that certain authorities and decisions we have
examined are arguably inconsistent with the conclusions expressed in our opinion. These authorities and decisions are, however, distinguishable in the context of this Transaction. 
  
 In addition, we note that there is no definitive judicial authority conclusively characterizing transactions such as the contributions of
Receivables by the Contributor to the Company pursuant to the Contribution Agreement as either “true contributions” on the one hand or as a loan or some other transaction on the other hand, and thus our opinion on such contributions in
Section III (Opinions) below is based on the general principles enumerated in “true sale” cases construing the laws of various states and on the reasoning and subject to the limitations and qualifications in the following paragraphs.

  

	2.	Factors Considered in a True Sale Analysis 

  
 Courts have considered a variety of factors in determining whether an assignment creates a security interest or an absolute sale and have examined “all the facts and
circumstances surrounding the transactions at issue.” Bear v. Coben (In re Golden Plan of California, Inc.), 829 F.2d 705, 709 (9th Cir. 1986). Factors which courts have examined in making this determination include: the transfer of the risk of
loss, the transfer of the opportunity for gain, the form of the transaction, whether the transfer operates to discharge an underlying debt, the intent of the parties to the transaction, whether the transferor continues to service the transferred
assets and whether the transfer is recorded or notified to third parties. 
  

			
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 a. Recourse/Risk of Loss. Of these various factors, the transfer of the risk of loss is one of the most
important. Various courts have found that full recourse to the assignor is inconsistent with shifting the risk of loss to the assignee. For example, in Major’s Furniture Mart, the court found that full recourse to the assignor for
defaults on the assigned accounts meant that the assignee did not assume the risks of ownership of such accounts. Major’s Furniture Mart, 602 F.2d at 545. See also, In re Evergreen Valley Resort, Inc., 23 B.R. 659, 661 (Bankr. D. Me. 1982),
citing Major’s Furniture Mart and In re Bowen, 5 U.C.C. Rep. Serv. 261 (Bankr. D. Ore. 1968) for the proposition that a security interest is indicated where the assignee retains a right to recover a deficiency on the debt from the assignor if
the assignment does not provide sufficient funds to satisfy the amount of debt. Similarly, in Ables v. Major Funding Corp. (In re Major Funding Corp.), 82 B.R. 443, 448 (Bankr. S.D. Tex. 1987), the court held that a purported sale of
mortgages was really intended as a pledge to secure a loan where the assignor guaranteed a rate of return to the assignee and agreed to repurchase defaulted loans. 
  
 Courts have also found that, while recourse is an important factor indicating a secured loan, recourse alone, without any guarantee of
payment or other factors suggesting a secured loan, does not preclude a finding that an absolute assignment has occurred. The court in Major’s Furniture Mart, in setting out an often-cited and particularly thorough set of criteria for
analyzing a purported sale, noted in dictum that “the presence of recourse in a sale agreement without more will not automatically convert a sale into a security interest.” 602 F.2d at 544. The court also cited comment 4 to UCC Section
9-502 which states that “there may be a true sale of accounts or chattel paper although recourse exists.” 
  
 The court in In re Federated Dept. Stores, 1990 Bankr. Lexis 1557 (S.D. Ohio 1990), in holding that certain sales were “true arm’s-length sales”,
noted the following: (1) the purchaser in the case being reviewed bore the risk that the purchased receivables would prove uncollectible; (2) the purchaser had a very limited right of recourse against the sellers of the receivables that was not
related to any defaults in payment under such receivables; (3) the purchase price paid by the purchaser for the receivables reflected the fair market value of such receivables; (4) valid business reasons existed for not notifying account obligors of
the sale of their accounts; and (5) the purchaser and the sellers intended the purchases of the receivables to be true sales and not lending transactions. Id. at 3-4. See also In re Golden Plan of California, Inc., 829 F.2d at 709 (in spite of
arrangement for advances by seller on account of delinquent payments, investors receiving no contractual guarantee or compensation in case of foreclosure on underlying assets were absolute owners of instruments) and Goldstein v. Madison Nat’l
Bank of Washington, D.C., 89 B.R. 274, 277 (D.D.C. 1988) (recourse provision was not dispositive). 
  
 The Contribution Agreement conveys the Contributor’s interest in the Receivables to the Company without stated recourse to the Contributor for failure by the Obligors to make required payments. No 

  

			
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pre-existing debt is owed by the Contributor to the Company which could be satisfied by payments from sources other than the Receivables. 
  
 Furthermore, except for (a) a “clean-up” call option when the Receivables
contributed by any Contributor aggregate less than 10% of the average Principal Amount of Receivables contributed by the Contributor over the period of 12 months ended 30 days prior to the date of such reconveyance and (b) the obligation to
repurchase Receivables contributed by the Contributor in violation of certain representations and warranties relating to the eligibility of such Receivables and the absence of certain Liens with respect thereto, the Contributor has no right or
obligation under the Contribution Agreement to repurchase from the Company any Receivables or to rescind or otherwise retroactively effect any contribution of any Receivables after the Contribution Date therefor. These exceptions are standard in
transactions of this type and do not shift the risk of collectability of the Receivables to the Contributor. 
  
 The fact that the Contributor has certain obligations to indemnify the Company, the Administrative Agent and certain other parties for failure to perform their respective obligations under the Contribution Agreement
and the other Transaction Documents might be argued to be a form of recourse. The Contributor may also fund the Stamp Duty Reserve Account established pursuant to the Loan Agreement to protect the Lenders from losses resulting from the imposition of
stamp duty on transfers of the Receivables from the UK Originator to the Contributor and from the Contributor to the Company. However, such limited indemnification obligations, do not relate to the credit quality of the Receivables or the ultimate
credit risk of the Receivables which risk will be to the Company under the Contribution Agreement and ultimately to the lenders under the Loan Agreement. 
  
 In the event that the Contributor or an Affiliate thereof (including any of the Originators) is acting as a servicer with respect to such Receivables, the portion of the
Servicing Fee payable to the Contributor or such Affiliate thereof with respect to such Receivables shall be subordinated until amounts due under the Loan Agreement shall have been paid in full. A court could find that, because it is unlikely that a
third-party servicer would agree to such a provision, such subordination effectively constitutes recourse to the Contributor (or such Affiliate). However, because of the relatively small size of the Servicing Fee (1% of the outstanding Receivables)
and the other positive factors outlined above this factor should not be dispositive in a court’s analysis. 
  
 b. Opportunity for Gain. Another important factor courts have examined in determining whether a transaction constitutes a secured financing or a sale is whether
the assignor has transferred all opportunity for gain with respect to the assets. Where the assignee must account to the assignor for any surplus received from the assignment over the bargained-for amount, courts have held such factor to indicate
that the transaction constitutes a secured financing. See In re Evergreen Valley Resort, Inc., 23 B.R. at 661, citing Gold Coast Leasing Co. v. California Carrots, Inc., 93 Cal. App. 3d 274, 279 (1979). For example, the court in In re Carolina
Utilities Supply Co., Inc., 118 B.R. 

  

			
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412, 416-17 (Bankr. D.S.C. 1990), noting that the bank purporting to purchase accounts receivable from the company had to account to the company for any
surplus collected on each account over 80% of the invoice amount which the bank initially advanced to the company, found that the accounts were security for a loan by the bank to the company. See also, U.C.C. §9-502(2) (“If the security
agreement secures an indebtedness, the secured party must account to the debtor for any surplus.”). 
  
 In the Transaction, the Company has no obligation to remit any Collections on the Receivables back to the Contributor unless and only to the extent that a Receivable constitutes an Ineligible Receivable that is not a
Designated Ineligible Receivable and the Contributor has repurchased such Ineligible Receivable as a result of a material breach of a representation or warranty, in which event, any Collections with respect thereto will be remitted by the Collection
Agent to the Contributor. Other than as set forth in the preceding sentence, all Collections (including Collections in respect of Designated Ineligible Receivables) will be for the sole benefit of the Company (subject to the rights of the
Administrative Agent in respect thereof pursuant to the Loan Agreement). The Contributor is not entitled to any surplus or gain in respect of the Collections (including Collections in respect of Designated Ineligible Receivables). There is no
guarantee by the Contributor as to the minimum or maximum “rate of return” to the Company and no mechanism to limit how much of the Collections the Company receives. The Company has no direct payment obligation to the Contributor with
respect to the Receivables. 
  
 c. Form of Transaction/Documentation. The
form of the transaction has also been found to be an important, although not dispositive, factor in determining whether a transaction is an assignment for security or a true sale. While substance is more important than form, Major’s
Furniture Mart, 602 F.2d at 543, courts have given varying degrees of weight to the language used in the transaction documentation. See, e.g., In re Golden Plan of California, Inc., 829 F.2d at 709 (documentation language found by court to
indicate that absolute ownership was transferred); See also In re Bevill, Bresler & Schulman Asset Management Corp., 67 B.R. 557, 597-98 (D.N.J. 1986) (form very important in determining whether repurchase agreement was sale or secured loan,
particularly where parties to agreement were sophisticated). In TKO Equip. Co. v. C&G Coal Co., 863 F.2d 541, 545-46 (7th Cir. 1988), the court enforced an agreement containing an express written disavowal that the parties created any
security interests, particularly in light of the fact that a third party creditor was found to have relied on such language. 
  
 The Contribution Agreement uses the form and language of a full disposition by way of contribution. The Contributor is a commercially sophisticated party and the
Contribution Agreement clearly states that the conveyance of the Receivables is intended to be a true conveyance, and not a pledge to secure a loan. The Contributor has no obligation to satisfy from its own funds the obligations of the Obligors. The
Contributor does not maintain any meaningful benefits of ownership with respect to the Receivables, other than through its equity interest in the Company. The Contributor and the 

  

			
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Company will treat the Transaction as a conveyance and contribution of the Receivables for all tax, accounting and regulatory purposes, with the effect that
the Receivables will not be carried as assets on the books, records or individual financial statements of the Contributor; provided, however, that where consolidated financial statements of the Contributor are prepared, the conveyance of the
Receivables will be indicated through a footnote to such financial statements. The financing statements filed to perfect the ownership interest of the Company in the Receivables will reflect a conveyance and contribution of the Receivables and not
the grant of a security interest. The Administrative Agent and certain other parties have made their investment in reliance on the treatment of the Transaction by the Contributor and the Company as a contribution and not a secured loan. 

 
 d. Intent. The form of the transaction is closely linked in judicial decisions with
the intent and the behavior of the parties. Where commercially sophisticated parties have characterized transactions as sales and have acted in accordance with that characterization, many courts have given presumptive weight to that
characterization. See, e.g., Kasuba v. Realty Income Trust (In re Kasuba), 562 F.2d 511, 514-15 (7th Cir. 1977) (the intent of the parties is controlling as long as the stated intent is supported by the facts); see also Tavormina v. Aquatic Co. (In
re Armando Gerstel, Inc.), 65 B.R. 602, 604 (S.D. Fla. 1986), citing Hassett v. Revlon, Inc. (In re O.P.M. Leasing Servs., Inc.), 23 B.R. 104, 115-16 (Bankr. S.D.N.Y. 1982) (“the intent of the parties governs whether a particular document or
transaction creates a security interest or an assignment”). The Contribution Agreement provides that it is intended that the contribution of the Receivables by the Contributor to the Company be a true conveyance rather than a secured loan. The
factors discussed above with respect to the form and structure of the Transaction are further evidence of this intent. 
  
 e. Servicing and Other Activities. In addition to stated intent, behavior such as servicing of the assets has been found by courts to be indicative of the
substance of the transaction. See, e.g., In re Mid Atlantic Fund, Inc., 60 B.R. 604, 608 (Bankr. S.D.N.Y. 1986) (“Creditors failed to act as if they were the absolute owners . . . by recording the assignment or by demanding payment from the
mortgagees”); see also In re Alda, 327 F. Supp. 1315, 1317 (S.D.N.Y. 1971) (court found petitioner was not a joint venturer with ownership interest in bankruptcy estate because petitioner failed to file financing statements, debtor continued to
control and manage accounts receivable and accounts were not segregated). Courts have varied the importance given to various activities of assignors and assignees in determining how a transaction should be characterized. Courts have found
transactions to be sales where notice was not given to obligors and the assignor continued to service the assigned assets. McVay v. Western Plains Serv. Corp., 823 F.2d 1395, 1398-99 (10th Cir. 1987) (loan participation transferred entire equitable
interest to participating banks even where lead bank continued to service the loan); In re Golden Plan of California, Inc., 829 F.2d at 707 (seller received fee for arranging and servicing loans). Courts that cited the retention by an assignor of
servicing duties as a factor indicating a loan also seemed to rely on the full recourse nature of the transactions as well as other factors, such as the commingling of account proceeds with general operating funds. 

  

			
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See, e.g., People v. Service Inst., Inc., 101 Misc. 2d 549, 552 (1979) (non-notification of account obligors and seller/servicer’s failure to hold
proceeds in separate account are evidence that assignment is for security); In re Major Funding Corp., 82 B.R. at 448 (seller/servicer had repurchase obligation upon account debtor default and also had commingled collection accounts); Blackford v.
Commercial Credit Corp., 263 F.2d 97, 106 (1959) (servicing by seller is one of several factors mentioned, including full recourse and a guaranteed rate of return). 
  
 As stated above, unless an Originator Termination Event has occurred and is continuing, the Obligors will not be notified of the
Transaction. Documentation such as accounting records will treat the Transaction as a conveyance, with the effect that the Receivables will not be carried as an asset in the consolidating financial statements or other accounting records of the
Contributor. Financing statements evidencing the Company’s ownership interest in the Receivables will be filed on or prior to the Effective Date. Pursuant to the Loan Agreement, the Administrative Agent has appointed the Collection Agent as its
agent for servicing, administering and collecting the Receivables, and the Collection Agent has appointed the Originators as Sub-Collection Agents pursuant to the U.S. Receivables Purchase Agreement. Other than with respect to the Atlas Receivables
during the Atlas Transition Period, all Obligors shall make payments on all Receivables to the applicable Lock-Box Account. Any Collections (including Collections in respect of Designated Ineligible Receivables) relating to the Receivables received
by the Collection Agent will be deposited to the applicable Lock-Box Account in accordance with the applicable provisions of the Loan Agreement. As noted above, the Collection Agent may modify the terms of the Receivables only under certain limited
circumstances. Such modifications must arise as the result of a request of an Obligor, or as required by any Requirement of Law or if such Dilution Adjustment does not cause the Receivable to cease to be an Eligible Receivable. This modification
right constitutes a customary and reasonable delegation where an owner of receivables requires a third party to provide servicing and collection services to it. 
  

Upon an occurrence of a Collection Agent Default, the Administrative Agent, as assignee of the Company, may appoint any Person to succeed the Collection Agent. All
transfers of Collections from the Lock-Box Accounts to the other Transaction accounts shall be made by the Collection Agent in accordance with the terms of the Loan Agreement. The Collection Agent shall have no right or interest in the Lock-Box
Accounts or the other Transaction accounts. 
  
 In addition, on and after the
Termination Date, all Obligors may be notified by the Administrative Agent to make payments of all amounts payable under the Receivables directly to an account designated by the Administrative Agent. The Contributor will maintain a record-keeping
system with respect to the Receivables that will clearly and unambiguously indicate that such Receivables have been contributed, assigned, conveyed and transferred to the Company, and, thereupon, a security interest has been granted to the
Administrative Agent by the Company. In sum, the servicing activities of the Contributor will be conducted on behalf of the Company and the 

  

			
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Administrative Agent and collection and accounting procedures will clearly indicate that the Company is the owner of the Receivables. 
  
 f. Octagon. We are aware of the opinion of the court in Octagon Gas Systems, Inc.
v. Rimmer, 995 F.2d 948 (10th Cir.), cert. denied, 114 S.Ct. 554 (1993). In Octagon, the court concluded that because Article 9 of the UCC requires any purchase of accounts to be perfected, a sale of accounts is therefore treated
under the UCC as a security interest in the accounts and any such accounts thus remain the property of the debtor’s bankruptcy estate. We note that Memec has its chief executive office in San Diego, California, a state in the Ninth Circuit.

  
 We do not believe that a bankruptcy court properly applying the principles of
Article 9 of the UCC in a proceeding in which the Contributor was the debtor would follow Octagon. The Court’s decision in Octagon is inconsistent with the stated language and intent of the UCC, which clearly contemplates sales of
accounts. Section 9-502(2) of the UCC, for example, states that “if the underlying transactions was a sale of accounts or chattel paper, the debtor is entitled to any surplus . . . only if the security agreement so provides.” Comment 4 to
Section 9-502(2) further states that “the determination whether a particular assignment constitutes a sale or a transfer for security is left to the courts.” 
  
 Various commentators have taken the view that, notwithstanding the decision of the court in Octagon, accounts may be sold. In fact,
Permanent Editorial Board Commentary No. 14 on the UCC rejects Octagon and amends Comment 2 to Section 9-502 to make clear that the UCC does not prevent, or even govern whether there is, a sale of accounts. 
  
 We believe that Octagon was wrongly decided and that, in a properly presented case in
which the facts and assumptions relied herein are established, a court not bound by Octagon would decline to adopt its reasoning. You should recognize, however, that if Octagon were followed, it could result in a conclusion that the
Receivables remained "property of the estate" of an Originator under Section 541 of the Bankruptcy Code. We note that courts in the Ninth Circuit, which has jurisdiction in California, the principal place of business of the Originators, are not
bound by Octagon, a decision of the Tenth Circuit. 
  

	B.	Substantive Consolidation Discussion 

  
 Substantive consolidation is a judicially created doctrine arising from the general equity powers granted to the federal bankruptcy courts. Under the doctrine of
substantive consolidation, a bankruptcy court may, if appropriate circumstances are determined to exist, consolidate the assets and liabilities of different entities by merging the assets and liabilities of an entity affiliated with the debtor into
the debtor’s estate and treating the related entities as one consolidated entity for purposes of the bankruptcy proceedings. This power is implemented by Section 105(a) of Title 11 of the 

  

			
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Bankruptcy Code which provides, in pertinent part, that “(t)he court may issue any order, process, or judgement that is necessary or appropriate to
carry out the provisions of this title.” 
  
 Decisions regarding substantive
consolidation are made on a case-by-case basis and reflect the court’s analysis of the particular factual circumstances presented. A court’s inquiry requires an examination of the structures of the entities proposed to be consolidated and
their relationships with their respective creditors, affiliated entities and third parties. 
  
 Circumstances in which substantive consolidation has been ordered include cases where it can be shown that (i) one or more entities are merely “instrumentalities” of one another or (ii) creditors justifiably
relied upon the credit or financial condition of separate business entities as if they were one business entity. Where related entities have done an inadequate job of maintaining separate records and observing other formalities of separate
existence, courts are more likely to find reasonable the expectations of the creditors that the assets of the second entity should be available to satisfy the indebtedness to creditors of the first entity. Orders for substantive consolidation have
also been issued where the inter-relationships of entities are hopelessly obscured and the time and expense necessary to attempt to unscramble them are so substantial as to threaten the realization of any assets for creditors. 
  
 In determining whether or not to order substantive consolidation, the courts have
traditionally considered certain objective factors, including: 
  

	1.	the commingling of assets and business functions, including failure to maintain separate bank accounts; 

  

	2.	the difficulty of segregating and ascertaining individual assets and liabilities; 

  

	3.	the existence of parent and intercorporate guarantees on loans; 

  

	4.	the transfer of assets without observance of corporate formalities; 

  

	5.	the presence or absence of consolidated financial statements and of separate, complete and accurate books and records; 

  

	6.	the unity of interests and ownership between the various corporate entities; and 

  

	7.	the profitability of consolidation at a single physical location. 

  
 Because decisions regarding substantive consolidation are made on a case-by-case basis by a court of equity, there is no certainty as to the factors on which a court will
focus in a particular case. However, the reported cases decided to date suggest that the existence of some, or even most, of the factors listed above should not, by themselves, result in the application of the substantive 

  

			
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consolidation doctrine. Moreover, even where these factors are present to some extent, recent reported cases suggest that substantive consolidation should be
ordered only when the benefits of substantive consolidation outweigh the prejudice to creditors that would result from such consolidation. Thus, under this balancing test, the objective factors are just one element in the overall proof of the
necessity or desirability of consolidation. 
  
 The burden of demonstrating that
the factors favoring substantive consolidation are present is on the party requesting consolidation. Such party must also show that substantial prejudice results from the maintenance of corporate separateness and that no injustice or frustration of
a bankruptcy reorganization would occur as a result of consolidation. Where a creditor has looked solely to the credit or assets of one entity, recent cases applying this balancing test recognize that such creditor may have valid grounds to oppose
consolidation. 
  
 Although the cases demonstrate that no single factor is
determinative, factors that are generally considered to be of central importance are hopeless confusion of assets and liabilities, substantial integration of operations of the affiliated entities and creditor confusion as to the true obligor caused
by the debtor and resulting in injury to the creditor. 
  
 On the basis of the
facts and assumptions set forth herein, we believe that at least six of the seven factors listed above (factors 1, 2, 3, 4, 5 and 7) have little or no applicability here and factor 6, although present here to a certain degree, when properly analyzed
should not lead a court to substantively consolidate the Contributor and the Company. 
  
 With regard to the first factor, we note that the Transaction Documents and the Limited Liability Company Agreement prohibit commingling of the assets or business functions of the Contributor and the Company. 
  
 With regard to the second factor, it should not be difficult, at any time, to segregate and
ascertain the individual assets and liabilities of Contributor and the Company, since the Transaction Documents and the Limited Liability Company Agreement require the books and records, financial statements and accounting records of the Company to
be maintained separate from any other Person or entity. 
  
 With regard to the
third factor, our understanding is that there will be no loans, interparty guarantees on any loans to or other obligations of the Contributor by the Company, and no loans, interparty guarantees on any loans to or other obligation of the Company by
the Contributor. It should be noted that subordination of the Servicing Fee could be viewed by a court as indirect support by the Contributor of the Company. However, because of the relatively small size of the Servicing Fee (1% of the outstanding
Receivables) and the other positive factors outlined in this section, this factor should not be dispositive in a court’s analysis. 
  
 With regard to the fourth factor, we note that (a) all arrangements and agreements between the Contributor and the Company, other than with respect to the Servicing Fee,
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not more favorable than the terms and conditions that could have been obtained, under similar circumstances, from unaffiliated Persons, (b) there will be no
commingling of assets between the Contributor and the Company, (c) there will be no transfers of assets (other than on an arm’s length basis) between the Contributor and the Company and (d) all other corporate formalities between the
Contributor and the Company will be observed. 
  
 With regard to the fifth factor,
we believe that this factor relates to concern that the presence of consolidated financial statements would make it impossible for those creditors who read such statements to ascertain which assets were owned by which corporation within the
consolidated group. The Company will maintain its financial statements, accounting records and other entity documents separate from any other Person or entity, and the financial statements delivered by the Contributor to their creditors will not
include assets of the Company. Any consolidated financial statements of the Contributor and the Company will indicate through a footnote the conveyance of the Receivables to the Company. 
  
 With regard to the sixth factor, the “unity of interests and ownership,” is based upon considerations relating to creditors’
perception of the entities. This factor also should not support an attempt to substantively consolidate the Contributor and the Company, provided the Contributor and the Company hold themselves out and operate as separate entities and otherwise
comply with the Transaction Documents and the Limited Liability Company Agreement (in the case of the Company). Although the Contributor owns all of the Company’s outstanding equity interests, § 18-701 of the Delaware Limited Liability
Company Act recognizes the distinction between the ownership of a limited liability company interest and of the assets of such limited liability company. 
  
 The seventh factor goes to the question of whether, in a reorganization of the Contributor or the Company, it would be more economically efficient to operate the
different entities as a single entity. Offices of the Contributor and the Company will be physically located on the same premises. However, the Contributor and the Company shall maintain separate books and accounts and allocate fairly and reasonably
shared office space and shall use separate invoices, stationery and checks. We do not believe the fact that the offices of certain of the transaction parties are located on the same premises, when weighed against all other circumstances noted above
that are indicative of the existence of the parties as separate and apart from each other, should result in substantive consolidation. We again note that the presence of even several of the above factors does not require substantive consolidation.
Therefore, even if a court were to conclude that any of the parties could be profitably consolidated at a single physical location, we would not expect such court, after properly analyzing the intercompany relationships between the parties within
the framework of the above factors, to order substantive consolidation based upon such seventh factor. 
  
 Furthermore, the Contributor has business operations that are separate and distinct from the operations of the Company. Moreover, the Contributor has determined that the transactions with the Company and the
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advisable course of action designed to improve the financial position of the Contributor that will not impair the rights of creditors of the Contributor.

  
 Neither the Contributor nor any Affiliate of the Contributor has received
credit from any entity based upon any representations from the Contributor or any Affiliate of the Contributor that the assets of the Company at the time of such extension of credit were owned by the Contributor or any Affiliate of the Contributor.

  
 Thus, the Company is not a mere instrumentality of the Contributor, nor are
the affairs of the Contributor and the Company so entangled that it would be costly and time consuming to untangle them. Although the Contributor is liable for the federal income tax liabilities of the Company because of the federal tax treatment of
limited liability companies, such circumstances arise from a prescribed regulatory scheme and are not probative of whether the assets and liabilities of the Contributor and the Company are sufficiently separate for substantive consolidation
purposes. Because the Contributor and the Company will be operated as separate entities, and particularly because all financial statements of the Contributor will disclose the separate legal entity status of the Company and that the assets of the
Company are not available to satisfy the claims of creditors of the Contributor or any Affiliate of the Contributor, creditors of the Contributor will not be able to argue persuasively that they dealt with the Contributor and the Company as a single
entity. 
  
 If a proponent of substantive consolidation establishes a prima facie
case in favor of consolidation, the burden shifts to an objecting creditor to show that it relied on the separate credit of the entities to be consolidated and will be prejudiced by substantive consolidation. If an objecting creditor makes this
showing, then the court must determine whether the demonstrated benefits of consolidation “heavily” outweigh the harm, and where creditors rely on the separate existence of corporate entities in extending credit, or would suffer more than
minimal harm from disregarding such separate existence, courts have ruled that the balance of equities weighs against substantive consolidation. 
  
 The Administrative Agent and certain other parties have reasonably relied upon the separate existence of the Contributor and the Company and the credit of the
Contributor, and upon the ownership by the Company of its assets, when it entered into the transactions contemplated by the Transaction Documents. The Administrative Agent and certain other parties would be prejudiced by substantive consolidation.
While at this time the benefits of substantive consolidation cannot be known, there would appear to be few, if any, equities on the side of creditors of the Contributor who knew, by virtue of the facts described above, that the assets of the Company
were not available to satisfy their debts, but who would be arguing nonetheless in favor of substantive consolidation. Finally, creditors of the Contributor prior to the date hereof who were aware of the existence of the Company were not led to
believe by the Company or any Affiliate of the Company that any of such entities was responsible for any debts of the Contributor. Neither the Contributor nor any Affiliate of the Contributor have received credit from any entity based upon any
representations from the Contributors or any Affiliate of the Contributor that the assets of the Company at the time of such 

  

			
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extension of credit were owned by the Contributor or any Affiliate of the Contributor. Substantive consolidation is an equitable doctrine, and under these
circumstances a court should not conclude that the benefits heavily outweigh the harm. 
  

	III.	OPINIONS EXPRESSED 

  
 Based on the reasoning and the facts and on the assumptions, qualifications and limitations set forth in this letter, it is our opinion that in a properly presented and argued case, in the event of the bankruptcy of
the Contributor, a federal bankruptcy court would find that the contribution of the Receivables by the Contributor to the Company in the manner set forth in the Contribution Agreement would constitute a true conveyance of such Receivables and not a
borrowing by the Contributor secured by such Receivables, and therefore, such Receivables would not be the property of the Contributor’s bankruptcy estate under Section 541 of the Bankruptcy Code. In the event it were asserted that the
beneficial interest in and legal title to the Receivables was part of the Contributor’s bankruptcy estate, we express no opinion as to how long the Company or an assignee thereof would be denied possession of such Receivables or how long the
Company or an assignee thereof would be denied possession of the Collections in the Contributor’s possession before the validity of such assertion could be finally decided. We also express no opinion as to whether, in the event it were asserted
that the beneficial interest in and legal title to the Receivables and the Collections were part of the Contributor’s bankruptcy estate, a court would permit the Contributor to use Collections in the Contributor’s possession without the
consent of the Company or an assignee thereof, either before deciding the issue or pending appeal after a decision adverse to the Company or such assignee. 
  
 Based on the reasoning and the facts and on the assumptions and limitations set forth in this letter, it is our opinion that in a properly presented and argued case, a
federal bankruptcy court would not, on a motion of the Contributor as debtor in possession, or of a creditor, receiver, conservator or trustee of the Contributor, disregard the separate existence of the Company and order the assets and liabilities
of the Company, to be substantively consolidated with those of the Contributor. 
  
 We note, however, that substantive consolidation is an equitable doctrine and that courts have accorded different degrees of importance to the factual elements before them in determining whether to exercise their equitable power to order
substantive consolidation. Accordingly, there can be no assurance that a court, in exercising its discretionary equitable power, could not reach a conclusion contrary to the opinion expressed herein. 
  
 We also express no opinion as to the availability or effect of a preliminary injunction,
temporary restraining order or other such temporary relief affording delay pending a determination on the merits; by such reservation, however, we do not imply that we have undertaken any analysis to determine whether any such equitable relief would
be available to prevent enforcement of the Transaction. 
  

			
	 To the Persons listed on Schedule I hereto
	  	 Page 23

	 [*], 2000
	  	 

  

 All of the analysis and its conclusions contained in this letter are based on, and limited to, the law and the
structure of the Transaction in effect as of the date of this letter. We also note that a court’s decision regarding matters covered by our opinions in this letter will be based on the court’s own analysis and interpretation of the factual
evidence before such court and of legal principles applicable at such time. 
  
 We
are members of the bar of the State of New York and we express no opinion herein as to any matters governed by any laws other than the law of the State of New York and the Federal laws of the United States of America. 
  
 This opinion is rendered only to you and is solely for your benefit in connection with the
Transaction contemplated in the Contribution Agreement and the other Transaction Documents. It may not be relied upon by you for any other purpose, or quoted to or relied upon by any other person, firm or corporation for any purpose, and, without
our prior written consent, may not be transmitted or disclosed to any other person save to Standard & Poor’s Ratings Services, a division of the McGraw Hill Companies, Inc., and Moody’s Investor Services, Inc., who may rely on this
opinion as if it were addressed to them, and their respective legal advisors. 
  
 Very truly yours, 
  

 Schedule I 
  

Addressees 
  
 The Chase Manhattan Bank, as Administrative Agent 
 [Address] 
  
 Triangle Receivables Funding LLC 
 c/o Memec, LLC 
 [Address] 
  
 Memec, LLC 
 [Address] 
  
 Park Avenue Receivables Corporation,

 [Address] 
  
 Sheffield Receivables Corporation, 
 [Address] 
  

 Schedule II 
  
 List of Documents Reviewed by 
 Clifford Chance Rogers & Wells LLP 
  

	1.	Contribution Agreement dated as of [ • ], 2000, between the Contributor and the Company. 

  

	2.	Asset Backed Loan Agreement dated as of [ • ] 2000, among the Administrative Agent, the Company, the CP Conduit Lenders, Certain APA Banks and Barclays Bank plc, as Sheffield
Funding Agent. 

  

	3.	Limited Liability Company Agreement dated [ • ], 2000, among Memec, LLC, as sole equity member, and Donald J. Puglisi, as special member. 

  

	4.	Legal opinions of Richards, Layton & Finger, special Delaware counsel for the Company and the Contributor, dated [ • ], 2000, forms of which are attached hereto as Exhibit
B. 

  

	5.	Legal opinion of Farella Braun & Martel, special California counsel for the Company, dated [ • ], 2000, a form of which is attached hereto as Exhibit C.

  

	6.	Certificate of solvency of [ ], chief operating officer of Memec, LLC, dated [ • ], 2000, a form of which is attached hereto as Exhibit A. 

  

	7.	Unfiled copies of the UCC-1 financing statements (together with the Schedule attached thereto) naming Memec, LLC as “Contributor” and Triangle Receivables Funding LLC as
“Contributee” and describing the Contribution Agreement and the Receivables to be contributed thereunder, which will be filed in the State of California. 

  

 Exhibit A 
  

Solvency Certificate 
 of

 Memec LLC 
  

			
	To:	  	Triangle Receivables Funding LLC
	 	  	The Chase Manhattan Bank, as Administrative Agent
	Attention:	  	[·]
	Facsimile:	  	[·]

  
 I, [·], a duly elected manager of MEMEC LLC (the “Contributor”) hereby certify (in my capacity as a manager of the Contributor) in connection with the
contribution of certain Receivables on the date hereof to the Company (as defined herein) pursuant to that certain Contribution Agreement dated as of [·], 2000 (the “Contribution Agreement”), among the Contributor, and Triangle Receivables Funding LLC], as the Company (the “Company”) as follows: 
  
 The fair value of the assets of the Contributor at a fair valuation exceeds the debts and liabilities (whether subordinated, contingent or
otherwise) of the Contributor. The assets of the Contributor do not constitute unreasonably small capital to conduct the business in which it is engaged as such business is now conducted and is proposed to be conducted. The present fair saleable
value of the property of the Contributor will be greater than the amount that will be required to pay the probable liability of the Contributor on its debts and other liabilities, subordinated, contingent or otherwise, as such debts and other
liabilities become absolute and matured. The Contributor does not intend to, or believe that it will, incur debts beyond its ability to pay such debts as they mature, taking into account the timing of and amounts of cash to be received by the
Contributor and the timing of the amounts of cash to be payable on or in respect of its indebtedness. The Contributor does not contemplate the commencement of insolvency, bankruptcy, liquidation or consolidation proceedings or the appointment of a
receiver, liquidator, conservator, trustee or similar official in respect of the Contributor or any of its assets or revenue. 
  
 Capitalized terms used herein but not otherwise defined shall have the respective meanings assigned to such terms in the Contribution Agreement. 
  
 IN WITNESS WHEREOF, I have signed and delivered this solvency certificate this
[·] day of [·]. 
  

			
	 MEMEC LLC,
 as Contributor

		
	 By:
	 	 
	 	 	

	 	 	 Name:

	 	 	 Title:

  

 Exhibit B 
  

Form of Legal Opinions of Delaware Counsel 
  

 Exhibit C 
  

Form of Legal Opinion of California Counsel 
  

 EXHIBIT J-1 
  
 FORM OF BORROWER’S SECRETARY CERTIFICATE 
 DELIVERED PURSUANT TO SECTION 4.01(A). 
  
 I,
                                        
    , the undersigned
                                        
     of Triangle Receivables Funding LLC (the “Borrower”), a Delaware limited liability company, DO HEREBY CERTIFY that: 
  

1. Attached hereto as Annex A is a true and complete copy of the Certificate of Formation of the Borrower as in effect on the date hereof. 

 
 2. Attached hereto as Annex B is a true and complete copy of the Limited
Liability Company Agreement of the Borrower as in effect on the date hereof. 
  
 3. `Attached hereto as Annex C is a true and complete copy of the resolutions duly adopted by the Board of Directors of the Borrower [adopted by consent] as of
                     , 2000, authorizing the execution, delivery and performance of each of the documents mentioned therein, which
resolutions have not been revoked, modified, amended or rescinded and are still in full force and effect. 
  
 4. Attached hereto as Annex D are copies of good standing certificates of the Borrower, certified by the Secretary of State of the State of Delaware.

  
 5. The below-named persons have been duly qualified as and at
all times since                 , 2000, to and including the date hereof have been officers or representatives of the Borrower holding the respective offices or
positions below set opposite their names and are authorized to execute on behalf of the Borrower the below-mentioned Agreement and all other Transaction Documents (as defined in such Agreement) to which the Borrower is a party and the signatures
below set opposite their names are their genuine signatures: 
  

					
	 Name

	  	 Office

	  	 Signatures

	 	  	[OFFICE]	  	 
	 	 	 	 	

	 	  	[OFFICE]	  	 
	 	 	 	 	

  
 The representations
and warranties of the Borrower contained in Article III of the Agreement, dated as of August [            ], 2000, by and among the Borrower, PARK AVENUE RECEIVABLES CORPORATION
(“PARCO”), SHEFFIELD RECEIVABLES CORPORATION (“Sheffield”, and together with PARCO, the “CP Conduit Lenders”), BARCLAYS BANK PLC (“Barclays”), as Sheffield’s funding agent (in
such capacity, the “Sheffield Funding Agent”) and THE CHASE MANHATTAN BANK (“Chase”), as PARCO’s funding agent (in such capacity, the “PARCO Funding Agent”), as Administrative Agent (in such
capacity, the “Administrative Agent”), as 

  

 
collection agent (in such capacity, the “Collection Agent”) and as a PARCO APA Bank are true and correct as if made on the date hereof.

  
 WITNESS my hand and seal of
                     as of this              day of
                , 2000. 
  

	
	
	 
	

	Secretary

  
 I, the
undersigned,                      of Triangle Receivables Funding LLC, DO HEREBY CERTIFY that
                     is the duly elected and qualified Secretary of Triangle Receivables Funding LLC and the signature above is his/her
genuine signature. 
  
 WITNESS my hand as of this
         day of                     , 2000. 
  

	
	
	 
	

	[Officer]

  

 2 

 EXHIBIT J-2 
  
 FORM OF CONTRIBUTOR’S SECRETARY CERTIFICATE 
 DELIVERED PURSUANT TO SECTION 4.01(B). 
  
 I,
                                    , the undersigned
                                     of MEMEC LLC (the
“Contributor”), a Delaware limited liability company, DO HEREBY CERTIFY that: 
  
 1. Attached hereto as Annex A is a true and complete copy of the Certificate of Formation of the Contributor as in effect on the date hereof. 
  
 2. Attached hereto as Annex B is a true and complete copy of the Limited Liability Company Agreement of the Contributor as
in effect on the date hereof. 
  
 3. Attached hereto as Annex C is
a true and complete copy of the resolutions duly adopted by the Board of Directors of the Contributor [adopted by consent] as of                 
    , 2000, authorizing the execution, delivery and performance of each of the documents mentioned therein, which resolutions have not been revoked, modified, amended or rescinded and are still in full force and effect.

  
 4. Attached hereto as Annex D are copies of good standing
certificates of the Contributor, certified by the Secretary of State of the State of Delaware. 
  
 5. The below-named persons have been duly qualified as and at all times since                 , 2000, to and including the date
hereof have been officers or representatives of the Contributor holding the respective offices or positions below set opposite their names and are authorized to execute on behalf of the Contributor the below-mentioned Agreement and all other
Transaction Documents (as defined in such Agreement) to which the Contributor is a party and the signatures below set opposite their names are their genuine signatures: 
  

					
	 Name

	  	 Office

	  	 Signatures

	 	  	[OFFICE]	  	 
	 	 	 	 	

	 	  	[OFFICE]	  	 
	 	 	 	 	

  
 The representations
and warranties of the Contributor contained in Article IV of the Agreement, dated as of August [    ], 2000, by and between Triangle Receivables Funding LLC and the Contributor are true and correct as if made on the date
hereof. 
  
 WITNESS my hand and seal of
                     as of this          day of
                , 2000. 
  

	
	
	 
	

	Secretary

  

 3 

 I, the undersigned,
                             of MEMEC LLC, DO HEREBY CERTIFY that
                             is the duly elected and qualified Secretary of MEMEC LLC and the
signature above is his/her genuine signature. 
  
 WITNESS my hand
as of this          day of                 , 2000. 
  

	
	
	 
	

	 [Officer]

  

 4 

 EXHIBIT J-3 
  
 FORM OF CONTRIBUTOR’S SECRETARY CERTIFICATE 
 DELIVERED PURSUANT TO SECTION 4.02(K) 
  
 I,
                                    , the undersigned
                                     of MEMEC LLC (the
“Contributor”), a Delaware limited liability company, DO HEREBY CERTIFY that, in connection Section 4.02(k) of the Asset-Backed Loan Agreement, dated as of August [    ], 2000, by and among TRIANGLE
RECEIVABLES FUNDING LLC, as borrower (in such capacity, the “Borrower”), PARK AVENUE RECEIVABLES CORPORATION (“PARCO”), SHEFFIELD RECEIVABLES CORPORATION (“Sheffield”, and together with PARCO, the
“CP Conduit Lenders”), BARCLAYS BANK PLC (“Barclays”), as Sheffield’s funding agent (in such capacity, the “Sheffield Funding Agent”) and THE CHASE MANHATTAN BANK (“Chase”), as
PARCO’s funding agent (in such capacity, the “PARCO Funding Agent”), as Administrative Agent (in such capacity, the “Administrative Agent”), as collection agent (in such capacity, the “Collection
Agent”) and as a PARCO APA Bank, the Contributor maintains disaster recovery systems and backup computer and other information management systems reasonably satisfactory to the Lenders to protect the Contributor’s business against
material interruption or loss or destruction of its primary computer and information management systems. 
  
 WITNESS my hand as of this          day of
                , 2000. 
  

	
	
	 
	

	 [Officer]

  

 5 

 EXHIBIT K 
  

SUBSIDIARIES AND DIVISIONS OF THE CONTRIBUTOR 
  
 [To be Provided to the Administrative Agent by the Collection Agent] 
  

 EXHIBIT L 
  

FORM OF CONTRIBUTION AGREEMENT 
  

 CLIFFORD CHANCE             

ROGERS & WELLS LLP 
  
 MEMEC LLC, 
 as Contributor 
  
 And 
  
 TRIANGLE RECEIVABLES FUNDING LLC, 
 as the Company 
  

  
 CONTRIBUTION AGREEMENT 
  

  

 - 1 - 

 CONTENTS 
  

					
	Article

	  	Page

			
	1.	  	 Definitions
	  	1
			
	2.	  	 Contribution of Receivables
	  	9
			
	3.	  	 Conditions to Contributions
	  	13
			
	4.	  	 Representations and Warranties
	  	16
			
	5.	  	 Affirmative Covenants
	  	22
			
	6.	  	 Negative Covenants
	  	27
			
	7.	  	 Termination
	  	30
			
	8.	  	 Miscellaneous
	  	32

  

			
	 SCHEDULE 2.1(d)
	  	 Daily Report

		
	 SCHEDULE 3.1(e)(i)
	  	 Form of California Counsel Opinion

		
	 SCHEDULE 3.1(e)(ii)
	  	 Form of New York Counsel Opinion

		
	 SCHEDULE 3.1(e)(iii)
	  	 Form of Delaware Counsel Opinion

		
	 SCHEDULE 3.1((f)
	  	 Form of Bankruptcy Opinion

		
	 SCHEDULE 3.1(j)
	  	 Form of Solvency Certificate

		
	 SCHEDULE 4.1(n)(i)
	  	 Location of Books and Records

		
	 SCHEDULE 4.1(n)(ii)
	  	 Chief Executive Office

		
	 SCHEDULE 4.1(p)(i)
	  	 Other Business Names

		
	 SCHEDULE 8.1
	  	 Accounts

  

 - i - 

 CONTRIBUTION AGREEMENT (this “Agreement”) dated as of [ l ], 2000 
  
 BETWEEN 
  

	(1)	MEMEC LLC, a limited liability company organized under the laws of the State of Delaware, as contributor (the “Contributor”); and 

 

	(2)	TRIANGLE RECEIVABLES FUNDING LLC, a special purpose limited liability company organized under the laws of the State of Delaware, as the company (the
“Company”). 

  
 WHEREAS 
  

	(A)	The Contributor intends to purchase certain Receivables and other Receivable Assets related to such Receivables from one or more Originators from time to time pursuant to the terms
of the Receivables Purchase Agreements. 

  

	(B)	The Contributor desires to transfer, contribute, convey and assign from time to time, all of its right, title and interest in, to and under such Receivables and all other Receivable
Assets related to such Receivables to the Company as a capital contribution to the Company. 

  

	(C)	The Company intends to borrow funds from time to time secured by the Receivables through an Asset Backed Loan Facility to be granted by the Lenders to the Company pursuant to the
Asset Backed Loan Agreement. 

  

	(D)	In lending funds to the Company under the Asset Backed Loan Agreement, the Lenders are relying on the representations and warranties made by the Contributor hereunder.

  

	(E)	The Company intends to grant a security interest in all of its right, title and interest in, to and under the Receivables and this Agreement to the Administrative Agent as security
for the Asset Backed Loan Facility. 

  

	(F)	In accordance with the Asset Backed Loan Agreement, the Administrative Agent has appointed the Contributor as Collection Agent to service and administer, or cause to be serviced and
administered, the Receivables on behalf of the Company and the Administrative Agent, all in accordance with the Asset Backed Loan Agreement. 

  
 NOW, THEREFORE, in consideration of the premises and of the mutual covenants contained herein, and other good and valuable consideration, the receipt and adequacy
of which are hereby acknowledged, the parties hereto agree as follows: 
  

	1.	DEFINITIONS 

  

	1.1	Defined Terms 

  
 Whenever used in this Agreement (including the recitals hereto), the following words and phrases shall have the following meanings: 
  
 “1940 Act” means the United States Investment Company Act
of 1940, as amended. 
  
 “Additional Originator”
means any additional originator made a party to any existing or future Receivables Purchase Agreement pursuant to the terms thereof. 
  
 “Adjustment Payment” has the meaning assigned in Section 2.6(a). 
  

 - 1 - 

 “Administrative Agent” has the meaning assigned in the Asset Backed Loan Agreement.

  
 “Affiliate” means, with respect to any
specified Person, any other Person which, directly or indirectly, is in control of, is controlled by, or is under common control with, such specified Person. For purposes of this definition, “control” of a Person means the possession,
directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities or otherwise, and the terms “controlling” and “controlled”
have meanings correlative to the foregoing. 
  
 “Applicable Insolvency Laws” means, with respect to any Person, any applicable bankruptcy, insolvency, or other similar United States or foreign law now or hereinafter in effect. 
  
 “Asset Backed Loan Agreement” means the Asset Backed Loan
Agreement dated [ l ], 2000 by and among the Company, as borrower, the CP Conduit Lenders, certain PARCO APA Banks, Barclays Bank plc, as
Sheffield Funding Agent and The Chase Manhattan Bank as PARCO Funding Agent, Administrative Agent and Collection Agent, pursuant to which the Lenders have granted to the Company the Asset Backed Loan Facility. 
  
 “Asset Backed Loan Facility” means the secured syndicated
loan facility granted to the Company by the Lenders pursuant to the Asset Backed Loan Agreement. 
  
 “Atlas” means Atlas Services LLC, a [Delaware limited liability company], which prior to the Effective Date, was an affiliate of the
Originators. 
  
 “Atlas Receivables” means
Receivables invoiced on behalf of the Originators by Atlas and identified on the Daily Report as such. 
  
 “Atlas Transition Period” means the 90 day period following the Effective Date, or with respect to Receivables invoiced by Atlas pursuant
to any contract between Atlas and any customer of the Originators the term of which is longer than 90 days, then such longer period. 
  
 “Bankruptcy Code” means the United States Federal Bankruptcy Code, 11 U.S.C. §§ 101-1330, as amended. 
  
 “Business Day” means any day other than (i) a Saturday or a
Sunday or (ii) another day on which commercial banking institutions or trust companies in London, the States of California and New York, or in the city where the chief executive office of the Contributor is located, are authorized or obligated by
law, executive order, or governmental decree to be closed. 
  
 “Certificate of Formation” means the certificate of formation with respect to the Company filed with the Secretary of State of Delaware pursuant to Section 18-201 of the Delaware Limited Liability Company Act, and any and
all amendments thereto and restatements thereof. 
  
 “Clean-Up Payment” has the meaning assigned in Section 2.6(c). 
  
 “Code” means the United States Internal Revenue Code of 1986, as amended, and the rules and regulations promulgated thereunder from time to time. 
  
 “Collection Agent” has the meaning assigned in the Asset
Backed Loan Agreement. 
  
 “Collection Agent
Default” has the meaning assigned in the Asset Backed Loan Agreement. 
  

 - 2 - 

 “Collections” means, with respect to any Receivable, all cash collections and other cash
proceeds of such Receivable, including any finance, interest, late or similar charges owed by an Obligor pursuant to a Contract, and any cash proceeds of Related Property with respect to such Receivable. 
  
 “Commitment Expiry Date” has the meaning assigned in the
Asset Backed Loan Agreement. 
  
 “Contract”
means an agreement between an Originator and an Obligor (including a written contract, an invoice, a purchase order or open account), pursuant to which or under which such Obligor is obligated to make payments in respect of any Receivable or Related
Property to such Originator from time to time. 
  
 “Contractual Obligation” means, as to any Person, any provision of any security issued by such Person or of any agreement, instrument or other undertaking to which such Person is a party or by which it or any of its
property is bound. 
  
 “Contribution Date” has
the meaning set forth in Section 2.1(a). 
  
 “Contribution Value” has the meaning set forth in Section 2.2. 
  
 “CP Conduit Lenders” has the meaning assigned in the Asset Backed Loan Agreement. 
  
 “Credit Agreement” has the meaning assigned in the Asset Backed Loan Agreement. 
  
 “Daily Report” means the report prepared by the Contributor
pursuant to this Agreement, together with a list of the Receivables described therein, neither of which shall be signed by the Contributor or any other person. 
  

“Defaulted Receivable” has the meaning assigned in the Asset Backed Loan Agreement. 
  
 “Designated Ineligible Receivable” means each Receivable
contributed to the Company that is not an Eligible Receivable as of the relevant Contribution Date and that is identified on the Daily Report as a Designated Ineligible Receivable. 
  
 “Diluted Receivable” has the meaning assigned in the Asset Backed Loan Agreement. 
  
 “Dilution Adjustment” means any adjustment that would
result in a Receivable becoming a Diluted Receivable. 
  
 “Dilution Adjustment Payment” has the meaning assigned in Section 2.5. 
  
 “Dollar Equivalent” has the meaning assigned in the Asset Backed Loan Agreement. 
  
 “Dollars” shall mean the lawful currency of the United
States. 
  
 “Effective Date” means the Business
Day upon which the initial conditions precedent set forth in Section 3 have been satisfied or waived by the Company, which day shall be designated by the Company. 
  
 “Eligible Receivables” has the meaning assigned in the Asset Backed Loan Agreement. 
  
 “ERISA” means the United States Employee Retirement Income
Security Act of 1974, as amended. 
  

 - 3 - 

 “ERISA Affiliate” means with respect to any Person, any trade or business (whether or
not incorporated) that is a member of a group of which such Person is a member and which is treated as a single employer under Section 414 of the Code. 
  
 “GAAP” means generally accepted accounting principles in the United States, as in effect from time to time. 
  
 “General Opinion” means, with respect to any action, an
Opinion of Counsel to the effect that (i) such action has been duly authorized by all necessary limited liability company action on the part of the Contributor, (ii) any agreement executed in connection with such action constitutes a legal, valid
and binding obligation of the Contributor, enforceable in accordance with the terms thereof, except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’
rights and generally (whether considered in a proceeding at law or in equity) (or subject to similar exceptions), (iii) such action does not violate the Contributor’s limited liability company agreement and (iv) such action does not result in a
breach of, or default under any material contractual obligation, or the creation of any Lien pursuant thereto. 
  
 “Governmental Authority” means any nation or government, any state or other political subdivision thereof and any entity exercising
executive, legislative, judicial, regulatory or administrative functions of or pertaining to government. 
  
 “Incremental Borrowing” has the meaning assigned in the Asset Backed Loan Agreement. 
  
 “Indebtedness” has the meaning assigned in the Asset Backed
Loan Agreement. 
  
 “Indemnification Event” has
the meaning assigned in Section 2.6(b). 
  
 “Indemnification Liabilities” has the meaning assigned in Section 8.2. 
  
 “Indemnification Payment” has the meaning assigned in Section 2.6(b). 
  
 “Independent Public Accountants” means, with respect to any Person, any independent certified public
accountants of nationally recognized standing or any successor thereto (who may also render services to the Company), provided that such firm is independent with respect to such Person within the meaning of Regulation 2-01(b) under the United
States Securities Act of 1933, as amended. 
  
 “Insolvency Event” means, with respect to any Person, (i) a court having jurisdiction shall enter a decree or order for relief in respect of such Person in an involuntary case under Applicable Insolvency Laws, which decree
or order is not stayed or any other similar relief shall be granted under any applicable federal, state or foreign law now or hereafter in effect and shall not be stayed; (ii) (A) an involuntary case is commenced against such Person under any
Applicable Insolvency Law now or hereafter in effect, a decree or order of a court having jurisdiction for the appointment of a receiver, liquidator, sequestrator, trustee, custodian or other officer having similar powers over such Person, or over
all or a substantial part of the property of such Person, shall have been entered, an interim receiver, trustee or other custodian of such Person for all or a substantial part of the property of such Person is involuntarily appointed, a warrant of
attachment, execution or similar process is issued against any substantial part of the property of such Person, and (B) any event referred to in clause (ii)(A) above continues for sixty (60) days unless dismissed, bonded or discharged; (iii) such
Person shall at its request have a decree or an order for relief entered with respect to it or commence a voluntary case under any Applicable 

  

 - 4 - 

 
Insolvency Law now or hereafter in effect, or shall consent to the entry of a decree or an order for relief in an involuntary case, or to the conversion of
an involuntary case to a voluntary case, under any such Applicable Insolvency Law, consent to the appointment of or taking possession by a receiver, trustee or other custodian for all or a substantial part of its property; (iv) the making by such
Person of any general assignment for the benefit of creditors; (v) the inability or failure of such Person generally to pay its debts as such debts become due; or (vi) the Board of Directors or equivalent body of such Person authorizes action to
approve any of the foregoing. 
  
 “Lenders” has
the meaning assigned in the Asset Backed Loan Agreement. 
  
 “Lien” means, with respect to any asset, (a) any mortgage, deed of trust, lien, pledge, encumbrance, charge or security interest in or on such asset and (b) the interest of a vendor or a lessor under any conditional sale
agreement, capital lease or title retention agreement relating to such asset; provided, however, that if a lien is imposed under Section 412(n) of the Code or Section 302(f) of ERISA for a failure to make a required installment or other
payment to a plan to which Section 412(n) of the Code or Section 302(f) of ERISA applies, then such lien shall not be treated as a “Lien” from and after the time (i) any Person who is obligated to make such payment pays to such plan the
amount of such lien determined under Section 412(n)(3) of the Code or Section 302(f)(3) of ERISA, as the case may be, and provides to the Company and the Administrative Agent a written statement of the amount of such lien together with written
evidence of payment of such amount, or (ii) such lien expires pursuant to Section 412(n)(4)(B) of the Code or Section 302(f)(4)(B) of ERISA. 
  
 “Limited Liability Company Agreement” means the Limited Liability Company Agreement dated as of [ l ], 2000 by Gregory Lavelle, as sole shareholder and Donald J. Puglisi, as special member. 
  

“Loan Termination Date” means a Termination Date under the Asset Backed Loan Agreement. 
  
 “Local Business Day” means, with respect to a Person any
day other than (a) a Saturday or Sunday or (b) another day on which commercial banking institutions or trust companies in the jurisdictions where such Person has its principal place of business are authorized or obligated by law, executive order, or
governmental decree to be closed. 
  
 “Lock-Box
Account” has the meaning assigned in the Asset Backed Loan Agreement. 
  
 “Margin Stock” has the meaning given to such term in Regulation U of the United States Board of Governors of the Federal Reserve System. 
  
 “Material Adverse Effect” means, when used with respect to any Person, (a) a material impairment of such
Person’s ability to perform its obligations under the Transaction Documents, (b) a materially adverse effect on the business, operations, property or condition (financial or otherwise) of such Person or (c) a material impairment of the validity
or enforceability of any of the Transaction Documents against such Person and, where applicable, shall also include (d) a material impairment of the collectability of the Receivables taken as a whole and (e) a material impairment of the interests,
rights or remedies of the Company with respect to the Transaction Documents or the Receivables taken as a whole. 
  
 “Multiemployer Plan” means with respect to any Person, a multiemployer plan as defined in Section 400 l(a)(3) of ERISA to which such
Person or any ERISA Affiliate of such Person (other than one considered an ERISA Affiliate only pursuant to subsection (m) or (o) of Section 414 of 

  

 - 5 - 

 
the Code) is making or accruing an obligation to make contributions, or has within any of the preceding five plan years made or accrued an obligation to make
contributions. 
  
 “Obligor” means, with respect
to any Receivable, the party obligated to make payments with respect to such Receivable, including any guarantor thereof. 
  
 “Opinion of Counsel” means a written opinion or opinions of one or more counsel to the Contributor, which counsel shall be reasonably
acceptable to the Company and the Administrative Agent. 
  
 “Originators” means the U.S. Originators, the U.K. Originators and any Additional Originators. 
  
 “PBGC” means the Pension Benefit Guaranty Corporation established pursuant to Subtitle A of Title IV of ERISA and any Person succeeding
to the functions thereof. 
  
 “Permitted Liens”
means, at any time, for any Person: 
  

	 	(a)	Liens created pursuant to any Transaction Document; and 

  

	 	(b)	Liens for taxes, assessments or other governmental charges or levies (i) not yet due or (ii) that are being contested in good faith by appropriate proceedings and with respect to
which reserves in conformity with GAAP have been provided on the books of such Person. 

  
 “Person” means any individual, partnership, corporation, business trust, joint stock company, trust, unincorporated association, joint
venture, limited liability company, Governmental Authority or other entity of whatever nature. 
  
 “Plan” means, with respect to any Person, any pension plan (other than a Multiemployer Plan) subject to the provisions of Title IV of
ERISA or Section 412 of the Code which is maintained for employees of such Person or any ERISA Affiliate of such Person. 
  
 “Policies” means the credit and collection policies of the Contributor or any Originator, as applicable, copies of any of which that are
in writing have been previously delivered to the Company. 
  
 “Potential Termination Event” means any condition or act that, with the giving of notice or the lapse of time or both, would constitute a Termination Event. 
  
 “Principal Amount” means, with respect to any Receivable, the unpaid principal amount due thereunder.

  
 “Purchase Price” means, with respect to any
Receivable, the price paid for such Receivable by the Contributor pursuant to the applicable Receivables Purchase Agreement. 
  
 “Receivable” means all the indebtedness and payment obligations of an Obligor to an Originator arising from the sale of merchandise or
services by an Originator (and shall include, without limitation, the right of payment of any interest, sales taxes, finance charges, returned check or late charges and other obligations of such Obligor with respect thereto). 
  
 “Receivable Assets” has the meaning assigned in Section
2.1(a). 
  

 - 6 - 

 “Receivables Purchase Agreements” means the U.S. Receivables Purchase Agreement, the
U.K. Receivables Purchase Agreement and any substantially similar agreement entered into by and between the Contributor and any of its Affiliates. 
  
 “Related Property” means, with respect to a Receivable: 
  

	 	(a)	all of the Originator’s interest in the goods, if any, relating to the sale that gave rise to such Receivable; 

  

	 	(b)	all other security interests or liens and property subject thereto from time to time purporting to secure payment of such Receivable, whether pursuant to the Contract related to
such Receivable or otherwise, together with all financing statements signed by the applicable Obligor describing any collateral securing such Receivable; and 

  

	 	(c)	all guarantees, insurance and other agreements or arrangements of whatever character from time to time supporting or securing payment of such Receivable whether pursuant to the
Contract related to such Receivable or otherwise; 

  
 “Reportable Event” means any reportable event as defined in Section 4043(b) of ERISA or the regulations issued thereunder with respect to a Plan (other than a Plan maintained by an ERISA Affiliate which is considered an
ERISA Affiliate only pursuant to subsection (m) or (o) of Section 414 of the Code). 
  
 “Requirement of Law” for any Person means the certificate of incorporation and bylaws or other organizational or governing documents of such Person, and any law, treaty, rule or regulation, or
determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person or any of its property or to which such Person or any of its property is subject. 
  
 “Responsible Officer” means any member of the Board of
Directors or equivalent body, the Chief Executive Officer, the President, the Chief Financial Officer, the Treasurer or Manager (in the case of a limited liability company) of such Person. 
  
 “Specified Bankruptcy Opinion Provisions” means the factual
assumptions (including those contained in the factual certificate referred to therein) and the actions to be taken by the Contributor, the U.S. Originators and the Company in the legal opinion of Clifford Chance Rogers & Wells LLP relating to
certain bankruptcy matters delivered on the Effective Date. 
  
 “Subsidiary” means, as to any Person, a corporation, partnership, or other entity of which shares of stock or other ownership interests having ordinary voting power (other than stock or such other ownership interests having
such power only by reason of the happening of a contingency) to elect a majority of the board of directors or other equivalent body of such corporation, partnership, or other entity are at the time owned, or the management of which is otherwise
controlled, directly or indirectly, through one of more intermediaries, or both, by such Person. 
  
 “Termination Date” means the earliest of (i) the Business Day designated by the Company to the Contributor as the Termination Date at any
time following forty-five (45) days’ written notice to the Contributor, (ii) the day upon which a Termination Event is declared or automatically occurs relating to a Termination Event pursuant to Section 7.1, and (iii) the Commitment Expiry
Date. 
  

 - 7 - 

 “Termination Event” has the meaning assigned in Section 7.1. 
  
 “Transaction Documents” means the collective reference to
the Receivables Purchase Agreements, this Agreement, the Asset Backed Loan Agreement and any other documents delivered pursuant to or in connection therewith. 
  

“Transactions” means the transactions contemplated under each of the Transaction Documents. 
  
 “UCC” means the Uniform Commercial Code, as amended from
time to time, as in effect in any specified jurisdiction. 
  
 “U.K. Originators” means (i) Memec UK Ltd, a limited liability company organized under the laws of England and Wales, and (ii) any Additional Originator under the U.K. Receivables Purchase Agreement. 
  
 “U.K. Receivables Purchase Agreement” means the Receivables
Purchase Agreement dated [ l ], 2000 by and among the Contributor, the U.K. Originators, Barclays Bank plc, as Sheffield Funding Agent, and The
Chase Manhattan Bank, as PARCO Funding Agent and Administrative Agent pursuant to which the Contributor has agreed to purchase Receivables and all other Receivable Assets related to such Receivables from the U.K. Originators from time to time.

  
 “United States” for purposes of geographic
description means the United States of America (including the States and the District of Columbia), its territories, its possessions (including Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, Wake Island and the Northern Mariana Islands)
and other areas subject to its jurisdiction. 
  
 “U.S.
Originators” means (i) Insight Electronics LLC, a Delaware limited liability company, (ii) Impact Semiconductor Technologies LLC, a Delaware limited liability company, (iii) Unique Semiconductor Technologies Inc., a California corporation,
and (iv) any Additional Originator under the U.S. Receivables Purchase Agreement. 
  
 “U.S. Receivables Purchase Agreement” means the Receivables Purchase Agreement dated [ l ],
2000 by and among the Contributor and the U.S. Originators, pursuant to which the Contributor has agreed to purchase Receivables and all other Receivable Assets related to such Receivables from the U.S. Originators from time to time. 
  

	1.2	Other Definitional Provisions 

  

	 	(a)	The words “hereof”, “herein”, “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to
any particular provision of this Agreement, and Article, Section, Schedule and Exhibit references are to this Agreement unless otherwise specified. 

  

	 	(b)	As used herein and in any certificate or other document made or delivered pursuant hereto, accounting terms relating to the Contributor and the Company, unless otherwise defined or
incorporated by reference herein, shall have the respective meanings given to them under GAAP. 

  

	 	(c)	The meanings given to terms defined or incorporated by reference herein shall be equally applicable to both the singular and plural forms of such terms. 

  

	 	(d)	 Any reference herein to a Schedule or Exhibit to this Agreement shall be deemed to be a reference to such Schedule or Exhibit as it may be amended, modified or
supplemented 

  

 - 8 - 

	 	 
from time to time to the extent that such Schedule or Exhibit may be amended, modified or supplemented (or any term or provision of any Transaction Document
may be amended that would have the effect of amending, modifying or supplementing information contained in such Schedule or Exhibit) in compliance with the terms of the Transaction Documents. 

  

	 	(e)	Any reference in this Agreement to any representation, warranty or covenant “deemed” to have been made is intended to encompass only representations, warranties or
covenants that are expressly stated to be repeated on or as of dates following the execution and delivery of this Agreement, and no such reference shall be interpreted as a reference to any implicit, inferred, tacit or otherwise unexpressed
representation, warranty or covenant. 

  

	 	(f)	The words “include”, “includes” or “including” shall be interpreted as if followed, in each case, by the phrase “without limitation”.

  

	 	(g)	Any reference herein to a provision of the Bankruptcy Code, Code, ERISA, 1940 Act or the UCC shall be deemed a reference to any successor provision thereto.

  

	2.	CONTRIBUTION OF RECEIVABLES 

  

	2.1	Contribution 

  

	 	(a)	Subject to the terms and conditions of this Agreement, the Contributor shall contribute, transfer, assign, and convey, without recourse (except as expressly provided herein), to the
Company as a capital contribution to the Company, all of its present and future right, title and interest in, to and under: 

  

	 	(i)	Receivables purchased by the Contributor from an Originator pursuant to the terms of a Receivables Purchase Agreement from time to time pursuant to and as indicated in the Daily
Report delivered to the Company on the applicable date of contribution; 

  

	 	(ii)	the Related Property; 

  

	 	(iii)	all Collections; 

  

	 	(iv)	all payment, enforcement and other rights (including rescission, replevin or reclamation) of the Contributor relating to any such Receivable or arising therefrom;

  

	 	(v)	all monies due or to become due and all amounts received with respect to the items listed in clauses (i) through (iv) above and all proceeds (including anything received upon the
sale, exchange, collection or other disposition of the foregoing and all “proceeds” as defined in Section 9-306 of the UCC as in effect in the State of New York) thereof; 

  

	 	(vi)	any lock-box accounts related to the Receivables; 

  

	 	(vii)	 all rights of the Contributor under each of the Receivables Purchase Agreements including, in respect of each such agreement, (A) all rights of the Contributor to
receive monies due and to become due under or pursuant to such agreement, whether payable as fees, expenses, costs or otherwise, (B) all rights of the 

  

 - 9 - 

	 	 
Contributor to receive proceeds of any insurance, indemnity, warranty or guaranty with respect to such agreement, (C) claims of the Contributor arising out
of or for breach of or default under such agreement, (D) the right of the Contributor to amend, waive or terminate such agreement, to perform thereunder and to compel performance and otherwise exercise all remedies thereunder and (E) all other
rights, remedies, powers, privileges and claims of the Contributor under or in connection with such agreement (whether arising pursuant to such agreement or otherwise available to the Contributor at law or in equity), including the rights of the
Contributor to enforce such agreement and to give or withhold any and all consents, requests, notices, directions, approvals, extensions, or waivers under or in connection therewith. 

  
 Such property described in the foregoing clauses (i) through (vii) shall be
referred to collectively herein as the “Receivable Assets” and shall be considered to be assets that have been contributed, transferred, assigned, set over and otherwise conveyed by the Contributor to the Company upon the delivery
to the Company and acceptance by the Company of the applicable Daily Report with respect to such Receivable Assets (which acceptance shall not require the Daily Report to be signed by or on behalf of the Company and which acceptance shall be deemed
to occur unless the Company communicates otherwise to the Contributor in writing within two (2) Business Days after the Company’s receipt of the Daily Report) (such date of acceptance hereinafter referred to as the “Contribution
Date”) without any further action by the Contributor or any other Person. 
  

	 	(b)	The Contributor and the Company hereby acknowledge and agree that it is their mutual intent that (a) every transfer by way of capital contribution of Receivable Assets to the
Company hereunder shall be an absolute, unconditional, “true” conveyance and not a mere granting of a security interest to secure a loan to or from the Company, (b) the Contributor shall not retain any interest in the Receivable Assets
after the contribution thereof hereunder and (c) the Receivables purchased from any Originator by the Contributor shall not be part of the Contributor’s insolvency or bankruptcy estate in the event an insolvency or delinquency proceeding or a
bankruptcy petition or other action shall be commenced or filed by or against the Contributor under any insolvency or bankruptcy law. In the event, however, that notwithstanding such intent and agreement, such transfers are deemed by any relevant
Governmental Authority for any reason whatsoever, whether for limited purposes or otherwise, to be a security interest granted to secure indebtedness of the Contributor, the Contributor shall be deemed to have granted to the Company a perfected
first priority security interest under Article 9 of the UCC in the applicable jurisdictions in all of its right, title and interest in, to and under, in each case, whether now owned or existing, or hereafter acquired or arising, and wherever
located, the Receivables contributed by the Contributor and the other Receivable Assets related to such Receivables, and this Agreement shall constitute a security agreement under applicable law, securing the repayment of the amounts paid hereunder,
subject to the other terms and conditions of this Agreement, together with such other obligations or interests as may arise hereunder in favor of the parties hereto. 

