Document:

Amendment No. 7 to Credit Agreement, dated as of April 20, 2009

 Exhibit 10.1 
 AMENDMENT NO. 7 TO CREDIT AGREEMENT 
 THIS AMENDMENT NO. 7 TO CREDIT AGREEMENT (this
“Amendment”), dated as of April 20, 2009, is by and among ESTERLINE TECHNOLOGIES CORPORATION, a Delaware corporation (the “Borrower”), the lenders identified on the signature pages hereto as the Existing
Lenders (the “Existing Lenders”), the lenders identified on the signature pages hereto as the New Lenders (the “New Lenders”, and together with the Existing Lenders, the “Lenders”), and WACHOVIA
BANK, NATIONAL ASSOCIATION, as Collateral Agent, Issuing Bank, Swingline Bank and Administrative Agent (in such capacities, the “Administrative Agent”). 
 WITNESSETH 
 WHEREAS, the Borrower, the Existing Lenders and the
Administrative Agent are parties to that certain Credit Agreement dated as of June 11, 2003 (as previously amended and as further amended, modified, supplemented or restated from time to time, the “Existing Credit Agreement”);

 WHEREAS, the Borrower has informed the Lenders that the Borrower intends to cause Esterline Technologies Limited (UK)
(“ETL”) to contribute (the “Weston Contribution”) the Equity Interests of Weston Aerospace Limited (“Weston”) to the capital of a newly formed Subsidiary of ETL (“Weston Holdco”);

 WHEREAS, the Borrower has requested certain amendments to the Credit Agreement and requested that the Required Lenders consent to
the consummation of the Weston Contribution; and 
 WHEREAS, the Lenders have agreed to such amendments and consented to the Weston
Contribution subject to the terms and conditions set forth herein. 
 NOW, THEREFORE, in consideration of the agreements hereinafter
set forth, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows: 
 PART 1 
 CERTAIN DEFINITIONS 
 1.1 Certain Definitions. Unless otherwise defined herein or the context otherwise requires, the following terms used in this Amendment,
including its preamble and recitals, have the following meanings: 
 “Amended Credit Agreement” means the
Existing Credit Agreement as amended hereby. 
 “Amendment No. 7 Effective Date” has the meaning
ascribed thereto in Section 4.1. 

 1.2 Other Definitions. Unless otherwise defined herein or the context otherwise requires,
terms used in this Amendment, including its preamble and recitals, have the meanings provided in the Amended Credit Agreement. 
 PART 2

 AMENDMENTS TO CREDIT AGREEMENT 
 2.1 Amendments to Credit Agreement. The Existing Credit Agreement is hereby amended in its entirety to read in the form attached to this Amendment as Exhibit A. The modifications to the Existing
Credit Agreement shall be effective as of the Amendment No. 7 Effective Date and shall apply from such date (and not retroactively) unless otherwise specifically set forth in the Amended Credit Agreement. 
 2.2 Schedules. The US Term Loan Commitments set forth on Schedule 1 to the Existing Credit Agreement are hereby amended and restated in
their entirety to reflect the US Term Loan Commitments set forth on Schedule I hereto. Schedule 4.01(x) attached to this Amendment shall replace the corresponding Schedule to the Existing Credit Agreement. All other Schedules and Exhibits to the
Existing Credit Agreement shall not be modified or otherwise affected. 
 PART 3 
 CONSENT 
 The Required Lenders hereby
consent, on a one-time basis, to the Weston Contribution and agree that the Weston Contribution will not be counted as usage of the baskets for Investments set forth in Sections 5.02(f)(i)(C) or Section 5.02(f)(ix) of the Credit Agreement;
provided, that no Default or Event of Default shall have occurred and be continuing after giving effect to the Weston Contribution and the consent set forth herein. The Required Lenders hereby consent to the release by the Administrative
Agent of the security interest of the Administrative Agent (for the benefit of the Lenders) in the Equity Interests of Weston upon consummation of the Weston Contribution; provided, that within thirty (30) days of such release (or such
longer time as agreed to by the Administrative Agent), 65% of the Equity Interests of Weston Holdco shall be pledged to the Administrative Agent for the benefit of the Lenders pursuant to the Security Documents. 
 The consent set forth in this Part 3 shall be effective only to the extent specifically set forth herein and shall not (a) be construed as a waiver
of any breach or default nor as a waiver of any breach or default of which the Lenders have not been informed by the Borrower, (b) affect the right of the Lenders to demand compliance by the Borrower and the other Loan Parties with all terms
and conditions of the Credit Agreement, except as specifically consented to pursuant to the terms hereof, (c) be deemed a waiver of any transaction or future action on the part of the Borrower or any other Loan Party requiring the Lenders’
or the Required Lenders’ consent or approval under the Credit Agreement, or (d) except as consented to and waived hereby, be deemed or construed to be a waiver or release of, or a limitation upon, the Administrative Agent’s or the
Lenders’ exercise of any rights or remedies under the Credit Agreement or any other Loan Document, whether arising as a consequence of any Event of Default which may now exist or otherwise, all such rights and remedies hereby being expressly
reserved. 
  

 2 

 PART 4 
 CONDITIONS TO EFFECTIVENESS 
 4.1 Closing Conditions. 
 This Amendment shall become effective as of the date hereof (the “Amendment No. 7 Effective Date”) upon satisfaction of the
following conditions (in form and substance reasonably acceptable to the Administrative Agent): 
 (a) Executed
Amendment. Receipt by the Administrative Agent of a copy of this Amendment duly executed by the Borrower and each of the Required Lenders and the New Lenders and acknowledged and agreed to by each Subsidiary Guarantor. 
 (b) Fees. The Administrative Agent shall have received all fees set forth in that certain Engagement Letter, dated March 17,
2009, from the Administrative Agent and Wachovia Capital Markets, LLC to the Borrower including, without limitation, all amendment fees and upfront fees payable to the Lenders hereunder. 
 (c) Legal Opinion. The Administrative Agent shall have received an opinion related to this Amendment (which shall cover, among
other things, absence of violation of law or regulation or conflicts with existing Material Contracts (including the 2007 Senior Notes and the Senior Subordinated Indenture) and enforceability), satisfactory to the Administrative Agent, addressed to
the Administrative Agent and the Lenders, from legal counsel to the Loan Parties. 
 (d) Officer’s Certificate.
The Administrative Agent shall have received a certificate or certificates executed by an officer of the Borrower as of the Amendment No. 7 Effective Date stating that (i) all consents and approvals of boards of directors, shareholders,
governmental authorities and other applicable third parties necessary in connection with this Amendment have been obtained and remain in full force; (ii) there exists no action, suit, proceeding or, to such officer’s knowledge,
investigation (whether previously existing, newly instituted or, to such officer’s knowledge, threatened) before, and no order, injunction or decree has been entered by, any court, arbitrator or governmental authority, in each case seeking to
enjoin, restrain, restrict, set aside or prohibit, to impose material conditions upon, or to obtain substantial damages in respect of, this Amendment or that could reasonably be expected to have a material adverse effect upon the financial
condition, operations, properties, assets, liabilities or business of the Borrower and its subsidiaries taken as a whole, or on the ability of any Loan Party and any of its subsidiaries to perform their respective obligations under or in connection
with this Amendment and the Loan Documents; and (iii) immediately after giving effect to this Amendment and all the transactions contemplated hereby to occur on the Amendment No. 7 Effective Date, (1) no Default or Event of Default
exists; (2) all representations and 

  

 3 

 
warranties contained herein and in the Loan Documents (as amended hereby) are true and correct in all material respects; (3) the Borrower is in
compliance with each of the financial covenants set forth in Section 5.04 of the Credit Agreement; (4) the Loan Parties, taken as a whole, are Solvent; and (5) the Leverage Ratio, measured as of the end of the Borrower’s fiscal
quarter ended January 30, 2009, will not exceed 2.50 to 1.00, including supporting calculations satisfactory to the Administrative Agent. 
 (e) Organizational Documents. The Administrative Agent shall have received: 
 (i)
Charter Documents. Copies of the articles of incorporation of the Borrower certified to be true and correct as of a recent date by the appropriate Governmental Authority of the state of Delaware and certified by a Responsible Officer of the
Borrower to be true and correct as of the Amendment No. 7 Effective Date. 
 (ii) Bylaws. A copy of the bylaws of
the Borrower certified by a Responsible Officer of the Borrower to be true and correct as of the Amendment No. 7 Effective Date. 
 (iii) Resolutions. Copies of (A) in the case of each Loan Party other than Leach International Mexico, S. de R.L. de C.V. (the “Mexican Loan Party”), resolutions of the Board of Directors
(or equivalent governing authority) of each of the Loan Parties approving and adopting this Amendment, the transactions contemplated herein and authorizing execution and delivery thereof, certified by a Responsible Officer (or equivalent with
authority) to be true and correct and in force and effect as of the Amendment No. 7 Effective Date and (B) in the case of the Mexican Loan Party, evidence (in form and substance satisfactory to the Administrative Agent) that the Mexican
Loan Party is authorized to execute the Amendment. 
 (iv) Good Standing. Copies of certificates of good standing,
existence or its equivalent with respect to (A) the Borrower certified as of a recent date by the appropriate Governmental Authorities of the state of incorporation and each other jurisdiction in which the failure to so qualify and be in good
standing could reasonably be expected to have a Material Adverse Effect and (B) each other domestic Loan Party (other than Amtech Automated Manufacturing Technology) certified as of a recent date by the appropriate Governmental Authorities of
the state of incorporation. 
 (v) Incumbency. An incumbency certificate of each Loan Party certified by a Responsible
Officer (or equivalent with authority) of such Loan Party to be true and correct as of the Amendment No. 7 Effective Date. 
  

 4 

 (f) No Change. Since October 31, 2008, there shall not have occurred any
matter, condition, event, circumstances, development or action that, individually or in the aggregate, has or could reasonably be expected to have an effect that is material and adverse to the business, assets, operations, financial results,
condition or results of operations of the Borrower and its Subsidiaries, taken as a whole. 
 (g) Litigation, etc.
There shall be no action, suit, proceeding or, to the Borrower’s knowledge, investigation (whether previously existing, newly instituted or, to the Borrower’s knowledge, threatened) before, and no order, injunction or decree shall have
been entered by, any court, arbitrator or governmental authority, in each case seeking to enjoin, restrain, restrict, set aside or prohibit, to impose material conditions upon, or to obtain substantial damages in respect of, this Amendment or that,
in the opinion of the Administrative Agent, could reasonably be expected to have a material adverse effect upon the financial condition, operations, properties, assets, liabilities or business of the Borrower and its subsidiaries taken as a whole,
or on the ability of any Loan Party and any of its subsidiaries to perform their respective obligations under or in connection with this Amendment and the Loan Documents. 
 (h) Expenses. The Administrative Agent shall have received all expenses of the Administrative Agent in connection with the
preparation, execution and delivery of this Amendment, including, without limitation, the fees and expenses of Moore & Van Allen PLLC for which an invoice has been presented to the Borrower. 
 (i) Promissory Notes. The Administrative Agent shall have received Notes executed by the Borrower in favor of each Lender that has
requested that its Advances be evidenced by a note, to the extent that such Lender is providing a new Commitment pursuant to this Amendment. 
 (j) Information. The Administrative Agent shall not have become aware of any material information or other matter that is inconsistent in a material and adverse manner with any previous due diligence,
information or matter (including any financial information and projections previously delivered to the Administrative Agent). 
 (k) Other. The Administrative Agent shall have received such other documents, agreements or information which it may reasonably request relating to the Loan Parties and the transactions contemplated by this Amendment and any other
matters relevant hereto or thereto, all in form and substance satisfactory to the Administrative Agent. 
 PART 5 
 ASSIGNMENTS AND ASSUMPTIONS 
 5.1 Joinder. Upon execution of this Amendment, each of the New Lenders shall be a party to the Amended Credit Agreement and have all of the rights and obligations of a Lender thereunder and under the other Loan
Documents. Each New Lender (a) represents and warrants that it is legally authorized to enter into this Amendment and this Amendment is the legal, valid and binding obligation of such New Lender, enforceable against it in accordance with its
terms; 

  

 5 

 
(b) confirms that it has received a copy of the Existing Credit Agreement, this Amendment and all of the Exhibits and Schedules thereto, together with copies
of the financial statements referred to in Section 4.01(g), (h) and (i) of the Existing Credit Agreement, the financial statements delivered pursuant to Section 5.03 thereof, if any, and such other documents and information as it
has deemed appropriate to make its own credit analysis and decision to enter into this Amendment; (c) agrees that it will, independently and without reliance upon the Existing Lenders, the Administrative Agent or any other Lender and based on
such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Amended Credit Agreement, the other Loan Documents or any other instrument or document
furnished pursuant hereto or thereto; and (d) agrees that it will be bound by the provisions of the Amended Credit Agreement and will perform in accordance with its terms all the obligations which by the terms of the Amended Credit Agreement
are required to be performed by it as a Lender. The Commitments of each New Lender after giving effect to this Amendment shall be as set forth on Schedule I to the Credit Agreement as amended hereby. 
 5.2 Loan Party Agreement. Each of the Loan Parties agrees that, as of the Amendment No. 7 Effective Date, each New Lender shall
(i) be a party to the Amended Credit Agreement and the other Loan Documents, (ii) be a “Lender” for all purposes of the Amended Credit Agreement and the other Loan Documents, and (iii) have the rights and obligations of a
Lender under the Amended Credit Agreement and the other Loan Documents. 
 5.3 Notices. The applicable address,
facsimile number and electronic mail address of each New Lender for purposes of Section 8.02 of the Amended Credit Agreement are as set forth in the administrative questionnaire delivered by each New Lender to the Administrative Agent on or
before the Amendment No. 7 Effective Date or to such other address, facsimile number and electronic mail address as shall be designated by any New Lender in a notice to the Administrative Agent. 
 PART 6 
 MISCELLANEOUS

 6.1 Amended Terms. All references to the Credit Agreement in each of the Loan Documents shall hereafter mean the
Credit Agreement as amended by this Amendment. Except as specifically amended hereby or otherwise agreed, the Credit Agreement is hereby ratified and confirmed and shall remain in full force and effect according to its terms. 
 6.2 Representations and Warranties. Each Loan Party represents and warrants as follows as of the date hereof: 
 (a) It has taken all necessary action to authorize the execution, delivery and performance of this Amendment. 
  

 6 

 (b) This Amendment has been duly executed and delivered by such Loan Party and
constitutes such Loan Party’s valid and legally binding obligations, enforceable in accordance with its terms, except as such enforceability may be subject to (i) bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer,
moratorium or similar laws affecting creditors’ rights generally and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding at law or in equity). 
 (c) No consent, approval, authorization or order of, or filing, registration or qualification with, any Governmental Authority or third
party is required in connection with the execution, delivery or performance by such Loan Party of this Amendment. 
 (d) The
representations and warranties set forth in Article IV of the Credit Agreement are true and correct in all material respects as of the date hereof (except for those which expressly relate to an earlier date). 
 (e) There have been no changes to the organization documents (including, as applicable, articles of incorporation, articles of formation,
bylaws, operating agreement or equivalent organizational documents) of any Subsidiary Guarantor since the Amendment No. 5 Effective Date, other than amendments that could not be reasonably expected to have a Material Adverse Effect or adversely
affect the rights and interests of the Lender Parties. 
 6.3 Loan Document. This Amendment shall constitute a Loan Document
under the terms of the Credit Agreement. 
 6.4 Entirety. This Amendment and the other Loan Documents embody the entire
agreement between the parties hereto and supersede all prior agreements and understandings, oral or written, if any, relating to the subject matter hereof. 
 6.5 Counterparts; Telecopy. This Amendment may be executed in any number of counterparts, each of which when so executed and delivered shall be an original, but all of which shall constitute one and the
same instrument. Delivery of an executed counterpart to this Amendment by telecopy shall be effective as an original and shall constitute a representation that an original will be delivered. 
 6.6 GOVERNING LAW. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK. 
 6.7 Consent to Jurisdiction; Waiver of Jury Trial. The
jurisdiction and waiver of jury trial provisions set forth in Sections 8.13 and 8.15 of the Credit Agreement are hereby incorporated by reference, mutatis mutandis. 
  

 7 

 6.8 Fees. The Borrower agrees to pay all fees and expenses of the Administrative Agent in
connection with the preparation, execution and delivery of this Amendment, including, without limitation, the fees and expenses of Moore & Van Allen PLLC. 
 6.9 Post-Closing Covenant. The Borrower hereby agrees to provide copies of certificates of good standing, existence or its equivalent with respect to Amtech Automated Manufacturing Technology
(“Amtech”), certified as of a recent date by the appropriate Governmental Authorities of the state of Utah, within ten (10) Business Days of the Amendment Effective Date (or such longer time as agreed to by the Administrative
Agent). The Borrower hereby agrees that Amtech shall have no material assets and shall conduct no material operations until a certificate of good standing, existence or its equivalent with respect to Amtech is delivered to the Administrative Agent
in accordance with the terms of this Section 6.9. 
 [remainder of page intentionally left blank] 
  

 8 

 IN WITNESS WHEREOF the Borrower, the Lenders, and the Administrative Agent have caused this Amendment to
be duly executed on the date first above written. 
  

									
	BORROWER:	 		 	ESTERLINE TECHNOLOGIES CORPORATION,
		 		 	a Delaware corporation
					
		 		 		 	By:	 	/s/ Robert D. George
		 		 		 	Name:	 	Robert D. George
		 		 		 	Title:	 	Vice President, Chief Financial Officer, Secretary and Treasurer

  
  
  
  

									
	 ADMINISTRATIVE AGENT,
 COLLATERAL AGENT,
 ISSUING BANK,
 SWINGLINE BANK AND
 EXISTING LENDER: 
	 		 	 WACHOVIA BANK,
 NATIONAL
ASSOCIATION,

					
		 		 		 	By:	 	 
		 		 		 	Name:	 	
		 		 		 	Title:	 	

									
	EXISTING LENDERS:	 		 	[LENDER]
					
		 		 		 	By:	 	 
		 		 		 	Name:	 	
		 		 		 	Title:	 	

									
	NEW LENDERS:	 		 	[LENDER]
					
		 		 		 	By:	 	 
		 		 		 	Name:	 	
		 		 		 	Title:	 	

 ACKNOWLEDGMENT AND CONSENT 
 The undersigned do hereby acknowledge and consent to the foregoing Amendment. The undersigned do hereby confirm and agree that, after giving effect to such Amendment, the Subsidiary Guaranty and each other Loan
Document to which each of the undersigned is a party is and shall continue to be in full force and effect and is hereby confirmed and ratified in all respects. 
  

			
	 ADVANCED INPUT DEVICES, INC.
 AMTECH
AUTOMATED MANUFACTURING
 TECHNOLOGY
 ANGUS ELECTRONICS
CO.
 ARMTEC COUNTERMEASURES CO.
 ARMTEC COUNTERMEASURES TNO CO.

 ARMTEC DEFENSE PRODUCTS CO.
 AVISTA, INCORPORATED
 BVR TECHNOLOGIES CO.
 CMC DATACOMM INC.
 CMC ELECTRONICS ACTON INC.
 CMC ELECTRONICS AURORA INC.
 EA TECHNOLOGIES CORPORATION
 ESTERLINE SENSORS SERVICES AMERICAS,
INC.
 (formerly known as Auxitrol Co.)
 EQUIPMENT SALES
CO.
 H.A. SALES CO.
 HAUSER, INC.
 HYTEK FINISHES CO.
 JANCO CORPORATION
 KIRKHILL-TA CO.
 KORRY ELECTRONICS CO.
 LEACH HOLDING CORPORATION
 LEACH INTERNATIONAL CORPORATION
 LEACH TECHNOLOGY GROUP, INC.
 MASON ELECTRIC CO.
 MC TECH CO.
 MEMTRON TECHNOLOGIES CO.
 NORWICH AERO PRODUCTS, INC.
 PALOMAR PRODUCTS, INC.
 PRESSURE SYSTEMS, INC.
 PRESSURE SYSTEMS INTERNATIONAL, INC.
 UMM ELECTRONICS INC.
 ESTERLINE CANADIAN HOLDING CORPORATION
 ESTERLINE INTERNATIONAL COMPANY
 NMC GROUP, INC.
 RACAL ACOUSTICS, INC.

		
	By:	 	/s/ Robert D. George
	Name:	 	Robert D. George
	Its:	 	Secretary

			
	ESTERLINE TECHNOLOGIES HOLDINGS LIMITED
		
	By:	 	/s/ Robert D. George
	Name:	 	Robert D. George
	Its:	 	Director
	
	ESTERLINE TECHNOLOGIES LIMITED
		
	By:	 	/s/ Robert D. George
		 	Robert D. George, Director
	
	 LEACH INTERNATIONAL MEXICO,
 S. DE
R.L. DE C.V.

		
	By:	 	 
	Name:	 	
	Its:	 	

  

 EXHIBIT A 
 AMENDED CREDIT AGREEMENT 

 SCHEDULE I 
 COMMITMENTS AND APPLICABLE LENDING OFFICES 
  

					
	 Name of Initial Lender
	  	US Term Loan
Commitment	  	 Lending
Office

	 Wachovia Bank, National Association
	  	$40,000,000.00	  	See Section 8.02 of Exhibit A
			
	 Wells Fargo Bank, N.A.
	  	$0	  	 999 3rd Avenue,

 11th Floor
 Seattle, WA 98199
Attn.: Russ Carson
tel.: (206) 292-3207
fax.: (206) 343-6626

			
	 The Bank of New York Mellon
	  	$0	  	 One Wall St., 22nd Floor
New York, NY 10005
Attn.: Dawn Hertling
tel.: (212) 635-6742
 fax: (212) 635-6399

			
	 KeyBank National Association
	  	$0	  	127 Public Square
Cleveland, Ohio 44114
Attn.: Frank Jancar
tel.: (216) 689-0571
fax.: (216) 689-0511
			
	 Bank of America, N.A.
	  	$28,000,000.00	  	 333 South Hope Street,
 Mail Code: CA9-193-28-05
 Los Angeles, CA 90071
 Attn: Mathew Griesbach
 tel.: (213) 621-8737
 fax.: (213) 621-8793

					
	 U.S. Bank National Association
	  	$15,000,000.00	  	 1420 Fifth Avenue, 10th Floor
Seattle, Washington 98101
Attn.: David M. Purcell
 tel.: (206) 344-3643
fax.: (206) 344-3654

			
	 Calyon New York Branch
	  	$0	  	 1301 Avenue of the Americas
 New York, NY 10019
 Attn: Yuri Muzichenko
 tel: (212) 261-7311
 fax: (212) 459-3179

			
	 BMO Capital Markets Financing, Inc.
	  	$0	  	 111 West Monroe Street, 10th Floor
 Chicago, IL 60603
 Attn: Pauline Christopher
 tel: (312) 461-7009
 fax: (312) 461-5225

			
	 HSBC Bank USA, N.A.
	  	$0	  	 600 University Street, Suite 2323
 Seattle, WA 98101
 Attn: Leslie T. Chang
 tel: (206) 233-8792
 fax: (206) 233-0808

			
	 The Bank of Nova Scotia
	  	$0	  	 580 California Street,
 Suite 2100
 San Francisco, CA 94101
 Attn: Mark Sparrow
 tel: (415) 986-1100
 fax: (415) 397-0791

					
			
	 Societe Generale
	  	$0	  	 181 West Madison Street
 Chicago, IL 60602
 Attn: Thomas Myhre
 tel: (312) 578-5015
 fax: (312) 578-5099

			
	 Commerzbank AG, New York and Grand Cayman Branches
	  	$0	  	 633 West 5th
Street, Suite 6600
 Los Angeles, CA 90071
 Attn: Matt Havens
 tel: (213) 683-5402
 fax: (213) 623-0039

			
	 Barclays Bank PLC
	  	$10,000,000.00	  	 Level 28
 1 Churchill Place,
 London E14 5HP
 Attn: John Davey
 tel: +44 7775 546 369
 fax: +44 20 7116 7651

			
	 JPMorgan Chase Bank, N.A.
	  	$0	  	 1111 Fanin Street
 10th Floor
 Houston, TX 77002

 Attn: Rosemary Everitt
 tel.:
(713) 750-2958
 fax: (713) 750-2892

			
	 Union Bank of California
	  	$32,000,000.00	  	 1501 Commerce Street
 Tacoma, WA 98402
 Attn: Ray Ward
 tel: (253) 591-2543
 fax: (253) 383-0875

			
	 TOTAL
	  	$125,000,000	  	

 SCHEDULE 4.01(X) 
 TO BE COMPLETED BY BORROWER 

 EXHIBIT A TO AMENDMENT NO. 7 
 (dated as of April 20, 2009) 
  
  
  
 CUSIP NUMBER:             
 CREDIT AGREEMENT 
 Dated as of June 11, 2003 
 Among 
 ESTERLINE TECHNOLOGIES CORPORATION,

 as Borrower, 
 THE
INITIAL LENDERS, ISSUING BANK AND 
 SWING LINE BANK NAMED HEREIN, 
 as Initial Lenders, Issuing Bank and Swing Line Bank, 
 WACHOVIA BANK, NATIONAL
ASSOCIATION, 
 as Administrative Agent, 
 WACHOVIA BANK, NATIONAL ASSOCIATION, 
 as Collateral Agent, 
 WELLS FARGO BANK, N.A., 
 as Syndication
Agent, 
 and 
 KEYBANK
NATIONAL ASSOCIATION 
 and 
 BANK OF AMERICA, N.A. 
 as Co-Documentation Agents 
  
  
 WACHOVIA CAPITAL MARKETS, LLC 
 (f/k/a Wachovia Securities, LLC), 
 as Co-Lead Arranger and Sole Bookrunner 
 and

 WELLS FARGO BANK, N.A., 
 as Co-Lead Arranger 
  
  
  
  
  

 TABLE OF CONTENTS 
  

			
	 Section
	  	Page
		
	 ARTICLE I DEFINITIONS AND ACCOUNTING TERMS
	  	
		
	 SECTION 1.01. Certain Defined Terms
	  	2
	 SECTION 1.02. Computation of Time Periods; Other Definitional Provisions
	  	25
	 SECTION 1.03. Accounting Terms
	  	25
	 SECTION 1.04. Currency Equivalents Generally
	  	25
		