  

	 	(c)	 In connection with any transfer, assignment, conveyance and contribution pursuant to Section 2.1(a), the Contributor hereby agrees to record and file, or cause to
be recorded and filed, at its own expense, financing statements or other similar filings (and continuation statements with respect to such financing statements or other similar filings when applicable), (i) with respect to the Receivables and (ii)
with respect to any other Receivable Assets for which an assignment or the creation of a security interest (as 

  

 - 10 - 

	 	 
defined in the applicable UCC or other similar applicable laws, legislation or statute) may be perfected under the applicable UCC or other applicable laws,
legislation or statute by such filing, in each case meeting the requirements of applicable law in such manner and in such jurisdictions as are necessary to perfect and maintain the perfection of the transfer, assignment, conveyance and contribution
of such Receivables and any other Receivable Assets related to such Receivables to the Company, and to deliver to the Company on or before the Effective Date a file-stamped copy or certified statement of such financing statement (or the similar
filing) or other evidence of such filing. 

  

	 	(d)	In connection with the transfer, assignment, conveyance and contribution pursuant to Section 2.1(a), the Contributor agrees at its own expense, with respect to the Receivables, that
it will, as agent of the Company, (i) on the Effective Date and thereafter, indicate or cause to be indicated on the computer files and other physical records (but not including individual invoices or individual collection files) relating to such
Receivables (by means of a general legend that will automatically appear at or near the beginning of any screen, list or print-out of such Receivables) that all Receivables and all other Receivable Assets included in such screen, list or print-out
have been transferred, assigned, conveyed and contributed to the Company in accordance with this Agreement and (ii) acknowledge, deliver or transmit or cause to be delivered or transmitted to the Company and the Administrative Agent a Daily Report
containing at least the information specified in Schedule 2.1(d) hereto as to all such Receivables, as of the applicable date of contribution. The copy of the Daily Report delivered to the Administrative Agent pursuant to this subsection 2.1(d)
shall be signed by the Contributor. For the avoidance of doubt, the delivery of the signed Daily Report to the Administrative Agent shall not be a prerequisite to the contribution, transfer, assignment and conveyance of the Receivables from the
Contributor to the Company. 

  

	 	(e)	All contributions of Receivables by the Contributor hereunder shall be without recourse to, or any representation or warranty of any kind (express or implied) by, the Contributor
except as otherwise specifically provided herein. The foregoing contribution, assignment, transfer and conveyance does not constitute and is not intended to result in the creation or assumption by the Company of any obligation of the Contributor or
any other person in connection with the Receivables or any agreement or instrument relating thereto, including any obligation to any Obligor. 

  

	2.2	Contribution Value 

  
 The contribution value (the “Contribution Value”) for the Receivables and other Receivable Assets related to such Receivables
contributed, transferred, assigned and conveyed to the Company pursuant to Section 2.1(a) shall be the aggregate value in Dollars, of such Receivables. The Company shall maintain in its books and records a ledger entitled the “distributable
assets ledger”. On the occasion of each contribution, transfer, assignment and conveyance pursuant to Section 2.1(a), the Company shall credit to the distributable assets ledger an amount equal to the Contribution Value of the Receivables and
other Receivable Assets contributed, transferred, assigned and conveyed by the Contributor on the related Contribution Date (net of the deductions referred to in Section 2.5 and Section 2.6). 
  

	2.3	[Reserved] 

  

 - 11 - 

	2.4	No Repurchase 

  
 Subject to Section 2.6, the Contributor shall not have any right or obligation under this Agreement, by implication or otherwise, to repurchase from the
Company any Receivables or other Receivable Assets related to such Receivables or to rescind or otherwise retroactively effect any purchase of any such Receivables or Receivable Assets related to such Receivables after the Contribution Date relating
thereto; provided that the foregoing shall not be interpreted to limit the right of the Company to receive an Adjustment Payment or Indemnification Payment. 
  

	2.5	Rebates, Adjustments, Returns, Reductions and Modifications 

  
 From time to time, the Contributor may make a Dilution Adjustment to a Receivable in accordance with this Section 2.5 and Section 6.2; provided
that if the Contributor cancels an invoice related to such Receivable, the Contributor must make or cause to be made a payment (a “Dilution Adjustment Payment”) in the same currency as such cancelled Receivable in an amount equal to
the full unpaid amount of such cancelled invoice pursuant to this Section 2.5. The Contributor agrees to pay any necessary Dilution Adjustment Payments no later than on the Contribution Date on or immediately succeeding the date any Dilution
Adjustment is granted or made. The amount of any Dilution Adjustment shall be set forth on the first Daily Report prepared after the date on which such Dilution Adjustment is granted or made. 
  

	2.6	Payments in Respect of Ineligible Receivables, Indemnification Payments and Clean-Up Call 

  

	 	(a)	In the event of there being a breach of any of the representations, warranties or covenants, as applicable, contained in Section 4.2(a), 4.2(b), 4.2(c), 4.2(d), 4.2(f), 4.2(h),
5.2(b), 5.2(c), 6.1, 6.2, 6.3, 6.5, 6.8, or 6.9 in respect of any Receivable contributed hereunder or if the Company’s interest in any Receivable is not a full legal and beneficial ownership, the Contributor shall as promptly as reasonably
practicable, but in any event, within thirty (30) days after receipt of written notice of such breach or defect from the Company, remedy the matter giving rise to such breach of representation or warranty if such matter is capable of being remedied.
If such matter is not capable of being remedied or is not so remedied within said period of thirty (30) days, the Contributor shall make a payment to the Company in an amount (without duplication of any Dilution Adjustment Payments made pursuant to
Section 2.5 or any other Adjustment Payments made pursuant to this Section 2.6), equal to the Purchase Price of such Receivable less Collections received by the Company in respect of such Receivable (the “Adjustment Payment”) in the
same currency as such Receivable. Upon the payment of an Adjustment Payment hereunder, the Company shall automatically agree to pay to the Contributor all Collections received subsequent to such payment with respect to such Receivable. The parties
agree that the Contributor’s obligation to pay the Adjustment Payment under this Section 2.6(a) is a reasonable pre-estimate of loss and not a penalty (and neither the Company nor any other person or entity having an interest in this Agreement
through the Company shall be entitled to any other remedies as a consequence of any such breach). 

  

	 	(b)	 In addition to its obligations under Section 8.2, the Contributor agrees to pay, indemnify and hold harmless (without duplication of any Dilution Adjustment
Payments made pursuant to Section 2.5 or of any Adjustment Payments made pursuant to Section 2.6(a)) the Company from any loss, liability, expense, damage or injury that may at any time be imposed on, incurred by or asserted against the Company in
any way relating to or arising out of (i) any Receivable becoming subject to any defense, dispute, offset or counterclaim of any kind (other than as expressly permitted by this Agreement) or (ii) the Contributor breaching any covenant contained
herein with respect to any Receivable (each of the foregoing events or circumstances being an “Indemnification Event”) and such 

  

 - 12 - 

	 	 
Receivable (or a portion thereof) ceasing to be an Eligible Receivable on the date on which such Indemnification Event occurs. The amount of such
indemnification shall be equal to the Purchase Price of such Receivable less Collections received by the Company in respect of such Receivable (the “Indemnification Payment”). Such payment shall be made on or prior to the 10th
Business Day after the day the Company requests such payment or the Contributor obtains knowledge of the Indemnification Event, unless such Indemnification Event shall have been cured on or before such 10th Business Day; provided,
however, that in the event that a Termination Event with respect to the Contributor has occurred and is continuing, the Contributor shall make such payment immediately. The Company shall have no further remedy against the Contributor in
respect of such Indemnification Event unless the Contributor fails to make an Indemnification Payment on or prior to such 10th Business Day or on such earlier day in accordance with the proviso set forth in this Section 2.6(b). Upon receiving an
Indemnification Payment, the Company shall automatically agree to pay to the Contributor all Collections received subsequent to such payment with respect to the Receivable in respect of which an Indemnification Payment is made.

  

	 	(c)	In the event that the Receivables contributed by the Contributor hereunder aggregate less than 10% of the average Principal Amount of Receivables contributed by the Contributor over
the 12 month period ended 30 days prior to any date of determination, then the Contributor may make a payment to the Company in an amount (without duplication of any Dilution Adjustment Payments made pursuant to Section 2.5, any Adjustment Payments
made pursuant to Sections 2.6(a), or any Indemnification Payments made pursuant to Section 2.6(b)) equal to the Purchase Price of the Receivables less Collections with received by the Company in respect of the Receivables (the “Clean-Up
Payment”). Upon receiving a Clean-Up Payment, the Company shall automatically agree to pay to the Contributor all Collections received subsequent to such payment with respect to the Receivables in respect of which the Clean-Up Payment was
made. 

  

	2.7	Certain Charges 

  
 The Contributor and the Company hereby agree that late charge revenue, reversals of discounts, other fees and charges and other similar items, whenever
created, accrued in respect of Receivables shall be the property of the Company notwithstanding the occurrence of a Termination Event and all Collections with respect thereto shall continue to be allocated and treated as Collections in respect of
the Receivables transferred, conveyed, assigned and contributed to the Company pursuant to Section 2.1(a). 
  

	2.8	Certain Allocations 

  
 The Contributor and the Company hereby agree that if Collections can be attributed to a specific Obligor and a specific Receivable, then such Collection
shall be applied to pay such Receivable of such Obligor; provided, however, that if the Collections cannot be attributed to a specific Receivable, then such Collection shall be applied to pay the Receivables of such Obligor in the
order of maturity of such Receivables, beginning with the Receivable that has been outstanding the longest and ending with the Receivable that has been outstanding the shortest. 
  

	3.	CONDITIONS TO CONTRIBUTIONS 

  

	3.1	Conditions Precedent to the Company’s Acceptance of the Initial Contribution of Receivables on the Effective Date 

  

 - 13 - 

 The obligation of the Company to accept a contribution of Receivables and any other Receivable Assets
related to such Receivables on the Effective Date is subject to the satisfaction of the following conditions precedent that shall have been satisfied (or otherwise waived in writing by the Company) on or prior to the Effective Date: 
  

	 	(a)	the Company and the Administrative Agent shall have received copies of duly adopted resolutions (or, if applicable, a unanimous consent) of the Board of Directors of the
Contributor, as in effect on such Effective Date, authorizing the execution of this Agreement and the consummation of the Transactions pursuant to the Transaction Documents; 

  

	 	(b)	the Company and the Administrative Agent shall have received copies of a certificate of good standing for the Contributor issued by the Secretary of the State of Delaware;

  

	 	(c)	the Company and the Administrative Agent shall have received copies of a certificate of a Responsible Officer of the Contributor certifying (i) the names and signatures of the
managers authorized on its behalf to execute this Agreement and the other Transaction Documents to which it is a party and any other documents to be delivered by it hereunder or thereunder, (ii) that attached thereto is a true, correct, and complete
copy of the Contributor’s certificate of formation and limited liability company agreement, (iii) that attached thereto is a true correct and complete copy of the document referred to in clause (a) above and (iv) that attached thereto is a
true, correct and complete copy of the document referred to in clause (b) above; 

  

	 	(d)	the Company and the Administrative Agent shall have received copies of fully executed counterparts of this Agreement and each other Transaction Document; 

 

	 	(e)	the Company shall have received copies of legal opinions, in each case, dated the Effective Date and addressed to: 

  

	 	(i)	the Company, the CP Conduit Lenders and the Administrative Agent from Farella Braun & Martel LLP, special California counsel for the Contributor, in substantially the form
attached hereto as Schedule 3.1(e)(i); 

  

	 	(ii)	the Company, the CP Conduit Lenders and the Administrative Agent from Clifford Chance Rogers & Wells LLP, special New York counsel for the Contributor and the Company, in
substantially the form attached hereto as Schedule 3.1(e)(ii); 

  

	 	(iii)	the Company, the CP Conduit Lenders and the Administrative Agent from Richards, Layton & Finger LLP, special Delaware counsel for the Company and the Contributor, in
substantially the form attached hereto as Schedule 3.1(e)(iii); 

  

	 	(f)	 the Company shall have received a legal opinion, dated the Effective Date and addressed to the Company, the CP Conduit Lenders and the Administrative Agent from
Clifford Chance Rogers & Wells LLP, special New York counsel for the Contributor and the Company, in substantially the form attached hereto as Schedule 3.1(f), opining that, as a result of the transactions contemplated by this Agreement, (i) a
bankruptcy court would not hold that the contributed Receivables and/or Receivable Assets related to such Receivables would be the property of the Contributor’s or the applicable Originator’s bankruptcy estate under Section 541 of the
Bankruptcy Code and (ii) a bankruptcy court would hold that in the event of the commencement of a case under the Bankruptcy Code 

  

 - 14 - 

	 	 
by or against the Contributor, or upon the insolvency of the Contributor, the Company would not be consolidated with the Contributor;

  

	 	(g)	the Company shall have received, to the extent in writing, the Policies; 

  

	 	(h)	the Company and the Administrative Agent shall have received copies of proper financing statements (Form UCC-1), dated a date on or before the Effective Date, naming the Contributor
and the applicable Originator as the debtor in favor of, in each case, the Company as the secured party or other similar instruments or documents as may be necessary or in the reasonable opinion of the Company desirable under the UCC of all
appropriate jurisdictions to perfect the Company’s ownership interest in all Receivables and other Receivable Assets contributed hereunder; 

  

	 	(i)	the Company and each the Administrative Agent shall have received certified copies of requests for information or copies (or a similar search report certified by parties acceptable
to the Company) dated a date reasonably near the Effective Date listing all effective financing statements or charges that name the Contributor (under its present name and any previous name) as debtor and which are filed in jurisdictions in which
the filings were made pursuant to clause (h) above, together with copies of such financing statements; 

  

	 	(j)	the Company shall have received copies of a solvency certificate delivered by the Contributor with respect to the Contributor’s solvency in the form of Schedule 3.1(j) hereto;

  

	 	(k)	the Company shall have received the audited consolidated financial statements of the Contributor for the period ending and as at December 31, 1999; 

  

	 	(l)	the Company shall be satisfied that the Contributor’s systems, procedures and record keeping relating to the Receivables are sufficient and satisfactory in order to permit the
contribution, assignment, transfer and conveyance of such Receivables and the administration of such Receivables in accordance with the terms and intent of this Agreement; and 

  

	 	(m)	all conditions contained in the applicable Receivables Purchase Agreements shall have been satisfied. 

  

	3.2	Conditions Precedent to all Contributions of Receivables 

  
 The obligation of the Company to accept a contribution of Receivables and other Receivable Assets on each Contribution Date (including the Effective Date)
is subject to the satisfaction of the following conditions precedent, that, on and as of the related Contribution Date, the following statements shall be true (and the delivery by or on behalf of the Contributor of the Daily Report covering such
Receivable on such Contribution Date shall constitute a representation and warranty by the Contributor that on such Contribution Date the statements in clauses (a) and (b) below are true): 
  

	 	(a)	the representations and warranties of the Contributor contained in Section 4.1 shall be true and correct on and as of such Contribution Date as though made on and as of such date,
except insofar as such representations and warranties are expressly made only as of another date (in which case they shall be true and correct as of such other date); 

  

 - 15 - 

	 	(b)	after giving effect to such contribution, no Termination Event or Potential Termination Event shall have occurred and be continuing; 

  

	 	(c)	the Contributor shall have delivered or transmitted to the Company, with respect to the Receivables, a Daily Report reasonably acceptable to the Company showing, as of such
Contribution Date, at least the information specified in Schedule 2.1(d) as to the Receivables to be contributed, assigned, transferred and conveyed on such Contribution Date; 

  

	 	(d)	since the Effective Date, there has been no change in the ability of the Contributor to implement its collection procedures or exercise its rights with respect to the Receivables
which would result in a material adverse change in the overall collectability of the Receivables taken as a whole; and 

  

	 	(e)	all conditions to purchase contained in the applicable Receivables Purchase Agreements shall have been satisfied; 

  
 provided, however, that the failure of the Contributor to
satisfy any of the foregoing conditions shall not prevent the Contributor from subsequently contributing Receivables purchased by it pursuant to a Receivables Purchase Agreement, upon satisfaction of all such conditions. 
  

	4.	REPRESENTATIONS AND WARRANTIES 

  

	4.1	Representations and Warranties of the Contributor 

  
 The Contributor represents and warrants to the Company as of the Effective Date that: 
  

	 	(a)	Organization; Powers 

  
 It (i) is duly organized, validly existing and in good standing under the laws of the State of Delaware, (ii) has all requisite company power and
authority to own its property and assets and to carry on its business as now conducted and as proposed to be conducted, (iii) is qualified to do business in, and is in good standing in, every jurisdiction where the nature of its business so
requires, except where the failure so to qualify could not reasonably be expected to result in a Material Adverse Effect with respect to it and (iv) has the company power and authority to execute, deliver and perform its obligations under this
Agreement and each of the other Transaction Documents to which it is a party and each other agreement or instrument contemplated hereby or thereby to which it is or will be a party. 
  

	 	(b)	Authorization 

  
 The execution, delivery and performance by the Contributor of each of the Transaction Documents to which it is a party and the performance of the
Transactions (i) have been duly authorized by all requisite company and, if applicable and required, member action, and (ii) will not (A) violate (1) any Requirement of Law applicable to it or (2) any provision of any Transaction Document or other
material Contractual Obligation applicable to it, (B) be in conflict with, result in a breach of or constitute (alone or with notice or lapse of time or both) a default under, or give rise to any right to accelerate or to require the prepayment,
repurchase or redemption of any obligation under any Transaction Document or any other material Contractual Obligation applicable to it except where any such conflict, violation, breach or default referred to in clause (A) or 

  

 - 16 - 

 
(B), individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect with respect to it or (C) result in the creation or
imposition of any Lien upon the Receivables (other than Permitted Liens). 
  

	 	(c)	Enforceability 

  
 This Agreement and each of the other Transaction Documents to which it is a party have been duly executed and delivered by the Contributor and constitutes
a legal, valid and binding obligation of the Contributor enforceable against the Contributor in accordance with its terms, subject (a) to applicable bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting the enforcement
of creditors’ rights generally, from time to time in effect and (b) to general principles of equity. 
  

	 	(d)	Governmental Approvals 

  
 No action, consent or approval of, registration or filing with or any other action by any Governmental Authority is or will be required in connection with
the execution and delivery of this Agreement or the consummation of the Transactions contemplated hereby, except for (i) the filing of UCC financing statements (or other similar filings) in any applicable jurisdictions necessary to perfect the
Company’s ownership interest in the Receivables pursuant to Section 3.1(h), (ii) such as have been made or obtained and are in full force and effect and (iii) such actions, consents, approvals and filings the failure of which to obtain or make
could not reasonably be expected to result in a Material Adverse Effect with respect to it. 
  

	 	(e)	Litigation; Compliance with Laws 

  

	 	(i)	There are no actions, suits or proceedings at law or in equity or by or before any Governmental Authority now pending or, to the knowledge of the Contributor, threatened against the
Contributor in respect of which there exists a reasonable possibility of an outcome that would result in a Material Adverse Effect with respect to it. 

  

	 	(ii)	It is not in default with respect to any judgment, writ, injunction, decree or order of any Governmental Authority, where such violation or default could reasonably be expected to
result in a Material Adverse Effect with respect to it. 

  

	 	(f)	Agreements 

  

	 	(i)	It is not a party to any agreement or instrument or subject to any company restriction that has resulted or could reasonably be expected to result in a Material Adverse Effect with
respect to it. 

  

	 	(ii)	It is not in default in any manner under any provision of any Contractual Obligation, where such default could reasonably be expected to result in a Material Adverse Effect with
respect to it. 

  

	 	(g)	Federal Reserve Regulations 

  
 It is not engaged principally, or as one of its important activities, in the business of extending credit for the purpose of buying or carrying Margin
Stock. 
  

 - 17 - 

	 	(h)	Investment Company Act 

  
 It is not an “investment company” as defined in, or subject to regulation under, the 1940 Act or any successor statute thereto. 
  

	 	(i)	Tax Returns 

  
 It has filed or caused to be filed all material tax returns and has paid or caused to be paid or made adequate provision for all taxes due and payable by it and all assessments received by it except to the extent that
nonpayment (i) is being contested in good faith or (ii) could not reasonably be expected to result in a Material Adverse Effect with respect to it. 
  

	 	(j)	Employee Benefit Plans 

  
 Except to the extent failure to comply could not reasonably be expected to result in a Material Adverse Effect with respect to it, it and its ERISA
Affiliates are in compliance in all material respects with the applicable provisions of ERISA and the Code and the regulations and published interpretations thereunder. No Reportable Event has occurred or is reasonably expected to occur that, when
taken together with all other such Reportable Events, could reasonably be expected to result in a Material Adverse Effect with respect to it. 
  

	 	(k)	Financial Disclosure 

  
 Except to the extent otherwise required by law, it will not prepare any financial statements that shall account for the transactions contemplated hereby,
nor will it in any other respect account for the transactions contemplated hereby, in a manner that is inconsistent with the Company’s ownership interest in the Receivables and Receivable Assets related to such Receivables. The Contributor
intends to treat the contribution and conveyance of the Receivables contributed hereunder to the Company as a contribution of such Receivables for all tax, accounting and regulatory purposes. 
  

	 	(l)	[Reserved] 

  

	 	(m)	[Reserved] 

  

	 	(n)	Chief Executive Office 

  
 The offices at which the Contributor keeps its records concerning the Receivables either (x) are located as set forth on Schedule 4.1(n)(i) hereto or (y)
are in locations as to which the Contributor has notified the Company of the location thereof in accordance with Section 5.6. The chief executive office of the Contributor is listed opposite its name on Schedule 4.1(n)(ii) and is the place where the
Contributor is “located” for the purposes of Section 9-103(3)(d) of the applicable UCC that governs the perfection of the ownership interest of the Company in the Receivables contributed hereunder, and there have been no other such
locations during the four months preceding the date of this Agreement. 
  

	 	(o)	Bulk Sales Act 

  
 No transaction contemplated hereby with respect to the Contributor requires compliance with, or will be subject to avoidance under, any bulk sales act or
similar law in the United States. 
  

 - 18 - 

	 	(p)	Names 

  
 The legal name of the Contributor is as set forth in this Agreement is set forth on Schedule 4.1(p). The Contributor does not have any trade names, fictitious names, assumed names or “doing business as”
names except as set forth on Schedule 4.1(p). 
  

	 	(q)	Solvency 

  
 No Insolvency Event with respect to the Contributor has occurred and the contribution, assignment, conveyance and transfer of the Receivables by the Contributor to the Company has not been made in contemplation of the
occurrence thereof. Both prior to and after giving effect to the transactions occurring on the Effective Date and after giving effect to each subsequent transaction contemplated hereunder, (i) the fair value of the assets of the Contributor, taken
individually at a fair valuation will exceed the debts and liabilities, subordinated, contingent or otherwise, of the Contributor; (ii) the present fair saleable value of the property of the Contributor, taken individually and not on a consolidated
basis, will be greater than the amount that will be required to pay the probable liability of the Contributor on its debts and other liabilities, subordinated, contingent or otherwise, as such debts and other liabilities become absolute and matured;
(iii) the Contributor will be able to pay its debts and liabilities, subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured; and (iv) the Contributor will not have unreasonably small capital with which to
conduct the business in which it is engaged as such business is now conducted and is proposed to be conducted. For all purposes of clauses (i) through (iv) above, the amount of contingent liabilities at any time shall be computed as the amount that,
in the light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability. The Contributor does not intend to incur debts beyond its ability to pay such
debts as they mature, taking into account the timing of and amounts of cash to be received by the Contributor and the timing of the amounts of cash to be payable on or in respect of its indebtedness. 
  

	 	(r)	No Termination Event 

  
 As of the Effective Date, no Termination Event or Potential Termination Event with respect to the Contributor has occurred and is continuing. 

 

	 	(s)	No Fraudulent Transfer 

  
 It is not entering into this Agreement with the actual or constructive intent to hinder, delay, or defraud its present or future creditors and is
receiving reasonably equivalent value and fair consideration for the Receivables being contributed hereunder. 
  

	 	(t)	Collection Procedures 

  
 It has in place its Policies and has not acted in contravention of any such Policies with respect to the Receivables in any material respect. 

 

	 	(u)	Lock-Box Accounts 

  
 Except to the extent otherwise permitted under the terms of the Transaction Documents, the Lock-Box Accounts are free and clear of any Liens. 

 
 The representations and warranties as of the date made set forth in this
Section 4.1 shall survive the transfer, assignment, conveyance and contribution of the Receivables and any other 

  

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Receivable Assets related to such Receivables to the Company. Upon discovery by a Responsible Officer of the Company or by a Responsible Officer of the
Contributor of a breach of any of the foregoing representations and warranties, the party discovering such breach shall give prompt written notice to the other parties hereto and the Administrative Agent. 
  

	4.2	Representations and Warranties of the Contributor Relating to the Receivables 

  

The Contributor hereby represents and warrants to the Company on each Contribution Date with respect to the Receivables being contributed, transferred,
assigned and conveyed to the Company as of such date: 
  

	 	(a)	Receivables Description 

  
 The Daily Report delivered or transmitted pursuant to Section 2.1(d) sets forth in all material respects an accurate and complete listing of all
Receivables (and any Receivable Assets related thereto), aggregated by Obligor, to be contributed, transferred, assigned and conveyed to the Company on such Contribution Date and the information contained therein in accordance with Schedule 2.1(d)
with respect to each such Receivable is true and correct in all material respects as of such date. 
  

	 	(b)	No Liens 

  
 Each Receivable existing on the Effective Date or, in the case of Receivables contributed, transferred, assigned and conveyed to the Company after the Effective Date, on the date that each such Receivable shall have
been contributed, transferred, assigned and conveyed to the Company, has been contributed, transferred, assigned and conveyed to the Company free and clear of any Liens, except for Permitted Liens. 
  

	 	(c)	Eligible Receivable 

  
 Each such Receivable that is represented to be an Eligible Receivable in the Daily Report delivered on the relevant Contribution Date is an Eligible
Receivable on such Contribution Date. 
  

	 	(d)	Filings 

  
 (i) All filings and other acts necessary or advisable under the UCC or under other applicable laws of jurisdictions outside the United States (to the extent applicable and required by the relevant Receivables Purchase
Agreement, including, if applicable, notifying related Obligors of the assignment of a Receivable) shall have been made or performed in order to grant the Company on the applicable Contribution Date a full legal and beneficial ownership interest in
respect of such Receivables (or, in the case of Receivables purchased by the Contributor pursuant to the U.K. Receivables Purchase Agreement, full and unencumbered title thereto in equity) then existing or thereafter arising free and clear of any
Liens, except for Permitted Liens and (ii) no effective financing statement or other instrument similar in effect covering any Receivable, any interest therein, or any Related Property with respect thereto is on file in any recording office except
such as may be filed in favor of the Company pursuant to this Agreement or in favor of the Administrative Agent pursuant to the Asset Backed Loan Agreement. 
  

 - 20 - 

	 	(e)	Policies 

  
 Since the Effective Date, there have been no material changes in the Policies, other than as permitted hereunder. 
  

	 	(f)	True Contribution 

  
 Title to each Receivable contributed, assigned, conveyed and transferred hereunder will be vested in the Company as described in clauses (b) and (d)
above, and such Receivables will not form part of the estate of the Contributor upon a bankruptcy of the Contributor. 
  

	 	(g)	No Material Adverse Change 

  
 Since the Effective Date, no material adverse changes has occurred with respect to the business, operations, property or condition (financial or
otherwise) of the Contributor; provided that, for the avoidance of doubt, it shall not be considered a material adverse change if the performance of the Receivables owned by the Company deteriorates (other than as a result of the
actions and/or omissions of the Contributor or its Affiliates, including a relaxation of the Policies) but such deterioration does not result in a Termination Event. 
  

	 	(h)	No Fraudulent Transfer 

  
 No transfer of any Receivables or any Related Property to the Company by the Contributor constitutes a fraudulent transfer or fraudulent conveyance or is
otherwise void or voidable under similar laws or principles, the doctrine of equitable subordination or for any other reason. The transfer of Receivables to the Company by the Contributor is not made with the actual or constructive intent to hinder,
delay or defraud its present or future creditors and the Contributor is receiving reasonably equivalent value and fair consideration for the Receivables being contributed hereunder. 
  
 The representations and warranties as of the date made set forth in this Section 4.2 shall survive the contribution,
transfer, assignment and conveyance of the Receivables and other Receivable Assets to the Company. Upon discovery by a Responsible Officer of the Company or a Responsible Officer of the Contributor of a breach of any of the representations and
warranties (or of any Receivable encompassed by the representation and warranty in Section 4.2(c) not being an Eligible Receivable as of the relevant Contribution Date), the party discovering such breach shall give prompt written notice to the other
parties hereto and the Administrative Agent. 
  

	4.3	Representations and Warranties of the Company 

  
 The Company represents and warrants as to itself as follows: 
  

	 	(a)	Organization; Powers 

  
 The Company (i) is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware, (ii) has all
requisite company power and authority to own its property and assets and to carry on its business as now conducted and as proposed to be conducted, (iii) is qualified to do business in, and is in good standing in, each jurisdiction where the nature
of its business so requires, and (iv) has the company power and authority to execute, deliver and perform its obligations under this Agreement and each of the other Transaction Documents to which it is a party and each other agreement or instrument
contemplated hereby or thereby to which it is or will be a party. 
  

 - 21 - 

	 	(b)	Authorization 

  
 The execution, delivery and performance by the Company of each of the Transaction Documents to which it is a party and the performance of the Transactions
(i) have been duly authorized by all requisite company and, if applicable and required, member action; and (ii) will not (A) violate (1) any Requirement of Law or (2) any provision of any Transaction Document or any other material Contractual
Obligation, (B) be in conflict with, result in a breach of or constitute (alone or with notice or lapse of time or both) a default under, or give rise to any right to accelerate or to require the prepayment, repurchase or redemption of any
obligation under any Transaction Document or any other material Contractual Obligation, except where any such conflict, violation, breach or default referred to in clauses (A) or (B), individually or in the aggregate, could not reasonably be
expected to have a Material Adverse Effect with respect to it or (C) result in the creation or imposition of any Lien upon the Receivables other than as contemplated by the Transaction Documents. 
  

	 	(c)	Enforceability 

  
 This Agreement and each other Transaction Document to which it is a party have been duly executed and delivered by the Company and constitutes, a legal,
valid and binding obligation of the Company enforceable against the Company in accordance with its respective terms, subject (a) to applicable bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting the enforcement of
creditors’ rights generally, from time to time in effect and (b) to general principles of equity. 
  

	 	(d)	Accounting Treatment 

  
 Except to the extent otherwise required by law, the Company will not prepare any financial statements that shall account for the transactions contemplated
hereby, nor will it in any other respect account for the transactions contemplated hereby, in a manner that is inconsistent with the Company’s ownership interest in the Receivables. 
  

	 	(e)	Contributors 

  
 The Contributor is admitted as a member of the Company, and the Contributor’s Interest in the Company is owned free and clear of all Liens, other
than any Liens in favor of the Company arising under the Limited Liability Company Agreement. 
  

	5.	AFFIRMATIVE COVENANTS 

  
 The Contributor hereby agrees that, so long as there are any amounts outstanding with respect to Receivables or until a Termination Event, whichever is
later, the Contributor shall: 
  

	5.1	Financial Statements, Reports, etc. 

  
 Furnish to the Company and the Administrative Agent: 
  

	 	(a)	 within 150 days after the end of each fiscal year, the balance sheet and related statements of income, members’ interests and cash flows showing the financial
condition of the Contributor as of the close of such fiscal year and the results of its operations during such year, all audited by the Contributor’s Independent Public Accountants and accompanied by an opinion of such accountants (which shall
not be qualified in any material respect) 

  

 - 22 - 

	 	 
to the effect that such financial statements fairly present in all material respects the financial condition and results of operations of the Contributor in
accordance with GAAP consistently applied; 

  

	 	(b)	within 60 days after the end of each fiscal quarter of each fiscal year, the Contributor’s unaudited consolidated balance sheet and related statements of income, members’
interests and cash flows for the period from the beginning of such fiscal year to the end of such quarter, all certified by a Responsible Officer of the Contributor; 

  

	 	(c)	together with the financial statements required pursuant to clauses (a) and (b) above, a compliance certificate signed by a Responsible Officer of the Company stating that the
attached financial statements have been prepared in accordance with GAAP and accurately reflect the financial condition of the Contributor; 

  

	 	(d)	after completion of an initial public offering with respect to the Contributor, if any, promptly upon the furnishing thereof to the members of the Contributor, copies of all
financial statements, financial reports and proxy statements so furnished; 

  

	 	(e)	promptly, all information, documents, records, reports, certificates, opinions and notices received by the Contributor from an Originator under any Receivables Purchase Agreement;

  

	 	(f)	promptly, from time to time, such historical information, including aging and liquidation schedules, in form and substance satisfactory to the Company, as the Company may reasonably
request; and 

  

	 	(g)	promptly, from time to time, such other information regarding the operations, business affairs and financial condition of the Contributor, or compliance with the terms of any
Transaction Document, in each case as the Company may reasonably request. 

  

	5.2	Compliance with Law and Policies 

  

	 	(a)	Comply with all Requirements of Law and Contractual Obligations to which it is subject and which are applicable to it except to the extent that non-compliance would not reasonably
be likely to result in a Material Adverse Effect with respect to it. 

  

	 	(b)	Perform its obligations in accordance with the Policies, as amended from time to time in accordance with the Transaction Documents, in regard to any Receivable and any other
Receivable Assets related to such Receivable, except to the extent that non-compliance would not reasonably be likely to have a Material Adverse Effect on the collectability of such Receivable. 

  

	 	(c)	Comply with all Requirements of Law and obligations under any Contract with respect to any Receivable except to the extent that non-compliance would not reasonably be likely to have
a Material Adverse Effect on the collectability of such Receivable. 

  

	5.3	Preservation of Company Existence 

  

	 	(a)	Preserve and maintain its company existence, rights and privileges, if any, in the jurisdiction of its organization; and 

  

	 	(b)	 Qualify and remain qualified in good standing as a foreign company in each jurisdiction where the nature of its business so requires, except where the failure so to
qualify would 

  

 - 23 - 

	 	 
not, individually or in the aggregate with other such failures, have a Material Adverse Effect with respect to it. 

  

	5.4	Separate Company Existence 

  

	 	(a)	Except as set forth in the Transaction Documents, maintain its deposit account or accounts, separate from those of the Company and ensure that its funds will not be diverted to the
Company, nor will such funds be commingled with the funds of the Company; 

  

	 	(b)	To the extent that it shares any officers or other employees with the Company, the salaries of and the expenses related to providing benefits to such officers and other employees
shall be fairly allocated among it and the Company, and it and the Company shall bear their fair shares of the salary and benefit costs associated with all such common officers and employees; 

  

	 	(c)	To the extent that it jointly contracts with the Company to do business with vendors or service providers or to share overhead expenses, the costs incurred in so doing shall be
allocated fairly between it and the Company and it and the Company shall bear their fair shares of such costs. To the extent that it contracts or does business with vendors or service providers where the goods and services provided are partially for
the benefit of the Company, the costs incurred in so doing shall be fairly allocated between it and the Company in proportion to the benefit of the goods or services each is provided, and it and the Company shall bear their fair shares of such
costs. All material transactions between it and the Company, whether currently existing or hereafter entered into, shall be only on an arm’s length basis; 

  

	 	(d)	Maintain office space separate from the office space of the Company (but which may be located at the same address as the Company). To the extent that it and the Company have offices
in the same location, there shall be a fair and appropriate allocation of overhead costs between them, and each shall bear its fair share of such expenses; 

  

	 	(e)	Issue financial statements separate from any financial statements issued by the Company; 

  

	 	(f)	Conduct its affairs strictly in accordance with its organizational documents and observe all necessary, appropriate and customary company formalities, including, but not limited to,
holding regular and special members’ and directors’ meetings appropriate to authorize all company action, keeping separate minutes of its meetings, passing all resolutions or consents necessary to authorize actions taken or to be taken,
and maintaining separate books, records and accounts, including, but not limited to, payroll and intercompany transaction accounts; 

  

	 	(g)	Except as set forth in the Transaction Documents, not assume or guarantee any of the liabilities of the Company; and 

  

	 	(h)	Take, or refrain from taking, as the case may be, all other actions that are necessary to be taken or not to be taken in order (x) to ensure that the assumptions and factual
recitations set forth in the Specified Bankruptcy Opinion Provisions remain true and correct with respect to it (and, to the extent within its control, to ensure that the assumptions and factual recitations set forth in the Specified Bankruptcy
Opinion Provisions remain true and correct with respect to the Company) and (y) to comply with those procedures described in such provisions that are applicable to it. 

  

 - 24 - 

	5.5	Inspection of Property; Books and Records; Discussions 

  
 Keep proper books of records and accounts in which entries in conformity with GAAP shall be made of all dealings and transactions in relation to its
business and activities; and permit representatives of the Company upon reasonable advance notice to visit and inspect any of its properties and examine and make abstracts from any of its books and records during normal business hours on any Local
Business Day and as often as may reasonably be requested, subject to the Contributor’s security and confidentiality requirements and to discuss the business, operations, properties and financial condition of the Contributor with officers and
employees of the Contributor and with its Independent Public Accountants. 
  

	5.6	Location of Records 

  
 Keep its chief executive office, and the offices where it keeps the records concerning the Receivables and the other Receivable Assets (and all original
documents relating thereto), at the locations referred to for it on Schedule 4.1(n)(i) and Schedule 4.1(n)(ii) hereto or upon 60 days’ prior written notice to the Company and the Administrative Agent, at such other locations in a jurisdiction
where all action required by Section 5.13 shall have been taken and completed and be in full force and effect. 
  

	5.7	[Reserved] 

  

	5.8	Obligations 

  
 Defend the right, title and interest of the Company in, to and under the Receivables and any other Receivable Assets related to such Receivables, whether now existing or hereafter created, against all claims of third
parties claiming through the Contributor. The Contributor will duly fulfill all obligations on its part to be fulfilled under or in connection with each Receivable and will do nothing to materially impair the rights of the Company in such
Receivable. 
  

	5.9	Collections 

  
 Comply in all material respects with procedures with respect to Collections reasonably specified from time to time by the Company. In the event that any payments in respect of any such Receivables are made directly to
the Contributor (including, without limitation, any employees thereof or independent contractors employed thereby), the Contributor shall within one (1) Business Day of receipt thereof, deliver or deposit such amounts to the applicable Lock-Box
Account and, prior to forwarding such amounts, the Contributor shall hold such payments in trust for the account and benefit of the Company and the Administrative Agent. During the Atlas Transition Period, the Contributor shall cause Atlas to
forward any payments received with respect to the Atlas Receivables to the applicable Lock-Box Account within two (2) Business Days of Atlas’s receipt thereof. 
  

	5.10	Furnishing Copies, Etc. 

  
 Furnish to the Company and the Administrative Agent (subject to Section 8.13 hereof): 
  

	 	(a)	within five (5) Business Days of the Company’s request, a certificate of a Responsible Officer of the Contributor, certifying, as of the date thereof, to the knowledge of such
officer, that no Termination Event has occurred and is continuing or if one has so occurred, specifying the nature and extent thereof and any corrective action taken or proposed to be taken with respect thereto; 

  

 - 25 - 

	 	(b)	promptly after a Responsible Officer of the Contributor obtains knowledge of the occurrence of any Termination Event or Potential Termination Event, written notice thereof; and

  

	 	(c)	promptly following request therefor, such other information, documents, records or reports regarding or with respect to Receivables, as the Company may from time to time reasonably
request. 

  

	5.11	[Reserved] 

  

	5.12	Assessments 

  
 Pay before the same become delinquent and discharge all taxes, assessments, levies and other governmental charges imposed on it except such taxes, assessments, levies and governmental charges which are being contested
in good faith and for which the Contributor has set aside adequate reserves in accordance with GAAP. 
  

	5.13	Purchase of Receivables 

  
 Purchase Receivables solely in accordance with the Receivables Purchase Agreements. 
  

	5.14	Notices 

  
 Promptly give written notice to the Company and the Administrative Agent of the occurrence of any Liens on Receivables (other than Permitted Liens). 
  

	5.15	Bankruptcy 

  
 Cooperate with the Company in making any amendments to the Transaction Documents to which it is a party and take, or refrain from taking, as the case may be, all other actions deemed reasonably necessary by the
Company in order to comply with the structured finance statutory exemption set forth in legislative amendments to the U.S. Bankruptcy Code at or any time after such amendments are enacted into law; provided, however, that it shall not be
required to make any amendment or to take, or omit from taking, as the case may be, any action that it reasonably believes would have the effect of materially changing the economic substance of the transaction contemplated by the Transaction
Documents on the Effective Date. 
  

	5.16	Further Action 

  
 In addition to the foregoing: 
  

	 	(a)	 The Contributor agrees that from time to time, at its expense, it will promptly execute and deliver all further instruments and documents, and take all further
action (including notifying the related Obligors to the extent necessary to perfect the ownership interest of the Company in the Receivables) that may be necessary in the Contributor’s reasonable judgment or that the Company may reasonably
request, in order to protect the Company’s right, title and interest in and to the Receivables, or to enable the Company to exercise or enforce any of its rights in respect thereof. Without limiting the generality of the foregoing, the
Contributor will upon the request of the Company (i) execute and file such financing or continuation statements, or amendments thereto, and such other instruments or notices, as may be necessary or, in the opinion of the Company, advisable to
protect the Company’s ownership interest in the Receivables and (ii) obtain the agreement of any Person having a Lien on any Receivables owned by the Contributor (other than any 

  

 - 26 - 

	 	 
Permitted Lien) to release such Lien upon the contribution, assignment, transfer and conveyance of any such Receivables to the Company.

  

	 	(b)	Until the termination of this Agreement, the Contributor hereby irrevocably authorizes the Company to file one or more financing or continuation statements (and other similar
instruments), and amendments thereto, relative to all or any part of the Receivables and the other Receivable Assets contributed, assigned, conveyed or transferred or to be contributed, assigned, conveyed or transferred by the Contributor hereunder
without the signature of the Contributor to the extent permitted by applicable law. 

  

	 	(c)	If the Contributor fails to perform any of its agreements or obligations under this Agreement, following notice to the Contributor detailing such delinquency, the Company may (but
shall not be required to) perform, or cause the performance of, such agreements or obligations, and the expenses of the Company incurred in connection therewith shall be payable by the Contributor as provided in Section 8.2. The Company agrees
promptly to notify the Contributor after any such performance; provided, however, that the failure to give such notice shall not affect the validity of any such performance. 

  

	6.	NEGATIVE COVENANTS 

  
 Except as otherwise provided in Section 6.11, the Contributor hereby agrees that, so long as there are any amounts outstanding with respect to Receivables
contributed, assigned, conveyed or transferred by the Contributor to the Company or until a Termination Event, whichever is the later, the Contributor shall not: 
  

	6.1	Limitations on Transfers of Receivables, Etc. 

  
 At any time attempt to re-contribute, re-convey, re-assign, re-transfer or otherwise purport to dispose of any of the Receivables or other Receivable
Assets except as contemplated by the Transaction Documents. 
  

	6.2	Extension or Amendment of Receivables 

  
 Whether acting as Collection Agent or otherwise, extend, make any Dilution Adjustment to, rescind, cancel, amend or otherwise modify, or attempt or
purport to extend, amend or otherwise modify, the terms of any Receivables, unless (a) (i) such cancellation, termination, amendment, modification, or waiver is made in accordance with the servicing standards set forth in Section 6 of the Asset
Backed Loan Agreement (and would have been made in the ordinary course of business), (ii) such cancellation, termination, amendment, modification or waiver arose as a result of a request from an Obligor, (iii) any such amendment, modification or
waiver does not cause such Receivable to cease to be an Eligible Receivable and (iv) such cancellation, termination, amendment, modification or waiver would not have a material and prejudicial effect on the collectability of the relevant Receivable
or (b) such Dilution Adjustment is the result of a pre-existing contractual obligation between the Originator and the Obligor with respect to such Receivable; provided, that in the event an Originator cancels an invoice related to a
Receivable, the Contributor must make a Dilution Adjustment Payment pursuant to Section 2.5. 
  

	6.3	Change in Payment Instructions to Obligors 

  
 Instruct, or permit any Originator to instruct, any Obligor of any Receivables to make any payments with respect to any Receivables other than in
accordance with the Transaction Documents. 
  

 - 27 - 

	6.4	Change in Name 

  
 Change its name, use an additional name, change its identity or limited liability company structure or change its chief executive officer unless at least
60 days prior to the effective date of any such change it delivers to the Company and the Administrative Agent such documents, instruments or agreements as are necessary to reflect such change and to continue the perfection of the Company’s
ownership interest in the Receivables. 
  

	6.5	Policies 

  
 Make any change or modification (or permit any change or modification to be made) in the Policies with respect to any Receivable, except if such changes or modifications are necessary under any Requirement of Law or
except to the extent that such change or modification would not have a Material Adverse Effect on the collectability of such Receivable. 
  

	6.6	Modification of Legend 

  
 Delete or otherwise modify the marking on the legend referred to in Section 2.1(d). 
  

	6.7	Accounting for Contributions 

  
 Except as otherwise required by law, prepare any financial statements that shall account for the transactions contemplated hereby in any manner other than
as a contribution of the Receivables to the Company or in any other respect account for or treat the transactions contemplated hereby (including for financial accounting purposes, except as necessary under any Requirement of Law) in any manner other
than as contribution of the Receivables to the Company. 
  

	6.8	Instruments 

  
 Take any action to cause any Receivable not evidenced by an “instrument” (as defined in Section 9-105(1)(i) of the applicable UCC) upon origination to become evidenced by an instrument, except in connection
with the enforcement or collection of a Defaulted Receivable. 
  

	6.9	Ineligible Receivables 

  
 Without the prior written approval of the Company, take any action which to its knowledge would cause, or would permit, a Receivable that was designated
as an Eligible Receivable on the Contribution Date relating to such Receivable to cease to be an Eligible Receivable, except as otherwise expressly provided by this Agreement. 
  

	6.10	Business of the Contributor 

  
 Fail to maintain and operate the business currently conducted by the Contributor and business activities reasonably incidental or related thereto in
substantially the manner in which it is presently conducted and operated if such failure would reasonably be expected to result in a Material Adverse Effect with respect to it. 
  

	6.11	Limitation on Fundamental Changes 

  
 Enter into any merger or consolidate with another Person or sell, lease, transfer or otherwise dispose of assets constituting all or substantially all of
the assets of the Contributor and its consolidated Subsidiaries (taken as a whole) to another Person or to the fullest extent permitted by law liquidate or dissolve unless: 
  

	 	(a)	the Contributor is the surviving entity; 

  

 - 28 - 

	 	(b)	subject to Section 8.13, it has delivered to the Company a certificate executed by a Responsible Officer of the Contributor addressed to the Company and the Administrative Agent (i)
stating that such consolidation, merger, conveyance or transfer complies with this Section 6.11 and (ii) further stating that all conditions precedent herein provided for relating to such transaction have been complied with;

  

	 	(c)	it has delivered to the Company and the Administrative Agent an Opinion of Counsel from a nationally recognized legal counsel to the effect that the contribution of Receivables to
the Company by such Surviving Person, after the date of such merger, consolidation, sale, lease, transfer or disposal of assets, shall be treated as a “true contribution” or “true sale” of any such Receivables; and

  

	 	(d)	it has delivered to the Company and the Administrative Agent a General Opinion. 

  

	6.12	Offices 

  
 Move the location of the Contributor’s chief executive office or of any of the offices where it keeps its records with respect to the Receivables, or its legal head office to a new location within or outside the
jurisdiction where such office is now located, without (i) providing sixty (60) days’ prior written notice to the Company and the Administrative Agent and (ii) taking all actions reasonably requested by the Company or the Administrative Agent
(including all filings and other acts necessary or advisable under the applicable UCC or other applicable laws or similar statute of each relevant jurisdiction) in order to continue the Company’s first priority perfected ownership interest in
all Receivables now owned or hereafter created. 
  

	6.13	Charter 

  
 Amend or make any change or modification to its constitutive documents without first obtaining the consent of the Company and the Administrative Agent; provided that, notwithstanding anything to the contrary in
this Section 6.13, the Contributor may make amendments, changes or modifications pursuant to changes in law of the jurisdiction of its incorporation or amendments to change the Contributor’s name (subject to compliance with Section 6.04 above),
registered agent or address of registered office. 
  

	6.14	Amendment of Transaction Documents or Other Material Documents 

  
 Other than as set forth in the Transaction Documents, amend any Transaction Document or other material document related to any transactions contemplated
hereby or thereby. 
  

	6.15	Additional Shares in the Company 

  
 Permit the Company to issue or sell any additional ordinary shares of the Company prior to the date on which all amounts outstanding under the Asset
Backed Loan Agreement have been paid in full. 
  

 - 29 - 

	7.	TERMINATION 

  

	7.1	Termination Events 

  
 Any of the following events shall have occurred and be continuing with respect to the Contributor: 
  

	 	(a)	the Contributor shall fail to pay any amount due hereunder in accordance with the provisions hereof and such failure shall continue unremedied for a period of two (2) consecutive
Local Business Days from the earlier to occur of (i) the date upon which a Responsible Officer of the Contributor obtains actual knowledge of such failure or (ii) the date on which written notice of such failure, requiring the same to be remedied,
shall have been given to the Contributor by the Company, provided that if the failure to make any payment or deposit is caused solely by the failure of the banking money transmission system through which a payment or deposit was effected,
such failure shall continue unremedied for a period five (5) days from the earlier to occur of (i) or (ii) above; or 

  

	 	(b)	the Contributor shall fail to observe or perform any covenant contained in Section 5.10(b), 6.1, 6.3, 6.4, 6.10, or 6.11 and such failure shall continue unremedied for a period of
two (2) consecutive Local Business Days after the earlier to occur of (i) the date upon which a Responsible Officer of the Contributor obtains actual knowledge of such failure or (ii) the date on which written notice of such failure, requiring the
same to be remedied, shall have been given to the Contributor by the Company; or 

  

	 	(c)	the Contributor shall fail to observe or perform any other covenant or agreement applicable to it contained herein (other than as specified in paragraph (a) or (b) of this Section
7.1) that has a Material Adverse Effect with respect to it and that continues unremedied until thirty (30) days after the earlier to occur of (i) the date upon which a Responsible Officer of the Contributor obtains actual knowledge of such failure
or (ii) the date on which written notice of such failure, requiring the same to be remedied shall have been given to the Contributor by the Company; or 

  

	 	(d)	any representation or warranty made by the Contributor in this Agreement or in any certificate delivered pursuant to this Agreement shall prove to have been incorrect in any
material respect when made or deemed made, and which continues unremedied until thirty (30) days after the date on which written notice thereof, requiring the same to be remedied, shall have been given to the Contributor by the Company,
provided that if such incorrectness may be cured and the Contributor is diligently pursuing such cure, such event shall not constitute a Termination Event for an additional thirty (30) days, and provided further that a
Termination Event shall not be deemed to have occurred under this paragraph (d) based upon a breach of any representation, warranty or covenant specified in Section 2.6 if the Contributor shall have complied with the provisions of Section 2.6 in
respect thereof; 

  

	 	(e)	the Contributor has been terminated as Collection Agent, and not replaced as Collection Agent by an affiliate of the Contributor, following a Collection Agent Default under the
Asset Backed Loan Agreement; 

  

	 	(f)	an Insolvency Event shall have occurred with respect to the Contributor; 

  

	 	(g)	a notice of Lien shall have been filed by the PBGC against the Contributor under Section 412(n) of the Code or Section 302(f) of ERISA for a failure to make a required installment
or other payment to a plan to which Section 412(n) of the Code or Section 302(f) of ERISA applies unless there shall have been delivered to the Company proof of release of such Lien within fifteen (15) days of such filing; 

 

	 	(h)	 a Federal (or equivalent) tax notice of Lien, in an amount equal to or greater than $[50,000], shall have been filed against the Contributor unless there shall have
been 

  

 - 30 - 

	 	 
delivered to the Company proof of release of such Lien within thirty (30) days of such filing; 

  

	 	(i)	failure of the Contributor to pay when due any amounts due under any agreement to which the Contributor is a party and under which any Indebtedness greater than $5,000,000 is
governed, the effect of which default is to cause, or to permit the holder or holders of such Indebtedness (or trustee or agent on behalf of such holder or holders) to cause, such Indebtedness to become due prior to its stated maturity; or any
Indebtedness owing by the Contributor greater than $5,000,000 shall be declared to be due and payable or required to be prepaid (other than by a regularly scheduled payment) prior to the date of maturity thereof; 

  

	 	(j)	an Acceleration Notice is delivered under Clause 9.2 of the Credit Agreement; or 

  

	 	(k)	a Loan Termination Date shall have occurred; 

  
 then upon notice thereof by the Company or the Administrative Agent (acting at the written direction of each CP Conduit Lender) (such event, upon such
notice, a “Termination Event”), so long as such Termination Event shall be continuing, the Company may declare that a Termination Date has occurred; provided, however, that in the case of a Termination Event referred
to in subsection (f), (g) or (h) above the Termination Date shall be deemed to automatically have occurred upon the occurrence of such event. On and after the Termination Date, the obligation (and the option) of the Company to accept a contribution
of Receivables from the Contributor shall thereupon automatically terminate without further notice of any kind, which is hereby waived by the Contributor. 
  

	7.2	[Reserved] 

  

	7.3	Remedies 

  

	 	(a)	If a Termination Date has occurred and is continuing, the Company shall have all of the rights and remedies provided to an owner of accounts under applicable law in respect thereto.

  

	 	(b)	The Contributor agrees that, upon the occurrence of a Termination Date and during the continuation of the related Termination Event(s): 

  

	 	(i)	the Company shall have the right at any time to notify, or require that the Contributor, at its expense notify, the respective Obligors of the Company’s ownership of the
Receivables and any other Receivable Assets related to such Receivables and may direct that payment of all amounts due or to become due under the Receivables be made directly to the accounts designated by the Company or its assignees;

  

	 	(ii)	the Company shall have the right to (A) sue for collection on any Receivables or (B) sell any Receivables to any Person for a price that is acceptable to the Company. If required by
the terms of the applicable UCC (or analogous provisions of any other similar law, statute or legislation applicable to the Receivables), the Company may offer to sell any Receivable to any Person, together, at its option, with all other Receivables
created by the same Obligor. Any Receivable sold hereunder shall cease to be a Receivable for all purposes under this Agreement as of the effective date of such sale; 

  

 - 31 - 

	 	(iii)	the Contributor shall, upon the Company’s written request and at the Contributor’s expense, (A) assemble or cause to be assembled all documents, instruments and other
records (including credit files and computer tapes or disks) that (1) evidence or will evidence or record Receivables and (2) are otherwise necessary or desirable to effect Collections of such Receivables (collectively, the “Originator
Documents”) and (B) deliver such Originator Documents to the Company or its designee at a place designated by the Company. In recognition of the Contributor’s and the respective Originator’s need to have access to any Originator
Documents that may be transferred to the Company hereunder, whether as a result of its continuing business relationship with any Obligor for Receivables or as a result of its responsibilities as Collection Agent the Company hereby grants to the
Contributor a license to access the Originator Documents transferred by the Contributor to the Company and to access any such transferred computer software in connection with any activity arising in the ordinary course of the Contributor’s
business or in performance of the Contributor’s duties as Collection Agent; provided that the Contributor shall not disrupt or otherwise interfere with the Company’s use of and access to the Originator Documents and its computer
software during such license period; 

  

	 	(iv)	upon written request of the Company, the Contributor will (A) deliver to the Company all licenses, rights, computer programs, related material, computer tapes, disks, cassettes and
data necessary for the immediate collection of the Receivables by the Company, with or without the participation of the Contributor (excluding software licenses which by their terms are not permitted to be so delivered, provided that the
Contributor shall use reasonable efforts to obtain the consent of the relevant licensor to such delivery but shall not be required, to the extent it has an ownership interest in any electronic records, computer software or licenses, to transfer,
assign, set-over or otherwise convey such ownership interests to the Company) and (B) make such arrangements with respect to the collection of the Receivables as may be reasonably required by the Company. 

  

	8.	MISCELLANEOUS 

  

	8.1	Payments 

  
 All payments to be made by a party (“payor”) hereunder shall be made in Dollars on the due date and in immediately available funds to the recipient’s (“payee”) account set forth
in Schedule 8.1 of this Agreement or to such other account as may be specified by such payee from time to time in a notice to such payor. Wherever any payment to be made under this Agreement shall be stated to be due on a day other than a Business
Day or a Local Business Day, such payment shall be made on the next succeeding Business Day or Local Business Day, as applicable. 
  

	8.2	Costs and Expenses 

  
 The Contributor agrees to pay, indemnify, and hold the Company harmless from and against any and all other liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever (i) which may at any time be imposed on, incurred by or asserted against the Company in any way relating to or arising out of this Agreement or
the other Transaction Documents or the transactions contemplated hereby and thereby or in connection herewith or any action taken or omitted by the Company under or in connection with any of the foregoing (all such other liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses and disbursements being herein called 

  

 - 32 - 

 
“Indemnified Liabilities”) or (ii) which would not have been imposed on, incurred by or asserted against the Company but for its having
acquired the Receivables hereunder; provided, however, that such indemnity shall not be available to the extent that such Indemnified Liabilities are finally judicially determined to have resulted from the gross negligence or willful
misconduct of the Company and provided further that nothing herein shall be interpreted as an obligation of the Contributor to pay or reimburse the Company for regular, on-going business expenses, whch shall be paid from the Company’s
own funds. The agreements of the Contributor in this Section 8.2 shall survive the collection of all Receivables, the termination of this Agreement and the payment of all amounts payable hereunder. 
  

	8.3	Successors and Assigns 

  
 This Agreement shall be binding upon and inure to the benefit of the Contributor and the Company and their respective successors (whether by merger,
consolidation or otherwise) and permitted assigns. The Contributor agrees that it will not assign or transfer all or any portion of its rights or obligations hereunder without the prior written consent of the Company. 
  

	8.4	Governing Law 

  
 THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK AND WITHOUT REFERENCE TO ANY CONFLICT OF LAWS
PRINCIPLES (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW). 
  

	8.5	No Waiver; Cumulative Remedies 

  
 No failure to exercise and no delay in exercising, on the part of the Company, any right, remedy, power or privilege hereunder, shall operate as a waiver
thereof, nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and
privileges herein provided are cumulative and not exhaustive of any rights, remedies, powers and privileges provided by law. 
  

	8.6	Amendments and Waivers 

  
 Neither this Agreement nor any terms hereof may be amended, supplemented or modified except in a writing signed by the Company and the Contributor and
that otherwise complies with any applicable provision in the Transaction Documents. 
  

	8.7	Severability 

  
 Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

  

	8.8	Notices 

  
 All notices, requests and demands to or upon the respective parties hereto to be effective shall be in writing (including by telecopy), and, unless otherwise expressly provided herein, shall be deemed to have been
duly given or made when delivered by hand, or three (3) days after being deposited in the mail, postage prepaid, or, in the case of telecopy notice, when received, 

  

 - 33 - 

 
(i) addressed as follows in the case of the Company and the Contributor, (ii) addressed as provided in the Asset Backed Loan Agreement in the case of the
Administrative Agent or (iii) to such other address as may be hereafter notified by the respective parties hereto: 
  
 If to the Company: 
  
 Triangle Receivables Funding LLC 
  
 [Address] 
  
 Attention: 
 Telecopy: 
  
 If to the Contributor: 
  
 MEMEC LLC 
  
 [Address] 
  
 Attention: 
 Telecopy: 
  

	8.9	Counterparts 

  
 This Agreement may be executed by one or more of the parties to this Agreement on any number of separate counterparts (including by telecopy), and all of
said counterparts taken together shall be deemed to constitute one and the same instrument. A set of the copies of this Agreement signed by all the parties shall be lodged with the Company. 
  

	8.10	Submission to Jurisdiction; Service of Process 

  

	 	(a)	Each of the parties hereto hereby submits to the nonexclusive jurisdiction of the United States District Court for the Southern District of New York and of any New York State court
sitting in the Borough of Manhattan, City of New York for purposes of all legal proceedings arising out of or relating to this Agreement or the transactions contemplated hereby. Each of the parties hereto hereby irrevocably waives, to the fullest
extent it may effectively do so, any objection which it may now or hereafter have to the laying of the venue of any such proceeding brought in such a court, any claim that any such proceeding brought in such a court has been brought in an
inconvenient forum and any claim based on its immunity from suit. Nothing in this Section 8.10(a) shall affect the right of any party hereto to bring any action or proceeding against another or its property in the courts of other jurisdictions.

  

	 	(b)	 EACH PARTY WAIVES ITS RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF OR RELATED TO THIS AGREEMENT, OR THE TRANSACTIONS
CONTEMPLATED HEREBY, IN ANY ACTION, PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT BY EITHER PARTY AGAINST THE OTHER PARTY, WHETHER WITH RESPECT TO CONTRACT CLAIMS, TORT CLAIMS, OR OTHERWISE. EACH PARTY HERETO AGREES THAT ANY SUCH CLAIM OR CAUSE
OF ACTION SHALL BE TRIED BY A COURT TRIAL WITHOUT A JURY. WITHOUT LIMITING THE FOREGOING, THE PARTIES HERETO FURTHER AGREE THAT THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY IS WAIVED BY OPERATION OF 

  

 - 34 - 

	 	 
THIS SECTION 8.10(b) AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING WHICH SEEKS, IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF THIS
AGREEMENT OR ANY PROVISIONS HEREOF. THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT. 

  

	8.11	No Bankruptcy Petition 

  

	 	(a)	The Contributor, by entering into this Agreement, covenants and agrees, to the extent permissible under applicable law, that it will not, solely in its capacity as a creditor of the
Company, institute against, or join any other Person in instituting against, the Company any involuntary bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other involuntary proceedings (including, but not limited to,
petitioning for the declaration of the Company’s assets en désastre) under any Applicable Insolvency Laws. 

  

	 	(b)	Notwithstanding anything elsewhere herein contained, the sole remedy of the Contributor or any other Person in respect of any obligation, covenant, representation, warranty or
agreement of the Company under or related to this Agreement shall be against the assets of the Company. Neither the Contributor nor any other Person shall have any claim against the Company to the extent that such assets are insufficient to meet
such obligation, covenant, representation, warranty or agreement (the difference being referred to herein as a “shortfall”) and all claims in respect of the shortfall shall be extinguished. 

  

	8.12	Termination 

  
 This Agreement will terminate at such time as (a) the commitment of the Company to accept a contribution of Receivables from the Contributor hereunder shall have terminated pursuant to Section 7.1 or otherwise and (b)
all Receivables have been collected, and the proceeds thereof turned over to the Company and all other amounts owing to the Company hereunder shall have been paid in full or, if Receivables have not been collected, such Receivables have become
Defaulted Receivables and the Company shall have completed its collection efforts in respect thereto; provided, however, that the indemnities of any Contributor to the Company set forth in this Agreement shall survive such termination
and provided further that, to the extent any amounts remain due and owing to the Company hereunder, the Company shall remain entitled to receive any Collections on Receivables that have become Defaulted Receivables after it shall have
completed its collection efforts in respect thereof. Notwithstanding anything to the contrary contained herein, if at any time, any payment made by the Contributor is rescinded or must be restored or returned by the Company as a result of any
Insolvency Event with respect to the Contributor then the Contributor’s obligations with respect to such payment shall be reinstated as though such payment had never been made. 
  

	8.13	Responsible Officer Certificates; No Recourse 

  
 Any certificate executed and delivered by a Responsible Officer of the Contributor or the Company pursuant to the terms of the Transaction Documents shall
be executed by such Responsible Officer not in an individual capacity but solely in his or her capacity as an officer of the Contributor or the Company, as applicable, and such Responsible Officer will not be subject to personal liability as to the
matters contained in the certificate. A director, officer, manager (in the case of a limited liability company), employee, shareholder or member (in the case of a limited liability company), as such, of the Contributor or Company shall not have
liability for any 

  

 - 35 - 

 
obligation of the Contributor or the Company hereunder or under any Transaction Document or for any claim based on, in respect of, or by reason of, any
Transaction Document, unless such claim results from the gross negligence, fraudulent acts or willful misconduct of such director, officer, employee, manager (in the case of a limited liability company) or shareholder or member (in the case of a
limited liability company). 
  

 - 36 - 

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

			
	 MEMEC LLC, 
 as the
Contributor

		
	By:	 	 
	 	 	 Name:

	 	 	 Title:

  

			
	 TRIANGLE RECEIVABLES FUNDING LLC,
 as
the Company

		
	By:	 	 
	 	 	 Name:

	 	 	 Title:

  

 - 37 - 

 Schedule 2.1(d) 
  

 Form of Daily Report 
  

 Schedule 3.1(e)(i) 
  

 Form of California Counsel Opinion 
  
             , 2000 
  
 Triangle Receivables Funding LLC, 
 as Contributor 
  
 [address] 
  
 The Chase Manhattan Bank,

 as Administrative Agent 
 450 West 33rd Street 
 15th Floor 
 New York, NY 10001

  
 Park Avenue Receivables Corporation 
  
 [address] 
  
 Sheffield Receivables Corporation 
  
 [address] 
  

	 	Re:	Memec LLC 

	 	    	Contribution Agreement 

	 	    	Perfection of Security Interest 

  
 Ladies and Gentlemen: 
  
 We have acted as local counsel for Memec LLC, a Delaware limited liability company (the “Contributor”), in connection with the
Contributor’s transfer of its interest in certain Receivables and Receivable Assets as a capital contribution to Triangle Receivables Funding LLC, a Delaware limited liability company (the “Company”), pursuant to that Contribution
Agreement, dated as of             , 2000, between the Contributor and the Company (the “Contribution Agreement”). 
  
 Under the terms of the Contribution Agreement, the Contributor will transfer
(the “Transfer”) to the Company, all of its right, title and interest in and to certain Receivables and Receivables Assets purchased by the Contributor from one or more Originators from time to time, which Receivables are identified in a
Daily Report concurrently delivered to the Contributor and identified in the Financing Statements described below. 
  

 Triangle Receivables Funding LLC 
 The Chase Manhattan Bank 
 Park Avenue Receivables Corporation 
 Sheffield Receivables Corporation 
 ______________, 2000 
 Page 2 
  
 This opinion is being furnished pursuant to
Subsection 3.1(e) of the Contribution Agreement. Capitalized terms used but not otherwise defined herein have the meanings ascribed in the Contribution Agreement. In this letter, the term “Code” means the Uniform Commercial Code as
currently in effect in the State of California, and the term “Proceeds” means all proceeds, as defined in the Code, of the Receivables. 
  
 1. Documents. For purposes of rendering this opinion, we have examined originals or copies identified to our satisfaction of the following
documents: 
  
 (a) the Contribution Agreement;

  
 (b) an acknowledgment copy of the UCC-1
Financing Statements naming the Contributor as Debtor and the Company as Secured Party, each filed on             , 2000 with the California Secretary of State as Document Nos.
            ,             ,              and
file-stamped “FILED SACRAMENTO, CA,             , 2000” (the “Financing Statements”). 
  
 We have also made such investigations of law as we have deemed necessary as a basis for the opinions set forth herein. As to
matters of fact relevant to the opinions contained herein, we have made such inquiries of and been furnished with such certificates from certain of the officers of the Contributor as we deem necessary for the purposes of this opinion, but we have
made no independent investigation as to any matter of fact, nor have we independently verified any information obtained from or certified by such officers or third parties. As to such matters of fact, we have relied solely upon (i) such inquiries
and certificates, and (ii) the information and representations contained in the documents listed above examined by us. We have represented the Contributor in connection with this specific transaction only. We have acted only as local counsel to the
Contributor and are not generally familiar with the Contributor’s background, operating histories or other business and affairs. 
  
 2. Assumptions. For purposes of this opinion, we have assumed (i) the due authorization, execution and delivery by all parties thereto of the
documents listed above examined by us; (ii) that all such parties have the legal power to act in the capacities in which they are to act under such documents; (iii) the conformity to the original documents of any documents submitted to us as
certified or photostatic copies, the authenticity of the documents and the genuineness of all signatures on the documents; (iv) that each such document is the legal, valid and binding obligation of all parties thereto, enforceable against each such
party in accordance with its terms; (v) that the Contribution Agreement creates a valid sale, contribution or security interest in favor of the Company in the Receivables and Proceeds; and (vi) that each 

  

 Triangle Receivables Funding LLC 
 The Chase Manhattan Bank 
 Park Avenue Receivables Corporation 
 Sheffield Receivables Corporation 
 ______________, 2000 
 Page 3 
  

 
such party has performed and will perform its obligations thereunder. With respect to the assumptions in clause (iv) and (v) of this paragraph as they relate
to the Contributor and the Contribution Agreement, we understand that you are relying on the separate opinion of Clifford Chance Rogers & Wells, New York, of even date herewith addressed to you. 
  