	 ARTICLE II AMOUNTS AND TERMS OF THE ADVANCES AND THE LETTERS OF CREDIT
	  	
		
	 SECTION 2.01. The Advances and the Letters of Credit
	  	26
	 SECTION 2.02. Making the Advances
	  	27
	 SECTION 2.03. Issuance of and Drawings and Reimbursement Under Letters of Credit
	  	30
	 SECTION 2.04. Repayment of Advances
	  	31
	 SECTION 2.05. Termination or Reduction of the Commitments
	  	34
	 SECTION 2.06. Prepayments
	  	35
	 SECTION 2.07. Interest
	  	37
	 SECTION 2.08. Fees
	  	38
	 SECTION 2.09. Conversion of Advances
	  	38
	 SECTION 2.10. Increased Costs, Etc.
	  	39
	 SECTION 2.11. Payments and Computations
	  	41
	 SECTION 2.12. Taxes
	  	43
	 SECTION 2.13. Sharing of Payments, Etc.
	  	45
	 SECTION 2.14. Use of Proceeds
	  	46
	 SECTION 2.15. Evidence of Debt
	  	46
	 SECTION 2.16. Defaulting Lenders
	  	47
		
	 ARTICLE III CONDITIONS OF LENDING AND ISSUANCES OF LETTERS OF CREDIT
	  	
		
	 SECTION 3.01. Conditions Precedent to Initial Extension of Credit
	  	48
	 SECTION 3.02. Conditions Precedent to Each Borrowing and Issuance and Renewal
	  	52
		
	 ARTICLE IV REPRESENTATIONS AND WARRANTIES
	  	
		
	 SECTION 4.01. Representations and Warranties of the Loan Parties
	  	53
		
	 ARTICLE V COVENANTS OF THE LOAN PARTIES
	  	
		
	 SECTION 5.01. Affirmative Covenants
	  	58
	 SECTION 5.02. Negative Covenants
	  	62
	 SECTION 5.03. Reporting Requirements
	  	71
	 SECTION 5.04. Financial Covenants
	  	74
		
	 ARTICLE VI EVENTS OF DEFAULT
	  	
		
	 SECTION 6.01. Events of Default
	  	74
	 SECTION 6.02. Actions in Respect of the Letters of Credit upon Default
	  	77

  

 i 

			
		
	 ARTICLE VII THE AGENTS
	  	
		
	 SECTION 7.01. Authorization and Action
	  	77
	 SECTION 7.02. Agents’ Reliance, Etc.
	  	78
	 SECTION 7.03. Wachovia and Affiliates
	  	78
	 SECTION 7.04. Lender Party Credit Decision
	  	78
	 SECTION 7.05. Indemnification
	  	79
	 SECTION 7.06. Successor Agents
	  	80
	 SECTION 7.07. Bookrunner/ Co-Arranger, Co-Arranger, Syndication Agent and Documentation Agent Have No Liability
	  	80
		
	 ARTICLE VIII MISCELLANEOUS
	  	
		
	 SECTION 8.01. Amendments, Etc.
	  	80
	 SECTION 8.02. Notices, Etc.
	  	82
	 SECTION 8.03. No Waiver; Remedies; Entire Agreement
	  	82
	 SECTION 8.04. Costs and Expenses
	  	82
	 SECTION 8.05. Right of Set-off
	  	84
	 SECTION 8.06. Binding Effect
	  	84
	 SECTION 8.07. Assignments and Participations
	  	84
	 SECTION 8.08. Execution in Counterparts
	  	87
	 SECTION 8.09. No Liability of the Issuing Bank
	  	87
	 SECTION 8.10. Confidentiality
	  	87
	 SECTION 8.11. Judgment Currency
	  	88
	 SECTION 8.12. Release of Collateral
	  	88
	 SECTION 8.13. Jurisdiction, Etc.
	  	88
	 SECTION 8.14. GOVERNING LAW
	  	89
	 SECTION 8.15. WAIVER OF JURY TRIAL
	  	89

  

 ii 

 SCHEDULES 
  

					
	Schedule I	  	-	  	Commitments and Applicable Lending Offices
	Schedule II	  	-	  	Financial Covenant Items
	Schedule III	  	-	  	Subsidiary Guarantors
	Schedule IV	  	-	  	Existing Letters of Credit
	Schedule 4.01(b)	  	-	  	Subsidiaries
	Schedule 4.01(d)	  	-	  	Authorizations, Approvals, Actions, Notices and Filings
	Schedule 4.01(q)	  	-	  	Open Years
	Schedule 4.01(s)	  	-	  	Existing Debt
	Schedule 4.01(t)	  	-	  	Surviving Debt
	Schedule 4.01(u)	  	-	  	Liens
	Schedule 4.01(v)	  	-	  	Owned Real Property
	Schedule 4.01(w)	  	-	  	Leased Real Property
	Schedule 4.01(x)	  	-	  	Investments
	Schedule 4.01(y)	  	-	  	Intellectual Property
	Schedule 4.01(z)	  	-	  	Material Contracts

 EXHIBITS 
  

					
	Exhibit A-1	  	-	  	Form of Revolving Credit Note
	Exhibit A-2	  	-	  	Form of Swing Line Note
	Exhibit A-3	  	-	  	Form of Sterling Term Note
	Exhibit A-4	  	-	  	Form of US Term Note
	Exhibit B	  	-	  	Form of Notice of Borrowing
	Exhibit C	  	-	  	Form of Assignment and Acceptance
	Exhibit D	  	-	  	Form of Security Agreement
	Exhibit E	  	-	  	Form of Subsidiary Guaranty
	Exhibit F	  	-	  	Form of Solvency Certificate
	Exhibit G	  	-	  	Form of Opinion of Counsel to the Loan Parties
	Exhibit H	  	-	  	Form of Notice of Conversion

  

 iii 

 CREDIT AGREEMENT 
 CREDIT AGREEMENT dated as of June 11, 2003 (as amended, supplemented, restated or otherwise modified from time to time, this “Agreement”) among ESTERLINE TECHNOLOGIES CORPORATION,
a Delaware corporation (the “Borrower”), the banks, financial institutions and other lenders listed on the signature pages hereof as the Initial Lenders (the “Initial Lenders”), the bank listed on the
signature pages hereof as the Issuing Bank (as further defined below, the “Issuing Bank”), the bank listed on the signature pages hereof as the Swing Line Bank (as further defined below, the “Swing Line
Bank” and, together with the Initial Lenders and the Issuing Bank, the “Initial Lender Parties”), WACHOVIA BANK, NATIONAL ASSOCIATION, as collateral agent (together with any successor collateral agent
appointed pursuant to Article VII, in such capacity, the “Collateral Agent”) for the Secured Parties (as hereinafter defined), WACHOVIA BANK, NATIONAL ASSOCIATION (“Wachovia”), as
administrative agent (together with any successor administrative agent appointed pursuant to Article VII, in such capacity, the “Administrative Agent”) for the Lender Parties (as hereinafter defined), WACHOVIA CAPITAL
MARKETS, LLC (f/k/a Wachovia Securities, LLC), as sole bookrunner and co-lead arranger (in such capacity, the “Bookrunner/ Co-Arranger”), WELLS FARGO BANK, N.A., as co-lead arranger (in such capacity, the
“Co-Arranger”), WELLS FARGO BANK, N.A., as syndication agent, and KEYBANK NATIONAL ASSOCIATION and BANK OF AMERICA, N.A., as co-documentation agents. 
 PRELIMINARY STATEMENTS: 
 (1) The Borrower
has requested that the Lender Parties establish a revolving credit facility (with subfacilities for letters of credit and swingline loans) for the benefit of the Borrower in an aggregate amount equal to $100,000,000 to refinance and replace the
Borrower’s existing credit facilities and to finance the ongoing working capital and other general corporate purposes of the Borrower and its subsidiaries. The Lender Parties have indicated their willingness to agree to establish such revolving
credit facility, but only on the terms and conditions of this Agreement, including the granting of the Collateral pursuant to the Collateral Documents and the guarantees pursuant to the Subsidiary Guaranty (each, and all other capitalized terms used
in these Preliminary Statements, as defined below). 
 (2) It is a condition to the obligations of the Initial Lender Parties and the
effectiveness of this Agreement that, among other conditions, (a) the Borrower acquire (the “Acquisition”) all of the Equity Interests comprising the Acquired Businesses from the Sellers pursuant to the Agreement for the
Sale and Purchase of the Acquired Businesses by and among the Sellers and the Buyers dated as of May 22, 2003 (the “Acquisition Agreement”) and (b) to provide a portion of the financing for the Acquisition, the
Borrower shall have either (i) issued the Senior Subordinated Notes in an aggregate principal amount of at least $175,000,000 or (ii) incurred the Bridge Loans in an aggregate principal amount of at least $85,000,000. 

 NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements contained
herein, the parties hereto hereby agree as follows: 
 ARTICLE I 
 DEFINITIONS AND ACCOUNTING TERMS 
 SECTION 1.01. Certain Defined Terms.
As used in this Agreement (including the Preliminary Statements), the following terms shall have the following meanings (such meanings to be equally applicable to both the singular and plural forms of the terms defined): 
 “Acquisition Agreement” has the meaning specified in the Preliminary Statements to this Agreement. 
 “Acquired Businesses” means all of the Equity Interests (and related assets) of Pressure Systems International
Limited, a private limited company organized under the laws of England and Wales, Pressure Systems Inc., a Virginia corporation, Norwich Aero Products Inc., a New York corporation, and Weston Aerospace, a private unlimited company organized under
the laws of England and Wales. 
 “Acquisition” has the meaning specified in the Preliminary
Statements to this Agreement. 
 “Acquisition Documents” means the Acquisition Agreement and all
schedules thereto, employment agreements, the Tax Deed (as defined in the Acquisition Agreement), and each other document related to the Acquisition. 
 “Administrative Agent” has the meaning specified in the Preliminary Statements to this Agreement. 
 “Administrative Agent’s Account” means the account of
the Administrative Agent maintained by the Administrative Agent with Wachovia Bank, National Association, at its office at 201 South College Street, Charlotte Plaza 8th Floor, Charlotte, North Carolina 28288, Account No. 01459670001944, ABA No. 053000219, Attention: Agency Services – Hunter Dale, or such other account as the Administrative Agent shall specify in
writing to the Lender Parties. 
 “Advance” means a Revolving Credit Advance, the Sterling Term Loan
Advance, the US Term Loan Advance, a Swing Line Advance or a Letter of Credit Advance. 
 “Affiliate”
means, as to any Person, any other Person that, directly or indirectly, controls, is controlled by or is under common control with such Person or is a director or officer of such Person. For purposes of this definition, the term “control”
(including the terms “controlling”, “controlled by” and “under common control with”) of a Person means the possession, direct or indirect, of the power to vote 10% or more of the Voting Interests of such Person or to
direct or cause the direction of the management and policies of such Person, whether through the ownership of Voting Interests, by contract or otherwise. 
 “Agents” means the Administrative Agent, the Collateral Agent and the Bookrunner/ Co-Arranger. 
 “Agreement” has the meaning specified in the Preliminary Statements to this Agreement. 
 “Agreement Value” means, for each Hedge Agreement, on any date of determination, an amount equal to all obligations thereunder (includes the amount of any termination payments that would
payable on such date if the Hedge Agreement were terminated). 
  

 2 

 “Amendment No. 3 Effective Date” means the
effective date of that certain Amendment No. 3 to Credit Agreement dated as of November 14, 2005, among the Borrower, the Lenders and the Administrative Agent. 
 “Amendment No. 4 Effective Date” means the effective date of that certain Amendment No. 4
to Credit Agreement dated as of February 10, 2006, among the Borrower, the Lenders and the Administrative Agent. 
 “Amendment No. 5 Effective Date” means the effective date of that certain Amendment No. 5 to Credit Agreement dated as of March 13, 2007, among the Borrower, the Lenders and the
Administrative Agent. 
 “Amendment No. 7 Effective Date” means the effective date
of that certain Amendment No. 7 to Credit Agreement dated as of April 20, 2009, among the Borrower, the Lenders and the Administrative Agent. 
 “Applicable Commitment Fee Percentage” means, for any period, a rate equal to (i) 0.375% per annum if the Leverage Ratio is >3.0, (ii) 0.275% per annum if the
Leverage Ratio is <3.0 but >2.0 and (iii) 0.200% per annum if the Leverage Ratio is <2.0. 
 “Applicable Lending Office” means, with respect to each Lender Party, such Lender Party’s Domestic Lending Office in the case of a Base Rate Advance and such Lender Party’s Eurodollar Lending Office in the
case of a Eurodollar Rate Advance or a LIBOR Market Index Rate Advance. 
 “Applicable Margin” means,
at any time, (a) with respect to the US Term Loan Advance, 1.500% in the case of Base Rate Advances and 2.500% in the case of Eurodollar Rate Advances and (b) with respect to all Advances other than the US Term Loan Advance, a percentage
per annum determined by reference to the Leverage Ratio as of the end of the Fiscal Quarter most recently ended prior to such time, as set forth below: 
  

										
	 Leverage Ratio
	  	Base Rate Advances	 	 	LIBOR Market
Index Rate Advances	 	 	Eurodollar Rate
Advances	 
	 Greater than or equal to 3.0
	  	1.000	%	 	1.750	%	 	1.750	%
	 Greater than or equal to 2.0 but less than 3.0
	  	0.500	%	 	1.625	%	 	1.625	%
	 less than 2.0
	  	0.500	%	 	1.500	%	 	1.500	%

 “Appropriate Lender” means, at any time, with respect to
(a) the Revolving Credit Facility, a Lender that has a Commitment with respect to such Facility at such time, (b) the Letter of Credit Facility, (i) the Issuing Bank and (ii) if the other Revolving Credit Lenders have made Letter
of Credit Advances pursuant to Section 2.03(c) that are outstanding at such time, each such other Revolving Credit Lender, (c) the Swing Line Facility, (i) the Swing Line Bank and (ii) if the other Revolving Credit Lenders have
made Swing Line Advances pursuant to Section 2.02(b) that are outstanding at such time, each such other Revolving Credit Lender, (d) with respect to the Sterling Term Loan Advance, each Sterling Term Loan Lender and (e) with respect
to the US Term Loan Advance, each US Term Loan Lender. 
  

 3 

 “Approved Fund” means any Fund that is administered or managed by
(a) a Lender Party, (b) an Affiliate of a Lender Party or (c) an entity or an Affiliate of an entity that administers or manages a Lender Party. 
 “Acquisition Date” means the date the CMC Acquisition is consummated, which shall be on or before March 14,
2007. 
 “Asset Disposition” means the disposition of any or all of the assets (including, without
limitation, the Equity Interests of a Subsidiary or any ownership interest in a joint venture) of any Loan Party or any Subsidiary whether by sale, lease, transfer or otherwise, in a single transaction or in a series of transactions. The term
“Asset Disposition” shall not include (a) the sale, lease, transfer or other disposition of assets permitted by Section 5.02(e)(i), (ii) or (iii) hereof or (b) any Equity Issuance. 
 “Assignment and Acceptance” means an assignment and acceptance entered into by a Lender Party and an Eligible
Assignee, and accepted by the Administrative Agent, in accordance with Section 8.07 and in substantially the form of Exhibit C hereto. 
 “Available Amount” of any Letter of Credit means, at any time, the maximum Dollar Amount available to be drawn under such Letter of Credit at such time (assuming compliance at such time with
all conditions to drawing). 
 “Bankruptcy Law” means any proceeding of the type referred to in
Section 6.01(f) or Title II, U.S. Code, or any similar foreign, federal or state law for the relief of debtors. 
 “Base Rate” means a fluctuating interest rate per annum in effect from time to time, which rate per annum shall at all times be equal to the higher of: 
 (a) the rate of interest per annum then most recently publicly announced by Wachovia in Charlotte, North Carolina, from time to time, as
Wachovia’s prime rate for Dollars loaned in the United States; and 
 (b)  1/2 of 1% per annum above the Federal Funds Rate. 
 The Base Rate is an index rate and is not necessarily intended to be the lowest or best rate of interest charged to other customers in
connection with extensions of credit or to other banks. 
 “Base Rate Advance” means an Advance that
bears interest as provided in Section 2.07(a)(i). 
 “Bookrunner/Co-Arranger” has the meaning
specified in the Preliminary Statements to this Agreement. 
 “Borrower” has the meaning specified in
the Preliminary Statements to this Agreement. 
 “Borrower’s Account” means the account of the Borrower maintained by the Borrower with Wachovia Bank, National Association, at its office at 201 South College Street, Charlotte Plaza 8th Floor, Charlotte, North Carolina 28288, Attention: Agency Services, Account No. 5000000040942, or such other account as the Borrower shall specify in
writing to the Administrative Agent. 
  

 4 

 “Borrowing” means a Revolving Credit Borrowing, a Swing Line
Borrowing, the Sterling Term Loan Advance or the US Term Loan Advance. 
 “Bridge Loans” means loans
in a principal amount of up to $85,000,000 lent to the Borrower to finance the consummation of the Acquisition if the Senior Subordinated Notes cannot be issued due to market conditions, such loans to be made pursuant to a senior unsecured bridge
loan facility on terms (including terms for and relating to exchange notes therefor) and under documents reasonably satisfactory to the Administrative Agent (“Bridge Documentation”). 
 “Bridge Documentation” has the meaning specified therefor in the definition of “Bridge Loans”.

 “British Pounds Sterling” means British pounds sterling, the lawful currency of the United Kingdom.

 “Business Day” means a day of the year on which banks are not required or authorized by law to
close in New York, New York or Charlotte, North Carolina and, if the applicable Business Day relates to any Eurodollar Rate Advances or LIBOR Market Index Rate Advances, on which dealings are carried on in the London interbank market. 
 “Buyers” means Esterline Technologies Corporation, a Delaware corporation, and Esterline Technologies Acquisition
Limited, a private limited company organized under the laws of England and Wales. 
 “Canadian
Dollars” means Canadian dollars, the lawful currency of Canada. 
 “Capital Expenditures”
means, for any Person for any period, the sum of, without duplication, (a) all expenditures made, directly or indirectly, by such Person or any of its Subsidiaries during such period for equipment, fixed assets, real property or improvements,
or for replacements or substitutions therefor or additions thereto, that have been or should be, in accordance with GAAP, reflected as additions to property, plant or equipment on a Consolidated balance sheet of such Person or have a useful life of
more than one year plus (b) the aggregate principal amount of all Debt (including Obligations under Capitalized Leases) assumed or incurred in connection with any such expenditures. For purposes of this definition, the purchase price of
equipment that is purchased simultaneously with the trade-in of existing equipment or with insurance proceeds shall be included in Capital Expenditures only to the extent of the gross amount of such purchase price less the credit granted by the
seller of such equipment for the equipment being traded in at such time or the amount of such proceeds, as the case may be. 
 “Capitalized Leases” means all leases that have been or should be, in accordance with GAAP, recorded as capitalized leases. 
 “Cash Equivalents” means any of the following, to the extent owned by the Borrower or any of its Subsidiaries free
and clear of all Liens other than Liens created under the Collateral Documents and having a maturity of not greater than 180 days from the date of issuance thereof: (a) readily marketable direct obligations of the Government of the United
States or any agency or instrumentality thereof or obligations unconditionally guaranteed by the full faith and credit of the Government of the United States, (b) insured certificates of deposit of or time deposits with 

  

 5 

 
any commercial bank that is a Lender Party or a member of the Federal Reserve System, issues (or the parent of which issues) commercial paper rated as
described in clause (c) below, is organized under the laws of the United States or any State thereof and has combined capital and surplus of at least $1 billion, (c) commercial paper in an aggregate amount of no more than $5,000,000 per
issuer outstanding at any time, issued by any corporation organized under the laws of any State of the United States and rated at least “Prime-1” (or the then equivalent grade) by Moody’s Investors Service, Inc.
(“Moody’s”) or “A-1” (or the then equivalent grade) by Standard & Poor’s, a division of The McGraw-Hill Companies, Inc. (“S&P”) or (d) Investments, classified in accordance with
GAAP as Current Assets of the Borrower or any of its Subsidiaries, in money market investment programs registered under the Investment Company Act of 1940, as amended, which are administered by financial institutions that have the highest rating
obtainable from either Moody’s or S&P, and the portfolios of which are limited solely to Investments of the character, quality and maturity described in clauses (a), (b) and (c) of this definition. 
 “CERCLA” means the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended from
time to time. 
 “CERCLIS” means the Comprehensive Environmental Response, Compensation and Liability
Information System maintained by the U.S. Environmental Protection Agency. 
 “CFC” means a controlled
foreign corporation as defined in Section 957(a) of the Internal Revenue Code. 
 “Change of
Control” means the occurrence of any of the following: (a) any Person or two or more Persons acting in concert shall have acquired beneficial ownership (within the meaning of Rule 13d-3 of the Securities and Exchange Commission
under the Securities and Exchange Act of 1934) directly or indirectly, of Voting Interests of the Borrower (or other securities convertible into such Voting Interests) representing 30% or more of the combined voting power of all Voting Interests of
the Borrower; or (b) during any period of up to 24 consecutive months, commencing after the date hereof, individuals who at the beginning of such 24-month period were directors (or directors who were nominated or approved by such directors) of
the Borrower shall cease for any reason to constitute a majority of the board of directors of the Borrower; (c) any Person or two or more Persons acting in concert shall have acquired by contract (other than customary employment contracts for
seniors officers) or otherwise, or shall have entered into a contract or arrangement that, upon consummation, will result in its or their acquisition of the power to exercise, directly or indirectly, a controlling influence over the management
policies of the Borrower; or (d) any “Change of Control” or similar occurrence as defined in the Senior Subordinated Notes (so long as any Obligations are outstanding under the Senior Subordinated Notes), the 2007 Senior Notes (so
long as any Obligations are outstanding under the 2007 Senior Notes) or in any other instrument relating to Material Debt. 
 “Chief Financial Officer” means the officer of the Borrower or other Loan Parties holding such title, such holder as of the date hereof being Mr. Robert D. George. 
 “CMC” means CMC Electronics Holding Inc., a Canadian company. 
 “CMC Acquisition” means the Acquisition by the CMC Acquisition Parent of all of the equity interests of CMC on the
Acquisition Date. 
 “CMC Acquisition Parent” means Esterline Canadian Acquisition Corporation, a
Canadian company, a Canadian company. 
  

 6 

 “CMC Acquisition Parent Creditor” has the meaning specified in
Section 5.02(r). 
 “Co-Arranger” has the meaning specified in the Preliminary Statements to this
Agreement. 
 “Collateral” means all “Collateral” referred to in the Collateral Documents
and all other property that is or is intended to be subject to any Lien in favor of the Collateral Agent for the benefit of the Secured Parties. 
 “Collateral Agent” has the meaning specified in the Preliminary Statements to this Agreement. 
 “Collateral Documents” means the Security Agreement, the Intellectual Property Security Agreement, the U.K. Security Documents, each of the collateral documents, instruments and agreements
delivered pursuant to Section 5.01(j) or (k), and each other agreement that creates or purports to create a Lien in favor of the Collateral Agent for the benefit of the Secured Parties. 
 “Commitment” means a Revolving Credit Commitment, a Sterling Term Loan Commitment, a US Term Loan Commitment, a
Swing Line Commitment or a Letter of Credit Commitment. 
 “Confidential Information” means
information that any Loan Party furnishes to any Agent or any Lender Party in a writing designated as confidential, but does not include any such information that is or becomes generally available to the public or that is or becomes available to
such Agent or such Lender Party from a source other than the Loan Parties. 
 “Consolidated” refers to
the consolidation of accounts in accordance with GAAP. 
 “Consolidated Interest Expense” means, for
any period, all interest expense (including amortization of debt discount and premium and the interest component under Capitalized Leases) for such period of the Borrower and its Subsidiaries on a Consolidated basis. 
 “Consolidated Net Income” and “Consolidated Net Loss” means, respectively, for any period,
the aggregate net income or loss from continuing operations of the Borrower and its Subsidiaries on a Consolidated basis. 
 “Consolidated Working Capital” means, at any date of determination, (a) all current assets of the Borrower and its Subsidiaries on a Consolidated basis minus (b) all current liabilities of the
Borrower and its Subsidiaries on a Consolidated basis. 
 “Contingent Obligation” means, with respect
to any Person, any Obligation or arrangement of such Person to guarantee or intended to guarantee any Debt, leases, dividends or other payment Obligations (“primary obligations”) of any other Person (the “primary
obligor”) in any manner, whether directly or indirectly, including, without limitation, (a) the direct or indirect guarantee, 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 the Obligation of a primary obligor, (b) the Obligation to make take-or-pay or similar payments, if required, regardless of nonperformance by any other party or parties to an
agreement or (c) any Obligation of such Person, whether or not contingent, (i) to purchase any such primary obligation or any property constituting direct or indirect security therefor, (ii) to advance or supply funds (A) for the
purchase or payment of any such primary obligation or (B) to maintain working 

  

 7 

 
capital or equity capital of the primary obligor or otherwise to maintain the net worth or solvency of the primary obligor, (iii) to purchase property,
assets, securities or services primarily for the purpose of assuring the owner of any such primary obligation of the ability of the primary obligor to make payment of such primary obligation or (iv) otherwise to assure or hold harmless the
holder of any primary obligation against loss in respect thereof. The amount of any Contingent Obligation shall be deemed to be an amount equal to the stated or determinable amount of the primary obligation in respect of which such Contingent
Obligation is made (or, if less, the maximum amount of such primary obligation for which such Person may be liable pursuant to the terms of the instrument evidencing such Contingent Obligation) or, if not stated or determinable, the maximum
reasonably anticipated liability in respect thereof (assuming such Person is required to perform thereunder), as determined by such Person in good faith. 
 “Conversion”, “Convert” and “Converted” each refer to a conversion of Advances of one Type into Advances of another Type pursuant to
Section 2.09 or 2.10. 
 “Current Assets” of any Person means all assets of such Person that
would, in accordance with GAAP, be classified as current assets of a company conducting a business the same as or similar to that of such Person. 
 “Debt” of any Person means, without duplication for purposes of calculating financial ratios, (a) all indebtedness of such Person for borrowed money, (b) all Obligations of such
Person for the deferred purchase price of property or services (other than trade payables not overdue by more than 60 days incurred in the ordinary course of such Person’s business), (c) all Obligations of such Person evidenced by notes,
bonds, debentures or other similar instruments, (d) all Obligations 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), (e) all Obligations of such Person as lessee under Capitalized Leases, (f) all Obligations of such Person
under acceptances, letters of credit or other similar arrangements or credit support facilities, (g) all Obligations of such Person to purchase, redeem, retire, defease or otherwise make any payment in respect of any Equity Interests in such
Person or any other Person or any warrants, rights or options to acquire such Equity Interests, valued, in the case of Redeemable Preferred Interests, at the greater of its voluntary or involuntary liquidation preference plus accrued and
unpaid dividends, (h) all Obligations of such Person in respect of Hedge Agreements, valued at the Agreement Value thereof, (i) all Contingent Obligations and Off-Balance Sheet Obligations of such Person and (j) all indebtedness and
other payment Obligations referred to in clauses (a) through (i) above of another Person secured by (or for which the holder of such Debt has an existing right, contingent or otherwise, to be secured by) any Lien on property (including,
without limitation, accounts and contract rights) owned by such Person, even though such Person has not assumed or become liable for the payment of such indebtedness or other payment Obligations. 
 “Debt for Borrowed Money” of any Person means, at any date of determination, all items that, in accordance with
GAAP, would be classified as indebtedness on a Consolidated balance sheet of such Person and all Off-Balance Sheet Obligations of such Person at such date. 
 “Debt Issuance” means the issuance of any Debt by any Loan Party or any of its Subsidiaries. The term “Debt Issuance” shall not include (a) any Debt of any Loan Party and its
Subsidiaries permitted to be incurred pursuant to Sections 5.02(b)(i), 5.02(b)(ii) and 5.02(b)(iii)(A), (B), (C), (D), (E), (F), (G) and (H) hereof (provided that the aggregate amount of Debt under clause (G) to be excluded shall not
exceed $50,000,000) or (b) any Equity Issuance. 
  

 8 

 “Default” means any Event of Default or any event that would
constitute an Event of Default but for the passage of time or the requirement that notice be given or both. 
 “Default Interest” has the meaning set forth in Section 2.07(b). 
 “Defaulting Lender” has the meaning set forth in Section 2.16. 
 “Deposit
Account” has the meaning specified in the Security Agreement. 
 “Dollar Amount” means
(a) with respect to U.S. dollars or an amount denominated in U.S. dollars, such amount and (b) with respect to an amount of any Foreign Currency or an amount denominated in such Foreign Currency, the equivalent amount thereof in U.S.
dollars as determined by the Administrative Agent as of the most recent Revaluation Date on the basis of the Spot Rate (determined as of the most recent Revaluation Date) applicable to such Foreign Currency. 
 “Domestic Lending Office” means, with respect to any Lender Party, the office of such Lender Party specified as
its “Domestic Lending Office” opposite its name on Schedule I hereto or in the Assignment and Acceptance pursuant to which it became a Lender Party, as the case may be, or such other office of such Lender Party as such Lender Party
may from time to time specify to the Borrower and the Administrative Agent. 
 “Domestic Subsidiary”
means any Subsidiary organized under the laws of any state of the United States of America. 
 “EBITDA” means, for any period, (a) Consolidated Net Income or Consolidated Net Loss, as the case may be, for such period plus (b) the sum of (i) interest expense, (ii) income tax expense,
(iii) depreciation expense, (iv) amortization expense and (v) non cash items, in each case, which were deducted in determining Consolidated Net Income or Consolidated Net Loss, as the case may be, of the Borrower and its Subsidiaries
on a Consolidated basis for such period. 
 “Effective Date” means the first date on which the
conditions set forth in Article III shall have been satisfied. 
 “Eligible Assignee” means
(a) a Lender; (b) an Affiliate of a Lender; (c) an Approved Fund; (d) a commercial bank organized under the laws of the United States, or any State thereof, and having total assets in excess of $5 billion, (e) a finance
company, insurance company or other financial institution or fund (whether a corporation, partnership, trust or other entity) that is engaged in making, purchasing or otherwise investing in commercial loans in the ordinary course of its business and
having total assets in excess of $300,000,000 and (f) any other Person (other than a natural person) approved by (i) the Bookrunner/Co-Arranger and the Administrative Agent, (ii) in the case of any assignment of a Revolving Credit
Commitment, the Issuing Bank and the Swing Line Bank, in each case, with notice to the Bookrunner/Co-Arranger, Administrative Agent and the Borrower, and (iii) unless a Default has occurred and is continuing or if determined by the
Bookrunner/Co-Arranger (after consultation with the Borrower) to be necessary to achieve a successful initial syndication of the Facilities, the Borrower (each such approval not to be unreasonably withheld or delayed); provided that
notwithstanding the foregoing, “Eligible Assignee” shall not include the Borrower or any of the Borrower’s Affiliates or Subsidiaries. 
  

 9 

 “EMU” means Economic and Monetary Union as contemplated in the
Treaty on European Union. 
 “EMU Legislation” means legislative measures of the European Council
(including without limitation European Council regulations) for the introduction of, changeover to or operation of a single or unified European currency (whether known as the Euro or otherwise), being in part the implementation of the third stage of
EMU. 
 “Environmental Action” means any action, suit, demand, demand letter, claim, notice of
non-compliance or violation, notice of liability or potential liability, investigation, proceeding, consent order or consent agreement relating in any way to any Environmental Law, any Environmental Permit or Hazardous Material or arising from
alleged injury or threat to health, safety or the environment, including, without limitation, (a) by any governmental or regulatory authority for enforcement, cleanup, removal, response, remedial or other actions or damages and (b) by any
governmental or regulatory authority or third party for damages, contribution, indemnification, cost recovery, compensation or injunctive relief. 
 “Environmental Law” means any Federal, state, local or foreign statute, law, ordinance, rule, regulation, code, order, writ, judgment, injunction, decree or judicial or agency interpretation,
policy or guidance relating to pollution or protection of the environment, health, safety or natural resources, including, without limitation, those relating to the use, handling, transportation, treatment, storage, disposal, release or discharge of
Hazardous Materials. 
 “Environmental Permit” means any permit, approval, identification number,
license or other authorization required under any Environmental Law. 
 “Equity Interests” means, with
respect to any Person, shares of capital stock of (or other ownership or profit interests in) such Person, warrants, options or other rights for the purchase or other acquisition from such Person of shares of capital stock of (or other ownership or
profit interests in) such Person, securities convertible into or exchangeable for shares of capital stock of (or other ownership or profit interests in) such Person or warrants, rights or options for the purchase or other acquisition from such
Person of such shares (or such other interests), and other ownership or profit interests in such Person (including, without limitation, partnership, member or trust interests therein), whether voting or nonvoting, and whether or not such shares,
warrants, options, rights or other interests are authorized or otherwise existing on any date of determination. 
 “Equity Issuance” means any issuance by any Loan Party or any Subsidiary to any Person which is not a Loan Party of (a) shares or interests of its Equity Interests, (b) any shares or interests of its Equity
Interests pursuant to the exercise of options or warrants or other similar rights, (c) any shares or interests of its Equity Interests pursuant to the conversion of any debt securities to equity or (d) warrants or options or other similar
rights which are exercisable for or convertible into shares or interests of its Equity Interests. The term “Equity Issuance” shall not include (i) any Asset Disposition or (ii) any Debt Issuance. 
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the
regulations promulgated and rulings issued thereunder. 
 “ERISA Affiliate” means any Person that for
purposes of Title IV of ERISA is a member of the controlled group of any Loan Party, or under common control with any Loan Party, within the meaning of Section 414 of the Internal Revenue Code. 
  

 10 

 “ERISA Event” means (a) unless the applicable 30-day notice
requirement with respect to such event has been waived by the PBGC, (i) the occurrence of a reportable event, within the meaning of Section 4043 of ERISA, with respect to any Plan or (ii) the requirements of Section 4043(b) of
ERISA apply with respect to a contributing sponsor, as defined in Section 4001(a)(13) of ERISA, of a Plan, and an event described in paragraph (9), (10), (11), (12) or (13) of Section 4043(c) of ERISA is reasonably expected
to occur with respect to such Plan within the following 30 days; (b) the application for a minimum funding waiver with respect to a Plan; (c) the provision by the administrator of any Plan of a notice of intent to terminate such Plan,
pursuant to Section 4041(a)(2) of ERISA (including any such notice with respect to a plan amendment referred to in Section 4041(e) of ERISA); (d) the cessation of operations at a facility of any Loan Party or any ERISA Affiliate in
the circumstances described in Section 4062(e) of ERISA; (e) the withdrawal by any Loan Party or any ERISA Affiliate from a Multiple Employer Plan during a plan year for which it was a substantial employer, as defined in
Section 4001(a)(2) of ERISA; (f) the conditions for imposition of a lien under Section 302(f) of ERISA shall have been met with respect to any Plan; (g) the adoption of an amendment to a Plan requiring the provision of security
to such Plan pursuant to Section 307 of ERISA; or (h) the institution by the PBGC of proceedings to terminate a Plan pursuant to Section 4042 of ERISA, or the occurrence of any event or condition described in Section 4042 of
ERISA that constitutes grounds for the termination of, or the appointment of a trustee to administer, such Plan. 
 “Euro” means the single currency of Participating Member States of the European Union. 
 “Eurocurrency Liabilities” has the meaning specified in Regulation D of the Board of Governors of the Federal Reserve System, as in effect from time to time. 
 “Eurodollar Lending Office” means, with respect to any Lender Party, the office of such Lender Party specified as
its “Eurodollar Lending Office” opposite its name on Schedule I hereto or in the Assignment and Acceptance pursuant to which it became a Lender Party (or, if no such office is specified, its Domestic Lending Office), or such other
office of such Lender Party as such Lender Party may from time to time specify to the Borrower and the Administrative Agent. 
 “Eurodollar Rate” means, for any Interest Period for all Eurodollar Rate Advances comprising part of the same Borrowing, an interest rate per annum determined by the Administrative Agent to be equal to the rate per
annum obtained by dividing (a) (i) (A) the rate per annum (rounded upwards, if necessary, to the nearest 1/100 of 1%) appearing on, in the case of U.S. dollars, Telerate Page 3750 as the London interbank offered rate for deposits in
U.S. dollars and, in the case of a Foreign Currency, the appropriate page of the Telerate screen which displays British Bankers Association Interest Settlement Rates for deposits in such Foreign Currency (or, in each case, (i) such other page
or service as may replace such page on such system or service for the purpose of displaying such rates and (ii) if more than one rate appears on such screen, the arithmetic mean for all such rates) at approximately 11:00 A.M. (London time) two
Business Days before the first day of such Interest Period for a period equal to such Interest Period (provided that, if for any reason such rate is not available, the rate per annum (rounded upwards, if necessary, to the nearest 1/100 of 1%)
appearing on Reuters Screen LIBO Page as the London interbank offered rate for deposits in the applicable 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; provided, however, if more than one rate is specified on Reuters Screen LIBO Page, the applicable rate shall be the arithmetic mean of all such rates), or (B) if such rate is for any reason not available, the
rate per annum equal to the rate at which the Administrative Agent or its designee is offered deposits in the applicable currency at or about 

  

 11 

 
11:00 A.M. (London time) two Business Days prior to the beginning of such Interest Period in the interbank eurodollar market for delivery on the first day of
such Interest Period for the number of days comprised therein and in the amount requested to be outstanding, plus (ii) with respect to any Eurodollar Rate Advance denominated in British Pounds Sterling, for any Interest Period, the
Mandatory Cost Rate for such Interest Period by (b) a percentage equal to 100% minus the Eurodollar Rate Reserve Percentage for such Interest Period. 
 “Eurodollar Rate Advance” means an Advance that bears interest as provided in Section 2.07(a)(ii). 
 “Eurodollar Rate Reserve Percentage” for any Interest Period for all Eurodollar Rate Advances comprising part of
the same Borrowing means the reserve percentage applicable two Business Days before the first day of such Interest Period under regulations issued from time to time by the Board of Governors of the Federal Reserve System (or any successor) for
determining the maximum reserve requirement (including, without limitation, any emergency, supplemental or other marginal reserve requirement) for a member bank of the Federal Reserve System in New York City with respect to liabilities or
assets consisting of or including Eurocurrency Liabilities (or with respect to any other category of liabilities that includes deposits by reference to which the interest rate on Eurodollar Rate Advances is determined) having a term equal to such
Interest Period. 
 “Events of Default” has the meaning specified in Section 6.01. 
 “Excess Cash Flow” means, with respect to any fiscal year of the Borrower, for the Borrower and its Subsidiaries
on a Consolidated basis, an amount equal to (a) EBITDA for such period minus (b) Capital Expenditures for such period minus (c) Scheduled Funded Debt Payments made during such period minus (d) Consolidated
Interest Expense (excluding any Consolidated Interest Expense associated with intercompany indebtedness) for such period minus (e) amounts paid in cash in respect of federal, state, local and foreign income taxes of the Borrower and its
Subsidiaries with respect to such period minus (f) increases in Consolidated Working Capital during such period plus (g) decreases in Consolidated Working Capital during such period minus (h) the total cash
consideration paid by or on behalf of the Borrower and its Subsidiaries for acquisitions permitted pursuant to Section 5.02(f)(viii). 
 “Existing Debt” means Debt of each Loan Party and its Subsidiaries outstanding immediately before the occurrence of the Effective Date. 
 “Existing Letters of Credit” means each of the letters of credit described by date of issuance, amount, purpose
and the date of expiry on Schedule IV hereto. 
 “Facility” means any of the Revolving Credit
Facility, the Swing Line Facility, the Sterling Term Loan Advance, the US Term Loan Advance or the Letter of Credit Facility. 
 “Federal Funds Rate” means, for any period, a fluctuating interest rate per annum equal for each day during such period to the weighted average of the rates on overnight Federal funds transactions with members of the
Federal Reserve System arranged by Federal funds brokers, as published for such day (or, if such day is not a Business Day, for the next preceding Business Day) by the Federal Reserve Bank of New York, or, if such rate is not so published for
any day that is a Business Day, the average of the quotations for such day for such transactions received by the Administrative Agent from three Federal funds brokers of recognized standing selected by it. 
  

 12 

 “Fee Letter” means the fee letter dated November 2, 2005,
among the Borrower, the Administrative Agent and the Bookrunner/Co-Arranger. 
 “Fiscal Quarter” means
a fiscal quarter of a Fiscal Year. 
 “Fiscal Year” means a fiscal year of the Borrower and its
Consolidated Subsidiaries ending on the last Friday of October in any calendar year. 
 “Foreign
Currency” means Revolving Foreign Currency and Letter of Credit Foreign Currency. 
 “Fund” means any Person (other than an individual) 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 its
business. 
 “GAAP” has the meaning specified in Section 1.03. 
 “Governmental Authority” means any nation or government, any state, province, city, municipal entity or other
political subdivision thereof, and any governmental, executive, legislative, judicial, administrative or regulatory agency, department, authority, instrumentality, commission, board, bureau or similar body, whether federal, state, provincial,
territorial, local or foreign. 
 “Governmental Authorization” means any authorization,
approval, consent, franchise, license, order, ruling, permit, certification, exemption, notice, declaration or similar right, undertaking or other action of, to or by, or any filing, qualification or registration with, any Governmental Authority.

 “Hazardous Materials” means (a) petroleum or petroleum products, by-products or breakdown
products, radioactive materials, asbestos-containing materials, polychlorinated biphenyls and radon gas and (b) any other chemicals, materials or substances designated, classified or regulated as hazardous or toxic or as a pollutant or
contaminant under any Environmental Law. 
 “Hedge Agreements” means interest rate swap, cap or collar
agreements, interest rate future or option contracts, currency swap agreements, currency future or option contracts and other hedging agreements. 
 “Hedge Bank” means any Person in its capacity as a party to a Secured Hedge Agreement that was a Lender Party or an Affiliate of a Lender Party at the time such Hedge Agreement was entered
into. 
 “Indemnified Party” has the meaning specified in Section 8.04(b). 
 “Initial Extension of Credit” means the earlier to occur of the initial Borrowing and the initial issuance of a
Letter of Credit hereunder. 
 “Initial Lender Parties” and “Initial Lenders”
each has the meaning specified in the Preliminary Statements to this Agreement. 
  

 13 

 “Insufficiency” means, with respect to any Plan, the amount, if
any, by which its benefit liabilities, as defined in Section 4001(a)(16) of ERISA, determined using the actuarial assumptions used for funding purposes in the most recent actuarial report prepared for such Plan, exceeds the fair market value of
such Plan’s assets. 
 “Intellectual Property Security Agreement” has the meaning specified in
Section 3.01(a)(v). 
 “Interest Coverage Ratio” means, for any Measurement Period, the ratio of
(a) Pro Forma EBITDA for such Measurement period to (b) Consolidated Interest Expense for such Measurement Period. 
 “Interest Period” means, for each Eurodollar Rate Advance comprising part of the same Borrowing, the period commencing on the date of such Eurodollar Rate Advance or the date of the Conversion of any Base Rate
Advance or LIBOR Market Index Rate Advance into such Eurodollar Rate Advance, and ending on the last day of the period selected by the Borrower pursuant to the provisions below and, thereafter, each subsequent period commencing on the last day of
the immediately preceding Interest Period and ending on the last day of the period selected by the Borrower pursuant to the provisions below. The duration of each such Interest Period shall be one, two, three or six months, as the Borrower may
select, upon notice received by the Administrative Agent not later than 2:00 P.M. (New York City time) on (i) in the case of Advances denominated in U.S. dollars, the third Business Day prior to the first day of such Interest Period
and (ii) in the case of Advances denominated in Foreign Currencies, the fourth Business Day prior to the first day of such Interest Period; provided, however, that: 
 (a) the Borrower may not select any Interest Period with respect to any Eurodollar Rate Advance that ends after the applicable Termination
Date; 
 (b) Interest Periods commencing on the same date for Eurodollar Rate Advances comprising part of the same Borrowing
shall be of the same duration; 
 (c) whenever the last day of any Interest Period would otherwise occur on a day other than a
Business Day, the last day of such Interest Period shall be extended to occur on the next succeeding Business Day, provided, however, that, if such extension would cause the last day of such Interest Period to occur in the next following
calendar month, the last day of such Interest Period shall occur on the next preceding Business Day; and 
 (d) whenever the
first day of any Interest Period occurs on a day of an initial calendar month for which there is no numerically corresponding day in the calendar month that succeeds such initial calendar month by the number of months equal to the number of months
in such Interest Period, such Interest Period shall end on the last Business Day of such succeeding calendar month. 
 “Internal Revenue Code” means the Internal Revenue Code of 1986, as amended from time to time (including any successor law). 
 “Inventory” means all Inventory referred to in Section 1(b) of the Security Agreement. 
  

 14 

 “Investment” in any Person means any loan or advance to such
Person, any purchase or other acquisition of any Equity Interests or Debt or the assets comprising a division or business unit or a substantial part or all of the business of such Person, any capital contribution to such Person or any other direct
or indirect investment in such Person, including, without limitation, any acquisition by way of a merger or consolidation (or similar transaction) and any arrangement pursuant to which the investor incurs Debt of the types referred to in
clause (i) or (j) of the definition of “Debt” in respect of such Person. 
 “Issuing Bank” means (a) with respect to Letters of Credit issued pursuant to Section 2.01(c) hereof, the Issuing Bank referred to in the Preliminary Statements to this Agreement and any Eligible Assignees
to which all or a portion of the Letter of Credit Commitment hereunder has been assigned pursuant to Section 8.07 so long as each such Eligible Assignee expressly agrees to perform in accordance with their terms all of the obligations that by
the terms of this Agreement are required to be performed by it as the Issuing Bank and notifies the Administrative Agent of its Applicable Lending Office and the amount of its Letter of Credit Commitment (which information shall be recorded by the
Administrative Agent in the Register), for so long as the Issuing Bank or Eligible Assignee, as the case may be, shall have a Letter of Credit Commitment and (b) with respect to the Existing Letters of Credit only, the applicable Lender that is
the issuer of such Existing Letter of Credit. 
 “Korry Lease” means that certain Building Lease and
Sublease, dated March 26, 2008, between Capstone PF LLC and Korry Electronics Co., as amended. 
 “L/C Related
Documents” has the meaning specified in Section 2.04(c)(ii). 
 “Lender Party” means
the Initial Lender Parties and any other Person that becomes a Lender, the Issuing Bank or the Swing Line Bank. 
 “Lenders” means the Initial Lenders and each Person that shall become a Lender hereunder pursuant to Section 8.07 for so long as such Initial Lender or Person, as the case may be, shall be a party to this
Agreement. 
 “Letter of Credit Advance” means an advance made by the Issuing Bank or any Revolving
Credit Lender pursuant to Section 2.03(d). 
 “Letter of Credit Agreement” has the meaning
specified in Section 2.03(a). 
 “Letter of Credit Commitment” means, with respect to the Issuing
Bank at any time, the amount set forth opposite the Issuing Bank’s name on Schedule I hereto under the caption “Letter of Credit Commitment” or, if the Issuing Bank has entered into an Assignment and Acceptance, set forth for the
Issuing Bank in the Register maintained by the Administrative Agent pursuant to Section 8.07(d) as the Issuing Bank’s “Letter of Credit Commitment”, as such amount may be reduced at or prior to such time pursuant to
Section 2.05. 
 “Letter of Credit Facility” means, at any time, an amount equal to the amount of
the Issuing Bank’s Letter of Credit Commitment at such time, as such amount may be reduced at or prior to such time pursuant to Section 2.05. 
 “Letter of Credit Foreign Currency” means (a) Euros, (b) British Pounds Sterling and (c) Canadian Dollars. 
 “Letters of Credit” has the meaning specified in Section 2.01(c). 
  

 15 

 “Leverage Ratio” means, at any date of determination, the ratio
of (a) (i) Consolidated total Debt for Borrowed Money at such date plus (ii) the face amount of all outstanding Letters of Credit (other than (1) trade Letters of Credit, (2) performance based Letters of Credit and
(3) Letters of Credit which are cash collateralized) at such date less (A) if Advances under the Revolving Credit Facility in an aggregate principal Dollar Amount of $10,000,000 or less are outstanding, cash and Cash Equivalents on
hand or (B) if Advances under the Revolving Credit Facility in an aggregate principal Dollar Amount greater than $10,000,000 are outstanding, cash and Cash Equivalents on hand in an amount not to exceed $5,000,000, in each case of the Borrower
and its Subsidiaries to (b) Pro Forma EBITDA for the most recently completed Measurement Period. 
 “LIBOR Market Index Rate” shall mean, for any day, the rate for one month interbank offered rate for deposits in the applicable Foreign Currency appearing on Telerate Page 3750 (or any successor page) or such other
Telerate screen on which rates for deposits in such Foreign Currency are displayed at approximately 11:00 A.M. (London time) on such day, or if such day is not a London business day, then the immediately preceding London business day (or if not so
reported, then as determined by the Administrative Agent from another recognized source or interbank quotation). 
 “LIBOR Market Index Rate Advance” means an Advance that bears interest as provided in Section 2.07(a)(iii). 
 “Lien” means any lien, security interest or other charge or encumbrance of any kind, or any other type of preferential arrangement, including, without limitation, the lien or retained security
title of a conditional vendor and any easement, right of way or other encumbrance on title to real property. 
 “Loan Documents” means (a) this Agreement (including all amendments thereto), (b) the Notes, (c) the Subsidiary Guaranty, (d) the Collateral Documents, (e) the Fee Letter, (f) each
Letter of Credit Agreement and (g) each Secured Hedge Agreement, in each case as amended. 
 “Loan
Parties” means the Borrower and the Subsidiary Guarantors. 
 “Mandatory Cost Rate”
means, with respect to any Eurodollar Rate Advance for any Interest Period, a rate per annum reflecting the cost to the Lenders of complying with all reserve, special deposit, capital adequacy, solvency, liquidity ratios, fees or other requirements
of or imposed by the Bank of England, the Financial Services Authority, the European Central Bank or any other governmental or regulatory authority for such Interest Period attributable to such Eurodollar Rate Advance (rounded up if necessary to 4
decimal places) as conclusively determined by the Administrative Agent, absent manifest error. 
 “Margin
Stock” has the meaning specified in Regulation U. 
 “Material Acquisition” means
any purchase or other acquisition by a Loan Party of all of the Equity Interests in, or all or a substantial portion of the property and assets of or line of business, division or product line of, any Person (any such property, assets or Person, a
“Material Target”) that (a) is permitted pursuant to Section 5.02(f), (b) is in excess of $100,000,000 in total purchase consideration and (c) after giving effect thereto on a pro forma basis, the Leverage Ratio
(as determined by the Administrative Agent) of the Borrower and its Subsidiaries exceeds 4.0:1.0. 
  

 16 

 “Material Adverse Change” means any material adverse change in
the business, condition (financial or otherwise), operations, performance, properties or prospects of the Borrower and its Subsidiaries, taken as a whole. 
 “Material Adverse Effect” means a material adverse effect on (a) the business, condition (financial or otherwise), operations, performance, properties or prospects of the Borrower and its
Subsidiaries, taken as a whole, (b) the rights and remedies of any Agent or any Lender Party under any Loan Document or (c) the ability of any Loan Party to perform its Obligations under any Loan Document to which it is or is to be a
party. 
 “Material Contract” means, with respect to the Borrower or its Subsidiaries, each contract
to which such Person is a party involving aggregate consideration payable to or by such Person in excess of 10% of Consolidated revenues in any year of the Borrower and its Subsidiaries, taken as a whole, or otherwise material to the business,
condition (financial or otherwise), operations, performance, properties or prospects of the Borrower and its Subsidiaries, taken as a whole. 
 “Material Debt” means Debt for Borrowed Money in an aggregate principal amount in excess of $25,000,000. 
 “Material Target” has the meaning specified in the definition of Material Acquisition. 
 “Measurement Period” means, at any date of determination, the most recently completed four consecutive Fiscal
Quarters of the Borrower ending on or prior to such date; provided, that for any Fiscal Quarter commenced prior to the Initial Extension of Credit, the amount of any item included in the calculation of a financial ratio or financial covenant,
during any such Fiscal Quarter shall be as set forth on Schedule II hereto. 
 “Multiemployer Plan”
means a multiemployer plan, as defined in Section 4001(a)(3) of ERISA, to which any Loan Party or any ERISA Affiliate 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. 
 “Multiple Employer Plan” means a single employer plan, as
defined in Section 4001(a)(15) of ERISA, that (a) is maintained for employees of any Loan Party or any ERISA Affiliate and at least one Person other than the Loan Parties and the ERISA Affiliates or (b) was so maintained and in
respect of which any Loan Party or any ERISA Affiliate could reasonably be expected to have liability under Section 4064 or 4069 of ERISA in the event such plan has been or were to be terminated. 
 “Net Cash Proceeds” means the aggregate cash proceeds received by any Loan Party or any Subsidiary in respect of
any Asset Disposition, Equity Issuance, Debt Issuance or Recovery Event, net of (a) direct costs paid or payable as a result thereof (including, without limitation, reasonable legal, accounting and investment banking fees, and sales
commissions), (b) taxes paid or payable as a result thereof and (c) payment of the outstanding principal amount of, premium or penalty, if any, and interest on any Debt (other than the Advances) that is secured by a Lien on the Equity
Interests or assets at issue and that is required to be repaid under the terms thereof as a result of any Asset Disposition; it being understood that “Net Cash Proceeds” shall include, without limitation, any cash received upon the sale or
other disposition of any non-cash consideration received by any Loan Party or any Subsidiary in respect of any Asset Disposition, Equity Issuance, Debt Issuance or Recovery Event. 
  