 In expressing the opinions set forth herein we have relied, without
independent investigation, upon a UCC Search Report for the Contributor obtained from the Secretary of State of California dated as of             , 2000 showing filings through
            , 2000 (the “UCC Search Date[s]”) with respect to financing statements and related filings and certain notices of federal tax liens, California state tax
liens and judgment liens with respect to the Contributor on file with the office of the California Secretary of State, (the “UCC Search Reports”). 
  
 With respect to the opinions contained herein, we have assumed the following, without independent investigation or
verification: 
  
 (A) based upon the certificates
of certain of the officers of the Contributor, that the principal place of business and chief executive office for the Contributor is located at             , and that substantially
all offices, books, records, equipment and tangible personal property of the Contributor are located in the State of California; 
  
 (B) based upon the certificates of certain of the officers of the Contributor, that the Contributor has not changed its name, whether by
amendment of its Certificate of Formation, by reorganization or otherwise, within the four months next preceding the date any of the Receivables were transferred to the Contributor; 
  
 (C) based upon the certificates of certain of the officers of the Contributor, that the Contributor has not
changed its principal place of business or its chief executive office within the last four months; 
  
 (D) based upon the certificates of certain of the officers of the Contributor and the representations and warranties of the Contributor
set forth in the Contribution Agreement, that the Contributor will be the legal and beneficial owners of all right, title and interest in and to those Receivables transferred by the Contributor to the Company immediately prior to the transfer of
such Receivables, free and clear of all liens (other than certain liens permitted by the Contribution Agreement), and that, after giving effect to such transfer, no liens or claims against the Receivables (other than the claim of the 

  

 Triangle Receivables Funding LLC 
 The Chase Manhattan Bank 
 Park Avenue Receivables Corporation 
 Sheffield Receivables Corporation 
 ______________, 2000 
 Page 4 
  

 
Company or other claims or interests contemplated under the Contribution Agreement) will exist; 
  
 (E) that at the time of filing of the Financing Statements,
and at the time that any Receivables are transferred to the Company, the Company had no notice or knowledge of any adverse claims, rights, liens, defenses or interests affecting the Receivables other than as contemplated by the Contribution
Agreement; 
  
 (F) that the UCC Search Report is
accurate and complete and, based upon the certificates of certain of the officers of the Contributor, that no financing statements or related filings or notices of federal or state tax liens or notices of judgment liens, or other filings or notices
evidencing claims, liens, encumbrances or interests with respect to the Receivables have been made or filed with respect to the Contributor between the UCC Search Date[s] and the date hereof or, if such filings or notices have been made or filed,
such notices or filings do not relate to the Receivables or have been effectively terminated and released; 
  
 (G) that the Receivables arise out of the sale of goods or rendering of services by an Originator that any writing or writings
constituting or evidencing the Receivables do not, and, at all times relevant to the opinions rendered herein, will not: (i) consist of an unconditional promise or order to pay a fixed amount of money which is payable to bearer or order; (ii)
contemplate the transfer thereof in the ordinary course of business by delivery with any necessary endorsement or assignment; or (iii) evidence a security interest in or lease of specific goods, and that during the term of the U.S. RPA, the legal
nature of the Proceeds will not change from “instruments” or “accounts” or “general intangibles” or “instruments” or “chattel paper” or “money” as defined in the Code; 
  
 (H) that in the event that a change in the
Contributor’s name, identity or corporate structure makes any Financing Statement, or any continuation statement thereof, seriously misleading within the meaning of Section 9402(7) of the Code, or the Contributor moves the location of its place
of business or chief executive office, that the Company will file or cause to be filed such financing statements, continuation statements or amendments as may be necessary to continue the perfection of the Company’s interest in the Receivables,
as required by the Contribution Agreement, within the time specified in Section 9402(7) of the Code or Section 9103(3)(e) of the Code, as the case may be; 
  

 Triangle Receivables Funding LLC 
 The Chase Manhattan Bank 
 Park Avenue Receivables Corporation 
 Sheffield Receivables Corporation 
 ______________, 2000 
 Page 5 
  

 (I) that the Contributor and the Company will file within the time specified by
Section 9403 of the Code any continuation statement that may be necessary to continue the perfection of the Company’s interest in the Receivables; and 
  
 (J) that there are no equities arising from actual or constructive fraud in the conduct of the Company and there has been no act of
management or control of the Contributor by the Company that would allow or require subordination of the claims of the Company pursuant to principles of equity in an insolvency proceeding. 
  
 3. Opinions. Based upon and subject to the foregoing and to the
assumptions, qualifications and limitations set forth below, we are of the opinion that: 
  
 (a) Form of Financing Statement. The Financing Statements are in appropriate form for filing in the State of California and have
been duly filed in the appropriate filing office in such State and the fees and document taxes, if any, payable in connection with the said filing of the Financing Statement have been paid in full. 
  
 (b) Characterization of Receivables. The Receivables
constitute “accounts” as described in Section 9106 of the Code. 
  
 (c) Perfection and Priority. The Financing Statements having been filed in the office of the California Secretary of State, the interest of the Company in the Receivables and Proceeds constitutes a fully
perfected interest in Receivables in existence as of the date of the execution and delivery of the Contribution Agreement, Receivables which come into existence after the date hereof (the “After-Arising Receivables”), as of and
after the time those After-Arising Receivables come into existence, and Proceeds of any of the foregoing. 
  
 Subject to (A) liens permitted by the Contribution Agreement, and (B) the Contributor’s right to receive payments as provided in the Contribution
Agreement, and the matters discussed elsewhere in this letter, such interest is a first priority, perfected interest, enforceable as a security interest against, and is prior to, all creditors of and purchasers from the Contributor, and the Company
will have the rights of a secured creditor properly perfected under state law in a bankruptcy or insolvency proceeding with respect to the Contributor, except, in each case, (i) with respect to Receivables or Proceeds evidenced by instruments (as
defined in Section 9105(1)(i) of the Code), or money, which are not in the possession of the Company; and (ii) as priority may be subject to (A) liens under Section 4210 of the Code (relating to the security interest of collecting banks), (B) claims
of the United States under the federal priority statute (31 U.S.C. § 3713), (C) with respect to Receivables or Proceeds represented by chattel paper, the 

  

 Triangle Receivables Funding LLC 
 The Chase Manhattan Bank 
 Park Avenue Receivables Corporation 
 Sheffield Receivables Corporation 
 ______________, 2000 
 Page 6 
  

 
interest of a purchaser of such chattel paper under Section 9308 of the Code, and (D) with respect to Receivables or Proceeds evidenced by instruments,
security interests of third parties perfected for 21 days under Section 9304(4) or (5)(b) of the Code. With respect to clauses (i), (ii)(C) and (ii)(D), we have assumed that no action will be taken to cause any Receivable to be evidenced by
an instrument or chattel paper. 
  
 We further note that unless
the Obligor in respect of a Receivable has received notice of the transfer to the Company, bona fide payments made by such Obligor to the Contributor, or to a subsequent assignee of such Receivable as to which the Obligor has received notice of such
assignment, will discharge such Obligor’s obligations to the extent of such payment, and such payment will be recoverable only from the Contributor, which recovery may be impaired in a subsequent insolvency of the Contributor. 
  
 (d) UCC Choice of Law; Other Actions. Pursuant to
Section 9103 of the Code, the perfection and the effect of perfection or nonperfection of the Company’s interest in the Receivables and Proceeds is governed by the laws of the State of California and any applicable federal law. No filing or
other action, other than the filing of the Financing Statements with respect to the Company’s interest in the Receivables and Proceeds in the office of the California Secretary of State (which Financing Statements having been filed) is
necessary to perfect or continue the perfected status under California law of the interest of the Company, with respect to the Receivables and Proceeds against third parties, except that appropriate continuation statements must be filed with respect
to the Financing Statements at 5-year intervals to continue the perfection of such security interest and that in the event that a change in any Originator’s name, identity or corporate structure makes any Financing Statement, or any
continuation statement thereof, seriously misleading within the meaning of Section 9402(7) of the Code, or the moves the location of its place of business or chief executive office, additional financing statements, continuation statements or
amendments may need to be filed to continue the perfection of the Company’s interest in the Receivables, as required by the Contribution Agreement, within the time specified in Section 9402(7) of the Code or Section 9103(3)(e) of the Code, as
the case may be. 
  
 4. Qualifications. The foregoing
opinions are subject to the following assumptions, qualifications and exceptions: 
  
 (A) The opinions contained in this letter are limited to the laws of the State of California and of the United States of America in effect
on the date of this letter, as applied to the factual circumstances on which we have relied (as set forth above) in existence on the date hereof. We express no opinion as to the laws of any other time or 

  

 Triangle Receivables Funding LLC 
 The Chase Manhattan Bank 
 Park Avenue Receivables Corporation 
 Sheffield Receivables Corporation 
 ______________, 2000 
 Page 7 
  

 
jurisdiction, or (except to the extent set forth in Section 3(c)) the applicability of the laws of any particular jurisdiction, or the enforceability of any
choice of law provision in the Contribution Agreement. We do not assume any continuing obligation or responsibility to advise you of any changes in law, or any change of circumstances of which we may become aware, which may affect the conclusions
reached in this opinion. 
  
 (B) No opinion is
expressed as to the Contributor’ title to the Receivables or Proceeds, or as to whether the transfer of the Receivables and Proceeds constitutes a true sale or the grant of a security interest, see, e.g., Octagon Gas Systems v.
Rimmer (In re Meridian Reserve, Inc.), 995 F.2d 948 (10th Cir. 1993). 
  
 (C) No opinion is expressed with respect to the effect of (i) bankruptcy, insolvency, reorganization, receivership, moratorium and other similar laws affecting the rights and remedies of creditors generally (except as
expressly provided in the first sentence of the second paragraph of Paragraph 3(b) as to the Company’s rights as a secured creditor under state law), or (ii) state fraudulent transfer and conveyance laws. 
  
 (D) No opinion is expressed as to the priority of any
interest of the Company in the Receivables and Proceeds against: (i) any liens, claims or other interests that arise by operation of law and do not require any filing, possession or similar action in order to take priority over security interests
perfected through the filing of a UCC financing statement or by taking possession of collateral as contemplated by Article 9 of the Code; (ii) any improperly recorded claims arising prior to the date hereof; (iii) any claim or lien in favor of the
United States or any agency or instrumentality thereof (including, without limitation, liens arising under Title IV of the Employee Retirement Income Security Act of 1974, as amended; (iv) Proceeds due from any federal, state or local government; or
(v) any lien for the payment of federal, state or local taxes or charges which are given priority by operation of law, including, without limitation, Sections 6321 and 6323 of the Internal Revenue Code. With respect to the qualification contained in
clause (i) of this paragraph, we note that in the course of our acting as counsel to the Contributor in this matter, and without independent investigation (and, with your permission, without performing research as to any legal matter) we have not
become aware of (a) any lien, claim or other interest that arises by operation of law and does not require filing, possession or similar action in order to take priority over security interests perfected as described herein which might be asserted
against the Receivables or Proceeds other than the claims and liens specified in clauses (iii) and (v) above and the claims and liens referred to in clause (ii) of the second paragraph of Paragraph 3(b) above; or (b) any such lien, claim or other
interest that has been asserted against the Receivables or Proceeds. 
  

 Triangle Receivables Funding LLC 
 The Chase Manhattan Bank 
 Park Avenue Receivables Corporation 
 Sheffield Receivables Corporation 
 ______________, 2000 
 Page 8 
  

 (E) No opinion is expressed with respect to the perfection or priority of the
Company’s interest in the Proceeds of any Receivables, except to the extent such Proceeds are governed by the Code and consist of proceeds received by the Company or the Contributor not more than nine days before the date on which perfection or
priority is being determined; provided, that the Company’s interest in such Proceeds will be limited to the extent provided in Section 9306 of the Code. 
  
 (F) We express no opinion as to the security interest of the Company in any property or interest therein
perfected under the laws of another jurisdiction. 
  
 (G) We have not inspected or reviewed the books and records of the Contributor except as specified in this letter, nor have we made a physical inspection of the originator’s assets or any investigation of the state of title to any such
assets. 
  
 This opinion is delivered at the request of the
Contributor, solely for the benefit of each of you in connection with the Contribution Agreement, and may not be relied upon by any other person or for any other purpose; nor may it be used, circulated, published, communicated, quoted or otherwise
referred to or made available to any other person without, in each instance, our prior written consent. Notwithstanding the foregoing, the persons listed in Exhibit A attached hereto are entitled to rely on this opinion letter as though the
same were addressed to each of them, subject to the condition that by acceptance of this letter each person listed on Exhibit A recognizes and acknowledges that: (i) no attorney-client relationship has existed between our firm and such person
in connection with the purchase of the Receivable or by virtue of this opinion letter, (ii) in order to provide this letter, our firm undertook no duties or responsibilities and conducted no activities in addition to those undertaken or conducted
for purposes of the rendering of this opinion letter to the addresses hereof, and (iii) this opinion letter may not be appropriate or sufficient for such person’s purposes. We disclaim any obligation to update this opinion letter for events
occurring or coming to our attention after the date hereof. 
  

	
	 Very truly yours,

	
	 FARELLA BRAUN & MARTEL LLP

  
 AKS:gz 
  

 EXHIBIT A 
  
 Clifford Chance Rogers & Wells LLP 
  
 [address] 
  
 Standard & Poor’s Rating Services, 
 a division of the McGraw Hill Companies 
  
 [address] 
  
 Moody’s Investor Services Inc. 
  
 [address] 
  

 Schedule 3.1 (e)(ii) 
  

 Form of New York Counsel Opinion 
  
 [    ], 2000 
  
 To the Persons Listed 
 on Schedule I hereto 
  
 Ladies and Gentlemen: 
  
 We have acted as special New York counsel to (i) Triangle Receivables Subsidiary LLC, a newly formed special purpose Delaware limited
liability company (the “Company”), and (ii) Memec, LLC, a Delaware limited liability company (the “Contributor”) in connection with (a) the contribution by the Contributor of certain trade receivables to the Company
pursuant to the Contribution Agreement dated as of [    ], 2000 (the “Contribution Agreement”), between the Contributor and the Company and (b) the grant by the Company of a security interest in all of its right,
title and interest in and to the Contribution Agreement and certain trade receivables to The Chase Manhattan Bank, solely in its capacity as Administrative Agent (in such capacity, the “Administrative Agent”) pursuant to the Asset
Backed Loan Agreement dated as of [    ], 2000 (the “Loan Agreement”), among the Company, Park Avenue Receivables Corporation and Sheffield Receivables Corporation, as CP Conduit Lenders, Certain PARCO APA Banks,
Barclays Bank plc, as Sheffield Funding Agent, and the Administrative Agent, as Administrative Agent, PARCO Funding Agent and Collection Agent. This opinion is being delivered pursuant to Section 3.1(e)(ii) of the Contribution Agreement. Capitalized
terms not otherwise defined herein have the meanings assigned to such terms in the Contribution Agreement. 
  
 In rendering the opinions expressed below, we have examined originals or copies certified or otherwise authenticated to our satisfaction of the following documents (collectively, the “Documents”):

  

	 	1.	the Contribution Agreement; 

  

	 	2.	the Loan Agreement; and 

  

	 	3.	Unfiled copies of the financing statements naming the Contributor, as “Debtor” and the Company, as “Secured Party” and describing the Contribution Agreement and
the relevant Receivables, which we understand will be filed in the relevant filing offices. 

  
 In addition, we have reviewed and relied on the legal opinions of Richards, Layton & Finger (as to certain Delaware corporate law matters relating to the Contributor and the Company) addressed to you and dated the
date hereof. 
  

 To the Persons Listed 
 on Schedule I hereto 
 [    ], 2000 
  

 We have examined and relied upon originals and copies certified to our satisfaction of such other documents, and such
matters of law, as we have deemed necessary in connection with the opinions hereinafter expressed. In such examination, we have assumed the genuineness of all signatures, the authenticity of all documents submitted to us as originals, the conformity
to the originals of all such documents submitted to us as certified, conformed or photostatic copies, and the authenticity of the originals of such latter documents. As to questions of fact material to such opinions we have, when relevant facts were
not independently established, relied upon the representations, warranties, covenants and other agreements of the various parties contained in the Documents. 
  
 We have assumed for purposes of our opinions hereinafter set forth that the Documents have been duly authorized, executed and delivered by each of the parties thereto,
and that each such party has full power, legal right and authority to make and perform its obligations under such documents to which it is a party, and each Document constitutes, on the date hereof, the legal, valid and binding obligation of each
such party (other than the Company and the Contributor), enforceable against such party in accordance with its respective terms. In addition, we have assumed that each of the parties thereto is duly organized, validly existing and in good standing
under the laws of such party’s jurisdiction of organization and that each of the parties to the Documents has obtained all approvals, authorizations, consents and licenses (including any foreign exchange licenses) from, and has made all filings
and registrations with, all governmental or regulatory authorities or agencies required for the execution and delivery of, or for the performance of its obligations under, the Documents. 
  
 Based upon the foregoing and subject to the comments and qualifications set forth below, we are of the opinion that: 
  
 (i) upon due authorization, execution and delivery by each
party thereto, the Contribution Agreement will constitute the legal, valid and binding obligation of the Contributor and the Company, enforceable against each in accordance with its terms, subject to bankruptcy, insolvency, reorganization or other
laws relating to or affecting creditors’ rights generally and to the application of general equity principles; 
  
 (ii) the Company is not an investment company as defined in the United States Investment Company Act of 1940, as amended (the
“Investment Company Act”) or required to be registered pursuant to the Investment Company Act; and 
  
 (iii) pursuant to Section 2.1 of the Contribution Agreement, together with a Daily Report identifying Receivables offered to be
contributor by the Contributor to the Company, the acceptance of such offer and receipt of the Contribution Value therefor, the Contributor has created in favor of the Company a valid “security interest” (as defined in Section 1-201 of the
Uniform Commercial Code as in effect in the State of New York (the “New York UCC”), which 

  

 To the Persons Listed 
 on Schedule I hereto 
 [    ], 2000 
  

 
includes any interest of a buyer of accounts or chattel paper which is subject to Article 9 of the New York UCC in all right, title, and interest of the
Contributors in, to and under such Receivables; provided that the transfer of such Receivables may not be effective against a lien creditor (as defined in Section 9-301(3) of the Uniform Commercial Code as in effect in the state in which the
Contributor’s chief executive office is located (the “Contributor UCC”), unless financing statements have, on or before the Effective Date, been filed under the Contributor UCC in the proper filing offices naming the
Contributor as debtor and the Company as secured party and describing the Receivables. 
  
 Our opinion in (i) above is subject to the following qualifications and limitations: 
  

	 	(A)	We express no opinion as to whether a federal or state court outside of the State of New York would give effect to the choice of New York law provided for in the Contribution
Agreement. 

  

	 	(B)	We express no opinion as to Section 8.6 of the Contribution Agreement insofar as such Section provides that the terms of the Contribution Agreement may not be waived or modified
except in writing, which may be limited under certain circumstances. 

  

	 	(C)	We express no opinion as to Section 8.7 of the Contribution Agreement, which provides that the partial invalidity of one or more provisions thereof shall not invalidate the
remaining provisions thereof. 

  

	 	(D)	We express no opinion as to the waiver of inconvenient forum set forth in Section 8.10 of the Contribution Agreement in so far as such provision relates to proceedings in the United
States District Court for the Southern District of New York. 

  

	 	(E)	We express no opinion as to the waiver of jury trial set forth in Section 8.10 of the Contribution Agreement. 

  
 Our opinion in (ii) above is subject to the following qualification and limitations:

  

	 	(a)	We have assumed that the Receivables exist and we express no opinion as to the nature or extent of the rights or title of the Company in or to the Receivables.

  

	 	(b)	We express no opinion regarding the security interest in any of the Receivables consisting of claims against any government or governmental agency (including, without limitation,
the United States of America or any state thereof or any agency or department of the United States of America or any state thereof). 

  

	 	(c)	In the case of any Receivable secured by other property, we express no opinion with respect to the rights of the Company in and to such underlying property.

  

 To the Persons Listed 
 on Schedule I hereto 
 [    ], 2000 
  

	 	(d)	We express no opinion as to the priority of any security interest purported to be created by the Receivables Purchase Agreement. 

  

	 	(e)	We express no opinion as to the perfection of any ownership or security interest to or in the Receivables. 

  

	 	(f)	We express no opinion as to the creation of any security interest in any property (other than accounts and general intangibles for money due or to become due) which prohibits the
assignment thereof or the creation of a security interest therein without, in each case, the consent of the account debtor thereof. 

  
 We are members of the bar of the State of New York and we express no opinion herein as to any matters governed by laws other than the laws of the State of New York. We
have with your permission assumed the correctness of the conclusions expressed in the legal opinions of Richards, Layton & Finger (as to certain Delaware corporate law matters relating to the Contributor and the Company) addressed to you and
dated the date hereof without independently investigating or verifying the matters covered thereby. 
  
 This opinion is rendered solely to you and is solely for your benefit in connection with the transactions contemplated in the Documents. It may not be relied upon by you for any purpose, or quoted to or relied upon by
any other person, firm or corporation for any purpose, and, without our prior written consent, may not be transmitted or disclosed to any other person save to Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies,
Inc., and Moody’s Investors Service, Inc., who may rely on this opinion as if it were addressed to them, and their respective legal advisers. 
  
 Very truly yours, 
  

 Schedule I 
  

Addressees 
  
 Memec, LLC 
 [Address] 
  
 Triangle Receivables Funding LLC 
 c/o Memec, LLC 
 [Address] 
  
 The Chase Manhattan Bank, 
 as Administrative Agent 
 [Address] 
  

Park Avenue Receivables Corporation, 
 as CP Conduit Lender 
 [Address] 
  
 Sheffield Receivables Corporation, 
 as CP Conduit Lender 
 [Address] 
  

 Schedule 3.1(e)(iii) 
  

 Form of Delaware Counsel Opinion 
  
             , 2000 
  
 To Each of the Persons Listed 
 on Schedule A Attached Hereto 
  

	 	Re:	Memec, LLC; Impact Semiconductor 

 Technologies LLC;
Insight Electronics, LLC; 
 and Triangle Receivables Funding LLC 
  
 Ladies and Gentlemen: 
  
 We have acted as special Delaware counsel for Memec, LLC, a Delaware limited liability company (“Memec”), Impact Semiconductor Technologies LLC,
a Delaware limited liability company (“Impact”), Insight Electronics, LLC, a Delaware limited liability company (“Insight”), and Triangle Receivables Funding LLC, a Delaware limited liability company (“Triangle”), in
connection with the matters set forth herein. At your request, this opinion is being furnished to you. 
  
 For purposes of giving the opinions hereinafter set forth, our examination of documents has been limited to the examination of executed or conformed
counterparts, or copies otherwise proved to our satisfaction, of the following: 
  
 (a) The Certificate of Formation of Memec, dated as of September 21, 1998, as filed in the office of the Secretary of State of the State of Delaware (the “Secretary of State”) on September 21, 1998, as
amended by the Certificate of Amendment of the Certificate of Formation of Memec, dated January 27, 2000 (the “Memec Amendment”), as filed in the office of the Secretary of State on January 31, 2000, as corrected by the Certificate of
Correction of the Memec Amendment, dated as of August     , 2000, as filed in the office of the Secretary of State on August     , 2000 (as so amended and corrected, the “Memec
Certificate”) ; 
  
 (b) The Limited Liability Company
Agreement of Memec, dated as of November 1, 1998 (the “Original Memec Agreement”), by VEBA Corporation, as the initial member; 
  

	(c)	[The Assignment and Assumption of Limited Liability Company Interest of Memec, entered into between VEBA Corporation and [
             ] (the “Memec Shareholder”), dated as of August     , 2000 (the “Assignment”);] 

  

 To Each of the Persons Listed 
 on Schedule A Attached Hereto 
 __, 2000 
 Page 2

  

 (d) The Amendment to the Original Memec Agreement, dated as of August
    , 2000, entered into by the Memec Shareholder (the “Amendment”) (the Original Memec Agreement, as amended by the Assignment and the Amendment, is hereinafter referred to as the “Memec Agreement”);

  
 (e) The Unanimous Consent of the Board of Directors of Memec,
dated as of August     , 2000, acknowledged and agreed to by the Memec Shareholder (the “Memec Consent”); 
  
 (f) A Certificate of an officer of Memec, dated as of August     , 2000, as to certain matters; 
  
 (g) The Certificate of Formation of Impact, dated September 23, 1999 (the
“Impact Certificate”), as filed in the office of the Secretary of State on September 23, 1999; 
  
 (h) The Operating Agreement of Impact, dated as of September 23, 1999 (the “Impact Agreement”), entered into by Memec, as the initial member
(the “Impact Shareholder”); 
  
 (i) The Unanimous
Written Consent of the Managers of Impact, dated as of August     , 2000, acknowledged and agreed to by the Impact Shareholder (the “Impact Consent”); 
  
 (j) A Certificate of an Officer of Impact, dated as of August     , 2000, as to certain matters;

  
 (k) The Certificate of Formation of Insight, dated September
21, 1998, as filed in the office of the Secretary of State on September 21, 1998, as amended by the Certificate of Amendment of the Certificate of Formation of Insight, dated December 23, 1999 (the “Insight Amendment”), as filed in the
Office of the Secretary of State on January 26, 2000, as corrected by the Certificate of Correction of the Insight Amendment, dated as of August     , 2000, as filed in the office of the Secretary of State on August
    , 2000 (as so amended and corrected, the “Insight Certificate”); 
  
 (l) The Limited Liability Company Agreement of Insight, dated as of November 1, 1998 (the “Original Insight Agreement”), entered into by Memec,
as the initial member (the “Insight Shareholder”), as amended by the Amendment to the Original Insight Agreement, dated as of August     , 2000, entered into by the Insight Shareholder (as so amended, the
“Insight Agreement”); 
  

 To Each of the Persons Listed 
 on Schedule A Attached Hereto 
 __, 2000 
 Page 3

  

 (m) The Unanimous Written Consent of the Board of Directors of Insight, dated as of August
    , 2000, acknowledged and agreed by to the Insight Shareholder (the “Insight Consent”); 
  
 (n) A Certificate of an officer of Insight, dated as of August     , 2000, as to certain matters; 
  
 (o) The Certificate of Formation of Triangle, dated as of July 19, 2000 (the
“Triangle Certificate”), as filed in the office of the Secretary of State on July 19, 2000; 
  
 (p) The Limited Liability Company Agreement of Triangle, dated as of             
    , 2000 and effective as of                  , 2000 (the “Triangle Agreement”), entered into by Gregory Lavelle, as
the sole equity member (the “Triangle Shareholder”), and Donald J. Puglisi, as the Special Member (as defined in the Triangle Agreement); 
  
 (q) The Unanimous Written Consent of the Board of Directors of Triangle, dated as of
                 , 2000, acknowledged and agreed to the Triangle Shareholder (the “Triangle Consent”); 
  
 (r) A Certificate of an Officer of Triangle, dated August
    , 2000, as to certain matters; 
  
 (s) The U.S. Receivables Purchase Agreement, dated as of August     , 2000 (the “Purchase Agreement), among Impact, Insight and Unique Semiconductor Technologies Inc., as originators, and Memec, as purchaser;

  
 (t) The Contribution Agreement, dated as of August
    , 2000 (the “Contribution Agreement”), between Memec, as contributor, and Triangle; 
  
 (u) The UK Receivables Purchase Agreement, dated as of August , 2000 (the “U.K. Purchase Agreement”), among Memec UK Ltd., as originator and
sub-collection agent, Memec, as purchaser and collection agent, Barclays Bank plc, as Sheffield funding agent, and The Chase Manhattan Bank, as PARCO funding agent and administrative agent; 
  
 (v) A Certificate of Good Standing for Memec, dated August
    , 2000, obtained from the Secretary of State; 
  
 (w) A Certificate of Good Standing for Impact, dated August     , 2000, obtained from the Secretary of State; 
  

 To Each of the Persons Listed 
 on Schedule A Attached Hereto 
 __, 2000 
 Page 4

  

 (x) A Certificate of Good Standing for Insight, dated August     , 2000,
obtained from the Secretary of State; and 
  
 (y) A Certificate of
Good Standing for Triangle, dated August     , 2000, obtained from the Secretary of State. 
  
 Initially capitalized terms used herein and not otherwise defined are used as defined in the Memec Agreement. 
  
 For the purposes of this opinion, we have not reviewed any documents other
than the documents listed in paragraphs (a) through (y) above. In particular, we have not reviewed any document (other than the documents listed in paragraphs (a) through (y) above) that is referred to in or incorporated by reference into any
document reviewed by us. We have assumed that there exists no provision in any document not listed above that is inconsistent with the opinions stated herein. We have conducted no independent factual investigation of our own but rather have relied
solely upon the foregoing documents, the statements and information set forth therein and the additional matters recited or assumed herein, all of which we have assumed to be true, complete and accurate in all material respects. 
  
 With respect to all documents examined by us, we have assumed that (i) all
signatures on documents examined by us are genuine, (ii) all documents submitted to us as originals are authentic, and (iii) all documents submitted to us as copies conform with the original copies of those documents. 
  
 For purposes of this opinion, we have assumed (i) that the Memec Agreement
constitutes the entire agreement among the parties thereto with respect to the subject matter thereof, including with respect to the admission of members to, and the creation, operation and termination of, Memec, and that the Memec Certificate and
the Memec Agreement are in full force and effect and no amendment of the Memec Agreement or the Memec Certificate is pending or has been proposed, (ii) that the Impact Agreement constitutes the entire limited liability company agreement among the
parties thereto with respect to the subject matter thereof, including with respect to the admission of members to, and the creation, operation and termination of, Impact, and that the Impact Certificate and the Impact Agreement are in full force and
effect and no amendment of the Impact Certificate or the Impact Agreement is pending or has been proposed, (iii) that the Insight Agreement constitutes the entire agreement among the parties thereto with respect to the subject matter thereof,
including with respect to the admission of members to, and the creation, operation and termination of, Insight, and that the Insight Certificate and the Insight Agreement are in full force and effect and no amendment of the Insight Certificate or
the Insight Agreement is pending or has been proposed (iv) that the Triangle Agreement constitutes the entire agreement among the parties thereto with respect to the subject matter 

  

 To Each of the Persons Listed 
 on Schedule A Attached Hereto 
 __, 2000 
 Page 5

  

 
thereof, including with respect to the admission of members to, and the creation, operation and termination of, Triangle, and that the Triangle Certificate
and the Triangle Agreement are in full force and effect and no amendment of the Triangle Certificate or the Triangle Agreement is pending or has been proposed, (v) except to the extent provided in paragraphs 1 through 4 below, the due organization
or due formation, as the case may be, and valid existence in good standing of each party to the documents examined by us under the laws of the jurisdiction governing its organization or formation, and the capacity of natural persons who are
signatories to the documents examined by us, (vi) except to the extent provided in paragraphs 5 through 8 below, that each of the parties to the documents examined by us has the power and authority to execute and deliver, and to perform its
obligations under, such documents, (vii) except to the extent provided in paragraphs 9 through 12 below, the due authorization, execution and delivery by all parties thereto of all documents examined by us, and (viii) that there are no proceedings
pending or contemplated for the merger, consolidation, liquidation, dissolution or termination of Memec, Impact, Insight or Triangle. We have not participated in the preparation of any offering material relating to Memec, Impact, Insight or Triangle
and assume no responsibility for the contents of any such material. 
  
 This opinion is limited to the laws of the State of Delaware (excluding the securities laws and blue sky laws of the State of Delaware), and we have not considered and express no opinion on the laws of any other jurisdiction, including
United States federal laws and rules and regulations relating thereto. Our opinions are rendered only with respect to Delaware laws and rules, regulations and orders thereunder which are currently in effect. In rendering the opinions set forth
herein, we express no opinion concerning (i) the creation, attachment, perfection or priority of any security interest, lien or other encumbrance, or (ii) the nature or validity of title to any property. 
  
 Based upon the foregoing, and upon our examination of such questions of law
and statutes of the State of Delaware as we have considered necessary or appropriate, and subject to the assumptions, qualifications, limitations and exceptions set forth herein, we are of the opinion that: 
  
 1. Memec has been duly formed and is validly existing in good standing as a
limited liability company under the Delaware Limited Liability Company Act, 6 Del. C. § 18-101 et seq. (the “Act”). 
  
 2. Impact has been duly formed and is validly existing in good standing as a limited liability company under the Act. 
  
 3. Insight has been duly formed and is validly existing in good standing as a
limited liability company under the Act . 
  

 To Each of the Persons Listed 
 on Schedule A Attached Hereto 
 __, 2000 
 Page 6

  

 4. Triangle has been duly formed and is validly existing in good standing as a limited liability
company under the Act . 
  
 5. Under the Act, the Memec Agreement
and the Memec Consent, Memec has the requisite limited liability company power and authority to execute and deliver, and to perform its obligations under, the Purchase Agreement, the Contribution Agreement and the U.K. Purchase Agreement.

  
 6 Under the Act, the Impact Agreement and the Impact Consent,
Impact has the requisite limited liability company power and authority to execute and deliver, and to perform its obligations under, the Purchase Agreement. 
  
 7. Under the Act, the Insight Agreement and the Insight Consent, Insight has the requisite limited liability company power and authority to execute and
deliver, and to perform its obligations under, the Purchase Agreement. 
  
 8. Under the Act, the Triangle Agreement and the Triangle Consent, Triangle has the requisite limited liability company power and authority to execute and deliver, and to perform its obligations under, the Contribution Agreement.

  
 9. Under the Act, the Memec Agreement and the Memec Consent,
the execution and delivery by Memec of the Purchase Agreement, the Contribution Agreement and the U.K. Purchase Agreement, and the performance by Memec of its obligations thereunder, have been duly authorized by the requisite limited liability
company action on the part of Memec. Under the Act, the Memec Agreement and the Memec Consent, the Purchase Agreement, the Contribution Agreement and the U.K. Purchase Agreement have been duly executed and delivered by Memec. 
  
 10. Under the Act, the Impact Agreement and the Impact Consent, the execution
and delivery by Impact of the Purchase Agreement, and the performance by Impact of its obligations thereunder, have been duly authorized by the requisite limited liability company action on the part of Impact. Under the Act, the Impact Agreement and
the Impact Consent, the Purchase Agreement has been duly executed and delivered by Impact. 
  
 11. Under the Act, the Insight Agreement and the Insight Consent, the execution and delivery by Insight of the Purchase Agreement, and the performance by Insight of its obligations thereunder, have been duly
authorized by the requisite limited liability company action on the part of Insight. Under the Act, the Insight Agreement and the Insight Consent, the Purchase Agreement has been duly executed and delivered by Insight. 
  

 To Each of the Persons Listed 
 on Schedule A Attached Hereto 
 __, 2000 
 Page 7

  

 12. Under the Act, the Triangle Agreement and the Triangle Consent, the execution and delivery by
Triangle of the Contribution Agreement, and the performance by Triangle of its obligations thereunder, have been duly authorized by the requisite limited liability company action on the part of Triangle. Under the Act, the Triangle Agreement and the
Triangle Consent, the Contribution Agreement has been duly executed and delivered by Triangle. 
  
 13. The execution, delivery and performance by Memec of the Purchase Agreement, the Contribution Agreement and the U.K. Purchase Agreement do not violate (i) any Delaware law, rule or regulation, or (ii) the Memec
Agreement or the Memec Certificate. 
  
 14. The execution,
delivery and performance by Impact of the Purchase Agreement do not violate (i) any Delaware law, rule or regulation, or (ii) the Impact Agreement or the Impact Certificate. 
  
 15. The execution, delivery and performance by Insight of the Purchase Agreement do not violate (i) any Delaware law, rule
or regulation, or (ii) the Insight Agreement or the Insight Certificate. 
  
 16. The execution, delivery and performance by Triangle of the Contribution Agreement do not violate (i) any Delaware law, rule or regulation, or (ii) the Triangle Agreement or the Triangle Certificate. 
  
 We understand that you will rely as to matters of Delaware law upon this
opinion in connection with the transactions contemplated by the Purchase Agreement, the Contribution Agreement and the U.K. Purchase Agreement. We also understand that Clifford Chance Rogers & Wells LLP (“Clifford Chance”) will rely as
to matters of Delaware law upon this opinion in connection with an opinion to be rendered by it in connection with the transactions contemplated by the Purchase Agreement, the Contribution Agreement and the U.K. Purchase Agreement. In connection
with the foregoing, we hereby consent to your and Clifford Chance’s relying as to matters of Delaware law upon this opinion. Except as stated above, without our prior written consent, this opinion may not be furnished or quoted to, or relied
upon by, any other Person for any purpose. 
  

 To Each of the Persons Listed 
 on Schedule A Attached Hereto 
 __, 2000 
 Page 8

  

 Very truly yours, 
  
 JGL/GWL/TSM 
  

 SCHEDULE A 
  

Park Avenue Receivables Corporation 
  
 Sheffield Receivables Corporation 
  
 Barclays Bank PLC 
  
 The Chase Manhattan Bank 
  
 Memec, LLC

  
 Impact Semiconductor Technologies LLC 
  
 Insight Electronics, LLC 
  
 Triangle Receivables Funding LLC 
  

 Schedule 3.1(f) 
  

 Form of Bankruptcy Opinion 
  
 [ • ], 2000 
  
 To the Persons listed 
 on Schedule I hereto 
  
 Ladies and Gentlemen: 
  
 We have acted as special New York counsel to Memec, LLC, a Delaware limited liability company (“Memec”), and Triangle
Receivables Funding LLC, a newly formed special purpose Delaware limited liability company (the “Company”), in connection with (a) the contribution by Memec of certain trade receivables, as described below, to the Company, pursuant
to the Contribution Agreement dated as of [ • ], 2000 (the “Contribution Agreement”), between Memec and the Company, and (b) the grant of a security interest by the Company in its right, title and interest in, to and under the
Contribution Agreement and certain trade receivables, as described below, to The Chase Manhattan Bank, solely in its capacity as Administrative Agent (in such capacity, the “Administrative Agent”) under the Asset Backed Loan
Agreement dated as of [ • ], 2000 (the “Loan Agreement”), among the Company, Park Avenue Receivables Corporation and Sheffield Receivables Corporation, as CP Conduit Lenders, certain PARCO APA Banks, Barclays Bank plc, as
Sheffield Funding Agent and the Administrative Agent, as Administrative Agent, PARCO Funding Agent and Collection Agent. Capitalized terms not otherwise defined herein have the meanings assigned to such terms in the Contribution Agreement or, if
applicable, the Loan Agreement. 
  
 Pursuant to the Contribution Agreement, Memec
(in this capacity, the “Contributor”) proposes to contribute and convey to the Company from time to time, certain accounts receivable purchased by Memec from the Originators, in each case as specified in the applicable Daily Report
(the “Daily Report”) provided to, and to the extent accepted by, the Company pursuant to Section 2.1(a) of the Contribution Agreement (collectively, the “Receivables”), as a capital contribution to the Company. The
relevant transaction contemplated by the Contribution Agreement (the “Transaction”) is more fully described under Section I (Statement of Facts and Assumptions) below. 
  
 You have requested our opinion as to whether in the event the Contributor becomes a debtor in a voluntary or involuntary bankruptcy case
under Title 11 of the United States Code, as amended (the “Bankruptcy Code”), a bankruptcy court having jurisdiction over such case would (a) hold that the contribution of the Receivables by the Contributor to the Company in the
manner set forth in the Contribution Agreement would constitute a true conveyance of such Receivables, rather than a 

  

			
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borrowing by the Contributor secured by such Receivables, and therefore whether the bankruptcy court would not hold that such Receivables would be the
property of the Contributor’s bankruptcy estate under Section 541 of the Bankruptcy Code and (b) not order the consolidation of the assets and liabilities of the Company with those of the Contributor. 
  
 Our opinions are (i) limited to the specific issues set forth in the previous paragraph, (ii)
do not cover the grant of a security interest by the Company in its right, title and interest in, to and under the Receivables and the Contribution Agreement to the Administrative Agent pursuant to the Loan Agreement and (iii) are further limited in
all respects to the facts assumed. 
  

	I.	STATEMENT OF FACTS AND ASSUMPTIONS 

  
 In describing the Transaction and rendering the opinions expressed below, we have examined originals or copies certified or otherwise authenticated to our satisfaction of
the agreements and other documents described in Schedule II hereto. As to all factual matters material to the opinions expressed below, we have, with your permission and without any independent investigation, relied exclusively on, and assumed the
truth and accuracy of, those facts which have been provided to us by the Contributor and the Company, certain of which facts are contained in the Officers’ Certificate attached hereto as Exhibit A. 
  

	A.	Assumptions 

  
 We have assumed (i) that all facts and circumstances described herein will continue to exist, without any change in such facts and circumstances that might be material to such opinions, (ii) that the representations
and warranties of the Contributor and the Company contained in the Contribution Agreement and the other Transaction Documents to which each is a party are accurate and correct and that at all relevant times the Contributor and the Company will
comply with its obligations as set forth in the Contribution Agreement and the other Transaction Documents to which each is a party, (iii) the due authorization, execution and delivery by all parties thereto of all documents examined by us,
including the Contribution Agreement and the other Transaction Documents, (iv) that each party has the power and authority to enter into the Contribution Agreement and each of the other Transaction Documents to which it is a party and perform all of
its obligations thereunder, (v) that each of the Contribution Agreement and the other Transaction Documents is a legal, valid and binding obligation of each of the parties thereto, enforceable in accordance with its respective terms, (vi) that each
party to the Contribution Agreement and the other Transaction Documents is duly organized, validly existing and in good standing under the laws of its jurisdiction of organization, (vii) that each of the Contributor and the Company will act in
accordance with applicable laws and in accordance with its charter documents, (viii) that neither the Contributor nor the Company is entering into the Transaction with the actual or constructive intent of hindering, delaying or defrauding creditors
and (ix) that the increase in the value of the membership interest in the Company held by the Contributor in return for the contribution by the Contributor to the Company of 

  

			
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the Receivables will provide fair consideration and reasonably equivalent value to the Contributor. We refer you to our legal opinion (as to certain New York
law matters relating to the Contributor and the Company), to the legal opinion of Farella Braun & Martel (as to certain California law matters relating to the Transaction), and to the legal opinions of Richards, Layton & Finger (as to
certain Delaware corporate law matters relating to the Company and the Contributor). 
  

	B.	Facts 

  
 We understand, based on the representations and assumptions described above and our review of the Transaction Documents, that the relevant facts regarding the Transaction are as follows: 
  

	1.	The Transaction 

  
 Memec is a limited liability company organized under the laws of the State of Delaware. The Company is a special purpose limited liability company organized under the laws of the State of Delaware. The Company was
formed on July 19, 2000 for the sole purpose of consummating the Transaction. 
  
 This Transaction comprises a portion of a program (the “Program”), which has been established as part of a sale of certain trade receivables by certain Affiliates of Memec including Insight Electronics LLC, Impact
Semiconductor Technologies LLC and Unique Semiconductor Technologies Inc. (the “U.S. Originators”) and another Affiliate of Memec based in the United Kingdom (the “U.K. Originator” and, together with the U.S.
Originators, the “Originators”). 
  
 Each Originator will sell
all of its right, title and interest in, to and under certain accounts receivable generated by such Originator in its ordinary course of business and referred to in the applicable Originator Daily Report provided to the Company pursuant to the U.K.
Receivables Purchase Agreement (with respect to the U.K. Originator) and the U.S. Receivables Purchase Agreement (with respect to the U.S. Originators). 
  
 The Receivables represent amounts due from various customers (the “Obligors”) in respect of goods sold or services rendered by the Originators, and have
been originated in the ordinary course of business by such Originator. 
  
 Pursuant to the Contribution Agreement, the Contributor may from time to time, on and after the Effective Date, by delivering a Daily Report to the Company, contribute certain Receivables to the Company, as a capital contribution to the
Company. For administrative convenience, under the Contribution Agreement, the Contributor has the option (without obligation) of also contributing to the Company Designated Ineligible Receivables (which are Receivables that do not qualify as
Eligible Receivables under the Contribution Agreement). We understand that the amount of Designated Ineligible Receivables will be immaterial relative to the aggregate amount of Receivables 

  

			
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contributed to the Company pursuant to the Contribution Agreement. The Contributor will identify and describe in the Daily Report those Receivables that are
Designated Ineligible Receivables. 
  
 The Contributor is admitted as the sole
equity member of the Company, and the Contributor’s interest in the Company is owned free and clear of all Liens, other than any Liens in favor of the Company arising under the Limited Liability Company Agreement; provided that Memec may
pledge any portion or all of its membership interest to the Lenders under the Credit Agreement, dated [ • ], 2000, by and among [parties to the Credit Agreement]. 
  
 All Receivables will be owned by the Contributor free and clear of any Liens (other than Permitted Liens) immediately prior to the time of
contribution. Upon delivery of a Daily Report by the Contributor to the Company and acceptance thereof by the Company pursuant to the Contribution Agreement, the Receivables will be contributed, transferred, assigned and conveyed to the Company, so
that the Company acquires all of the Contributor’s right, title and interest, in, to and under such Receivables. Acceptance by the Company of the contribution, assignment, transfer and conveyance of the Receivables will be in good faith and
without knowledge of any Lien (other than Permitted Liens) against, interest in, or defense to payment of, such Receivables. The Contribution Agreement reflects bona fide transactions which have been negotiated on an arm’s-length basis
and which will be undertaken in good faith for legitimate business purposes. 
  
 The contribution of the Receivables (including the Designated Ineligible Receivables) will be without recourse to the Contributor, who will not guarantee the performance or collectability of such Receivables. There is no provision in the
Contribution Agreement which permits reconveyance of the Receivables contributed thereunder by the Company to the Contributor or contemplates the retention by the Contributor of any interest whatsoever in the Receivables except that (a) the
Contributor may be obligated to accept a reconveyance of Receivables for a material breach of certain representations and warranties, relating to the eligibility of such Receivables which includes the absence of Liens (other than Permitted Liens)
with respect to such Receivables and (b) the Contributor may exercise its “clean-up” call option when the Receivables contributed by the Contributor aggregate less than 10% of the average outstanding Principal Amount of Receivables
contributed by the Contributor over the period of 12 months ending 30 days prior to the date of such repurchase. 
  
 The Contributor will not, and will not attempt or purport to, extend, rescind, cancel, amend or otherwise modify the terms of any Receivables, or make any Dilution
Adjustment, unless (a) (i) such cancellation, termination, amendment, modification, or waiver is made in accordance with the servicing standards set forth in section 6 of the Loan Agreement (and would have been made in the ordinary course of
business), (ii) such cancellation, termination, amendment, modification or waiver arose as a result of a request from an Obligor, (iii) any such amendment, modification or waiver does not cause such Receivable to cease to be an Eligible Receivable
and (iv) such cancellation, termination, amendment, modification or waiver would not have a material and prejudicial effect on 

  

			
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the collectability of the relevant Receivable or (b) such Dilution Adjustment is the result of a pre-existing contractual obligation between the Originator
and the Obligor with respect to such Receivable; provided that in the event the Contributor cancels an invoice related to a Receivable, the Contributor must make the Dilution Adjustment Payment to the Company in accordance with Section 2.5 of
the Contribution Agreement. 
  
 Invoices with respect to certain Receivables,
which shall be designated on the applicable Daily Report (the “Atlas Receivables”), have been and during the 90 days after the Effective Date, or with respect to Receivables invoiced by Atlas pursuant to contracts between Atlas and
customers of the Originators that have a longer term, for such longer term (the “Atlas Transition Period”) may continue to be, sent to Obligors on behalf of the Originators by Atlas Services LLC, which prior to the Effective Date,
was an affiliate of the Originators (“Atlas”). The invoices sent by Atlas (the “Atlas Invoices”), in addition to setting forth amounts owed on the Atlas Receivables, may also include amounts owed to other affiliates
of the Originators (the “Other Receivables”). Payments with respect to the Atlas Invoices, which may include payments with respect to both the Atlas Receivables and the Other Receivables, are currently being made by Obligors to
lock-box accounts maintained by Atlas (the “Atlas Lock-Box Accounts”). During the Atlas Transition Period, Atlas will forward[, within two (2) Business Days,] any payments received by it with respect to the Atlas Receivables to the
applicable Lock-Box Accounts established pursuant to the Loan Agreement. 
  
 The
Contribution Agreement stipulates that the Contributor is required to take all actions needed to convey, contribute, assign and transfer the Receivables. Other than with respect to the Atlas Receivables during the Atlas Transition Period, Obligors
will make payments in respect of Receivables to the applicable Lock-Box Account. During the Atlas Transition Period, any amounts received by Atlas with respect to the Atlas Receivables will be forwarded by Atlas [within two (2) Business Days] to the
applicable Lock-Box Account. The Lock-Box Accounts will be accounts of the Company, such that the Contributor shall have no right, title or interest in and to the Lock-Box Accounts and the moneys deposited from time to time therein. 
  
 The Contribution Agreement requires that the Contributor maintain a record-keeping system
that will clearly and unambiguously indicate that the Receivables have been contributed, assigned, conveyed and transferred to the Company, and thereupon, a security interest has been granted by the Company to the Administrative Agent pursuant to
the Loan Agreement. The contribution of the Receivables will be treated by the Contributor and the Company as a conveyance, and not a borrowing by the Contributor secured by such Receivables, for all tax, accounting and regulatory purposes. The
Receivables will not be carried as assets on the books, records or financial statements of the Contributor; provided, however, that where consolidated financial statements of the Contributor are prepared, the conveyance of the Receivables to
the Company will be indicated through a footnote to such financial statements, which will state that as a result of the contribution of Receivables to the Company, creditors of the Contributor should not rely on such Receivables as a source of
payment for obligations of the Contributor. The Contribution Agreement does not contain restrictive financial 

  

			
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covenants relating to the operation of the Contributor’s businesses as would customarily be seen in loan documentation. The right of the Contributor to
contribute Receivables originated by any of the Originators, as the case may be, will terminate after expiration of any applicable grace periods upon the occurrence and continuance of certain designated Originator Termination Events with respect to
such Originators. The right of the Contributor to contribute any Receivables will also terminate immediately upon the occurrence and continuance of certain Termination Events, including the occurrence of an Insolvency Event with respect to the
Contributor. 
  
 As contemplated by the Contribution Agreement, the Company will
grant a first priority perfected security interest under the Loan Agreement in favor of the Administrative Agent in all of its right, title and interest in, to and under the Contribution Agreement and the Receivables. 
  
 Pursuant to the Loan Agreement, the Company will initially appoint the Administrative Agent,
and on the Effective Date, the Administrative Agent will appoint the Contributor, as the Collection Agent (the “Collection Agent”) of the Receivables. The Collection Agent shall appoint each U.S. Originator as a Sub-Collection Agent
(in such capacity, each, a “Sub-Collection Agent”) for the Receivables generated by such U.S. Originator pursuant to the U.S. Receivables Purchase Agreement. In the event that a Sub-Collection Agent shall resign or be removed from
its position, the Collection Agent or an alternate Sub-Collection Agent shall service the Receivables previously serviced by such Sub-Collection Agent. 
  
 So long as no Collection Agent Default has occurred and is continuing, the Collection Agent may delegate to one or more Persons the servicing, collection, enforcement and
administrative duties of the Collection Agent set forth under the Loan Agreement with respect to the Receivables; provided, however, that with respect to any such Person that is not an Affiliate of the Contributor, the Collection Agent shall
give prior written notice to the Company and each Funding Agent of any such delegation. Prior to any such delegation becoming effective, the consent of the Company and each Funding Agent to such delegation shall have been obtained. No delegation of
duties by the Collection Agent shall relieve the Collection Agent of its liability and responsibility with respect to its duties under the Loan Agreement. 
  
 In the event that any payments in respect of any Receivable are made directly to the Collection Agent, the Collection Agent will immediately deliver or deposit such
amount to the appropriate Lock-Box Account, and, prior to delivery or depositing such amount, the Collection Agent will hold such payments in trust as Administrative Agent for the Company and the Administrative Agent. Other than in accordance with
instructions by the Administrative Agent, the Collection Agent will have no right to withdraw any funds on deposit in any Lock-Box Account or the Collection Account. To the extent that the Collection Agent identifies any funds received in the
Lock-Box Account or the Collection Account as funds that do not constitute Collections on the Receivables, the Collection Agent shall remit such funds to the applicable Originator. 
  

			
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 At the Collection Agent’s sole cost and expense and as agent for the Company, it will collect (or cause to be
collected), consistent with its past practices (or those of the applicable Sub-Collection Agent) and in accordance with the Policies, as and when the same becomes due, the amount owing on each Receivable. Pursuant to the Loan Agreement, the
Collection Agent will agree that it will not make any material change in its administrative, servicing and collection systems that deviates from the Policies, except as otherwise permitted under the Loan Agreement, and after giving written notice to
the Administrative Agent of any such change. In the event of default under any Receivable, the Collection Agent has the power and authority on behalf of the Company to take such action in respect of the Receivable as the Collection Agent shall deem
advisable. In the enforcement or collection of any Receivable, the Collection Agent is entitled, but not required, to sue in its own name or to sue in the name of the Company provided that, in the latter case, the Company consents in writing (such
consent not to be unreasonably withheld). 
  
 The Loan Agreement provides that
following the occurrence of certain events, the Administrative Agent, as assignee of the Company, may terminate the then-current Collection Agent and appoint a replacement Collection Agent with respect to the Receivables. 
  
 The Loan Agreement provides for the payment to the Collection Agent of a monthly servicing
fee (the “Monthly Servicing Fee”) that has been calculated on an arm’s-length basis and will reflect the fair market value for the services (including collecting and enforcing the Company’s rights with respect to the
Receivables) to be provided by the Collection Agent; provided, however, so long as the Collection Agent is an Affiliate of the Company, payment of the Monthly Servicing Fee will be subordinated to the payment of interest, principal and
certain other amounts due under the Loan Agreement. The servicing fee shall be payable to the Collection Agent solely pursuant to the terms of, and to the extent amounts are available for payment under, Article III of the Loan Agreement. To the
extent that any of the Originators act as a Sub-Collection Agent, they will receive a fee from the Collection Agent that will reflect the fair market value of the services provided by such Sub-Collection Agent. 
  

	2.	Disclosure of the Transaction  

  
 For administrative and cost reasons, the Obligors with respect to the Receivables will not be informed of the Transaction. We note that existing Obligors currently make
payments to certain designated accounts of the Originators, or with respect to the Atlas Receivables, to Atlas. Other than with respect to the Atlas Receivables, Obligors will continue to make payments on the Receivables to the accounts designated
by the Originator, but such accounts will be transferred to the Company and thus qualify as Lock-Box Accounts under the Loan Agreement. With respect to the Atlas Receivables, during the Atlas Transition Period, Obligors may make payments to the
Atlas Lock-Box Account. Atlas will hold any amounts so received in trust for the benefit of the applicable Originator and shall within [one (1)] Business Day forward such amounts to a Lock-Box Account. All transfers from the Lock-Box Accounts to the
other Transaction accounts shall be made by the 

  

			
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Collection Agent at the direction of the Administrative Agent. On and after the Termination Date, the Company (and its assignees) may itself, or may request
that such Originator (at such Originator’s expense), notify the respective Obligors of the Company’s ownership of and title to the Receivables and direct that payment of all amounts due or to become due under the Receivables be made
directly to an account designated by the Administrative Agent. 
  
 Appropriate
UCC-1 financing statements will be properly filed in the appropriate filing offices as required by Section 9-103(3)(a) of the applicable UCC in order to perfect the contribution and conveyance of the Receivables to the Company on or before the
Effective Date. All financial statements prepared by the Contributor will treat the Transaction as a conveyance of the Receivables, with the effect that the Receivables will not be disclosed as an asset on any such financial statements of the
Contributor. Where consolidated financial statements of the Contributor and the Company are prepared, the conveyance of the Receivables will be indicated through a footnote to such financial statements which will state that as a result of the
contribution of Receivables to the Company, creditors of the Contributor should not rely on such Receivables as a source of payment for obligations of the Contributor. The Contributor will disclose the effects of the Transaction in accordance with
GAAP. 
  

	3.	Organization of the Company and the Limited Company Agreement 

  
 The Company is a special purpose limited liability company organized under the laws of the State of Delaware. The sole equity member of the Company is Memec. Pursuant to
the Limited Liability Company Agreement, the Company shall have [an] [two] independent director[s] for the period beginning on the date of the Limited Liability Company Agreement and ending on the date all amounts due under the Loan Agreement have
been paid in full. The independent director[s] may not be terminated until a successor thereto shall have been appointed. Any independent director shall be a Person who is not at the time of initial appointment and has not been at any time during
the preceding five years and shall not be at any time while serving as an independent director: (i) a direct or indirect legal or beneficial owner in the Company or any of its Affiliates (excluding de minimis ownership interest), (ii) a creditor,
supplier, employee, officer, director, family member, manager, or contractor of such entity or any Affiliate of any of them, or (iii) a person who controls (whether directly or indirectly or otherwise) such entity or its Affiliates or a creditor,
supplier, employee, officer, director, family member, manager, or contractor of such entity or any Affiliate of any of them. When making decisions, the independent director shall be required to consider the interests of the Company’s creditors.
As of the Effective Date, the independent directors of the Company are Donald J. Puglisi and [*]. 
  
 Pursuant to the Limited Liability Company Agreement, the Company is required to, among other things, (i) maintain its books, records, financial statements, stationery, invoices, accounting records, if any, and
organizational documents separate from those of its Affiliates and any other Person, (ii) maintain its assets, in such a manner that it is not costly or difficult to segregate, ascertain or identify 

  

			
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such assets, (iii) observe all organizational formalities under the Delaware Limited Liability Company Act and preserve its separate limited liability
company existence, (iv) hold itself out as a legal entity separate and distinct from any other entity, (v) allocate fairly and reasonably any overhead expenses that are shared with an Affiliate, including paying for office space and for services
performed by any employee of an Affiliate, and retain directly or indirectly a sufficient number of employees in light of its contemplated business operations, (vi) transact all business with Affiliates on terms and conditions that are intrinsically
fair and substantially similar to those that would be available on an arm’s-length basis with third parties other than any such party, (vii) conduct business in its own name, and maintain and utilize separate stationery, invoices and checks,
(viii) not commingle its funds or other assets with those of any Affiliate or any other Person, (ix) not guarantee or become obligated for the debt of any other person or entity or hold itself out to be responsible for the debts of any other Person
or entity, (x) pay its debts and liabilities out of its assets as the same shall become due, (xi) not make loans or advances to any other Person, (xii) not pledge its assets for the benefit of any other Person except as expressly permitted under the
Transaction Documents, (xiii) correct any known misunderstanding regarding its separate legal existence or identity, (xiv) maintain adequate capital for the normal obligations reasonably foreseeable in a business of its size and character and in
light of its contemplated business operations and (xv) maintain all required qualifications to do business in any state in which it conducts business. 
  
 Pursuant to the Limited Liability Company Agreement, the Company is not permitted to take any action set forth in items (a) through (h) below unless (i) such action is
otherwise expressly permitted under the Transaction Documents and (ii) such action has the unanimous consent of the directors of the Company (including the independent director[s]) and the members: 
  
 a. Terminate, dissolve or liquidate itself, except as provided in Section 27 of the Limited
Liability Company Agreement; 
  
 b. transfer, exchange, dispose of, or abandon, in
any transaction or series of transactions, Company properties or assets having a value in excess of 10% of the aggregate value of all Company properties and assets; 
  
 c. merge or consolidate with any other entity; 
  
 d. file a voluntary petition or otherwise initiate proceedings to have itself adjudicated bankrupt or insolvent, or consent to the institution of bankruptcy or insolvency
proceedings against itself, or file a petition seeking or consenting to reorganization or relief of itself as a debtor under any applicable federal or state law relating to bankruptcy, insolvency, or other relief for debtors with respect to itself;
or seek or consent to the appointment of any administrative agent, receiver, conservator, assignee, sequestrator, custodian, liquidator (or other similar official) of itself or of all or any substantial part of its properties and assets, or make any
general assignment for the benefit of 

  

			
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its creditors, or admit in writing its inability to pay its debts generally as they become due or declare or effect a moratorium on its debt or take any
action in furtherance of any such action; 
  
 e. confess a judgement against the
Company; or 
  
 f. assign rights in the Company property for other than a Company
purpose. 
  
 Prior to the date on which all amounts due under the Loan Agreement
have been paid in full, the members of the Company may not amend, alter, repeat or change any provision of the Limited Liability Company Agreement without the prior written consent of the Administrative Agent. 
  
 The sole equity member of the Company on the Effective Date shall be the Contributor. The
capitalization of the Company consists of the Receivables contributed to the Company pursuant to the Contribution Agreement. In the Contribution Agreement, the Contributor will agree not to permit the Company to sell any membership interest or other
equity interest to any Person until after the date on which all amounts due under the Loan Agreement have been paid in full. The members and the directors of the Company shall not be personally liable for the expenses, liabilities, debts, and
obligations of the Company, except as expressly provided for in the Delaware Limited Liability Company Act. 
  
 Each of the Company and the Contributor observes, and complies fully with, all corporate procedures required by its limited liability company agreement. Each of the Company and the Contributor, to the extent required
by the laws of its jurisdiction of organization, as applicable, maintains its valid existence and good standing under such jurisdiction. Each of the Company and the Contributor is qualified to do business in each jurisdiction in which the conduct of
its business so requires. 
  
 The Contributor will covenant and agree that it will
not institute against, or join any other Person in instituting against, the Company any insolvency or other similar proceedings. 
  

	II.	DISCUSSION 

  

	A.	True Contribution Discussion 

  

	1.	Introduction 

  
 Section 541 of the Bankruptcy Code provides that property of a debtor’s estate includes “all legal or equitable interests of the debtor in property as of the commencement of the case.” 11 U.S.C.
§541(a)(1). If the Contributor were to declare bankruptcy, the Contributor as a debtor-in-possession, a trustee in bankruptcy or a creditor of the Contributor might argue that the Receivables (which, for the avoidance of doubt, does not include
the Excluded Receivables, which are not being purchased by the Contributor from the Originators or contributed to the Company) have not been contributed 

  

			
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and are, therefore, part of the Contributor’s bankruptcy estate. Courts have recharacterized purported sales of assets as pledges in a variety of
circumstances. See, e.g., In re Navigation Technology Corp., 880 F.2d 1491, 1493 (1st Cir. 1989); Major’s Furniture Mart v. Castle Credit Corp., 602 F.2d 538, 545-46 (3d Cir. 1979); Levin v. City Trust Co. (In re Joseph Kanner Hat Co., Inc.),
482 F.2d 937, 940 (2d Cir. 1973). While Section 541 of the Bankruptcy Code provides that property in which the debtor has an interest is part of the debtor’s bankruptcy estate, the substantive determination of the property rights in particular
assets is generally governed, in the absence of controlling federal law, by state law. Butner v. U.S., 440 U.S. 48, 55 (1979). See also Barnhill v. Johnson, 503 U.S. 393, 398 (1992) (stating that “property” and “interests in
property” are “creatures of state law”). 
  
 We note that there is
no reported controlling judicial precedent, which analyzes the totality of factors present in the Transaction. We therefore examined decisions from a range of jurisdictions in which certain facts and circumstances present in this Transaction were
discussed and in which the distinction between a sale and a secured loan was analyzed more generally. Furthermore, existing reported judicial authority is not conclusive as to the relative weight to be accorded to the various factors present in this
Transaction, although we have emphasized in our analysis those factors which courts have noted as particularly important in determining whether a Transaction is a sale or a secured loan. We also note that certain authorities and decisions we have
examined are arguably inconsistent with the conclusions expressed in our opinion. These authorities and decisions are, however, distinguishable in the context of this Transaction. 
  
 In addition, we note that there is no definitive judicial authority conclusively characterizing transactions such as the contributions of
Receivables by the Contributor to the Company pursuant to the Contribution Agreement as either “true contributions” on the one hand or as a loan or some other transaction on the other hand, and thus our opinion on such contributions in
Section III (Opinions) below is based on the general principles enumerated in “true sale” cases construing the laws of various states and on the reasoning and subject to the limitations and qualifications in the following paragraphs.

  

	2.	Factors Considered in a True Sale Analysis 

  
 Courts have considered a variety of factors in determining whether an assignment creates a security interest or an absolute sale and have examined “all the facts and
circumstances surrounding the transactions at issue.” Bear v. Coben (In re Golden Plan of California, Inc.), 829 F.2d 705, 709 (9th Cir. 1986). Factors which courts have examined in making this determination include: the transfer of the risk of
loss, the transfer of the opportunity for gain, the form of the transaction, whether the transfer operates to discharge an underlying debt, the intent of the parties to the transaction, whether the transferor continues to service the transferred
assets and whether the transfer is recorded or notified to third parties. 
  

			
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 a. Recourse/Risk of Loss. Of these various factors, the transfer of the risk of loss is one of the most
important. Various courts have found that full recourse to the assignor is inconsistent with shifting the risk of loss to the assignee. For example, in Major’s Furniture Mart, the court found that full recourse to the assignor for
defaults on the assigned accounts meant that the assignee did not assume the risks of ownership of such accounts. Major’s Furniture Mart, 602 F.2d at 545. See also, In re Evergreen Valley Resort, Inc., 23 B.R. 659, 661 (Bankr. D. Me. 1982),
citing Major’s Furniture Mart and In re Bowen, 5 U.C.C. Rep. Serv. 261 (Bankr. D. Ore. 1968) for the proposition that a security interest is indicated where the assignee retains a right to recover a deficiency on the debt from the assignor if
the assignment does not provide sufficient funds to satisfy the amount of debt. Similarly, in Ables v. Major Funding Corp. (In re Major Funding Corp.), 82 B.R. 443, 448 (Bankr. S.D. Tex. 1987), the court held that a purported sale of
mortgages was really intended as a pledge to secure a loan where the assignor guaranteed a rate of return to the assignee and agreed to repurchase defaulted loans. 
  
 Courts have also found that, while recourse is an important factor indicating a secured loan, recourse alone, without any guarantee of
payment or other factors suggesting a secured loan, does not preclude a finding that an absolute assignment has occurred. The court in Major’s Furniture Mart, in setting out an often-cited and particularly thorough set of criteria for
analyzing a purported sale, noted in dictum that “the presence of recourse in a sale agreement without more will not automatically convert a sale into a security interest.” 602 F.2d at 544. The court also cited comment 4 to UCC Section
9-502 which states that “there may be a true sale of accounts or chattel paper although recourse exists.” 
  
 The court in In re Federated Dept. Stores, 1990 Bankr. Lexis 1557 (S.D. Ohio 1990), in holding that certain sales were “true arm’s-length sales”,
noted the following: (1) the purchaser in the case being reviewed bore the risk that the purchased receivables would prove uncollectible; (2) the purchaser had a very limited right of recourse against the sellers of the receivables that was not
related to any defaults in payment under such receivables; (3) the purchase price paid by the purchaser for the receivables reflected the fair market value of such receivables; (4) valid business reasons existed for not notifying account obligors of
the sale of their accounts; and (5) the purchaser and the sellers intended the purchases of the receivables to be true sales and not lending transactions. Id. at 3-4. See also In re Golden Plan of California, Inc., 829 F.2d at 709 (in spite of
arrangement for advances by seller on account of delinquent payments, investors receiving no contractual guarantee or compensation in case of foreclosure on underlying assets were absolute owners of instruments) and Goldstein v. Madison Nat’l
Bank of Washington, D.C., 89 B.R. 274, 277 (D.D.C. 1988) (recourse provision was not dispositive). 
  
 The Contribution Agreement conveys the Contributor’s interest in the Receivables to the Company without stated recourse to the Contributor for failure by the Obligors to make required payments. No 

  

			
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pre-existing debt is owed by the Contributor to the Company which could be satisfied by payments from sources other than the Receivables. 
  
 Furthermore, except for (a) a “clean-up” call option when the Receivables
contributed by any Contributor aggregate less than 10% of the average Principal Amount of Receivables contributed by the Contributor over the period of 12 months ended 30 days prior to the date of such reconveyance and (b) the obligation to
repurchase Receivables contributed by the Contributor in violation of certain representations and warranties relating to the eligibility of such Receivables and the absence of certain Liens with respect thereto, the Contributor has no right or
obligation under the Contribution Agreement to repurchase from the Company any Receivables or to rescind or otherwise retroactively effect any contribution of any Receivables after the Contribution Date therefor. These exceptions are standard in
transactions of this type and do not shift the risk of collectability of the Receivables to the Contributor. 
  
 The fact that the Contributor has certain obligations to indemnify the Company, the Administrative Agent and certain other parties for failure to perform their respective obligations under the Contribution Agreement
and the other Transaction Documents might be argued to be a form of recourse. The Contributor may also fund the Stamp Duty Reserve Account established pursuant to the Loan Agreement to protect the Lenders from losses resulting from the imposition of
stamp duty on transfers of the Receivables from the UK Originator to the Contributor and from the Contributor to the Company. However, such limited indemnification obligations, do not relate to the credit quality of the Receivables or the ultimate
credit risk of the Receivables which risk will be to the Company under the Contribution Agreement and ultimately to the lenders under the Loan Agreement. 
  