 17 

 “Note” means a Swing Line Note, a Sterling Term Note, a US Term
Note or a Revolving Credit Note. 
 “Notice of Borrowing” has the meaning specified in
Section 2.02(a). 
 “Notice of Conversion” has the meaning specified in Section 2.09(a).

 “Notice of Issuance” has the meaning specified in Section 2.03(a). 
 “Notice of Renewal” has the meaning specified in Section 2.01(c). 
 “Notice of Swing Line Borrowing” has the meaning specified in Section 2.02(b). 
 “Notice of Termination” has the meaning specified in Section 2.01(c). 
 “NPL” means the National Priorities List under CERCLA. 
 “Obligation” means, with respect to any Person, any payment, performance or other obligation of such Person of any
kind, including, without limitation, any liability of such Person on any claim, whether or not the right of any creditor to payment in respect of such claim is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, disputed,
undisputed, legal, equitable, secured or unsecured, and whether or not such claim is discharged, stayed or otherwise affected by any proceeding referred to in Section 6.01(f). Without limiting the generality of the foregoing, the Obligations of
any Loan Party under the Loan Documents include (a) the obligation to pay principal, interest, Letter of Credit commissions, charges, expenses, fees, attorneys’ fees and disbursements, indemnities and other amounts payable by such Loan
Party under any Loan Document and (b) the obligation of such Loan Party to reimburse any amount in respect of any of the foregoing that any Lender Party, in its sole discretion, may elect to pay or advance on behalf of such Loan Party.

 “Off Balance Sheet Obligation” means, with respect to any Person, any Obligation of such Person
under a synthetic lease, tax retention operating lease, off-balance sheet loan or similar off-balance sheet financing classified as an operating lease in accordance with GAAP, if such Obligations would give rise to a claim against such Person in a
proceeding referred to in Section 6.01(f). 
 “Open Year” has the meaning specified in
Section 4.01(q)(iii). 
 “Other Taxes” has the meaning specified in Section 2.12(b).

 “Participating Member State” means each country so described in any EMU Legislation. 
 “PBGC” means the Pension Benefit Guaranty Corporation (or any successor). 
 “Permitted Liens” means such of the following as to which no enforcement, collection, execution, levy or
foreclosure proceeding shall have been commenced: (a) Liens for taxes, assessments and governmental charges or levies to the extent not required to be paid under Section 5.01(b); (b) Liens imposed by law, such as materialmen’s,
mechanics’, carriers’, workmen’s and repairmen’s Liens and other similar Liens arising in the ordinary course of business securing obligations that (i) are not overdue for a period of more than 30 days and 

  

 18 

 
(ii) individually or together with all other Permitted Liens outstanding on any date of determination do not materially adversely affect the use of the
property to which they relate; (c) pledges or deposits (i) to secure obligations under workers’ compensation laws or similar legislation or to secure letters of credit supporting such obligations or (ii) to secure public or
statutory obligations; (d) easements, rights of way and other encumbrances on title to real property that do not render title to the property encumbered thereby unmarketable or materially adversely affect the use of such property for its
present purposes; (e) Liens of a collection bank in the ordinary course of business under Section 4-208 of the Uniform Commercial Code in effect in any relevant jurisdiction; and (f) cash pledges or deposits to secure obligations
under letters of credit in an aggregate amount not to exceed $30,000,000 at any time. 
 “Person”
means an individual, partnership, corporation (including a business trust), limited liability company, joint stock company, trust, unincorporated association, joint venture or other entity, or a government or any political subdivision or agency
thereof. 
 “Plan” means a Single Employer Plan or a Multiple Employer Plan. 
 “Pledged Debt” has the meaning specified in the Security Agreement. 
 “Preferred Interests” means, with respect to any Person, Equity Interests issued by such Person that are entitled
to a preference or priority over any other Equity Interests issued by such Person upon any distribution of such Person’s property and assets, whether by dividend or upon liquidation. 
 “Pro Forma EBITDA” means, for any period, Consolidated EBITDA adjusted to give effect to the Acquisition or any
other acquisition consummated by the Borrower or any of its Subsidiaries in accordance with this Agreement as if it had occurred on the first day of such period; provided, it is hereby agreed that the adjustment to Consolidated EBITDA with
respect to the CMC Acquisition shall be (a) for the Measurement Period as of the Amendment No. 5 Effective Date, an increase of $16,500,000, (b) for the Measurement Period as of the first Fiscal Quarter end following the Amendment
No. 5 Effective Date, an increase of $12,375,000, (c) for the Measurement Period as of the second Fiscal Quarter end following the Amendment No. 5 Effective Date, an increase of $8,250,000 and (d) for the Measurement Period as of
the third Fiscal Quarter end following the Amendment No. 5 Effective Date, an increase of $4,125,000. 
 “Pro
Rata Share” of any amount means, with respect to any Revolving Credit Lender at any time, the product of such amount times a fraction the numerator of which is the amount of such Lender’s Revolving Credit Commitment at such
time (or, if the Commitments shall have been terminated pursuant to Section 2.05 or 6.01, such Lender’s Revolving Credit Commitment as in effect immediately prior to such termination) and the denominator of which is the Revolving Credit
Facility at such time (or, if the Commitments shall have been terminated pursuant to Section 2.05 or 6.01, the Revolving Credit Facility as in effect immediately prior to such termination). 
 “Receivables” means all Receivables referred to in Section 1(c) of the Security Agreement. 
 “Recovery Event” means the receipt by any Loan Party or any of its Subsidiaries of any cash insurance proceeds or
condemnation or expropriation award payable by reason of theft, loss, physical destruction or damage, taking or similar event with respect to any of their property or assets. 
  

 19 

 “Redeemable” means, with respect to any Equity Interest, any Debt
or any other right or Obligation, any such Equity Interest, Debt, right or Obligation that (a) the issuer has undertaken to redeem at a fixed or determinable date or dates, whether by operation of a sinking fund or otherwise, or upon the
occurrence of a condition not solely within the control of the issuer or (b) is redeemable at the option of the holder. 
 “Register” has the meaning specified in Section 8.07(d). 
 “Regulation
U” means Regulation U of the Board of Governors of the Federal Reserve System, as in effect from time to time. 
 “Required Lenders” means, at any time, Lenders owed or holding at least a majority in interest of the sum of (a) the aggregate principal Dollar Amount of the Advances outstanding at such time, (b) the
aggregate Available Amount of all Letters of Credit outstanding at such time and (c) the aggregate Unused Revolving Credit Commitments at such time. For purposes of this definition, the aggregate principal amount of Swing Line Advances owing to
the Swing Line Bank and of Letter of Credit Advances owing to the Issuing Bank and the Available Amount of each Letter of Credit shall be considered to be owed to the Revolving Credit Lenders ratably in accordance with their respective Revolving
Credit Commitments. 
 “Reserved Available Amount” of any Letter of Credit means, at any time,
(a) the maximum Dollar Amount available to be drawn under such Letter of Credit at such time (assuming compliance at such time with all conditions to drawing) plus (b) if such Letter of Credit is denominated in a Foreign Currency,
an amount equal to 5% of maximum Dollar Amount available to be drawn under such Letter of Credit at such time (assuming compliance at such time with all conditions to drawing). 
 “Responsible Officer” means any officer of any Loan Party or any of its Subsidiaries. 
 “Restricted Payment” has the meaning specified in Section 5.02(g). 
 “Revaluation Date” means each of the following: (a) the Business Day any Advance is extended; (b) each
date a Letter of Credit is issued, renewed or amended pursuant to Section 2.03; (c) the date of any reduction of any of the Letter of Credit Facility or the Unused Revolving Commitments pursuant to the terms of Section 2.05; and
(d) such additional dates as the Administrative Agent or the Required Lenders shall deem necessary. 
 “Revolving Credit Advance” has the meaning specified in Section 2.01(a). 
 “Revolving Credit Borrowing” means a borrowing consisting of simultaneous Revolving Credit Advances of the same Type made by the Revolving Credit Lenders. 
 “Revolving Credit Commitment” means, with respect to any Revolving Credit Lender at any time, the amount set forth
opposite such Lender’s name on Schedule I hereto under the caption “Revolving Credit Commitment” or, if such Lender has entered into one or more Assignment and Acceptances, set forth for such Lender in the Register maintained by
the Administrative Agent pursuant to Section 8.07(d) as such Lender’s “Revolving Credit Commitment”, as such amount may be reduced at or prior to such time pursuant to Section 2.05. 
 “Revolving Credit Facility” means, at any time, the aggregate amount of the Revolving Credit Lenders’
Revolving Credit Commitments at such time. 
  

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 “Revolving Credit Lender” means any Lender that has a Revolving
Credit Commitment. 
 “Revolving Credit Note” means a promissory note of the Borrower payable to the
order of any Revolving Credit Lender, in substantially the form of Exhibit A-1 hereto, evidencing the aggregate indebtedness of the Borrower to such Lender resulting from the Revolving Credit Advances, Letter of Credit Advances and Swing Line
Advances made by such Lender, as amended, endorsed or replaced. 
 “Revolving Foreign Currency” means
(a) Euros and (b) British Pounds Sterling. 
 “Scheduled Funded Debt Payments” means,
for any period, the sum of all scheduled payments of principal on Debt made in cash for such period of the Borrower and its Subsidiaries on a Consolidated basis (including the principal component of payments due on Capitalized Leases during the
applicable period ending on the date of determination). 
 “Secured Hedge Agreement” means any Hedge
Agreement required or permitted under Article V that is entered into by and between any Loan Party and any Hedge Bank and that is secured by the Collateral Documents. 
 “Secured Obligations” has the meaning specified in Section 2 of the Security Agreement. 
 “Secured Parties” means the Agents, the Lender Parties and the Hedge Banks. 
 “Security Agreement” has the meaning specified in Section 3.01(a)(iii). 
 “Sellers” means, collectively, Roxboro Overseas Limited, a private limited company organized under the laws of
England and Wales, Roxboro Holdings, Inc., a Delaware corporation, Weston Group Limited, a private limited company organized under the laws of England and Wales, and The Roxboro Group plc, a private limited company organized under the laws of
England and Wales. 
 “Senior Leverage Ratio” means, at any date of determination, the ratio of
(a) (i) Consolidated total Debt for Borrowed Money (excluding Subordinated Debt) at such date plus (ii) the face amount of all outstanding Letters of Credit (other than (1) trade Letters of Credit, (2) performance
based Letters of Credit and (3) Letters of Credit which are fully cash collateralized) at such date less (A) if Advances under the Revolving Credit Facility in an aggregate principal Dollar Amount of $10,000,000 or less are
outstanding, cash and Cash Equivalents on hand or (B) if Advances under the Revolving Credit Facility in an aggregate principal Dollar Amount greater than $10,000,000 are outstanding, cash and Cash Equivalents on hand in an amount not to exceed
$5,000,000, in each case of the Borrower and its Subsidiaries to (b) Pro Forma EBITDA for the most recently completed Measurement Period. 
 “Senior Subordinated Indenture” means the Indenture dated as of June 11, 2003, among Esterline Technologies Corporation, as issuer, the subsidiary guarantors party thereto, and The Bank of
New York, as trustee, pursuant to which the Senior Subordinated Notes shall have been issued, as amended or otherwise modified to the extent permitted under Section 5.02(j). 
 “Senior Subordinated Notes” means the senior subordinated notes of the Borrower in an aggregate principal amount
of $175,000,000 to be issued pursuant to the Senior Subordinated Indenture. 
  

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 “Single Employer Plan” means a single employer plan, as defined
in Section 4001(a)(15) of ERISA, that (a) is maintained for employees of any Loan Party or any ERISA Affiliate and no Person other than the Loan Parties and the ERISA Affiliates or (b) was so maintained and in respect of which any
Loan Party or any ERISA Affiliate could reasonably be expected to have liability under Section 4069 of ERISA in the event such plan has been or were to be terminated. 
 “Solvent” and “Solvency” mean, with respect to any Person on a particular date, that on
such date (a) the fair value of the property of such Person is greater than the total amount of liabilities, including, without limitation, contingent liabilities, of such Person, (b) the present fair saleable value of the assets of such
Person is not less than the amount that will be required to pay the probable liability of such Person on its debts as they become absolute and matured, (c) such Person does not intend to, and does not believe that it will, incur debts or
liabilities beyond such Person’s ability to pay such debts and liabilities as they mature and (d) such Person is not engaged in business or a transaction, and is not about to engage in business or a transaction, for which such
Person’s property would constitute an unreasonably small capital. 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. 
 “Spot Rate” means,
with respect to any Foreign Currency, the rate quoted by Wachovia as the spot rate for the purchase by Wachovia of such Foreign Currency with U.S. dollars through its principal foreign exchange trading office at approximately 11:00 a.m. on the
date two Business Days prior to the date as of which the foreign exchange computation is made. 
 “Sterling Term
Loan Advance” has the meaning specified in Section 2.01(d). 
 “Sterling Term Loan
Commitment” means, with respect to any Sterling Term Loan Lender at any time, the amount set forth opposite such Lender’s name on Schedule I hereto under the caption “Sterling Term Loan Commitment”. 
 “Sterling Term Loan Lender” means any Lender that holds a Sterling Term Loan Commitment or a portion of the
outstanding Sterling Term Loan Advance. 
 “Sterling Term Note” means a promissory note of the
Borrower payable to the order of any Sterling Term Loan Lender, in substantially the form of Exhibit A-3 hereto, evidencing the aggregate indebtedness of the Borrower to such Lender resulting from the Sterling Term Loan Advance of such Sterling
Term Loan Lender, as amended, endorsed or replaced. 
 “Subordinated Debt” means any Debt of the
Borrower or any of its Subsidiaries which by its terms is subordinated in right of payment to the prior payment of the Obligations of the Borrower under or in respect of the Loan Documents and contains subordination and other terms reasonably
acceptable to the Administrative Agent, and shall include, without limitation, the Senior Subordinated Notes. 
 “Subsidiary” of any Person means any corporation, partnership, joint venture, limited liability company, trust or estate of which (or in which) more than 50% of (a) the issued and outstanding capital stock
having ordinary voting power to elect a majority of the Board of Directors of such corporation (irrespective of whether at the time capital stock of any other class or classes of such corporation shall or might have voting power upon the occurrence
of any contingency), (b) the interest in the capital or profits of such partnership, joint venture or limited liability company or (c) the beneficial interest in such trust or estate is at the time directly or indirectly owned or
controlled by such Person, by such Person and one or more of its other Subsidiaries or by one or more of such Person’s other Subsidiaries. 
  

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 “Subsidiary Guarantors” mean the Subsidiaries of the Borrower
listed on Schedule III hereto and each other Subsidiary of the Borrower that shall be required to execute and deliver a guaranty pursuant to Section 5.01(j) or (k). 
 “Subsidiary Guaranty” has the meaning specified in Section 3.01(a)(iv), together with each other guaranty and
guaranty supplement delivered pursuant to Section 5.01(j) or (k), in each case as amended. 
 “Surviving
Debt” means Debt of each Loan Party and its Subsidiaries outstanding immediately after giving effect to the occurrence of the Amendment No. 5 Effective Date (giving pro forma effect to the CMC Acquisition as of such date) and
described in Schedule 4.01(t) attached hereto, and shall include the 2007 Senior Notes. 
 “Swing Line
Advance” means an advance made by (a) the Swing Line Bank pursuant to Section 2.01(b) or (b) any Revolving Credit Lender pursuant to Section 2.02(b). 
 “Swing Line Bank” means the Swing Line Bank referred to in the Preliminary Statements to this Agreement and any
Eligible Assignees to which the Swing Line Commitment hereunder has been assigned pursuant to Section 8.07 so long as such Eligible Assignee expressly agrees to perform in accordance with their terms all obligations that by the terms of this
Agreement are required to be performed by it as a Swing Line Bank and notifies the Administrative Agent of its Applicable Lending Office and the amount of its Swing Line Commitment (which information shall be recorded by the Administrative Agent in
the Register), for so long as such Swing Line Bank or Eligible Assignee, as the case may be, shall have a Swing Line Commitment. 
 “Swing Line Borrowing” means a borrowing consisting of a Swing Line Advance made by the Swing Line Bank pursuant to Section 2.01(b) or the Revolving Credit Lenders pursuant to Section 2.02(b). 

“Swing Line Commitment” means, with respect to the Swing Line Bank at any time, the amount set forth opposite
the Swing Line Bank’s name on Schedule I hereto under the caption “Swing Line Commitment” or, if the Swing Line Bank has entered into an Assignment and Acceptances, set forth for the Swing Line Bank in the Register maintained by the
Administrative Agent pursuant to Section 8.07(d) as the Swing Line Bank’s “Swing Line Commitment”, as such amount may be reduced at or prior to such time pursuant to Section 2.05. 
 “Swing Line Facility” has the meaning specified in Section 2.01(b). 
 “Swing Line Note” means a promissory note of the Borrower payable to the order of the Swing Line Bank and any
other Lender that has made Swing Line Advances, in substantially the form of Exhibit A-2 hereto, evidencing the indebtedness of the Borrower to such Lender resulting from Swing Line Advances made by such Lender, as amended, endorsed or replaced.

 “Taxes” has the meaning specified in Section 2.12(a). 
 “Tax Returns” means all returns, reports, statements, declarations and schedules required to be filed with a
governmental or taxing authority with respect to any taxes. 
  

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 “Termination Date” means the earliest of (a) the date of
termination in whole of the Revolving Credit Commitments, the Letter of Credit Commitment and the Swing Line Commitment and the acceleration of the Advances pursuant to Section 6.01, (b) the date of termination in whole of the Revolving
Credit Commitments, the Letter of Credit Commitment and the Swing Line Commitment and the prepayment of the Advances pursuant to Sections 2.05 and 2.06 and (c) (i) with respect to the Sterling Term Loan Advance, November 14, 2010 and
(ii) with respect to all other Advances, the fifth anniversary of the Amendment No. 5 Effective Date. 
 “Treasurer” means the officer of certain of the Loan Parties holding such title, such holder as of the date hereof being Mr. Robert D. George. 
 “Treasury Regulations” means Treasury regulations promulgated under the Internal Revenue Code. 
 “Treaty on European Union” means the Treaty of Rome of March 25, 1957, as amended by the Single European Act
1986 and the Maastricht Treaty (which was signed at Maastricht on February 1, 1992 and came into force on November 1, 1993), as amended from time to time. 
 “2007 Indenture” means the note purchase agreement among the Borrower, certain of its Subsidiaries and the Trustee
party thereto dated as of March 1, 2007, pursuant to which the 2007 Senior Notes were issued, as amended or otherwise modified to the extent permitted under Section 5.02(j). 
 “2007 Senior Notes” means the senior notes of the Borrower in an aggregate principal amount of $175,000,000,
issued pursuant to the 2007 Indenture. 
 “Type” refers to the distinction between Advances bearing
interest at the Base Rate, Advances bearing interest at the Eurodollar Rate and Advances bearing Interest at the LIBOR Market Index Rate. 
 “U.K. Security Documents” means each of the charge over shares between Advanced Input Devices, Inc. and the Collateral Agent and the charge over shares between Kirkhill-TA Co. and the
Collateral Agent each dated on or about the date hereof. 
 “Unused Revolving Credit Commitment”
means, with respect to any Revolving Credit Lender at any time, an amount equal to (a) such Lender’s Revolving Credit Commitment at such time minus (b) the sum of (i) the aggregate principal Dollar Amount of all Revolving
Credit Advances, Swing Line Advances and Letter of Credit Advances made by such Lender (in its capacity as a Lender) and outstanding at such time plus (ii) if any Revolving Credit Advance is denominated in a Foreign Currency, an amount
equal to 5% of the Dollar Amount of such Revolving Credit Advance plus (iii) such Lender’s Pro Rata Share of (A) the aggregate Reserved Available Amount of all Letters of Credit outstanding at such time, (B) the aggregate
principal amount of all Letter of Credit Advances made by the Issuing Bank pursuant to Section 2.03(c) and outstanding at such time and (C) the aggregate principal amount of all Swing Line Advances made by the Swing Line Bank pursuant to
Section 2.01(b) and outstanding at such time. 
 “US Term Loan Advance” has the meaning specified
in Section 2.01(e). 
 “US Term Loan Commitment” means, with respect to any US Term Loan Lender
at any time, the amount set forth opposite such Lender’s name on Schedule I hereto under the caption “US Term Loan Commitment”. 
  

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 “US Term Loan Lender” means any Lender that holds a US Term Loan
Commitment or a portion of the outstanding US Term Loan Advance. 
 “US Term Note” means a promissory
note of the Borrower payable to the order of any US Term Loan Lender, in substantially the form of Exhibit A-4 hereto, evidencing the aggregate indebtedness of the Borrower to such Lender resulting from the US Term Loan Advance of such US Term
Loan Lender, as amended, endorsed or replaced. 
 “Voting Interests” means shares of capital stock
issued by a corporation, or equivalent Equity Interests in any other Person, the holders of which are ordinarily, in the absence of contingencies, entitled to vote for the election of directors (or persons performing similar functions) of such
Person, even if the right so to vote has been suspended by the happening of such a contingency. 
 “Wachovia” has the meaning specified in the Preliminary Statements to this Agreement. 
 “Withdrawal Liability” has the meaning specified in Part 1 of Subtitle E of Title IV of ERISA. 
 SECTION 1.02. Computation of Time Periods; Other Definitional Provisions. In this Agreement and the other Loan Documents 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”. References in the Loan Documents to any agreement or contract
“as amended” means and be a reference to such agreement or contract as amended, amended and restated, supplemented or otherwise modified from time to time in accordance with its terms. References in the Loan Documents to the
term “date hereof” means June 11, 2003 unless otherwise specified. 
 SECTION 1.03. Accounting Terms. All accounting
terms not specifically defined herein shall be construed in accordance with generally accepted accounting principles consistent with those in effect in the United States as of the Amendment No. 3 Effective Date (“GAAP”).

 SECTION 1.04. Currency Equivalents Generally. Any amount specified in this Agreement (other than in Articles II, VII and IX)
or any of the other Loan Documents to be in U.S. dollars shall also include the equivalent of such amount in any currency other than U.S. dollars, such equivalent amount to be determined at the rate of exchange quoted by Wachovia in New York, New
York at the close of business on the Business Day immediately preceding any date of determination thereof, to prime banks in New York, New York for the spot purchase in the New York foreign exchange market of such amount in U.S. dollars with such
other currency. 
  

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 ARTICLE II 
 AMOUNTS AND TERMS OF THE ADVANCES AND 
 THE LETTERS OF CREDIT 
 SECTION 2.01. The Advances and the Letters of Credit. (a) The Revolving Credit Advances. Each Revolving Credit Lender severally
agrees, on the terms and conditions hereinafter set forth, to make advances (each, a “Revolving Credit Advance”) in U.S. dollars and in Revolving Foreign Currencies to the Borrower from time to time on any Business Day during
the period from the Effective Date until the Termination Date in respect of the Revolving Credit Facility in a Dollar Amount for each such Advance not to exceed such Lender’s Unused Revolving Credit Commitment at such time; provided,
that the aggregate Dollar Amount of all Revolving Credit Advances denominated in a Foreign Currency shall not exceed $25,000,000. Each Revolving Credit Borrowing shall be in an aggregate Dollar Amount of $5,000,000 or an integral multiple of
$1,000,000 in excess thereof (other than a Borrowing the proceeds of which shall be used solely to repay or prepay in full outstanding Swing Line Advances or outstanding Letter of Credit Advances) and shall consist of Revolving Credit Advances made
simultaneously by the Revolving Credit Lenders ratably according to their Revolving Credit Commitments. Within the limits of each Revolving Credit Lender’s Unused Revolving Credit Commitment in effect from time to time, the Borrower may borrow
under this Section 2.01(a), prepay pursuant to Section 2.06(a) and reborrow under this Section 2.01(a). 
 (b)
The Swing Line Advances. The Swing Line Bank agrees, on the terms and conditions hereinafter set forth, to make Swing Line Advances in U.S. dollars to the Borrower from time to time on any Business Day during the period from the Effective
Date until the Termination Date in respect of the Revolving Credit Facility (i) in an aggregate amount not to exceed at any time outstanding the Swing Line Commitment (the “Swing Line Facility”) and (ii) in an
amount for each such Swing Line Borrowing not to exceed the aggregate of the Unused Revolving Credit Commitments of the Revolving Credit Lenders at such time. No Swing Line Advance shall be used for the purpose of funding the payment of principal of
any other Swing Line Advance. Each Swing Line Borrowing shall be in an amount of $100,000 or an integral multiple of $25,000 in excess thereof and shall be made as a Base Rate Advance. Within the limits of the Swing Line Facility and within the
limits referred to in clause (ii) above, the Borrower may borrow under this Section 2.01(b), repay pursuant to Section 2.04(d) or prepay pursuant to Section 2.06(a) and reborrow under this Section 2.01(b). 
 (c) The Letters of Credit. The Issuing Bank agrees, on the terms and conditions hereinafter set forth, to issue (or cause any of
its Affiliates that constitute a commercial bank to issue on its behalf) letters of credit in U.S. dollars and in Letter of Credit Foreign Currencies for the account of the Borrower from time to time on any Business Day during the period from the
Effective Date until the Termination Date in respect of the Revolving Credit Facility (provided that any Letter of Credit maturing later than five Business days prior to the Termination Date in respect of the Revolving Credit Facility shall
be cash-collateralized in the applicable currency in an amount equal to 110% of the face amount of such Letter of Credit no later than five Business Days prior to the Termination Date in respect of the Revolving Credit Facility) in an aggregate
Reserved Available Amount (i) for all Letters of Credit not to exceed at any time the lesser of (x) the Letter of Credit Facility at such time and (y) the Issuing Bank’s Letter of Credit Commitment at such time and (ii) for
each such Letter of Credit not to exceed the Unused Revolving Credit Commitments of the Revolving Credit Lenders at such time. No Letter of Credit shall have an expiration date (including all rights of the Borrower or the beneficiary to require
renewal) later than 30 days before the Termination Date in respect of the Revolving Credit Facility, but may by its terms be renewable annually upon written notice (a “Notice of Renewal”) given to the Issuing Bank that issued
such Letter of Credit and the Administrative Agent on or prior to any date for notice of renewal set forth in such Letter of Credit but in any event at least three Business Days prior to the date of the proposed 

  

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renewal of such Letter of Credit and upon fulfillment of the applicable conditions set forth in Article III unless the Issuing Bank has notified the Borrower
(with a copy to the Administrative Agent) on or prior to the date for notice of termination set forth in such Letter of Credit but in any event at least 30 Business Days prior to the date of automatic renewal of its election not to renew such Letter
of Credit (a “Notice of Termination”); provided that the terms of each Letter of Credit that is automatically renewable annually shall (x) require the Issuing Bank that issued such Letter of Credit to give the
beneficiary named in such Letter of Credit notice of any Notice of Termination, (y) permit such beneficiary, upon receipt of such notice, to draw under such Letter of Credit prior to the date such Letter of Credit otherwise would have been
automatically renewed and (z) not permit the expiration date (after giving effect to any renewal) of such Letter of Credit in any event to be extended to a date later than 30 days before the Termination Date in respect of the Revolving Credit
Facility. If either a Notice of Renewal is not given by the Borrower or a Notice of Termination is given by the Issuing Bank pursuant to the immediately preceding sentence, such Letter of Credit shall expire on the date on which it otherwise would
have been automatically renewed. Within the limits of the Letter of Credit Facility, and subject to the limits referred to above, the Borrower may request the issuance of Letters of Credit under this Section 2.01(c), repay any Letter of Credit
Advances resulting from drawings thereunder pursuant to Section 2.03(c) and request the issuance of additional Letters of Credit under this Section 2.01(c). The defined term “Letters of Credit”, as used in this
Agreement, shall include each letter of credit issued pursuant to this Section 2.01(c) and each of the Existing Letters of Credit. 
 Notwithstanding anything to the contrary set forth in this Agreement, a Letter of Credit issued hereunder may contain a statement to the effect that such Letter of Credit is issued for the account of a Subsidiary of
the Borrower; provided that, notwithstanding such statement, the Borrower shall be the actual account party for all purposes of this Agreement for such Letter of Credit and such statement shall not affect the Borrower’s obligations
hereunder with respect to such Letter of Credit. 
 (d) The Sterling Term Loan Advance. Each Sterling Term Loan Lender
severally agrees, on the terms and conditions hereinafter set forth, to make an advance (the “Sterling Term Loan Advance”) to the Borrower on the Amendment No. 4 Effective Date in an amount denominated in British Pounds
Sterling equal to such Lender’s Sterling Term Loan Commitment. 
 (e) The US Term Loan Advance. Each US Term Loan
Lender severally agrees, on the terms and conditions hereinafter set forth, to make an advance (the “US Term Loan Advance”) to the Borrower on the Amendment No. 7 Effective Date in an amount denominated in U.S. dollars
equal to such Lender’s US Term Loan Commitment. 
 SECTION 2.02. Making the Advances. (a) Except as otherwise provided in
Section 2.02(b), 2.02(h), 2.02(i) or 2.03, each Borrowing (other than the Sterling Term Loan Advance and the US Term Loan Advance) shall be made on notice, given not later than 2:00 P.M. (New York City time) on the (i) third
Business Day prior to the date of the proposed Borrowing in the case of a Borrowing consisting of Eurodollar Rate Advances denominated in U.S. dollars, (ii) fourth Business Day prior to the date of the proposed Borrowing in the case of a
Borrowing consisting of Eurodollar Rate Advances denominated in Foreign Currencies or (iii) the first Business Day prior to the date of the proposed Borrowing in the case of a Borrowing consisting of Base Rate Advances denominated in U.S.
dollars, by the Borrower to the Administrative Agent, which shall give to each Appropriate Lender prompt notice thereof. Each such notice of a Borrowing (a “Notice of Borrowing”) shall be by telephone, confirmed immediately
in writing, or telex or telecopier, in substantially the form of Exhibit B hereto, specifying therein the requested (i) date of such Borrowing, (ii) Facility under which such Borrowing is to be made, (iii) Type of Advances comprising
such Borrowing, (iv) aggregate amount of such Borrowing, (iv) the applicable currency of such Borrowing and (vi) in the case of a Borrowing consisting of Eurodollar Rate Advances, initial Interest Period for each such Advance. Each
Appropriate Lender shall, before 2:00 P.M. 

  

 27 

 
(New York City time) on the date of such Borrowing, make available for the account of its Applicable Lending Office to the Administrative Agent at the
Administrative Agent’s Account, in same day funds and in the applicable currency, such Lender’s ratable portion of such Borrowing in accordance with the respective Commitments under the applicable Facility of such Lender and the other
Appropriate Lenders. After the Administrative Agent’s receipt of such funds and upon fulfillment of the applicable conditions set forth in Article III, the Administrative Agent will make such funds available to the Borrower by crediting
the Borrower’s Account; provided, however, that, in the case of any Revolving Credit Borrowing denominated in U.S. dollars, the Administrative Agent shall first make a portion of such funds equal to the aggregate principal amount of any
Swing Line Advances and Letter of Credit Advances made by the Swing Line Bank or the Issuing Bank, as the case may be, and by any other Revolving Credit Lender and outstanding on the date of such Revolving Credit Borrowing, plus interest accrued and
unpaid thereon to and as of such date, available to the Swing Line Bank or the Issuing Bank, as the case may be, and such other Revolving Credit Lenders for repayment of such Swing Line Advances and Letter of Credit Advances. 
 (b) Each Swing Line Borrowing shall be made on notice, given not later than 2:00 P.M. (New York City time) on the date of the
proposed Swing Line Borrowing, by the Borrower to the Swing Line Bank and the Administrative Agent. Each such notice of a Swing Line Borrowing (a “Notice of Swing Line Borrowing”) shall be by telephone, confirmed immediately
in writing, or telex or telecopier, specifying therein the requested (i) date of such Borrowing, (ii) amount of such Borrowing and (iii) maturity of such Borrowing (which maturity shall be no later than the seventh day after the
requested date of such Borrowing). The Swing Line Bank will make the amount of the requested Swing Line Advances available to the Administrative Agent at the Administrative Agent’s Account, in same day funds. After the Administrative
Agent’s receipt of such funds and upon fulfillment of the applicable conditions set forth in Article III, the Administrative Agent will make such funds available to the Borrower by crediting the Borrower’s Account. Upon written demand
by the Swing Line Bank, with a copy of such demand to the Administrative Agent, or in any event automatically upon the maturity of each Swing Line Advance, each other Revolving Credit Lender shall purchase from the Swing Line Bank, and the Swing
Line Bank shall sell and assign to each such other Revolving Credit Lender, such other Lender’s Pro Rata Share of such outstanding Swing Line Advance as of the date of such demand, by making available for the account of its Applicable Lending
Office to the Administrative Agent for the account of the Swing Line Bank, by deposit to the Administrative Agent’s Account, in same day funds, an amount equal to the portion of the outstanding principal amount of such Swing Line Advance to be
purchased by such Lender. The Borrower hereby agrees to each such sale and assignment. Each Revolving Credit Lender agrees to purchase its Pro Rata Share of an outstanding Swing Line Advance on (i) the Business Day on which demand therefor is
made by the Swing Line Bank, or in any event automatically upon the maturity of each Swing Line Advance, provided that notice of such demand is given not later than 2:00 P.M. (New York City time) on such Business Day or
(ii) the first Business Day next succeeding such demand if notice of such demand is given after such time. Upon any such assignment by the Swing Line Bank to any other Revolving Credit Lender of a portion of a Swing Line Advance, the Swing Line
Bank represents and warrants to such other Lender that the Swing Line Bank is the legal and beneficial owner of such interest being assigned by it, but makes no other representation or warranty and assumes no responsibility or recourse with respect
to such Swing Line Advance, the Loan Documents or any Loan Party. If and to the extent that any Revolving Credit Lender shall not have so made the amount of such Swing Line Advance available to the Administrative Agent, such Revolving Credit Lender
agrees to pay to the Administrative Agent forthwith on demand such amount together with interest thereon, for each day from the date of demand by the Swing Line Bank until the date such amount is paid to the Administrative Agent, at the Federal
Funds Rate. If such Lender shall pay to the Administrative Agent such amount for the account of the Swing Line Bank on any Business Day, such amount so paid in respect of principal shall constitute a Swing Line Advance made by such Lender on such
Business Day for purposes of this Agreement, and the outstanding principal amount of the Swing Line Advance made by the Swing Line Bank shall be reduced by such amount on such Business Day. 
  

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 (c) Anything in subsection (a) above to the contrary notwithstanding, (i) the
Borrower may not select Eurodollar Rate Advances for the initial Borrowing hereunder or for any Borrowing if the aggregate Dollar Amount of such Borrowing is less than $5,000,000 or if the obligation of the Appropriate Lenders to make Eurodollar
Rate Advances shall then be suspended pursuant to Section 2.09 or 2.10, (ii) the Revolving Credit Advances may not be outstanding as part of more than 5 separate Borrowings, (iii) the Borrower may not request that any Advances be made
as LIBOR Market Index Rate Advances and (iv) all Revolving Credit Advances denominated in a Foreign Currency shall be made as Eurodollar Rate Advances. 
 (d) Each Notice of Borrowing and each Notice of Swing Line Borrowing shall be irrevocable and binding on the Borrower. In the case of any
Borrowing that the related Notice of Borrowing specifies is to be comprised of Eurodollar Rate Advances, the Borrower shall indemnify each Appropriate Lender against any loss, cost or expense incurred by such Lender as a result of any failure to
fulfill on or before the date specified in such Notice of Borrowing for such Borrowing the applicable conditions set forth in Article III, including, without limitation, any loss (including loss of anticipated profits), cost or expense incurred
by reason of the liquidation or reemployment of deposits or other funds acquired by such Lender to fund the Advance to be made by such Lender as part of such Borrowing when such Advance, as a result of such failure, is not made on such date.

 (e) Unless the Administrative Agent shall have received written notice from an Appropriate Lender prior to the date of any
Borrowing under a Facility under which such Lender has a Commitment that such Lender will not make available to the Administrative Agent such Lender’s ratable portion of such Borrowing, the Administrative Agent may assume that such Lender has
made such portion available to the Administrative Agent on the date of such Borrowing in accordance with subsection (a) of this Section 2.02 and the Administrative Agent may, in reliance upon such assumption, make available to the Borrower
on such date a corresponding amount. If and to the extent that such Lender shall not have so made such ratable portion available to the Administrative Agent, such Lender and the Borrower severally agree to repay or pay to the Administrative Agent
forthwith on demand such corresponding amount and to pay interest thereon, for each day from the date such amount is made available to the Borrower until the date such amount is repaid or paid to the Administrative Agent, at (i) in the case of
the Borrower, the interest rate applicable at such time under Section 2.07 to Advances comprising such Borrowing and (ii) in the case of such Lender, the Federal Funds Rate. If such Lender shall pay to the Administrative Agent such
corresponding amount, such amount so paid shall constitute such Lender’s Advance as part of such Borrowing for all purposes. 
 (f) The failure of any Lender to make the Advance to be made by it as part of any Borrowing shall not relieve any other Lender of its obligation, if any, hereunder to make its Advance on the date of such Borrowing, but no Lender shall be
responsible for the failure of any other Lender to make the Advance to be made by such other Lender on the date of any Borrowing. 
 (g) The Administrative Agent may conclusively rely on the purported genuineness of all telephonic notices, without any responsibility or liability, except for its own gross negligence or willful misconduct. 
 (h) The Sterling Term Loan Advance shall be made on the Amendment No. 4 Effective Date as a Eurodollar Rate Advance. Each Appropriate
Lender shall, before 2:00 P.M. (New York City time) on the Amendment No. 4 Effective Date, make available for the account of its Applicable Lending Office to the Administrative Agent at the Administrative Agent’s Account (or such

  

 29 

 
other account as directed by the Administrative Agent), in same day funds and in British Pounds Sterling, such Lender’s ratable portion of the Sterling
Term Loan Advance in accordance with the respective Sterling Term Loan Commitments. After the Administrative Agent’s receipt of such funds, the Administrative Agent will make such funds available to the Borrower by crediting the Borrower’s
Account. 
 (i) The US Term Loan Advance shall be made on the Amendment No. 7 Effective Date as a Eurodollar Rate Advance
with an Interest Period as selected by the Borrower. Each Appropriate Lender shall, before 2:00 P.M. (New York City time) on the Amendment No. 7 Effective Date, make available for the account of its Applicable Lending Office to the
Administrative Agent at the Administrative Agent’s Account (or such other account as directed by the Administrative Agent), in same day funds and in U.S. dollars, such Lender’s ratable portion of the US Term Loan Advance in accordance with
the respective US Term Loan Commitments. After the Administrative Agent’s receipt of such funds, the Administrative Agent will make such funds available to the Borrower by crediting the Borrower’s Account. 
 SECTION 2.03. Issuance of and Drawings and Reimbursement Under Letters of Credit. (a) Request for Issuance. Each Letter of Credit
shall be issued upon notice, given not later than 11:00 A.M. (New York City time) on the fifth Business Day prior to the date of the proposed issuance of such Letter of Credit, by the Borrower to the Issuing Bank, which shall give to the
Administrative Agent and each Revolving Credit Lender prompt notice thereof by telecopier or electronic communication. Each such notice of issuance of a Letter of Credit (a “Notice of Issuance”) shall be by telephone,
confirmed immediately in writing, or telecopier or electronic communication, specifying therein the requested (i) date of such issuance (which shall be a Business Day), (ii) Available Amount of such Letter of Credit (which amount shall not
be less than $50,000 or shall be otherwise acceptable to the Issuing Bank), (iii) expiration date of such Letter of Credit, (iv) name and address of the beneficiary of such Letter of Credit, (v) currency and face amount of such Letter
of Credit and (vi) form of such Letter of Credit, and shall be accompanied by such application and agreement for letter of credit as the Issuing Bank may specify to the Borrower for use in connection with such requested Letter of Credit
(together with such application and agreements with respect to the Existing Letters of Credit, each a “Letter of Credit Agreement”). If (A) the requested form of such Letter of Credit is acceptable to the Issuing Bank in
its sole discretion and (B) it has not received notice of objection to such issuance from the Required Lenders, the Issuing Bank will, upon fulfillment of the applicable conditions set forth in Article III, make such Letter of Credit
available to the Borrower at its office referred to in Section 8.02 or as otherwise agreed with the Borrower in connection with such issuance. In the event and to the extent that the provisions of any Letter of Credit Agreement shall conflict
with this Agreement, the provisions of this Agreement shall govern. 
 (b) Letter of Credit Reports. The Issuing Bank
shall furnish (i) to the Administrative Agent on the first Business Day of each week a written report summarizing issuance and expiration dates of Letters of Credit issued during the previous week and drawings during such week under all Letters
of Credit, (ii) to each Revolving Credit Lender on the first Business Day of each month a written report summarizing issuance and expiration dates of Letters of Credit issued during the preceding month and drawings during such month under all
Letters of Credit and (iii) to the Administrative Agent and each Revolving Credit Lender on the first Business Day of each calendar quarter a written report setting forth the average daily aggregate Available Amount during the preceding
calendar quarter of all Letters of Credit. 
 (c) Participations in Letters of Credit. The Issuing Bank shall be
deemed, without further action by any party hereto, (i) with respect to Letters of Credit issued pursuant to Section 2.01(c) hereof, upon the issuance of a Letter of Credit by the Issuing Bank and (ii) with respect to the Existing

  

 30 

 
Letters of Credit, on the Amendment No. 5 Effective Date, to have sold to each Revolving Credit Lender, and each such Revolving Credit Lender shall be
deemed, without further action by any party hereto, to have purchased from the Issuing Bank, a participation in such Letter of Credit in an amount for each Revolving Credit Lender equal to such Lender’s Pro Rata Share of the Available Amount of
such Letter of Credit, effective upon the issuance of such Letter of Credit. In consideration and in furtherance of the foregoing, each Revolving Credit Lender hereby absolutely and unconditionally agrees to pay such Lender’s Pro Rata Share of
each Letter of Credit Advance made by the Issuing Bank and not reimbursed by the Borrower forthwith on the date due as provided in Section 2.04(c) (or which has been so reimbursed but must be returned or restored by the Issuing Bank because of
the occurrence of an event specified in Section 6.01(f) or otherwise) by making available for the account of its Applicable Lending Office to the Administrative Agent for the account of the Issuing Bank by deposit to the Administrative
Agent’s Account, in same day funds and in U.S. dollars, an amount equal to such Lender’s Pro Rata Share of such Letter of Credit Advance. Each Revolving Credit Lender acknowledges and agrees that its obligation to acquire participations
pursuant to this Section 2.03(c) in respect of Letters of Credit is absolute and unconditional and shall not be affected by any circumstance whatsoever, including the occurrence and continuance of a Default or an Event of Default or the
termination of the Commitments, and that each such payment shall be made without any off-set, abatement, withholding or reduction whatsoever. If and to the extent that any Revolving Credit Lender shall not have so made the amount of such Letter of
Credit Advance available to the Administrative Agent, such Revolving Credit Lender agrees to pay to the Administrative Agent forthwith on demand such amount together with interest thereon, for each day from the date such Letter of Credit Advance is
due pursuant to Section 2.04(c) until the date such amount is paid to the Administrative Agent, at the Federal Funds Rate for its account or the account of the Issuing Bank. If such Lender shall pay to the Administrative Agent such amount for
the account of the Issuing Bank on any Business Day, such amount so paid in respect of principal shall constitute a Letter of Credit Advance made by such Lender on such Business Day for purposes of this Agreement, and the outstanding principal
amount of the Letter of Credit Advance made by the Issuing Bank shall be reduced by such amount on such Business Day. 
 (d)
Drawing and Reimbursement. The payment by the Issuing Bank of a draft drawn under any Letter of Credit shall constitute for all purposes of this Agreement the making by the Issuing Bank of a Letter of Credit Advance, which shall be a Base
Rate Advance denominated in U.S. dollars, in the Dollar Amount of such draft. 
 (e) Failure to Make Letter of Credit
Advances. The failure of any Lender to make the Letter of Credit Advance to be made by it on the date specified in Section 2.03(c) shall not relieve any other Lender of its obligation hereunder to make its Letter of Credit Advance on such
date, but no Lender shall be responsible for the failure of any other Lender to make the Letter of Credit Advance to be made by such other Lender on such date. 
 (f) Applicability of ISP98. Unless otherwise expressly agreed by the Issuing Bank and the Borrower when a Letter of Credit is
issued, the rules of the “International Standby Practices 1998” published by the Institute of International Banking Law & Practice (or such later version thereof as may be in effect at the time of issuance) shall apply to each
Letter of Credit. 
 (g) Existing Letters of Credit. The Borrower’s reimbursement obligations in respect of each
Existing Letter of Credit, and each Revolving Credit Lender’s participation obligations in connection therewith, shall be governed by the terms of this Agreement. 
 SECTION 2.04. Repayment of Advances. (a) Revolving Credit Advances. The Borrower shall repay to the Administrative Agent for the ratable account of the Revolving Credit Lenders on the Termination
Date in respect of the Revolving Credit Facility the aggregate principal amount of the Revolving Credit Advances then outstanding. 
  

 31 

 (b) Swing Line Advances. The Borrower shall repay to the Administrative Agent for
the account of the Swing Line Bank and each other Revolving Credit Lender that has made a Swing Line Advance the outstanding principal amount of each Swing Line Advance made by each of them on the earlier of the maturity date specified in the
applicable Notice of Swing Line Borrowing (which maturity shall be no later than the seventh day after the requested date of such Borrowing) and the Termination Date in respect of the Revolving Credit Facility. 
 (c) Letter of Credit Advances. (i) The Borrower shall repay to the Administrative Agent in U.S. dollars for the account of the
Issuing Bank and each other Revolving Credit Lender that has made a Letter of Credit Advance on the earlier of demand and the Termination Date in respect of the Revolving Credit Facility the outstanding principal amount of each Letter of Credit
Advance made by each of them. 
 (ii) The Obligations of the Borrower and the Revolving Credit Lenders under this Agreement,
any Letter of Credit Agreement and any other agreement or instrument relating to any Letter of Credit shall be unconditional and irrevocable, and shall be paid strictly in accordance with the terms of this Agreement, such Letter of Credit Agreement
and such other agreement or instrument under all circumstances, including, without limitation, the following circumstances: 
 (A) any lack of validity or enforceability of any Loan Document, any Letter of Credit Agreement, any Letter of Credit or any other agreement or instrument relating thereto (all of the foregoing being, collectively, the “L/C
Related Documents”); 
 (B) any change in the time, manner or place of payment of, or in any other term of, all
or any of the Obligations of the Borrower in respect of any L/C Related Document or any other amendment or waiver of or any consent to departure from all or any of the L/C Related Documents; 
 (C) the existence of any claim, set-off, defense or other right that the Borrower may have at any time against any beneficiary or any
transferee of a Letter of Credit (or any Persons for which any such beneficiary or any such transferee may be acting), the Issuing Bank or any other Person, whether in connection with the transactions contemplated by the L/C Related Documents or any
unrelated transaction; 
 (D) any statement or any 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; 
 (E)
payment by the Issuing Bank under a Letter of Credit against presentation of a draft, certificate or other document that does not strictly comply with the terms of such Letter of Credit; 
 (F) any exchange, release or non-perfection of any Collateral or other collateral, or any release or amendment or waiver of or consent to
departure from the Subsidiary Guaranties or any other guarantee, for all or any of the Obligations of the Borrower in respect of the L/C Related Documents; 
 (G) any fluctuation in currency exchange rates; or 
  

 32 

 (H) any other circumstance or happening whatsoever, whether or not similar to any of the
foregoing, including, without limitation, any other circumstance that might otherwise constitute a defense available to, or a discharge of, the Borrower or a guarantor. 
 (d) Sterling Term Loan Advance. The principal amount of the Sterling Term Loan Advance shall be repaid to the Sterling Term Loan
Lenders in sixteen (16) consecutive quarterly installments denominated in British Pounds Sterling (as reduced pursuant to Section 2.06(a) or 2.06(b)) based on the following percentages of the initial amount (expressed in British Pounds
Sterling) of the Sterling Term Loan Advance: 
  

			
	 Principal Amortization Payment Date
	  	 Principal Amortization Payment

	 March 31, 2007
	  	1.25%
	 June 30, 2007
	  	1.25%
	 September 30, 2007
	  	1.25%
	 December 31, 2007
	  	1.25%
	 March 31, 2008
	  	2.50%
	 June 30, 2008
	  	2.50%
	 September 30, 2008
	  	2.50%
	 December 31, 2008
	  	2.50%
	 March 31, 2009
	  	5.00%
	 June 30, 2009
	  	5.00%
	 September 30, 2009
	  	5.00%
	 December 31, 2009
	  	5.00%
	 March 31, 2010
	  	16.25%
	 June 30, 2010
	  	16.25%
	 September 30, 2010
	  	16.25%
	 Termination Date in respect of the Sterling Term Loan Advance
	  	16.25% or the remaining amount of the Sterling Term Loan Advance

  

 33 

 (e) US Term Loan Advance. The principal amount of the US Term Loan Advance shall
be repaid to the US Term Loan Lenders in nine (9) consecutive quarterly installments denominated in U.S. dollars on the following dates and based on the following percentages of the initial amount (expressed in U.S. dollars) of the US Term Loan
Advance (as reduced pursuant to Section 2.06(a) or 2.06(b)): 
  

			
	 Principal Amortization Payment Date
	  	 Principal Amortization Payment

	 June 30, 2009
	  	0%
	 September 30, 2009
	  	0%
	 December 31, 2009
	  	0%
	 March 31, 2010
	  	1.25%
	 June 30, 2010
	  	1.25%
	 September 30, 2010
	  	1.25%
	 December 31, 2010
	  	1.25%
	 March 31, 2011
	  	2.50%
	 June 30, 2011
	  	2.50%
	 September 30, 2011
	  	2.50%
	 December 31, 2011
	  	2.50%
	 Termination Date in respect of the US Term Loan Advance
	  	85.00% or the remaining amount of the US Term Loan Advance

 SECTION 2.05. Termination or Reduction of the Commitments. (a) Optional. The
Borrower may, upon at least five Business Days’ written notice to the Administrative Agent, terminate in whole or reduce in part the unused portions of the Swing Line Facility and the Letter of Credit Facility and the Unused Revolving Credit
Commitments; provided, however, that each partial reduction of a Facility (i) shall be in an aggregate Dollar Amount of at least $5,000,000 or an integral multiple of $1,000,000 in excess thereof and (ii) shall be made ratably among
the Appropriate Lenders in accordance with their Commitments with respect to such Facility. 
 (b) Mandatory.
(i) The Letter of Credit Facility shall be permanently reduced from time to time on the date of each reduction in the Revolving Credit Facility by the amount, if any, by which the amount of the Letter of Credit Facility exceeds the Revolving
Credit Facility after giving effect to such reduction of the Revolving Credit Facility. 
 (ii) The Swing Line Facility shall
be permanently reduced from time to time on the date of each reduction in the Revolving Credit Facility by the amount, if any, by which the amount of the Swing Line Facility exceeds the Revolving Credit Facility after giving effect to such reduction
of the Revolving Credit Facility. 
  

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 SECTION 2.06. Prepayments. (a) Optional. The Borrower may, upon at least (i) one
Business Day’s notice (which may be telephonic, with prompt written notice to confirm such notice and with no liability on the part of the Administrative Agent for acting on such notice) in the case of Base Rate Advances and LIBOR Market Index
Rate Advances denominated in U.S. dollars, (ii) three Business Days’ notice in the case of Eurodollar Rate Advances denominated in U.S. dollars and (iii) four Business Days’ notice in the case of Advances denominated in Foreign
Currencies, in each case to the Administrative Agent stating the proposed date and aggregate principal amount of the prepayment, and if such notice is given the Borrower shall, prepay the outstanding aggregate principal amount of the Advances
comprising part of the same Borrowing in whole or ratably in part, together with accrued interest to the date of such prepayment on the aggregate principal amount prepaid; provided, however, that (i) each partial prepayment shall be
in an aggregate principal Dollar Amount of $5,000,000 or an integral multiple of $1,000,000 in excess thereof (or, if less, the aggregate amount of Revolving Credit Borrowings then outstanding) and (ii) if any prepayment of a Eurodollar Rate
Advance is made on a date other than the last day of an Interest Period for such Advance, the Borrower shall also pay any amounts owing pursuant to Section 8.04(c). To the extent the Borrower elects to prepay the Sterling Term Loan Advance or
the US Term Loan Advance, amounts prepaid under this Section 2.06(a) shall be applied ratably to the remaining principal installments thereof. 
 (b) Mandatory. (i) The Borrower shall, on each applicable Business Day, prepay an aggregate principal amount of the Revolving Credit Advances comprising part of the same Borrowings, the Letter of Credit
Advances and the Swing Line Advances and deposit an amount in the Deposit Account in an amount equal to the amount by which (A) the sum of the aggregate principal Dollar Amount of (x) the Revolving Credit Advances, (y) the Letter of
Credit Advances and (z) the Swing Line Advances then outstanding plus the aggregate Reserved Available Amount of all Letters of Credit then outstanding exceeds (B) the Revolving Credit Facility on such Business Day. 
 (ii) The Borrower shall, on each applicable Business Day, pay to the Administrative Agent for deposit in the Deposit Account an amount
sufficient to cause the aggregate amount on deposit in the Deposit Account to equal the amount by which the aggregate Reserved Available Amount of all Letters of Credit then outstanding exceeds the Letter of Credit Facility on such Business Day.