 In the event that the Contributor or an Affiliate thereof (including any of the Originators) is acting as a servicer with respect to such Receivables, the portion of the
Servicing Fee payable to the Contributor or such Affiliate thereof with respect to such Receivables shall be subordinated until amounts due under the Loan Agreement shall have been paid in full. A court could find that, because it is unlikely that a
third-party servicer would agree to such a provision, such subordination effectively constitutes recourse to the Contributor (or such Affiliate). However, because of the relatively small size of the Servicing Fee (1% of the outstanding Receivables)
and the other positive factors outlined above this factor should not be dispositive in a court’s analysis. 
  
 b. Opportunity for Gain. Another important factor courts have examined in determining whether a transaction constitutes a secured financing or a sale is whether
the assignor has transferred all opportunity for gain with respect to the assets. Where the assignee must account to the assignor for any surplus received from the assignment over the bargained-for amount, courts have held such factor to indicate
that the transaction constitutes a secured financing. See In re Evergreen Valley Resort, Inc., 23 B.R. at 661, citing Gold Coast Leasing Co. v. California Carrots, Inc., 93 Cal. App. 3d 274, 279 (1979). For example, the court in In re Carolina
Utilities Supply Co., Inc., 118 B.R. 

  

			
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412, 416-17 (Bankr. D.S.C. 1990), noting that the bank purporting to purchase accounts receivable from the company had to account to the company for any
surplus collected on each account over 80% of the invoice amount which the bank initially advanced to the company, found that the accounts were security for a loan by the bank to the company. See also, U.C.C. §9-502(2) (“If the security
agreement secures an indebtedness, the secured party must account to the debtor for any surplus.”). 
  
 In the Transaction, the Company has no obligation to remit any Collections on the Receivables back to the Contributor unless and only to the extent that a Receivable constitutes an Ineligible Receivable that is not a
Designated Ineligible Receivable and the Contributor has repurchased such Ineligible Receivable as a result of a material breach of a representation or warranty, in which event, any Collections with respect thereto will be remitted by the Collection
Agent to the Contributor. Other than as set forth in the preceding sentence, all Collections (including Collections in respect of Designated Ineligible Receivables) will be for the sole benefit of the Company (subject to the rights of the
Administrative Agent in respect thereof pursuant to the Loan Agreement). The Contributor is not entitled to any surplus or gain in respect of the Collections (including Collections in respect of Designated Ineligible Receivables). There is no
guarantee by the Contributor as to the minimum or maximum “rate of return” to the Company and no mechanism to limit how much of the Collections the Company receives. The Company has no direct payment obligation to the Contributor with
respect to the Receivables. 
  
 c. Form of Transaction/Documentation. The
form of the transaction has also been found to be an important, although not dispositive, factor in determining whether a transaction is an assignment for security or a true sale. While substance is more important than form, Major’s
Furniture Mart, 602 F.2d at 543, courts have given varying degrees of weight to the language used in the transaction documentation. See, e.g., In re Golden Plan of California, Inc., 829 F.2d at 709 (documentation language found by court to
indicate that absolute ownership was transferred); See also In re Bevill, Bresler & Schulman Asset Management Corp., 67 B.R. 557, 597-98 (D.N.J. 1986) (form very important in determining whether repurchase agreement was sale or secured loan,
particularly where parties to agreement were sophisticated). In TKO Equip. Co. v. C&G Coal Co., 863 F.2d 541, 545-46 (7th Cir. 1988), the court enforced an agreement containing an express written disavowal that the parties created any
security interests, particularly in light of the fact that a third party creditor was found to have relied on such language. 
  
 The Contribution Agreement uses the form and language of a full disposition by way of contribution. The Contributor is a commercially sophisticated party and the
Contribution Agreement clearly states that the conveyance of the Receivables is intended to be a true conveyance, and not a pledge to secure a loan. The Contributor has no obligation to satisfy from its own funds the obligations of the Obligors. The
Contributor does not maintain any meaningful benefits of ownership with respect to the Receivables, other than through its equity interest in the Company. The Contributor and the 

  

			
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Company will treat the Transaction as a conveyance and contribution of the Receivables for all tax, accounting and regulatory purposes, with the effect that
the Receivables will not be carried as assets on the books, records or individual financial statements of the Contributor; provided, however, that where consolidated financial statements of the Contributor are prepared, the conveyance of the
Receivables will be indicated through a footnote to such financial statements. The financing statements filed to perfect the ownership interest of the Company in the Receivables will reflect a conveyance and contribution of the Receivables and not
the grant of a security interest. The Administrative Agent and certain other parties have made their investment in reliance on the treatment of the Transaction by the Contributor and the Company as a contribution and not a secured loan. 

 
 d. Intent. The form of the transaction is closely linked in judicial decisions with
the intent and the behavior of the parties. Where commercially sophisticated parties have characterized transactions as sales and have acted in accordance with that characterization, many courts have given presumptive weight to that
characterization. See, e.g., Kasuba v. Realty Income Trust (In re Kasuba), 562 F.2d 511, 514-15 (7th Cir. 1977) (the intent of the parties is controlling as long as the stated intent is supported by the facts); see also Tavormina v. Aquatic Co. (In
re Armando Gerstel, Inc.), 65 B.R. 602, 604 (S.D. Fla. 1986), citing Hassett v. Revlon, Inc. (In re O.P.M. Leasing Servs., Inc.), 23 B.R. 104, 115-16 (Bankr. S.D.N.Y. 1982) (“the intent of the parties governs whether a particular document or
transaction creates a security interest or an assignment”). The Contribution Agreement provides that it is intended that the contribution of the Receivables by the Contributor to the Company be a true conveyance rather than a secured loan. The
factors discussed above with respect to the form and structure of the Transaction are further evidence of this intent. 
  
 e. Servicing and Other Activities. In addition to stated intent, behavior such as servicing of the assets has been found by courts to be indicative of the
substance of the transaction. See, e.g., In re Mid Atlantic Fund, Inc., 60 B.R. 604, 608 (Bankr. S.D.N.Y. 1986) (“Creditors failed to act as if they were the absolute owners . . . by recording the assignment or by demanding payment from the
mortgagees”); see also In re Alda, 327 F. Supp. 1315, 1317 (S.D.N.Y. 1971) (court found petitioner was not a joint venturer with ownership interest in bankruptcy estate because petitioner failed to file financing statements, debtor continued to
control and manage accounts receivable and accounts were not segregated). Courts have varied the importance given to various activities of assignors and assignees in determining how a transaction should be characterized. Courts have found
transactions to be sales where notice was not given to obligors and the assignor continued to service the assigned assets. McVay v. Western Plains Serv. Corp., 823 F.2d 1395, 1398-99 (10th Cir. 1987) (loan participation transferred entire equitable
interest to participating banks even where lead bank continued to service the loan); In re Golden Plan of California, Inc., 829 F.2d at 707 (seller received fee for arranging and servicing loans). Courts that cited the retention by an assignor of
servicing duties as a factor indicating a loan also seemed to rely on the full recourse nature of the transactions as well as other factors, such as the commingling of account proceeds with general operating funds. 

  

			
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See, e.g., People v. Service Inst., Inc., 101 Misc. 2d 549, 552 (1979) (non-notification of account obligors and seller/servicer’s failure to hold
proceeds in separate account are evidence that assignment is for security); In re Major Funding Corp., 82 B.R. at 448 (seller/servicer had repurchase obligation upon account debtor default and also had commingled collection accounts); Blackford v.
Commercial Credit Corp., 263 F.2d 97, 106 (1959) (servicing by seller is one of several factors mentioned, including full recourse and a guaranteed rate of return). 
  
 As stated above, unless an Originator Termination Event has occurred and is continuing, the Obligors will not be notified of the
Transaction. Documentation such as accounting records will treat the Transaction as a conveyance, with the effect that the Receivables will not be carried as an asset in the consolidating financial statements or other accounting records of the
Contributor. Financing statements evidencing the Company’s ownership interest in the Receivables will be filed on or prior to the Effective Date. Pursuant to the Loan Agreement, the Administrative Agent has appointed the Collection Agent as its
agent for servicing, administering and collecting the Receivables, and the Collection Agent has appointed the Originators as Sub-Collection Agents pursuant to the U.S. Receivables Purchase Agreement. Other than with respect to the Atlas Receivables
during the Atlas Transition Period, all Obligors shall make payments on all Receivables to the applicable Lock-Box Account. Any Collections (including Collections in respect of Designated Ineligible Receivables) relating to the Receivables received
by the Collection Agent will be deposited to the applicable Lock-Box Account in accordance with the applicable provisions of the Loan Agreement. As noted above, the Collection Agent may modify the terms of the Receivables only under certain limited
circumstances. Such modifications must arise as the result of a request of an Obligor, or as required by any Requirement of Law or if such Dilution Adjustment does not cause the Receivable to cease to be an Eligible Receivable. This modification
right constitutes a customary and reasonable delegation where an owner of receivables requires a third party to provide servicing and collection services to it. 
  

Upon an occurrence of a Collection Agent Default, the Administrative Agent, as assignee of the Company, may appoint any Person to succeed the Collection Agent. All
transfers of Collections from the Lock-Box Accounts to the other Transaction accounts shall be made by the Collection Agent in accordance with the terms of the Loan Agreement. The Collection Agent shall have no right or interest in the Lock-Box
Accounts or the other Transaction accounts. 
  
 In addition, on and after the
Termination Date, all Obligors may be notified by the Administrative Agent to make payments of all amounts payable under the Receivables directly to an account designated by the Administrative Agent. The Contributor will maintain a record-keeping
system with respect to the Receivables that will clearly and unambiguously indicate that such Receivables have been contributed, assigned, conveyed and transferred to the Company, and, thereupon, a security interest has been granted to the
Administrative Agent by the Company. In sum, the servicing activities of the Contributor will be conducted on behalf of the Company and the 

  

			
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Administrative Agent and collection and accounting procedures will clearly indicate that the Company is the owner of the Receivables. 
  
 f. Octagon. We are aware of the opinion of the court in Octagon Gas Systems, Inc.
v. Rimmer, 995 F.2d 948 (10th Cir.), cert. denied, 114 S.Ct. 554 (1993). In Octagon, the court concluded that because Article 9 of the UCC requires any purchase of accounts to be perfected, a sale of accounts is therefore treated
under the UCC as a security interest in the accounts and any such accounts thus remain the property of the debtor’s bankruptcy estate. We note that Memec has its chief executive office in San Diego, California, a state in the Ninth Circuit.

  
 We do not believe that a bankruptcy court properly applying the principles of
Article 9 of the UCC in a proceeding in which the Contributor was the debtor would follow Octagon. The Court’s decision in Octagon is inconsistent with the stated language and intent of the UCC, which clearly contemplates sales of
accounts. Section 9-502(2) of the UCC, for example, states that “if the underlying transactions was a sale of accounts or chattel paper, the debtor is entitled to any surplus . . . only if the security agreement so provides.” Comment 4 to
Section 9-502(2) further states that “the determination whether a particular assignment constitutes a sale or a transfer for security is left to the courts.” 
  
 Various commentators have taken the view that, notwithstanding the decision of the court in Octagon, accounts may be sold. In fact,
Permanent Editorial Board Commentary No. 14 on the UCC rejects Octagon and amends Comment 2 to Section 9-502 to make clear that the UCC does not prevent, or even govern whether there is, a sale of accounts. 
  
 We believe that Octagon was wrongly decided and that, in a properly presented case in
which the facts and assumptions relied herein are established, a court not bound by Octagon would decline to adopt its reasoning. You should recognize, however, that if Octagon were followed, it could result in a conclusion that the
Receivables remained “property of the estate” of an Originator under Section 541 of the Bankruptcy Code. We note that courts in the Ninth Circuit, which has jurisdiction in California, the principal place of business of the Originators,
are not bound by Octagon, a decision of the Tenth Circuit. 
  

	B.	Substantive Consolidation Discussion 

  
 Substantive consolidation is a judicially created doctrine arising from the general equity powers granted to the federal bankruptcy courts. Under the doctrine of
substantive consolidation, a bankruptcy court may, if appropriate circumstances are determined to exist, consolidate the assets and liabilities of different entities by merging the assets and liabilities of an entity affiliated with the debtor into
the debtor’s estate and treating the related entities as one consolidated entity for purposes of the bankruptcy proceedings. This power is implemented by Section 105(a) of Title 11 of the 

  

			
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Bankruptcy Code which provides, in pertinent part, that “(t)he court may issue any order, process, or judgement that is necessary or appropriate to
carry out the provisions of this title.” 
  
 Decisions regarding substantive
consolidation are made on a case-by-case basis and reflect the court’s analysis of the particular factual circumstances presented. A court’s inquiry requires an examination of the structures of the entities proposed to be consolidated and
their relationships with their respective creditors, affiliated entities and third parties. 
  
 Circumstances in which substantive consolidation has been ordered include cases where it can be shown that (i) one or more entities are merely “instrumentalities” of one another or (ii) creditors justifiably
relied upon the credit or financial condition of separate business entities as if they were one business entity. Where related entities have done an inadequate job of maintaining separate records and observing other formalities of separate
existence, courts are more likely to find reasonable the expectations of the creditors that the assets of the second entity should be available to satisfy the indebtedness to creditors of the first entity. Orders for substantive consolidation have
also been issued where the inter-relationships of entities are hopelessly obscured and the time and expense necessary to attempt to unscramble them are so substantial as to threaten the realization of any assets for creditors. 
  
 In determining whether or not to order substantive consolidation, the courts have
traditionally considered certain objective factors, including: 
  

	1.	the commingling of assets and business functions, including failure to maintain separate bank accounts; 

  

	2.	the difficulty of segregating and ascertaining individual assets and liabilities; 

  

	3.	the existence of parent and intercorporate guarantees on loans; 

  

	4.	the transfer of assets without observance of corporate formalities; 

  

	5.	the presence or absence of consolidated financial statements and of separate, complete and accurate books and records; 

  

	6.	the unity of interests and ownership between the various corporate entities; and 

  

	7.	the profitability of consolidation at a single physical location. 

  
 Because decisions regarding substantive consolidation are made on a case-by-case basis by a court of equity, there is no certainty as to the factors on which a court will
focus in a particular case. However, the reported cases decided to date suggest that the existence of some, or even most, of the factors listed above should not, by themselves, result in the application of the substantive 

  

			
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consolidation doctrine. Moreover, even where these factors are present to some extent, recent reported cases suggest that substantive consolidation should be
ordered only when the benefits of substantive consolidation outweigh the prejudice to creditors that would result from such consolidation. Thus, under this balancing test, the objective factors are just one element in the overall proof of the
necessity or desirability of consolidation. 
  
 The burden of demonstrating that
the factors favoring substantive consolidation are present is on the party requesting consolidation. Such party must also show that substantial prejudice results from the maintenance of corporate separateness and that no injustice or frustration of
a bankruptcy reorganization would occur as a result of consolidation. Where a creditor has looked solely to the credit or assets of one entity, recent cases applying this balancing test recognize that such creditor may have valid grounds to oppose
consolidation. 
  
 Although the cases demonstrate that no single factor is
determinative, factors that are generally considered to be of central importance are hopeless confusion of assets and liabilities, substantial integration of operations of the affiliated entities and creditor confusion as to the true obligor caused
by the debtor and resulting in injury to the creditor. 
  
 On the basis of the
facts and assumptions set forth herein, we believe that at least six of the seven factors listed above (factors 1, 2, 3, 4, 5 and 7) have little or no applicability here and factor 6, although present here to a certain degree, when properly analyzed
should not lead a court to substantively consolidate the Contributor and the Company. 
  
 With regard to the first factor, we note that the Transaction Documents and the Limited Liability Company Agreement prohibit commingling of the assets or business functions of the Contributor and the Company. 
  
 With regard to the second factor, it should not be difficult, at any time, to segregate and
ascertain the individual assets and liabilities of Contributor and the Company, since the Transaction Documents and the Limited Liability Company Agreement require the books and records, financial statements and accounting records of the Company to
be maintained separate from any other Person or entity. 
  
 With regard to the
third factor, our understanding is that there will be no loans, interparty guarantees on any loans to or other obligations of the Contributor by the Company, and no loans, interparty guarantees on any loans to or other obligation of the Company by
the Contributor. It should be noted that subordination of the Servicing Fee could be viewed by a court as indirect support by the Contributor of the Company. However, because of the relatively small size of the Servicing Fee (1% of the outstanding
Receivables) and the other positive factors outlined in this section, this factor should not be dispositive in a court’s analysis. 
  
 With regard to the fourth factor, we note that (a) all arrangements and agreements between the Contributor and the Company, other than with respect to the Servicing Fee,
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not more favorable than the terms and conditions that could have been obtained, under similar circumstances, from unaffiliated Persons, (b) there will be no
commingling of assets between the Contributor and the Company, (c) there will be no transfers of assets (other than on an arm’s length basis) between the Contributor and the Company and (d) all other corporate formalities between the
Contributor and the Company will be observed. 
  
 With regard to the fifth factor,
we believe that this factor relates to concern that the presence of consolidated financial statements would make it impossible for those creditors who read such statements to ascertain which assets were owned by which corporation within the
consolidated group. The Company will maintain its financial statements, accounting records and other entity documents separate from any other Person or entity, and the financial statements delivered by the Contributor to their creditors will not
include assets of the Company. Any consolidated financial statements of the Contributor and the Company will indicate through a footnote the conveyance of the Receivables to the Company. 
  
 With regard to the sixth factor, the “unity of interests and ownership,” is based upon considerations relating to creditors’
perception of the entities. This factor also should not support an attempt to substantively consolidate the Contributor and the Company, provided the Contributor and the Company hold themselves out and operate as separate entities and otherwise
comply with the Transaction Documents and the Limited Liability Company Agreement (in the case of the Company). Although the Contributor owns all of the Company’s outstanding equity interests, § 18-701 of the Delaware Limited Liability
Company Act recognizes the distinction between the ownership of a limited liability company interest and of the assets of such limited liability company. 
  
 The seventh factor goes to the question of whether, in a reorganization of the Contributor or the Company, it would be more economically efficient to operate the
different entities as a single entity. Offices of the Contributor and the Company will be physically located on the same premises. However, the Contributor and the Company shall maintain separate books and accounts and allocate fairly and reasonably
shared office space and shall use separate invoices, stationery and checks. We do not believe the fact that the offices of certain of the transaction parties are located on the same premises, when weighed against all other circumstances noted above
that are indicative of the existence of the parties as separate and apart from each other, should result in substantive consolidation. We again note that the presence of even several of the above factors does not require substantive consolidation.
Therefore, even if a court were to conclude that any of the parties could be profitably consolidated at a single physical location, we would not expect such court, after properly analyzing the intercompany relationships between the parties within
the framework of the above factors, to order substantive consolidation based upon such seventh factor. 
  
 Furthermore, the Contributor has business operations that are separate and distinct from the operations of the Company. Moreover, the Contributor has determined that the transactions with the Company and the
transactions contemplated by the Transaction Documents constitute a prudent and 

  

			
	 To the Persons listed on Schedule I hereto
 [ Ÿ ],
2000
	  	Page 21

  

 
advisable course of action designed to improve the financial position of the Contributor that will not impair the rights of creditors of the Contributor.

  
 Neither the Contributor nor any Affiliate of the Contributor has received
credit from any entity based upon any representations from the Contributor or any Affiliate of the Contributor that the assets of the Company at the time of such extension of credit were owned by the Contributor or any Affiliate of the Contributor.

  
 Thus, the Company is not a mere instrumentality of the Contributor, nor are
the affairs of the Contributor and the Company so entangled that it would be costly and time consuming to untangle them. Although the Contributor is liable for the federal income tax liabilities of the Company because of the federal tax treatment of
limited liability companies, such circumstances arise from a prescribed regulatory scheme and are not probative of whether the assets and liabilities of the Contributor and the Company are sufficiently separate for substantive consolidation
purposes. Because the Contributor and the Company will be operated as separate entities, and particularly because all financial statements of the Contributor will disclose the separate legal entity status of the Company and that the assets of the
Company are not available to satisfy the claims of creditors of the Contributor or any Affiliate of the Contributor, creditors of the Contributor will not be able to argue persuasively that they dealt with the Contributor and the Company as a single
entity. 
  
 If a proponent of substantive consolidation establishes a prima facie
case in favor of consolidation, the burden shifts to an objecting creditor to show that it relied on the separate credit of the entities to be consolidated and will be prejudiced by substantive consolidation. If an objecting creditor makes this
showing, then the court must determine whether the demonstrated benefits of consolidation “heavily” outweigh the harm, and where creditors rely on the separate existence of corporate entities in extending credit, or would suffer more than
minimal harm from disregarding such separate existence, courts have ruled that the balance of equities weighs against substantive consolidation. 
  
 The Administrative Agent and certain other parties have reasonably relied upon the separate existence of the Contributor and the Company and the credit of the
Contributor, and upon the ownership by the Company of its assets, when it entered into the transactions contemplated by the Transaction Documents. The Administrative Agent and certain other parties would be prejudiced by substantive consolidation.
While at this time the benefits of substantive consolidation cannot be known, there would appear to be few, if any, equities on the side of creditors of the Contributor who knew, by virtue of the facts described above, that the assets of the Company
were not available to satisfy their debts, but who would be arguing nonetheless in favor of substantive consolidation. Finally, creditors of the Contributor prior to the date hereof who were aware of the existence of the Company were not led to
believe by the Company or any Affiliate of the Company that any of such entities was responsible for any debts of the Contributor. Neither the Contributor nor any Affiliate of the Contributor have received credit from any entity based upon any
representations from the Contributors or any Affiliate of the Contributor that the assets of the Company at the time of such 

  

			
	 To the Persons listed on Schedule I hereto
 [ Ÿ ],
2000
	  	Page 22

  

 
extension of credit were owned by the Contributor or any Affiliate of the Contributor. Substantive consolidation is an equitable doctrine, and under these
circumstances a court should not conclude that the benefits heavily outweigh the harm. 
  

	III.	OPINIONS EXPRESSED 

  
 Based on the reasoning and the facts and on the assumptions, qualifications and limitations set forth in this letter, it is our opinion that in a properly presented and argued case, in the event of the bankruptcy of
the Contributor, a federal bankruptcy court would find that the contribution of the Receivables by the Contributor to the Company in the manner set forth in the Contribution Agreement would constitute a true conveyance of such Receivables and not a
borrowing by the Contributor secured by such Receivables, and therefore, such Receivables would not be the property of the Contributor’s bankruptcy estate under Section 541 of the Bankruptcy Code. In the event it were asserted that the
beneficial interest in and legal title to the Receivables was part of the Contributor’s bankruptcy estate, we express no opinion as to how long the Company or an assignee thereof would be denied possession of such Receivables or how long the
Company or an assignee thereof would be denied possession of the Collections in the Contributor’s possession before the validity of such assertion could be finally decided. We also express no opinion as to whether, in the event it were asserted
that the beneficial interest in and legal title to the Receivables and the Collections were part of the Contributor’s bankruptcy estate, a court would permit the Contributor to use Collections in the Contributor’s possession without the
consent of the Company or an assignee thereof, either before deciding the issue or pending appeal after a decision adverse to the Company or such assignee. 
  
 Based on the reasoning and the facts and on the assumptions and limitations set forth in this letter, it is our opinion that in a properly presented and argued case, a
federal bankruptcy court would not, on a motion of the Contributor as debtor in possession, or of a creditor, receiver, conservator or trustee of the Contributor, disregard the separate existence of the Company and order the assets and liabilities
of the Company, to be substantively consolidated with those of the Contributor. 
  
 We note, however, that substantive consolidation is an equitable doctrine and that courts have accorded different degrees of importance to the factual elements before them in determining whether to exercise their equitable power to order
substantive consolidation. Accordingly, there can be no assurance that a court, in exercising its discretionary equitable power, could not reach a conclusion contrary to the opinion expressed herein. 
  
 We also express no opinion as to the availability or effect of a preliminary injunction,
temporary restraining order or other such temporary relief affording delay pending a determination on the merits; by such reservation, however, we do not imply that we have undertaken any analysis to determine whether any such equitable relief would
be available to prevent enforcement of the Transaction. 
  

			
	 To the Persons listed on Schedule I hereto
 [ Ÿ ],
2000
	  	Page 23

  

 All of the analysis and its conclusions contained in this letter are based on, and limited to, the law and the
structure of the Transaction in effect as of the date of this letter. We also note that a court’s decision regarding matters covered by our opinions in this letter will be based on the court’s own analysis and interpretation of the factual
evidence before such court and of legal principles applicable at such time. 
  
 We
are members of the bar of the State of New York and we express no opinion herein as to any matters governed by any laws other than the law of the State of New York and the Federal laws of the United States of America. 
  
 This opinion is rendered only to you and is solely for your benefit in connection with the
Transaction contemplated in the Contribution Agreement and the other Transaction Documents. It may not be relied upon by you for any other purpose, or quoted to or relied upon by any other person, firm or corporation for any purpose, and, without
our prior written consent, may not be transmitted or disclosed to any other person save to Standard & Poor’s Ratings Services, a division of the McGraw Hill Companies, Inc., and Moody’s Investor Services, Inc., who may rely on this
opinion as if it were addressed to them, and their respective legal advisors. 
  
 Very truly yours, 
  

 Schedule I 
  

Addressees 
  
 The Chase Manhattan Bank, as Administrative Agent 
 [Address] 
  
 Triangle Receivables Funding LLC 
 c/o Memec, LLC 
 [Address] 
  
 Memec, LLC 
 [Address] 
  
 Park Avenue Receivables Corporation,

 [Address] 
  
 Sheffield Receivables Corporation, 
 [Address] 
  

 Schedule II 
  
 List of Documents Reviewed by 
 Clifford Chance Rogers & Wells LLP 
  

	1.	Contribution Agreement dated as of [ • ], 2000, between the Contributor and the Company. 

  

	2.	Asset Backed Loan Agreement dated as of [ • ], 2000, among the Administrative Agent, the Company, the CP Conduit Lenders, Certain APA Banks and Barclays Bank plc, as Sheffield
Funding Agent. 

  

	3.	Limited Liability Company Agreement dated October [ • ], 2000, among Memec, LLC, as sole equity member, and Donald J. Puglisi, as special member. 

  

	4.	Legal opinions of Richards, Layton & Finger, special Delaware counsel for the Company and the Contributor, dated [ • ], 2000, forms of which are attached hereto as Exhibit
B. 

  

	5.	Legal opinion of Farella Braun & Martel, special California counsel for the Company, dated [ • ], 2000, a form of which is attached hereto as Exhibit C.

  

	6.	Certificate of solvency of [    ], chief operating officer of Memec, LLC, dated [ • ], 2000, a form of which is attached hereto as Exhibit A.

  

	7.	Unfiled copies of the UCC-1 financing statements (together with the Schedule attached thereto) naming Memec, LLC as “Contributor” and Triangle Receivables Funding LLC as
“Contributee” and describing the Contribution Agreement and the Receivables to be contributed thereunder, which will be filed in the State of California. 

  

 Exhibit A 
  

Solvency Certificate 
 of

 Memec LLC 
  

			
	 To:
	  	Triangle Receivables Funding LLC
	 	  	The Chase Manhattan Bank, as Administrative Agent
	 Attention:
	  	[ l ]
	 Facsimile:
	  	[ l ]

  
 I, [ l ], a duly elected manager of MEMEC LLC (the “Contributor”) hereby certify (in my capacity as a manager of the Contributor) in connection with the
contribution of certain Receivables on the date hereof to the Company (as defined herein) pursuant to that certain Contribution Agreement dated as of [ l ], 2000 (the “Contribution Agreement”), among the Contributor, and Triangle Receivables Funding LLC], as the Company (the “Company”) as follows: 
  
 The fair value of the assets of the Contributor at a fair valuation exceeds the debts and
liabilities (whether subordinated, contingent or otherwise) of the Contributor. The assets of the Contributor do not constitute unreasonably small capital to conduct the business in which it is engaged as such business is now conducted and is
proposed to be conducted. The present fair saleable value of the property of the Contributor will be greater than the amount that will be required to pay the probable liability of the Contributor on its debts and other liabilities, subordinated,
contingent or otherwise, as such debts and other liabilities become absolute and matured. The Contributor does not intend to, or believe that it will, incur debts beyond its ability to pay such debts as they mature, taking into account the timing of
and amounts of cash to be received by the Contributor and the timing of the amounts of cash to be payable on or in respect of its indebtedness. The Contributor does not contemplate the commencement of insolvency, bankruptcy, liquidation or
consolidation proceedings or the appointment of a receiver, liquidator, conservator, trustee or similar official in respect of the Contributor or any of its assets or revenue. 
  
 Capitalized terms used herein but not otherwise defined shall have the respective meanings assigned to such terms in the Contribution
Agreement. 
  
 IN WITNESS WHEREOF, I have signed and delivered this
solvency certificate this [ l ] day of [ l ]. 
  

			
	MEMEC LLC,
	as Contributor
		
	 By:
	 	 
	 	 	 Name

	 	 	 Title:

  

 Exhibit B 
  

Form of Legal Opinions of Delaware Counsel 
  

 Exhibit C 
  

Form of Legal Opinion of California Counsel 
  

 Schedule 3.1(j) 
  

 Form of Solvency Certificate 
  

			
	To:	  	Triangle Receivables Funding LLC
The Chase Manhattan Bank, as Administrative Agent
	Attention:	  	[ l ]
	Facsimile:	  	[ l ]

  
 I, [ l ], a duly elected manager of MEMEC LLC (the “Contributor”) hereby certify (in my capacity as a manager of the Contributor) in connection with the
contribution of certain Receivables on the date hereof to the Company (as defined herein) pursuant to that certain Contribution Agreement dated as of [ l ], 2000 (the “Contribution Agreement”), among the Contributor, and Triangle Receivables Funding LLC], as the Company (the “Company”) as follows: 
  
 The fair value of the assets of the Contributor at a fair valuation exceeds the debts and
liabilities (whether subordinated, contingent or otherwise) of the Contributor. The assets of the Contributor do not constitute unreasonably small capital to conduct the business in which it is engaged as such business is now conducted and is
proposed to be conducted. The present fair saleable value of the property of the Contributor will be greater than the amount that will be required to pay the probable liability of the Contributor on its debts and other liabilities, subordinated,
contingent or otherwise, as such debts and other liabilities become absolute and matured. The Contributor does not intend to, or believe that it will, incur debts beyond its ability to pay such debts as they mature, taking into account the timing of
and amounts of cash to be received by the Contributor and the timing of the amounts of cash to be payable on or in respect of its indebtedness. The Contributor does not contemplate the commencement of insolvency, bankruptcy, liquidation or
consolidation proceedings or the appointment of a receiver, liquidator, conservator, trustee or similar official in respect of the Contributor or any of its assets or revenue. 
  
 Capitalized terms used herein but not otherwise defined shall have the respective meanings assigned to such terms in the Contribution
Agreement. 
  
 IN WITNESS WHEREOF, I have signed and delivered this
solvency certificate this [ l ] day of [ l ]. 
  

			
	 MEMEC LLC,
 as Contributor

		
	 By:
	 	 
	 	 	 Name:

	 	 	 Title:

  

 Schedule 4.1(n)(i) 
  

 Location of Books and Records 
  

 Schedule 4.1(n)(i)(ii) 
  

 Chief Executive Office 
  

 Schedule 4.1(p)(i) 
  

 Other Business Names 
  

 Schedule 8.1 
  

 Accounts 
  

With respect to the Contributor: 
  
 With respect to the Company: 
  

 EXHIBIT M 
  

FORM OF U.S. RECEIVABLES PURCHASE AGREEMENT 
  

 CLIFFORD CHANCE         
 ROGERS & WELLS LLP 
  
 INSIGHT ELECTRONICS LLC, 
 IMPACT SEMICONDUCTOR
TECHNOLOGIES LLC and 
 UNIQUE SEMICONDUCTOR TECHNOLOGIES INC., 
 as Originators and Sub-Collection Agents 
  
 And 
  
 MEMEC LLC, 
 as Purchaser 
  

  
 U.S. RECEIVABLES PURCHASE AGREEMENT 
  

  

 - 1 - 

 CONTENTS 
  

					
	Article

	  	Page

			
	1.	  	 Definitions
	  	1
			
	2.	  	 Purchase And Sale Of Receivables
	  	9
			
	3.	  	 Conditions To Purchases
	  	13
			
	4.	  	 Representations And Warranties
	  	15
			
	5.	  	 Affirmative Covenants
	  	21
			
	6.	  	 Negative Covenants
	  	25
			
	7.	  	 Termination
	  	28
			
	8.	  	 Miscellaneous
	  	31
			
	9.	  	 Administration And Collections
	  	34
			
	10.	  	 Additional Originators
	  	35

  

					
	 	  	 SCHEDULE 2.1(d)
	  	 Originator Daily Reports

			
	 	  	 SCHEDULE 3.1(e)(i)(a)
	  	 Form of California Counsel Opinion

			
	 	  	 SCHEDULE 3.1(e)(i)(b)
	  	 Form of California Counsel Opinion

			
	 	  	 SCHEDULE 3.1(e)(ii)
	  	 Form of New York Counsel Opinion

			
	 	  	 SCHEDULE 3.1(e)(iii)
	  	 Form of Delaware Counsel Opinion

			
	 	  	 SCHEDULE 3.1(f)
	  	 Form of Bankruptcy Opinion

			
	 	  	 SCHEDULE 3.1(j)
	  	 Form of Solvency Certificate

			
	 	  	 SCHEDULE 4.1(n)(i)
	  	 Location of Books and Records

			
	 	  	 SCHEDULE 4.1(n)(ii)
	  	 Chief Executive Office

			
	 	  	 SCHEDULE 4.1(p)(i)
	  	 Other Business Names

  

 - 1 - 

 RECEIVABLES PURCHASE AGREEMENT (this “Agreement”) dated as of [ • ], 2000 
  
 AMONG 
  

	(1)	INSIGHT ELECTRONICS LLC, a Delaware limited liability company, IMPACT SEMICONDUCTOR TECHNOLOGIES LLC, a Delaware limited liability company, and UNIQUE SEMICONDUCTOR
TECHNOLOGIES INC., a California corporation (collectively with any Additional Originators, the “Originators”); and 

  

	(2)	MEMEC LLC, a Delaware limited liability company, as Purchaser (the “Purchaser”). 

  
 WHEREAS 
  

	(A)	The Originators have at present and expect to have in the future Receivables owed to them that arise in the ordinary course of their business. 

  

	(B)	The Originators intend to sell to the Purchaser and the Purchaser intends to purchase from the Originators, in each case pursuant to the terms hereof, certain Receivables originated
by the Originators. 

  

	(C)	Pursuant to a Contribution Agreement dated as of [ • ], 2000, between the Purchaser, as contributor (in such capacity, the “Contributor”), and Triangle
Receivables Funding LLC, as the company (the “Company”), the Purchaser intends to contribute all Receivables purchased by it hereunder as well as certain other Receivables purchased by it from other of its affiliates to the Company.

  

	(D)	Pursuant to an Asset Backed Loan Agreement dated as of [ • ], 2000 (the “Asset Backed Loan Agreement”) among the Company, as borrower, the CP Conduit Lenders,
certain PARCO APA Banks, Barclays Bank plc, as Sheffield Funding Agent and The Chase Manhattan Bank, as PARCO Funding Agent and Administrative Agent, the Company will borrow funds from the Lenders, which loans shall be secured by, among other
things, the Company’s interest in the Receivables contributed to it by the Purchaser. 

  

	(E)	In accordance with the Asset Backed Loan Agreement, the Administrative Agent intends to appoint the Purchaser as Collection Agent in respect of all Receivables owned by the Company.

  

	(F)	Upon its appointment as Collection Agent, the Purchaser intends to delegate certain of its obligations as Collection Agent to the Originators. 

  
 NOW, THEREFORE, in consideration of the premises and of the mutual covenants contained
herein, and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows: 
  

	1.	Definitions 

  

	1.1	Defined Terms 

  
 Whenever used in this Agreement (including the recitals hereto), the following words and phrases shall have the following meanings: 
  
 “1940 Act” means the United States Investment Company Act
of 1940, as amended. 
  

 - 1 - 

 “Additional Originator” means any additional originator made a party to this Agreement
pursuant to Section 10. 
  
 “Adjustment Payment”
has the meaning assigned in Section 2.6(a). 
  
 “Administrative Agent” has the meaning assigned in the Asset Backed Loan Agreement. 
  
 “Affiliate” means, with respect to any specified Person, any other Person which, directly or indirectly, is in control of, is controlled
by, or is under common control with, such specified Person. For purposes of this definition, “control” of a Person means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies
of such Person, whether through the ownership of voting securities or otherwise, and the terms “controlling” and “controlled” have meanings correlative to the foregoing. 
  
 “Applicable Insolvency Laws” means, with respect to any
Person, any applicable bankruptcy, insolvency, or other similar United States or foreign law now or hereinafter in effect. 
  
 “Approved Currency” has the meaning assigned in the Asset Backed Loan Agreement. 
  
 “Asset Backed Loan Agreement” has the meaning assigned
thereto in the recitals. 
  
 “Atlas” means Atlas
Services LLC, a Delaware limited liability company, which prior to the Effective Date, was an affiliate of the Originators. 
  
 “Atlas Receivables” means Receivables invoiced on behalf of the Originators by Atlas and identified on the relevant Originator Daily
Report as such. 
  
 “Atlas Transition Period”
means the 90 day period following the Effective Date, or with respect to Receivables invoiced by Atlas pursuant to any contract between Atlas and any customer of the Originators the term of which is longer than 90 days, then such longer period.

  
 “Bankruptcy Code” means the United States
Federal Bankruptcy Code, 11 U.S.C. §§ 101-1330, as amended. 
  
 “Business Day” means any day other than (i) a Saturday or a Sunday or (ii) another day on which commercial banking institutions or trust companies in London, the States of California and New York, or in the city where the
chief executive office of any of the Originators is located, are authorized or obligated by law, executive order, or governmental decree to be closed. 
  
 “Clean-Up Payment” has the meaning assigned in the Contribution Agreement. 
  
 “Code” means the United States Internal Revenue Code of 1986, as amended, and the rules and regulations
promulgated thereunder from time to time. 
  
 “Collection
Account” has the meaning assigned in the Asset Backed Loan Agreement. 
  
 “Collection Agent” has the meaning assigned in the Asset Backed Loan Agreement. 
  
 “Collections” means, with respect to any Receivable, all cash collections and other cash proceeds of such Receivable, including any
finance, interest, late or similar charges owed by an Obligor pursuant to a Contract, and any cash proceeds of Related Property with respect to such Receivable. 
  

 - 2 - 

 “Commitment Expiry Date” has the meaning assigned in the Asset Backed Loan Agreement.

  
 “Contract” means an agreement between an
Originator and an Obligor (including a written contract, an invoice, a purchase order or open account), pursuant to which or under which such Obligor is obligated to make payments in respect of any Receivable or Related Property to such Originator
from time to time. 
  
 “Contractual Obligation”
means, as to any Person, any provision of any security issued by such Person or of any agreement, instrument or other undertaking to which such Person is a party or by which it or any of its property is bound. 
  
 “CP Conduit Lenders” has the meaning assigned in the Asset
Backed Loan Agreement. 
  
 “Credit Agreement”
has the meaning assigned in the Asset Backed Loan Agreement. 
  
 “Defaulted Receivable” has the meaning assigned in the Asset Backed Loan Agreement. 
  
 “Designated Ineligible Receivable” means each Receivable sold to the Purchaser that is not an Eligible Receivable as of the relevant
Purchase Date and that is identified on the applicable Originator Daily Report as a Designated Ineligible Receivable. 
  
 “Diluted Receivable” has the meaning assigned in the Asset Backed Loan Agreement. 
  
 “Dilution Adjustment” means any adjustment that would
result in a Receivable becoming a Diluted Receivable. 
  
 “Dilution Adjustment Payment” has the meaning assigned in Section 2.5. 
  
 “Disclosure Letter” means the letter provided by [ • ] to [ • ] in connection with the sale of the Purchaser and its affiliates
to [ • ]. 
  
 “Dollars” shall mean the
lawful currency of the United States. 
  
 “Effective
Date” means the Business Day upon which the initial conditions precedent set forth in Section 3 have been satisfied or waived by the Purchaser, which day shall be designated by the Purchaser. 
  
 “Eligible Receivables” has the meaning assigned in the
Asset Backed Loan Agreement. 
  
 “ERISA” means
the United States Employee Retirement Income Security Act of 1974, as amended. 
  
 “ERISA Affiliate” means with respect to any Person, any trade or business (whether or not incorporated) that is a member of a group of which such Person is a member and which is treated as a single
employer under Section 414 of the Code. 
  
 “Excluded
Receivables” means Receivables denominated or payable in a currency other than an Approved Currency and Collections in respect of which are not to be paid to a Lock-Box Account. 
  
 “GAAP” means generally accepted accounting principles in the United States, as in effect from time to time.

  

 - 3 - 

 “General Opinion” means, with respect to any action by an Originator, an Opinion of
Counsel to the effect that (i) such action has been duly authorized by all necessary limited liability company or corporate action on the part of the Originator, (ii) any agreement executed in connection with such action constitutes a legal, valid
and binding obligation of the Originator, enforceable in accordance with the terms thereof, except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’
rights and generally (whether considered in a proceeding at law or in equity) (or subject to similar exceptions), (iii) such action does not violate the Originator’s constitutive documents and (iv) such action does not result in a breach of, or
default under any material contractual obligation, or the creation of any Lien pursuant thereto. 
  
 “Governmental Authority” means any nation or government, any state or other political subdivision thereof and any entity exercising
executive, legislative, judicial, regulatory or administrative functions of or pertaining to government. 
  
 “Incremental Borrowing” has the meaning assigned in the Asset Backed Loan Agreement. 
  
 “Indebtedness” has the meaning assigned in the Asset Backed
Loan Agreement. 
  
 “Indemnification Event” has
the meaning assigned in Section 2.6(b). 
  
 “Indemnification Liabilities” has the meaning assigned in Section 8.2. 
  
 “Indemnification Payment” has the meaning assigned in Section 2.6(b). 
  
 “Independent Public Accountants” means, with respect to any Person, any independent certified public
accountants of nationally recognized standing or any successor thereto (who may also render services to the Purchaser), provided that such firm is independent with respect to such Person within the meaning of Regulation 2-01(b) under the
United States Securities Act of 1933, as amended. 
  
 “Insolvency Event” means, with respect to any Person, (i) a court having jurisdiction shall enter a decree or order for relief in respect of such Person in an involuntary case under Applicable Insolvency Laws, which decree
or order is not stayed or any other similar relief shall be granted under any applicable federal, state or foreign law now or hereafter in effect and shall not be stayed; (ii) (A) an involuntary case is commenced against such Person under any
Applicable Insolvency Law now or hereafter in effect, a decree or order of a court having jurisdiction for the appointment of a receiver, liquidator, sequestrator, trustee, custodian or other officer having similar powers over such Person, or over
all or a substantial part of the property of such Person, shall have been entered, an interim receiver, trustee or other custodian of such Person for all or a substantial part of the property of such Person is involuntarily appointed, a warrant of
attachment, execution or similar process is issued against any substantial part of the property of such Person, and (B) any event referred to in clause (ii)(A) above continues for sixty (60) days unless dismissed, bonded or discharged; (iii) such
Person shall at its request have a decree or an order for relief entered with respect to it or commence a voluntary case under any Applicable Insolvency Law now or hereafter in effect, or shall consent to the entry of a decree or an order for relief
in an involuntary case, or to the conversion of an involuntary case to a voluntary case, under any such Applicable Insolvency Law, consent to the appointment of or taking possession by a receiver, trustee or other custodian for all or a substantial
part of its property; (iv) the making by such Person of any general assignment for the benefit of creditors; (v) the inability or failure of such Person generally to pay its debts as such debts become due; or (vi) the Board of Directors or
equivalent body of such Person authorizes action to approve any of the foregoing. 
  

 - 4 - 

 “Lenders” has the meaning assigned in the Asset Backed Loan Agreement. 
  
 “Lien” means, with respect to any asset, (a) any mortgage,
deed of trust, lien, pledge, encumbrance, charge or security interest in or on such asset and (b) the interest of a vendor or a lessor under any conditional sale agreement, capital lease or title retention agreement relating to such asset;
provided, however, that if a lien is imposed under Section 412(n) of the Code or Section 302(f) of ERISA for a failure to make a required installment or other payment to a plan to which Section 412(n) of the Code or Section 302(f) of ERISA
applies, then such lien shall not be treated as a “Lien” from and after the time (i) any Person who is obligated to make such payment pays to such plan the amount of such lien determined under Section 412(n)(3) of the Code or Section
302(f)(3) of ERISA, as the case may be, and provides to the Purchaser and the Administrative Agent a written statement of the amount of such lien together with written evidence of payment of such amount, or (ii) such lien expires pursuant to Section
412(n)(4)(B) of the Code or Section 302(f)(4)(B) of ERISA. 
  
 “Local Business Day” means, with respect to a Person any day other than (a) a Saturday or Sunday or (b) another day on which commercial banking institutions or trust companies in the jurisdictions where such Person has its
principal place of business are authorized or obligated by law, executive order, or governmental decree to be closed. 
  
 “Lock-Box Account” has the meaning assigned in the Asset Backed Loan Agreement. 
  
 “Margin Stock” has the meaning given to such term in
Regulation U of the United States Board of Governors of the Federal Reserve System. 
  
 “Material Adverse Effect” means, when used with respect to any Person, (a) a material impairment of such Person’s ability to perform its obligations under the Transaction Documents, (b) a
materially adverse effect on the business, operations, property or condition (financial or otherwise) of such Person or (c) a material impairment of the validity or enforceability of any of the Transaction Documents against such Person and, where
applicable, shall also include (d) a material impairment of the collectability of the Receivables taken as a whole and (e) a material impairment of the interests, rights or remedies of the Purchaser with respect to the Transaction Documents or the
Receivables taken as a whole. 
  
 “Multiemployer
Plan” means with respect to any Person, a multiemployer plan as defined in Section 400 l(a)(3) of ERISA to which such Person or any ERISA Affiliate of such Person (other than one considered an ERISA Affiliate only pursuant to subsection (m)
or (o) of Section 414 of the Code) is making or accruing an obligation to make contributions, or has within any of the preceding five plan years made or accrued an obligation to make contributions. 
  
 “Obligor” means, with respect to any Receivable, the party
obligated to make payments with respect to such Receivable, including any guarantor thereof. 
  
 “Opinion of Counsel” means, with respect to an Originator, a written opinion or opinions of one or more counsel to such Originator, which counsel shall be reasonably acceptable to the Purchaser and
the Administrative Agent. 
  
 “Originator Daily
Report” means, with respect to each Originator, the report prepared by the Originator pursuant to this Agreement, together with a list of the Receivables described therein, neither of which shall be signed by the Originator or any other
person. 
  
 “Originator Documents” has the
meaning assigned in Section 7.3(b). 
  

 - 5 - 

 “Originator Termination Date” means the earliest of (i) the Business Day designated by
the Purchaser to the Originator as the Termination Date at any time following forty-five (45) days’ written notice to the Originator, (ii) the day upon which an Originator Termination Event is declared or automatically occurs relating to an
Originator Termination Event pursuant to Section 7.1, and (iii) the Commitment Expiry Date. 
  
 “Originator Termination Event” has the meaning assigned in Section 7.1. 
  
 “Originator” means each of (i) Insight Electronics LLC, a Delaware limited liability company, (ii) Impact Semiconductor Technologies LLC,
a Delaware limited liability company, (iii) Unique Semiconductor Technologies Inc., a California corporation, and (iv) any Additional Originator. 
  
 “PBGC” means the Pension Benefit Guaranty Corporation established pursuant to Subtitle A of Title IV of ERISA and any Person succeeding
to the functions thereof. 
  
 “Permitted Liens”
means, at any time, for any Person: 
  

	 	(a)	Liens created pursuant to any Transaction Document; and 

  

	 	(b)	Liens for taxes, assessments or other governmental charges or levies (i) not yet due or (ii) that are being contested in good faith by appropriate proceedings and with respect to
which reserves in conformity with GAAP have been provided on the books of such Person. 

  
 “Person” means any individual, partnership, corporation, business trust, joint stock company, trust, unincorporated association, joint
venture, limited liability company, Governmental Authority or other entity of whatever nature. 
  
 “Plan” means, with respect to any Person, any pension plan (other than a Multiemployer Plan) subject to the provisions of Title IV of
ERISA or Section 412 of the Code which is maintained for employees of such Person or any ERISA Affiliate of such Person. 
  
 “Policies” means the credit and collection policies of each Originator, as applicable, copies of any of which that are in writing have
been previously delivered to the Purchaser. 
  
 “Potential Originator Termination Event” means any condition or act that, with the giving of notice or the lapse of time or both, would constitute an Originator Termination Event. 
  
 “Principal Amount” means, with respect to any Receivable,
the unpaid principal amount due thereunder. 
  
 “Purchase
Price” means, with respect to any Receivable, the price paid for such Receivable specified in Section 2.2. 
  
 “Receivable” means all the indebtedness and payment obligations of an Obligor to an Originator arising from the sale of merchandise or
services by an Originator (and shall include, without limitation, the right of payment of any interest, sales taxes, finance charges, returned check or late charges and other obligations of such Obligor with respect thereto). 
  
 “Receivable Assets” has the meaning assigned in Section
2.1(a). 
  

 - 6 - 

 “Related Property” means, with respect to a Receivable: 
  

	 	(a)	all of the related Originator’s interest in the goods, if any, relating to the sale that gave rise to such Receivable; 

  

	 	(b)	all other security interests or liens and property subject thereto from time to time purporting to secure payment of such Receivable, whether pursuant to the Contract related to
such Receivable or otherwise, together with all financing statements signed by the applicable Obligor describing any collateral securing such Receivable; and 

  

	 	(c)	all guarantees, insurance and other agreements or arrangements of whatever character from time to time supporting or securing payment of such Receivable whether pursuant to the
Contract related to such Receivable or otherwise; 

  
 “Reportable Event” means any reportable event as defined in Section 4043(b) of ERISA or the regulations issued thereunder with respect to a Plan (other than a Plan maintained by an ERISA Affiliate which is considered an
ERISA Affiliate only pursuant to subsection (m) or (o) of Section 414 of the Code). 
  
 “Requirement of Law” for any Person means the certificate of incorporation and bylaws or other organizational or governing documents of such Person, and any law, treaty, rule or regulation, or
determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person or any of its property or to which such Person or any of its property is subject. 
  
 “Responsible Officer” means any member of the Board of
Directors or equivalent body, the Chief Executive Officer, the President, the Chief Financial Officer, the Secretary, the Treasurer or Manager (in the case of a limited liability company) of such Person. 
  
 “Servicing Fee Letter” means the letter agreement dated on
or about the date hereof between the Collection Agent and the Sub-Collection Agent in respect of the fees to be paid to the Sub-Collection Agent as provided in Section 9.2. 
  
 “Specified Bankruptcy Opinion Provisions” means the factual assumptions (including those contained in the
factual certificate referred to therein) and the actions to be taken by the Purchaser and the Originators in the legal opinion of Clifford Chance Rogers & Wells LLP relating to certain bankruptcy matters delivered on the Effective Date.

  
 “Sub-Collection Agent” has the meaning
assigned in Section 9. 
  
 “Sub-Servicing Fee”
means the fee payable to the Sub-Collection Agent as specified in the Servicing Fee Letter. 
  
 “Subsidiary” means, as to any Person, a corporation, partnership, or other entity of which shares of stock or other ownership interests having ordinary voting power (other than stock or such other
ownership interests having such power only by reason of the happening of a contingency) to elect a majority of the board of directors or other equivalent body of such corporation, partnership, or other entity are at the time owned, or the management
of which is otherwise controlled, directly or indirectly, through one of more intermediaries, or both, by such Person. 
  
 “Transaction Documents” means the collective reference to this Agreement, the U.K. Receivables Purchase Agreement, the Contribution
Agreement, the Asset Backed Loan Agreement and any other documents delivered pursuant to or in connection therewith. 
  

 - 7 - 

 “Transactions” means the transactions contemplated under each of the Transaction
Documents. 
  
 “UCC” means the Uniform
Commercial Code, as amended from time to time, as in effect in any specified jurisdiction. 
  
 “U.K. Originators” means (i) Memec UK Ltd., a limited liability company organized under the laws of England and Wales, and (ii) any additional originator permitted under the U.K. Receivables Purchase
Agreement. 
  
 “U.K. Receivables Purchase
Agreement” means the Receivables Purchase Agreement dated [ • ], 2000, by and between the Purchaser, the U.K. Originators, Barclays Bank plc, as Sheffield Funding Agent, and The Chase Manhattan Bank, as PARCO Funding Agent and
Administrative Agent, pursuant to which the Purchaser has agreed to purchase Receivables and all other Receivable Assets related to such Receivables from such U.K. Originators from time to time. 
  
 “United States” for purposes of geographic description
means the United States of America (including the States and the District of Columbia), its territories, its possessions (including Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, Wake Island and the Northern Mariana Islands) and other
areas subject to its jurisdiction. 
  

	1.2	Other Definitional Provisions 

  

	 	(a)	The words “hereof”, “herein”, “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to
any particular provision of this Agreement, and Article, Section, Schedule and Exhibit references are to this Agreement unless otherwise specified. 

  

	 	(b)	As used herein and in any certificate or other document made or delivered pursuant hereto, accounting terms relating to the Originators and the Purchaser, unless otherwise defined
or incorporated by reference herein, shall have the respective meanings given to them under GAAP. 

  

	 	(c)	The meanings given to terms defined or incorporated by reference herein shall be equally applicable to both the singular and plural forms of such terms. 

  

	 	(d)	Any reference herein to a Schedule or Exhibit to this Agreement shall be deemed to be a reference to such Schedule or Exhibit as it may be amended, modified or supplemented from
time to time to the extent that such Schedule or Exhibit may be amended, modified or supplemented (or any term or provision of any Transaction Document may be amended that would have the effect of amending, modifying or supplementing information
contained in such Schedule or Exhibit) in compliance with the terms of the Transaction Documents. 

  

	 	(e)	Any reference in this Agreement to any representation, warranty or covenant “deemed” to have been made is intended to encompass only representations, warranties or
covenants that are expressly stated to be repeated on or as of dates following the execution and delivery of this Agreement, and no such reference shall be interpreted as a reference to any implicit, inferred, tacit or otherwise unexpressed
representation, warranty or covenant. 

  

	 	(f)	The words “include”, “includes” or “including” shall be interpreted as if followed, in each case, by the phrase “without limitation”.

  

 - 8 - 

	 	(g)	Any reference herein to a provision of the Bankruptcy Code, Code, ERISA, 1940 Act or the UCC shall be deemed a reference to any successor provision thereto.

  

	2.	Purchase and Sale of Receivables 

  

	2.1	Sales 

  

	 	(a)	Subject to the terms and conditions of this Agreement, each Originator shall sell, transfer, assign and convey, without recourse (except as expressly provided herein), to the
Purchaser all of its present and future right, title and interest in, to and under: 

  

	 	(i)	all existing Receivables originated by the Originator and all further Receivables originated from time to time hereafter (excluding, in each case, the Excluded Receivables) as
indicated in the Originator Daily Report delivered to the Purchaser on the applicable date of sale; 

  

	 	(ii)	the Related Property; 

  

	 	(iii)	all Collections; 

  

	 	(iv)	all payment, enforcement and other rights (including rescission, replevin or reclamation) of the Originator relating to any such Receivable or arising therefrom;

  

	 	(v)	all monies due or to become due and all amounts received with respect to the items listed in clauses (i) through (iv) above and all proceeds (including anything received upon the
sale, exchange, collection or other disposition of the foregoing and all “proceeds” as defined in Section 9-306 of the UCC as in effect in the State of New York) thereof; and 

  

	 	(vi)	any lock-box accounts related to the Receivables. 

  
 Such property described in the foregoing clauses (i) through (iv) shall be referred to collectively herein as the “Receivable Assets” and
shall be considered to be assets that have been sold, transferred, assigned, set over and otherwise conveyed by the applicable Originator to the Purchaser upon the delivery to the Purchaser and acceptance by the Purchaser of the applicable
Originator Daily Report with respect to such Receivable Assets (which acceptance shall not require the Originator Daily Report to be signed by or on behalf of the Purchaser and which acceptance shall be deemed to occur unless the Purchaser
communicates otherwise to the Originator in writing within two (2) Business Days after the Purchaser’s receipt of the Daily Report) (such date of acceptance hereinafter referred to as the “Purchase Date”) without any further
action by the applicable Originator or any other Person. 
  

	 	(b)	 The applicable Originator and the Purchaser hereby acknowledge and agree that it is their mutual intent that (a) every transfer of Receivable Assets to the
Purchaser hereunder shall be an absolute, unconditional, “true” sale and not a mere granting of a security interest to secure a loan to or from the Purchaser, (b) the Originators shall not retain any interest in the Receivable Assets after
the sale thereof hereunder and (c) the Receivables sold hereunder shall not be part of the applicable Originator’s insolvency or bankruptcy estate in the event an insolvency or delinquency proceeding or a bankruptcy petition or other action
shall be commenced or filed by or against such Originator under any insolvency or bankruptcy law. In the event, however, that notwithstanding such intent and agreement, 

  

 - 9 - 

	 	 
such transfers are deemed by any relevant Governmental Authority for any reason whatsoever, whether for limited purposes or otherwise, to be a security
interest granted to secure indebtedness of an Originator, such Originator shall be deemed to have granted to the Purchaser a perfected first priority security interest under Article 9 of the UCC in the applicable jurisdictions in all of its right,
title and interest in, to and under, in each case, whether now owned or existing, or hereafter acquired or arising, and wherever located, the Receivables sold by such Originator and the other Receivable Assets related to such Receivables, and this
Agreement shall constitute a security agreement under applicable law, securing the repayment of the amounts paid hereunder, subject to the other terms and conditions of this Agreement, together with such other obligations or interests as may arise
hereunder in favor of the parties hereto. 

  

	 	(c)	In connection with any transfer, assignment, conveyance and sale pursuant to Section 2.1(a), each Originator hereby agrees to record and file, or cause to be recorded and filed, at
its own expense, financing statements or other similar filings (and continuation statements with respect to such financing statements or other similar filings when applicable), (i) with respect to the Receivables and (ii) with respect to any other
Receivable Assets for which an assignment or the creation of a security interest (as defined in the applicable UCC or other similar applicable laws, legislation or statute) may be perfected under the applicable UCC or other applicable laws,
legislation or statute by such filing, in each case meeting the requirements of applicable law in such manner and in such jurisdictions as are necessary to perfect and maintain the perfection of the transfer, assignment, conveyance and sale of such
Receivables and any other Receivable Assets related to such Receivables to the Purchaser, and to deliver to the Purchaser on or before the Effective Date a file-stamped copy or certified statement of such financing statement (or the similar filing)
or other evidence of such filing. 

  

	 	(d)	In connection with the transfer, assignment, conveyance and sale pursuant to Section 2.1(a), each Originator agrees at its own expense, with respect to the Receivables originated by
it, that it will, as agent of the Purchaser, (i) on the Effective Date and thereafter, indicate or cause to be indicated on the computer files and other physical records (but not including individual invoices or individual collection files) relating
to such Receivables (by means of a general legend that will automatically appear at or near the beginning of any screen, list or print-out of such Receivables) that all such Receivables and all other Receivable Assets included in such screen, list
or print-out have been transferred, assigned, conveyed and sold to the Purchaser in accordance with this Agreement and (ii) acknowledge, deliver or transmit or cause to be delivered or transmitted to the Purchaser an Originator Daily Report
containing at least the information specified in Schedule 2.1(d) hereto as to all such Receivables originated by it, as of the applicable date of sale. 

  

	 	(e)	All sales of Receivables by the Originators hereunder shall be without recourse to, or any representation or warranty of any kind (express or implied) by, the Originators except as
otherwise specifically provided herein. The foregoing sale, assignment, transfer and conveyance does not constitute and is not intended to result in the creation or assumption by the Purchaser of any obligation of any Originator or any other person
in connection with the Receivables or any agreement or instrument relating thereto, including any obligation to any Obligor. 

  

 - 10 - 

	2.2	Purchase Price 

  
 The purchase price (the “Purchase Price”) for the Receivables and other Receivable Assets related to such Receivables sold, transferred,
assigned and conveyed to the Purchaser pursuant to Section 2.1(a) shall be the product of (a) the Principal Amount thereof at the time of sale and (b) [ • ]%, or such other percentage as may be agreed upon from time to time between the parties
hereto, as set forth in the applicable Originator Daily Report identifying such Receivables. The Purchase Price for any Receivables sold hereunder shall be payable in immediately available funds in the currency in which such Receivables are
denominated no later than the close of business, California time, on the relevant Purchase Date. 
  

	2.3	[Reserved] 

  

	2.4	No Repurchase 

  
 Subject to Section 2.6, no Originator shall have any right or obligation under this Agreement, by implication or otherwise, to repurchase from the
Purchaser any Receivables or other Receivable Assets related to such Receivables sold by it or to rescind or otherwise retroactively effect any purchase of any such Receivables or Receivable Assets related to such Receivables after the Purchase Date
relating thereto; provided that the foregoing shall not be interpreted to limit the right of the Purchaser to receive an Adjustment Payment or Indemnification Payment. 
  

	2.5	Rebates, Adjustments, Returns, Reductions and Modifications 

  
 From time to time, an Originator may make a Dilution Adjustment to a Receivable in accordance with this Section 2.5 and Section 6.2; provided that
if an Originator cancels an invoice related to such Receivable, such Originator must make or cause to be made a payment (a “Dilution Adjustment Payment”) in the same currency as such cancelled Receivable in an amount equal to the
full unpaid amount of such cancelled invoice pursuant to this Section 2.5. Each Originator agrees to pay any necessary Dilution Adjustment Payments no later than the Purchase Date on or immediately succeeding the date any Dilution Adjustment is
granted or made. The amount of any Dilution Adjustment shall be set forth on the first Originator Daily Report prepared after the date on which such Dilution Adjustment is granted or made. 
  

	2.6	Payments in Respect of Ineligible Receivables, Indemnification Payments and Clean-Up Call 

  

	 	(a)	 In the event of there being a breach of any of the representations, warranties or covenants, as applicable, contained in Section 4.2(a), 4.2(b), 4.2(c), 4.2(d),
4.2(f), 4.2(h), 5.2(b), 5.2(c), 6.1, 6.2, 6.3, 6.5, 6.8, or 6.9 in respect of any Receivable sold hereunder or if the Purchaser’s interest in any Receivable is not a full legal and beneficial ownership, the Originator that sold such Receivable
shall as promptly as reasonably practicable, but in any event, within thirty (30) days after receipt of written notice of such breach or defect from the Purchaser, remedy the matter giving rise to such breach of representation or warranty if such
matter is capable of being remedied. If such matter is not capable of being remedied or is not so remedied within said period of thirty (30) days, such Originator shall make a payment to the Purchaser in an amount (without duplication of any
Dilution Adjustment Payments made pursuant to Section 2.5 or any other Adjustment Payments made pursuant to this Section 2.6), equal to the Purchase Price of such Receivable less Collections received by the Purchaser in respect of such Receivable
(the “Adjustment Payment”). Upon the payment of an Adjustment Payment hereunder, the Purchaser shall automatically agree to pay to such Originator all Collections received subsequent to such payment with respect to such Receivable.
The parties agree that an Originator’s obligation to pay the Adjustment Payment under this Section 2.6(a) is a reasonable pre-estimate of loss and not a penalty (and neither the Purchaser nor any other 

  

 - 11 - 

	 	 
person or entity having an interest in this Agreement through the Purchaser shall be entitled to any other remedies as a consequence of any such breach).

  

	 	(b)	In addition to its obligations under Section 8.2, each Originator agrees to pay, indemnify and hold harmless (without duplication of any Dilution Adjustment Payments made pursuant
to Section 2.5 or any Adjustment Payments made pursuant to Section 2.6(a)) the Purchaser from any loss, liability, expense, damage or injury that may at any time be imposed on, incurred by or asserted against the Purchaser in any way relating to or
arising out of (i) any Receivable sold by such Originator becoming subject to any defense, dispute, offset or counterclaim of any kind (other than as expressly permitted by this Agreement) or (ii) such Originator breaching any covenant contained
herein with respect to any Receivable sold by such Originator (each of the foregoing events or circumstances being an “Indemnification Event”) and such Receivable (or a portion thereof) ceasing to be an Eligible Receivable on the
date on which such Indemnification Event occurs. The amount of such indemnification shall be equal to the Purchase Price of such Receivable less Collections received by the Purchaser in respect of such Receivable (the “Indemnification
Payment”). Such payment shall be made on or prior to the 10th Business Day after the day the Purchaser requests such payment or the Originator obtains knowledge of the Indemnification Event, unless such Indemnification Event shall have been
cured on or before such 10th Business Day; provided, however, that in the event that an Originator Termination Event with respect to the Originator that sold such Receivable has occurred and is continuing, such Originator shall make
such payment immediately. The Purchaser shall have no further remedy against such Originator in respect of such Indemnification Event unless such Originator fails to make an Indemnification Payment on or prior to such 10th Business Day or on such
earlier day in accordance with the proviso set forth in this Section 2.6(b). Upon receiving an Indemnification Payment, the Purchaser shall automatically agree to pay to such Originator all Collections received subsequent to such payment with
respect to the Receivable in respect of which an Indemnification Payment is made. 

  

	 	(c)	In the event that the Contributor chooses to make a Clean-Up Payment pursuant to Section 2.6(c) of the Contribution Agreement, then the Originators shall make a payment to the
Contributor in an amount equal to that portion of the Clean-Up Payment that relates to Receivables purchased from such Originator. Upon receiving a payment pursuant to this subsection (c), the Contributor shall automatically agree to pay to the
Originators all Collections received subsequent to such payment with respect to the Receivables in respect of which the payment pursuant to this subsection (c) was made. 

  

	2.7	Certain Charges 

  
 The Originators and the Purchaser hereby agree that late charge revenue, reversals of discounts, other fees and charges and other similar items, whenever
created, accrued in respect of Receivables shall be the property of the Purchaser notwithstanding the occurrence of an Originator Termination Event and all Collections with respect thereto shall continue to be allocated and treated as Collections in
respect of the Receivables transferred, conveyed, assigned and sold to the Purchaser pursuant to Section 2.1(a). 
  

	2.8	Certain Allocations 

  
 The Originators and the Purchaser hereby agree that if Collections can be attributed to a specific Obligor and a specific Receivable, then such Collection
shall be applied to pay such Receivable of such Obligor; provided, however, that if the Collections from any Obligor cannot be attributed 

  

 - 12 - 

 
to a specific Receivable, then such Collection shall be applied to pay the Receivables of such Obligor in the order of maturity of such Receivables,
beginning with the Receivable that has been outstanding the longest and ending with the Receivable that has been outstanding the shortest. 
  

	3.	Conditions to Purchases 

  

	3.1	Conditions Precedent to the Purchaser’s Initial Purchase of Receivables on the Effective Date 

  
 The obligation of the Purchaser to purchase Receivables and any other Receivable Assets related to such Receivables on the
Effective Date from an Originator is subject to the satisfaction of the following conditions precedent that shall have been satisfied (or otherwise waived in writing by the Purchaser) on or prior to the Effective Date: 
  

	 	(a)	the Purchaser and the Administrative Agent shall have received copies of duly adopted resolutions (or, if applicable, a unanimous consent) of the Board of Directors of the
Originator, as in effect on such Effective Date, authorizing the execution of this Agreement and the consummation of the Transactions pursuant to the Transaction Documents; 

  

	 	(b)	the Purchaser and the Administrative Agent shall have received copies of a certificate of good standing for the Originator issued by the Secretary of the state in which such
Originator was organized; 

  

	 	(c)	the Purchaser and the Administrative Agent shall have received copies of a certificate of a Responsible Officer of the Originator certifying (i) the names and signatures of the
managers authorized on its behalf to execute this Agreement and the other Transaction Documents to which it is a party and any other documents to be delivered by it hereunder or thereunder, (ii) that attached thereto is a true, correct, and complete
copy of the Originator’s constitutive documents, (iii) that attached thereto is a true correct and complete copy of the document referred to in clause (a) above and (iv) that attached thereto is a true, correct and complete copy of the document
referred to in clause (b) above; 

  

	 	(d)	the Purchaser and the Administrative Agent shall have received copies of fully executed counterparts of this Agreement and each other Transaction Document; 

 

	 	(e)	the Purchaser shall have received copies of legal opinions, in each case, dated the Effective Date and addressed to: 

  

	 	(i)	the Purchaser, the CP Conduit Lenders and the Administrative Agent from Farella Braun & Martel LLP, special California counsel to each Originator, in substantially the forms
attached hereto as Schedule 3.1(e)(i)(a) and Schedule 3.1(e)(i)(b); 

  

	 	(ii)	the Purchaser, the CP Conduit Lenders and the Administrative Agent from Clifford Chance Rogers & Wells LLP, special New York counsel for the Originators and the Purchaser, in
substantially the form attached hereto as Schedule 3.1(e)(ii); 

  

	 	(iii)	the Purchaser, the CP Conduit Lenders and the Administrative Agent from Richards, Layton & Finger, special Delaware counsel for the Purchaser and the Originators organized in
Delaware in substantially the form attached hereto as Schedule 3.1(e)(iii); 

  

 - 13 - 

	 	(f)	the Purchaser shall have received a legal opinion, dated the Effective Date and addressed to the Purchaser, the CP Conduit Lenders and the Administrative Agent from Clifford Chance
Rogers & Wells LLP, special New York counsel for the Originators and the Purchaser, in substantially the form attached hereto as Schedule 3.1(f), opining that, as a result of the transactions contemplated by this Agreement, a bankruptcy court
would not hold that the Receivables and/or Receivable Assets related to such Receivables sold to the Purchaser hereunder would be the property of the applicable Originator’s bankruptcy estate under Section 541 of the Bankruptcy Code;

  

	 	(g)	the Purchaser shall have received, to the extent in writing, the Policies of the Originator; 

  

	 	(h)	the Purchaser and the Administrative Agent shall have received copies of proper financing statements (Form UCC-1) dated a date on or before the Effective Date, naming the Originator
as the seller and the Purchaser as the buyer or other similar instruments or documents as may be necessary or in the reasonable opinion of the Purchaser desirable under the UCC of all appropriate jurisdictions to perfect the Purchaser’s
ownership interest in all Receivables and other Receivable Assets sold hereunder; 

  

	 	(i)	the Purchaser and the Administrative Agent shall have received certified copies of requests for information or copies (or a similar search report certified by parties acceptable to
the Purchaser) dated a date reasonably near the Effective Date listing all effective financing statements or charges that name the Originator (under its present name and any previous name) as debtor and which are filed in jurisdictions in which the
filings were made pursuant to clause (h) above, together with copies of such financing statements; 

  

	 	(j)	the Purchaser shall have received copies of a solvency certificate delivered by the Originator with respect to the Originator’s solvency in the form of Schedule 3.1(j);

  

	 	(k)	the Purchaser shall have received the unaudited, consolidating financial statements of the Originator for the period ending and as at December 31, 1999; and

  

	 	(l)	the Purchaser shall be satisfied that the Originator’s systems, procedures and record keeping relating to the Receivables are sufficient and satisfactory in order to permit the
sale, assignment, transfer and conveyance of such Receivables and the administration of such Receivables in accordance with the terms and intent of this Agreement. 

  

	3.2	Conditions Precedent to all Purchases of Receivables 

  
 The obligation of the Purchaser to purchase Receivables and other Receivable Assets on each Purchase Date (including the Effective Date) is subject to the
satisfaction of the following conditions precedent, that, on and as of the related Purchase Date, the following statements shall be true (and, with respect to the sale of any given Receivable, the delivery by or on behalf of the related Originator
of the applicable Originator Daily Report covering such Receivable on such Purchase Date shall constitute a representation and warranty by the Originator that on such Purchase Date the statements in clauses (a) and (b) below are true): 

 

	 	(a)	the representations and warranties of the Originator contained in Section 4.1 shall be true and correct on and as of such Purchase Date as though made on and as of such date, except
insofar as such representations and warranties are expressly made only as of another date (in which case they shall be true and correct as of such other date); 

  

 - 14 - 

	 	(b)	after giving effect to such purchase, no Originator Termination Event or Potential Originator Termination Event with respect to the Originator shall have occurred and be continuing;

  

	 	(c)	the Originator shall have delivered or transmitted to the Purchaser, with respect to the Receivables originated by it, an Originator Daily Report reasonably acceptable to the
Purchaser showing, as of such Purchase Date, at least the information specified in Schedule 2.1(d) as to the Receivables to be sold, assigned, transferred and conveyed on such Purchase Date; and 

  

	 	(d)	since the Effective Date, there has been no change in the ability of the Originator to implement its collection procedures or exercise its rights with respect to the Receivables
which would result in a no material adverse change in the overall collectability of the Receivables taken as a whole; 

  
 provided, however, that the failure of the Originator to satisfy any of the foregoing conditions shall not prevent the Originator from
subsequently selling to the Purchaser Receivables originated by it, upon satisfaction of all such conditions. 
  

	4.	Representations and Warranties 

  

	4.1	Representations and Warranties of the Originators 

  
 Each Originator, severally and not jointly, hereby represents and warrants to the Purchaser as of the Effective Date that: 
  

	 	(a)	Organization; Powers 

  
 It (i) is duly organized, validly existing and in good standing under the laws of its state of organization, (ii) has all requisite company power and
authority to own its property and assets and to carry on its business as now conducted and as proposed to be conducted, (iii) is qualified to do business in, and is in good standing in, every jurisdiction where the nature of its business so
requires, except where the failure so to qualify could not reasonably be expected to result in a Material Adverse Effect with respect to it and (iv) has the company power and authority to execute, deliver and perform its obligations under this
Agreement and each of the other Transaction Documents to which it is a party and each other agreement or instrument contemplated hereby or thereby to which it is or will be a party. 
  

	 	(b)	Authorization 

  
 The execution, delivery and performance by it of each of the Transaction Documents to which it is a party and the performance of the Transactions (i) have
been duly authorized by all requisite company and, if applicable and required, member action, and (ii) will not (A) violate (1) any Requirement of Law applicable to it or (2) any provision of any Transaction Document or other material Contractual
Obligation applicable to it, (B) be in conflict with, result in a breach of or constitute (alone or with notice or lapse of time or both) a default under, or give rise to any right to accelerate or to require the prepayment, repurchase or redemption
of any obligation under any Transaction Document or any other material Contractual Obligation applicable to it except where any such conflict, violation, breach or default referred to in clause (A) or (B), individually or in the aggregate, could not
reasonably be expected to have a Material Adverse Effect with respect to it or 

  

 - 15 - 

 
(C) result in the creation or imposition of any Lien upon the Receivables sold to the Purchaser by it (other than Permitted Liens). 
  

	 	(c)	Enforceability 

  
 This Agreement and each of the other Transaction Documents to which it is a party have been duly executed and delivered by it and constitutes a legal,
valid and binding obligation enforceable against it in accordance with its terms, subject (a) to applicable bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting the enforcement of creditors’ rights generally, from
time to time in effect and (b) to general principles of equity. 
  

	 	(d)	Governmental Approvals 

  
 No action, consent or approval of, registration or filing with or any other action by any Governmental Authority is or will be required in connection with
the execution and delivery of this Agreement or the consummation of the Transactions contemplated hereby, except for (i) the filing of UCC financing statements (or other similar filings) in any applicable jurisdictions necessary to perfect the
Purchaser’s ownership interest in the Receivables pursuant to Section 3.1(h), (ii) such as have been made or obtained and are in full force and effect and (iii) such actions, consents, approvals and filings the failure of which to obtain or
make could not reasonably be expected to result in a Material Adverse Effect with respect to it. 
  

	 	(e)	Litigation; Compliance with Laws 

  

	 	(i)	Other than as set forth in the Disclosure Letter, there are no actions, suits or proceedings at law or in equity or by or before any Governmental Authority now pending or, to its
knowledge, threatened against it in respect of which there exists a reasonable possibility of an outcome that would result in a Material Adverse Effect with respect to it. 

  

	 	(ii)	It is not in default with respect to any judgement, writ, injunction, decree or order of any Governmental Authority, where such violation or default could reasonably be expected to
result in a Material Adverse Effect with respect to it. 

  

	 	(f)	Agreements 

  

	 	(i)	It is not a party to any agreement or instrument or subject to any company or corporate restriction that has resulted or could reasonably be expected to result in a Material Adverse
Effect with respect to it. 

  

	 	(ii)	Other than as set forth in the Disclosure Letter, it is not in default in any manner under any provision of any Contractual Obligation, where such default could reasonably be
expected to result in a Material Adverse Effect with respect to it. 

  

	 	(g)	Federal Reserve Regulations 

  
 It is not engaged principally, or as one of its important activities, in the business of extending credit for the purpose of buying or carrying Margin
Stock. 
  

 - 16 - 

	 	(h)	Investment Company Act 

  
 It is not an “investment company” as defined in, or subject to regulation under, the 1940 Act or any successor statute thereto. 
  

	 	(i)	Tax Returns 

  
 It has filed or caused to be filed all material tax returns and has paid or caused to be paid or made adequate provision for all taxes due and payable by it and all assessments received by it except to the extent that
non-payment (i) is being contested in good faith or (ii) could not reasonably be expected to result in a Material Adverse Effect with respect to it. 
  

	 	(j)	Employee Benefit Plans 

  
 Except to the extent failure to comply could not reasonably be expected to result in a Material Adverse Effect with respect to it, it and its ERISA
Affiliates are in compliance in all material respects with the applicable provisions of ERISA and the Code and the regulations and published interpretations thereunder. No Reportable Event has occurred or is reasonably expected to occur that, when
taken together with all other such Reportable Events, could reasonably be expected to result in a Material Adverse Effect with respect to it. 
  

	 	(k)	Financial Disclosure 

  
 Except to the extent otherwise required by law, it will not prepare any financial statements that shall account for the transactions contemplated hereby,
nor will it in any other respect account for the transactions contemplated hereby, in a manner that is inconsistent with the Purchaser’s ownership interest in the Receivables and Receivable Assets related to such Receivables. It intends to
treat the sale and conveyance of the Receivables sold by it hereunder to the Purchaser as a sale of such Receivables for all tax, accounting and regulatory purposes; provided, however, that on a consolidated basis, the sale may be treated as
a financing in accordance with Financial Accounting Standard 125. 
  

	 	(l)	[Reserved] 

  

	 	(m)	[Reserved] 

  

	 	(n)	Chief Executive Office 

  
 The offices at which it keeps its records concerning the Receivables originated by it either (x) are located as set forth on Schedule 4.1(n)(i) hereto or
(y) are in locations as to which it has notified the Purchaser of the location thereof in accordance with Section 5.6. Its chief executive office is listed opposite its name on Schedule 4.1(n)(ii) and is the place where it is “located” for
the purposes of Section 9-103(3)(d) of the applicable UCC that governs the perfection of the ownership interest of the Purchaser in the Receivables sold to the Company by it hereunder, and there have been no other such locations during the four
months preceding the date of this Agreement. 
  

	 	(o)	Bulk Sales Act 

  
 No transaction contemplated hereby with respect to it requires compliance with, or will be subject to avoidance under, any bulk sales act or similar law
in the United States. 
  

 - 17 - 

	 	(p)	Names 

  
 Its legal name is as set forth in this Agreement is set forth on Schedule 4.1(p). It does not have any trade names, fictitious names, assumed names or “doing business as” names except as set forth on
Schedule 4.1(p). 
  

	 	(q)	Solvency 

  
 No Insolvency Event with respect to it has occurred and the sale, assignment, conveyance and transfer of the Receivables by it to the Purchaser has not been made in contemplation of the occurrence thereof. Both prior
to and after giving effect to the transactions occurring on the Effective Date and after giving effect to each subsequent transaction contemplated hereunder, (i) the fair value of its assets, taken individually at a fair valuation, will exceed its
debts and liabilities, subordinated, contingent or otherwise; (ii) the present fair saleable value of its property, taken individually and not on a consolidated basis, will be greater than the amount that will be required to pay the probable
liability of it on its debts and other liabilities, subordinated, contingent or otherwise, as such debts and other liabilities become absolute and matured; (iii) it will be able to pay its debts and liabilities, subordinated, contingent or
otherwise, as such debts and liabilities become absolute and matured; and (iv) it will not have unreasonably small capital with which to conduct the business in which it is engaged as such business is now conducted and is proposed to be conducted.
For all purposes of clauses (i) through (iv) above, the amount of contingent liabilities at any time shall be computed as the amount that, in the light of all the facts and circumstances existing at such time, represents the amount that can
reasonably be expected to become an actual or matured liability. It does not intend to incur debts beyond its ability to pay such debts as they mature, taking into account the timing of and amounts of cash to be received by it and the timing of the
amounts of cash to be payable on or in respect of its indebtedness. 
  

	 	(r)	No Originator Termination Event 

  
 As of the Effective Date, no Originator Termination Event or Potential Originator Termination Event with respect to it has occurred and is continuing.

  

	 	(s)	No Fraudulent Transfer 

  
 It is not entering into this Agreement with the actual or constructive intent to hinder, delay, or defraud its present or future creditors and is
receiving reasonably equivalent value and fair consideration for the Receivables being sold hereunder. 
  

	 	(t)	Collection Procedures 

  
 It has in place its Policies and has not acted in contravention of any such Policies with respect to the Receivables in any material respect. 

 

	 	(u)	Lock-Box Accounts 

  
 Except to the extent otherwise permitted under the terms of the Transaction Documents, the Lock-Box Accounts are free and clear of any Liens. 

 
 The representations and warranties as of the date made set forth in this
Section 4.1 shall survive the transfer, assignment, and sale of the Receivables and any other Receivable Assets related to 

  

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such Receivables to the Purchaser. Upon discovery by a Responsible Officer of the Purchaser or by a Responsible Officer of an Originator of a breach of any
of the foregoing representations and warranties, the party discovering such breach shall give prompt written notice to the other parties hereto and the Administrative Agent. 
  

	4.2	Representations and Warranties of the Originators Relating to the Receivables 

  

Each Originator, severally and not jointly, hereby represents and warrants to the Purchaser on each Purchase Date with respect to the Receivables being
sold, transferred, assigned and conveyed to the Purchaser by it as of such date: 
  

	 	(a)	Receivables Description 

  
 The Originator Daily Report delivered or transmitted by it pursuant to Section 2.1(d) sets forth in all material respects an accurate and complete listing
of all Receivables (and any Receivable Assets related thereto) originated by it, aggregated by Obligor, to be sold, transferred, assigned and conveyed to the Purchaser on such Purchase Date and the information contained therein in accordance with
Schedule 2.1(d) with respect to each such Receivable is true and correct in all material respects as of such date. 
  

	 	(b)	No Liens 

  
 Each Receivable originated by it existing on the Effective Date or, in the case of Receivables sold, transferred, assigned and conveyed to the Purchaser after the Effective Date, on the date that each such Receivable
shall have been sold, transferred, assigned and conveyed to the Purchaser, has been sold, transferred, assigned and conveyed to the Purchaser free and clear of any Liens, except for Permitted Liens. 
  

	 	(c)	Eligible Receivable 

  
 Each Receivable originated by it that is represented to be an Eligible Receivable in the Originator Daily Report delivered on the relevant Purchase Date
is an Eligible Receivable on such Purchase Date. 
  

	 	(d)	Filings 

  
 (i) All filings and other acts necessary or advisable under the UCC or under other applicable laws of jurisdictions outside the United States (to the extent applicable) (including, if applicable, but not limited to
notifying related Obligors of the assignment of a Receivable) shall have been made or performed in order to grant the Purchaser on the applicable Purchase Date a full legal and beneficial ownership interest in respect of all Receivables originated
by it then existing or thereafter arising, free and clear of any Liens, except for Permitted Liens and (ii) no effective financing statement or other instrument similar in effect covering any Receivable originated by it, any interest therein, or any
Related Property with respect thereto is on file in any recording office except such as may be filed in favor of the Purchaser pursuant to this Agreement or in favor of the Administrative Agent pursuant to the Asset Backed Loan Agreement.

  

	 	(e)	Policies 

  
 Since the Effective Date, there have been no material changes in its Policies, other than as permitted hereunder. 
  

 - 19 - 

	 	(f)	True Sale 

  
 Title to each Receivable sold, assigned, conveyed and transferred by it hereunder will be vested in the Purchaser as described in clauses (b) and (d) above, and such Receivables will not form part of its estate upon a
bankruptcy of it. 
  

	 	(g)	No Material Adverse Effect 

  
 Since the Effective Date, no event has occurred that has had a Material Adverse Effect with respect to it. 
  

	 	(h)	No Fraudulent Transfer 

  
 No transfer of any Receivables or any Related Property by it to the Purchaser constitutes a fraudulent transfer or fraudulent conveyance or is otherwise
void or voidable under similar laws or principles, the doctrine of equitable subordination or for any other reason. The transfer of Receivables to the Purchaser by it is not made with the actual or constructive intent to hinder, delay or defraud its
present or future creditors and it is receiving reasonably equivalent value and fair consideration for the Receivables being sold by it hereunder. 
  
 The representations and warranties as of the date made set forth in this Section 4.2 shall survive the sale, transfer, assignment and conveyance of the
Receivables and other Receivable Assets to the Purchaser. Upon discovery by a Responsible Officer of the Purchaser or a Responsible Officer of it of a breach of any of the representations and warranties (or of any Receivable originated by it
encompassed by the representation and warranty in Section 4.2(c) not being an Eligible Receivable as of the relevant Purchase Date), the party discovering such breach shall give prompt written notice to the other parties hereto and the
Administrative Agent. 
  

	4.3	Representations and Warranties of the Purchaser 

  
 The Purchaser represents and warrants as to itself as follows: 
  

	 	(a)	Organization; Powers 

  
 The Purchaser (i) is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware, (ii) has
all requisite company power and authority to own its property and assets and to carry on its business as now conducted and as proposed to be conducted, (iii) is qualified to do business in, and is in good standing in, each jurisdiction where the
nature of its business so requires, and (iv) has the company power and authority to execute, deliver and perform its obligations under this Agreement and each of the other Transaction Documents to which it is a party and each other agreement or
instrument contemplated hereby or thereby to which it is or will be a party. 
  

	 	(b)	Authorization 

  
 The execution, delivery and performance by the Purchaser of each of the Transaction Documents to which it is a party and the performance of the
Transactions (i) have been duly authorized by all requisite company and, if applicable and required, member action; and (ii) will not (A) violate (1) any Requirement of Law or (2) any provision of any Transaction Document or any other material
Contractual Obligation, (B) be in conflict 

  

 - 20 - 

 
with, result in a breach of or constitute (alone or with notice or lapse of time or both) a default under, or give rise to any right to accelerate or to
require the prepayment, repurchase or redemption of any obligation under any Transaction Document or any other material Contractual Obligation, except where any such conflict, violation, breach or default referred to in clause (A) or (B),
individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect with respect to it or (C) result in the creation or imposition of any Lien upon the Receivables other than as contemplated by the Transaction
Documents. 
  

	 	(c)	Enforceability 

  
 This Agreement and each other Transaction Document to which it is a party have been duly executed and delivered by the Purchaser and constitutes, a legal,
valid and binding obligation of the Purchaser enforceable against the Purchaser in accordance with its respective terms, subject (a) to applicable bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting the enforcement of
creditors’ rights generally, from time to time in effect and (b) to general principles of equity. 
  

	 	(d)	Accounting Treatment 

  
 Except to the extent otherwise required by law, the Purchaser will not prepare any financial statements that shall account for the transactions
contemplated hereby, nor will it in any other respect account for the transactions contemplated hereby, in a manner that is inconsistent with the Purchaser’s ownership interest in the Receivables. 
  

	5.	Affirmative Covenants 

  
 Each Originator, severally and not jointly, hereby agrees that, so long as there are any amounts outstanding with respect to Receivables or until an
Originator Termination Event with respect to it, whichever is later, such Originator shall: 
  

	5.1	Financial Statements, Reports, etc. 

  
 Furnish to the Purchaser and the Administrative Agent: 
  

	 	(a)	within 150 days after the end of each fiscal year, the unaudited, consolidating financial statements showing its financial condition as of the close of such fiscal year and the
results of its operations during such year, all certified by a Responsible Officer of it; 

  

	 	(b)	within 60 days after the end of each fiscal quarter of each fiscal year, its unaudited, consolidating financial statements for the period from the beginning of such fiscal quarter
to the end of such quarter, all certified by a Responsible Officer of it; 

  

	 	(c)	together with the financial statements required pursuant to clauses (a) and (b) above, a compliance certificate signed by a Responsible Officer of it stating that the attached
financial statements have been prepared in accordance with GAAP and accurately reflect its financial condition; 

  

	 	(d)	promptly, from time to time, such historical information, including aging and liquidation schedules, in form and substance satisfactory to the Purchaser, as the Purchaser may
reasonably request; and 

  

 - 21 - 

	 	(e)	promptly, from time to time, such other information regarding its operations, business affairs and financial condition, or compliance by it with the terms of any Transaction
Document, in each case as the Purchaser may reasonably request. 

  

	5.2	Compliance with Law and Policies 

  

	 	(a)	Comply with all Requirements of Law and Contractual Obligations to which it is subject and which are applicable to it except to the extent that non-compliance would not reasonably
be likely to result in a Material Adverse Effect with respect to it. 

  

	 	(b)	Perform its obligations in accordance with its Policies, as amended from time to time in accordance with the Transaction Documents, in regard to any Receivable originated by it and
any other Receivable Assets related to such Receivable, except to the extent that non-compliance would not reasonably be likely to have a Material Adverse Effect on the collectability of such Receivable. 

  

	 	(c)	Comply with all Requirements of Law and obligations under any Contract with respect to any Receivable originated by it except to the extent that non-compliance would not reasonably
be likely to have a Material Adverse Effect on the collectability of such Receivable. 

  

	5.3	Preservation of Corporate or Company Existence 

  

	 	(a)	Preserve and maintain its corporate or company, as applicable, existence, rights and privileges, if any, in the jurisdiction of its organization; and 

  

	 	(b)	Qualify and remain qualified in good standing as a foreign corporation or limited liabillity company, as applicable, in each jurisdiction where the nature of its business so
requires, except where the failure so to qualify would not, individually or in the aggregate with other such failures, have a Material Adverse Effect with respect to it. 

  

	5.4	Separate Corporate Existence from the Company 

  

	 	(a)	Except as set forth in the Transaction Documents, maintain its deposit account or accounts, separate from those of the Company and ensure that its funds will not be diverted to the
Company, nor will such funds be commingled with the funds of the Company; 

  

	 	(b)	To the extent that it shares any officers or other employees with the Company, the salaries of and the expenses related to providing benefits to such officers and other employees
shall be fairly allocated among it and the Company, and it and the Company shall bear their fair shares of the salary and benefit costs associated with all such common officers and employees; 

  

	 	(c)	 To the extent that it jointly contracts with the Company to do business with vendors or service providers or to share overhead expenses, the costs incurred in so
doing shall be allocated fairly between it and the Company and it and the Company shall bear their fair shares of such costs. To the extent that it contracts or does business with vendors or service providers where the goods and services provided
are partially for the benefit of the Company, the costs incurred in so doing shall be fairly allocated between it and the Company in proportion to the benefit of the goods or services each is provided, and it and the Company shall bear their fair
shares of such costs. All material transactions between 

  

 - 22 - 

	 	 
it and the Company, whether currently existing or hereafter entered into, shall be only on an arm’s length basis; 

  

	 	(d)	Maintain office space separate from the office space of the Company (but which may be located at the same address as the Company). To the extent that it and the Company have offices
in the same location, there shall be a fair and appropriate allocation of overhead costs between them, and each shall bear its fair share of such expenses; 

  

	 	(e)	Issue financial statements separate from any financial statements issued by the Company; 

  

	 	(f)	Conduct its affairs strictly in accordance with its organizational documents and observe all necessary, appropriate and customary corporate or limited liability company formalities,
including, but not limited to, holding regular and special members’ and directors’ meetings appropriate to authorize all company action, keeping separate minutes of its meetings, passing all resolutions or consents necessary to authorize
actions taken or to be taken, and maintaining separate books, records and accounts, including, but not limited to, payroll and intercompany transaction accounts; 

  

	 	(g)	Except as set forth in the Transaction Documents, not assume or guarantee any of the liabilities of the Company; and 

  

	 	(h)	Take, or refrain from taking, as the case may be, all other actions that are necessary to be taken or not to be taken in order (x) to ensure that the assumptions and factual
recitations set forth in the Specified Bankruptcy Opinion Provisions remain true and correct with respect to it (and, to the extent within its control, to ensure that the assumptions and factual recitations set forth in the Specified Bankruptcy
Opinion Provisions remain true and correct with respect to the Company) and (y) to comply with those procedures described in such provisions that are applicable to it. 

  

	5.5	Inspection of Property; Books and Records; Discussions 

  
 Keep proper books of records and accounts in which entries in conformity with GAAP shall be made of all dealings and transactions in relation to its
business and activities; and permit representatives of the Purchaser upon reasonable advance notice to visit and inspect any of its properties and examine and make abstracts from any of its books and records during normal business hours on any Local
Business Day and as often as may reasonably be requested, subject to its security and confidentiality requirements and to discuss its business, operations, properties and financial condition with its officers and employees and with its Independent
Public Accountants. 
  

	5.6	Location of Records 

  
 Keep its chief executive office, and the offices where it keeps the records concerning the Receivables originated by it and the other related Receivable
Assets (and all original documents relating thereto), at the locations referred to for it on Schedule 4.1(n)(i) and Schedule 4.1(n)(ii) hereto or upon 60 days’ prior written notice to the Purchaser and the Administrative Agent, at such other
locations in a jurisdiction where all action required by Section 5.13 shall have been taken and completed and be in full force and effect. 
  

	5.7	[Reserved] 

  

 - 23 - 

	5.8	Obligations 

  
 Defend the right, title and interest of the Purchaser in, to and under the Receivables originated by it and any other Receivable Assets related to such Receivables, whether now existing or hereafter created, against
all claims of third parties claiming through it. It will duly fulfill all obligations on its part to be fulfilled under or in connection with each Receivable originated by it and will do nothing to materially impair the rights of the Purchaser in
such Receivable. 
  

	5.9	Collections 

  
 Comply in all material respects with procedures with respect to Collections reasonably specified from time to time by the Purchaser. In the event that any payments in respect of any Receivables originated by it are
made directly to it (including, without limitation, any employees thereof or independent contractors employed thereby), it shall within one (1) Business Day of receipt thereof, deliver or deposit such amounts to the applicable Lock-Box Account and,
prior to forwarding such amounts, the Originator shall hold such payments in trust for the account and benefit of the Purchaser. During the Atlas Transition Period, the Originator shall cause Atlas to forward any payments received with respect to
the Atlas Receivables to the applicable Lock-Box Account within two (2) Business Days of Atlas’s receipt thereof. 
  

	5.10	Furnishing Copies, Etc. 

  
 Furnish to the Purchaser and the Administrative Agent (subject to Section 8.13): 
  

	 	(a)	within five (5) Business Days of the Purchaser’s request, a certificate of a Responsible Officer of it, certifying, as of the date thereof, to the knowledge of such officer,
that no Originator Termination Event with respect to it has occurred and is continuing or if one has so occurred, specifying the nature and extent thereof and any corrective action taken or proposed to be taken with respect thereto;

  

	 	(b)	promptly after a Responsible Officer of it obtains knowledge of the occurrence of any Originator Termination Event or Potential Originator Termination Event with respect to it,
written notice thereof; and 

  

	 	(c)	promptly following request therefor, such other information, documents, records or reports regarding or with respect to Receivables originated by it, as the Purchaser may from time
to time reasonably request. 

  

	5.11	[Reserved] 

  

	5.12	Assessments 

  
 Pay before the same become delinquent and discharge all taxes, assessments, levies and other governmental charges imposed on it except such taxes, assessments, levies and governmental charges which are being contested
in good faith and for which it has set aside adequate reserves in accordance with GAAP. 
  

	5.13	Notices 

  
 Promptly give written notice to the Purchaser and the Administrative Agent of the occurrence of any Liens on Receivables originated by it (other than Permitted Liens). 
  

 - 24 - 

	5.14	Bankruptcy 

  
 Cooperate with the Purchaser in making any amendments to the Transaction Documents to which it is a party and take, or refrain from taking, as the case may be, all other actions deemed reasonably necessary by the
Purchaser in order to comply with the structured finance statutory exemption set forth in legislative amendments to the U.S. Bankruptcy Code at or any time after such amendments are enacted into law; provided, however, that it shall not be
required to make any amendment or to take, or omit from taking, as the case may be, any action that it reasonably believes would have the effect of materially changing the economic substance of the transaction contemplated by the Transaction
Documents on the Effective Date. 
  

	5.15	Further Action 

  
 In addition to the foregoing: 
  

	 	(a)	Each Originator agrees that from time to time, at its expense, it will promptly execute and deliver all further instruments and documents, and take all further action (including
notifying the related Obligors to the extent necessary to perfect the ownership interest of the Purchaser in the Receivables) that may be necessary in its reasonable judgement or that the Purchaser may reasonably request, in order to protect the
Purchaser’s right, title and interest in and to the Receivables originated by it, or to enable the Purchaser to exercise or enforce any of its rights in respect thereof. Without limiting the generality of the foregoing, it will upon the request
of the Purchaser (i) execute and file such financing or continuation statements, or amendments thereto, and such other instruments or notices, as may be necessary or, in the opinion of the Purchaser, advisable to protect the Purchaser’s
ownership interest in the Receivables originated by it and (ii) obtain the agreement of any Person having a Lien on any such Receivables owned by it (other than any Permitted Lien) to release such Lien upon the sale, assignment, transfer and
conveyance of any such Receivables to the Purchaser. 

  

	 	(b)	Until the termination of this Agreement, it hereby irrevocably authorizes the Purchaser to file one or more financing or continuation statements (and other similar instruments), and
amendments thereto, relative to all or any part of the Receivables originated by it and the other Receivable Assets sold, assigned, conveyed or transferred or to be sold, assigned, conveyed or transferred by it hereunder without the signature of it
to the extent permitted by applicable law. 

  

	 	(c)	If it fails to perform any of its agreements or obligations under this Agreement, following notice to it detailing such delinquency, the Purchaser may (but shall not be required to)
perform, or cause the performance of, such agreements or obligations, and the expenses of the Purchaser incurred in connection therewith shall be payable by it as provided in Section 8.2. The Purchaser agrees promptly to notify it after any such
performance; provided, however, that the failure to give such notice shall not affect the validity of any such performance. 

  

	6.	Negative Covenants 

  
 Except as otherwise provided in Section 6.11, each Originator hereby agrees that, so long as there are any amounts outstanding with respect to Receivables
sold by it or until an Originator Termination Event with respect to such Originator has occurred, whichever is the later, such Originator shall not: 
  

 - 25 - 

	6.1	Limitations on Transfers of Receivables, Etc. 

  
 At any time attempt to re-sell, re-convey, re-assign, re-transfer or otherwise purport to dispose of any of the Receivables originated by it or other
Receivable Assets with respect to such Receivables except as contemplated by the Transaction Documents. 
  

	6.2	Extension or Amendment of Receivables 

  
 Whether acting as Sub-Collection Agent or otherwise, extend, make any Dilution Adjustment to, rescind, cancel, amend or otherwise modify, or attempt or
purport to extend, amend or otherwise modify, the terms of any Receivables originated by it, unless (a) (i) such cancellation, termination, amendment, modification, or waiver is made in accordance with the servicing standards set forth in Section 6
of the Asset Backed Loan Agreement (and would have been made in the ordinary course of business), (ii) such cancellation, termination, amendment, modification or waiver arose as a result of a request from an Obligor, (iii) any such amendment,
modification or waiver does not cause such Receivable to cease to be an Eligible Receivable and (iv) such cancellation, termination, amendment, modification or waiver would not have a material and prejudicial effect on the collectability of the
relevant Receivable or (b) such Dilution Adjustment is the result of a pre-existing contractual obligation between the Originator and the Obligor with respect to such Receivable; provided, that in the event the Originator cancels an invoice
related to a Receivable, such Originator must make a Dilution Adjustment Payment pursuant to Section 2.5. 
  

	6.3	Change in Payment Instructions to Obligors 

  
 Instruct any Obligor of any Receivables to make any payments with respect to any Receivables other than in accordance with the Transaction Documents.

  

	6.4	Change in Name 

  
 Other than as a result of litigation disclosed in the Disclosure Letter, change its name, use an additional name, change its identity or company structure
or change its chief executive officer unless at least 60 days prior to the effective date of any such change it delivers to the Purchaser and the Administrative Agent such documents, instruments or agreements as are necessary to reflect such change
and to continue the perfection of the Purchaser’s ownership interest in the Receivables. 
  

	6.5	Policies 

  
 Make any change or modification (or permit any change or modification to be made) in its Policies with respect to any Receivable originated by it, except if such changes or modifications are necessary under any
Requirement of Law or except to the extent that such change or modification would not have a Material Adverse Effect on the collectability of such Receivable. 
  

	6.6	Modification of Legend 

  
 Delete or otherwise modify the marking on the legend referred to in Section 2.1(d). 
  

	6.7	Accounting for Sales 

  
 Except as otherwise required by law, prepare any financial statements that shall account for the transactions contemplated hereby in any manner other than
as a sale of the Receivables to the Purchaser or in any other respect account for or treat the transactions contemplated hereby (including for financial accounting purposes, except as necessary under any Requirement of Law) in any manner other than
as sale of the Receivables to the Purchaser. 
  

 - 26 - 

	6.8	Instruments 

  
 Take any action to cause any Receivable not evidenced by an “instrument” (as defined in Section 9-105(1)(i) of the applicable UCC) upon origination to become evidenced by an instrument, except in connection
with the enforcement or collection of a Defaulted Receivable. 
  

	6.9	Ineligible Receivables 

  
 Without the prior written approval of the Purchaser, take any action which to its knowledge would cause, or would permit, a Receivable originated by it
that was designated as an Eligible Receivable on the Purchase Date relating to such Receivable to cease to be an Eligible Receivable, except as otherwise expressly provided by this Agreement. 
  

	6.10	Business of the Originator 

  
 Fail to maintain and operate the business currently conducted by such Originator and business activities reasonably incidental or related thereto in
substantially the manner in which it is presently conducted and operated if such failure would reasonably be expected to result in a Material Adverse Effect with respect to it. 
  

	6.11	Limitation on Fundamental Changes 

  
 Enter into any merger or consolidate with another Person or sell, lease, transfer or otherwise dispose of assets constituting all or substantially all of
the assets of such Originator and its consolidated Subsidiaries (taken as a whole) to another Person or to the fullest extent permitted by law liquidate or dissolve unless: 
  

	 	(a)	the Originator is the surviving entity; 

  

	 	(b)	subject to Section 8.13, it has delivered to the Purchaser a certificate executed by a Responsible Officer of such Originator addressed to the Purchaser and the Administrative Agent
(i) stating that such consolidation, merger, conveyance or transfer complies with this Section 6.11 and (ii) further stating that all conditions precedent herein provided for relating to such transaction have been complied with;

  

	 	(c)	it has delivered to the Purchaser and the Administrative Agent an Opinion of Counsel from a nationally recognized legal counsel to the effect that the sale of Receivables to the
Purchaser by such surviving Person, after the date of such merger, consolidation, sale, lease, transfer or disposal of assets, shall be treated as a “true sale” of any such Receivables; and 

  

	 	(d)	it has delivered to the Purchaser and the Administrative Agent a General Opinion. 

  

	6.12	Offices 

  
 Move the location of the Originator’s chief executive office or of any of the offices where it keeps its records with respect to the Receivables originated by it, or its legal head office to a new location within
or outside the jurisdiction where such office is now located, without (i) providing sixty (60) days’ prior written notice to the Purchaser and the Administrative Agent and (ii) taking all actions reasonably requested by the Purchaser or the
Administrative Agent (including all filings and other acts necessary or advisable under the applicable UCC or other applicable laws or similar statute of each relevant jurisdiction) in order to continue the Purchaser’s first priority 

  

 - 27 - 

 
perfected ownership interest in all Receivables sold to the Purchaser by such Originator hereunder or hereafter created by such Originator. 
  

	6.13	Charter 

  
 Amend or make any change or modification to its constitutive documents without first obtaining the consent of the Purchaser and the Administrative Agent; provided that, notwithstanding anything to the contrary
in this Section 6.13, the Originator may make amendments, changes or modifications pursuant to changes in law of the jurisdiction of its formation or incorporation or amendments to change the Originator’s name (subject to compliance with
Section 6.04 above), registered agent or address of registered office. 
  

	6.14	Amendment of Transaction Documents or Other Material Documents 

  
 Other than as set forth in the Transaction Documents, amend any Transaction Document or other material document related to any transactions contemplated
hereby or thereby. 
  

	7.	Termination 

  

	7.1	Originator Termination Events 

  
 If any of the following events shall have occurred and be continuing with respect to an Originator: 
  

	 	(a)	the Originator shall fail to pay any amount due hereunder in accordance with the provisions hereof and such failure shall continue unremedied for a period of two (2) consecutive
Local Business Days from the earlier to occur of (i) the date upon which a Responsible Officer of the Originator obtains actual knowledge of such failure or (ii) the date on which written notice of such failure, requiring the same to be remedied,
shall have been given to the Originator by the Purchaser, provided that if the failure to make any payment or deposit is caused solely by the failure of the banking money transmission system through which a payment or deposit was effected,
such failure shall continue unremedied for a period of five (5) days from the earlier to occur of (i) or (ii) above; or 

  

	 	(b)	the Originator shall fail to observe or perform any covenant contained in Section 5.10(b), 6.1, 6.3, 6.4, 6.10 or 6.11 and such failure shall continue unremedied for a period of two
(2) consecutive Local Business Days after the earlier to occur of (i) the date upon which a Responsible Officer of the Originator obtains actual knowledge of such failure or (ii) the date on which written notice of such failure, requiring the same
to be remedied, shall have been given to the Originator by the Purchaser; or 

  

	 	(c)	the Originator shall fail to observe or perform any other covenant or agreement applicable to it contained herein (other than as specified in paragraph (a) or (b) of this Section
7.1) that has a Material Adverse Effect with respect to it and that continues unremedied until thirty (30) days after the earlier to occur of (i) the date upon which a Responsible Officer of the Originator obtains actual knowledge of such failure or
(ii) the date on which written notice of such failure, requiring the same to be remedied shall have been given to the Originator by the Purchaser; or 

  

	 	(d)	 any representation or warranty made by the Originator in this Agreement or in any certificate delivered pursuant to this Agreement shall prove to have been
incorrect in any material respect when made or deemed made, and which continues unremedied until 

  

 - 28 - 

	 	 
thirty (30) days after the date on which written notice thereof, requiring the same to be remedied, shall have been given to the Originator by the Purchaser,
provided that if such incorrectness may be cured and the Originator is diligently pursuing such cure, such event shall not constitute an Originator Termination Event for an additional thirty (30) days, and provided further that
an Originator Termination Event shall not be deemed to have occurred under this paragraph (d) based upon a breach of any representation, warranty or covenant specified in Section 2.6 if the Originator shall have complied with the provisions of
Section 2.6 in respect thereof; 

  

	 	(e)	the Originator has been terminated as Sub-Collection Agent, and not replaced as Sub-Collection Agent by an affiliate of such Originator, following a Collection Agent Default;

  

	 	(f)	an Insolvency Event shall have occurred with respect to such Originator; 

  

	 	(g)	a notice of Lien shall have been filed by the PBGC against such Originator under Section 412(n) of the Code or Section 302(f) of ERISA for a failure to make a required installment
or other payment to a plan to which Section 412(n) of the Code or Section 302(f) of ERISA applies unless there shall have been delivered to the Purchaser proof of release of such Lien within fifteen (15) days of such filing;

  

	 	(h)	a Federal (or equivalent) tax notice of Lien, in an amount equal to or greater than $50,000, shall have been filed against such Originator unless there shall have been delivered to
the Purchaser proof of release of such Lien within thirty (30) days of such filing; 

  

	 	(i)	failure of the Originator to pay when due any amounts due under any agreement to which the Originator is a party and under which any Indebtedness greater than $5,000,000 is
governed, the effect of which default is to cause, or to permit the holder or holders of such Indebtedness (or trustee or agent on behalf of such holder or holders) to cause, such Indebtedness to become due prior to its stated maturity; or any
Indebtedness owing by the Originator greater than $5,000,000 shall be declared to be due and payable or required to be prepaid (other than by a regularly scheduled payment) prior to the date of maturity thereof; 

  

	 	(j)	an Acceleration Notice is delivered under Clause 9.2 of the Credit Agreement; or 

  

	 	(k)	a Termination Date shall have occurred under the Contribution Agreement. 

  
 then, upon notice thereof by the Purchaser (such event, upon such notice, an “Originator Termination Event”), so long as such Originator
Termination Event shall be continuing, the Purchaser may declare that an Originator Termination Date has occurred; provided, however, that in the case of an Originator Termination Event referred to in subsection (f), (g) or (h) above,
the Originator Termination Date shall be deemed to automatically have occurred upon the occurrence of such event. On and after the Originator Termination Date, the obligation (and the option) of the Purchaser to purchase Receivables from such
Originator shall thereupon automatically terminate without further notice of any kind, which is hereby waived by such Originator. 
  

	7.2	[Reserved] 

  

	7.3	Remedies 

  

 - 29 - 

	 	(a)	If an Originator Termination Date has occurred and is continuing, the Purchaser shall have all of the rights and remedies provided to an owner of accounts under applicable law in
respect thereto. 

  

	 	(b)	Each Originator agrees that, upon the occurrence of an Originator Termination Date and during the continuation of the related Originator Termination Event(s) with respect to it:

  

	 	(i)	the Purchaser shall have the right at any time to notify, or require that the Originator, at its expense notify, the respective Obligors of the Purchaser’s ownership of the
Receivables originated by such Originator and any other Receivable Assets related to such Receivables and may direct that payment of all amounts due or to become due under such Receivables be made directly to the accounts designated by the Purchaser
or its assignees; 

  

	 	(ii)	the Purchaser shall have the right to (A) sue for collection on any Receivables or (B) sell any Receivables originated by such Originator to any Person for a price that is
acceptable to the Purchaser. If required by the terms of the applicable UCC (or analogous provisions of any other similar law, statute or legislation applicable to the Receivables), the Purchaser may offer to sell any Receivable originated by such
Originator to any Person, together, at its option, with all other Receivables created by the same Obligor. Any Receivable sold hereunder shall cease to be a Receivable for all purposes under this Agreement as of the effective date of such sale;

  

	 	(iii)	the Originator shall, upon the Purchaser’s written request and at the Originator’s expense, (A) assemble or cause to be assembled all documents, instruments and other
records (including credit files and computer tapes or disks) that (1) evidence or will evidence or record Receivables originated by such Originator and (2) are otherwise necessary or desirable to effect Collections of such Receivables (collectively,
the “Originator Documents”) and (B) deliver such Originator Documents to the Purchaser or its designee at a place designated by the Purchaser. In recognition of the Originator’s need to have access to any Originator Documents
that may be transferred to the Purchaser hereunder, whether as a result of its continuing business relationship with any Obligor or as a result of its responsibilities as Sub-Collection Agent, the Purchaser hereby grants to the Originator a license
to access the Originator Documents transferred by the Originator to the Purchaser and to access any such transferred computer software in connection with any activity arising in the ordinary course of the Originator’s business or in performance
of the Originator’s duties as Sub-Collection Agent; provided that the Originator shall not disrupt or otherwise interfere with the Purchaser’s use of and access to the Originator Documents and its computer software during such
license period; 

  

	 	(iv)	 upon written request of the Purchaser, the Originator will (A) deliver to the Purchaser all licenses, rights, computer programs, related material, computer tapes,
disks, cassettes and data necessary for the immediate collection of the Receivables by the Purchaser, with or without the participation of the Originator (excluding software licenses which by their terms are not permitted to be so delivered,
provided that the Originator shall use reasonable efforts to obtain the consent of the relevant licensor to such delivery but shall not be required, to the extent it has an ownership interest in any electronic records, computer software or
licenses, to transfer, assign, set-over or otherwise convey such ownership interests to the Purchaser) and (B) make such arrangements with respect to the collection of the 

  

 - 30 - 

	 	 
Receivables originated by such Originator as may be reasonably required by the Purchaser. 

  

	8.	Miscellaneous 

  

	8.1	Payments 

  
 All payments to be made by a party (“payor”) hereunder shall be made in Dollars on the due date and in immediately available funds to the recipient’s (“payee”) account set forth
in Schedule 8.1 of this Agreement or to such other account as may be specified by such payee from time to time in a notice to such payor. Wherever any payment to be made under this Agreement shall be stated to be due on a day other than a Business
Day or a Local Business Day, such payment shall be made on the next succeeding Business Day or Local Business Day, as applicable. 
  

	8.2	Costs and Expenses 

  
 Each Originator agrees to pay, indemnify, and hold the Purchaser harmless from and against any and all other liabilities, obligations, losses, damages,
penalties, actions, judgements, suits, costs, expenses or disbursements of any kind or nature whatsoever (i) which may at any time be imposed on, incurred by or asserted against the Purchaser in any way relating to or arising out of this Agreement
or the other Transaction Documents or the transactions contemplated hereby and thereby or in connection herewith or any action taken or omitted by the Purchaser under or in connection with any of the foregoing, as much as the foregoing are
attributable to Receivables originated by such Originator (all such other liabilities, obligations, losses, damages, penalties, actions, judgements, suits, costs, expenses and disbursements being herein called “Indemnified
Liabilities”) or (ii) which would not have been imposed on, incurred by or asserted against the Purchaser but for its having acquired Receivables from such Originator hereunder; provided, however, that such indemnity shall not
be available to the extent that such Indemnified Liabilities are finally judicially determined to have resulted from the gross negligence or wilful misconduct of the Purchaser. The agreements of each Originator in this Section 8.2 shall survive the
collection of all Receivables originated by such Originator, the termination of this Agreement and the payment of all amounts payable hereunder. 
  

	8.3	Successors and Assigns 

  
 This Agreement shall be binding upon and inure to the benefit of the Originator and the Purchaser and their respective successors (whether by merger,
consolidation or otherwise) and permitted assigns. The Originator agrees that it will not assign or transfer all or any portion of its rights or obligations hereunder without the prior written consent of the Purchaser. 
  

	8.4	Governing Law 

  
 THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK AND WITHOUT REFERENCE TO ANY CONFLICT OF LAWS
PRINCIPLES (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW). 
  

	8.5	No Waiver; Cumulative Remedies 

  
 No failure to exercise and no delay in exercising, on the part of the Purchaser, any right, remedy, power or privilege hereunder, shall operate as a
waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise 

  

 - 31 - 

 
thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges herein provided are cumulative and not
exhaustive of any rights, remedies, powers and privileges provided by law. 
  

	8.6	Amendments and Waivers 

  
 Neither this Agreement nor any terms hereof may be amended, supplemented or modified except in a writing signed by the Purchaser and the Originators and
that otherwise complies with any applicable provision in the Transaction Documents. 
  

	8.7	Severability 

  
 Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

  

	8.8	Notices 

  
 All notices, requests and demands to or upon the respective parties hereto to be effective shall be in writing (including by telecopy), and, unless otherwise expressly provided herein, shall be deemed to have been
duly given or made when delivered by hand, or three (3) days after being deposited in the mail, postage prepaid, or, in the case of telecopy notice, when received, (i) addressed as follows in the case of the Purchaser and the Originator, (ii)
addressed as provided in the Asset Backed Loan Agreement in the case of the Administrative Agent or (iii) to such other address as may be hereafter notified by the respective parties hereto: 
  
 If to the Purchaser: 
  
 MEMEC, LLC 
  
 [Address] 
  
 Attention: 
 Telecopy: 
  
 If to an Originator: 
  
 INSIGHT ELECTRONICS LLC 
  
 [Address] 
  
 Attention: 
 Telecopy: 
  
 IMPACT SEMICONDUCTOR TECHNOLOGIES LLC

  
 [Address] 
  
 Attention: 
 Telecopy: 
  

 - 32 - 

 UNIQUE SEMICONDUCTOR TECHNOLOGIES INC. 
  
 [Address] 
  
 Attention: 
 Telecopy: 
  

	8.9	Counterparts 

  
 This Agreement may be executed by one or more of the parties to this Agreement on any number of separate counterparts (including by telecopy), and all of
said counterparts taken together shall be deemed to constitute one and the same instrument. A set of the copies of this Agreement signed by all the parties shall be lodged with the Purchaser. 
  

	8.10	Submission to Jurisdiction; Service of Process 

  

	 	(a)	Each of the parties hereto hereby submits to the nonexclusive jurisdiction of the United States District Court for the Southern District of New York and of any New York State court
sitting in the Borough of Manhattan, City of New York for purposes of all legal proceedings arising out of or relating to this Agreement or the transactions contemplated hereby. Each of the parties hereto hereby irrevocably waives, to the fullest
extent it may effectively do so, any objection which it may now or hereafter have to the laying of the venue of any such proceeding brought in such a court, any claim that any such proceeding brought in such a court has been brought in an
inconvenient forum and any claim based on its immunity from suit. Nothing in this Section 8.10(a) shall affect the right of any party hereto to bring any action or proceeding against another or its property in the courts of other jurisdictions.

  

	 	(b)	EACH PARTY WAIVES ITS RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF OR RELATED TO THIS AGREEMENT, OR THE TRANSACTIONS CONTEMPLATED HEREBY,
IN ANY ACTION, PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT BY EITHER PARTY AGAINST THE OTHER PARTY, WHETHER WITH RESPECT TO CONTRACT CLAIMS, TORT CLAIMS, OR OTHERWISE. EACH PARTY HERETO AGREES THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE
TRIED BY A COURT TRIAL WITHOUT A JURY. WITHOUT LIMITING THE FOREGOING, THE PARTIES HERETO FURTHER AGREE THAT THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY IS WAIVED BY OPERATION OF THIS SECTION 8.10(b) AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING
WHICH SEEKS, IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF THIS AGREEMENT OR ANY PROVISIONS HEREOF. THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT.

  

	8.11	No Bankruptcy Petition 

  

	 	(a)	 Each Originator, by entering into this Agreement, covenants and agrees, to the extent permissible under applicable law, that it will not institute against, or join
any other Person in instituting against, the Purchaser any bankruptcy, reorganization, arrangement, 

  

 - 33 - 

	 	 
insolvency or liquidation proceedings, or other proceedings (including, petitioning for the declaration of the Purchaser’s assets en
désastre) under any Applicable Insolvency Laws. 

  

	 	(b)	Notwithstanding anything elsewhere herein contained, the sole remedy of any Originator or any other Person in respect of any obligation, covenant, representation, warranty or
agreement of the Purchaser under or related to this Agreement shall be against the assets of the Purchaser. None of the Originators or any other Person shall have any claim against the Purchaser to the extent that such assets are insufficient to
meet such obligation, covenant, representation, warranty or agreement (the difference being referred to herein as a “shortfall”) and all claims in respect of the shortfall shall be extinguished. 

  

	8.12	Termination 

  
 This Agreement will terminate with respect to any Originator at such time as (a) the commitment of the Purchaser to purchase Receivables from such Originator hereunder shall have terminated pursuant to Section 7.1 or
otherwise and (b) all Receivables purchased from such Originator have been collected, and the proceeds thereof turned over to the Purchaser and all other amounts owing to the Purchaser hereunder with respect to such Receivables shall have been paid
in full or, if such Receivables have not been collected, such Receivables have become Defaulted Receivables and the Purchaser shall have completed its collection efforts in respect thereto; provided, however, that the indemnities of
any Originator to the Purchaser set forth in this Agreement shall survive such termination, and provided further that, to the extent any amounts remain due and owing to the Purchaser hereunder, the Purchaser shall remain entitled to
receive any Collections on Receivables originated by such Originator that have become Defaulted Receivables after it shall have completed its collection efforts in respect thereof. Notwithstanding anything to the contrary contained herein, if at any
time, any payment made by an Originator is rescinded or must be restored or returned by the Purchaser as a result of any Insolvency Event with respect to such Originator then such Originator’s obligations with respect to such payment shall be
reinstated as though such payment had never been made. 
  

	8.13	Responsible Officer Certificates; No Recourse 

  
 Any certificate executed and delivered by a Responsible Officer of an Originator or the Purchaser pursuant to the terms of the Transaction Documents shall
be executed by such Responsible Officer not in an individual capacity but solely in his or her capacity as an officer of such Originator or the Purchaser, as applicable, and such Responsible Officer will not be subject to personal liability as to
the matters contained in the certificate. A director, officer, manager (in the case of a limited liability company), employee, shareholder or member (in the case of a limited liability company), as such, of such Originator or Purchaser shall not
have liability for any obligation of such Originator or the Purchaser hereunder or under any Transaction Document or for any claim based on, in respect of, or by reason of, any Transaction Document, unless such claim results from the gross
negligence, fraudulent acts or wilful misconduct of such director, officer, employee, manager (in the case of a limited liability company) or shareholder or member (in the case of a limited liability company). 
  

	9.	Administration and Collections 

  

	9.1	Appointment of Sub-Collection Agent 

  

	 	(a)	 The Purchaser, as Collection Agent under the Asset Backed Loan Agreement, hereby appoints each Originator with respect to Receivables originated by it (and each
Originator hereby accepts such appointment) as its agent to service, collect and administer such Receivables in 

  

 - 34 - 

	 	 
accordance with the relevant Policies and the terms hereof and perform all related functions (acting in such capacity, the “Sub-Collection
Agent”). 

  

	 	(b)	In consideration for acting as Sub-Collection Agent hereunder, the Collection Agent agrees to pay the Sub-Collection Agent the Sub-Servicing Fee. 

  

	9.2	Duties of Sub-Collection Agent 

  
 The Sub-Collection Agent shall carry out its duties as collection agent in accordance with the provisions, requirements and duties of care specified in
Section 2.08(b) (in respect of each Lock-Box Account) and Section 6.02(a), (d) and (e) of the Asset Backed Loan Agreement, as if the provisions thereof were incorporated herein mutatis mutandis but interpreted as if references therein to the
Collection Agent were references to the Sub-Collection Agent. 
  

	9.3	Collections 

  
 All collections and payments with respect to the Receivables shall be made by the Sub-Collection Agent in accordance with and pursuant to the terms of the Asset Backed Loan Agreement and the Contribution Agreement.

  

	9.4	Termination of Appointment of Sub-Collection Agent 

  
 If any event referred to in Section 6.04 of the Asset Backed Loan Agreement occurs in relation to the Sub-Collection Agent or an Originator Termination
Event occurs with respect to such Sub-Collection Agent, then the Collection Agent may and shall at the direction of the Administrative Agent, terminate the appointment of the Sub-Collection Agent and appoint a successor Sub-Collection Agent in
accordance with the provisions of the Asset Backed Loan Agreement. 
  

	9.5	Rights after Appointment of New Sub-Collection Agent 

  
 At any time following the appointment by the Collection Agent of a successor Sub-Collection Agent (other than the Collection Agent or any of its
Affiliates) in accordance with the provisions of the Asset Backed Loan Agreement, the Originator shall, at the Collection Agent’s request, assemble all of the Originator Documents and shall make the same available to the Collection Agent or any
successor Sub-Collection Agent. 
  

	10.	Additional Originators 

  
 Any affiliate of the Purchaser or the Originators may be made a party hereto as an additional originator in accordance with the procedures set forth in
the Asset Backed Loan Agreement. 
  

 - 35 - 

 IN WITNESS WHEREOF, the parties hereto have caused this U.S. Receivables Purchase Agreement to be executed by
their respective officers thereunto duly authorized, all as of the day and year first above written. 
  

			
	 INSIGHT ELECTRONICS LLC, 
 as
Originator and Sub-Collection Agent

		
	 By:
	 	 
	 	 	 Name:

	 	 	 Title:

	
	IMPACT SEMICONDUCTOR TECHNOLOGIES LLC, as Originator and Sub-Collection Agent
	 By:
	 	 
	 	 	 Name:

	 	 	 Title:

  

			
	UNIQUE SEMICONDUCTOR TECHNOLOGIES INC. as Originator and Sub-Collection Agent
		
	 By:
	 	 
	 	 	 Name:

	 	 	 Title:

	
	 MEMEC LLC,
 as Purchaser

	 By:
	 	 
	 	 	 Name:

	 	 	 Title:

  

 Schedule 2.1(d) 
  

 Originator Daily Report 
  
 [To Be Inserted] 
  

 Schedule 3.1(e)(i)(a) 
  

 Form of California Counsel Opinion 
  
                         , 2000 
  

			
	Triangle Receivables Funding LLC	  	Park Avenue Receivables Corporation
	c/o Memec, LLC	  	 [address]

	[Address]	  	 

  

			
	The Chase Manhattan Bank,	  	Sheffield Receivables Corporation
	 as Administrative Agent
	  	[address]
	[address]	  	 

  

	Re:	Unique Semiconductor Technologies Inc. 

  
 Ladies and Gentlemen: 
  
 We have acted as local counsel for Unique Semiconductor Technologies Inc., a California corporation (“Unique”), in connection with
Unique’s sale of certain trade receivables pursuant to that certain U.S. Receivables Purchase Agreement, dated as of                 , 2000 (the
“Purchase Agreement”) between Insight Electronics, LLC, a Delaware limited liability company, Impact Semiconductor Technologies LLC, a Delaware limited liability company and Unique and Memec, LLC, a Delaware limited liability
company (the “Purchaser”). This opinion is being delivered to you at the request of Unique pursuant to Section 3.1(e)(i) of the Purchase Agreement. For convenience, capitalized terms used but not defined this letter have the
meanings given in the Purchase Agreement. 
  
 1. Documents
Reviewed. For purposes of this opinion, we have examined originals or copies certified or otherwise authenticated to our satisfaction of the following documents, all of which, unless otherwise indicated, are dated as of the date of this letter
(the “Documents”): 
  
 (a) the
Purchase Agreement; 
  
 (b) a certified copy of
the Articles of Incorporation of Unique filed on              with the California Secretary of State and certified by the California Secretary of State on
            ; 
  
 (c) a certified copy of the Bylaws of Unique dated              and
certified by Unique on             ; 
  
 (d) a Certificate of Status issued by the California Secretary of State dated
             with respect to Unique; 
  

 Triangle Receivables Funding LLC 
 The Chase Manhattan Bank 
 Park Avenue Receivables Corporation 
 Sheffield Receivables Corporation 
 ______________, 2000 
 Page 2 
  

 (e) a Tax Clearance Certificate issued by the Franchise Tax Board of the State of
California dated              with respect to Unique; 
  
 (f) an Action by Written Consent of the Directors of Unique dated
            ; and 
  
 (g) the certificate of certain officers of Unique in the form of Exhibit A (the “Officers’ Certificate”).

  
 The Documents listed under items (b) and (c)
above are sometimes collectively referred to herein as the “Formation Documents.” 
  
 2. Assumptions. In our examination, we have assumed the genuineness of the signatures on the Purchase Agreement and the completeness thereof, other
than the signature of Unique, the authenticity of all documents submitted to us as originals, and the conformity with authentic original documents of all documents submitted to us as copies. 
  
 In rendering this opinion, we have assumed, with respect to the Documents
(except, to the extent set forth in the opinions expressed below, as to Unique), (a) the accuracy of the statements and representations of fact set forth in the Documents; (b) the existence, good standing, and capacity of each of the parties or
signatories to the Documents; (c) that each of the parties or signatories thereto, has the right, power, and authority to act in the capacity with which it is to act and to perform its obligations and exercise its authority under and with respect to
the Purchase Agreement; (d) that the execution and delivery of the Documents by the parties and signatories thereto, have been duly authorized; (e) that the parties or signatories thereto, have in fact executed and delivered the Documents to which
they are parties or signatories; and (f) that the Purchase Agreement constitutes a legal, valid and binding obligation of all of those persons party thereto, enforceable in accordance with its terms as of the Effective Date of the referenced
transaction. 
  
 With respect to matters of fact relevant
to the opinions expressed in this letter, we have relied on the factual representations set forth in the Documents and have made such inquiries of the officers of the Unique as we deem necessary, the replies to which are set forth in the
Officers’ Certificate. We have represented Unique in connection with this particular transaction and we are not familiar with all aspects of Unique’s business affairs. 
  

 Triangle Receivables Funding LLC 
 The Chase Manhattan Bank 
 Park Avenue Receivables Corporation 
 Sheffield Receivables Corporation 
 ______________, 2000 
 Page 3 
  

 With respect to our opinion set forth in Paragraph 3(b) that Unique has the “corporate
power” to take certain action, we interpret that phrase to mean that the action would not be ultra vires with respect to Unique. 
  
 3. Opinions. Subject to the assumptions and qualifications set forth in other portions of this letter and having reviewed such questions of law as
we have deemed necessary for the purpose of rendering the opinions set forth herein, it is our opinion that: 
  
 (a) Formation and Existence. Unique was duly formed as a corporation and is validly existing and in good standing as a corporation
under the General Corporation Law of the State of California. 
  
 (b) Authority. Unique has the corporate power and authority to transact business in the State of California, to carry on its business as the same is presently being conducted, to execute and deliver the
Purchase Agreement and to perform its obligations thereunder. 
  
 (c) Authorization. The execution and delivery of the Purchase Agreement by Unique, and the performance by Unique of its obligations thereunder, has been duly authorized by all necessary corporate action on the
part of Unique 
  
 (d) No Conflicts. The
execution and delivery of the Purchase Agreement by Unique, the performance by Unique of its obligations thereunder to be performed as of Effective Date, and the consummation by Unique of the transactions contemplated by the Purchase Agreement do
not and will not violate the Formation Documents of Unique. 
  
 (e) Execution and Delivery. The Purchase Agreement has been duly executed and delivered by Unique. 
  
 4. Qualifications. The foregoing opinions are subject to the following limitations and exceptions: 
  
 (a) We are authorized and licensed to practice law only in
the State of California and in rendering the foregoing opinions we have conducted, to the extent we deem necessary, reasonable inquiry and examination of applicable laws of the State of California and the United States in existence on the date
hereof. We express no opinion as to the laws of any other time or jurisdiction, the applicability of the laws of any particular jurisdiction, or the enforceability of any choice of law provision in the Purchase Agreement. We do not assume any

  

 Triangle Receivables Funding LLC 
 The Chase Manhattan Bank 
 Park Avenue Receivables Corporation 
 Sheffield Receivables Corporation 
 ______________, 2000 
 Page 4 
  

 
continuing obligation or responsibility to advise you of any changes in law, or any change of circumstances of which we may become aware, which may affect
the conclusions reached in this opinion. 
  
 (b)
No opinion is expressed with respect to the effect on any of the matters opined upon in this letter of (i) bankruptcy, insolvency, reorganization, receivership, moratorium and other similar laws affecting the rights and remedies of creditors
generally, (ii) state fraudulent transfer and conveyance laws, (iii) other similar laws affecting creditors’ rights generally, or (iv) general principles of equity, regardless of whether such enforcement is considered in a proceeding in equity
or at law. 
  
 (c) All opinions expressed herein
are subject to the following, as applicable: (i) the parties’ duty to act in accordance with the covenants of good faith and fair dealing implied in every agreement under California law, (ii) Section 1670.5 of the California Civil Code
regarding unconscionability of contracts, and (iii) the parties’ duty to act in accordance with the obligation of good faith required by Section 1203 of the Code. 
  
 (d) A requirement that provisions in the Purchase Agreement may be waived only in writing may not be
enforced to the extent that an oral agreement has been performed modifying the provisions of the Purchase Agreement. 
  
 (e) We express no opinion as to: 
  
 (i) the applicability or effect of or compliance with the Revenue and Taxation Code of California or the Internal Revenue Code of the
United States; and 
  
 (ii) the applicability or
effect of or compliance with any state or federal securities laws. 
  
 (f) All opinions expressed herein are subject to the effect of generally applicable rules of law that: 
  
 (i) limit the availability of a remedy under certain circumstances where another remedy has been elected; 
  
 (ii) may permit a party who has materially failed to render
or offer performance required by the contract to cure that failure unless (i) permitting a cure would unreasonably hinder the aggrieved party from making substitute arrangements for 

  

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 Park Avenue Receivables Corporation 
 Sheffield Receivables Corporation 
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performance, or (ii) it was important in the circumstances to the aggrieved party that performance occur by the date stated in the contract; and 

 
 (iii) impose limitations on attorneys’ or
trustees’ fees. 
  
 (g) We have not
inspected or reviewed the books and records of Unique except as specified in this letter, nor have we made a physical inspection of any of Unique’s assets or any investigation of the state of title to any such assets. 
  
 We expressly decline any continuing obligation to advise you after the date
of this opinion of any changes in the foregoing or any changes of circumstances of which we may become aware that may affect the conclusions reached herein. This opinion is delivered at the request of Unique, solely for your benefit in connection
with the Purchase Agreement, and may not be relied upon by any other person or for any other purpose; nor may it be used, circulated, published, communicated, quoted or otherwise referred to or made available to any other person without, in each
instance, our prior written consent. Notwithstanding the foregoing, the persons listed in Exhibit A attached hereto are entitled to rely on this opinion letter as though the same were addressed to each of them, subject to the condition that
by acceptance of this letter each person listed on Exhibit A recognizes and acknowledges that: (i) no attorney-client relationship has existed between our firm and such person in connection with the transactions described in this opinion or
by virtue of this opinion letter, and (ii) in order to provide this letter, our firm undertook no duties or responsibilities and conducted no activities in addition to those undertaken or conducted for purposes of the rendering of this opinion
letter to the addresses hereof. We disclaim any obligation to update this opinion letter for events occurring or coming to our attention after the date hereof. 
  

Very truly yours, 
  
 FARELLA BRAUN & MARTEL LLP 
  

 Triangle Receivables Funding LLC 
 The Chase Manhattan Bank 
 Park Avenue Receivables Corporation 
 Sheffield Receivables Corporation 
 ______________, 2000 
 Page 6 
  

 EXHIBIT A 
  
 Standard & Poor’s Rating Services, 
 a division of the McGraw Hill Companies, Inc. 
 [address] 
  
 Moody’s Investor Services Inc. 
 [address] 
  
 Clifford Chance Rogers & Wells LLP 
 [address] 
  

 Schedule 3.1(e)(i)(b) 
  

 Form of California Counsel Opinion 
  
                     , 2000

  

			
	Memec, LLC, as Purchaser	  	Park Avenue Receivables Corporation
		
	[address]	  	[address]
		
	 The Chase Manhattan Bank,
 as Administrative
Agent
	  	Sheffield Receivables Corporation
	 450 West 33rd Street
 15th Floor
 New York, NY
10001
	  	 [address]

  

	Re:	Insight Electronics LLC, Impact Semiconductor Technologies LLC, Unique Semiconductor Technologies Inc. U.S. Receivables Purchase Agreement Perfection of Security Interest 

  
 Ladies and Gentlemen: 
  
 We have acted as local counsel for (i) Insight Electronics LLC, a Delaware
limited liability company (“Insight”), (ii) Impact Semiconductor Technologies LLC, a Delaware limited liability company (“Impact”) and (iii) Unique Semiconductor Technologies Inc., a California corporation
(“Unique”, and collectively with Insight and Impact the “Originators”), in connection with the purchase of certain trade receivables of the Originators pursuant to that certain U.S. Receivables Purchase Agreement
dated as of             , 2000, (the “U.S. RPA”), among the Originators, as Originators and as Sub-Collection Agents, and Memec, LLC, a Delaware limited liability
company, as Purchaser (“Purchaser”). 
  
 Under
the terms of the U.S. RPA, the Originators will transfer (the “Transfer”) to the Purchaser, all of their right, title and interest in and to rights to payment, whether now existing or hereafter created, arising out of the sale of
merchandise or the rendering of services by an Originator, which rights to payment are identified in an Originator Daily Report concurrently delivered to the Purchaser and identified in the Financing Statements described below (as so identified,
collectively, the “Receivables”). 
  
 This
opinion is being furnished pursuant to Subsection 3.1(e) of the U.S. RPA. Capitalized terms used but not otherwise defined herein have the meanings ascribed in the U.S. RPA. In this letter, the term “Code” means the Uniform
Commercial Code as currently in effect in the State of California, and the term “Proceeds” means all proceeds, as defined in the Code, of the Receivables. 
  

 Memec LLC 
 The Chase Manhattan Bank 
 Park Avenue Receivables Corporation 
 Sheffield Receivables Corporation 
 ______________, 2000 
 Page 2 
  

 1. Documents. For purposes of rendering this opinion, we have examined originals or copies
identified to our satisfaction of the following documents: 
  
 (a) the U.S. RPA; 
  
 (b) an acknowledgment copy of the UCC-1 Financing Statements naming the Originators as Debtors and the Purchaser as Secured Party, each filed on             , 2000 with the
California Secretary of State as Document Nos.                     ,
                        ,
                     and file-stamped “FILED SACRAMENTO, CA,
            , 2000” (the “Financing Statements”). 
  