 (iii) Promptly upon receipt by any Loan Party or any Subsidiary of proceeds from any Debt Issuance, the Borrower shall
prepay the Advances and cash collateralize the Letters of Credit in an amount equal to one hundred percent (100%) of the Net Cash Proceeds of such Debt Issuance (such prepayment to be applied as set forth in clause (viii) below);
provided, however, that the Borrower shall not be required to prepay the Advances or cash collateralize the Letters of Credit with the Net Cash Proceeds of any Debt Issuance (A) to the extent such proceeds are used within twelve
(12) months of such Debt Issuance to consummate an acquisition permitted pursuant to Section 5.02(f)(viii) or (ix) hereof so long as, immediately after giving effect to such Debt Issuance and such acquisition, the Borrower and its
Subsidiaries shall be in pro forma compliance with all of the covenants set forth in Section 5.04, such compliance to be determined on the basis of the financial information most recently delivered to the Administrative Agent pursuant to
Section 5.03 as though such Debt Issuance and such acquisition had been consummated as of the first day of the fiscal period covered thereby or (B) if, after giving effect thereto on a pro forma basis, the Senior Leverage Ratio (as
determined by the Administrative Agent) of the Borrower and its Subsidiaries is less than 3.5:1.0. 
 (iv) Promptly upon
receipt by any Loan Party or any Subsidiary of proceeds from any Equity Issuance, the Borrower shall prepay the Advances and cash collateralize the Letters of Credit in an amount equal to fifty percent (50%) of the Net Cash Proceeds of such
Equity Issuance (such prepayment to be applied as set forth in clause (viii) below); provided, however, that the Borrower shall not be required to prepay the Advances or cash collateralize the Letters of Credit with the Net Cash Proceeds
of 

  

 35 

 
any Equity Issuance if, after giving effect, on a pro forma basis, to the Equity Issuance as well as any permitted acquisition to be financed in whole or in
part by the Equity Issuance, the Senior Leverage Ratio (as determined by the Administrative Agent) of the Borrower and its Subsidiaries is less than 3.5:1.0. 
 (v) Promptly following any Asset Disposition or related series of Asset Dispositions for which the Net Cash Proceeds exceeds $20,000,000,
the Borrower shall prepay the Advances and cash collateralize the Letters of Credit in an amount equal to one hundred percent (100%) of the Net Cash Proceeds derived from such Asset Disposition (or related series of Asset Dispositions) (such
prepayment to be applied as set forth in clause (viii) below); provided, however, that so long as no Default or Event of Default has occurred and is continuing at the time of such Asset Disposition, such Net Cash Proceeds shall not be
required to be so applied to the extent the Borrower delivers to the Administrative Agent promptly following such Asset Disposition a certificate stating that it intends to use such Net Cash Proceeds to acquire like assets used in the primary
business of the Borrower and its Subsidiaries within 365 days of the receipt of such Net Cash Proceeds, it being expressly agreed that any Net Cash Proceeds not so reinvested within such 365 day period shall be applied to prepay the Advances and
cash collateralize the Letters of Credit immediately thereafter (such prepayment to be applied as set forth in clause (viii) below). 
 (vi) Promptly upon receipt by any Loan Party of proceeds from any Recovery Event in excess of $20,000,000, the Borrower shall prepay the Advances and cash collateralize the Letters of Credit in an amount equal to one
hundred percent (100%) of such cash proceeds; provided, however, that, so long as no Default or Event of Default has occurred and is continuing at the time of such Recovery Event, no prepayment of any such Net Cash Proceeds shall be
required to the extent the Borrower delivers to the Administrative Agent promptly following such Recovery Event a certificate stating that it intends to use such Net Cash Proceeds to repair the damaged assets or acquire like assets used in the
primary business of the Borrower and its Subsidiaries within 365 days of the receipt of such Net Cash Proceeds, it being expressly agreed that any Net Cash Proceeds not so reinvested within such 365 day period shall be applied to prepay the Advances
and cash collateralize the Letters of Credit immediately thereafter (such prepayment to be applied as set forth in clause (viii) below). 
 (vii) Within 30 days after the receipt by the Administrative Agent of the financial statements required by Section 5.03(b) for any fiscal year of the Borrower (commencing with the fiscal year ending
October 26, 2007), if the Leverage Ratio of the Borrower and its Subsidiaries exceeds 3.0:1.0 as of the end of such fiscal year, the Borrower shall prepay the Advances and cash collateralize the Letters of Credit in an amount equal to
(A) fifty percent (50%) of the Excess Cash Flow for such fiscal year minus (B) optional prepayments of the Sterling Term Loan Advance or the US Term Loan Advance during such period (such prepayments to be applied as set forth
in clause (viii) below). 
 (viii) (A) Prepayments of the Revolving Credit Facility made pursuant to clause
(i) shall be first applied to prepay Letter of Credit Advances then outstanding until such Advances are paid in full, second applied to prepay Swing Line Advances then outstanding until such Advances are paid in full, and
third applied to prepay Revolving Credit Advances then outstanding comprising part of the same Borrowings until such Advances are paid in full and fourth deposited in the Deposit Account to cash collateralize 100% of the Reserved
Available Amount of the Letters of Credit then outstanding. Upon the drawing of any Letter of Credit for which funds are on deposit in the Deposit Account, such funds shall be applied to reimburse the Issuing Bank or Revolving Credit Lenders, as
applicable. 
 (B) Prepayments made pursuant to clauses (ii)-(vii) above shall be first applied to the US Term
Loan Advance (pro rata to the remaining scheduled principal payments), second applied to the Sterling Term Loan Advance (pro rata to the remaining scheduled principal payments), 

  

 36 

 
third applied to prepay Letter of Credit Advances then outstanding until such Advances are paid in full, fourth applied to prepay Swing Line
Advances then outstanding until such Advances are paid in full (without a corresponding reduction of the Swing Line Commitment), fifth applied to prepay Revolving Credit Advances then outstanding comprising part of the same Borrowings until
such Advances are paid in full (without a corresponding reduction of the aggregate Revolving Credit Commitments) and sixth deposited in the Deposit Account to cash collateralize 100% of the Reserved Available Amount of the Letters of Credit
then outstanding (without a corresponding reduction of the Letter of Credit Commitment). 
 (ix) All prepayments under this
subsection (b) shall be made together with accrued interest to the date of such prepayment on the principal amount prepaid, together with any amounts owing pursuant to Section 8.04(c). If any payment of Eurodollar Rate Advances otherwise
required to be made under this Section 2.06(b) would be made on a day other than the last day of the applicable Interest Period therefor, the Borrower may direct the Administrative Agent to (and if so directed, the Administrative Agent shall)
deposit such payment in the Deposit Account until the last day of the applicable Interest Period at which time the Administrative Agent shall apply the amount of such payment to the prepayment of such Advances; provided, however, that such
Advances shall continue to bear interest as set forth in Section 2.07 until the last day of the applicable Interest Period therefor. 
 SECTION 2.07. Interest. (a) Scheduled Interest. The Borrower shall pay interest on the unpaid principal amount of each Advance owing to each Lender from the date of such Advance until such principal amount shall be paid
in full, at the following rates per annum: 
 (i) Base Rate Advances. During such periods as such Advance is a Base
Rate Advance, a rate per annum equal at all times to the sum of (A) the Base Rate in effect from time to time plus (B) the Applicable Margin in effect from time to time, payable in arrears quarterly on the last day of each February,
May, August and November during such periods and on the date such Base Rate Advance shall be Converted or paid in full. 
 (ii) Eurodollar Rate Advances. During such periods as such Advance is a Eurodollar Rate Advance, a rate per annum equal at all times during each Interest Period for such Advance to the sum of (A) the Eurodollar Rate for such
Interest Period for such Advance plus (B) the Applicable Margin in effect on the first day of such Interest Period, payable in arrears on the last day of such Interest Period and, if such Interest Period has a duration of more than three
months, on each day that occurs during such Interest Period every three months from the first day of such Interest Period and on the date such Eurodollar Rate Advance shall be Converted or paid in full. 
 (iii) LIBOR Market Index Rate Advances. During such period as such Advance is a LIBOR Market Index Rate Advance, a rate per annum
equal at all times to the sum of (A) the LIBOR Market Index Rate in effect from time to time plus (B) the Applicable Margin in effect from time to time, payable in arrears quarterly on the last day of each February, May, August and
November during such periods and on the date such LIBOR Market Index Rate Advance shall be Converted or paid in full. 
 (b)
Default Interest. Upon the occurrence and during the continuance of an Event of Default, the Administrative Agent may, and upon the request of the Required Lenders shall, require that the Borrower pay interest (“Default
Interest”) on (i) the unpaid principal amount of each Advance owing to each Lender Party, payable in arrears on the dates referred to in clause (i), (ii) or (iii) of Section 2.07(a), as applicable, and on demand, at
a rate per annum equal at all times to 2% per annum above the highest rate per annum pursuant to the definition of “Applicable Margin”, and (ii) to the fullest extent permitted by applicable law, the amount of any
interest, fee or other amount payable under this 

  

 37 

 
Agreement or any other Loan Document to any Agent or any Lender Party that is not paid when due, from the date such amount shall be due until such amount
shall be paid in full, payable in arrears on the date such amount shall be paid in full and on demand, at a rate per annum equal at all times to 2% per annum above the rate per annum required to be paid, in the case of interest, on the Type of
Advance on which such interest has accrued pursuant to clause (i), (ii) or (iii) of Section 2.07(a), as applicable, and, in all other cases, on Base Rate Advances pursuant to clause (i) of Section 2.07(a); provided,
however, that following the acceleration of the Advances, or the giving of notice by the Administrative Agent to accelerate the Advances, pursuant to Section 6.01, Default Interest shall accrue and be payable hereunder whether or not
previously required by the Administrative Agent. 
 (c) Notice of Interest Period and Interest Rate. Promptly after
receipt of a Notice of Borrowing pursuant to Section 2.02(a), a Notice of Conversion pursuant to Section 2.09 or a notice of selection of an Interest Period pursuant to the terms of the definition of “Interest Period”, the
Administrative Agent shall give notice to the Borrower and each Appropriate Lender of the applicable Interest Period and the applicable interest rate determined by the Administrative Agent for purposes of clause (a)(i), (a)(ii) or (a)(iii) above.

 SECTION 2.08. Fees. (a) Commitment Fee. The Borrower shall pay to the Administrative Agent for the account of the
Lenders a commitment fee, from the date hereof in the case of each Initial Lender and from the effective date specified in the Assignment and Acceptance pursuant to which it became a Lender in the case of each other Lender until the Termination Date
in respect of the Revolving Credit Facility, payable in arrears quarterly on the last day of each February, May, August and November, commencing August 30, 2003, and on the Termination Date in respect of the applicable Facility, at the
Applicable Commitment Fee Percentage of the average daily Unused Revolving Credit Commitment of such Lender. 
 (b) Letter
of Credit Fees, Etc. (i) The Borrower shall pay to the Administrative Agent for the account of each Revolving Credit Lender a commission, payable in arrears quarterly on the last day of each February, May, August and November, commencing
August 30, 2003, and on the Termination Date in respect of the Letter of Credit Facility, on such Lender’s Pro Rata Share of the average daily aggregate Available Amount during such quarter of all Letters of Credit of the Applicable
Margin for Eurodollar Rate Advances under the Revolving Credit Facility. Upon the occurrence and during the continuance of an Event of Default, the amount of commission payable by the Borrower under this clause (b)(i) shall be increased by
2% per annum (without duplication of amounts payable under Section 2.07(b)). 
 (ii) The Borrower shall pay to the
Issuing Bank, for its own account, such commissions, issuance fees, fronting fees, transfer fees and other fees and charges in connection with the issuance or administration of each Letter of Credit as the Borrower and the Issuing Bank shall agree,
with the initial fronting fee equal to 0.125% per annum on the Available Amount of all Letters of Credit issued by the Issuing Bank payable quarterly in arrears on the last day of each February, May, August and November, commencing
August 30, 2003. 
 (c) Agents’ Fees. The Borrower shall pay to each Agent for its own account such fees as
may from time to time be agreed between the Borrower and such Agent, including the fees set forth in the Fee Letter. 
 SECTION 2.09.
Conversion of Advances. (a) Optional. The Borrower may on any Business Day, upon notice given to the Administrative Agent not later than 11:00 A.M. (New York City time) on the third Business Day prior to the date of the
proposed Conversion in the case of a Conversion of Advances denominated in U.S. dollars subject to the provisions of Sections 2.07 and 2.10, Convert all or 

  

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any portion of the Advances of one Type comprising the same Borrowing into Advances of another Type; provided, however, that (A) any Conversion
of Eurodollar Rate Advances into Base Rate Advances shall be made only on the last day of an Interest Period for such Eurodollar Rate Advances, (B) any Conversion of Base Rate Advances into Eurodollar Rate Advances shall be in an amount not
less than the minimum amount specified in Section 2.02(c), (C) no Conversion of any Advances shall result in more separate Borrowings than permitted under Section 2.02(c), (D) each Conversion of Advances comprising part of the
same Borrowing under any Facility shall be made ratably among the Appropriate Lenders in accordance with their Commitments under such Facility, (E) the Borrower shall not have the option to Convert any Advances into LIBOR Market Index Rate
Advances and (F) no Advance denominated in a Foreign Currency may be Converted into Base Rate Advances. Each such notice of Conversion (a “Notice of Conversion”) shall be substantially in the form of Exhibit H hereto and
shall, within the restrictions specified above, specify (1) the date of such Conversion, (2) the Advances to be Converted and (3) if such Conversion is into Eurodollar Rate Advances, the duration of the initial Interest Period for
such Advances. Each Notice of Conversion shall be irrevocable and binding on the Borrower. 
 (b) Mandatory.
(i) On the date on which the aggregate unpaid principal Dollar Amount of Eurodollar Rate Advances comprising any Borrowing (other than the Sterling Term Loan Advance or the US Term Loan Advance) shall be reduced, by payment or prepayment or
otherwise, to less than $5,000,000, such Advances shall automatically, on the last day of the then existing Interest Period therefor, (A) in the case of all Advances other than Advances denominated in Foreign Currencies, Convert into Base Rate
Advances and (B) in the case of Advances denominated in Foreign Currencies (or any portion thereof), be repaid and reborrowed (at the option of the Borrower) as Base Rate Advances denominated in U.S. dollars. 
 (ii) If the Borrower shall fail to select the duration of any Interest Period for any Eurodollar Rate Advances in accordance with the
provisions contained in the definition of “Interest Period” in Section 1.01, the Administrative Agent will forthwith so notify the Borrower and the Appropriate Lenders, whereupon each such Eurodollar Rate Advance shall automatically,
on the last day of the then existing Interest Period therefor, (A) in the case of all Advances other than Advances denominated in Foreign Currencies, Convert into Base Rate Advances and (B) in the case of Advances denominated in Foreign
Currencies (or any portion thereof), be continued as Eurodollar Rate Advances with an Interest Period of one month. 
 (iii)
Upon the occurrence and during the continuance of any Default, (A) each Eurodollar Rate Advance will automatically, on the last day of the then existing Interest Period therefor, (1) in the case of all Advances other than Advances
denominated in Foreign Currencies, Convert into Base Rate Advances, (2) in the case of the Revolving Credit Advances denominated in Foreign Currencies (or any portion thereof), (I) at the request of the Administrative Agent (acting upon
the direction of the Required Lenders), be repaid and reborrowed (at the option of the Borrower) as a Base Rate Advance denominated in U.S. dollars or (II) be continued as Eurodollar Rate Advances with an Interest Period of one month and (3) in
the case of the Sterling Term Loan Advance, be continued as Eurodollar Rate Advances with an Interest Period of one month and (B) upon written notice from the Administrative Agent (in its discretion or as required by the Required Lenders in
writing) to the Borrower, the obligation of the Lenders to make Advances denominated in Foreign Currencies or to make, or to Convert Advances into, Eurodollar Rate Advances shall be suspended. 
 SECTION 2.10. Increased Costs, Etc. (a) If, due to either (i) the introduction of or any change in or in the interpretation of any law
or regulation or (ii) the compliance with any guideline or request from any central bank or other governmental authority (whether or not having the force of law), there shall be any increase in the cost to any Lender Party of agreeing to make
or of making, funding or maintaining Eurodollar Rate Advances, Advances denominated in Foreign Currencies or of agreeing to 

  

 39 

 
issue or of issuing or maintaining or participating in Letters of Credit or of agreeing to make or of making or maintaining Letter of Credit Advances
(excluding, for purposes of this Section 2.10, any such increased costs resulting from (x) Taxes or Other Taxes (as to which Section 2.12 shall govern exclusively) and (y) changes in the basis of taxation of overall net income or
overall gross income by the United States or by the foreign jurisdiction or state under the laws of which such Lender Party is organized or has its Applicable Lending Office, in each case including any political subdivision thereof), then the
Borrower shall from time to time, upon demand by such Lender Party (with a copy of such demand to the Administrative Agent), pay to the Administrative Agent for the account of such Lender Party additional amounts sufficient to compensate such Lender
Party for such increased cost; provided, however, that a Lender Party claiming additional amounts under this Section 2.10(a) agrees to use reasonable efforts (consistent with its internal policy and legal and regulatory
restrictions) to designate a different Applicable Lending Office if the making of such a designation would avoid the need for, or reduce the amount of, such increased cost that may thereafter accrue and would not, in the reasonable judgment of such
Lender Party, be otherwise disadvantageous to such Lender Party. A certificate as to the amount of such increased cost, submitted to the Borrower by such Lender Party, shall be conclusive and binding for all purposes, absent manifest error.

 (b) If, due to either (i) the introduction or effectiveness of or any change in or in the interpretation of any law or
regulation or (ii) the compliance with any guideline or request from any central bank or other governmental authority (whether or not having the force of law), there shall be any increase in the amount of capital required or expected to be
maintained by any Lender Party or any corporation controlling such Lender Party as a result of or based upon the existence of such Lender Party’s commitment to lend or to issue or participate in Letters of Credit hereunder and other commitments
of such type or the issuance or maintenance of or participation in the Letters of Credit (or similar contingent obligations), then, upon demand by such Lender Party or such corporation (with a copy of such demand to the Administrative Agent), the
Borrower shall pay to the Administrative Agent for the account of such Lender Party, from time to time as specified by such Lender Party, additional amounts sufficient to compensate such Lender Party in the light of such circumstances, to the extent
that such Lender Party reasonably determines such increase in capital to be allocable to the existence of such Lender Party’s commitment to lend or to issue or participate in Letters of Credit hereunder or to the issuance or maintenance of or
participation in any Letters of Credit. A certificate as to such amounts submitted to the Borrower by such Lender Party shall be conclusive and binding for all purposes, absent manifest error. 
 (c) If, with respect to any Eurodollar Rate Advances under any Facility, Lenders owed at least 51% of the then aggregate unpaid principal
amount thereof notify the Administrative Agent in good faith that the Eurodollar Rate for any Interest Period for such Advances will not adequately reflect the cost to such Lenders of making, funding or maintaining their Eurodollar Rate Advances for
such Interest Period, the Administrative Agent shall forthwith so notify the Borrower and the Appropriate Lenders, whereupon (i) each such Eurodollar Rate Advance under such Facility will automatically, on the last day of the then existing
Interest Period therefor, (A) in the case of all Advances other than Advances denominated in Foreign Currencies, Convert into Base Rate Advances, (B) in the case of the Revolving Credit Advances denominated in Foreign Currencies (or any
portion thereof), be repaid and reborrowed (at the option of the Borrower) as a Base Rate Advance denominated in U.S. dollars and (C) in the case of the Sterling Term Loan Advance, be Converted to a LIBOR Market Index Rate Advance and
(ii) the obligation of the Appropriate Lenders to make Advances denominated in Foreign Currencies or make, or to Convert Advances into, Eurodollar Rate Advances shall be suspended until the Administrative Agent shall notify the Borrower that
such Lenders have determined that the circumstances causing such suspension no longer exist. Upon such notification, all LIBOR Market Index Rate Advances arising as a result of such circumstances shall automatically Convert to Eurodollar Rate
Advances with an Interest Period of one month unless otherwise designated by the Borrower. 
  

 40 

 (d) Notwithstanding any other provision of this Agreement, if the introduction or
effectiveness of or any change in or in the interpretation of any law or regulation shall make it unlawful, or any central bank or other governmental authority shall assert that it is unlawful, for any Lender or its Eurodollar Lending Office to
perform its obligations hereunder to make Eurodollar Rate Advances or to continue to fund or maintain Eurodollar Rate Advances hereunder, then, on notice thereof and demand therefor by such Lender to the Borrower through the Administrative Agent,
(i) each Eurodollar Rate Advance under each Facility under which such Lender has a Commitment will automatically, upon such demand, (A) in the case of all Advances other than Advances denominated in Foreign Currencies, Convert into Base
Rate Advances, (B) in the case of the Revolving Credit Advances denominated in Foreign Currencies (or any portion thereof), be repaid and reborrowed (at the option of the Borrower) as a Base Rate Advance denominated in U.S. dollars and
(C) in the case of the Sterling Term Loan Advance, be Converted to a LIBOR Market Index Rate Advance and (ii) the obligation of the Appropriate Lenders to make Advances denominated in Foreign Currencies and to make, or to Convert Advances
into, Eurodollar Rate Advances shall be suspended until the Administrative Agent shall notify the Borrower that such Lender has determined that the circumstances causing such suspension no longer exist. Upon such notification, all LIBOR Market Index
Rate Advances arising as a result of such circumstances shall automatically Convert to Eurodollar Rate Advances with an Interest Period of one month unless otherwise designated by the Borrower. Before making any demand under this
Section 2.10(c), each Lender agrees to use reasonable efforts (consistent with its internal policy and legal and regulatory restrictions) to designate a different Eurodollar Lending Office if the making of such a designation would allow such
Lender or its Eurodollar Lending Office to continue to perform its obligations to make Eurodollar Rate Advances or to continue to fund or maintain Eurodollar Rate Advances and would not, in the judgment of such Lender, be otherwise disadvantageous
to such Lender. 
 SECTION 2.11. Payments and Computations. (a) The Borrower shall make each payment hereunder and under the
Notes, irrespective of any right of counterclaim or set-off (except as otherwise provided in Section 2.15), not later than 2:00 P.M. (New York City time) on the day when due to the Administrative Agent at the Administrative
Agent’s Account (or such other account as directed by the Administrative Agent) in same day funds, with payments being received by the Administrative Agent after such time being deemed to have been received on the next succeeding Business Day.
Without limiting the terms of the preceding sentence, the principal of, and the accrued interest on, any Advances denominated in U.S. dollars shall be payable in U.S. dollars and any Advances denominated in a Foreign Currency shall be payable in the
same Foreign Currency as such Advance. The Administrative Agent will promptly thereafter cause like funds to be distributed (i) if such payment by the Borrower is in respect of principal, interest, commitment fees or any other Obligation then
payable hereunder and under the Notes to more than one Lender Party, to such Lender Parties for the account of their respective Applicable Lending Offices ratably in accordance with the amounts of such respective Obligations then payable to such
Lender Parties and (ii) if such payment by the Borrower is in respect of any Obligation then payable hereunder to one Lender Party, to such Lender Party for the account of its Applicable Lending Office, in each case to be applied in accordance
with the terms of this Agreement. Upon its acceptance of an Assignment and Acceptance and recording of the information contained therein in the Register pursuant to Section 8.07(d), from and after the effective date of such Assignment and
Acceptance, the Administrative Agent shall make all payments hereunder and under the Notes in respect of the interest assigned thereby to the Lender Party assignee thereunder, and the parties to such Assignment and Acceptance shall make all
appropriate adjustments in such payments for periods prior to such effective date directly between themselves. 
 (b) The
Borrower hereby authorizes each Lender Party and each of its Affiliates, if and to the extent payment owed to such Lender Party is not made when due hereunder or, in the case of a Lender, under the Note held by such Lender, to charge from time to
time, to the fullest extent permitted by law, against any or all of the Borrower’s accounts with such Lender Party or such Affiliate any amount so due. 
  