 We have also made such investigations of law as we have deemed necessary as a basis for the opinions set forth herein. As to matters of fact relevant to
the opinions contained herein, we have made such inquiries of and been furnished with such certificates from certain of the officers of the Originators as we deem necessary for the purposes of this opinion, but we have made no independent
investigation as to any matter of fact, nor have we independently verified any information obtained from or certified by such officers or third parties. As to such matters of fact, we have relied solely upon (i) such inquiries and certificates, and
(ii) the information and representations contained in the documents listed above examined by us. We have represented the Originators in connection with this specific transaction only. We have acted only as local counsel to the Originators and are
not generally familiar with the Originators’ backgrounds, operating histories or other business and affairs. 
  
 2. Assumptions. For purposes of this opinion, we have assumed (i) the due authorization, execution and delivery by all parties thereto of the
documents listed above examined by us; (ii) that all such parties have the legal power to act in the capacities in which they are to act under such documents; (iii) the conformity to the original documents of any documents submitted to us as
certified or photostatic copies, the authenticity of the documents and the genuineness of all signatures on the documents; (iv) that each such document is the legal, valid and binding obligation of all parties thereto, enforceable against each such
party in accordance with its terms; (v) that the U.S. RPA creates a valid sale or security interest in favor of the Purchaser in the Receivables and Proceeds and (vi) that each such party has performed and will perform its obligations thereunder.
With respect to the assumptions in clause (iv) and (v) of this paragraph as they relate to the Originators and the U.S. RPA, we understand that you are relying on the separate opinion of Clifford Chance Rogers & Wells, New York, of even date
herewith addressed to you. 
  
 In expressing the opinions set
forth herein we have relied, without independent investigation, upon a UCC Search Report for each of the Originators obtained from the Secretary of State of California dated as of
            , 2000 showing filings through 

  

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            , 2000 (the “UCC Search Date[s]”) with respect to financing
statements and related filings and certain notices of federal tax liens, California state tax liens and judgment liens with respect to the Originators on file with the office of the California Secretary of State, (the “UCC Search
Reports”). 
  
 With respect to the opinions contained
herein, we have assumed the following, without independent investigation or verification: 
  
 (A) based upon the certificates of certain of the officers of the Originators, that the principal place of business and chief executive
office for Impact is located at                     , for Insight is located at
                         and for Unique is located at
                     and that substantially all offices, books, records, equipment and tangible personal property of the Originators are
located in the State of California; 
  
 (B) based
upon the certificates of certain of the officers of the Originators, that none of the Originators has changed its name, whether by amendment of its Certificate of Formation or Articles of Incorporation, as applicable, by reorganization or otherwise,
within the four months next preceding the date any of the Receivables came into existence; 
  
 (C) based upon the certificates of certain of the officers of the Originators, that none of the Originators has changed its principal
place of business or its chief executive office within the last four months; 
  
 (D) based upon the certificates of certain of the officers of the Originators and the representations and warranties of the Originators set forth in the U.S. RPA, that the Originators will be the legal and beneficial
owners of all right, title and interest in and to those Receivables transferred by the Originators to the Purchaser immediately prior to the transfer of such Receivables, free and clear of all liens (other than certain liens permitted by the U.S.
RPA), and that, after giving effect to such transfer, no liens or claims against the Receivables (other than the claim of the Purchaser or other claims or interests contemplated under the U.S. RPA) will exist; 
  
 (E) that at the time of filing of the Financing Statements,
and at the time that any Receivables are transferred to the Purchaser, the Purchaser had no notice or knowledge of any adverse claims, rights, liens, defenses or interests affecting the Receivables other than as contemplated by the U.S. RPA;

  

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 The Chase Manhattan Bank 
 Park Avenue Receivables Corporation 
 Sheffield Receivables Corporation 
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 (F) that the UCC Search Report is accurate and complete and, based upon the
certificates of certain of the officers of the Originators, that no financing statements or related filings or notices of federal or state tax liens or notices of judgment liens, or other filings or notices evidencing claims, liens, encumbrances or
interests with respect to the Receivables have been made or filed with respect to the Originators between the UCC Search Date[s] and the date hereof or, if such filings or notices have been made or filed, such notices or filings do not relate to the
Receivables or have been effectively terminated and released; 
  
 (G) based on certificates of certain officers of the Originators, that the Receivables arise out of the sale of goods or rendering of services by an Originator that any writing or writings constituting or evidencing
the Receivables do not, and, at all times relevant to the opinions rendered herein, will not: (i) consist of an unconditional promise or order to pay a fixed amount of money which is payable to bearer or order; (ii) contemplate the transfer thereof
in the ordinary course of business by delivery with any necessary endorsement or assignment; or (iii) evidence a security interest in or lease of specific goods, and that during the term of the U.S. RPA, the legal nature of the Proceeds will not
change from “instruments” or “accounts” or “general intangibles” or “instruments” or “chattel paper” or “money” as defined in the Code; 
  
 (H) that in the event that a change in any Originator’s
name, identity or corporate structure makes any Financing Statement, or any continuation statement thereof, seriously misleading within the meaning of Section 9402(7) of the Code, or any Originator moves the location of its place of business or
chief executive office, that the Purchaser will file or cause to be filed such financing statements, continuation statements or amendments as may be necessary to continue the perfection of the Purchaser’s interest in the Receivables, as
required by the U.S. RPA, within the time specified in Section 9402(7) of the Code or Section 9103(3)(e) of the Code, as the case may be; 
  
 (I) that the Originators and the Purchaser will file within the time specified by Section 9403 of the Code any continuation statement that
may be necessary to continue the perfection of the Purchaser’s interest in the Receivables; and 
  
 (J) that there are no equities arising from actual or constructive fraud in the conduct of the Purchaser and there has been no act of
management or control of the Originators by the Purchaser that would allow or require subordination of the claims of the Purchaser pursuant to principles of equity in an insolvency proceeding. 
  

 Memec LLC 
 The Chase Manhattan Bank 
 Park Avenue Receivables Corporation 
 Sheffield Receivables Corporation 
 ______________, 2000 
 Page 5 
  

 3. Opinions. Based upon and subject to the foregoing and to the assumptions, qualifications
and limitations set forth below, we are of the opinion that: 
  
 (a) Form of Financing Statement. The Financing Statements are in appropriate form for filing in the State of California and have been duly filed in the appropriate filing office in such State and the fees and
document taxes, if any, payable in connection with the said filing of the Financing Statements have been paid in full. 
  
 (b) Characterization of Receivables. The Receivables constitute “accounts” as described in Section 9106 of the Code.

  
 (c) Perfection and Priority. The
Financing Statements having been filed in the office of the California Secretary of State, the interest of the Purchaser in the Receivables and Proceeds constitutes a fully perfected interest in Receivables in existence as of the date of the
execution and delivery of the U.S. RPA, Receivables which come into existence after the date hereof (the “After-Arising Receivables”), as of and after the time those After-Arising Receivables come into existence, and Proceeds of any
of the foregoing. 
  
 Subject to (A) liens permitted by the U.S.
RPA, and (B) the Originators’ right to receive payments as provided in the U.S. RPA, and the matters discussed elsewhere in this letter, such interest is a first priority, perfected interest, enforceable as a security interest against, and is
prior to, all creditors of and purchasers from the Originators, and the Purchaser will have the rights of a secured creditor properly perfected under state law in a bankruptcy or insolvency proceeding with respect to the Originators, except, in each
case, (i) with respect to Receivables or Proceeds evidenced by instruments (as defined in Section 9105(1)(i) of the Code), or money, which are not in the possession of the Purchaser; and (ii) as priority may be subject to (A) liens under Section
4210 of the Code (relating to the security interest of collecting banks), (B) claims of the United States under the federal priority statute (31 U.S.C. § 3713), (C) with respect to Receivables or Proceeds represented by chattel paper, the
interest of a purchaser of such chattel paper under Section 9308 of the Code, and (D) with respect to Receivables or Proceeds evidenced by instruments, security interests of third parties perfected for 21 days under Section 9304(4) or (5)(b) of the
Code. With respect to clauses (i), (ii)(C) and (ii)(D), we have assumed that the Originators will take no action to cause any Receivable to be evidenced by an instrument or chattel paper. We also refer you to our opinion regarding the
characterization of the Receivables set forth in Paragraph 3(a). 
  
 We further note that unless the Obligor in respect of a Receivable has received notice of the transfer to the Purchaser, bona fide payments made by such Obligor to the Originators, or to a subsequent assignee of such Receivable as to which
the Obligor has received notice of such assignment, will discharge such Obligor’s obligations to the extent of such payment, and such payment will be recoverable only from the Originators, which recovery may be impaired in a subsequent
insolvency of the Originators. 
  

 Memec LLC 
 The Chase Manhattan Bank 
 Park Avenue Receivables Corporation 
 Sheffield Receivables Corporation 
 ______________, 2000 
 Page 6 
  

 (d) UCC Choice of Law; Other Actions. Pursuant to Section 9103 of the Code,
the perfection and the effect of perfection or nonperfection of the Purchaser’s interest in the Receivables and Proceeds is governed by the laws of the State of California and any applicable federal law. No filing or other action, other than
the filing of the Financing Statements with respect to the Purchaser’s interest in the Receivables and Proceeds in the office of the California Secretary of State (which Financing Statements having been filed) is necessary to perfect or
continue the perfected status under California law of the interest of the Purchaser, with respect to the Receivables and Proceeds against third parties, except that appropriate continuation statements must be filed with respect to the Financing
Statements at 5-year intervals to continue the perfection of such security interest and that in the event that a change in any Originator’s name, identity or corporate structure makes any Financing Statement, or any continuation statement
thereof, seriously misleading within the meaning of Section 9402(7) of the Code, or any Originator moves the location of its place of business or chief executive office, additional financing statements, continuation statements or amendments may need
to be filed to continue the perfection of the Purchaser’s interest in the Receivables, as required by the U.S. RPA, within the time specified in Section 9402(7) of the Code or Section 9103(3)(e) of the Code, as the case may be. 
  
 4. Qualifications. The foregoing opinions are subject to the following
assumptions, qualifications and exceptions: 
  
 (A) The opinions contained in this letter are limited to the laws of the State of California and of the United States of America in effect on the date of this letter, as applied to the factual circumstances on which we have relied (as set
forth above) in existence on the date hereof. We express no opinion as to the laws of any other time or jurisdiction, or (except to the extent set forth in Section 3(d)) the applicability of the laws of any particular jurisdiction, or the
enforceability of any choice of law provision in the U.S. RPA. We do not assume any continuing obligation or responsibility to advise you of any changes in law, or any change of circumstances of which we may become aware, which may affect the
conclusions reached in this opinion. 
  
 (B) No
opinion is expressed as to the Originators’ title to the Receivables or Proceeds, or as to whether the transfer of the Receivables and Proceeds constitutes a true sale or the grant of a security interest, see, e.g., Octagon Gas
Systems v. Rimmer (In re Meridian Reserve, Inc.), 995 F.2d 948 (10th Cir. 1993). 
  
 (C) No opinion is expressed with respect to the effect of (i) bankruptcy, insolvency, reorganization, receivership, moratorium and other
similar laws affecting the rights and remedies of creditors generally (except as expressly provided in the first 

  

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 The Chase Manhattan Bank 
 Park Avenue Receivables Corporation 
 Sheffield Receivables Corporation 
 ______________, 2000 
 Page 7 
  

 
sentence of the second paragraph of Paragraph 3(c) as to the Purchaser’s rights as a secured creditor under state law), or (ii) state fraudulent
transfer and conveyance laws. 
  
 (D) No opinion
is expressed as to the priority of any interest of the Purchaser in the Receivables and Proceeds against: (i) any liens, claims or other interests that arise by operation of law and do not require any filing, possession or similar action in order to
take priority over security interests perfected through the filing of a UCC financing statement or by taking possession of collateral as contemplated by Article 9 of the Code; (ii) any improperly recorded claims arising prior to the date hereof;
(iii) any claim or lien in favor of the United States or any agency or instrumentality thereof (including, without limitation, liens arising under Title IV of the Employee Retirement Income Security Act of 1974, as amended; (iv) Proceeds due from
any federal, state or local government; or (v) any lien for the payment of federal, state or local taxes or charges which are given priority by operation of law, including, without limitation, Sections 6321 and 6323 of the Internal Revenue Code.
With respect to the qualification contained in clause (i) of this paragraph, we note that in the course of our acting as counsel to the Originators in this matter, and without independent investigation (and, with your permission, without performing
research as to any legal matter) we have not become aware of (a) any lien, claim or other interest that arises by operation of law and does not require filing, possession or similar action in order to take priority over security interests perfected
as described herein which might be asserted against the Receivables or Proceeds other than the claims and liens specified in clauses (iii) and (v) above and the claims and liens referred to in clause (ii) of the second paragraph of Paragraph 3(b)
above; or (b) any such lien, claim or other interest that has been asserted against the Receivables or Proceeds. With respect to the qualification contained in clause (iv) of this paragraph, we note that certain of the officers of the Originators
have provided us with certificates to the effect that none of the Obligors on any of the Receivables are the United States, any state or local government, or any agency or instrumentality of the United States or any state or local government.

  
 (E) No opinion is expressed with respect to
the perfection or priority of the Purchaser’s interest in the Proceeds of any Receivables, except to the extent such Proceeds are governed by the Code and consist of proceeds received by the Purchaser or the Originators not more than nine days
before the date on which perfection or priority is being determined; provided, that the Purchaser’s interest in such Proceeds will be limited to the extent provided in Section 9306 of the Code. 
  
 (F) We express no opinion as to the security interest of the
Purchaser in any property or interest therein perfected under the laws of another jurisdiction. 
  

 Memec LLC 
 The Chase Manhattan Bank 
 Park Avenue Receivables Corporation 
 Sheffield Receivables Corporation 
 ______________, 2000 
 Page 8 
  

 (G) We have not inspected or reviewed the books and records of the Originators except
as specified in this letter, nor have we made a physical inspection of any of the Originators’ assets or any investigation of the state of title to any such assets. 
  
 This opinion is delivered at the request of the Originators, solely for the benefit of each of you in connection with the
U.S. RPA, and may not be relied upon by any other person or for any other purpose; nor may it be used, circulated, published, communicated, quoted or otherwise referred to or made available to any other person without, in each instance, our prior
written consent. Notwithstanding the foregoing, the persons listed in Exhibit A attached hereto are entitled to rely on this opinion letter as though the same were addressed to each of them, subject to the condition that by acceptance of this
letter each person listed on Exhibit A recognizes and acknowledges that: (i) no attorney-client relationship has existed between our firm and such person in connection with the purchase of the Receivables or by virtue of this opinion letter,
and (ii) in order to provide this letter, our firm undertook no duties or responsibilities and conducted no activities in addition to those undertaken or conducted for purposes of the rendering of this opinion letter to the addresses hereof. We
disclaim any obligation to update this opinion letter for events occurring or coming to our attention after the date hereof. 
  
 Very truly yours, 
  
 FARELLA BRAUN & MARTEL LLP 
  

 EXHIBIT A 
  
 Standard & Poor’s Rating Services, 
 a
division of the McGraw Hill Companies, Inc. 
  
 Moody’s Investor Services
Inc. 
  
 Clifford Chance Rogers & Wells LLP 
  

 Schedule 3.1(e)(ii) 
  

 Form of New York Counsel Opinion 
  
 [    ], 2000 
  
 To the Persons Listed 
 on Schedule I hereto 
  
 Ladies and Gentlemen: 
  
 We have acted as special New York counsel to (i) Memec, LLC, a Delaware limited liability company (the “Memec”), (ii)
Insight Electronics, LLC, a Delaware limited liability company (“Insight”), (iii) Impact Semiconductor Technologies LLC, a Delaware limited liability company (“Impact”) and (iv) Unique Semiconductor Technologies
Inc., a California corporation (“Unique” and together with Insight and Impact, the “U.S. Originators”) in connection with the purchase by Memec of certain trade receivables pursuant to the U.S. Receivables Purchase
Agreement dated as of [    ], 2000 (the “U.S. RPA”) among the Contributor and the U.S. Originators. This opinion is being delivered pursuant to Section 3.1(e)(ii) of the U.S. RPA. Capitalized terms not otherwise
defined herein have the meanings assigned to such terms in the U.S. RPA. 
  
 In
rendering the opinions expressed below, we have examined originals or copies certified or otherwise authenticated to our satisfaction of the following documents (collectively, the “Documents”): 
  
 1. the U.S. RPA; and 
  
 2. Unfiled copies of the financing statements naming the U.S. Originators, as
“Debtors” and Memec, LLC, as “Secured Party” and describing the U.S. RPA and the relevant Receivables, which we understand will be filed in the relevant filing offices. 
  
 In addition, we have reviewed and relied on the legal opinion of Richards, Layton &
Finger (as to certain Delaware corporate law matters relating to Memec, Insight and Impact) and the legal opinion of Farella Braun & Martel (as to certain California corporate law matters relating to Unique), each addressed to you and dated the
date hereof. 
  
 We have examined and relied upon originals and copies certified
to our satisfaction of such other documents, and such matters of law, as we have deemed necessary in connection with the opinions hereinafter expressed. In such examination, we have assumed the genuineness of all signatures, the authenticity of all
documents submitted to us as originals, the conformity to the originals of all such documents submitted to us as certified, conformed or photostatic copies, and the authenticity of the originals of such latter documents. As to questions of fact
material to such opinions we have, when 

  

 To the Persons Listed 
 on Schedule I hereto 
 [  ], 2000 
  

 
relevant facts were not independently established, relied upon the representations, warranties, covenants and other agreements of the various parties
contained in the Documents. 
  
 We have assumed for purposes of our opinions
hereinafter set forth that the Documents have been duly authorized, executed and delivered by each of the parties thereto, and that each such party has full power, legal right and authority to make and perform its obligations under such documents to
which it is a party, and each Document constitutes, on the date hereof, the legal, valid and binding obligation of each such party (other than Memec and the U.S. Originators), enforceable against such party in accordance with its respective terms.
In addition, we have assumed that each of the parties thereto is duly organized, validly existing and in good standing under the laws of such party’s jurisdiction of organization and that each of the parties to the Documents has obtained all
approvals, authorizations, consents and licenses (including any foreign exchange licenses) from, and has made all filings and registrations with, all governmental or regulatory authorities or agencies required for the execution and delivery of, or
for the performance of its obligations under, the Documents. 
  
 Based upon the
foregoing and subject to the comments and qualifications set forth below, we are of the opinion that: 
  
 (i) upon due authorization, execution and delivery by each party thereto, the U.S. RPA will constitute the legal, valid and binding
obligation of Memec and the U.S. Originators, enforceable against each in accordance with its terms, subject to bankruptcy, insolvency, reorganization or other laws relating to or affecting creditors’ rights generally and to the application of
general equity principles; and 
  
 (ii) pursuant
to Section 2.1 of the U.S. RPA, together with an Originator Daily Report identifying Receivables offered to be sold by the U.S. Originators to Memec, the acceptance of such offer and the payment of the Purchase Price therefor, the U.S. Originators
have created in favor of Memec a valid “security interest” (as defined in Section 1-201 of the Uniform Commercial Code as in effect in the State of New York (the “New York UCC”), which includes any interest of a buyer of
accounts or chattel paper which is subject to Article 9 of the New York UCC in all right, title, and interest of the U.S. Originators in, to and under such Receivables; provided that the transfer of such Receivables may not be effective
against a lien creditor (as defined in Section 9-301(3) of the Uniform Commercial Code as in effect in the state in which the U.S. Originators’s chief executive offices are located (the “Originator UCC”), unless financing
statements have, on or before the Effective Date, been filed under the Originator UCC in the proper filing offices naming the U.S. Originators as debtors and Memec as secured party and describing the Receivables. 
  

 To the Persons Listed 
 on Schedule I hereto 
 [  ], 2000 
  

 Our opinion in (i) above is subject to the following qualifications and limitations: 
  

	 	(A)	We express no opinion as to whether a federal or state court outside of the State of New York would give effect to the choice of New York law provided for in the U.S. RPA.

  

	 	(B)	We express no opinion as to Section 8.6 of the U.S. RPA insofar as such Section provides that the terms of the U.S. RPA may not be waived or modified except in writing, which may be
limited under certain circumstances. 

  

	 	(C)	We express no opinion as to Section 8.7 of the U.S. RPA, which provides that the partial invalidity of one or more provisions thereof shall not invalidate the remaining provisions
thereof. 

  

	 	(D)	We express no opinion as to the waiver of inconvenient forum set forth in Section 8.10 of the U.S. RPA in so far as such provision relates to proceedings in the United States
District Court for the Southern District of New York. 

  

	 	(E)	We express no opinion as to the waiver of jury trial set forth in Section 8.10 of the U.S. RPA. 

  
 Our opinion in (ii) above is subject to the following qualification and limitations: 
  

	 	(a)	We have assumed that the Receivables exist and we express no opinion as to the nature or extent of the rights or title of Memec in or to the Receivables. 

 

	 	(b)	We express no opinion regarding the security interest in any of the Receivables consisting of claims against any government or governmental agency (including, without limitation,
the United States of America or any state thereof or any agency or department of the United States of America or any state thereof). 

  

	 	(c)	In the case of any Receivable secured by other property, we express no opinion with respect to the rights of Memec in and to such underlying property. 

  

	 	(d)	We express no opinion as to the priority of any security interest purported to be created by the U.S. RPA. 

  

	 	(e)	We express no opinion as to the perfection of any ownership or security interest to or in the Receivables. 

  

	 	(f)	We express no opinion as to the creation of any security interest in any property (other than accounts and general intangibles for money due or to become due) which prohibits the
assignment thereof or the creation of a security interest therein without, in each case, the consent of the account debtor thereof. 

  

 To the Persons Listed 
 on Schedule I hereto 
 [  ], 2000 
  

 We are members of the bar of the State of New York and we express no opinion herein as to any matters governed by
laws other than the laws of the State of New York. We have with your permission assumed the correctness of the conclusions expressed in the legal opinions of Richards, Layton & Finger (as to certain Delaware corporate law matters relating to
Memec, Insight and Impact) and Farella Braun & Martel (as to certain California corporate law matters relating to Unique), each addressed to you and dated the date hereof without independently investigating or verifying the matters covered
thereby. 
  
 This opinion is rendered solely to you and is solely for your benefit
in connection with the transactions contemplated in the Documents. It may not be relied upon by you for any purpose, or quoted to or relied upon by any other person, firm or corporation for any purpose, and, without our prior written consent, may
not be transmitted or disclosed to any other person save to Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc., and Moody’s Investors Service, Inc., who may rely on this opinion as if it were addressed to
them, and their respective legal advisers. 
  
 Very truly yours, 
  

 Schedule I 
  

Addressees 
  
 Insight Electronics LLC 
 [Address] 
  
 Impact Semiconductor Technologies LLC 
 [Address] 
  
 Unique Semiconductor Technologies Inc. 
 [Address] 
  
 Memec, LLC 
 [Address] 
  
 The Chase Manhattan Bank, 
 as Administrative Agent 
 [Address] 
  

Park Avenue Receivables Corporation, 
 as CP Conduit Lender 
 [Address] 
  
 Sheffield Receivables Corporation, 
 as CP Conduit Lender 
 [Address] 
  

 Schedule 3.1(e)(iii) 
  

 Form of Delaware Counsel Opinion 
  
                     , 2000 
  
 To Each of the Persons Listed 
     on Schedule A Attached
Hereto 
  

	 	Re:	Memec, LLC; Impact Semiconductor 

	 	    	Technologies LLC; Insight Electronics, LLC; 

	 	    	and Triangle Receivables Funding LLC 

  
 Ladies and Gentlemen: 
  
 We have acted as special Delaware counsel for Memec, LLC, a Delaware limited liability company (“Memec”), Impact Semiconductor Technologies LLC,
a Delaware limited liability company (“Impact”), Insight Electronics, LLC, a Delaware limited liability company (“Insight”), and Triangle Receivables Funding LLC, a Delaware limited liability company (“Triangle”), in
connection with the matters set forth herein. At your request, this opinion is being furnished to you. 
  
 For purposes of giving the opinions hereinafter set forth, our examination of documents has been limited to the examination of executed or conformed
counterparts, or copies otherwise proved to our satisfaction, of the following: 
  
 (a) The Certificate of Formation of Memec, dated as of September 21, 1998, as filed in the office of the Secretary of State of the State of Delaware (the “Secretary of State”) on September 21, 1998, as
amended by the Certificate of Amendment of the Certificate of Formation of Memec, dated January 27, 2000 (the “Memec Amendment”), as filed in the office of the Secretary of State on January 31, 2000, as corrected by the Certificate of
Correction of the Memec Amendment, dated as of August     , 2000, as filed in the office of the Secretary of State on August     , 2000 (as so amended and corrected, the “Memec
Certificate”) ; 
  
 (b) The Limited Liability Company
Agreement of Memec, dated as of November 1, 1998 (the “Original Memec Agreement”), by VEBA Corporation, as the initial member; 
  
 (c) [The Assignment and Assumption of Limited Liability Company Interest of Memec, entered into between VEBA Corporation and [
                 ] (the “Memec Shareholder”), dated as of August     , 2000 (the “Assignment”);] 
  

 To Each of the Persons Listed 
 on Schedule A Attached Hereto 
 __, 2000 
 Page 2

  

 (d) The Amendment to the Original Memec Agreement, dated as of August
    , 2000, entered into by the Memec Shareholder (the “Amendment”) (the Original Memec Agreement, as amended by the Assignment and the Amendment, is hereinafter referred to as the “Memec Agreement”);

  
 (e) The Unanimous Consent of the Board of Directors of Memec,
dated as of August     , 2000, acknowledged and agreed to by the Memec Shareholder (the “Memec Consent”); 
  
 (f) A Certificate of an officer of Memec, dated as of August     , 2000, as to certain matters; 
  
 (g) The Certificate of Formation of Impact, dated September 23, 1999 (the
“Impact Certificate”), as filed in the office of the Secretary of State on September 23, 1999; 
  
 (h) The Operating Agreement of Impact, dated as of September 23, 1999 (the “Impact Agreement”), entered into by Memec, as the initial member
(the “Impact Shareholder”); 
  
 (i) The Unanimous
Written Consent of the Managers of Impact, dated as of August     , 2000, acknowledged and agreed to by the Impact Shareholder (the “Impact Consent”); 
  
 (j) A Certificate of an Officer of Impact, dated as of August     , 2000, as to certain matters;

  
 (k) The Certificate of Formation of Insight, dated September
21, 1998, as filed in the office of the Secretary of State on September 21, 1998, as amended by the Certificate of Amendment of the Certificate of Formation of Insight, dated December 23, 1999 (the “Insight Amendment”), as filed in the
Office of the Secretary of State on January 26, 2000, as corrected by the Certificate of Correction of the Insight Amendment, dated as of August     , 2000, as filed in the office of the Secretary of State on August
    , 2000 (as so amended and corrected, the “Insight Certificate”); 
  
 (l) The Limited Liability Company Agreement of Insight, dated as of November 1, 1998 (the “Original Insight Agreement”), entered into by Memec,
as the initial member (the “Insight Shareholder”), as amended by the Amendment to the Original Insight Agreement, dated as of August     , 2000, entered into by the Insight Shareholder (as so amended, the
“Insight Agreement”); 
  

 To Each of the Persons Listed 
 on Schedule A Attached Hereto 
 __, 2000 
 Page 3

  

 (m) The Unanimous Written Consent of the Board of Directors of Insight, dated as of August
    , 2000, acknowledged and agreed by to the Insight Shareholder (the “Insight Consent”); 
  
 (n) A Certificate of an officer of Insight, dated as of August     , 2000, as to certain matters; 
  
 (o) The Certificate of Formation of Triangle, dated as of July 19, 2000 (the
“Triangle Certificate”), as filed in the office of the Secretary of State on July 19, 2000; 
  
 (p) The Limited Liability Company Agreement of Triangle, dated as of             
    , 2000 and effective as of                  , 2000 (the “Triangle Agreement”), entered into by Gregory Lavelle, as
the sole equity member (the “Triangle Shareholder”), and Donald J. Puglisi, as the Special Member (as defined in the Triangle Agreement); 
  
 (q) The Unanimous Written Consent of the Board of Directors of Triangle, dated as of
                 , 2000, acknowledged and agreed to the Triangle Shareholder (the “Triangle Consent”); 
  
 (r) A Certificate of an Officer of Triangle, dated August
    , 2000, as to certain matters; 
  
 (s) The U.S. Receivables Purchase Agreement, dated as of August     , 2000 (the “Purchase Agreement), among Impact, Insight and Unique Semiconductor Technologies Inc., as originators, and Memec, as purchaser;

  
 (t) The Contribution Agreement, dated as of August
    , 2000 (the “Contribution Agreement”), between Memec, as contributor, and Triangle; 
  
 (u) The UK Receivables Purchase Agreement, dated as of August     , 2000 (the “U.K. Purchase Agreement”), among Memec
UK Ltd., as originator and sub-collection agent, Memec, as purchaser and collection agent, Barclays Bank plc, as Sheffield funding agent, and The Chase Manhattan Bank, as PARCO funding agent and administrative agent; 
  
 (v) A Certificate of Good Standing for Memec, dated August
    , 2000, obtained from the Secretary of State; 
  
 (w) A Certificate of Good Standing for Impact, dated August     , 2000, obtained from the Secretary of State; 
  

 To Each of the Persons Listed 
 on Schedule A Attached Hereto 
 __, 2000 
 Page 4

  

 (x) A Certificate of Good Standing for Insight, dated August     , 2000,
obtained from the Secretary of State; and 
  
 (y) A Certificate of
Good Standing for Triangle, dated August     , 2000, obtained from the Secretary of State. 
  
 Initially capitalized terms used herein and not otherwise defined are used as defined in the Memec Agreement. 
  
 For the purposes of this opinion, we have not reviewed any documents other
than the documents listed in paragraphs (a) through (y) above. In particular, we have not reviewed any document (other than the documents listed in paragraphs (a) through (y) above) that is referred to in or incorporated by reference into any
document reviewed by us. We have assumed that there exists no provision in any document not listed above that is inconsistent with the opinions stated herein. We have conducted no independent factual investigation of our own but rather have relied
solely upon the foregoing documents, the statements and information set forth therein and the additional matters recited or assumed herein, all of which we have assumed to be true, complete and accurate in all material respects. 
  
 With respect to all documents examined by us, we have assumed that (i) all
signatures on documents examined by us are genuine, (ii) all documents submitted to us as originals are authentic, and (iii) all documents submitted to us as copies conform with the original copies of those documents. 
  
 For purposes of this opinion, we have assumed (i) that the Memec Agreement
constitutes the entire agreement among the parties thereto with respect to the subject matter thereof, including with respect to the admission of members to, and the creation, operation and termination of, Memec, and that the Memec Certificate and
the Memec Agreement are in full force and effect and no amendment of the Memec Agreement or the Memec Certificate is pending or has been proposed, (ii) that the Impact Agreement constitutes the entire limited liability company agreement among the
parties thereto with respect to the subject matter thereof, including with respect to the admission of members to, and the creation, operation and termination of, Impact, and that the Impact Certificate and the Impact Agreement are in full force and
effect and no amendment of the Impact Certificate or the Impact Agreement is pending or has been proposed, (iii) that the Insight Agreement constitutes the entire agreement among the parties thereto with respect to the subject matter thereof,
including with respect to the admission of members to, and the creation, operation and termination of, Insight, and that the Insight Certificate and the Insight Agreement are in full force and effect and no amendment of the Insight Certificate

  

 To Each of the Persons Listed 
 on Schedule A Attached Hereto 
 __, 2000 
 Page 5

  

 
or the Insight Agreement is pending or has been proposed (iv) that the Triangle Agreement constitutes the entire agreement among the parties thereto with
respect to the subject matter thereof, including with respect to the admission of members to, and the creation, operation and termination of, Triangle, and that the Triangle Certificate and the Triangle Agreement are in full force and effect and no
amendment of the Triangle Certificate or the Triangle Agreement is pending or has been proposed, (v) except to the extent provided in paragraphs 1 through 4 below, the due organization or due formation, as the case may be, and valid existence in
good standing of each party to the documents examined by us under the laws of the jurisdiction governing its organization or formation, and the capacity of natural persons who are signatories to the documents examined by us, (vi) except to the
extent provided in paragraphs 5 through 8 below, that each of the parties to the documents examined by us has the power and authority to execute and deliver, and to perform its obligations under, such documents, (vii) except to the extent provided
in paragraphs 9 through 12 below, the due authorization, execution and delivery by all parties thereto of all documents examined by us, and (viii) that there are no proceedings pending or contemplated for the merger, consolidation, liquidation,
dissolution or termination of Memec, Impact, Insight or Triangle. We have not participated in the preparation of any offering material relating to Memec, Impact, Insight or Triangle and assume no responsibility for the contents of any such material.

  
 This opinion is limited to the laws of the State of Delaware
(excluding the securities laws and blue sky laws of the State of Delaware), and we have not considered and express no opinion on the laws of any other jurisdiction, including United States federal laws and rules and regulations relating thereto. Our
opinions are rendered only with respect to Delaware laws and rules, regulations and orders thereunder which are currently in effect. In rendering the opinions set forth herein, we express no opinion concerning (i) the creation, attachment,
perfection or priority of any security interest, lien or other encumbrance, or (ii) the nature or validity of title to any property. 
  
 Based upon the foregoing, and upon our examination of such questions of law and statutes of the State of Delaware as we have considered necessary or
appropriate, and subject to the assumptions, qualifications, limitations and exceptions set forth herein, we are of the opinion that: 
  
 1. Memec has been duly formed and is validly existing in good standing as a limited liability company under the Delaware Limited Liability Company Act, 6
Del. C. § 18-101 et seq. (the “Act”). 
  
 2. Impact has been duly formed and is validly existing in good standing as a limited liability company under the Act. 
  

 To Each of the Persons Listed 
 on Schedule A Attached Hereto 
 __, 2000 
 Page 6

  

 3. Insight has been duly formed and is validly existing in good standing as a limited liability
company under the Act . 
  
 4. Triangle has been duly formed and
is validly existing in good standing as a limited liability company under the Act . 
  
 5. Under the Act, the Memec Agreement and the Memec Consent, Memec has the requisite limited liability company power and authority to execute and deliver, and to perform its obligations under, the Purchase Agreement,
the Contribution Agreement and the U.K. Purchase Agreement. 
  
 6.
Under the Act, the Impact Agreement and the Impact Consent, Impact has the requisite limited liability company power and authority to execute and deliver, and to perform its obligations under, the Purchase Agreement. 
  
 7. Under the Act, the Insight Agreement and the Insight Consent, Insight has
the requisite limited liability company power and authority to execute and deliver, and to perform its obligations under, the Purchase Agreement. 
  
 8. Under the Act, the Triangle Agreement and the Triangle Consent, Triangle has the requisite limited liability company power and authority to execute and
deliver, and to perform its obligations under, the Contribution Agreement. 
  
 9. Under the Act, the Memec Agreement and the Memec Consent, the execution and delivery by Memec of the Purchase Agreement, the Contribution Agreement and the U.K. Purchase Agreement, and the performance by Memec of
its obligations thereunder, have been duly authorized by the requisite limited liability company action on the part of Memec. Under the Act, the Memec Agreement and the Memec Consent, the Purchase Agreement, the Contribution Agreement and the U.K.
Purchase Agreement have been duly executed and delivered by Memec. 
  
 10. Under the Act, the Impact Agreement and the Impact Consent, the execution and delivery by Impact of the Purchase Agreement, and the performance by Impact of its obligations thereunder, have been duly authorized by the requisite limited
liability company action on the part of Impact. Under the Act, the Impact Agreement and the Impact Consent, the Purchase Agreement has been duly executed and delivered by Impact. 
  
 11. Under the Act, the Insight Agreement and the Insight Consent, the execution and delivery by Insight of the Purchase
Agreement, and the performance by Insight of its obligations thereunder, have been duly authorized by the requisite limited 

  

 To Each of the Persons Listed 
 on Schedule A Attached Hereto 
 __, 2000 
 Page 7

  

 
liability company action on the part of Insight. Under the Act, the Insight Agreement and the Insight Consent, the Purchase Agreement has been duly executed
and delivered by Insight. 
  
 12. Under the Act, the Triangle
Agreement and the Triangle Consent, the execution and delivery by Triangle of the Contribution Agreement, and the performance by Triangle of its obligations thereunder, have been duly authorized by the requisite limited liability company action on
the part of Triangle. Under the Act, the Triangle Agreement and the Triangle Consent, the Contribution Agreement has been duly executed and delivered by Triangle. 
  
 13. The execution, delivery and performance by Memec of the Purchase Agreement, the Contribution Agreement and the U.K.
Purchase Agreement do not violate (i) any Delaware law, rule or regulation, or (ii) the Memec Agreement or the Memec Certificate. 
  
 14. The execution, delivery and performance by Impact of the Purchase Agreement do not violate (i) any Delaware law, rule or regulation, or (ii) the
Impact Agreement or the Impact Certificate. 
  
 15. The execution,
delivery and performance by Insight of the Purchase Agreement do not violate (i) any Delaware law, rule or regulation, or (ii) the Insight Agreement or the Insight Certificate. 
  
 16. The execution, delivery and performance by Triangle of the Contribution Agreement do not violate (i) any Delaware law,
rule or regulation, or (ii) the Triangle Agreement or the Triangle Certificate. 
  
 We understand that you will rely as to matters of Delaware law upon this opinion in connection with the transactions contemplated by the Purchase Agreement, the Contribution Agreement and the U.K. Purchase Agreement.
We also understand that Clifford Chance Rogers & Wells LLP (“Clifford Chance”) will rely as to matters of Delaware law upon this opinion in connection with an opinion to be rendered by it in connection with the transactions
contemplated by the Purchase Agreement, the Contribution Agreement and the U.K. Purchase Agreement. In connection with the foregoing, we hereby consent to your and Clifford Chance’s relying as to matters of Delaware law upon this opinion.
Except as stated above, without our prior written consent, this opinion may not be furnished or quoted to, or relied upon by, any other Person for any purpose. 
  

 To Each of the Persons Listed 
 on Schedule A Attached Hereto 
 __, 2000 
 Page 8

  

 Very truly yours, 
  
 JGL/GWL/TSM 
  

 SCHEDULE A 
  

Park Avenue Receivables Corporation 
  
 Sheffield Receivables Corporation 
  
 Barclays Bank PLC 
  
 The Chase Manhattan Bank 
  
 Memec, LLC

  
 Impact Semiconductor Technologies LLC 
  
 Insight Electronics, LLC 
  
 Triangle Receivables Funding LLC 
  

 Schedule 3.1(f) 
  

 Form of Bankruptcy Opinion 
  
 [ · ], 2000 
  
 To the Persons listed 
 on Schedule I hereto 
  
 Ladies and Gentlemen:

  
 We have acted as special New York counsel to Memec, LLC, a Delaware limited
liability company (“Memec”), Insight Electronics, LLC, a Delaware limited liability company (“Insight”), Impact Semiconductor Technologies LLC, a Delaware limited liability company (“Impact”),
Unique Semiconductor Technologies Inc., a California corporation (“Unique”) and Triangle Receivables Funding LLC, a newly formed special purpose Delaware limited liability company (the “Company”), in connection with (a)
the sale by Insight, Impact and Unique (together, the “Originators”) of certain trade receivables, as described below, to Memec pursuant to the U.S. Receivables Purchase Agreement dated [ · ], 2000, by and among Memec and the Originators (the “Receivables Purchase Agreement”), (b) the contribution by Memec of certain trade receivables, as described
below, to the Company, pursuant to the Contribution Agreement dated as of [ · ], 2000 (the “Contribution Agreement”), between
Memec and the Company, and (c) the grant of a security interest by the Company in its right, title and interest in, to and under the Contribution Agreement and certain trade receivables, as described below, to The Chase Manhattan Bank, solely in its
capacity as Administrative Agent (in such capacity, the “Administrative Agent”) under the Asset Backed Loan Agreement dated as of [ · ], 2000 (the “Loan Agreement”), among the Company, Park Avenue Receivables Corporation and Sheffield Receivables Corporation, as CP Conduit Lenders, Certain PARCO APA Banks, Barclays Bank plc, as Sheffield Funding Agent
and the Administrative Agent, as Administrative Agent, PARCO Funding Agent and Collection Agent. Capitalized terms not otherwise defined herein have the meanings assigned to such terms in the Receivables Purchase Agreement or, if not defined
therein, in the Contribution Agreement. 
  
 Pursuant to the Receivables Purchase
Agreement, the Originators may sell to Memec from time to time, certain accounts receivable generated by the Originators in their ordinary course of business, in each case as specified in the applicable Originator Daily Report (the “Originator
Daily Report”) provided to, and to the extent accepted by, Memec pursuant to Section 2.01(a)(ii) of the Receivables Purchase Agreement (collectively, the “Receivables”). The relevant transaction contemplated by the
Receivables Purchase Agreement (the “Transaction”) is more fully described under Section I (Statement of Facts and Assumptions) below. 
  

			
	 To the Persons listed on Schedule I hereto
 [*], 2000
	  	Page 2

  

 You have requested our opinion as to whether in the event an Originator becomes a debtor in a voluntary or
involuntary bankruptcy case under Title 11 of the United States Code, as amended (the “Bankruptcy Code”), a bankruptcy court having jurisdiction over such case would hold that the sale of the Receivables by such Originator to Memec
in the manner set forth in the Receivables Purchase Agreement would constitute a true sale of such Receivables, rather than a borrowing by such Originator secured by such Receivables, and therefore whether the bankruptcy court would not hold that
such Receivables would be the property of such Originator’s bankruptcy estate under Section 541 of the Bankruptcy Code. 
  
 Our opinion is limited to the specific issues set forth in the previous paragraph and is further limited in all respects to the facts assumed. 
  

	I.	STATEMENT OF FACTS AND ASSUMPTIONS 

  
 In describing the Transaction and rendering the opinions expressed below, we have examined originals or copies certified or otherwise authenticated to our satisfaction of
the agreements and other documents described in Schedule II hereto. As to all factual matters material to the opinions expressed below, we have, with your permission and without any independent investigation, relied exclusively on, and assumed the
truth and accuracy of, those facts which have been provided to us by the Originators and Memec, certain of which facts are contained in the Officers’ Certificate attached hereto as Exhibit A. 
  

	A.	Assumptions 

  
 We have assumed (i) that all facts and circumstances described herein will continue to exist, without any change in such facts and circumstances that might be material to such opinions, (ii) that the representations
and warranties of Memec and the Originators contained in the Receivables Purchase Agreement and the other Transaction Documents to which each is a party are accurate and correct and that at all relevant times Memec and the Originators will comply
with its obligations as set forth in the Receivables Purchase Agreement and the other Transaction Documents to which each is a party, (iii) the due authorization, execution and delivery by all parties thereto of all documents examined by us,
including the Receivables Purchase Agreement and the other Transaction Documents, (iv) that each party has the power and authority to enter into the Receivables Purchase Agreement and each of the other Transaction Documents to which it is a party
and perform all of its obligations thereunder, (v) that each of the Receivables Purchase Agreement and the other Transaction Documents is a legal, valid and binding obligation of each of the parties thereto, enforceable in accordance with its
respective terms, (vi) that each party to the Receivables Purchase Agreement and the other Transaction Documents is duly organized, validly existing and in good standing under the laws of its jurisdiction of organization, (vii) that each of Memec
and the Originators will act in accordance with applicable laws and in accordance with its charter documents, (viii) that none of Memec or the Originators is entering into the Transaction with the actual or 

  

			
	 To the Persons listed on Schedule I hereto
 [*], 2000
	  	Page 3

  

 
constructive intent of hindering, delaying or defrauding creditors and (ix) that the purchase price paid by Memec in return for the sale by the Originators
of the Receivables will provide fair consideration and reasonably equivalent value to the Originators. We refer you to our legal opinion (as to certain New York law matters relating to the Originators and Memec), to the legal opinion of Farella
Braun & Martel (as to certain California law matters relating to the Transaction), and to the legal opinions of Richards, Layton & Finger (as to certain Delaware corporate law matters relating to Memec, Insight and Impact). 
  

	B.	Facts 

  
 We understand, based on the representations and assumptions described above and our review of the Transaction Documents, that the relevant facts regarding the Transaction are as follows: 
  

	1.	The Transaction 

  
 Memec is a limited liability company organized under the laws of the State of Delaware. Both Impact and Insight are limited liability companies organized under the laws of the state of Delaware. Unique is a
corporation organized under the laws of the state of California. 
  
 This
Transaction comprises a portion of a program (the “Program”), which has been established as part of a sale of certain trade receivables by certain Affiliates of Memec including the Originators and another Affiliate of Memec based in
the United Kingdom (the “U.K. Originator”). 
  
 Each Originator
will sell all of its right, title and interest in, to and under certain accounts receivable generated by such Originator in its ordinary course of business and referred to in the applicable Originator Daily Report provided to the Company pursuant to
the U.K. Receivables Purchase Agreement (with respect to the U.K. Originator) and the U.S. Receivables Purchase Agreement (with respect to the Originators). 
  
 The Receivables represent amounts due from various customers (the “Obligors”) in respect of goods sold or services rendered by the Originators, and have
been originated in the ordinary course of business by such Originator. 
  
 Pursuant to the Receivables Purchase Agreement, the Originators may from time to time, on and after the Effective Date, by delivering a Daily Report to Memec, sell certain Receivables to Memec. For administrative convenience, under the
Receivables Purchase Agreement, the Originators have the option (without obligation) of also selling to Memec Designated Ineligible Receivables (which are Receivables that do not qualify as Eligible Receivables under the Receivables Purchase
Agreement). We understand that the amount of Designated Ineligible Receivables will be immaterial to the aggregate amount of Receivables sold by the Originators to Memec. The Originator will identify and describe in the Originator Daily Report those
Receivables that are Designated Ineligible Receivables. 
  

			
	 To the Persons listed on Schedule I hereto
 [*], 2000
	  	Page 4

  

 [Memec is admitted as the sole member of Insight and Impact and is the sole shareholder of Unique. Memec’s
interest in each of Impact, Insight and Unique is owned free and clear of all Liens; provided that Memec may pledge any portion or all of the foregoing equity interests to the Lenders under the Credit Agreement, dated [*], 2000, by and among
[parties to the Credit Agreement]. 
  
 All Receivables will be owned by the
Originators free and clear of any Liens (other than Permitted Liens) immediately prior to the time of sale. Upon delivery of an Originator Daily Report by an Originator to Memec and acceptance thereof by Memec pursuant to the Receivables Purchase
Agreement, the Receivables will be sold, transferred, assigned and conveyed to Memec, so that Memec acquires all of the Originator’s right, title and interest, in, to and under such Receivables. Acceptance by Memec of the sale, assignment,
transfer and conveyance of the Receivables will be in good faith and without knowledge of any Lien (other than Permitted Liens) against, interest in, or defense to payment of, such Receivables. The Receivables Purchase Agreement reflects bona
fide transactions which have been negotiated on an arm’s-length basis and which will be undertaken in good faith for legitimate business purposes. 
  
 The sale of the Receivables (including the Designated Ineligible Receivables) will be without recourse to the Originators, who will not guarantee the performance or
collectability of such Receivables. There is no provision in the Receivables Purchase Agreement which permits reconveyance of the Receivables contributed thereunder by the Originators to Memec or contemplates the retention by the Originators of any
interest whatsoever in the Receivables except that the Originators may be obligated to accept a reconveyance of Receivables (a) for a material breach of certain representations and warranties, relating to the eligibility of such Receivables which
includes the absence of Liens (other than Permitted Liens) with respect to such Receivables and (b) to the extent Memec exercises its “ clean-up” call option under the Contribution Agreement. 
  
 The Originators will not, and will not attempt or purport to, extend, rescind, cancel, amend
or otherwise modify, the terms of any Receivables, or make any Dilution Adjustment, unless (a) (i) such cancellation, termination, amendment, modification, or waiver is made in accordance with the servicing standards set forth in Section 6 of the
Loan Agreement (and would have been made in the ordinary course of business), (ii) such cancellation, termination, amendment, modification or waiver arose as a result of a request form an Obligor, (iii) any such amendment, modification or waiver
does not cause such Receivable to cease to be an Eligible Receivable and (iv) such cancellation, termination, amendment, modification or waiver would not have a material and prejudicial effect on the collectability of the relevant Receivable or (b)
such Dilution Agreement is the result of a pre-existing contractual obligation between the Originator and the Obligor with respect to such Receivable; provided further that in the event the Contributor cancels an invoice related to a
Receivable, such Originator must make the Dilution Adjustment Payment to Memec in accordance with Section 2.5 of the Receivables Purchase Agreement. 
  

			
	 To the Persons listed on Schedule I hereto
 [*], 2000
	  	Page 5

  

 Invoices with respect to certain Receivables, which shall be designated on the applicable Daily Report (the
“Atlas Receivables”), have been and during the 90 days after the Effective Date (the “Atlas Transition Period”) may continue to be, sent to Obligors on behalf of the Originators by Atlas Services LLC, which prior to
the Effective Date, was an affiliate of the Originators (“Atlas”). The invoices sent by Atlas (the “Atlas Invoices”), in addition to setting forth amounts owed on the Atlas Receivables, may also include amounts owed
to other affiliates of the Originators (the “Other Receivables”). Payments with respect to the Atlas Invoices, which may include payments with respect to both the Atlas Receivables and the Other Receivables, are currently being made
by Obligors to lock-box accounts maintained by Atlas (the “Atlas Lock-Box Accounts”). During the Atlas Transition Period, Atlas will forward[, within two (2) Business Days,] any payments received by it with respect to the Atlas
Receivables to the applicable Lock-Box Accounts established pursuant to the Loan Agreement. 
  
 The Receivables Purchase Agreement stipulates that the Originators are required to take all actions needed to convey, sell, assign and transfer the Receivables. Other than with respect to the Atlas Receivables during
the Atlas Transition Period, Obligors will make payments in respect of Receivables to the applicable Lock-Box Account. During the Atlas Transition Period, any amounts received by Atlas with respect to the Atlas Receivables will be forwarded [within
two (2) Business Days] to the applicable Lock-Box Account. The Lock-Box Accounts will be accounts of the Company, such that none of the Originators or Memec shall have any right, title or interest in and to the Lock-Box Accounts and the moneys
deposited from time to time therein. 
  
 The Receivables Purchase Agreement
requires that the Originators maintain a record-keeping system that will clearly and unambiguously indicate that the Receivables have been sold, assigned, conveyed and transferred to Memec, and thereupon (i) Memec has contributed, assigned, conveyed
and transferred the Receivables to the Company and (ii) a security interest has been granted by the Company to the Administrative Agent pursuant to the Loan Agreement. The sale of the Receivables will be treated by the Originators and Memec as a
conveyance, and not a borrowing by the Contributor secured by such Receivables, for all tax, accounting and regulatory purposes. The Receivables will not be carried as assets on the books, records or financial statements of the Originators;
provided, however, that where consolidated financial statements of Memec are prepared, the ultimate conveyance of the Receivables to the Company will be indicated through a footnote to such financial statements, which will state that as a
result of the sale of Receivables to Memec and subsequent contribution of Receivables to the Company, neither the creditors of the Originators nor Memec should not rely on such Receivables as a source of payment for obligations of the Originators or
Memec. The Receivables Purchase Agreement does not contain restrictive financial covenants relating to the operation of the Originator’s businesses as would customarily be seen in loan documentation. The right of an Originator to sell
Receivables will terminate after expiration of any applicable grace periods upon the occurrence and continuance of certain designated Originator Termination Events with respect to such Originators. 
  

			
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 As contemplated by the Contribution Agreement, the Company will grant a first priority perfected security interest
under the Loan Agreement in favor of the Administrative Agent in all of its right, title and interest in, to and under the Contribution Agreement and the Receivables. 
  
 Pursuant to the Loan Agreement, the Company will initially appoint the Administrative Agent, and upon the Effective Date, the Administrative
Agent will appoint Memec, as the Collection Agent (the “Collection Agent”) of the Receivables. The Collection Agent shall appoint each Originator as a Sub-Collection Agent (in such capacity, each, a “Sub-Collection
Agent”) for the Receivables generated by such Originator pursuant to the Receivables Purchase Agreement. In the event that a Sub-Collection Agent shall resign or be removed from its position, the Collection Agent or an alternate
Sub-Collection Agent shall service the Receivables previously serviced by such Sub-Collection Agent. 
  
 So long as no Collection Agent Default has occurred and is continuing, the Collection Agent may delegate to one or more Persons the servicing, collection, enforcement and administrative duties of the Collection Agent
set forth under the Loan Agreement with respect to the Receivables; provided, however, that with respect to any such Person that is not an Affiliate of Memec, the Collection Agent shall give prior written notice to the Company and each
Funding Agent of any such delegation. Prior to any such delegation becoming effective, the consent of the Company and each Funding Agent to such delegation shall have been obtained. No delegation of duties by the Collection Agent shall relieve the
Collection Agent of its liability and responsibility with respect to its duties under the Loan Agreement. 
  
 In the event that any payments in respect of any Receivable are made directly to the Collection Agent, the Collection Agent will immediately deliver or deposit such amount to the appropriate Lock-Box Account, and,
prior to delivery or depositing such amount, the Collection Agent will hold such payments in trust as Administrative Agent for the Company and the Administrative Agent. Other than in accordance with instructions by the Administrative Agent, the
Collection Agent will have no right to withdraw any funds on deposit in any Lock-Box Account or the Collection Account. To the extent that the Collection Agent identifies any funds received in the Lock-Box Account or the Collection Account as funds
that do not constitute Collections on the Receivables, the Collection Agent shall remit such funds to the applicable Originator. 
  
 At the Collection Agent’s sole cost and expense and as agent for the Company, it will collect (or cause to be collected), consistent with its past practices (or
those of the applicable Sub-Collection Agent) and in accordance with the Policies, as and when the same becomes due, the amount owing on each Receivable. Pursuant to the Loan Agreement, the Collection Agent will agree that it will not make any
material change in its administrative, servicing and collection systems that deviates from the Policies, except as otherwise permitted under the Loan Agreement, and after giving written notice to the Administrative Agent of any such change. In the
event of default under any Receivable, the Collection Agent has the power and authority on behalf of the Company to take such action in 

  

			
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respect of the Receivable as the Collection Agent shall deem advisable. In the enforcement or collection of any Receivable, the Collection Agent is entitled,
but not required, to sue in its own name or to sue in the name of the Company provided that, in the latter case, the Company consents in writing (such consent not to be unreasonably withheld). 
  
 The Loan Agreement provides that following the occurrence of certain events, the
Administrative Agent, as assignee of the Company, may terminate the then-current Collection Agent and appoint a replacement Collection Agent with respect to the Receivables. 
  
 The Loan Agreement provides for the payment to the Collection Agent of a monthly servicing fee (the “Monthly Servicing
Fee”) that has been calculated on an arm’s-length basis and will reflect the fair market value for the services (including collecting and enforcing the Company’s rights with respect to the Receivables) to be provided by the
Collection Agent; provided, however, so long as the Collection Agent is an Affiliate of the Company, payment of the Monthly Servicing Fee will be subordinated to the payment of interest, principal and certain other amounts due under the Loan
Agreement. The servicing fee shall be payable to the Collection Agent solely pursuant to the terms of, and to the extent amounts are available for payment under, Article III of the Loan Agreement. To the extent that any of the Originators act as a
Sub-Collection Agent, they will receive a fee from the Collection Agent that will reflect the fair market value of the services provided by such Sub-Collection Agent. 
  

	2.	Disclosure of the Transaction  

  
 For administrative and cost reasons, the Obligors with respect to the Receivables will not be informed of the Transaction. We note that existing Obligors currently make
payments to certain designated accounts of the Originators, or with respect to the Atlas Receivables, to Atlas. Other than with respect to the Atlas Receivables, Obligors will continue to make payments on the Receivables to the accounts designated
by the Originator, but such accounts will be transferred to the Company and thus qualify as Lock-Box Accounts under the Loan Agreement. With respect to the Atlas Receivables, during the Atlas Transition Period, Obligors may make payments to the
Atlas Lock-Box Account. Atlas will hold any amounts so received in trust for the benefit of the applicable Originator and shall within [one (1)] Business Day forward such amounts to a Lock-Box Account. All transfers from the Lock-Box Accounts to the
other Transaction accounts shall be made by the Collection Agent at the direction of the Administrative Agent. On and after the Termination Date, the Company (and its assignees) may itself, or may request that such Originator (at such
Originator’s expense), notify the respective Obligors of the Company’s ownership of and title to the Receivables and direct that payment of all amounts due or to become due under the Receivables be made directly to an account designated by
the Administrative Agent. 
  
 Appropriate UCC-1 financing statements will be
properly filed in the appropriate filing offices as required by Section 9-103(3)(a) of the applicable UCC in order to perfect the sale of the Receivables 

  

			
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to Memec on or before the Effective Date. All financial statements prepared by Originators will treat the Transaction as a sale of the Receivables, with the
effect that the Receivables will not be disclosed as an asset on any such financial statements of the Originators. Where consolidated financial statements of Memec are prepared, the ultimate conveyance of the Receivables to the Company will be
indicated through a footnote to such financial statements, which will state that as a result of the sale to Memec and subsequent contribution to the Company, neither the creditors of Memec nor the Originators should rely on the Receivables as a
source of payment for obligations of the Originators or Memec. The Contributor will disclose the effects of the Transaction in accordance with GAAP. 
  

	II.	DISCUSSION 

  

	A.	True Sale Discussion 

  

	1.	Introduction 

  
 Section 541 of the Bankruptcy Code provides that property of a debtor’s estate includes “all legal or equitable interests of the debtor in property as of the commencement of the case.” 11 U.S.C.
§541(a)(1). If an Originator were to declare bankruptcy, such Originator as a debtor-in-possession, a trustee in bankruptcy or a creditor of Memec might argue that the Receivables (which, for the avoidance of doubt, does not include the
Excluded Receivables, which are not being purchased by Memec from the Originator have not been sold and are, therefore, part of such Originator’s bankruptcy estate. Courts have recharacterized purported sales of assets as pledges in a variety
of circumstances. See, e.g., In re Navigation Technology Corp., 880 F.2d 1491, 1493 (1st Cir. 1989); Major’s Furniture Mart v. Castle Credit Corp., 602 F.2d 538, 545-46 (3d Cir. 1979); Levin v. City Trust Co. (In re Joseph Kanner Hat Co.,
Inc.), 482 F.2d 937, 940 (2d Cir. 1973). While Section 541 of the Bankruptcy Code provides that property in which the debtor has an interest is part of the debtor’s bankruptcy estate, the substantive determination of the property rights in
particular assets is generally governed, in the absence of controlling federal law, by state law. Butner v. U.S., 440 U.S. 48, 55 (1979). See also Barnhill v. Johnson, 503 U.S. 393, 398 (1992) (stating that “property” and “interests
in property” are “creatures of state law”). 
  
 We note that there
is no reported controlling judicial precedent, which analyzes the totality of factors present in the Transaction. We therefore examined decisions from a range of jurisdictions in which certain facts and circumstances present in this Transaction were
discussed and in which the distinction between a sale and a secured loan was analyzed more generally. Furthermore, existing reported judicial authority is not conclusive as to the relative weight to be accorded to the various factors present in this
Transaction, although we have emphasized in our analysis those factors which courts have noted as particularly important in determining whether a Transaction is a sale or a secured loan. We also note that certain authorities and decisions we have
examined are arguably inconsistent with the conclusions expressed in our opinion. These authorities and decisions are, however, distinguishable in the context of this Transaction. 
  

			
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	2.	Factors Considered in a True Sale Analysis 

  
 Courts have considered a variety of factors in determining whether an assignment creates a security interest or an absolute sale and have examined “all the facts and
circumstances surrounding the transactions at issue.” Bear v. Coben (In re Golden Plan of California, Inc.), 829 F.2d 705, 709 (9th Cir. 1986). Factors which courts have examined in making this determination include: the transfer of the risk of
loss, the transfer of the opportunity for gain, the form of the transaction, whether the transfer operates to discharge an underlying debt, the intent of the parties to the transaction, whether the transferor continues to service the transferred
assets and whether the transfer is recorded or notified to third parties. 
  
 a.
Recourse/Risk of Loss. Of these various factors, the transfer of the risk of loss is one of the most important. Various courts have found that full recourse to the assignor is inconsistent with shifting the risk of loss to the assignee. For
example, in Major’s Furniture Mart, the court found that full recourse to the assignor for defaults on the assigned accounts meant that the assignee did not assume the risks of ownership of such accounts. Major’s Furniture Mart, 602
F.2d at 545. See also, In re Evergreen Valley Resort, Inc., 23 B.R. 659, 661 (Bankr. D. Me. 1982), citing Major’s Furniture Mart and In re Bowen, 5 U.C.C. Rep. Serv. 261 (Bankr. D. Ore. 1968) for the proposition that a security interest is
indicated where the assignee retains a right to recover a deficiency on the debt from the assignor if the assignment does not provide sufficient funds to satisfy the amount of debt. Similarly, in Ables v. Major Funding Corp. (In re Major Funding
Corp.), 82 B.R. 443, 448 (Bankr. S.D. Tex. 1987), the court held that a purported sale of mortgages was really intended as a pledge to secure a loan where the assignor guaranteed a rate of return to the assignee and agreed to repurchase
defaulted loans. 
  
 Courts have also found that, while recourse is an important
factor indicating a secured loan, recourse alone, without any guarantee of payment or other factors suggesting a secured loan, does not preclude a finding that an absolute assignment has occurred. The court in Major’s Furniture Mart, in
setting out an often-cited and particularly thorough set of criteria for analyzing a purported sale, noted in dictum that “the presence of recourse in a sale agreement without more will not automatically convert a sale into a security
interest.” 602 F.2d at 544. The court also cited comment 4 to UCC Section 9-502 which states that “there may be a true sale of accounts or chattel paper although recourse exists.” 
  
 The court in In re Federated Dept. Stores, 1990 Bankr. Lexis 1557 (S.D. Ohio 1990), in
holding that certain sales were “true arm’s-length sales”, noted the following: (1) the purchaser in the case being reviewed bore the risk that the purchased receivables would prove uncollectible; (2) the purchaser had a very limited
right of recourse against the sellers of the receivables that was not related to any defaults in payment under such receivables; (3) the purchase price paid by the purchaser for the receivables reflected the fair market value of such receivables;
(4) valid business reasons existed for not notifying account obligors of the sale of their accounts; and (5) the purchaser and the sellers 

  

			
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intended the purchases of the receivables to be true sales and not lending transactions. Id. at 3-4. See also In re Golden Plan of California, Inc., 829 F.2d
at 709 (in spite of arrangement for advances by seller on account of delinquent payments, investors receiving no contractual guarantee or compensation in case of foreclosure on underlying assets were absolute owners of instruments) and Goldstein v.
Madison Nat’l Bank of Washington, D.C., 89 B.R. 274, 277 (D.D.C. 1988) (recourse provision was not dispositive). 
  
 The Receivables Purchase Agreement conveys each Originator’s interest in the Receivables to Memec without stated recourse to the Originator for failure by the
Obligors to make required payments. No pre-existing debt is owed by the Originator to Memec which could be satisfied by payments from sources other than the Receivables. 
  
 Furthermore, except for the obligation to repurchase Receivables (a) sold by an Originator in violation of certain representations and
warranties relating to the eligibility of such Receivables and the absence of certain Liens with respect thereto, and (b) to the extent Memec exercises its “clean-up” call option under the Contribution Agreement, the Originators have no
right or obligation under the Receivables Purchase Agreement to repurchase from Memec any Receivables or to rescind or otherwise retroactively effect any sale of any Receivables after the Purchase Date therefor. These exceptions are standard in
transactions of this type and do not shift the risk of collectability of the Receivables to the Originators. 
  
 The fact that the Originators have certain obligations to indemnify Memec for failure to perform their respective obligations under the Receivables Purchase Agreement and the other Transaction Documents might be
argued to be a form of recourse. However, such limited indemnification obligations, do not relate to the credit quality of the Receivables or the ultimate credit risk of the Receivables which risk will be to Memec under the Receivables Purchase
Agreement and ultimately to the Company under the Contribution Agreement. 
  
 In
the event that Memec or an Affiliate thereof (including any of the Originators) is acting as a servicer with respect to such Receivables, the portion of the Servicing Fee payable to Memec or such Affiliate thereof with respect to such Receivables
shall be subordinated until amounts due under the Loan Agreement shall have been paid in full. A court could find that, because it is unlikely that a third-party servicer would agree to such a provision, such subordination effectively constitutes
recourse to Memec (or such Affiliate). However, because of the relatively small size of the Servicing Fee (1% of the outstanding Receivables) and the other positive factors outlined above this factor should not be dispositive in a court’s
analysis. 
  
 b. Opportunity for Gain. Another important factor courts have
examined in determining whether a transaction constitutes a secured financing or a sale is whether the assignor has transferred all opportunity for gain with respect to the assets. Where the assignee must account to the assignor for any surplus
received from the assignment over the bargained-for amount, courts have held such 

  

			
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factor to indicate that the transaction constitutes a secured financing. See In re Evergreen Valley Resort, Inc., 23 B.R. at 661, citing Gold Coast Leasing
Co. v. California Carrots, Inc., 93 Cal. App. 3d 274, 279 (1979). For example, the court in In re Carolina Utilities Supply Co., Inc., 118 B.R. 412, 416-17 (Bankr. D.S.C. 1990), noting that the bank purporting to purchase accounts receivable
from the company had to account to the company for any surplus collected on each account over 80% of the invoice amount which the bank initially advanced to the company, found that the accounts were security for a loan by the bank to the company.
See also, U.C.C. §9-502(2) (“If the security agreement secures an indebtedness, the secured party must account to the debtor for any surplus.”). 
  

In the Transaction, Memec has no obligation to remit any Collections on the Receivables back to the Originators unless and only to the extent that a Receivable
constitutes an Ineligible Receivable that is not a Designated Ineligible Receivable and an Originator has repurchased such Ineligible Receivable as a result of a material breach of a representation or warranty, in which event, any Collections with
respect thereto will be remitted by the Collection Agent to such Originator. Other than as set forth in the preceding sentence, all Collections (including Collections in respect of Designated Ineligible Receivables) will be for the sole benefit of
Memec. The Originators are entitled to any surplus or gain in respect of the Collections (including Collections in respect of Designated Ineligible Receivables). There is no guarantee by the Originators as to the minimum or maximum “rate of
return” to the Company and no mechanism to limit how much of the Collections Memec receives. Except for the purchase price for the Receivables, Memec has no direct payment obligation to the Originators with respect to the Receivables.

  
 c. Form of Transaction/Documentation. The form of the transaction has
also been found to be an important, although not dispositive, factor in determining whether a transaction is an assignment for security or a true sale. While substance is more important than form, Major’s Furniture Mart, 602 F.2d at 543,
courts have given varying degrees of weight to the language used in the transaction documentation. See, e.g., In re Golden Plan of California, Inc., 829 F.2d at 709 (documentation language found by court to indicate that absolute ownership was
transferred); See also In re Bevill, Bresler & Schulman Asset Management Corp., 67 B.R. 557, 597-98 (D.N.J. 1986) (form very important in determining whether repurchase agreement was sale or secured loan, particularly where parties to agreement
were sophisticated). In TKO Equip. Co. v. C&G Coal Co., 863 F.2d 541, 545-46 (7th Cir. 1988), the court enforced an agreement containing an express written disavowal that the parties created any security interests, particularly in light
of the fact that a third party creditor was found to have relied on such language. 
  