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 (c) All computations of interest based on the Base Rate (to the extent based on
Wachovia’s prime rate) or based on amounts denominated in British Pounds Sterling shall be made by the Administrative Agent on the basis of a year of 365 or 366 days, as the case may be, and all computations of interest based on the Eurodollar
Rate or the Federal Funds Rate and of fees and Letter of Credit commissions shall be made by the Administrative Agent on the basis of a year of 360 days, in each case for the actual number of days (including the first day but excluding the last day)
occurring in the period for which such interest, fees or commissions are payable. Each determination by the Administrative Agent of an interest rate, fee or commission hereunder shall be conclusive and binding for all purposes, absent manifest
error. 
 (d) Whenever any payment hereunder or under the Notes 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 commitment or letter of credit fee or commission, as the case may be; provided,
however, that, if such extension would cause payment of interest on or principal of Eurodollar Rate Advances to be made in the next following calendar month, such payment shall be made on the next preceding Business Day. 
 (e) Unless the Administrative Agent shall have received notice from the Borrower prior to the date on which any payment is due to any
Lender Party hereunder that the Borrower will not make such payment in full, the Administrative Agent may assume that the Borrower has made such payment in full to the Administrative Agent on such date and the Administrative Agent may, in reliance
upon such assumption, cause to be distributed to each such Lender Party on such due date an amount equal to the amount then due such Lender Party. If and to the extent the Borrower shall not have so made such payment in full to the Administrative
Agent, each such Lender Party shall repay to the Administrative Agent forthwith on demand such amount distributed to such Lender Party together with interest thereon, for each day from the date such amount is distributed to such Lender Party until
the date such Lender Party repays such amount to the Administrative Agent, at the Federal Funds Rate. 
 (f) Whenever any
payment received by the Administrative Agent under this Agreement or any of the other Loan Documents is insufficient to pay in full all amounts due and payable to the Agents and the Lender Parties under or in respect of this Agreement and the other
Loan Documents on any date, such payment shall be distributed by the Administrative Agent and applied by the Agents and the Lender Parties in the following order of priority: 
 (i) first, to the payment of all of the fees, indemnification payments, costs and expenses that are due and payable to the Agents
(solely in their respective capacities as Agents) under or in respect of this Agreement and the other Loan Documents on such date, ratably based upon the respective aggregate amounts of all such fees, indemnification payments, costs and expenses
owing to the Agents on such date; 
 (ii) second, to the payment of all of the fees, indemnification payments, costs
and expenses that are due and payable to the Issuing Bank and the Swing Line Bank (solely in their respective capacities as such) under or in respect of this Agreement and the other Loan Documents on such date, ratably based upon the respective
aggregate amounts of all such fees, indemnification payments, costs and expenses owing to the Issuing Bank and the Swing Line Bank on such date; 
  

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 (iii) third, to the payment of all of the indemnification payments, costs and
expenses that are due and payable to the Lenders under Sections 8.04 hereof, Section 21 of the Security Agreement and any similar section of any of the other Loan Documents on such date, ratably based upon the respective aggregate amounts of
all such indemnification payments, costs and expenses owing to the Lenders on such date; 
 (iv) fourth, to the payment
of all of the amounts that are due and payable to the Administrative Agent and the Lender Parties under Sections 2.10 and 2.12 hereof on such date, ratably based upon the respective aggregate amounts thereof owing to the Administrative Agent and the
Lender Parties on such date; 
 (v) fifth, to the payment of all of the fees that are due and payable to the Lenders
under Section 2.08(a) on such date, ratably based upon the respective aggregate Commitments of the Lenders under the Facilities on such date; 
 (vi) sixth, to the payment of all of the accrued and unpaid interest on the Obligations of the Borrower under or in respect of the Loan Documents that is due and payable to the Administrative Agent and the
Lender Parties under Section 2.07(b) on such date, ratably based upon the respective aggregate amounts of all such interest owing to the Administrative Agent and the Lender Parties on such date; 
 (vii) seventh, to the payment of all of the accrued and unpaid interest on the Advances that is due and payable to the
Administrative Agent and the Lender Parties under Section 2.07(a) and all Obligations arising under Secured Hedge Agreements on such date, ratably based upon the respective aggregate amounts of all such interest owing to the Administrative
Agent and the Lender Parties on such date; 
 (viii) eighth, to the payment of the principal amount of all of the
outstanding Advances that is due and payable to the Administrative Agent and the Lender Parties on such date, ratably based upon the respective aggregate amounts of all such principal owing to the Administrative Agent and the Lender Parties on such
date; and 
 (ix) ninth, to the payment of all other Obligations of the Loan Parties owing under or in respect of the
Loan Documents that are due and payable to the Administrative Agent and the other Secured Parties on such date, ratably based upon the respective aggregate amounts of all such Obligations owing to the Administrative Agent and the other Secured
Parties on such date. 
 (g) If the Administrative Agent receives funds for application to the Obligations of the Loan Parties
under or in respect of the Loan Documents under circumstances for which the Loan Documents do not specify the Advances or the Facility to which, or the manner in which, such funds are to be applied, the Administrative Agent may, but shall not be
obligated to, elect to distribute such funds to each of the Lender Parties in accordance with such Lender Party’s ratable share of the sum of (a) the aggregate principal Dollar Amount of all Advances outstanding at such time and
(b) the aggregate Available Amount of all Letters of Credit outstanding at such time, in repayment or prepayment of such of the outstanding Advances or other Obligations then owing to such Lender Party. 
 SECTION 2.12. Taxes. (a) Any and all payments by any Loan Party to or for the account of any Lender Party or any Agent hereunder or under the
Notes or any other Loan Document shall be made, in accordance with Section 2.11 or the applicable provisions of such other Loan Document, if any, 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, in the case of each Lender 

  

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Party and each Agent, taxes that are imposed on its overall net income by the United States and taxes that are imposed on its overall net income (and
franchise or similar taxes imposed in lieu thereof) by the state or foreign jurisdiction under the laws of which such Lender Party or such Agent, as the case may be, is organized or any political subdivision thereof and, in the case of each Lender
Party, taxes that are imposed on its overall net income (and franchise taxes imposed in lieu thereof) by the state or foreign jurisdiction of such Lender Party’s Applicable Lending Office or any political subdivision thereof (all such
non-excluded taxes, levies, imposts, deductions, charges, withholdings and liabilities in respect of payments hereunder or under the Notes being hereinafter referred to as “Taxes”). If any Loan Party shall be required by law
to deduct any Taxes from or in respect of any sum payable hereunder or under any Note or any other Loan Document to any Lender Party or any Agent, (i) the sum payable by the Borrower shall be increased as may be necessary so that after such
Loan Party and the Administrative Agent have made all required deductions (including deductions applicable to additional sums payable under this Section 2.12) such Lender Party or such Agent, as the case may be, receives an amount equal to the
sum it would have received had no such deductions been made, (ii) such Loan Party shall make all such deductions and (iii) such Loan Party shall pay the full amount deducted to the relevant taxation authority or other authority in
accordance with applicable law. 
 (b) In addition, a Loan Party shall pay any present or future stamp, documentary, excise,
property or similar taxes, charges or levies that arise from any payment made by such Loan Party hereunder or under any Notes or any other Loan Documents or from the execution, delivery or registration of, performance under, or otherwise with
respect to, this Agreement, the Notes or the other Loan Documents (hereinafter referred to as “Other Taxes”). 
 (c) The Loan Parties shall indemnify each Lender Party and each Agent for and hold them harmless against the full amount of Taxes and Other Taxes, and for the full amount of taxes of any kind imposed or asserted by
any jurisdiction on amounts payable under this Section 2.12, imposed on or paid by such Lender Party or such Agent (as the case may be) and any liability (including penalties, additions to tax, interest and expenses) arising therefrom or with
respect thereto. This indemnification shall be made within 30 days from the date such Lender Party or such Agent (as the case may be) makes written demand therefor. 
 (d) Within 30 days after the date of any payment of Taxes, the appropriate Loan Party shall furnish to the Administrative Agent, at its
address referred to in Section 8.02, the original or a certified copy of a receipt evidencing such payment, to the extent such a receipt is issued therefor, or other written proof of payment thereof that is reasonably satisfactory to the
Administrative Agent. In the case of any payment hereunder or under the Notes or the other Loan Documents by or on behalf of a Loan Party through an account or branch outside the United States or by or on behalf of a Loan Party by a payor that is
not a United States person, if such Loan Party determines that no Taxes are payable in respect thereof, such Loan Party shall furnish, or shall cause such payor to furnish, to the Administrative Agent, at such address, an opinion of counsel
acceptable to the Administrative Agent stating that such payment is exempt from Taxes. For purposes of subsections (d) and (e) of this Section 2.12, the terms “United States” and “United States
person” shall have the meanings specified in Section 7701 of the Internal Revenue Code. 
 (e) Each Lender
Party organized under the laws of a jurisdiction outside the United States shall, on or prior to the date of its execution and delivery of this Agreement in the case of each Initial Lender Party and on the date of the Assignment and Acceptance
pursuant to which it becomes a Lender Party in the case of each other Lender Party, and from time to time thereafter as reasonably requested in writing by the Borrower (but only so long thereafter as such Lender Party remains lawfully able to do
so), provide each of the Administrative Agent and the Borrower with two original Internal Revenue Service Forms W-8BEN or W-8EC1 or (in the case of a Lender Party that has certified in 

  

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writing to the Administrative Agent that it is not (i) a “bank” as defined in Section 881(c)(3)(A) of the Internal Revenue Code,
(ii) a 10-percent shareholder (within the meaning of Section 871(h)(3)(B) of the Internal Revenue Code) of the Borrower or (iii) a CFC related to the Borrower (within the meaning of Section 864(d)(4) of the Internal Revenue
Code), Internal Revenue Service Form W-8BEN, as appropriate) any successor or other form prescribed by the Internal Revenue Service, certifying that such Lender Party is exempt from or entitled to a reduced rate of United States withholding tax on
payments pursuant to this Agreement or the Notes or any other Loan Document or such other Internal Revenue Service form as may be applicable to a Lender Party which will entitle the Lender Party to an exemption from or a reduced rate of withholding
tax on payments pursuant to this Agreement or the Notes or any other Loan Document. If the forms provided by a Lender Party at the time such Lender Party first becomes a party to this Agreement indicate a United States interest withholding tax rate
in excess of zero, withholding tax at such rate shall be considered excluded from Taxes unless and until such Lender Party provides the appropriate forms certifying that a lesser rate applies, whereupon withholding tax at such lesser rate only shall
be considered excluded from Taxes for periods governed by such forms; provided, however, that if, at the effective date of the Assignment and Acceptance pursuant to which a Lender Party becomes a party to this Agreement, the Lender
Party assignor was entitled to payments under subsection (a) of this Section 2.12 in respect of United States withholding tax with respect to interest paid at such date, then, to such extent, the term Taxes shall include (in addition to
withholding taxes that may be imposed in the future or other amounts otherwise includable in Taxes) United States withholding tax, if any, applicable with respect to the Lender Party assignee on such date. If any form or document referred to in this
subsection (e) requires the disclosure of information, other than information necessary to compute the tax payable and information required on the date hereof by Internal Revenue Service Form W-8BEN or W-8ECI or the related certificate
described above, that the applicable Lender Party reasonably considers to be confidential, such Lender Party shall give notice thereof to the Borrower and shall not be obligated to include in such form or document such confidential information.

 (f) For any period with respect to which a Lender Party has failed to provide the Borrower with the appropriate form,
certificate or other document described in subsection (e) above (other than if such failure is due to a change in law, or in the interpretation or application thereof, occurring after the date on which a form, certificate or other
document originally was required to be provided or if such form, certificate or other document otherwise is not required under subsection (e) above), such Lender Party shall not be entitled to indemnification under subsection (a) or
(c) of this Section 2.12 with respect to Taxes imposed by the United States by reason of such failure; provided, however, that should a Lender Party become subject to Taxes because of its failure to deliver a form,
certificate or other document required hereunder, the Loan Parties shall take such steps as such Lender Party shall reasonably request to assist such Lender Party to recover such Taxes. 
 (g) Any Lender Party claiming any additional amounts payable pursuant to this Section 2.12 agrees to use reasonable efforts
(consistent with its internal policy and legal and regulatory restrictions) to change the jurisdiction of its Applicable Lending Office if the making of such a change would avoid the need for, or reduce the amount of, any such additional amounts
that may thereafter accrue and would not, in the reasonable judgment of such Lender Party, be otherwise disadvantageous to such Lender Party. 
 SECTION 2.13. Sharing of Payments, Etc. If any Lender Party shall obtain at any time any payment (whether voluntary, involuntary, through the exercise of any right of set-off, or otherwise, other than as a result of an assignment
pursuant to Section 8.07) (a) on account of Obligations due and payable to such Lender Party hereunder and under the Notes and the other Loan Documents at such time in excess of its ratable share (according to the proportion of
(i) the Dollar Amount of such Obligations due and payable to such Lender Party at such time to (ii) the aggregate Dollar Amount of the Obligations due and payable to all Lender Parties hereunder and under the Notes and the other Loan
Documents at such time) 

  

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of payments on account of the Obligations due and payable to all Lender Parties hereunder and under the Notes at such time obtained by all the Lender Parties
at such time or (b) on account of Obligations owing (but not due and payable) to such Lender Party hereunder and under the Notes and the other Loan Documents at such time in excess of its ratable share (according to the proportion of
(i) the Dollar Amount of such Obligations owing to such Lender Party at such time to (ii) the aggregate Dollar Amount of the Obligations owing (but not due and payable) to all Lender Parties hereunder and under the Notes and the other Loan
Documents at such time) of payments on account of the Obligations owing (but not due and payable) to all Lender Parties hereunder and under the Notes at such time obtained by all of the Lender Parties at such time, such Lender Party shall forthwith
purchase from the other Lender Parties such interests or participating interests in the Obligations due and payable or owing to them, as the case may be, as shall be necessary to cause such purchasing Lender Party to share the excess payment ratably
with each of them; provided, however, that if all or any portion of such excess payment is thereafter recovered from such purchasing Lender Party, such purchase from each other Lender Party shall be rescinded and such other Lender Party shall
repay to the purchasing Lender Party the purchase price to the extent of such Lender Party’s ratable share (according to the proportion of (i) the purchase price paid to such Lender Party to (ii) the aggregate purchase price paid to
all Lender Parties) of such recovery together with an amount equal to such Lender Party’s ratable share (according to the proportion of (i) the Dollar Amount of such other Lender Party’s required repayment to (ii) the total
Dollar Amount so recovered from the purchasing Lender Party) of any interest or other amount paid or payable by the purchasing Lender Party in respect of the total amount so recovered; provided further that, so long as the Obligations under
the Loan Documents shall not have been accelerated, any excess payment received by any Appropriate Lender shall be shared on a pro rata basis only with other Appropriate Lenders. The Borrower agrees that any Lender Party so purchasing an interest or
participating interest from another Lender Party pursuant to this Section 2.13 may, to the fullest extent permitted by law, exercise all its rights of payment (including the right of set-off) with respect to such interest or participating
interest, as the case may be, as fully as if such Lender Party were the direct creditor of the Borrower in the amount of such interest or participating interest, as the case may be. 
 SECTION 2.14. Use of Proceeds. The proceeds of the Advances and issuances of Letters of Credit shall be available (and the Borrower agrees that it
shall use such proceeds and Letters of Credit) solely to refinance certain Existing Debt of the Borrower (and, in the case of the US Term Loan Advance, to refinance certain Debt of the Borrower outstanding immediately before the Amendment No. 7
Effective Date), and to finance the ongoing working capital and other general corporate purposes of the Borrower and its Subsidiaries (including, without limitation, permitted acquisitions). The proceeds of any Advances may not be used to finance
the CMC Acquisition and any Investment or acquisition permitted under Section 5.02(f) unless such Investment or acquisition is made on a consensual basis (approved by the board of directors or analogous governing body of any Person to be
acquired or all or substantially all of whose assets are to be acquired). 
 SECTION 2.15. Evidence of Debt. (a) Each Lender
Party shall maintain in accordance with its usual practice an account or accounts evidencing the indebtedness of the Borrower to such Lender resulting from each Advance owing to such Lender Party from time to time, including the amounts of principal
and interest payable and paid to such Lender from time to time hereunder. The Borrower agrees that upon notice by any Lender Party to the Borrower (with a copy of such notice to the Administrative Agent) to the effect that a promissory note or other
evidence of indebtedness is required or appropriate in order for such Lender Party to evidence (whether for purposes of pledge, enforcement or otherwise) the Advances owing to, or to be made by, such Lender Party, the Borrower shall promptly execute
and deliver to such Lender Party, with a copy to the Administrative Agent, a Revolving Credit Note, a Sterling Term Note, a US Term Note and a Swing Line Note, as applicable, in substantially the form of Exhibits A-1, A-2, A-3 and A-4 hereto,
respectively, payable to the order of such Lender Party in a principal amount equal to the Revolving Credit Commitment, the Swing Line Commitment, the Sterling Term Loan Commitment and the US Term Loan Commitment, respectively, of such Lender Party.
All references to Notes in the Loan Documents means Notes, if any, to the extent issued hereunder. 
  

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 (b) The Register maintained by the Administrative Agent pursuant to Section 8.07(d)
shall include a control account, and a subsidiary account for each Lender Party, in which accounts (taken together) shall be recorded (i) the date and amount of each Borrowing made hereunder, the Type of Advances comprising such Borrowing and,
if appropriate, the Interest Period applicable thereto, (ii) the terms of each Assignment and Acceptance delivered to and accepted by it, (iii) the amount of any principal or interest due and payable or to become due and payable from the
Borrower to each Lender Party hereunder, and (iv) the amount of any sum received by the Administrative Agent from the Borrower hereunder and each Lender Party’s share thereof. 
 (c) Entries made in good faith by the Administrative Agent in the Register pursuant to subsection (b) above, and by each Lender Party
in its account or accounts pursuant to subsection (a) above, shall be prima facie evidence of the amount of principal and interest due and payable or to become due and payable from the Borrower to, in the case of the Register, each
Lender Party and, in the case of such account or accounts, such Lender Party, under this Agreement, absent manifest error; provided, however, that the failure of the Administrative Agent or such Lender Party to make an entry, or any
finding that an entry is incorrect, in the Register or such account or accounts shall not limit or otherwise affect the obligations of the Borrower under this Agreement. 
 SECTION 2.16. Defaulting Lenders. Notwithstanding anything in this Agreement to the contrary, as to any Lender which (a) has refused (which refusal has not been retracted) to make available its portion of
any Borrowing or to fund its portion of any unreimbursed (or disgorged) payment under Section 2.03(c) or (b) has given notice to the Administrative Agent and/or the Borrower that it does not intend to comply with its obligations under
Section 2.01 or under Section 2.03(c) (a “Defaulting Lender”): 
 (i) such lender shall not
be deemed a Required Lender hereunder and such Lender’s (A) Revolving Credit Notes, (B) Revolving Commitments, (C) Sterling Term Notes, (D) US Term Notes, (E) Advances and (F) Letter of Credit Advances shall be
excluded from the calculations set forth in the definition of Required Lenders above, 
 (ii) such Lender shall not be
entitled to receive any portion of (A) Letter of Credit fees, (B) interest payable with respect to any Letter of Credit Advances or (C) amounts received in respect of Letter of Credit Advances; and 
 (iii) such Lender shall not be entitled to receive any commitment fee payable in respect of the Revolving Credit Commitments. 

In addition to the foregoing, and notwithstanding Section 2.01(c), if any Lender shall fall within the description set forth in clause (a) or
(b) above, the Issuing Bank shall not be required to issue any Letter of Credit unless arrangements reasonably satisfactory to the Issuing Bank have been entered into (the Issuing Bank having made a good faith effort to enter into such
arrangements) to eliminate the Issuing Bank’s risk with respect to the participation in Letters of Credit by such Lender, including cash collateralizing such Lender’s Letter of Credit commitment. The provisions of this Section 2.16
are not in lieu of any other claim the Borrower may have against such Defaulting Lender. 
  

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 ARTICLE III 
 CONDITIONS OF LENDING AND 
 ISSUANCES OF LETTERS OF CREDIT 
 SECTION 3.01. Conditions Precedent to Initial Extension of Credit. The obligation of each Lender to make an Advance or of the Issuing Bank to
issue a Letter of Credit on the occasion of the Initial Extension of Credit hereunder is subject to the satisfaction of the following conditions precedent before or concurrently with the Initial Extension of Credit: 
 (a) The Administrative Agent shall have received on or before the day of the Initial Extension of Credit the following, each dated such
day (unless otherwise specified), in form and substance satisfactory to the Administrative Agent (unless otherwise specified) and (except for the Notes) in sufficient copies for each Lender Party: 
 (i) The Notes payable to the order of the Lenders to the extent requested by the Lenders pursuant to the terms of Section 2.15.

 (ii) Evidence satisfactory to it that either (i) Senior Subordinated Notes in a principal amount of $175,000,000 have
been issued pursuant to the Senior Subordinated Indenture, together with true and complete copies of the Senior Subordinated Indenture or (ii) Bridge Loans in a principal amount of at least $85,000,000 are outstanding, together with true and
complete copies of the Bridge Documentation. 
 (iii) A security agreement in substantially the form of Exhibit D hereto
(together with each other security agreement and security agreement supplement delivered pursuant to Section 5.01(j), in each case as amended, the “Security Agreement”), duly executed by each Loan Party, together with:

 (A) certificates representing the Pledged Shares referred to therein accompanied by undated stock powers executed in blank
and instruments evidencing the Pledged Debt indorsed in blank, 
 (B) proper financing statements in form appropriate for
filing under the Uniform Commercial Code of all jurisdictions that the Administrative Agent may deem necessary or desirable in order to perfect and protect the first priority liens and security interests created under the Security Agreement,
covering the Collateral described in the Security Agreement, 
 (C) completed requests for information, dated on or before
the date of the Initial Extension of Credit, listing all effective financing statements filed in the jurisdictions referred to in clause (B) above that name any Loan Party, the Acquired Businesses or their respective Subsidiaries as debtor,
together with copies of such other financing statements, 
 (D) evidence of the completion of all other recordings and
filings of or with respect to the Security Agreement that the Administrative Agent may deem necessary or desirable in order to perfect and protect the security interest created thereunder, 
 (E) evidence of the insurance required by the terms of the Security Agreement, 
  

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 (F) evidence that all other action that the Administrative Agent may deem necessary or
desirable in order to perfect and protect the liens and security interests, and the priority thereof, created under the Security Agreement has been taken (including, without limitation, receipt of duly executed payoff letters, UCC-3 termination
statements and landlords’ and bailees’ waiver and consent agreements). 
 (iv) A guaranty substantially in the form
of Exhibit E hereto (together with each other guaranty and guaranty supplement delivered pursuant to Section 5.01(j), in each case as amended, the “Subsidiary Guaranty”), duly executed by each Subsidiary Guarantor.

 (v) An intellectual property security agreement in substantially the form of Exhibit C to the Security Agreement
(together with each other intellectual property security agreement and intellectual property security agreement supplement delivered pursuant to Section 5.01(j), in each case as amended, the “Intellectual Property Security
Agreement”), duly executed by each Loan Party, together with evidence that all action that the Administrative Agent may deem necessary or desirable in order to perfect and protect the first priority liens and security interests created
under the Intellectual Property Security Agreement has been taken. 
 (vi) Certified copies of the resolutions of the Board of
Directors of each Loan Party approving the transactions contemplated hereby and each Loan Document to which it is or is to be a party, and of all documents evidencing other necessary corporate action and governmental and other third party approvals
and consents, if any, with respect to the transactions contemplated hereby and each Loan Document to which it is or is to be a party. 
 (vii) A copy of a certificate of the Secretary of State of the jurisdiction of organization of each Loan Party, dated reasonably near the date of the Initial Extension of Credit, certifying (A) as to a true and
correct copy of the charter or other constitutive document of such Loan Party and each amendment thereto on file in such Secretary’s office and (B) that (1) such amendments are the only amendments to such Loan Party’s charter or
other constitutive document on file in such Secretary’s office, (2) such Loan Party has paid all franchise taxes to the date of such certificate and (3) such Loan Party is duly organized and in good standing or presently subsisting
under the laws of the State of the jurisdiction of its organization. 
 (viii) A certificate of each Loan Party, signed on
behalf of such Loan Party by its President or a Vice President and its Secretary or any Assistant Secretary, dated the date of the Initial Extension of Credit (the statements made in which certificate shall be true on and as of the date of the
Initial Extension of Credit), certifying as to (A) the absence of any amendments to the charter or other constitutive document of such Loan Party since the date of the Secretary of State’s certificate referred to in
Section 3.01(a)(v), (B) a true and correct copy of the bylaws or other governing document of such Loan Party as in effect on the date on which the resolutions referred to in Section 3.01(a)(iv) were adopted and on the date of the
Initial Extension of Credit, (C) the due organization and good standing or valid existence of such Loan Party under the laws of the jurisdiction of its organization, and the absence of any proceeding for the dissolution or liquidation of such
Loan Party, (D) the truth of the representations and warranties contained in the Loan Documents as though made on and as of the date of the Initial Extension of Credit and (E) the absence of any event occurring and continuing, or resulting
from the Initial Extension of Credit, that constitutes a Default. 
  

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 (ix) A certificate of the Secretary or an Assistant Secretary of each Loan Party
certifying the names and true signatures of the officers of such Loan Party authorized to sign each Loan Document to which it is or is to be a party and the other documents to be delivered hereunder and thereunder. 
 (x) Copies of the Acquisition Documents, which shall be in form and substance satisfactory to the Lender Parties, together with all
agreements, instruments and other documents delivered in connection therewith as the Administrative Agent shall request. 
 (xi) Certificate in substantially the form of Exhibit F hereto, attesting to the Solvency of the Loan Parties, before and after giving effect to the Acquisition and the transactions contemplated hereby, from its Chief Financial Officer or
Treasurer, as the case may be. 
 (xii) Such financial, business and other information regarding each Loan Party, the Acquired
Businesses and their respective Subsidiaries as the Administrative Agent shall have requested, including, without limitation: (A) audited combined financial statements of the Acquired Businesses and their respective Subsidiaries for the fiscal
year ended December 31, 2002, (B) an unaudited income statement of the Acquired Businesses and their respective Subsidiaries for the Fiscal Quarter ended March 31, 2003, (C) pro forma Consolidated balance sheet of the
Borrower and its Subsidiaries giving effect to the Acquisition for the Fiscal Quarter ending immediately prior to closing, which in each case, shall meet the requirements of Regulation S-X under the Securities Act of 1933, as amended, and all other
accounting rules and regulations of the SEC promulgated thereunder, and (D) a written certification from the Chief Financial Officer that the
 pro forma financial statements delivered pursuant to clause (C) above and the
forecasts heretofore delivered to the Administrative Agent were prepared in good faith on the basis of the assumptions stated therein, which assumptions are fair and reasonable in light of then existing conditions. 
 (xiii) Evidence of insurance naming the Collateral Agent as additional insured and loss payee with such responsible and reputable
insurance companies or associations, and in such amounts and covering such risks, as is satisfactory to the Lender Parties, including, without limitation, business interruption insurance with a reputable insurer and on terms and in amounts
reasonably acceptable to the Administrative Agent. 
 (xiv) Copies of each employment agreement and other compensation
arrangement with each executive officer of any Loan Party or any of its Subsidiaries as the Administrative Agent shall request. 
 (xv) Copies of all Material Contracts of each Loan Party and its Subsidiaries as the Administrative Agent shall request. 
 (xvi) A Notice of Borrowing or Notice of Issuance, as applicable, relating to the Initial Extension of Credit. 
  

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 (xvii) A favorable opinion of Perkins Coie LLP, counsel for the Loan Parties, in
substantially the form of Exhibit G hereto and as to such other matters as the Administrative Agent may reasonably request. 
 (b) The Administrative Agent shall be reasonably satisfied with, after giving effect to the Acquisition (and other related transactions, including any related mergers), the corporate and legal structure and capitalization of each Loan Party
and each of its Subsidiaries, including the terms and conditions of the charter, bylaws or other constitutive documents and each class of Equity Interest in each Loan Party and each such Subsidiary and of each agreement or instrument relating to
such structure or capitalization. 
 (c) The Administrative Agent shall be satisfied that all Existing Debt, other than
Surviving Debt, has been prepaid, redeemed or defeased in full or otherwise satisfied and extinguished from cash on hand of the Borrower and all commitments relating thereto terminated and that all Surviving Debt shall be on terms and conditions
satisfactory to the Administrative Agent. 
 (d) There shall have occurred no Material Adverse Change since January 31,
2003. 
 (e) There shall exist no action, suit, investigation, litigation or proceeding affecting any Loan Party, the Acquired
Businesses or any of their respective Subsidiaries pending or threatened before any Governmental Authority that (i) could be reasonably likely to have a Material Adverse Effect, (ii) purports to affect the legality, validity or
enforceability of any Loan Document, (iii) seeks to enjoin, restrain, restrict, set aside or prohibit, to impose material conditions upon, or to obtain substantial damages in respect of, the consummation of the Acquisition or the transactions
relating thereto or contemplated hereby or (iv) in the reasonable opinion of the Bookrunner/Co-Arranger, is material to the Borrower and its Subsidiaries, taken as a whole, or any of their respective assets, business operations or financial
condition. 
 (f) There shall be no pending or threatened litigation, proceeding, bankruptcy or insolvency, injunction, order
or claim with respect to the Borrower, the Acquired Businesses or any of their respective Subsidiaries that is material to the Borrower and its Subsidiaries, taken as a whole. 
 (g) All Governmental Authorizations and third party consents and approvals necessary in connection with the Acquisition (and any related
mergers) and the transactions contemplated hereby shall have been obtained (without the imposition of any conditions that are not acceptable to the Lender Parties) and shall remain in effect; all applicable waiting periods in connection with the
transactions contemplated hereby shall have expired without any action being taken by any competent authority, and no law or regulation shall be applicable in the judgment of the Lender Parties, in each case that restrains, prevents or imposes
materially adverse conditions upon the Acquisition (and any related mergers) and the transactions contemplated hereby or the rights of the Loan Parties or their Subsidiaries freely to transfer or otherwise dispose of, or to create any Lien on, any
properties now owned or hereafter acquired by any of them. 
 (h) The Borrower shall have paid all accrued fees of the Agents
and the Lender Parties and all accrued expenses of the Agents (including the accrued fees and expenses of counsel to the Administrative Agent and local counsel to the Lender Parties). 
  