 The Receivables Purchase Agreement uses the form and language of a full disposition by way of sale. The Originators are commercially sophisticated parties and the Receivables Purchase Agreement clearly states that the conveyance of the
Receivables is intended to be a true sale, and not a pledge to secure a loan. The Originators have no obligation to satisfy from their own funds the 

  

			
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obligations of the Obligors. The Originators do not maintain any meaningful benefits of ownership with respect to the Receivables. The Originators and Memec
will treat the Transaction as a sale of the Receivables for all tax, accounting and regulatory purposes, with the effect that the Receivables to the Company will not be carried as assets on the books, records or individual financial statements of
the Originators; provided, however, that where consolidated financial statements of Memec are prepared, the conveyance of the Receivables will be indicated through a footnote to such financial statements. The financing statements filed to
perfect the ownership interest of Memec in the Receivables will reflect a sale of the Receivables and not the grant of a security interest. The Administrative Agent and certain other parties have made their investment in reliance on the treatment of
the Transaction by the Originators and Memec as a sale and not a secured loan. 
  
 d. Intent. The form of the transaction is closely linked in judicial decisions with the intent and the behavior of the parties. Where commercially sophisticated parties have characterized transactions as sales and have acted in
accordance with that characterization, many courts have given presumptive weight to that characterization. See, e.g., Kasuba v. Realty Income Trust (In re Kasuba), 562 F.2d 511, 514-15 (7th Cir. 1977) (the intent of the parties is controlling as
long as the stated intent is supported by the facts); see also Tavormina v. Aquatic Co. (In re Armando Gerstel, Inc.), 65 B.R. 602, 604 (S.D. Fla. 1986), citing Hassett v. Revlon, Inc. (In re O.P.M. Leasing Servs., Inc.), 23 B.R. 104, 115-16 (Bankr.
S.D.N.Y. 1982) (“the intent of the parties governs whether a particular document or transaction creates a security interest or an assignment”). The Receivables Purchase Agreement provides that it is intended that the sale of the
Receivables by the Originators to Memec be a true sale rather than a secured loan. The factors discussed above with respect to the form and structure of the Transaction are further evidence of this intent. 
  
 e. Servicing and Other Activities. In addition to stated intent, behavior such as
servicing of the assets has been found by courts to be indicative of the substance of the transaction. See, e.g., In re Mid Atlantic Fund, Inc., 60 B.R. 604, 608 (Bankr. S.D.N.Y. 1986) (“Creditors failed to act as if they were the absolute
owners . . . by recording the assignment or by demanding payment from the mortgagees”); see also In re Alda, 327 F. Supp. 1315, 1317 (S.D.N.Y. 1971) (court found petitioner was not a joint venturer with ownership interest in bankruptcy estate
because petitioner failed to file financing statements, debtor continued to control and manage accounts receivable and accounts were not segregated). Courts have varied the importance given to various activities of assignors and assignees in
determining how a transaction should be characterized. Courts have found transactions to be sales where notice was not given to obligors and the assignor continued to service the assigned assets. McVay v. Western Plains Serv. Corp., 823 F.2d 1395,
1398-99 (10th Cir. 1987) (loan participation transferred entire equitable interest to participating banks even where lead bank continued to service the loan); In re Golden Plan of California, Inc., 829 F.2d at 707 (seller received fee for arranging
and servicing loans). Courts that cited the retention by an assignor of servicing duties as a factor indicating a loan also seemed to rely on the full recourse nature of the transactions as well as other factors, such as the commingling of account
proceeds with general operating funds. 

  

			
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See, e.g., People v. Service Inst., Inc., 101 Misc. 2d 549, 552 (1979) (non-notification of account obligors and seller/servicer’s failure to hold
proceeds in separate account are evidence that assignment is for security); In re Major Funding Corp., 82 B.R. at 448 (seller/servicer had repurchase obligation upon account debtor default and also had commingled collection accounts); Blackford v.
Commercial Credit Corp., 263 F.2d 97, 106 (1959) (servicing by seller is one of several factors mentioned, including full recourse and a guaranteed rate of return). 
  
 As stated above, unless an Originator Termination Event has occurred and is continuing, the Obligors will not be notified of the
Transaction. Documentation such as accounting records will treat the Transaction as a sale, with the effect that the Receivables will not be carried as an asset in the consolidating financials statements or other accounting records of the
Originators. Financing statements evidencing Memec’s ownership interest in the Receivables will be filed on or prior to the Effective Date. Pursuant to the Loan Agreement, the Administrative Agent has appointed the Collection Agent as its agent
for servicing, administering and collecting the Receivables, and the Collection Agent has appointed the Originators as Sub-Collection Agents pursuant to the Receivables Purchase Agreement. Other than with respect to the Atlas Receivables during the
Atlas Transition Period, all Obligors shall make payments on all Receivables to the applicable Lock-Box Account. Any Collections (including Collections in respect of Designated Ineligible Receivables) relating to the Receivables received by the
Collection Agent will be deposited to the applicable Lock-Box Account in accordance with the applicable provisions of the Loan Agreement. As noted above, the Collection Agent may modify the terms of the Receivables only under certain limited
circumstances. Such modifications must arise as the result of a request of an Obligor, or as required by any Requirement of Law or if such Dilution Adjustment does not cause the Receivable to cease to be an Eligible Receivable. This modification
right constitutes a customary and reasonable delegation where an owner of receivables requires a third party to provide servicing and collection services to it. 
  

Upon an occurrence of a Collection Agent Default, the Administrative Agent, as assignee of the Company, may appoint any Person to succeed the Collection Agent. All
transfers of Collections from the Lock-Box Accounts to the other Transaction accounts shall be made by the Collection Agent in accordance with the terms of the Loan Agreement. The Collection agent shall have no right or interest in the Lock-Box
Accounts or the other Transaction Accounts. 
  
 In addition, on and after the
Termination Date, all Obligors may be notified by the Administrative Agent to make payments of all amounts payable under the Receivables directly to an account designated by the Administrative Agent. The Originators will maintain a record-keeping
system with respect to the Receivables that will clearly and unambiguously indicate that such Receivables have been sold assigned, conveyed and transferred to the Company, and, thereupon, contributed by Memec to the Company and a security interest
has been granted to the Administrative Agent by the Company. In sum, the servicing activities of the Originators will be conducted on behalf of the 

  

			
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Collection Agent and the Administrative Agent and collection and accounting procedures will clearly indicate that the Company is the owner of the
Receivables. 
  
 f. Octagon. We are aware of the opinion of the court in
Octagon Gas Systems, Inc. v. Rimmer, 995 F.2d 948 (10th Cir.), cert. denied, 114 S.Ct. 554 (1993). In Octagon, the court concluded that because Article 9 of the UCC requires any purchase of accounts to be perfected, a sale of
accounts is therefore treated under the UCC as a security interest in the accounts and any such accounts thus remain the property of the debtor’s bankruptcy estate. We note that the Originators have their chief executive offices in California,
a state in the Ninth Circuit. 
  
 We do not believe that a bankruptcy court
properly applying the principles of Article 9 of the UCC in a proceeding in which an Originator was the debtor should follow Octagon. The Court’s decision in Octagon is inconsistent with the stated language and intent of the UCC,
which clearly contemplates sales of accounts. Section 9-502(2) of the UCC, for example, states that “if the underlying transactions was a sale of accounts or chattel paper, the debtor is entitled to any surplus . . . only if the security
agreement so provides.” Comment 4 to Section 9-502(2) further states that “the determination whether a particular assignment constitutes a sale or a transfer for security is left to the courts.” 
  
 Various commentators have taken the view that, notwithstanding the decision of the court in
Octagon, accounts may be sold. In fact, Permanent Editorial Board Commentary No. 14 on the UCC rejects Octagon and amends Comment 2 to Section 9-502 to make clear that the UCC does not prevent, or even govern whether there is, a sale
of accounts. 
  
 We believe that Octagon was wrongly decided and that, in a
properly presented case in which the facts and assumptions relied herein are established, a court not bound by Octagon would decline to adopt its reasoning. You should recognize, however, that if Octagon were followed, it could result
in a conclusion that the Receivables remained “property of the estate” of an Originator under Section 541 of the Bankruptcy Code. We note that courts in the Ninth Circuit, which has jurisdiction in California, the principal place of
business of the Originators, are not bound by Octagon, a decision of the Tenth Circuit. 
  

	III.	OPINIONS EXPRESSED 

  
 Based on the reasoning and facts and on the assumptions, qualifications and limitations set forth in this letter, it is our opinion that in a properly presented and argued case, in the event of the bankruptcy of an
Originator, a federal bankruptcy court would find that the sale of the Receivables by such Originator to Memec in the manner set forth in the Receivables Purchase Agreement would constitute a true sale of such Receivables and not a borrowing by the
Originator secured by such Receivables, and therefore, such Receivables would not be the property of the Originator’s bankruptcy estate under Section 541 of the Bankruptcy Code. In the event it were asserted that the 

  

			
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beneficial interest in and legal title to the Receivables was part of the Originator’s bankruptcy estate, we express no opinion as to how long Memec or
an assignee thereof would be denied possession of such Receivables or how long Memec or an assignee thereof would be denied possession of the Collections in the Originator’s possession before the validity of such assertion could be finally
decided. We also express no opinion as to whether, in the event it were asserted that the beneficial interest in and legal title to the Receivables and the Collections were part of the Originator’s bankruptcy estate, a court would permit the
Contributor to use Collections in the Originator’s possession without the consent of Memec or an assignee thereof, either before deciding the issue or pending appeal after a decision adverse to Memec or such assignee. 
  
 All of the analysis and its conclusions contained in this letter are based on, and limited
to, the law and the structure of the Transaction in effect as of the date of this letter. We also note that a court’s decision regarding matters covered by our opinions in this letter will be based on the court’s own analysis and
interpretation of the factual evidence before such court and of legal principles applicable at such time. 
  
 We are members of the bar of the State of New York and we express no opinion herein as to any matters governed by any laws other than the law of the State of New York and the Federal laws of the United States of
America. 
  
 This opinion is rendered only to you and is solely for your benefit
in connection with the Transaction contemplated in the Receivables Purchase Agreement and the other Transaction Documents. It may not be relied upon by you for any other purpose, or quoted to or relied upon by any other person, firm or corporation
for any purpose, and, without our prior written consent, may not be transmitted or disclosed to any other person save to Standard & Poor’s Ratings Services, a division of the McGraw Hill Companies, Inc., and Moody’s Investor Services,
Inc., who may rely on this opinion as if it were addressed to them, and their respective legal advisors. 
  
 Very truly yours, 
  

 Schedule I 
  

Addressees 
  
 The Chase Manhattan Bank, as Administrative Agent 
 [Address] 
  
 Triangle Receivables Funding LLC c/o Memec, LLC 
 [Address] 
  
 Memec, LLC 
 [Address] 
  
 Park Avenue Receivables Corporation 
 [Address] 
  
 Sheffield Receivables Corporation 
 [Address] 
  

 Schedule II 
  
 List of Documents Reviewed by 
 Clifford Chance Rogers & Wells LLP 
  

	1.	U.S. Receivables Purchase Agreement dated [ · ], 2000, among Memec and the
Originators. 

  

	2.	Contribution Agreement dated as of [ · ], 2000, between the Contributor and the
Company. 

  

	3.	Asset Backed Loan Agreement dated as of [ · ], 2000, among the Administrative
Agent, the Company, the CP Conduit Lenders, Certain APA Banks and Barclays Bank plc, as Sheffield Funding Agent. 

  

	4.	Limited Liability Company Agreement dated [ · ], 2000, among Memec, LLC, as
sole equity member, and Donald J. Puglisi, as special member. 

  

	5.	Legal opinions of Richards, Layton & Finger, special Delaware counsel for Memec, Insight and Impact, dated [ · ], 2000, forms of which are attached hereto as Exhibit B. 

  

	6.	Legal opinion of Farella Braun & Martel, special California counsel for Unique, dated [ · ], 2000, a form of which is attached hereto as Exhibit C. 

  

	7.	Certificate of Solvency of [ · ], chief operating officer of Impact, dated [
· ], 2000, a form of which is attached hereto as Exhibit A. 

  

	8.	Certificate of Solvency of [ · ], chief operating officer of Unique, dated [
· ], 2000, a form of which is attached hereto as Exhibit A. 

  

	9.	Certificate of solvency of [ · ], chief operating officer of Insight, dated [
· ], 2000, a form of which is attached hereto as Exhibit A. 

  

	10.	Unfiled copies of the UCC-1 financing statements (together with the Schedule attached thereto) naming Memec, LLC as “Purchaser” and each Originator as “Seller”
and describing the Receivables Purchase Agreement and the Receivables to be sold thereunder, which will be filed in the State of California. 

  

 Exhibit A 
  

Solvency Certificate 
 of

 the Originators 
  

			
	 To:
	  	MEMEC LLC
	 	  	The Chase Manhattan Bank, as Administrative Agent
	 Attention:
	  	[ l ]
	 Facsimile:
	  	[ l ]

  
 I, [ l ], a duly elected [manager/officer] of [ l ] (the
“Originator”) hereby certify (in my capacity as a manager of the Originator) in connection with the sale of certain Receivables on the date hereof to the Purchaser (as defined herein) pursuant to that certain U.S. Receivables
Purchase Agreement dated as of [ l ], 2000 (the “Purchase Agreement”), among the Originator, [other Originators] and MEMEC LLC,
as the Purchaser (the “Purchaser”) as follows: 
  
 The fair value
of the assets of the Originator at a fair valuation exceeds the debts and liabilities (whether subordinated, contingent or otherwise) of the Originator. The assets of the Originator do not constitute unreasonably small capital to conduct the
business in which it is engaged as such business is now conducted and is proposed to be conducted. The present fair saleable value of the property of the Originator will be greater than the amount that will be required to pay the probable liability
of the Originator on its debts and other liabilities, subordinated, contingent or otherwise, as such debts and other liabilities become absolute and matured. The Originator does not intend to, or believe that it will, incur debts beyond its ability
to pay such debts as they mature, taking into account the timing of and amounts of cash to be received by the Originator and the timing of the amounts of cash to be payable on or in respect of its indebtedness. The Originator does not contemplate
the commencement of insolvency, bankruptcy, liquidation or consolidation proceedings or the appointment of a receiver, liquidator, conservator, trustee or similar official in respect of the Originator or any of its assets or revenue. 
  
 Capitalized terms used herein but not otherwise defined shall have the respective meanings
assigned to such terms in the Purchase Agreement. 
  
 IN WITNESS WHEREOF, I
have signed and delivered this solvency certificate this [ l ] day of [ l ]. 
  
 [
l ] 
 as Originator 

			
		
	 By:
	 	 
	 	 	 Name:

	 	 	 Title:

  

 Exhibit B 
  

Form of Delaware Counsel Opinions 
  

 Exhibit C 
  

Form of California Counsel Opinion 
  

 Schedule 3.1(j) 
  

 FORM OF SOLVENCY CERTIFICATE

  

			
	 To:
	  	MEMEC LLC
	 	  	The Chase Manhattan Bank, as Administrative Agent
	 Attention:
	  	[ l ]
	 Facsimile:
	  	[ l ]

  
 I, [ l ], a duly elected [manager/officer] of [ l ] (the
“Originator”) hereby certify (in my capacity as a manager of the Originator) in connection with the sale of certain Receivables on the date hereof to the Purchaser (as defined herein) pursuant to that certain U.S. Receivables
Purchase Agreement dated as of [ l ], 2000 (the “Purchase Agreement”), among the Originator, [other Originators] and MEMEC LLC,
as the Purchaser (the “Purchaser”) as follows: 
  
 The fair value
of the assets of the Originator at a fair valuation exceeds the debts and liabilities (whether subordinated, contingent or otherwise) of the Originator. The assets of the Originator do not constitute unreasonably small capital to conduct the
business in which it is engaged as such business is now conducted and is proposed to be conducted. The present fair saleable value of the property of the Originator will be greater than the amount that will be required to pay the probable liability
of the Originator on its debts and other liabilities, subordinated, contingent or otherwise, as such debts and other liabilities become absolute and matured. The Originator does not intend to, or believe that it will, incur debts beyond its ability
to pay such debts as they mature, taking into account the timing of and amounts of cash to be received by the Originator and the timing of the amounts of cash to be payable on or in respect of its indebtedness. The Originator does not contemplate
the commencement of insolvency, bankruptcy, liquidation or consolidation proceedings or the appointment of a receiver, liquidator, conservator, trustee or similar official in respect of the Originator or any of its assets or revenue. 
  
 Capitalized terms used herein but not otherwise defined shall have the respective meanings
assigned to such terms in the Purchase Agreement. 
  
 IN WITNESS WHEREOF, I
have signed and delivered this solvency certificate this [ l ] day of [ l ]. 
  
 [
l ] 
 as Originator 

			
		
	 By:
	 	 
	 	 	 Name:

	 	 	 Title:

  

 Schedule 4.1(n)(i) 
  

 LOCATION OF BOOKS AND
RECORDS 
  

 Schedule 4.1(n)(i)(ii) 
  

 CHIEF EXECUTIVE OFFICE 
  

 Schedule 4.1(p)(i) 
  

 OTHER BUSINESS NAMES 
  
 With respect to Impact Semiconductor Technologies LLC: 
  
 Impact Technologies 
  
 With respect to Unique Semiconductor Technologies Inc.: 
  
 Unique Technologies 
  

 Schedule 8.1 
  

 ACCOUNTS 
  
 With respect to the Originators: 
  
 With respect to the Purchaser: 
  

 EXHIBIT N 
  

FORM OF U.K. RECEIVABLES PURCHASE AGREEMENT 
  

			
	

	 	LIMITED LIABILITY PARTNERSHIP

  
 MEMEC UK LTD

 as Originator and Sub-Collection Agent 
  
 MEMEC LLC 
 as Purchaser and Collection
Agent 
  
 BARCLAYS BANK PLC 
 as Sheffield Funding Agent 
  
 and 
  
 THE CHASE MANHATTAN BANK 
 as PARCO Funding Agent and Administrative Agent

  

  
 UK RECEIVABLES PURCHASE AGREEMENT 
  

  

 CONTENTS 
  

					
	 Clause

	  	Page

		
	 Part 1 - Interpretation
	  	2
			
	 1.
	  	 Interpretation
	  	2
		
	 Part 2 - Sale Of Receivables
	  	9
			
	 2.
	  	 Offers Of Receivables
	  	9
			
	 3.
	  	 Acceptance Of Offers
	  	9
			
	 4.
	  	 Assignment Of Receivables And Perfection
	  	10
			
	 5.
	  	 Responsibilities Of The Originator
	  	10
			
	 6.
	  	 Calculation Of Purchase Price
	  	11
			
	 7.
	  	 Trust
	  	11
		
	 Part 3 - Collection Of Receivables
	  	12
			
	 8.
	  	 Appointment Of Sub-Collection Agent
	  	12
			
	 9.
	  	 Duties Of Sub-Collection Agent
	  	12
			
	 10.
	  	 Termination Of Appointment Of Sub-Collection Agent
	  	12
			
	 11.
	  	 Rights After Appointment Of New Sub-Collection Agent
	  	12
			
	 12.
	  	 Collection Of Receivables
	  	12
			
	 13.
	  	 Diluted Receivables And Other Reductions In Receivables
	  	13
			
	 14.
	  	 Breach Of Warranty
	  	13
			
	 15.
	  	 Originator Termination Event
	  	14
		
	 Part 4 - Payments, Accounts And Application Of Collections
	  	16
			
	 16.
	  	 Currency Of Accounts And Payment
	  	16
			
	 17.
	  	 Payments By Originator And Sub-Collection Agent
	  	16
			
	 18.
	  	 Payments
	  	17
		
	 Part 5 - Representations, Covenants And Indemnities
	  	18
			
	 19.
	  	 Representations Of Originator At Date Of Offer
	  	18
			
	 20.
	  	 Deemed Representation Of Originator
	  	18
			
	 21.
	  	 Financial Information
	  	19
			
	 22.
	  	 Originator Covenants
	  	19
			
	 23.
	  	 Originator Indemnities
	  	23
		
	 Part 6 - Miscellaneous
	  	25

  

					
			
	 24.
	  	 Taxes And Stamp Duty
	  	25
			
	 25.
	  	 Default Interest
	  	31
			
	 26.
	  	 Remedies And Waivers
	  	31
			
	 27.
	  	 Partial Invalidity
	  	31
			
	 28.
	  	 Accession
	  	31
			
	 29.
	  	 Notices
	  	32
			
	 30.
	  	 Counterparts
	  	32
			
	 31.
	  	 Confidentiality
	  	32
			
	 32.
	  	 Assignment
	  	32
		
	 Part 7 - Law And Jurisdiction
	  	33
			
	 33.
	  	 Law
	  	33
			
	 34.
	  	 Jurisdiction
	  	33
			
	 35.
	  	 Contracts (Rights Of Third Parties) Act 1999
	  	33
		
	 The First Schedule – Eligible Obligors
	  	34
		
	 The Second Schedule – Eligible Receivables
	  	35
		
	 The Third Schedule - Originator Daily Report
	  	37
		
	 The Fourth Schedule
	  	38
		
	 Originator Termination Events
	  	38
		
	 The Fifth Schedule
	  	40
		
	 Part 1 - Form Of Offer Letter
	  	40
		
	 Part 2a - Solvency Certificate
	  	41
		
	 Part 2b - Solvency Certificate
	  	42
		
	 The Sixth Schedule
	  	43
		
	 Part 1 – Representations As To Matters Of Law
	  	43
		
	 Part 2 - Representations As To Matters Of Fact
	  	44
		
	 Part 3 - Representations Relating To Receivables
	  	45
		
	 The Seventh Schedule
	  	46
		
	 Auditors’ Solvency Certificate
	  	46
		
	 The Eighth Schedule
	  	47
		
	 Originator Compliance Certificate: Audited Financial Information
	  	47
		
	 Originator Compliance Certificate: Unaudited Financial Information
	  	48
		
	 The Ninth Schedule
	  	49
		
	 Form Of Accession Undertaking
	  	49

  

			
	 The Tenth Schedule
	  	50
		
	 Accession Legal Opinion
	  	50
		
	 The Eleventh Schedule
	  	51
		
	 Signing And Closing List Of Documents
	  	51
		
	 The Twelfth Schedule
	  	52
		
	 List Of Existing Accounts
	  	52
		
	 The Thirteenth Schedule
	  	53
		
	 Form Of Security Power Of Attorney
	  	53
		
	 The Fourteenth Schedule
	  	56
		
	 Form Of Declaration Of Trust
	  	56

  

 THIS AGREEMENT is made the          day of
             [·] 2000 
  
 BETWEEN 
  

	(1)	MEMEC UK LTD, a company incorporated in England and Wales with registered number 3870533 having its registered office at 17 Thame Park Road, Thame, Oxon OX9 3XD as Originator
of receivables and collection agent in the United Kingdom in relation to receivables (respectively in each such capacity the “Originator” and “Sub-Collection Agent”); 

  

	(2)	MEMEC LLC, a limited liability company organised under the laws of the State of Delaware as purchaser and master collection agent (respectively in each such capacity the
“Purchaser” and “Collection Agent”); 

  

	(3)	BARCLAYS BANK PLC, a company organised under the laws of England and Wales as administrator (the “Sheffield Funding Agent”); and 

  

	(4)	THE CHASE MANHATTAN BANK, a banking corporation incorporated under the laws of the State of New York (the “PARCO Funding Agent” and the
“Administrative Agent”). 

  
 WHEREAS

  

	(A)	The Originator has at present and expects to have in the future Receivables owed to it which arise in the course of its business. 

  

	(B)	The Originator and the Purchaser have agreed, upon the terms and subject to the conditions of this Agreement, that the Originator may from time to time deliver an Offer Letter to
the Purchaser, in relation to an Offer by the Originator, offering to assign to the Purchaser Receivables arising from time to time to the Originator and in the event the Purchaser decides to accept an Offer it will do so in the manner provided
herein. 

  

	(C)	The CP Conduit Lenders shall, subject to the terms and conditions of the Asset Backed Loan Agreement, provide funds to the Borrower. The Borrower may from time to time make
distributions to the Purchaser. The Purchaser may use funds so received by it to accept Offers in the manner provided herein. The Lenders have appointed the Administrative Agent as their agent in connection with the foregoing.

  

	(D)	The Purchaser has been appointed by the Borrower under the Asset Backed Loan Agreement as its Collection Agent to service, collect and administer the Receivables and receivables
under other Receivables Purchase Agreements in accordance with the provisions of the Asset Backed Loan Agreement. 

  

	(E)	The Purchaser in its capacity as Collection Agent wishes to appoint the Originator as its Sub-Collection Agent, upon the terms and subject to the conditions hereof, to provide
services to the Purchaser in connection with the collection of the Receivables from time to time assigned to the Purchaser by the Originator upon the acceptance by the Purchaser of any Offers. 

  

 - 1 - 

 NOW IT IS HEREBY AGREED as follows: 
  
 Part 1 
  
 INTERPRETATION 
  

	1.	INTERPRETATION 

  

	1.1	Unless the context otherwise requires or as otherwise defined herein, in this Agreement and the Recitals and the Schedules hereto, the following terms shall have the following
meanings: 

  
 “Accession Legal
Opinion” means a legal opinion substantially in the form set out in the Tenth Schedule; 
  
 “Accession Undertaking” means an undertaking substantially in the form set out in the Ninth Schedule; 
  
 “Administration”, “bankruptcy”,
“dissolution”, “insolvency”, “liquidation”, “receivership” or “winding-up” of any Person shall be construed so as to include any equivalent or analogous proceedings
under the laws of the jurisdiction in which such person is incorporated (or, if not a company or corporation, domiciled) or any jurisdiction in which such Person carries on business; 
  
 “Affiliate” shall have the meaning assigned to it in the Contribution Agreement; 
  
 “Approved Currency” has the meaning assigned to it in the
Asset Backed Loan Agreement; 
  
 “Asset Backed Loan
Agreement” means the Asset Backed Loan Agreement dated [·], 2000 by and among, inter alia, the Borrower, the Funding Agents, the
Administrative Agent, the CP Conduit Lenders, the Purchaser and certain APA Banks, pursuant to which the CP Conduit Lenders thereunder have granted to the Borrower the Asset Backed Loan Facility; 
  
 “Borrower” shall have the meaning assigned to it in the
Asset Backed Loan Agreement; 
  
 “Business Day”
shall have the meaning assigned to it in the Contribution Agreement; 
  
 “Charged-off Receivable” shall have the meaning assigned to it in the Asset Backed Loan Agreement; 
  
 “Clause”, “Part”, “Recital” or “Schedule” is, subject to any contrary indication, a
reference to a clause or part hereof or a recital or schedule of this Agreement; 
  
 “Closing Documents List” means the document entitled “Signing and Closing List of Documents” specifying certain documents, notifications and other matters required as a condition precedent
to this Agreement as set out in the Eleventh Schedule; 
  
 “Collections” means all cash collections and other cash proceeds in respect of the Purchased Receivables thereof (including, if applicable, insurance proceeds which the Originator or the Collection Agent applies in the
ordinary course of its business to amounts owed in respect of such Receivable and net proceeds of sale or other disposition of repossessed goods or other collateral or property of the related Obligor or any other party directly or indirectly liable
for payment of such Receivable which are in the ordinary course of its business applied thereto) and each amount deemed to have been received or treated as a collection pursuant to this Agreement; 
  

 - 2 - 

 “Commitment” shall have the meaning assigned to it in the Asset Backed Loan Agreement;

  
 “Commitment Expiry Date” shall have the
meaning assigned to it in the Asset Backed Loan Agreement; 
  
 “Commitment Termination Date” shall have the meaning assigned to it in the Asset Backed Loan Agreement; 
  
 “Concentration Factor” shall have the meaning assigned to it in the Asset Backed Loan Agreement; 
  
 “Conditions Precedent” shall mean, in relation to the
initial purchase of Receivables, the conditions precedent set out in the Closing Documents List, in relation to any funding by the CP Conduit Lenders, the conditions precedent set out in the relevant Clause of the Asset Backed Loan Agreement and in
relation to any contribution by Memec LLC to the Borrower, the conditions precedent set out in the relevant Clause of the Contribution Agreement; 
  
 “Contribution Agreement” means the contribution agreement dated [•] 2000 between Memec LLC and the Borrower; 
  
 “CP Conduit Lenders” means PARCO and Sheffield; 

 
 “Credit Agreement” shall have the meaning assigned to it
in the Asset Backed Loan Agreement; 
  
 “Credit and
Collection Policies” means the document so entitled (including arrears procedures) initialled by the Originator by way of identification for use in connection with this Agreement and the Asset Backed Loan Agreement; 
  
 “Declaration of Trust” means the declaration of trust
substantially in the form of the Fourteenth Schedule; 
  
 “dollars” shall mean the lawful currency of the United States; 
  
 “Eligible Obligors” has the meaning assigned to it in the First Schedule of this Agreement; 
  
 “Eligible Receivables” has the meaning assigned to it in the Second Schedule of this Agreement; 
  
 “EMU” means the Economic and Monetary Union as contemplated
in the Treaty of European Union; 
  
 “EMU
Legislation” means the legislative measures of the European Union for the introduction of changeover to or operation of the euro in one or more member states being in part legislative measures to implement the third stage of the EMU;

  
 “euro” means the single currency of the
European Union as constituted by the Treaty on European Union as referred to in EMU Legislation; 
  
 “Excluded Receivables” means Receivables denominated or payable in any currency other than an Approved Currency and collections in
respect of which are not to be paid to an Originator Collection Account; 
  

 - 3 - 

 “GAAP” shall mean generally accepted accounting principles in the United States, set
forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such
accounting profession, which are in effect as of the date of this Agreement; 
  
 “Facility Limit” shall have the meaning assigned to it in the Asset Backed Loan Agreement; 
  
 “Funding Agents” means the PARCO Funding Agent and the Sheffield Funding Agent; 
  
 “Incremental Borrowing” shall have the meaning assigned to
it in the Asset Backed Loan Agreement; 
  
 “Indebtedness” shall have the meaning assigned to it in the Asset Backed Loan Agreement; 
  
 “Inter-Creditor Agreement” means the intercreditor agreement dated [·] 2000 between, inter alios, the PARCO Funding Agent, the Sheffield Funding Agent, the Borrower, the Purchaser, the Originator and The Chase Manhattan Bank in its capacity as
Collateral Agent under the Credit Agreement; 
  
 “Lien” shall have the meaning assigned to it in the Asset Backed Loan Agreement; 
  
 “Local Business Day” shall have the meaning assigned to it in the Contribution Agreement; 
  
 “Material Adverse Effect” shall have the meaning assigned
to it in the Asset Backed Loan Agreement; 
  
 “Material
Document” means any document, whether previously executed or expected to be executed in connection with the transfer of any Receivables which may have been sold or may in the future be sold pursuant to any agreement which may have been
formed or may in the future be formed on acceptance of an Offer contained in an Offer Letter, which first-mentioned document (i) would be necessarily required (A) to be produced as evidence in a court in the United Kingdom in order to enable the
Borrower to enforce its rights in respect of the Purchased Receivables against the Obligors or (B) for any of the purposes described in Clause 24.14(ii), and (ii) would be liable to ad valorem stamp duty if it did not fulfil the conditions for being
eligible to be adjudicated free of stamp duty under section 42 of the Finance Act 1930; 
  
 “Maximum Percentage Factor” shall have the meaning assigned to it in the Asset Backed Loan Agreement; 
  
 “month” shall mean a calendar month (and references to “months” shall be construed accordingly); 
  
 “Moody’s” shall mean Moody’s Investors Service,
Inc.; 
  
 “Memec Operating Account” shall mean
each bank account in the name of the Originator, number ·, ·, ·, with, or such other account as the Originator may designate as a Memec Operating Account from time to time by
notice to the Administrative Agent; 
  

 - 4 - 

 “Net Receivables Balance” shall have the meaning assigned to it in the Asset Backed Loan
Agreement; 
  
 “Notice of Assignment” means a
notice given to the related Obligor or Obligors (or guarantor or guarantors) to the effect that one or more Receivables (and if applicable the related benefit of any related guarantee or guarantees) have been assigned to the Purchaser; 

 
 “Obligor” means, with respect to any Receivable, the
party obligated to make payments with respect to such Receivable, including any guarantor thereof; 
  
 “Offer” means any offer made by the Originator to the Purchaser to sell Receivables; 
  
 “Offer Letter” means any letter in relation to an Offer
delivered by the Originator to the Purchaser in accordance with the provisions of Clause 2; 
  
 “Original Financial Statements” means the audited financial statements of Memec UK Ltd for the financial year ended 31 December 1999; 
  
 “Originator Collection Account” means each designated account in the name of the Originator or following
compliance with the provisions of Clause 12.1, the Borrower maintained and operated by the Sub-Collection Agent with [•] with the following designated account numbers [•] (in respect of Sterling), [•] (in respect of Dollars) and
[·] (in respect of euro) (as from time to time renewed, redesignated or renumbered) or such other account notified to the Purchaser and each the
Administrative Agent into which Collections are to be paid by the Obligors; 
  
 “Originator Daily Report” means the report to be delivered by the Sub-Collection Agent on a daily basis substantially in the form set out in the Third Schedule or in such other form as may be agreed
in writing by or on behalf the Purchaser and the Administrative Agent; 
  
 “Originator Termination Date” means the earliest of (i) the Business Day designated by the Purchaser to the Originator as the Termination Date at any time following forty-five (45) days’ written notice to the
Originator and the Administrative Agent, (ii) the day upon which an Originator Termination Event is declared or automatically occurs relating to an Originator Termination Event pursuant to Clause 15.1, and (iii) the Commitment Expiry Date;

  
 “Originator Termination Event” shall have
the meaning assigned to it in the Fourth Schedule; 
  
 “Originator Termination Notice” means a notice served by the Purchaser pursuant to the Clause 15; 
  
 “Outstanding Face Amount” means in relation to a Receivable on any date the amount in an Approved Currency which is the outstanding
balance due in respect thereof at the opening of business in London on such date (including VAT); 
  
 “PARCO” means Park Avenue Receivables Corporation, a special purpose corporation incorporated under the laws of Delaware, and its
permitted successors and assigns; 
  
 “Percentage
Factor” shall have the meaning assigned to it in the Asset Backed Loan Agreement; 
  

 - 5 - 

 “Permitted Lien” shall have the meaning assigned to it in the Contribution Agreement;

  
 “Potential Originator Termination Event”
means any event, which would, but for the lapse of a period of time specified in this Agreement or the giving of a notice contemplated by this Agreement, constitute an Originator Termination Event; 
  
 “Purchase” shall mean any assignment by the Originator to
the Purchaser of Eligible Receivables contemplated in Clause 4; 
  
 “Purchase Date” means any date on which an Offer is accepted by payment pursuant to the arrangements contemplated by this Agreement; 
  

“Purchase Period” means the period commencing on the Purchase Date and ending on the earlier of (i) the Termination Date and (ii) the
date on which the Purchaser at the direction of the Administrative Agent serves a Originator Termination Notice; 
  
 “Purchase Price” means, at any Purchase Date, an amount calculated in accordance with Clause 6; 
  
 “Purchased Receivables” means all Receivables originated by
the Originator which have been the subject of an Offer accepted by the Purchaser other than any such Receivables which have been repurchased pursuant to this Agreement or which have been paid in full or repaid in full by the relevant Obligor;

  
 “Qualified Institution” shall mean (i) an
institution authorised to take deposits in an OECD nation and which at all times has a short-term unsecured debt rating of at least A-1 by Standard & Poor’s and P-1 by Moody’s or (ii) an institution acceptable to the Co-Funding Agents;

  
 “Rating Agencies” means Standard &
Poor’s and Moody’s; 
  
 “Receivable”
means all the indebtedness and payment obligations of an Obligor to an Originator arising from the sale of merchandise or services by an Originator (and shall include, without limitation, the right of payment of any interest, sales taxes, finance
charges, returned check or late charges and other obligations of such Obligor with respect thereto); 
  
 “Receivables Purchase Agreements” shall have the meaning assigned to it in the Contribution Agreement; 
  
 “Relevant Documents” means this Agreement, the Asset Backed
Loan Agreement, each Receivables Purchase Agreement, the Contribution Agreement [and the Inter-Creditor Agreement]; 
  
 “Requirements of Law” shall have the meaning assigned to it in the Contribution Agreement; 
  
 “Security Power of Attorney” means the security power of
attorney substantially in the form of the Thirteenth Schedule; 
  
 “Servicing Fee” means the fee payable to the Sub-Collection Agent as specified in the Servicing Fee Letter; 
  
 “Servicing Fee Letter” means the letter agreement, dated on or about the date hereof between the Purchaser and the Collection Agent in
respect of the fees to be paid to the Sub-Collection Agent as provided in Clause 8.3; 
  

 - 6 - 

 “Settlement Date” means the fourteenth day of each month immediately succeeding a
Settlement Period or, if such day is not a Business Day, the next succeeding Business Day; 
  
 “Settlement Period” means the period of days from and including the first day of each calendar month to and including the last day of such month; 
  
 “Sheffield” means Sheffield Receivables Corporation, a
Delaware corporation, and its permitted successors and assigns; 
  
 “stamp duty” shall be construed as a reference to any stamp, registration or other transaction or documentary tax (including, without limitation, any penalty or interest payable in connection with any failure to pay or any
delay in paying any of the same); 
  
 “Stamp Duty
Group” shall mean the Originator, the Borrower and the Purchaser; 
  
 “Standard & Poor’s” shall mean Standard & Poor’s Rating Services, a division of The McGraw-Hill Companies Inc.; 
  
 “Sterling” and “£” denote the lawful currency for the time being of the United
Kingdom; 
  
 “Sub-Collection Agent” means the
Originator acting in its capacity as collection agent in relation to Purchased Receivables pursuant to the terms of this Agreement and the Asset Backed Loan Agreement or any successor thereto appointed pursuant to this Agreement; 
  
 “Tax” shall be construed so as to include any tax, levy,
impost, duty or other charge of a similar nature (including, without limitation, any penalty or interest payable in connection with any failure to pay or any delay in paying any of the same);  
  
 “Tax Law Change” means a change, amendment, modification,
addition to or deletion of any law, treaty, arrangement or convention relating to any tax, impost or withholding arising under law (including any change in practice or interpretation with respect thereto) in each case arising after the date hereof;

  
 “Termination Date” shall have the meaning
assigned to it in the Asset Backed Loan Agreement; 
  
 “Treaty on European Union” means the Treaty of Rome of 25 March 1957, as amended by the Single European Act 1986 and the Maastricht Treaty (which was signed at Maastricht on 7 February 1992 and come into force on 1 November
1993); and 
  
 “UK GAAP” means generally
accepted accounting principles, standards and practices in the United Kingdom, as in effect from time to time. 
  

	1.2	In this Agreement, all accounting terms not specifically defined herein shall, unless expressly stated otherwise, be construed in accordance with generally accepted accounting
principles, standards and practices in the United Kingdom. 

  

	1.3	Save where the contrary is indicated, any reference in this Agreement to: 

  

	 	(i)	 this Agreement or any other agreement or document shall be construed as a reference to this Agreement or, as the case may be, such other agreement or document as
the same may have been, or may from time to time be, amended, 

  

 - 7 - 

	 	 
varied, novated or supplemented with the approval of all of the parties to this Agreement; 

  

	 	(ii)	a statute shall be construed as a reference to such statute as the same may have been, or may from time to time be, amended or re-enacted; 

  

	 	(iii)	a time of day (including opening and closing of business) shall be construed as a reference to London time; and 

  

	 	(iv)	costs, charges, expenses and remuneration shall be deemed to include references to any value added tax or similar tax charged or chargeable in respect thereof and Section 89 of
Value Added Tax Act 1994 is hereby excluded for the purposes of this Agreement. 

  

	1.4	Clause, Part and Schedule headings are for ease of reference only. 

  

	1.5	For the purposes of this Agreement, capitalised terms used herein but not otherwise defined shall have the respective meanings assigned to such terms in the Asset Backed Loan
Agreement, or, if not defined therein, in the Contribution Agreement. 

  

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 Part 2 
  
 SALES OF RECEIVABLES 
  

	2.	OFFERS OF RECEIVABLES 

  

	2.1	The Originator may make an Offer for the sale and purchase of Receivables (other than Excluded Receivables) to the Purchaser, copied to the Administrative Agent, on any Business Day
falling on or after the date on which each of the Purchaser and the Administrative Agent has confirmed that it has received in form and substance satisfactory to it each of the documents specified in the Closing Documents List by delivering to the
Purchaser and to the Administrative Agent by letter, fax or electronic mail an Offer Letter substantially in the form set out in the Fifth Schedule. 

  

	2.2	Each Offer Letter delivered by the Originator pursuant to Clause 2.1 shall: 

  

	 	(i)	specify the total of the Outstanding Face Amounts and the Outstanding Face Amounts in each Approved Currency of the Receivables offered pursuant thereto and have the applicable
Originator Daily Report and a list of such Receivables appended to it; 

  

	 	(ii)	specify any amount of set-off exercised with regard to such Receivables; 

  

	 	(iii)	be delivered no later than 10.00 a.m. (New York time) on any Business Day and, if it is delivered after this time, it shall be deemed to be delivered on the next Business Day; and

  

	 	(iv)	constitute an offer by the Originator to sell (by way of assignment) to the Purchaser absolutely with full title guarantee (other than to the extent such full title guarantee would
be inconsistent with the representations made by the Originator when making an Offer) all of the Originator’s beneficial right, title and interest in and to the Receivables (and the related benefit of any guarantees referable thereto) to which
such Offer relates at the related Purchase Price calculated in accordance with Clause 6 and on the terms and conditions of this Agreement. 

  

	2.3	Each Receivable comprised in an Offer shall for the purposes of calculating the related Purchase Price in accordance with Clause 6 be deemed to be an Eligible Receivable, unless
otherwise specified in such Offer Letter. 

  

	3.	ACCEPTANCE OF OFFERS 

  

	3.1	The Purchaser may accept an Offer no later than five Business Days following that upon which such Offer is made. 

  

	3.2	Each Offer may be accepted by the Purchaser only with respect to the Receivables specified in the relevant Offer Letter and any purported form of acceptance of an Offer otherwise
than in the manner specified in Clause 3.4 to 3.6 shall be null and void and of no effect (and for the avoidance of doubt nothing in this Agreement or in any Offer Letter or in any other document shall of itself operate so as to convey or transfer
to any person any beneficial interest in any Receivables). 

  

	3.3	Each Offer shall be irrevocable and binding on the Originator until (if not accepted before such time) close of business (New York time) five (5) Business Days following the date of
such Offer (or such longer period of time for acceptance as may be agreed upon by the Originator and the Administrative Agent) when such Offer shall lapse. 

  

 - 9 - 

	3.4	Except as provided below, an Offer may only be accepted by payment of the Purchase Price in the relevant Approved Currency in respect of the relevant Receivables denominated in such
Approved Currency being made by or on behalf of the Purchaser to the Originator or on its behalf. The Purchase Price of Receivables in an Approved Currency shall be determined in accordance with Clause 6 by reference to the Outstanding Face Amounts
of all the Receivables denominated in such Approved Currency which are the subject of such Offer. 

  

	3.5	The Purchaser shall ensure that each payment made by it or on its behalf in order to accept an Offer is made by payment directly into the relevant Memec Operating Account.

  

	3.6	Save as otherwise provided herein, the Purchaser shall make funds available in relation to each Offer which it decides to accept by payment of the related Purchase Price (determined
in accordance with the provisions of Clause 6 and the Contribution Agreement) no later than close of business on the Purchase Date. No instructions or directions shall be given by the Purchaser (or by any other person on its behalf) for the making
of any payment as mentioned in Clause 3.4 until after the Offer to which such payment relates has been delivered (or, as the case may be, deemed to be delivered) to the Purchaser as mentioned in Clause 2.2(iii). 

  

	4.	ASSIGNMENT OF RECEIVABLES AND PERFECTION 

  

	4.1	Upon acceptance of any Offer in accordance with Clause 3.4 to 3.6 inclusive, the Originator’s beneficial rights, title and interest in and to the Receivables to which such
Offer relates (and the related benefit of any related guarantees) shall thereupon pass to the Purchaser. 

  

	4.2	Subject to Clause 4.4, the Originator and the Purchaser will take all such steps and comply with all such formalities as are specified in Clause 15.2 as the Administrative Agent on
behalf of the CP Conduit Lenders may reasonably require to perfect or more fully to evidence or secure the title of the Purchaser to the Receivables assigned (or purported to be assigned) pursuant to Clause 4.1, provided that the right to
require the steps and formalities specified in Clause 15.2 to be taken shall only exist on and after the Originator Termination Date. 

  

	4.3	Subject to Clause 4.4, the Originator and the Purchaser in order to secure the Borrower’s interest in the Receivables and the performance of its obligations in respect thereof
pursuant to this Agreement, any accepted Offer and the Asset Backed Loan Agreement, hereby agree to enter into the Security Power of Attorney referred to in the Closing Documents List in a form acceptable to each of the Co-Funding Agents on behalf
of the CP Conduit Lenders. 

  

	4.4	Notwithstanding the provisions of the Asset Backed Loan Agreement, and of Clause 15.2, all parties hereto (including the Originator as the donee of the Security Power of Attorney)
hereby agree that none of the powers conferred pursuant to such Security Power of Attorney may at any time be exercised unless at such time the Termination Date has been declared. 

  

	5.	RESPONSIBILITIES OF THE ORIGINATOR 

  
 Save as otherwise provided herein, the Originator shall perform all of its obligations related to the Purchased Receivables to the same extent as if such
Purchased Receivables had not been sold hereunder and the exercise by the Purchaser of its rights hereunder shall not relieve the Originator from such obligations. 
  

 - 10 - 

	6.	CALCULATION OF PURCHASE PRICE 

  

	6.1	The Purchaser shall determine based on each Originator Daily Report delivered in respect of each Offer the Purchase Price of the Eligible Receivables which are the subject of an
Offer by applying to the Outstanding Face Amount of such Eligible Receivables a discount of [·]%[, or such other discount as may be agreed upon
from time to time between the parties hereto.] 

  

	6.2	The Purchaser on receipt of an Offer Letter pursuant to Clauses 3.2 shall, at or before close of business on the date following the making of such Offer, notify (which notification
shall not be signed by the Purchaser or by any other person) the Originator specifying in respect of such Offer: 

  

	 	(i)	the Purchase Date; and 

  

	 	(ii)	the Purchase Price; 

  
 calculated in accordance with the provisions hereof. 
  

	6.3	Each calculation made by the Purchaser pursuant to this Clause 6 shall, in the absence of manifest error, be conclusive. For the avoidance of doubt, such referred to in Clause 6.2
notification shall not be required in order to effect acceptance of an Offer. 

  

	7.	TRUST 

  

	7.1	If for any reason any Receivable which is the subject of an accepted Offer cannot be duly assigned to the Purchaser as contemplated hereby then with effect from the date of the
purported assignment thereof the Originator shall hold the same and all Collections related thereto on trust absolutely for the Purchaser. 

  

	7.2	The provisions of Clause 7.1 shall be without prejudice to any obligations or representations of the Originator hereunder in respect of any such Receivables.

  

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 Part 3 
  
 COLLECTION OF RECEIVABLES 
  

	8.	APPOINTMENT OF SUB-COLLECTION AGENT 

  

	8.1	The Collection Agent hereby appoints (and the Sub-Collection Agent hereby accepts such appointment) the Sub-Collection Agent to service, collect and administer all Purchased
Receivables for the Collection Agent in accordance with the Credit and Collection Policies and the terms hereof and perform all related functions. 

  

	8.2	For the avoidance of doubt, it is hereby agreed that the Sub-Collection Agent is not authorised to enter into any contract on behalf of the Purchaser and is not entitled to act on
behalf of the Purchaser except in accordance with the express provisions of this Agreement and the Credit and Collection Policies. All of the parties acknowledge that the Sub-Collection Agent shall have no authority to act on behalf of the Borrower
except to the extent that the Sub-Collection Agent is authorised to act on behalf of the Collection Agent. 

  

	8.3	In consideration for its acting as Sub-Collection Agent hereunder, the Purchaser agrees to pay the Sub-Collection Agent the Servicing Fee. 

  

	9.	DUTIES OF SUB-COLLECTION AGENT 

  
 The Sub-Collection Agent shall carry out its duties as collection agent in accordance with the provisions, requirements and duties of care specified in
Section 2.08(b) (in respect of each UK Collection Account) and Section 6.02(a), (d) and (e) of the Asset Backed Loan Agreement, as if the provisions thereof were incorporated herein mutatis mutadis but interpreted as if references therein to
the Collection Agent were references to the Sub-Collection Agent. 
  

	10.	TERMINATION OF APPOINTMENT OF SUB-COLLECTION AGENT 

  
 If any event referred to in Clause 6.04 of the Asset Backed Loan Agreement occurs in relation to the Sub-Collection Agent, then the Collection Agent may
and shall at the direction of the Administrative Agent, terminate the appointment of the Sub-Collection Agent and appoint a successor Sub-Collection Agent in accordance with the provisions of the Asset Backed Loan Agreement. 
  

	11.	RIGHTS AFTER APPOINTMENT OF NEW SUB-COLLECTION AGENT 

  
 At any time following the appointment by the Collection Agent of a successor Sub-Collection Agent (other than Memec plc or any of its Affiliates) in
accordance with the provisions of the Asset Backed Loan Agreement, the Originator shall, at the Purchaser’s request, assemble all of the Records and shall make the same available to the Purchaser or to the order of the Purchaser. 
  

	12.	COLLECTION OF RECEIVABLES 

  

	12.1	 The Originator has opened account[s] in its name, maintained at [ACCOUNT BANK], [·] branch details of which are specified in the Twelfth Schedule (the “Existing Accounts”) and shall, within 21 days after the date hereof open Originator Collection Accounts, at such Account Bank
designated “[·]” or have redesignated each Existing Account “[·]” and the Originator will pay into such accounts designated “[·]” amounts received by it in respect
of the Collections relating to any Purchased Receivables, 

  

 - 12 - 

	 	 
including amounts received by the Originator in its capacity as Sub-Collection Agent in respect of Collections. 

  

	12.2 	The Originator has agreed to declare a trust over each Existing Account pursuant to the Declaration of Trust the form of which is set out in the Fourteenth Schedule.

  

	12.3 	Anything herein to the contrary notwithstanding, any amounts in respect of the Collections administered and serviced by the Sub-Collection Agent (whether or not the appointment of
the Sub-Collection Agent has been terminated) shall, pending their application to the Originator Collection Account, be held on trust for and to the order of the Purchaser. 

  

	12.4 	Amounts from time to time standing to the credit of each Originator Collection Account shall be applied in a manner and on such dates as are consistent with the principles set out
in the Contribution Agreement and the Asset Backed Loan Agreement. 

  

	13.	DILUTED RECEIVABLES AND OTHER REDUCTIONS IN RECEIVABLES 

  

	13.1 	If the amount paid or payable in respect of any Purchased Receivable is reduced after the date of the Offer in respect of such Purchased Receivable, by reason of (but not limited
to) any Receivable becoming a Diluted Receivable then the Originator shall nevertheless for the purposes of this Agreement be treated as having been paid by the relevant Obligor the amount of such reduction on the date of such reduction in addition
to any other amounts which may be paid or payable in respect of such Purchased Receivable. 

  

	13.2 	If any Purchased Receivable which is purported to be assigned pursuant to the terms of this Agreement shall have been collected in whole or in part prior to the time of such
purported assignment, then the portion thereof which shall have been so collected shall be treated for the purposes of this Agreement as having been collected by the Originator to which such Purchased Receivable relates immediately following such
purported assignment thereof. 

  

	13.3 	Save as otherwise provided herein the Originator shall pay to the Purchaser: 

  

	 	(i)	an amount equal to the amount of each reduction in respect of a Purchased Receivable as referred to in Clause 13.1 as soon as practicable after the Originator becomes aware of such
reduction; and 

  

	 	(ii)	an amount which is equal to the portion of any Purchased Receivable which has already been collected as referred to in Clause 13.2 as soon as practicable after the Originator
becomes aware of such purported assignment. 

  

	14.	BREACH OF WARRANTY 

  

	14.1 	If the Purchaser is obliged to make an Adjustment Payment under Clause 2.6(a) of the Contribution Agreement in relation to a Receivable purchased by the Purchaser from the
Originator, the Originator shall forthwith upon request of the Purchaser make payment to the Purchaser in an amount equal to, and in the currency of, the Adjustment Payment, and the Purchaser shall automatically agree to pay, and shall pay, to the
Originator all Collections received subsequent to such payment with respect to the relevant Receivable. 

  

	14.2 	 If the Purchaser is obliged to make an Indemnification Payment under Clause 2.6(b) of the Contribution Agreement in relation to a Receivable purchased by the
Purchaser 

  

 - 13 - 

	 	 
from the Originator, the Originator shall forthwith upon request of the Purchaser make a payment to the Purchaser in an amount equal to, and in the currency
of, the Indemnification Payment and the Purchaser shall automatically agree to pay, and shall pay, to the Originator all Collections received subsequent to such payment with respect to relevant Receivable. 

  

	14.3 	Each payment made pursuant to Clause 14.1 and 14.2 shall be in full satisfaction and discharge of any rights or remedies which the Purchaser may otherwise have had as a result of
any breach, anticipatory breach, misrepresentation or other circumstance on the part of or affecting the Originator, the Sub-Collection Agent or the Purchaser arising under the Relevant Documents in relation to the relevant Receivable in relation to
which such payment was made or (as the case may be) the Obligor concerned and, accordingly, each of the Purchaser hereby acknowledges that it will have no further or other rights as a result of or in connection with any such breach, anticipatory
breach, misrepresentation or other circumstance. 

  

	14.4 	In the event that the Purchaser chooses to make a Clean-Up Payment pursuant to Section 2.6(c) of the Contribution Agreement, then the Originator shall make a payment to the
Purchaser in an amount equal to that portion of the Clean-Up Payment that relates to Receivables purchased from the Originator. Upon receiving a payment pursuant to this Clause 14.4, the Purchaser shall automatically agree to pay to the Originator
all Collections received subsequent to such payment with respect to the Receivables in respect of which the payment pursuant to this Clause 14.4 was made. 

  

	15.	ORIGINATOR TERMINATION EVENT 

  

	15.1 	Upon the occurrence of any Originator Termination Event as described in the Fourth Schedule, then, upon notice thereof by the Purchaser, in the case of an Originator Termination
Event referred to in paragraphs 1, 2, 3, 4, 5, 8, 9 and 10 of the Fourth Schedule, so long as such Originator Termination Event shall be continuing, the Purchaser may declare that an Originator Termination Date has occurred provided however
that in the case of an Originator Termination Event referred to in paragraph 6 7 and 11 of the Fourth Schedule, the Originator Termination Date shall be deemed to automatically have occurred upon the occurrence of such event. On and after the
Originator Termination Date, any outstanding obligation of the Purchaser to purchase Receivables from the Originator pursuant to any agreement formed upon the acceptance of an Offer shall thereupon automatically terminate without further notice of
any kind, which the Originator hereby waives and the Originator shall not be entitled to make any further Offers. 

  

	15.2 	On and after the Originator Termination Date, in accordance with Clause 15.1, in respect of an Originator Termination Event, the Purchaser may and upon the directions of the
Administrative Agent shall, thereafter by notice in writing to the other parties hereto (such notice to specify the Originator Termination Event concerned) require (which requirement shall be binding on all of the parties) all or any of the
following: 

  

	 	(i)	such changes (if any) to the arrangements relating to Collections as may be specified in such notice; 

  

	 	(ii)	the removal of the Originator or its assigns as Sub-Collection Agent for the purposes of this Agreement and the appointment of a successor in its place in accordance with Clause 8
and the Asset Backed Loan Agreement; and 

  

 - 14 - 

	 	(iii)	the Originator to give Notices of Assignment to the Obligors (and the related guarantors) in respect of the Receivables (and the benefit of any related guarantee or guarantees) of
the assignment thereof to the Purchaser. 

  

	15.3 	The rights referred to or contained in Clauses 15.1 and 15.2 and the powers conferred thereby may be exercised only at the times and in the circumstances mentioned herein and,
accordingly, the Purchaser hereby undertakes to the Originator that it will not exercise or purport to exercise such rights other than at such times and in such circumstances. 

  

	15.4 	If an Originator Termination Date occurs, the Purchaser may notify in writing the other parties hereto of such fact and thereafter exercise its rights referred to or contained in
Clause 15.1 as if a Originator Termination Notice had been given on the date of such notice and the other provisions of this Clause shall thereupon also apply. 

  

 - 15 - 

 Part 4 
  
 PAYMENTS, ACCOUNTS AND APPLICATION OF COLLECTIONS 
  

	16.	CURRENCY OF ACCOUNTS AND PAYMENT 

  

	16.1 	Dollars is the currency of account and payment for each and every sum at any time due from any person hereunder, provided that: 

  

	 	(i)	each payment in respect of costs and expenses shall be made in the currency in which the same were incurred; and 

  

	 	(ii)	each payment which is expressed herein to be payable in another currency shall be made in that other currency. 

  

	16.2 	If any sum due from a person (a “relevant person”) under this Agreement or any order or judgment given or made in relation hereto has to be converted from the
currency (the “first currency”) in which the same is payable hereunder or under such order or judgment into another currency (the “second currency”) for the purpose of (i) making or filing a claim or proof against
the relevant person, (ii) obtaining an order or judgment in any court or other tribunal or (iii) enforcing any order or judgment given or made in relation hereto, the relevant person shall indemnify and hold harmless the person to whom such sum is
due from and against any loss suffered as a result of any discrepancy between (a) the rate of exchange used for such purpose to convert the sum in question from the first currency into the second currency and (b) the best rate or rates of exchange
at which such person is reasonably able to purchase the first currency with the second currency upon receipt of a sum paid to it in satisfaction, in whole or in part, of any such order, judgment, claim or proof. To the extent that the person to whom
such payment is due receives an amount in excess of the amount due to it under this Agreement, such person shall forthwith pay an amount equal to any such excess to the relevant person. 

  

	16.3 	All payments made by any person hereunder shall be made free and clear of and without any deduction for or on account of any set-off or counterclaim. 

  

	16.4	Where a sum is to be paid by any party (the “First Party”) for account of another party hereto, the First Party shall not be obliged to make the same available to
that other party hereto until it has been able to establish to its satisfaction that it has actually received such sum or, as the case may be, such sum is standing to the credit of the Originator Collection Accounts, but if it does so and it proves
to be the case that it had not actually received such sum or, as the case may be, such sum was not standing to the credit of the Originator Collection Account, then the party hereto to whom such sum was so made available shall on request ensure that
the amount so made available is refunded to the First Party. 

  

	17.	PAYMENTS BY ORIGINATOR AND SUB-COLLECTION AGENT 

  

	17.1 	On each date upon which this Agreement requires an amount to be paid by the Originator or the Sub-Collection Agent to any of the other parties hereto hereunder, the Originator or
the Sub-Collection Agent (as the case may be) shall save as expressly provided otherwise herein make the same available to such other party to such account and bank in [•] as such other party shall have specified in writing for this purpose at
least five (5) Business Days prior to such amount becoming payable, unless otherwise specified herein. 

  

 - 16 - 

	17.2 	For the avoidance of doubt the provisions of Clause 17.1 do not apply to payments received by the Sub-Collection Agent (other than for its own account) in relation to Purchased
Receivables which shall (save as expressly provided otherwise herein) be credited or paid by the Sub-Collection Agent as contemplated by Clauses 12.1 and 12.2. 

  

	17.3 	Each Originator Collection Account shall be debited in accordance with the provisions of Clauses 1.04, 2.05 and 2.06 of the Asset Backed Loan Agreement, and any balance remaining in
an Originator Collection Account which is to be applied by the Borrower or at the direction of the Borrower may be applied (subject to the provisions of Section 5.02(k) of the Asset Backed Loan Agreement), inter alia, in the acceptance of an
Offer or Offers provided that the Sub-Collection Agent shall not be authorised to apply any such amount in accepting an Offer unless and until the Sub-Collection Agent shall have received a direction given outside the United Kingdom by a person
acting on behalf of the Borrower and relating specifically to the relevant Offer, directing the Sub-Collection Agent to apply the relevant amount in accepting such Offer. Any application in making a payment in the acceptance of an Offer shall be
made by the Borrower on behalf of the Purchaser (and the Purchaser hereby irrevocably authorises the Borrower to make such application) and shall of itself constitute a payment by the Borrower by way of distribution in respect of the shares held by
the Purchaser in the Borrower. 

  

	18.	PAYMENTS 

  

	18.1 	On each date upon which this Agreement requires an amount to be paid to the Originator or the Sub-Collection Agent hereunder by any other party hereto (a “Relevant
Payer”) such Relevant Payer shall, save as otherwise provided herein, make the same available to the Originator or the Sub-Collection Agent (as the case may be) where such amount is denominated in an Approved Currency, by payment in
Approved Currency and in same day funds (or in such other funds as may for the time being be customary in London for the settlement of international banking transactions in Approved Currency) to the Originator or the Sub-Collection Agent (as the
case may be) at such account and bank as such the Originator or the Sub-Collection Agent (as the case may be) shall have specified in writing for this purpose at least two (2) Business Days prior to such amount becoming payable.

  

 - 17 - 

 Part 5 
  
 REPRESENTATIONS, COVENANTS AND INDEMNITIES 
  

	19.	REPRESENTATIONS OF ORIGINATOR AT DATE OF OFFER 

  

	19.1 	Each Offer shall constitute a representation by the Originator that each of the statements set out in Part 1 and Part 2 of the Sixth Schedule of this Agreement is true at the time
of such Offer. 

  

	19.2 	Each Offer shall constitute a representation by the Originator that, in relation to such Offer, each of the statements set out in Part 3 of the Sixth Schedule is true at the time of
such Offer in respect of the Receivables the subject thereof. 

  

	19.3 	In addition, at the time of each Offer, the Originator represents in the manner set out below by the then existing circumstances: 

  

	 	(i)	that unless otherwise agreed by the Purchaser, all information heretofore furnished by or on behalf of the Originator (including, without limitation, the Originator’s financial
statements) to the Purchaser for purposes of, or in connection with, this Agreement and the other Relevant Documents is true and accurate in every material respect, on the date such information is stated or certified; 

  

	 	(ii)	that it has filed all tax returns required to be filed and has paid or made adequate provision for the payment of all material taxes, assessments and other governmental charges
(including VAT); 

  

	 	(iii)	that no event has occurred and is continuing and no condition exists which constitutes a Potential Originator Termination Event or an Originator Termination Event;

  

	 	(iv)	that the names, addresses and contact details of all the Qualified Institutions at which the Originator Collection Accounts are held, together with the account numbers of all
Originator Collection Accounts used at such Qualified Institutions have been provided to the Purchaser; 

  

	 	(v)	that there has been no material change in or amendment to the Credit and Collection Policies, except as dealt with in accordance with Clause 22.2(v); and 

 

	 	(vi)	each member of the Stamp Duty Group is associated (within the meaning of Section 42 of the United Kingdom Finance Act 1930 (as amended)) with each other member of the Stamp Duty
Group. 

  

	20.	DEEMED REPRESENTATION OF ORIGINATOR 

  

	20.1 	The Originator shall be deemed to represent that any statement or information contained in any document, instrument, certificate or notice delivered to the Purchaser and the
Administrative Agent on behalf of the Originator in connection with the Relevant Documents and the transactions contemplated thereby is true and accurate in every material respect on the date that such document, instrument, certificate or notice is
delivered. 

  

 - 18 - 

	21.	FINANCIAL INFORMATION 

  

	21.1 	(i) No later than 150 days after the end of each of its financial years, the Originator shall deliver to the Purchaser and the Administrative Agent 3 copies of the Originator’s
audited accounts and a duly completed certificate in the form set out in the Seventh Schedule from the Originator’s independent registered public accounting firm; 

  

	 	(ii)	No later than 60 days after the end of each financial quarter, the Originator shall deliver to the Purchaser and the Administrative Agent 3 copies of the Originator’s unaudited
monthly management report, prepared in accordance with GAAP. 

  

	21.2 	The Originator shall ensure that: 

  

	 	(i)	each set of audited financial statements delivered by the Originator pursuant to Clause 21.1 (i) shall be certified by a duly authorised officer in the form set out in Part 1 of the
Eighth Schedule as: (a) having been prepared in accordance with accounting principles generally accepted in the United Kingdom and consistently applied (except for changes disclosed therein) and (b) giving a true and fair view of the relevant
company’s financial condition as at the end of the period to which those financial statements relate and of the results of its operations during such period; 

  

	 	(ii)	in conjunction with Clause 21.2(i) a duly authorised officer will further certify in the form set out in Part 1 of the Eighth Schedule that at the time of the submission of the
financial statements, no Potential Originator Termination Event or Originator Termination Event exists, or if any Potential Originator Termination Event or Originator Termination Event exists, stating the nature thereof; 

  

	 	(iii)	each set of financial statements delivered by the Originator pursuant to Clause 21.1(i) has been audited by an internationally recognised firm of independent auditors;

  

	 	(iv)	each set of unaudited reports delivered by the Originator pursuant to Clause 21.1 (ii) shall be certified by a duly authorised officer in the form set out in Part 2 of the Eighth
Schedule as, based on the information available at the time of each management report, giving a true and fair view of the company’s financial condition in all material respects as at the end of the period to which those management reports
relate and of the results of its operations during such period; and 

  

	 	(v)	such further information, prepared in accordance with GAAP, in the possession or control of the Originator regarding the financial condition and operations of the Originator
respectively as the Purchaser may reasonably request. 

  

	22.	ORIGINATOR COVENANTS 

  

	22.1 	The Originator shall: 

  

	 	(i)	comply with all Requirements of Law and material Contractual Obligations to which it is subject and which are applicable to it except to the extent that non-compliance would not
reasonably be likely to result in a Material Adverse Effect with respect to it; 

  

 - 19 - 

	 	(ii)	perform its obligations in accordance with the Credit and Collection Policies, as amended from time to time in accordance with the Relevant Documents, in regard to any Receivable,
except to the extent that non-compliance would not reasonably be likely to have a Material Adverse Effect on the collectability of such Receivable; 

  

	 	(iii)	comply with all Requirements of Law and obligations under any Contract with respect to any Receivable except to the extent that non-compliance would not reasonably be likely to have
a Material Adverse Effect on the collectability of such Receivable; 

  

	 	(iv)	ensure that at all times the claims against it under this Agreement rank at least pari passu with the claims of all its other unsecured creditors save those whose claims are
preferred by any bankruptcy, insolvency or other similar laws of general application; 

  

	 	(v)	provide to the Purchaser and the Administrative Agent promptly, from time to time, such historical information, including ageing and liquidation schedules, in form and substance
satisfactory to the Purchaser, as the Purchaser may reasonably request; 

  

	 	(vi)	provide to the Purchaser and the Administrative Agent promptly, from time to time, such other information regarding the operations, business affairs and financial condition of the
Originator, or compliance with the terms of any Relevant Document, in each case as the Company may reasonably request; 

  

	 	(vii)	every year in connection with the Auditors’ Report on the Directors’ Solvency Certificate as set out in the Seventh Schedule, provide to the Purchaser and the
Administrative Agent duly completed certificates in the forms set out in Part 2A and Part 2B of the Fifth Schedule, certified by a duly authorised officer of the Originator to be to the best of such officer’s knowledge (based upon due enquiry)
accurate and complete; 

  

	 	(viii)	pay before the same become delinquent and discharge all taxes, VAT, assessments, levies and governmental charges except for any which are being contested in good faith and for which
it has set aside adequate reserves in accordance with UK GAAP; 

  

	 	(ix)	keep proper books, records and accounts in which entries in conformity with UK GAAP shall be made of all dealings and transactions in relation to its business and activities; and
permit representatives of the Purchaser upon reasonable advance notice to visit and inspect any of its properties and examine and make abstracts from any of its books and records during normal business hours on any Local Business Day and as often as
may reasonably be requested, subject to the Purchaser’s security and confidentiality requirements and to discuss the business, operations, properties and financial condition of the Purchaser with officers and employees of the Purchaser and with
its auditors; 

  

	 	(x)	furnish to the Purchaser and the Administrative Agent: 

  

	 	(a)	 within five (5) Business Days of the Purchaser’s request, a certificate of a Responsible Officer of the Originator, certifying, as of the date thereof, to the
knowledge of such officer, that no Originator Termination Event has occurred and is continuing or if one has so 

  

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occurred, specifying the nature and extent thereof and any corrective action taken or proposed to be taken with respect thereto;

  

	 	(b)	promptly after a Responsible Officer of the Originator obtains knowledge of the occurrence of any Originator Termination Event or Potential Originator Termination Event, written
notice thereof; and 

  

	 	(c)	promptly following request therefor, such other information, documents, records or reports regarding or with respect to Receivables, as the Purchaser may from time to time
reasonably request; 

  

	 	(xi)	promptly give written notice to the Purchaser and the Administrative Agent of the occurrence of any Liens on Receivables originated by it (other than Permitted Liens);

  

	 	(xii)	The Originator shall not take any steps or action which would result in the Originator ceasing to be associated with the Purchaser and the Borrower for the purposes of Section 42 of
the United Kingdom Finance Act, 1930 (as amended). 

  

	22.2	None of the Collection Agent, the Originator and the Purchaser shall: 

  

	 	(i)	at any time contribute, convey, assign, transfer or otherwise dispose of any of the Receivables except as contemplated by the Relevant Documents; 

  

	 	(ii)	create or permit to subsist any encumbrance over all or any of the Purchased Receivables other than pursuant to the Contribution Agreement and other than Permitted Liens;

  

	 	(iii)	extend, make any Dilution Adjustment to, rescind, cancel, amend or otherwise modify, or attempt or purport to extend, amend or otherwise modify, the terms of any Receivables, unless
(a) (i) such cancellation, termination, amendment, modification, or waiver is made in accordance with the servicing standards set forth in Section 6 of the Asset Backed Loan Agreement (and would have been made in the ordinary course of business),
(ii) such cancellation, termination, amendment, modification or waiver arose as a result of a request from an Obligor, (iii) such amendment, modification or waiver does not cause such Receivable to cease to be an Eligible Receivable and (iv) such
cancellation, termination, amendment, modification or waiver would not have a material and prejudicial effect on the collectability of the relevant Purchased Receivable or (b) such Dilution Adjustment is the result of a pre-existing contractual
obligation between the Originator and the Obligor with respect to such Receivable provided that in the event the Originator or the Sub-Collection Agent cancels an invoice related to a Receivable, the Originator or the Sub-Collection Agent
must make a Dilution Adjustment Payment in an amount equal to the full value of such cancelled invoice pursuant to Section 2.5 of the Contribution Agreement provided that no action may in any event be taken as mentioned in this Clause 22.2(ii)
except in accordance with the Credit and Collection Policies; 

  

	 	(iv)	instruct or permit the Originator to instruct any Obligor of any Receivables to make any payments with respect to any Receivables other than in accordance with the Relevant
Documents; 

  

	 	(v)	 make any change or modification (or permit any change or modification to be made) in the Credit and Collection Policies with respect to any Receivable, 

  

 - 21 - 

	 	 
except if such changes or modifications are necessary under any Requirement of Law or except to the extent that such change or modification would not have a
Material Adverse Effect on the collectability of such Receivable; 

  

	 	(vi)	without the prior written approval of the Purchaser and each Co-Funding Agent, take any action which to its knowledge would cause, or would permit, a Receivable that was designated
as an Eligible Receivable on the Contribution Date relating to such Receivable to cease to be an Eligible Receivable, except as otherwise expressly provided by this Agreement; 

  

	 	(vii)	(in the case of the Originator) fail to maintain and operate the business currently conducted by the Originator and business activities reasonably incidental or related thereto in
substantially the manner in which it is presently conducted and operated if such failure would reasonably be expected to result in a Material Adverse Effect with respect to it; 

  

	 	(viii)	enter into any merger or consolidate with another Person or sell, lease, transfer or otherwise dispose of assets constituting all or substantially all of the assets of the
Originator and its consolidated Subsidiaries (taken as a whole) to another Person or liquidate or dissolve unless: 

  

	 	(a)	the Originator is the surviving entity; 

  

	 	(b)	subject to Section 8.13 of the Contribution Agreement, it has delivered to the Purchaser a certificate executed by a Responsible Officer of the Originator addressed to the Purchaser
(i) stating that such consolidation, merger, conveyance or transfer complies with this Clause 22.2 (viii) and (ii) further stating that all Conditions Precedent herein provided for relating to such transaction have been complied with;

  

	 	(c)	it has delivered to the Purchaser and the Administrative Agent an opinion of counsel from a nationally recognized legal counsel to the effect that the sale of Receivables to the
Purchaser by such Surviving Person, after the date of such merger, consolidation, sale, lease, transfer or disposal of assets, shall be treated as a “true sale” of any such Receivables; and 

  

	 	(d)	it has delivered to the Purchaser and the Administrative Agent a favourable opinion as to due incorporation and capacity of such surviving Person in such form as the Purchaser and
the Administrative Agent may reasonably require. 

  

	 	(ix)	other than as set forth in the Relevant Documents, amend any Relevant Document or other material document related to any transactions contemplated hereby or thereby.

  

	22.3 	The Originator hereby undertakes to the Purchaser that, until one year and one day has elapsed since the last day on which Commercial Paper was outstanding, it will not petition or
commence proceedings for the administration or winding up (nor join any person in the petition or commencement of proceedings for the administration or winding up) of the Purchaser. The Originator acknowledges that its recourse against the assets of
the Purchaser in respect of any claim under this Agreement, so far as it affects the Purchaser, shall be limited to the rights referred to in Clause 14. 

  

 - 22 - 

	22.4 	The Originator hereby undertakes that: 

  

	 	(i)	all of the Receivables were originated by the Originator and never have been or will be held by any company other than the Originator, the Purchaser and the Borrower;

  

	 	(ii)	no Receivables and no interest in the Receivables has been or will be assigned by the Originator to the Purchaser in the course of a reconstruction or amalgamation; and

  

	 	(iii)	all of the Receivables have been and will be originated by the Originator in the course of a trade of selling goods to the Obligors and the Receivables have not been and will not be
held (or treated as held) by the Originator otherwise than as trading assets on revenue account. 

  

	22.5 	No recourse under any obligation, covenant, or agreement of the Purchaser contained in this Agreement shall be had against any shareholder, officer or director of either the
Purchaser or any of its Affiliates as such, by the enforcement of any assessment or by any proceeding, by virtue of any statute or otherwise; it being expressly agreed and understood that this Agreement is a corporate obligation of the Purchaser and
no liability shall attach to or be incurred by the shareholders, officers, agents or directors of either the Purchaser or any of its Affiliates as such, or any of them, under or by reason of any of the obligations, covenants or agreements of the
Purchaser contained in this Agreement, or implied therefrom, and that any and all personal liability for breaches by the Purchaser of any of such obligations, covenants or agreements, either at law or by statute or constitution, of every such
shareholder, office, agent or director is hereby expressly waived by the Originator as a condition of and consideration for the execution of this Agreement. 

  

	22.6 	Notwithstanding anything to the contrary in this Agreement or any of the Relevant Documents to which the Purchaser is expressed to be party, all amounts (if any) payable or
expressed to be payable by the Purchaser under this Agreement shall be recoverable solely out of and to the extent of the sums received by the Purchaser under any of the Relevant Documents and which the Purchaser is entitled to apply for such
purpose in accordance with the order of priorities set out in the Relevant Documents. 

  

	23.	ORIGINATOR INDEMNITIES 

  

	23.1 	The Originator agrees to indemnify the Purchaser from time to time upon demand, against any loss, liability or expense which the Purchaser may suffer or incur as a result of any
failure by the Originator or the Collection Agent to make any payment due from it hereunder or which would have been due from it hereunder but for any illegality, invalidity or unenforceability affecting any of the obligations of the Originator or
in its capacity as the Collection Agent hereunder. 

  

	23.2 	The Originator agrees to indemnify the Purchaser from time to time against and pay thereto on demand the amount of any loss or expense suffered or incurred by the Purchaser as a
result of any revocation or purported revocation by the Originator of an Offer and any failure by the Originator to complete the sale and purchase constituted by acceptance of any such Offer including, without limitation, any loss or expense
incurred by the Purchaser by reason of liquidation or re-employment of funds acquired or requested by the Purchaser for the purposes of making funds available in respect of any such Offer. 

  

 - 23 - 

	23.3 	The Originator agrees to indemnify the Purchaser from and against all liabilities, losses and fees, costs and expenses in respect of: 

  

	 	(i)	any breach by the Originator of the representations made by it pursuant to the terms of Clauses 19 and 20; 

  

	 	(ii)	Collections being applied by the Collection Agent (if such Collection Agent is an Affiliate of the foregoing) otherwise than in accordance with the terms hereof; and

  

	 	(iii)	any failure by it to pay on the due dates amounts payable by it pursuant to Clauses 24 and 25 hereof, 

  
 in each case arising out of the ownership by it of an interest in the Purchased Receivables (or any rights relating thereto)
but except for (y) any gross negligence or wilful misconduct or default or breach of the Relevant Documents of the person seeking indemnification and (z) any such amounts which are referable to loss of profit or taxes on income. 
  

	23.4 	The Originator agrees to indemnify each of the other parties to this Agreement (each an “Indemnified Party”) against any loss (excluding loss of profit) or expense,
including legal fees reasonably incurred, which any Indemnified Party may sustain or incur as a consequence of any default by the Originator in the performance of any of the obligations expressed to be assumed by the Originator in this Agreement
(including in the case of the Purchaser any loss or expense incurred by the Purchaser by reason of liquidation or re-employment of any related funds). 

  

	23.5 	The Purchaser shall have no recourse whatsoever, either explicit or implicit, to any other assets of the Originator for credit losses in respect of Purchased Receivables and, in
such circumstances, the Originator shall have no obligation whatsoever to repay the Purchaser or its Affiliates Provided that this Clause 23.5 shall not remove the Originator from any of its obligations under any representations, warranties or
indemnities under this Agreement. 

  

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 Part 6 
  
 MISCELLANEOUS 
  

	24.	TAXES AND STAMP DUTY 

  

	24.1	All payments to be made by or on behalf of the Originator to any other party hereto (the “Recipient”) under or pursuant to any of the provisions of this Agreement
shall be made free and clear of and without deduction for or on account of tax unless the Originator is required by any applicable law to make such payment subject to the deduction or withholding of tax in which case the sum payable by the
Originator in respect of which such deduction or withholding is required to be made shall be increased to the extent necessary to ensure that, after the making of such deduction or withholding (and any additional deduction or withholding arising on
such increased amount), the Recipient receives and retains (free from any liability in respect of any such deduction or withholding) a net sum equal to the sum which it would have received and so retained had no such deduction or withholding been
made or required to be made. 

  

	24.2	Without prejudice to the provisions of Clause 24.1, if the Purchaser or the Sub-Collection Agent on behalf of the Purchaser is required as a result of this Agreement or the
transactions pursuant to it to make any payment on account of tax (not being (a) a tax imposed on its net income by the jurisdiction in which it is incorporated or resident for tax purposes or in which a branch or agency through which it is acting
is located or in which it is carrying on a trade or (b) the imposition of any stamp duty) on or in relation to any sum received or receivable by it hereunder (including, without limitation, any sum received or receivable under this Clause 24) or any
liability in respect of any such payment is asserted, imposed, levied or assessed against the Purchaser or the Collection Agent on behalf of the Purchaser, the Originator shall, upon demand, promptly but in any event within 5 Business Days indemnify
the affected person against such payment or liability, together with any interest, penalties and expenses payable or incurred in connection therewith, except to the extent of any such amounts that result from an unreasonable delay in making payment
by the affected person. The party intending to make a claim pursuant to this Clause 24.2 shall as soon as practicable notify the Originator of the event by reason of which it is entitled to do so; provided, however, that nothing herein shall
require such party to disclose any confidential information relating to the organisation of its affairs. 

  

	24.3	If at any time the Originator is required by any applicable law to make any deduction or withholding from any sum payable under or pursuant to any of the provisions of this
Agreement or the Contribution Agreement or any transactions pursuant thereto (or if thereafter there is any change in the rates at which or the manner in which such deductions or withholdings are calculated), the Originator shall promptly notify
each of the other parties hereto accordingly. If the Originator makes any payment under or pursuant to this Agreement or the Contribution Agreement or any transactions pursuant thereto in respect of which it is required to make any such deduction or
withholding, the Originator shall: 

  

	 	(i)	pay the full amount required to be deducted or withheld to the relevant taxation or other authority within the time allowed for such payment under the applicable law concerned; and

  

	 	(ii)	 deliver to the Recipient promptly upon receipt, any original receipt (or a certified copy thereof) issued by such authority evidencing the payment to 

  

 - 25 - 

	 	 
such authority of all amounts so required or entitled to be deducted or withheld or paid. 

  

	24.4	If in relation to the Purchaser there occurs a Tax Law Change (other than a change in rates of taxation or in the basis of taxation of income, profits or gains, wherever earned, of
the Purchaser) as a result whereof the Purchaser is required to make any payment on account of tax (other than a tax within (a) or (b) of Clause 24.2 above) in relation to any sum paid, received, payable or receivable by it under this Agreement or
the Contribution Agreement, or any liability for any such payment is asserted, imposed, levied or assessed against the Purchaser, the Originator shall, upon demand, promptly indemnify the Purchaser against such payment or liability.

  

	24.5	If an event occurs which would result in the Originator becoming obliged to make any payment pursuant to this Clause 24, then each of the parties hereto shall in good faith use
reasonable endeavours to take such reasonable steps as may be open to it to mitigate or avoid the effects of such event (including, in the case of the Purchaser, changing its place of residence) provided that nothing in this Clause 24.5 shall:

  

	 	(i)	oblige any party hereto to incur any costs or expenses (other than if the Originator agrees to reimburse such costs or expenses to such party); or 

  

	 	(ii)	oblige any party hereto to take or refrain from taking any action where in the reasonable opinion of such party to take or refrain from taking any action would be prejudicial to its
interests; or 

  

	 	(iii)	oblige any party hereto to disclose any confidential information relating to the organisation of its affairs; or 

  

	 	(iv)	interfere with the right of any party hereto to arrange its internal affairs in whatever manner it thinks fit. 

  

	24.6	If any person makes a payment under Clause 24 to or for the account of any other person and such second person (the “Payee”), acting reasonably, determines that it
has received or been granted a credit against, or relief or remission for, or repayment of, tax paid or payable by it in respect of or calculated with reference to the payment of tax or any deduction or withholding giving rise to such payment, the
Payee shall, to the extent that it can acting reasonably do so without prejudice to the retention of the amount of such credit, relief, remission or repayment, pay to such other person such amount as the Payee shall, acting reasonably, have
concluded will leave it after the payment of such amount in no better or worse net after tax position than it would have been in if such deduction or withholding of or on account of tax or payment or liability on account of tax referred to in Clause
24 had not been required, asserted, imposed, levied or assessed. 

  

	24.7	Nothing herein contained shall interfere with the right of a Payee to arrange its tax affairs in whatever manner it thinks fit, nor oblige any person to disclose any information
relating to its tax affairs or any of its tax computations. 

  

	24.8	The Payee under Clause 24.6 shall not be required to make any payment thereunder in respect of the credit, relief, remission or repayment referred to therein until such Payee is,
acting reasonably, satisfied that its tax affairs for its tax year in respect of which such credit, relief, remission or repayment was utilised have been finally settled to the satisfaction of the appropriate tax authority. 

 

	24.9	 The following provisions of this Clause 24.9 through 24.12 shall apply if, at any time after the date of this Agreement, any circumstances arise or become known to
the 

  

 - 26 - 

	 	 
Originator or the Sub-Collection Agent which give either of them reason to believe that any Relevant Document does not or (in the case of a Relevant Document
not yet executed at the relevant time) would not qualify for Section 42 Exemption. For the purposes of the foregoing (and for the avoidance of doubt): 

  

	 	(i)	the circumstances referred to shall include, so far as relevant, any failure by the United Kingdom Stamp Office to adjudicate a Relevant Document as being free of any United Kingdom
stamp duty where a Rating Agency has required that such a document should be so adjudicated as an indication that Section 42 relief is available for the Relevant Documents as a condition of maintaining or granting an Appropriate Rating, any change
in law or official practice, any transaction entered into by the Originator or the Sub-Collection Agent becoming aware of any legal rule or legal interpretation not mentioned in the Tax Opinion; and 

  

	 	(ii)	the reference to any Relevant Document includes both documents which have been executed at the relevant time and documents which may be required to be executed thereafter for the
purposes mentioned in the definition of “Relevant Document”. 

  

	24.10 	Where Clause 24.9 applies, the Originator shall: 

  

	 	(i)	notify the Purchaser and the Administrative Agent of the relevant circumstances promptly after becoming aware of the same; and 

  

	 	(ii)	instruct Clifford Chance (or any other Tax Adviser) to confirm (so far as it is able) in a manner acceptable to the Purchaser and the Administrative Agent (acting reasonably) that:

  

	 	(a)	where the Tax Opinion considers the application of stamp duty to the Relevant Document in question, the circumstances mentioned in Clause 24.9 above do not require the Tax Opinion
to be altered or qualified in any way as regards that Relevant Document; 

  

	 	(b)	where the Tax Opinion does not consider the application of stamp duty to the Relevant Document in question, the document in questions fulfils (or, as the case may be, would fulfil)
the conditions for being eligible to be adjudicated free of ad valorem stamp duty under section 42 of Finance Act 1930; or 

  

	 	(c)	in either case, it would not be necessary to produce the document in question (i) as evidence in a court in the United Kingdom in order to enable the Borrower to enforce its rights
in respect of the Receivables against the Obligors or, (ii) where relevant, for any of the purposes described in Clause 24.14(ii); 

  
 and, if such confirmation cannot be given, to advise as to the amount of stamp duty (including any interest and penalties) which would be chargeable on
the Relevant Document in question (the “Applicable Stamp Duty Amount” in relation to that document) and additionally as to the amount of Stamp Duty which is chargeable on any Existing Relevant Document. 
  

 - 27 - 

	24.11	Where the Originator notifies the Purchaser and the Administrative Agent pursuant to Clause 24.10(i) above, a Termination Event shall be deemed to occur on the expiry of a period of
ninety (90) Business Days after the date of receipt of such notice (the “Cure Period”) unless, before such expiry, one of the conditions set out in Clause 24.11(i), (ii), (iii) or (iv) below is satisfied: 

 

	 	(i)	the Originator shall have received an opinion from Clifford Chance (or any other Tax Adviser) containing a confirmation in the terms set out in Clause 24.11(ii)(a), (b) or (c) above
and either (a) where any debt which is secured on the debt under this Agreement is already rated by the Rating Agencies on a basis which takes into account this Agreement without reference to any credit support provided through the PARCO Asset
Purchase Agreement and the Sheffield Asset Purchase Agreement, the Rating Agencies have confirmed such opinion is adequate to maintain the existing rating; or (b) where the debt is not yet rated the Rating Agencies have confirmed that such opinion
is adequate to allow them to grant an Appropriate Rating on such basis, without a Rating Agency requirement for additional adjudication of the Stamp Office indicating the Section 42 Exemption is available for Relevant Documents.

  

	 	(ii)	the Originator shall (and, if applicable, shall have procured that the Sub-Collection Agent, the Borrower, the Contributor and any Affiliate of the Originator shall) have altered
the relationships between members of the Stamp Duty Group with a view to ensuring that Section 42 Exemption is available in relation to any Relevant Documents (such exemption to be confirmed by the delivery acceptable to the Rating Agency of an
appropriate tax opinion if requested by the Administrative Agent together with, if required by any Rating Agency, evidence of an adjudication of a Relevant Document (specified by the Rating Agencies) by the Stamp Office indicating the Section 42
Exemption is available for Relevant Documents; or 

  

	 	(iii)	the Borrower shall have agreed with the Administrative Agent what amount should be credited to the Stamp Duty Reserve Account in order to provide against any possible requirement
for stamp duty to be paid on any Relevant Document referred to in Clause 24.11 above and the said amount shall have been credited to the Stamp Duty Reserve Account; provided that: 

  

	 	(a)	the Administrative Agent undertakes to act reasonably in agreeing the said amount having regard to (inter alia) the Applicable Stamp Duty Amount referred to in Clause 24.10(ii)
above and any requirements of the Rating Agencies; and 

  

	 	(b)	the amount to be credited to the Stamp Duty Reserve Account in accordance with this Clause 24.11 (iii) shall not exceed 8% of the Outstanding Balance of all Receivables; or

  

	 	(iv)	The Borrower and the Administrative Agent shall have agreed what change should be made to the Percentage Factor in the Asset Backed Loan Agreement to reflect the relevant
circumstances referred to in Clause 24.9. 

  
 No
Offer Letter may be delivered during the Cure Period unless and until one of the conditions set out in (i), (ii) and (iii) above have been satisfied. 
  

	24.12 	 Notwithstanding the provisions of Clause 24.11 above, where the Borrower notifies the Administrative Agent pursuant Clause 24.10(ii) above and such notification
relates to any document which is an Existing Relevant Document. An Originator Termination Event shall be deemed to occur immediately after the expiry of a period of seven (7) Business Days after the date of receipt of such notice unless, before such
expiry, either (x) the Borrower shall have received an opinion from Clifford Chance (or any other Tax Advisor) containing a confirmation in the terms set out in Clause 24.10(ii)(a), (b) or (c) above in relation to the Existing Relevant Documents or
(y) the Originator shall have agreed with the Purchaser and the Administrative Agent (in consultation with the 

  

 - 28 - 

	 	 
Funding Agents) what amount should be credited to the Stamp Duty Reserve Account in order to provide against any possible requirement for stamp duty to be
paid on any Existing Relevant Document referred to in Clause 24.10 above and the said amount shall have been credited to the Stamp Duty Reserve Account provided that: 

  

	 	(i)	the Administrative Agent undertakes to act reasonably in agreeing the said amount having regard to, inter alia, the Applicable Stamp Duty Amount relating to Existing Relevant
Documents referred to in Clause 24.10 (ii) above and any requirements of the Rating Agencies; and 

  

	 	(ii)	the amount to be credited to the Stamp Duty Reserve Account in accordance with this Clause 24.11 shall not exceed 8% of the Outstanding Balance of all Receivables which have already
been acquired by the Borrower to which an Existing Relevant Document relates; or 

  

	 	(iii)	the Receivables which are the subject of any Existing Relevant Documents referred to in Clause 24.9 are dealt with according to Clause 2.6 of the Contribution Agreement as if they
were Ineligible Receivables (as defined in the Contribution Agreement) and where an Adjustment Payment (as defined in the Contribution Agreement) is made to the Borrower in respect of such Receivables within seven (7) Business Days of the
commencement of the Cure Period, or the Borrower and the Administrative Agent shall have agreed what change should be made to the Percentage Factor in the Asset Backed Loan Agreement to reflect the relevant circumstances referred to in Clause 24.9.

  

	24.13 	Funds shall be released from the Stamp Duty Reserve Account in the circumstances and in the amounts set out in this Clause 24.13 In each case the relevant amount shall be released
to the Borrower as the beneficial owner thereof and the amount released shall cease to be subject to any security interests granted by the Borrower to or for the benefit of the Lenders or to any restrictions contained in the Transaction Documents
over the assets of the Borrower. Amounts shall be released from the Stamp Duty Reserve Account as follows: 

  

	 	(i)	any amount (or any part of an amount) standing to the credit of the Stamp Duty Reserve Account shall have been so credited in order to provide against the payment of stamp duty on
any particular Relevant Document (such amount being the “Attributable Stamp Duty Reserve Amount” in relation to the Relevant Document in question); and 

  

	 	(ii)	the Originator or any of its Affiliates (or any other person on their behalf) shall have paid any amount either: 

  

	 	(a)	to the Inland Revenue in order to secure the stamping of the Relevant Document in question; or 

  

	 	(b)	to any other person in order to indemnify that person for the payment of stamp duty on the Relevant Document in question: 

  
 an amount equal to the amount paid by the Originator or any Affiliate (or on
its behalf) as mentioned in (ii) above (but not exceeding the relevant Attributable Stamp Duty Reserve Amount) shall be released to the Borrower. 
  

	 	(iii)	 if any Relevant Document is adjudicated by the Inland Revenue as being free of ad valorem stamp duty and any amount standing to the credit of the Stamp Duty Reserve
Account represents an Attributable Stamp Duty Reserve Amount in relation to that Relevant Document, the said amount shall be released provided 

  

 - 29 - 

	 	 
that no amount shall be released from the Stamp Duty Reserve Account pursuant to this Clause 24.13 if either of the Rating Agencies shall have
indicated that such release would cause a downgrading of any debt which is secured on the debt under the Asset Backed Loan Agreement; 

  

	 	(iv)	subject to the written consent of the Administrative Agent acting reasonably, if the Rating Agencies shall confirm (following a request from the Borrower or otherwise) that the
release of a given amount from the Stamp Duty Reserve Account would not cause a down-grading of any debt which is secured on the debt under the Asset Backed Loan Agreement without reference to any credit support provided through the PARCO Asset
Purchase Agreement and the Sheffield Asset Purchase Agreement. 

  

	 	(iv)	if at any time the Borrower shall either (a) have no outstanding rights or claims against any Obligors and shall have ceased to acquire any rights in respect of Receivables or (b)
shall have discharged all of its liabilities under the Asset Backed Loan Agreement and there is no prospect of any further Loans being made any funds remaining in the Stamp Duty Reserve Account at that time shall be released.

  

	24.14 	The Originator will pay and hold itself responsible for and will seek no indemnity from the Purchaser, the Administrative Agent or the Borrower in respect of Stamp Duty which is
required to be paid in order to secure the stamping of any Material Document for any of the following purposes: 

  

	 	(i)	Allowing the Material Document in question to be produced in evidence in proceedings in the United Kingdom where this is required in order to enable the Purchaser or the Borrower to
enforce its rights in respect of any Purchased Receivables against the Obligors and either: 

  

	 	(a)	the judge, arbitrator or other person responsible for the determination of such proceedings has ruled that an executed original or counterpart of the Material Document must be
produced in evidence as aforesaid (provided that if an appeal against the ruling is permissible and the Originator so requests, and on the condition that the Originator indemnifies the Purchaser, the Borrower or the Administrative Agent, as the case
may be, to its respective satisfaction on an after-tax basis for all costs involved in such an appeal, the Purchaser or the Administrative Agent, as the case may be, will pursue such an appeal pending which neither the Purchaser nor the
Administrative Agent, as the case may be, will cause an executed original or counterpart of the Material Document to be produced in evidence as aforesaid); or 

  

	 	(b)	the rules governing the conduct of such proceedings provide that a certified unstamped copy of the Material Document in question or any other form of evidence of the matters which
are the subject of such proceedings cannot be produced as adequate evidence for the purposes of such proceedings; or 

  

	 	(ii)	complying with a requirement imposed by any judicial or governmental authority for the Material Document in question to be stamped before it will be taken into account for the
purpose of determining any liability of the Purchaser or the Borrower to taxation (subject to the Purchaser or (as the case may be) the Borrower taking reasonable steps to resist or avoid such requirement (insofar as it is able to do so whilst fully
complying with its obligations under applicable law and practice and without causing any material prejudice (actual or potential) to its interests)). 

  

 - 30 - 

	25.	DEFAULT INTEREST 

  

	25.1	If any sum due and payable by or on behalf of the Originator or the Sub-Collection Agent or the Purchaser hereunder is not paid on the due date therefor in accordance with the
provisions of Clauses 17 and 18 or if any sum due and payable by the Originator or the Purchaser under any judgment of any court in connection herewith is not paid on the date of such judgment, the period beginning on such due date or, as the case
may be, the date of such judgment and ending on the date upon which the obligation of such person to pay such sum (the balance thereof for the time being unpaid being herein referred to as an “unpaid sum”) is discharged shall be
divided into successive periods, each of which (other than the first) shall start on the last day of the preceding such period and the duration of each of which shall be selected by the person to whom such sum is payable (the “Overdue
Payee”). 

  

	25.2	During each such period relating thereto as is mentioned in Clause 25.1 an unpaid sum shall bear interest at the rate per annum which is the sum of one and half (1.5) per cent. and
the rate at which [reference bank] was offering to prime banks in the London Interbank Market deposits in the currency in which such unpaid sum is denominated for the period for which such rate is to be determined at 11.00 a.m. on the date upon
which quotations would ordinarily be given by prime banks in the London Interbank Market for deposits in such currency for such period Provided that, if, for any such period, [reference bank] was not offering deposits in the currency in which such
unpaid sum is denominated for the required period, the rate of interest applicable to such unpaid sum shall be determined by reference to the cost as certified by the Overdue Payee to whom such sum is owed of obtaining such deposits from such
sources as it may reasonably select, the certificate to show in reasonable detail the basis of calculation of such amount. 

  

	25.3	Any interest which shall have accrued under Clause 25.2 in respect of an unpaid sum shall be due and payable and shall be paid by the Originator, or the Sub-Collection Agent or the
Purchaser at the end of the period by reference to which it is calculated or on such other dates as the Overdue Payee to whom such sum is owed may specify by written notice to the Originator. 

  

	26.	REMEDIES AND WAIVERS 

  

	26.1	No failure to exercise, nor any delay in exercising, on the part of any party hereto, any right or remedy hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise of any right or remedy prevent any further or other exercise thereof or the exercise of any other right or remedy. 

  

	26.2	The rights and remedies herein provided are cumulative and not exclusive of any rights or remedies provided by law. 

  

	27.	PARTIAL INVALIDITY 

  
 Without prejudice to any other provision hereof, if one or more provisions hereof is or becomes invalid, illegal or unenforceable in any respect in any
jurisdiction or with respect to any party such invalidity, illegality or unenforceability in such jurisdiction or with respect to such party or parties shall not, to the fullest extent permitted by applicable law, render invalid, illegal or
unenforceable such provision or provisions in any other jurisdiction or with respect to any other party or parties hereto. 
  

	28.	ACCESSION 

  
 If any United Kingdom Affiliate of the Originator acceptable to the Purchaser and the Administrative Agent executes and delivers to the Purchaser and the
Administrative 

  

 - 31 - 

 
Agent a duly completed Accession Undertaking in substantially the form set out in the Ninth Schedule and the Accession Legal Opinion from legal counsel
acceptable to the Purchaser and the Administrative Agent and the Rating Agencies in substantially the form set out in the Tenth Schedule and the provisions of Section 8.15 of the Asset Backed Loan Agreement are satisfied, such Affiliate of the
Originator shall become a party to this Agreement as an Originator on the delivery of such Accession Undertaking and such Accession Legal Opinion to the Purchaser and the Administrative Agents and the satisfaction of such provisions. 
  

	29.	NOTICES 

  

	29.1	Unless otherwise stated herein, each communication to be made hereunder shall be made in writing and may be made by telefax or letter. 

  

	29.2	Any communication or document to be made or delivered by any one person to another pursuant to this Agreement shall (unless that other person has by fifteen days’ written
notice to the other parties hereto specified another address) be made or delivered to that other person at the address identified with its signature below and shall be deemed to have been made or delivered when despatched (in the case of any
communication made by telefax) or (in the case of any communication made by letter) when left at that address or (as the case may be) ten days after being deposited in the post postage prepaid in an envelope addressed to it at that address Provided
that each telefax communication made by one party hereto to another shall be made to that other person at the telefax number notified to such party by that other person from time to time. 

  

	29.3	Each communication and document made or delivered by one person to another person pursuant hereto shall be in the English language or accompanied by a translation thereof into
English certified (by an officer of the person making or delivering the same) as being a true and accurate translation thereof. 

  

	30.	COUNTERPARTS 

  
 This Agreement may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, but all of such counterparts
shall together constitute but one and the same instrument. 
  

	31.	CONFIDENTIALITY 

  
 Each of the parties to this Agreement shall maintain, and shall cause each officer, employee and agent of itself and its Affiliates to maintain, the
confidentiality of the information obtained in respect of this Agreement and each of their respective businesses obtained by them, except for information that has become publicly available or information disclosed (i) to their legal counsel,
accountants and other professional advisers, (ii) as required by law, regulation or legal process or (iii) in connection with any legal or regulatory proceeding to which they or any of their Affiliates are subject (iv) to Rating Agencies with
respect to this transaction. 
  

	32.	ASSIGNMENT 

  
 This Agreement shall be binding upon and inure to the benefit of the Originator and the Purchaser and their respective successors (whether by way of
merger, consolidation or otherwise) and permitted assigns. The Originator agrees that it will not assign or transfer all or any portion of its rights or obligations hereunder (other than pursuant to or as contemplated by the Relevant Documents)
without prior written consent of the Purchaser. 
  

 - 32 - 

 Part 7 
  
 LAW AND JURISDICTION 
  

	33.	LAW 

  
 This Agreement shall be governed by, and construed in accordance with, English law. 
  

	34.	JURISDICTION 

  

	34.1	Each of the parties hereto irrevocably agrees for the benefit of each other party that the courts of England shall have jurisdiction to hear and determine any suit, action or
proceeding, and to settle any disputes, which may arise out of or in connection with the Relevant Documents and, for such purposes, irrevocably submits to the jurisdiction of such courts. 

  

	34.2	Each party hereto irrevocably waives any objection which it might now or hereafter have to the courts referred to in Clause 34.1 being nominated as the forum to hear and determine
any suit, action or proceeding, and to settle any disputes, which may arise out of or in connection with any Relevant Document and agrees not to claim that any such court is not a convenient or appropriate forum. 

  

	34.3	The submission to the jurisdiction of the courts referred to in Clause 34.1 shall not (and shall not be construed so as to) limit the right of any person to take proceedings against
any other party hereto in any other court of competent jurisdiction nor shall the taking of proceedings in any one or more jurisdictions preclude the taking of proceedings in any other jurisdiction, whether concurrently or not if and to the extent
permitted by applicable law. 

  

	34.4	Each of the parties hereto which is not incorporated in England irrevocably appoints the person specified against its name below and the address under its name to accept service of
any process on its behalf and further undertakes to the other parties hereto that it will at all times during the continuance of this Agreement maintain the appointment of some person in England as its agent for the service of process and
irrevocably agrees that service of any writ, notice or other document for the purposes of any suit, action or proceeding in the courts of England shall be duly served upon it if delivered or sent by registered post to the address of such appointee
(or to such other address in England as that party may notify to the other parties hereto) Provided that the Administrator and the Purchaser have each appointed [process agent] (attention: legal department) to act as such process agent for the
purposes hereof. 

  

	35.	CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999 

  
 A Person who is not a party to this Agreement has no right under the Contract (Rights of Third Parties) Act 1999 to enforce any term of this Agreement.

  
 IN WITNESS WHEREOF, this Agreement has been entered into by the parties
hereto acting by their authorised signatories on the date first written above. 
  

 - 33 - 

 THE FIRST SCHEDULE 
  
 Eligible Obligors 
  
 “Eligible Obligors” are Obligors which: 
  

	1.	are customers of the Originator granted credit in accordance with the Originator’s normal procedures and are or are to be billed by or on behalf of such Originator on regular
invoices; 

  

	2.	at the time of the sale of the Receivables to the Purchaser are not in liquidation, administration or receivership (or analogous proceedings) under the laws of the jurisdiction of
their incorporation; and 

  

	3.	are according to the address specified in the related invoice resident in the United Kingdom. 

  

 - 34 - 

 THE SECOND SCHEDULE 
  
 Eligible Receivables 
  
 “Eligible Receivables” are Receivables which, at the time of sale: 
  

	1.	can be segregated and identified for ownership purposes on any day after the date of sale pursuant to an Offer; 

  

	2.	arise from the sale of goods or supply of services by the Originator in its ordinary course of business to an Eligible Obligor; 

  

	3.	are not Receivables as to which any payment, or part thereof, remains unpaid for more than sixty (60) days from the due date for such Receivable; 

  

	4.	are debts the rights in which can be transferred by way of assignment to the Purchaser pursuant to an Offer; 

  

	5.	(a) are free and clear of any fixed charges at the time of any Offer made in respect of such Receivables and will be free and clear of any encumbrances in each case exercisable
against the Originator or the Purchaser (except, pursuant to the Contribution Agreement or any Permitted Lien) if such Offer is accepted in the manner contemplated in this Agreement and (b) are evidenced by an invoice; 

  

	6.	are not subject to withholding taxes; 

  

	7.	have been originated in accordance with the Credit and Collection Policies; 

  

	8.	are such that the provision of goods or rendering of the services giving rise thereto have been completed and invoiced, have not been cancelled or rejected by the related Eligible
Obligor and the invoice provides for full payment; 

  

	9.	have been created in compliance with all applicable laws in all applicable jurisdictions (and in respect of which the Consumer Credit Act 1974 does not apply to all or any part
thereof and none of the Records constitutes “personal data” as defined in the Data Protection Act 1990) and all required consents, approvals and authorisations have been obtained in respect thereof; 

  

	10.	have a due date not more than 90 days from the related invoice date; 

  

	11.	are governed by the Originator’s agreed form standard terms and conditions of dealing such that the Receivable constitute an unconditional and irrevocable obligation of the
Obligor to pay the full sum stated; 

  

	12.	are non-interest bearing trade receivables arising in the Originator’s ordinary course of business; 

  

	13.	are denominated in an Approved Currency; 

  

	14.	have not been amended, rewritten or otherwise modified and constitute legal, valid, binding and enforceable obligations of Eligible Obligors to pay the full face amount of the
Receivables subject only to (a) applicable bankruptcy, insolvency, reorganisation, moratorium or other similar laws affecting the rights of creditors generally and (b) the effect of general principles of equity and are not subject to any defence,
dispute, set-off or counterclaim; 

  

 - 35 - 

	15.	have not been, in part or in whole, pledged, assigned, discounted, subrogated or seized or attached or transferred in any way and are otherwise free and clear of any liens or other
encumbrances exercisable against the Originator or the Purchaser by any party (including any subsidiary of the Originator); 

  

	16.	(in relation to any Receivables the subject of an offer made on a date falling 28 days or more after the date hereof) the Obligor of which has been directed to make all payments to
an Originator Collection Account; and 

  

	17.	arise under a Contract governed by English law (to the extent that the governing law is specified). 

  

 - 36 - 

 THE THIRD SCHEDULE 
  
 Originator Daily Report 
  
 [PRO-FORMA TO BE INSERTED] 
  
 Date of Report: 
  
 Report Period from: 
  
 to: 
  

 - 37 - 

 THE FOURTH SCHEDULE 
  
 Originator Termination Events 
  

	1.	The Originator shall fail to pay any amount due hereunder in accordance with the provisions hereof and such failure shall continue unremedied for a period of two (2) consecutive
Local Business Days from the earlier to occur of (i) the date upon which a Responsible Officer of the Originator obtains actual knowledge of such failure or (ii) the date on which written notice of such failure, requiring the same to be remedied,
shall have been given to the Originator by the Purchaser provided that if the failure to make any payment or deposit is caused solely by the failure of the banking money transmission system through which a payment or deposit was effected,
such failure shall continue unremedied for a period of five (5) Business Days from the earlier to occur of (i) or (ii) above; or 

  

	2.	The Originator shall fail to observe or perform any covenant contained in Clauses 22.1(x)(b), 22.2(i), 22.2(iv), 22.2(vii) and 22.2(viii) and such failure shall continue unremedied
for a period of two (2) consecutive Local Business Days after the earlier to occur of (i) the date upon which a Responsible Officer of the Originator obtains actual knowledge of such failure or (ii) the date on which written notice of such failure,
requiring the same to be remedied, shall have been given to the Originator by the Purchaser; or 

  

	3.	The Originator shall fail to observe or perform any other covenant or agreement applicable to it contained herein (other than as specified in paragraph 1 or 2 of this Fourth
Schedule) that has a Material Adverse Effect with respect to it and that continues unremedied until thirty (30) days after the earlier to occur of (i) the date upon which a Responsible Officer of the Originator obtains actual knowledge of such
failure or (ii) the date on which written notice of such failure, requiring the same to be remedied shall have been given to the Originator by the Purchaser; or 

  

	4.	Any representation or warranty made by the Originator in this Agreement or in any certificate delivered pursuant to this Agreement shall prove to have been incorrect in any material
respect when made or deemed made, and which continues unremedied until thirty (30) days after the date on which written notice thereof, requiring the same to be remedied, shall have been given to the Originator by the Purchaser, provided that
if such incorrectness may be cured and the Originator is diligently pursuing such cure, such event shall not constitute an Originator Termination Event for an additional thirty (30) days, and provided further that an Originator Termination
Event shall not be deemed to have occurred under this paragraph 4 based upon a breach of any representation, warranty or covenant if the Originator shall have complied with the provisions of Clause 14 in respect thereof; or 

 

	5.	The Originator has been terminated as Sub-Collection Agent, and not replaced as Sub-Collection Agent by an affiliate of such Originator, following a Sub-Collection Agent Default
under this Agreement; or 

  

	6.	 (a) On the passing of a resolution of the members of the Originator in relation to voluntarily wind up the Originator; (b) on the presentation of a petition to
compulsorily wind up the Originator (provided that upon the Originator demonstrating to the Purchaser and the Administrative Agent’s reasonable satisfaction that such petition is frivolous or vexatious or that the petition is contested in good
faith the Purchaser will, 

  

 - 38 - 

	 	 
with the consent of the Administrative Agent, deliver a notice to the Originator with the effect that such event no longer constitutes an Originator
Termination Event; or (c) on the presentation of a petition for the making of an administration order in respect of the Originator (provided that upon the Originator demonstrating to the Purchaser and the Administrative Agent’s reasonable
satisfaction that such petition is frivolous or vexatious or that the petition is contested in good faith, the Purchaser will, with the consent of the Administrative Agent, deliver a notice to the Originator with the effect that such event no longer
constitutes an Originator Termination Event; or 

  

	7.	There shall have occurred any event or condition which has caused the Purchaser, for any reason, to cease to have a first priority ownership or security interest (or such equivalent
ownership or interest in any other jurisdiction) in the Receivables; or 

  

	8.	Failure of the Originator to pay when due any amounts due under any agreement to which the Originator is a party and under which any Indebtedness greater than $5,000,000 is
governed; or the default by the Originator in the performance of any term, provision or condition contained in any agreement to which the Originator is a party and under which any Indebtedness owing by the Originator greater than $5,000,000 was
created or is governed, the effect of which default is to cause, or to permit the holder or holders of such Indebtedness (or a trustee or agent on behalf of such holder or holders) to cause, such Indebtedness to become due prior to its stated
maturity; or any Indebtedness owing by the Originator greater than $5,000,000 shall be declared to be due and payable or required to be prepaid (other than by a regularly scheduled payment) prior to the date of maturity thereof; or

  

	9.	A Termination Date under the Contribution Agreement has occurred; or 

  

	10.	A Loan Termination Date under the Asset Backed Loan Agreement has occurred; or 

  

	11.	An Acceleration Notice is delivered under Clause 9.2 of the Credit Agreement. 

  

 - 39 - 

 THE FIFTH SCHEDULE 
  
 Part 1 
  
 Form of Offer Letter 
  

			
	 To:
	  	The Purchaser
		
	 From:
	  	The Originator
		
	 Dated:
	  	        [            ]

  
 Dear Sirs, 
  

	1.	We refer to the receivables purchase agreement (such receivables purchase agreement as from time to time amended, supplemented or novated being herein called the “UK
Receivables Purchase Agreement”) dated [         ] 2000 and made between (among others) ourselves and yourselves. 

  

	2.	Terms defined in the UK Receivables Purchase Agreement shall bear the same meaning herein. 

  

	3.	We hereby offer you an assignment on [date] of certain Receivables (the “Available Receivables”) at a Purchase Price calculated in accordance with Clause 6.1
of the UK Receivables Purchase Agreement and notify you that the aggregate of the Outstanding Face Amounts of the Available Receivables is are [specify]. and the Outstanding Face Amounts of the Available Receivables in each Approved Currency
are [specify]. A list of, and the Daily Report relating to, the Receivables offered to you by us in accordance with Clause 2.2 of the UK Receivables Purchase Agreement are attached hereto. 

  

	4.	We hereby warrant that each of the representations and warranties referred to in Clause 19 of the UK Receivables Purchase Agreement is true on and as of the date hereof in respect
of each Available Receivable save as specified in connection therewith in the attached list. 

  
 Yours faithfully, 
  
 for and 
 on behalf of 
 [Originator] 
  

 - 40 - 

 Part 2A 
  
 Solvency Certificate 
  
 on letterhead of the Originator 
  
 Memec LLC 
 [address] 
  
 dated
                                 
  
 SALE OF RECEIVABLES ORIGINATED BY 
 THE ORIGINATOR 
  
 I [    ] having duly considered the financial position and forecast for Memec UK Ltd (the “Company”), and all the documents produced
thereto, determine that as at the date hereof: 
  

	1.	the aggregate of the Company’s assets as stated in its accounting records exceeded the aggregate of its liabilities as so stated and to the best of my knowledge and belief the
Company will be able to pay its debts as they fall due during the year from [•]. 

  

	2.	no order had been made or resolution passed for the winding-up of the Company which had been notified to the Company and, to the best of my knowledge and belief:

  

	 	(v)	no petition had been presented for the winding-up of the Company or for the making of an administration order in respect of the Company; and 

  

	 	(vi)	no receiver, administrative receiver, administrator or receiver and manager had been appointed in relation to the Company, 

  
 disregarding proceedings which are not being pursued or are discharged or
are being contested in good faith on proper grounds where not more than thirty (30) days have expired since their commencement or which are of a frivolous or vexatious nature; 
  

	3.	to the best of my knowledge and belief the sale of the Receivables to the Purchaser and all matters concerning the Company in connection with such matters would, to the extent to
which these were to be carried out by the Company, be effected by the Company in good faith and in connection with its business, and in my opinion there were reasonable grounds for believing that the sale of the Receivables and all related matters
would benefit the Company; and 

  

	4.	in submitting Offers the Company has not to the best of my knowledge and belief been influenced by a desire to prefer the Purchaser as a creditor over any other creditors of the
Company. 

  
 Words and expressions defined in the UK Receivables
Purchase Agreement shall, unless the context otherwise requires, bear the same meanings when used herein. 
  
 This certificate is given by me on behalf of the Company. 
  

	
	
	  
	

	 Director or other duly authorised officer

  
  

 - 41 - 

 Part 2B 
  
 Solvency Certificate 
  
 on letterhead of the Originator 
  
 Memec LLC 
 [address] 
  
 dated
                                 
  
 SALE OF RECEIVABLES ORIGINATED BY 
 THE ORIGINATOR 
  
 I [    ] having duly considered the provisions of Sections 123 and 238 to 241 of the Insolvency Act 1986, and all documents produced thereto,
determine that as at the date hereof: 
  

	1.	to the best of my knowledge and belief (based upon due enquiry) [·] (the
“Company”) was then able to pay its debts within the meaning of the said Section 123 and would not become unable to do so in consequence of the periodic sale of the Receivables during the month following this certificate pursuant to
the terms of the UK Receivables Purchase Agreement entered into between the Company, Memec LLC (the “Purchaser”), the Funding Agents and the Administrative Agent; 

  

	2.	no order had been made or resolution passed for the winding-up of the Company which had been notified to the Company and, to the best of my knowledge and belief:

  

	 	(i)	no petition had been presented for the winding-up of the Company or for the making of an administration order in respect of the Company; and 

  

	 	(ii)	no receiver, administrative receiver, administrator or receiver and manager had been appointed in relation to the Company, 

  
 disregarding proceedings which are not being pursued or are discharged or
are being contested in good faith on proper grounds where not more than thirty (30) days have expired since their commencement or which are of a frivolous or vexatious nature; 
  

	3.	to the best of my knowledge and belief the sale of the Receivables to the Purchaser and all matters concerning the Company in connection with such matters would, to the extent to
which these were to be carried out by the Company, be effected by the Company in good faith and in connection with its business, and in my opinion there were reasonable grounds for believing that the sale of the Receivables and all related matters
would benefit the Company; and 

  

	4.	in submitting Offers the Company has not to the best of my knowledge and belief been influenced by a desire to prefer the Purchaser as a creditor over any other creditors of the
Company. 

  
 Words and expressions defined in the UK Receivables
Purchase Agreement shall, unless the context otherwise requires, bear the same meanings when used herein. 
  
 This certificate is given by me on behalf of the Company. 
  

	
	
	  
	

	 Director or other duly authorised officer

  

 - 42 - 

 THE SIXTH SCHEDULE 
  
 Part 1 
  
 Representations as to Matters of Law 
  

	1.	It is a corporation duly organised under the laws of England with power to enter into this Agreement and the other Relevant Documents and each assignment to be entered into by it in
respect of any Receivables assigned or to be assigned pursuant hereto and to exercise its rights and perform its obligations hereunder and thereunder and all corporate and other action required to authorise its execution of this Agreement and the
other Relevant Documents and its making of each such assignment and its performance of its obligations hereunder and thereunder has been duly taken. 

  

	2.	Under the laws of England in force as at the date of making this representation, the claims of the Purchaser against it under this Agreement will rank at least pari passu
with the claims of all its other unsecured creditors save those whose claims are preferred solely by any bankruptcy, insolvency or other similar laws of general application. 

  

	3.	In any proceedings taken in England in relation to this Agreement or any such assignment, it will not be entitled to claim for itself or any of its assets immunity from suit,
execution, attachment or other legal process. 

  

	4.	In any proceedings taken in England in relation to this Agreement or any such assignment, the choice of English law as the governing law of this Agreement or, as the case may be,
such assignment, will be recognised and upheld. 

  

	5.	All acts, conditions and things required to be done, fulfilled and performed by it in order (a) to enable it lawfully to enter into, exercise its rights under and perform and comply
with the obligations expressed to be assumed by it in this Agreement or in any assignment effected pursuant to and in accordance with the provisions hereof, (b) to ensure that the obligations expressed to be assumed by it in this Agreement or in any
such assignment are legal, valid and binding on it and (c) to make this Agreement and each such assignment admissible in evidence in England have been done, fulfilled and performed. 

  

	6.	Under the laws of England in force as at the date of making this representation, it is not necessary that this Agreement or any assignment resulting from the acceptance of an Offer
in the manner contemplated in this Agreement be filed, recorded or enrolled with any court or other authority in England or that any stamp, registration or similar tax in England be paid on or in relation to this Agreement or any such assignment.

  

	7.	The obligations expressed to be assumed by it in this Agreement and in each such assignment are legal and valid obligations binding on it subject to insolvency, moratorium or other
similar laws affecting creditors’ rights generally and to principles of equity. 

  

 - 43 - 

 Part 2 
  
 Representations as to Matters of Fact 
  

	1.	It has not taken any corporate action nor (to the best of its knowledge and belief) have legal proceedings been started against it for its winding-up, dissolution, administration or
re-organisation or for the appointment of a receiver, administrator, administrative receiver, trustee, liquidator, sequestrator or similar officer of it or of any or all of its assets or revenues disregarding (i) proceedings which are frivolous and
vexations or are not being pursued or are discharged or are being contested in good faith on proper grounds where less than sixty days have expired since their commencement; and (ii) solvent proceedings for re-organisations, amalgamations or
reconstructions so long as all documents are novated satisfactorily and the net worth of its successor to be liable to perform its obligations pursuant hereto, or the guarantor thereof, is not less than its net worth. 

  

	2.	No action or administrative proceeding of or before any court or agency has been started or (to its knowledge) formally threatened against it (and not withdrawn or discontinued)
which is reasonably likely to, if it were adversely determined, have a Material Adverse Effect (except for any such which has been disclosed in writing to the Purchaser and accepted by it in writing). 

  

	3.	It is not a party to any agreement or instrument or subject to any corporate restriction that has resulted or could reasonably be expected to result in a Material Adverse Effect
with respect to it. 

  

	4.	It is not in default in any manner under any provision of any Contractual Obligation, where such default could reasonably be expected to result in a Material Adverse Effect with
respect to it. 

  

	5.	The Original Financial Statements referred to in Clause 21.1 were prepared in accordance with accounting principles generally accepted in the United Kingdom and consistently applied
and give (in conjunction with the notes thereto) a true and fair view of its financial condition at the date as of which they were prepared and the results of its operations during the financial year then ended. 

  

 - 44 - 

 Part 3 
  
 Representations relating to Receivables 
  

	1.	Each Receivable the subject of such Offer (other than any Receivables specified in the relevant Offer Letter as not being Eligible Receivables) is an Eligible Receivable owing by an
Eligible Obligor, and in the amount, specified in such Offer. 

  

	2.	The assignment of each Receivable the subject of such Offer in the manner herein contemplated will be effective to pass to the Purchaser full and unencumbered title thereto in
equity and no further act, condition or thing will be required to be done in connection therewith to enable the Purchaser to require payment of any such Receivable or the enforcement of any such right in the courts of England and Wales, other than
in the case of proceedings in the courts of England and Wales, the joining of it as party, and in addition to the preceding provisions of this paragraph the execution of a written assignment and giving of a Notice of Assignment will be effective to
pass to the Purchaser full and unencumbered legal title to such Receivable. 

  

	3.	The assignment of each Receivable the subject of such Offer as herein contemplated will not violate any law or any agreement by which Originator may be bound.

  

	4.	The amount of the Receivables specified in the Offer Letter pursuant to Clause 3.2 is net of any discount or other trade credit which may have been given, or agreed to be given, in
respect thereof and any crystallised right of set-off as specified in the Offer in accordance with Clause 3.2. 

  

	5.	In all material respects it has performed and is in compliance with the terms of the contract relating to each Receivable the subject of an Offer. 

  

	6.	The governing law of the Receivables the subject of such Offer is English Law. 

  

 - 45 - 

 THE SEVENTH SCHEDULE 
  
 Auditors’ Report on Directors’ Solvency Certificate 
  
 on letterhead of the independent registered public accounting firm of the
Originator 
  
 [Memec LLC] 
  
 [address] 
  
 REPORT IN CONNECTION WITH THE SALE OF TRADE RECEIVABLES BY ORIGINATOR TO MEMEC LLC 
  
 This letter has been prepared in accordance with the terms of our engagement letter dated
[date] and a Board Memorandum prepared by the Company. 
  
 In accordance
with Clause 22.1(vii) of the UK Receivables Purchase Agreement for the sale of trade receivables by the Company to the Purchaser (the “Agreement”), the directors of the Company have prepared a solvency declaration (the
“declaration”), a copy of which is attached to this letter. 
  
 We have enquired into the state of the Company’s affairs in order to review the bases for the declaration set out in section 1 of the declaration. Based on the results of those procedures, nothing has come to our attention to indicate
that the opinion expressed by the directors in section 1 of their declaration is unreasonable in all the circumstances. 
  
 Our review and our report is limited to section 1 of the declaration and accordingly specifically excludes any other part of the declaration. We have not considered the
Company’s statements in parts 2 to 4 of the attached declaration. Our review did not constitute an audit in accordance with generally accepted auditing standards. 
  
 This letter is addressed to the addressees and is solely for their use for the purpose specified in our engagement letter. Our letter may
not be provided to any other party. We will not accept any responsibility or liability to any other party to whom our letter is shown or into whose hands it may come. 
  
 DATED this [  ] day of [  ]. 
  

	
	Signed by
	
	 [Name of Auditors]
  

	

	 Att: declaration [Fifth Schedule Part 2A]1

  

	1	The Auditor’s Report will only relate to the declaration in the form of Part 2A of the Fifth Schedule, as the declaration in the form of Part 2B is a
declaration as to the expectation for the future. 

  

 - 46 - 

 THE EIGHTH SCHEDULE 
  
 Part 1 
  
 Originator Compliance Certificate: Audited Financial Information 
  

	To:	Memec LLC as the Purchaser 

  
 Audited Financial Information of the Originator 
  
 We refer to Clause 21.2 (i) and (ii) of the UK Receivables Purchase Agreement, and certify in respect of our own financial statements (attached) that: 
  

	(a)	they have been prepared in accordance with accounting principles generally accepted in the United Kingdom and consistently applied (except for changes disclosed herein);

  

	(b)	they give a true and fair view of each of our company’s financial condition as at [ ] and of the results of our individual operations during the period referred to in such
financial statements; and 

  

	(c)	as at the date of this Certificate, no Potential Originator Termination Event or Originator Termination Event exists (except as disclosed herein). 

  

	
	 Signed by on behalf of [Originator]

	
	  
	

	 Director or other duly authorised officer

  

 - 47 - 

 Part 2 
  
 Originator Compliance Certificate: Unaudited Financial Information 
  

	To:	Memec LLC (as the Purchaser) 

  
 Unaudited Financial Information of the Originator 
  
 We refer to Clause 21.2 (iii) and (iv) of the UK Receivables Purchase Agreement, and certify in respect of our own management report (attached) that, based on the information available at the time of this management
report, it gives a true and fair view of our company’s financial conditions in all material respects as at the end of the period [  ] and of the results of our individual operations during the period referred to in such management
report. 
  

	
	 Signed by on behalf of [Originator]

	
	  
	

	 Director or other duly authorised officer

  

 - 48 - 

 THE NINTH SCHEDULE 
  
 Form of Accession Undertaking 
  

	To:	Memec LLC (as Purchaser) 

  
 From: [Name of Company] 
  
 We [Name of
Company] refer to a UK Receivables Purchase Agreement dated [            ] and originally made between (1) Memec UK Ltd as Originator and Sub-Collection Agent, (2) Memec LLC as
Purchaser and Collection Agent, (3) Barclays Bank plc as Sheffield Funding Agent and (4) The Chase Manhattan Bank as PARCO Funding Agent and as Administrative Agent (the “UK Receivables Purchase Agreement”). Terms defined in the UK
Receivables Purchase Agreement shall have the same meaning when used herein. 
  

	1.	We hereby confirm that, simultaneously with our delivery of this Accession Undertaking and the attached Accession Legal Opinion, we will accede to the terms and conditions of the UK
Receivables Purchase Agreement and accordingly agree to be bound by the terms thereof. 

  

	2.	We acknowledge and agree that upon and by reason of our delivering this Accession Undertaking and the attached Accession Legal Opinion to the Purchaser and the Administrative Agent,
we will thereby forthwith become a party to the UK Receivables Purchase Agreement as an Originator and, accordingly, shall have liabilities and obligations thereunder identical to those expressed to be assumed by an Originator thereunder and shall
be entitled to the rights and benefits of an Originator thereunder. 

  

	3.	Our facsimile number, telex number and address for the purpose of receiving communications under the UK Receivables Purchase Agreement are as follows: 

  
 Address: 
  
 Facsimile No: 
  
 Telex No: 
  

	4.	This Accession Undertaking shall be governed by, and construed in accordance with, English law. 

  
 IN WITNESS whereof this Accession Undertaking has been executed in [•] as a deed by the parties hereto and is intended to be and
is hereby delivered on the date first before written. 
  
 Dated this
[  ] day of [  ] 
  

	
	 Signed by on behalf of the Company

	
	  
	

	 Director or other duly authorised officer

  

 - 49 - 

 THE TENTH SCHEDULE 
  
 Accession Legal Opinion 
  
 To: 
  
 Memec LLC 
 (as Purchaser) 
  
 [Date] 
  
 Dear Sirs 
  
 I am legal counsel or the legally
trained company secretary to [Name of Company] (the “Company”). I am giving this opinion in respect of the Company executing an accession undertaking in order to become party to the UK Receivables Purchase Agreement (as
defined in the Schedule hereto). 
  
 For the purposes of this opinion, I have
examined the documents listed and (where appropriate) defined in the Schedule to this letter and such further documents as I have considered necessary or appropriate for the preparation of this opinion. Definitions and expressions defined in the
Schedule shall, unless otherwise defined herein, have the same meaning in this letter. 
  
 References to “Documents” are references to the documents listed in Part 1 of the Schedule hereto. 
  
 In my opinion, having regard to the laws of England: 
  

	1.	the Company is a company duly incorporated in England and Wales with limited liability under the Companies Act 1985; 

  

	2.	the Company has the power, authority and legal right to execute and deliver the Documents to which it is a party and to perform its obligations thereunder and has taken all
necessary actions to authorise such execution, delivery and performance; and 

  

	3.	the execution, delivery and performance by the Company of each of the Documents to which it is a party does not and will not conflict with any provision of its memorandum and
articles of association or any other agreement by which the Company is bound. 

  
 This opinion speaks as of its date and is addressed to and is only for the benefit of the persons set out above. It may not be relied upon by any other person and, without my prior written consent, may not be
transmitted or disclosed to any other person. 
  
 Yours faithfully 
  
 [Name of Solicitor/Company Secretary] 
  
 [Title] 
  

 - 50 - 

 THE ELEVENTH SCHEDULE 
  
 Signing and Closing List of Documents 
  

	(a)	A certified copy of the resolutions of the board of directors (or analogous body) of the Originator approving this Agreement and the other documents to be delivered by it and the
transactions contemplated in the Relevant Documents and this Agreement. 

  

	(b)	Certified copies of the Memorandum and Articles of Association of the Originator. 

  

	(c)	A certificate of an appropriate officer of the Originator, certifying the names and true signatures of the officers authorised on its behalf to sign or, as appropriate, witness the
sealing of this Agreement, and the other documents to be delivered by it (as applicable) (on which certificate the Purchaser may conclusively rely until such time as the Purchaser receives from the Originator a revised certificate meeting these
requirements). 

  

	(d)	A favourable opinion of Clifford Chance Limited Liability Partnership, English legal advisers to the Originator as to the true sale of Receivables and the due incorporation and
capacity of the Originator and legal validity of this Agreement and the other relevant matters, in such form as the Purchaser and the Administrative Agent may reasonably require. 

  

	(e)	The Servicing Fee Letter executed by the parties thereto. 

  

	(f)	Execution of the Relevant Documents by the appropriate parties thereto. 

  

	(g)	Preparation of the written Credit and Collection Policies by the Originator, in form and substance satisfactory to the Purchaser and the Administrative Agent.

  

	(h)	Evidence that the Purchaser shall have funds available to purchase the Receivables. 

  

	(i)	The Declaration of Trust substantially in the form of the Fourteenth Schedule executed by the Originator as evidence that the Originator Collection Accounts are open and existing in
the name of the Borrower, designated “[·]”. 

  

	(j)	The Security Power of Attorney substantially in the form of the Thirteenth Schedule in favour of the Purchaser executed by the Originator. 

  

 - 51 - 

 THE TWELFTH SCHEDULE 
  
 List of Existing Accounts 
  

 - 52 - 

 THE THIRTEENTH SCHEDULE 
  
 Form of Security Power of Attorney 
  
 THIS POWER OF ATTORNEY is made on the [·] 2000 by MEMEC UK LTD (defined as the “Originator” herein) in favour of MEMEC LLC, a company whose registered office is at [            ] acting in
its capacity as Purchaser (the “Purchaser”, and as the “Attorney”). 
  
 WHEREAS 
  

	(A)	Pursuant to a UK Receivables Purchase Agreement (the “UKRPA”) dated on or about [    ] 2000 made by and between the Originator, the Purchaser
and others, the Originator (as referred to therein) will from time to time offer to sell to the Purchaser certain receivables evidenced by invoices rendered by the Originator (the “Receivables”) and the Purchaser may accept an
assignment of all Receivables for its benefit. 

  

	(B)	Receivables and Collections so acquired and not subsequently reacquired by the Originator or collected in full are referred to herein as the “Purchased
Receivables”. 

  

	(C)	Under the UKRPA, the Originator has been appointed by the Purchaser as its Sub-Collection Agent under the UKRPA. 

  

	(D)	Terms not defined herein shall have the meaning ascribed to such terms in the UKRPA. 

  
 NOW, THEREFORE, the parties agree as follows: 
  

	1.	THE ORIGINATOR HEREBY APPOINTS the Attorney in respect of the Contracts and their related Collections, or the assets subject to the trusts declared by it and referred to it above,
to be its true and lawful attorney for it and in its name to do any of the following acts, deeds and things or any of them as may be within the power of the Originator: 

  

	 	(a)	to exercise its rights, powers and discretions in respect of Purchased Receivables, Collections and in respect of any other related rights (such related benefit and other rights
being the “Ancillary Rights”); 

  

	 	(b)	to exercise all the rights, powers, remedies and discretions exercisable by the Originator by reason of the Originator remaining for the time being legal owner of Purchased
Receivables or the Ancillary Rights; 

  

	 	(c)	to execute, sign, seal and deliver any document and to do any other act or thing which it may deem to be necessary in order to protect the interests of the Purchaser, proper or
expedient for fully and effectually vesting or transferring Purchased Receivables sold by it and the Ancillary Rights in or to the Purchaser or the Purchaser’s assigns hereunder (if applicable) or its successors in title or other person or
persons entitled to the benefit thereof (as the case may require) pursuant to and in accordance with the UKRPA; 

  

	 	(d)	to demand, sue for and receive all moneys due or payable under or in respect of Purchased Receivables sold by it and the Ancillary Rights and pay such moneys to the persons to whom
such moneys are required to be paid under the UKRPA; 

  

 - 53 - 

	 	(e)	upon receipt of such moneys as referred to in Clause 1(d) above or of any part thereof to give to the payer thereof good receipts and discharges for the same and to execute such
receipts, releases, re-assignments, re-transfers, instruments and deeds as may be requisite or advisable; 

  

	 	(f)	to redirect mail and endorse drafts, cheques and other payment media, to perform any agreement or obligation of the Originator under or in connection with the UKRPA and to exercise
all other remedies of the Originator under the UKRPA or existing at law; and 

  

	 	(g)	from time to time to substitute and appoint severally one or more attorneys (the “Substitute Attorneys”) for all or any of the purposes aforesaid (including the
power to authorise any person so appointed to make further appointments). 

  

	2.	The Originator hereby agrees at all times hereafter to ratify and confirm any act, matter or deed whatsoever the Attorney or any Substitute Attorney shall lawfully do or cause to be
done under or pursuant to this Power of Attorney to the extent that such act or acts and execution are within the power of the Originator and within the contemplation of this Power of Attorney and the Originator shall indemnify the Attorney or any
Substitute Attorney in respect of any loss, claim, cost, expense or liability in connection with this Power of Attorney save to the extent that the same arises out of their negligence, wilful default or bad faith. In furtherance of the power herein
granted, the Originator agrees that it will assist and co-operate with the Purchaser and provide such facilities as the Purchaser may reasonably request. 

  

	3.	The Originator declares that this Power of Attorney has been given for security purposes and to secure continuing obligations of the Originator under the UKRPA and the
above-mentioned assignments and trust arrangements, and the powers hereby created shall be irrevocable and will extend to and be binding upon the successors and assigns of the Originator, and the bankruptcy, liquidation, receivership, the making of
an administration order or appointment of an administrative receiver or any other equivalent event of or affecting the Originator shall not affect the Powers of Attorney granted by any of the other Originators. 

  

	4.	The laws of England shall apply to this Power of Attorney and the interpretation thereof and to all acts of the Attorney or any Substitute Attorney carried out under the terms
hereof. 

  
 IN WITNESS whereof this Power of Attorney has
been executed on the day and year first above written. 
  

			
	 THE ORIGINATOR:
 MEMEC UK
LTD

		
	By:	 	 
	 	 	

	 Address:
	 	 

  

 - 54 - 

			
	 The Attorney:
 MEMEC
LLC

		
	By:	 	 
	 	 	

	 Address:
	 	 

  

 - 55 - 

 THE FOURTEENTH SCHEDULE 
  
 Form of Declaration of Trust 
  

THIS DECLARATION OF TRUST is made on
                        in [  ], England 
  
 BY 
  
 MEMEC UK LTD a company with its registered office at [  ] (the “Originator”) 
  
 WHEREAS 
  

	(A)	Pursuant to the UK Receivables Purchase Agreement dated [            ] 2000 (the “Agreement”) among,
inter alios, the Originator, Memec LLC as purchaser (the “Purchaser”) and others, it was agreed that the Originator may from time to time make offers pursuant to Offer Letters for the sale of certain Receivables and
Collections arising under Contracts entered into by it, such offers to be accepted in the manner specified in the Agreement. 

  

	(B)	The Originator is the legal and beneficial owner of certain Receivables and Collections arising under Contracts entered into by it. 

  

	(C)	Proceeds of Collections are, pending the opening of Originator Collection Accounts or redesignation of the Existing Accounts, in accordance with Clause 12 of the Agreement,
currently paid into Existing Accounts. 

  

	(D)	Pursuant to the terms of the Agreement, the Originator wishes to grant a trust over its legal and beneficial interest over the Collections paid into the Existing Accounts to be held
on trust by it for the benefit of the Purchaser in accordance with and subject to the terms of this Deed and the Agreement. 

  
 NOW THIS DEED WITNESSETH AS FOLLOWS: 
  
 Interpretation 
  

	1.1	The Schedule annexed hereto forms part of this Deed and shall have the same force and effect as if set out in the body of this Deed and any reference to this Deed shall include the
Schedule. 

  

	1.2	Defined terms and words and phrases of construction defined or construed in the Agreement shall have the same meaning where used in this Deed, unless the context otherwise requires.

  
 Declaration of Trust 
  

	2.1	The Originator hereby declares that it holds and shall hold from and including the date hereof all of the benefit of Collections relating to the Purchased Receivables and which are
paid into the Existing Accounts (the “Trust Property”) upon the trust contained herein for the benefit of the Purchaser and shall hold such Trust Property absolutely on trust in accordance with the Purchaser’s interest and
entitlement as provided in this Deed and the Agreement. 

  

	2.2	The Originator shall or shall procure that the Trust Property is held and applied in the manner set out in the Agreement including, without limitation, Clause 12 thereof.

  

 - 56 - 

 Duty to keep Records 
  

	3.	The Trustee shall maintain proper books of account in respect of its duties as trustee hereunder and shall maintain records of all Trust Property held by it in such capacity.

  
 Dissolution 
  

	4.	On the Termination Date or when all Originator Collection Accounts have been opened or all Existing Accounts have been redesignated in accordance with Clause 12 of the Agreement,
the Purchaser may direct by written notice to the Originator that this Trust may be dissolved. 

  
 Miscellaneous 
  

	5.	This Deed may only be varied by a Deed executed by the Originator and the Purchaser. 

  
 Governing Law 
  

	6.	This Deed shall be governed by and construed in accordance with English law. 

  

IN WITNESS whereof the Originator has duly executed this Deed on the day and year first before written 
  
 EXECUTED as a DEED 
 by MEMEC UK LTD 
 acting through its lawful attorney 
 in the presence of: 
  
 Witness: 
  
 Occupation: 
  
 Address: 
  
 Date: 
  

 - 57 - 

 EXECUTION PAGE 
  

			
	 For and on behalf of
 MEMEC UK LTD

		
	Name:	 	 
		
	Title:	 	 
	Address:	 	 

  

			
	 For and on behalf of
 MEMEC LLC

		
	Name:	 	 
		
	Title:	 	 
	Address:	 	 

  

			
	 For and on behalf of
 BARCLAYS BANK PLC

		
	Name:	 	 
		
	Title:	 	 
	Address:	 	 

  

			
	 For and on behalf of
 THE CHASE MANHATTAN BANK

		
	Name:	 	 
		
	Title:	 	 
	Address:	 	 

  

 - 58 -

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