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 (i) The Acquisition and related transactions shall have been consummated for a purchase
price not in excess of £55,000,000 (excluding transaction costs and expenses) strictly in accordance with the terms of the Acquisition Agreement, without any waiver or amendment not consented to by the Administrative Agent of any term,
provision or condition set forth therein, and in compliance with all applicable laws. The Administrative Agent shall be reasonably satisfied with the Acquisition Documents and all legal, tax and other matters relating to the Acquisition or to the
Borrower and its Subsidiaries after giving effect thereto. The Acquisition Agreement shall be in full force and effect. 
 (j)
Neither the Administrative Agent nor the Bookrunner/ Co-Arranger shall have become aware of any information, event, change or other matter that is inconsistent with any confidential information or other matter previously disclosed to them.

 (k) The Bookrunner/ Co-Arranger and the Administrative Agent shall be reasonably satisfied that (i) Pro Forma
EBITDA (as determined by the Administrative Agent) of the Borrower and its Subsidiaries for the four consecutive quarterly periods ending with the last calendar quarter immediately preceding the date hereof shall not be less than $75,000,000; and
(ii) the Leverage Ratio (as determined by the Administrative Agent) of the Borrower and its Subsidiaries (after giving effect to the Acquisition on a pro forma basis as if the Acquisition had been consummated on the first day of the most
recently completed four consecutive Fiscal Quarters) shall not exceed 2.5:1.0 as of the date hereof. 
 SECTION 3.02. Conditions Precedent
to Each Borrowing and Issuance and Renewal. The obligation of each Appropriate Lender to make an Advance (other than a Letter of Credit Advance made by the Issuing Bank or a Revolving Credit Lender pursuant to Section 2.03(c) and a Swing
Line Advance made by a Revolving Credit Lender pursuant to Section 2.02(b)) on the occasion of each Borrowing (including the initial Borrowing), and the obligation of each Issuing Bank to issue a Letter of Credit (including the initial
issuance) or renew a Letter of Credit and the right of the Borrower to request a Swing Line Borrowing, shall be subject to the further conditions precedent that on the date of such Borrowing or issuance or renewal (a) the following statements
shall be true (and each of the giving of the applicable Notice of Borrowing, Notice of Swing Line Borrowing or Notice of Issuance or Notice of Renewal and the acceptance by the Borrower of the proceeds of such Borrowing or of such Letter of Credit
or the renewal of such Letter of Credit shall constitute a representation and warranty by the Borrower that both on the date of such notice and on the date of such Borrowing or issuance or renewal such statements are true): 
 (i) the representations and warranties contained in each Loan Document are correct in all material respects on and as of such date, before
and after giving effect to such Borrowing or issuance or renewal and to the application of the proceeds therefrom, as though made on and as of such date, other than any such representations or warranties that, by their express terms, refer to a
specific date other than the date of such Borrowing or issuance or renewal, in which case as of such specific date; and 
 (ii) no Default has occurred and is continuing, or would result from such Borrowing or issuance or renewal or from the application of the proceeds therefrom. 
 (b) The Administrative Agent shall have received such other approvals, opinions, documents or information as the Administrative Agent may
reasonably request. 
  

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 ARTICLE IV 
 REPRESENTATIONS AND WARRANTIES 
 SECTION 4.01. Representations and Warranties of the Loan
Parties. Each Loan Party represents and warrants as follows: 
 (a) Each Loan Party and each of its Subsidiaries
(i) is a duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, (ii) is duly qualified and in good standing as a foreign corporation in each other jurisdiction in which it owns or
leases property or in which the conduct of its business requires it to so qualify or be licensed except where the failure to so qualify or be licensed could not be reasonably likely to have a Material Adverse Effect and (iii) has all requisite
corporate power and authority (including, without limitation, all Governmental Authorizations) to own or lease and operate its properties and to carry on its business as now conducted and as proposed to be conducted. All of the outstanding Equity
Interests in the Borrower have been validly issued, are fully paid and non-assessable. 
 (b) Set forth on
Schedule 4.01(b) hereto is a complete and accurate list of all Subsidiaries of each Loan Party, showing as of the Amendment No. 5 Effective Date (giving pro forma effect to the CMC Acquisition as of such date) (as to each such Subsidiary)
the jurisdiction of its organization, the number of shares of each class of its Equity Interests authorized, and the number outstanding, on the Amendment No. 5 Effective Date (giving pro forma effect to the CMC Acquisition as of such date) and
the percentage of each such class of its Equity Interests owned (directly or indirectly) by such Loan Party and the number of shares covered by all outstanding options, warrants, rights of conversion or purchase and similar rights as of the
Amendment No. 5 Effective Date (giving pro forma effect to the CMC Acquisition as of such date). All of the outstanding Equity Interests in each Loan Party’s Subsidiaries owned by such Loan Party have been validly issued, are fully paid
and non-assessable and are owned by such Loan Party or one or more of its Subsidiaries free and clear of all Liens, except those created under the Collateral Documents. 
 (c) The execution, delivery and performance by each Loan Party of each Loan Document to which it is or is to be a party, and the
consummation of the transactions contemplated hereby, are within such Loan Party’s corporate powers, have been duly authorized by all necessary corporate action, and do not (i) contravene such Loan Party’s constitutive or governing
documents, (ii) violate any law, rule, regulation (including, without limitation, Regulation X of the Board of Governors of the Federal Reserve System), order, writ, judgment, injunction, decree, determination or award, (iii) conflict
with or result in the breach of, or constitute a default or require any payment to be made under, any contract, loan agreement, indenture, mortgage, deed of trust, lease or other instrument binding on or affecting any Loan Party, any of its
Subsidiaries or any of their properties, including, without limitation, the Senior Subordinated Indenture or the 2007 Senior Notes or (iv) except for the Liens created under the Loan Documents, result in or require the creation or imposition of
any Lien upon or with respect to any of the properties of any Loan Party or any of its Subsidiaries. No Loan Party or any of its Subsidiaries is in violation of any such law, rule, regulation, order, writ, judgment, injunction, decree, determination
or award or in breach of any such contract, loan agreement, indenture, mortgage, deed of trust, lease or other instrument, the violation or breach of which could be reasonably likely to have a Material Adverse Effect. 
  

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 (d) No Governmental Authorization, and no notice to or filing with, any Governmental
Authority or any other third party in the United States is required for (i) the due execution, delivery, recordation, filing or performance by any Loan Party of any Loan Document to which it is or is to be a party, or for the consummation of
the transactions contemplated hereby, (ii) the grant by any Loan Party of the Liens granted by it pursuant to the Collateral Documents, (iii) the perfection or maintenance of the Liens created under the Collateral Documents (including the
first priority nature thereof, except with respect to liens permitted under Section 5.02(a)(ii)), or (iv) the exercise by any Agent or any Lender Party of its rights under the Loan Documents or the remedies in respect of the Collateral
pursuant to the Collateral Documents, except for the authorizations, approvals, actions, notices and filings listed on Schedule 4.01(d) hereto, all of which have been duly obtained, taken, given or made and are in full force and effect. All
applicable waiting periods in connection with the transactions contemplated hereby have expired without any action having been taken by any competent authority restraining, preventing or imposing materially adverse conditions upon the transactions
contemplated hereby or the rights of the Loan Parties or their Subsidiaries freely to transfer or otherwise dispose of, or to create any Lien on, any properties now owned or hereafter acquired by any of them. The Acquisition has been consummated in
accordance with the Acquisition Agreement and applicable law. 
 (e) This Agreement has been, and each other Loan Document
when delivered hereunder will have been, duly executed and delivered by each Loan Party party thereto. This Agreement is, and each other Loan Document when delivered hereunder will be, the legal, valid and binding obligation of each Loan Party party
thereto, enforceable against such Loan Party in accordance with its terms. 
 (f) There is no action, suit, investigation,
litigation or proceeding affecting any Loan Party or any of its Subsidiaries, including any Environmental Action, pending or threatened before any Governmental Authority or arbitrator that (i) could be reasonably likely to have a Material
Adverse Effect or (ii) purports to affect the legality, validity or enforceability of any Loan Document or the consummation of the transactions contemplated hereby. 
 (g) The Consolidated balance sheet of the Borrower and its Subsidiaries as at October 25, 2002, and the related Consolidated and
consolidating statements of income and Consolidated statement of cash flows of the Borrower and its Subsidiaries for the fiscal year then ended, accompanied by (in the case of Consolidated statements) an unqualified opinion of Ernst &
Young, independent public accountants, and the Consolidated balance sheet of the Borrower and its Subsidiaries as at January 31, 2003, and the related Consolidated and consolidating statements of income and Consolidated statement of cash flows
of the Borrower and its Subsidiaries for the three months then ended, duly certified by the Chief Financial Officer, copies of which have been furnished to each Lender Party, fairly present the Consolidated and consolidating financial condition of
the Borrower and its Subsidiaries as at such dates and the Consolidated and consolidating results of operations of the Borrower and its Subsidiaries for the periods ended on such dates, all in accordance with generally accepted accounting principles
applied on a consistent basis, and (i) for the period through the Effective Date, since October 25, 2002, and (ii) for the period after the Effective Date, since the Effective Date, there has been no Material Adverse Change.

 (h) The Consolidated pro forma balance sheet of the Borrower and its Subsidiaries as at January 31, 2003,
and the related Consolidated and consolidating pro forma statements of income and cash flows of the Borrower and its Subsidiaries for the three months then ended, certified by the Chief Financial Officer, copies of which have been
furnished to each Lender Party, fairly present the Consolidated and consolidating pro forma financial condition of the Borrower and its Subsidiaries as at such date and the Consolidated and consolidating pro forma results of
operations of the Borrower and its Subsidiaries for the period ended on such date, in each case giving effect to the Acquisition and the transactions contemplated hereby, all in accordance with GAAP. 
  

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 (i) Reserved. 
 (j) Reserved. 
 (k) The Borrower is not engaged in the business of extending credit for the purpose of purchasing or carrying Margin Stock, and no proceeds of any Advance or drawings under any Letter of Credit 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. 
 (l) Neither any Loan Party
nor any of its Subsidiaries is 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. Neither any Loan Party nor any of its Subsidiaries is a “holding company”, or a “subsidiary company” of a “holding company”, or an “affiliate” of a “holding
company” or of a “subsidiary company” of a “holding company”, as such terms are defined in the Public Utility Holding Company Act of 1935, as amended. Neither the making of any Advances, nor the issuance of any Letters of
Credit, nor the application of the proceeds or repayment thereof by the Borrower, nor the consummation of the other transactions contemplated by the Loan Documents, will violate any provision of any such Act or any rule, regulation or order of the
Securities and Exchange Commission thereunder. 
 (m) Neither any Loan Party nor any of its Subsidiaries is a party to any
indenture, loan or credit agreement or any lease or other agreement or instrument or subject to any charter (or constitutive) or corporate restriction that could be reasonably likely to have a Material Adverse Effect. 
 (n) All filings and other actions necessary or desirable in the United States to perfect and protect the security interest in the
Collateral created under the Collateral Documents as of the date hereof have been duly made or taken and are in full force and effect, other than the entering into of deposit account control agreements in accordance with Section 9-312(b)(1) and
(2) of the UCC. The Collateral Documents create in favor of the Collateral Agent for the benefit of the Secured Parties a valid and, together with such filings and other actions, perfected first priority security interest in the Collateral to
the extent such security interest can be perfected in the United States (except to the extent that deposits account control agreements have not been entered into and for the liens permitted under the Loan Documents) securing the payment of the
Secured Obligations, and all filings and other actions necessary or desirable to perfect and protect such security interest in the United States have been duly taken. The Loan Parties are the legal and beneficial owners of the Collateral free and
clear of any Lien, except for the liens and security interests created or permitted under the Loan Documents. 
 (o) The Loan
Parties and their Subsidiaries, taken as a whole, are Solvent. 
 (p) (i) The operations and properties of each Loan Party and
each of its Subsidiaries comply in all material respects with all applicable Environmental Laws and Environmental Permits, all past non-compliance with such Environmental Laws and Environmental Permits has been resolved without any material ongoing
obligations or costs, and no circumstances exist that could be reasonably likely to (A) form the basis of an Environmental Action against any Loan Party or any of its Subsidiaries or any of their properties that could reasonably be expected to
have a Material Adverse Effect or (B) cause any such property to be subject to any restrictions on ownership, occupancy, use or transferability under any Environmental Law. 
  

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 (ii) (A) None of the properties currently or formerly owned or operated by any Loan Party
or any of its Subsidiaries is listed on the NPL, or on the CERCLIS, or, to the best of our knowledge, on any analogous foreign, state or local list, or, to the best of our knowledge, proposed for listing on the NPL or on the CERCLIS or any analogous
foreign, state or local list; (B) except as individually or in the aggregate could not reasonably be expected to have a Material Adverse Effect, there are no and never have been any underground or aboveground storage tanks or any surface
impoundments, septic tanks, pits, sumps or lagoons in which Hazardous Materials are being or have been treated, stored or disposed on any property currently owned or operated by any Loan Party or any of its Subsidiaries or, to the best of its
knowledge, on any property formerly owned or operated by any Loan Party or any of its Subsidiaries; (C) except as individually or in the aggregate could not reasonably be expected to have a Material Adverse Effect, there is no asbestos or
asbestos-containing material on any property currently owned or operated by any Loan Party or any of its Subsidiaries; and (D) except as individually or in the aggregate could not reasonably be expected to have a Material Adverse Effect,
Hazardous Materials have not been released, discharged or disposed of on any property currently or formerly owned or operated by any Loan Party or any of its Subsidiaries. 
 (iii) Neither any Loan Party nor any of its Subsidiaries is undertaking, and has not completed, either individually or together with other
potentially responsible parties, any investigation or assessment or remedial or response action relating to any actual or threatened release, discharge or disposal of Hazardous Materials at any site, location or operation, either voluntarily or
pursuant to the order of any governmental or regulatory authority or the requirements of any Environmental Law that could reasonably be expected to have a Material Adverse Effect; and all Hazardous Materials generated, used, treated, handled or
stored at, or transported to or from, any property currently or formerly owned or operated by any Loan Party or any of its Subsidiaries have been disposed of in a manner not reasonably expected to result in material liability to any Loan Party or
any of its Subsidiaries. 
 (q) (i) Neither any Loan Party nor any of its Subsidiaries is party to any tax sharing agreement
other than a tax sharing agreement approved by the Required Lenders. 
 (ii) Each Loan Party and each of its Subsidiaries and
Affiliates has filed, has caused to be filed or has been included in all Tax Returns required to be filed and has paid all taxes shown thereon to be due, together with applicable interest and penalties. 
 (iii) Set forth on Schedule 4.01(q) hereto is a complete and accurate list, as of the date hereof, of each taxable year of each Loan
Party and each of its Subsidiaries and Affiliates for which Federal income tax returns have been filed and for which the expiration of the applicable statute of limitations for assessment or collection has not occurred by reason of extension or
otherwise (an “Open Year”). 
 (iv) As of the date hereof, no issues have been raised by the Internal
Revenue Service in any manner whatsoever, whether by proposed adjustment or otherwise, with respect to federal income tax liability of the Loan Parties of any of their respective Subsidiaries and Affiliates for any Open Years that, in the aggregate,
could be reasonably likely to have a Material Adverse Effect. 
  

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 (v) As of the date hereof, no issues have been raised by any state, local and foreign
taxing authority in any manner whatsoever, whether by proposed adjustment or otherwise, with respect to the state, local and foreign tax liability of the Loan Parties or any of their respective Subsidiaries and Affiliates for any Open Year that, in
the aggregate, could be reasonably likely to have a Material Adverse Effect. 
 (vi) The Acquisition will not be taxable to
the Borrower or any of its Subsidiaries or Affiliates. 
 (vii) No “ownership change” as defined in
Section 382(g) of the Internal Revenue Code, and no event that would result in the application of the “separate return limitation year” or “consolidated return change of ownership” limitations under the applicable Treasury
Regulations, has occurred with respect to the Borrower. 
 (r) Neither the business nor the properties of any Loan Party or
any of its Subsidiaries are affected by any fire, explosion, accident, strike, lockout or other labor dispute, drought, storm, hail, earthquake, embargo, act of God or of the public enemy or other casualty (whether or not covered by insurance) that
could be reasonably likely to have a Material Adverse Effect. 
 (s) Set forth on Schedule 4.01(s) hereto is a complete
and accurate list of all Existing Debt (other than Surviving Debt), showing as of the date hereof the obligor and the principal amount outstanding thereunder. 
 (t) Set forth on Schedule 4.01(t) hereto is a complete and accurate list of all Surviving Debt, showing as of the Amendment
No. 5 Effective Date (giving pro forma effect to the CMC Acquisition as of such date) the obligor and the principal amount outstanding thereunder, the maturity date thereof and the amortization schedule therefor. 
 (u) Set forth on Schedule 4.01(u) hereto is a complete and accurate list of all Liens of each U.S. Loan Party on the property or
assets located in the United States of any such Loan Party or any of its U.S. Subsidiaries, showing as of Amendment No. 5 Effective Date (giving pro forma effect to the CMC Acquisition as of such date) the lienholder thereof, the principal
amount of the obligations secured thereby and the property or assets of such Loan Party or such Subsidiary subject thereto. 
 (v) Set forth on Schedule 4.01(v) hereto is a complete and accurate list of all real property owned by any Loan Party or any of its Subsidiaries, showing as of the date hereof the street address, county or other relevant jurisdiction,
state, record owner and replacement value thereof. Each Loan Party or such Subsidiary has good, marketable and insurable fee simple title to such real property, free and clear of all Liens, other than Liens created or permitted by the Loan
Documents. 
 (w) Set forth on Schedule 4.01(w) hereto is a complete and accurate list of all leases of real property
under which any Loan Party or any of its Subsidiaries is the lessee, showing as of the date hereof the street address, city or other relevant jurisdiction, state, lessor, lessee, expiration date and annual rental cost thereof. Each such lease that
is material to the business of the Loan Parties is the legal, valid and binding obligation of the lessor thereof, enforceable in accordance with its terms. 
 (x) Set forth on Schedule 4.01(x) hereto is a complete and accurate list of all Investments held by any Loan Party or any of its Subsidiaries on the Amendment No. 7 Effective Date, showing as of the
Amendment No. 7 Effective Date the amount, obligor or issuer and maturity, if any, thereof. 
  

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 (y) Set forth on Schedule 4.01(y) hereto is a complete and accurate list of all U.S.
patents, trademarks, trade names, service marks and copyrights, and all applications therefor and licenses thereof, of each U.S. Loan Party or any of its U.S. Subsidiaries, showing as of the date hereof, if registered, the jurisdiction in which
registered, the registration number, the date of registration and the expiration date. 
 (z) Set forth on
Schedule 4.01(z) hereto is a complete and accurate list of all Material Contracts of each Loan Party and its Subsidiaries, showing as of the date hereof the parties, subject matter and term thereof. Each such Material Contract has been duly
authorized, executed and delivered by all parties thereto, has not been amended or otherwise modified, is in full force and effect and is binding upon and enforceable against all parties thereto in accordance with its terms, and there exists no
default under any Material Contract by any party thereto. 
 (aa) (i) No ERISA Event has occurred or is reasonably expected to
occur with respect to any Plan. 
 (ii) Schedule B (Actuarial Information) to the most recent annual report (Form 5500
Series) for each Plan, copies of which have been filed with the Internal Revenue Service and furnished to the Lender Parties, is complete and accurate in all material respects and fairly presents the funding status of such Plan, and since the date
of such Schedule B there has been no material adverse change in such funding status. 
 (iii) Neither any Loan Party nor
any ERISA Affiliate has incurred or is reasonably expected to incur any material Withdrawal Liability to any Multiemployer Plan. 
 (iv) Neither any Loan Party nor any ERISA Affiliate has been notified by the sponsor of a Multiemployer Plan that such Multiemployer Plan is in reorganization or has been terminated, within the meaning of Title IV of ERISA, and no such
Multiemployer Plan is reasonably expected to be in reorganization or to be terminated, within the meaning of Title IV of ERISA. 
 (bb) The Obligations of the Borrower under this Agreement constitute “Senior Debt” and “Designated Senior Debt” under and for all purposes of the Senior Subordinated Indenture. 
 ARTICLE V 
 COVENANTS OF THE LOAN
PARTIES 
 SECTION 5.01. Affirmative Covenants. So long as any Advance or any other Obligation of any Loan Party under any Loan
Document shall remain unpaid, any Letter of Credit shall be outstanding or any Lender Party shall have any Commitment hereunder, each Loan Party will: 
 (a) Compliance with Laws, Etc. Comply, and cause each of its Subsidiaries to comply, in all material respects, with all applicable laws, rules, regulations and orders, such compliance to include, without
limitation, compliance with ERISA and the Racketeer Influenced and Corrupt Organizations Chapter of the Organized Crime Control Act of 1970, as amended, except to the extent that any non-compliance, individually or in the aggregate, could not
reasonably be expected to have a Material Adverse Effect. 
  

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 (b) Payment of Taxes, Etc. Pay and discharge, and cause each of its Subsidiaries
to pay and discharge, before the same shall become delinquent, (i) all material taxes, assessments and governmental charges or levies imposed upon it or upon its property and (ii) all lawful claims that, if unpaid, might by law become a
Lien upon its property; provided, however, that neither the Borrower nor any of its Subsidiaries shall be required to pay or discharge any such tax, assessment, charge, levy or claim that is being contested in good faith and by
appropriate proceedings and as to which adequate reserves in accordance with GAAP are being maintained, unless and until any Lien resulting therefrom attaches to its property and becomes enforceable against its other creditors. 
 (c) Compliance with Environmental Laws. Comply, and cause each of its Subsidiaries and all lessees and other Persons operating or
occupying its properties to comply, in all material respects, with all applicable Environmental Laws and Environmental Permits; obtain and renew, and cause each of its Subsidiaries to obtain and renew, all Environmental Permits necessary for its
operations and properties; and conduct, and cause each of its Subsidiaries to conduct, any investigation, study, sampling and testing, and undertake any cleanup, removal, remedial or other action necessary to remove and clean up all Hazardous
Materials from any of its properties, in accordance with the requirements of all Environmental Laws; provided, however, that neither the Borrower nor any of its Subsidiaries shall be required to undertake any such cleanup, removal,
remedial or other action to the extent that its obligation to do so is being contested in good faith and by proper proceedings and appropriate reserves are being maintained with respect to such circumstances. 
 (d) Maintenance of Insurance. Maintain, and cause each of its Subsidiaries to maintain, 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 any Loan Party or any of its Subsidiaries
operates. 
 (e) Preservation of Corporate Existence, Etc. Preserve and maintain, and cause each of its Subsidiaries to
preserve and maintain, its existence, legal structure, legal name, rights (charter and statutory), permits, licenses, approvals, privileges and franchises; provided, however, that the Borrower may consummate the Acquisition and any
other merger or consolidation expressly permitted under Section 5.02(d) or liquidate or dissolve any Subsidiary that has no assets or has sold, disposed of or otherwise disposed of all of its assets to a Loan Party. 
 (f) Visitation Rights. At any reasonable time and from time to time, upon reasonable notice, permit any of the Agents or any of the
Lender Parties, or any agents or representatives thereof, to examine and make copies of and abstracts from the records and books of account of, and visit the properties of, the Borrower and any of its Subsidiaries, and to discuss the affairs,
finances and accounts of the Borrower and any of its Subsidiaries with any of their officers or directors and with their independent certified public accountants, which shall be at the expense of the Borrower only if an Event of Default has occurred
and is continuing. 
 (g) Keeping of Books. Keep, and cause each of its Subsidiaries to keep, proper books of record
and account, in which full and correct entries shall be made of all financial transactions and the assets and business of the Borrower and each such Subsidiary in accordance with generally accepted accounting principles in effect from time to time.

  

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 (h) Maintenance of Properties, Etc. Maintain and preserve, and cause each of its
Subsidiaries to maintain and preserve, all of its properties that are used or useful in the conduct of its business in good working order and condition, ordinary wear and tear excepted. 
 (i) Transactions with Affiliates. Conduct, and cause each of its Subsidiaries to conduct, all transactions otherwise permitted
under the Loan Documents with any of their Affiliates on terms that are fair and reasonable and no less favorable to the Borrower or such Subsidiary than it would obtain in a comparable arm’s-length transaction with a Person not an Affiliate.

 (j) Covenant to Guarantee Obligations and Give Security. 
 (i) Upon the formation or acquisition of any new direct or indirect Domestic Subsidiaries by any Loan Party, then at the Borrower’s
expense, within 30 days after such formation or acquisition, cause each such Subsidiary, and cause each direct and indirect parent of such Subsidiary that is formed under the laws of the United States (if it has not already done so), to duly execute
and deliver to the Collateral Agent a guaranty or guaranty supplement, in form and substance satisfactory to the Collateral Agent, guaranteeing the other Loan Parties’ obligations under the Loan Documents; 
 (ii) Within 15 Business Days after any Material Acquisition, furnish to the Collateral Agent a description of the real and personal
properties of the Material Target of such Material Acquisition in detail satisfactory to the Collateral Agent; 
 (iii) Within
30 days after any Material Acquisition of assets by any Loan Party, duly execute and deliver, and cause such Loan Party to duly execute and deliver, to the Collateral Agent such additional mortgages, pledges, assignments, security agreement
supplements, intellectual property security agreement supplements and other security agreements as specified by, and in form and substance satisfactory to the Collateral Agent, with respect to the Material Target of such Material Acquisition;

 (iv) Within 30 days after any Material Acquisition of any new Subsidiary, (A) duly execute and deliver to the
Collateral Agent pledges of the Equity Interests of the Material Target of such Material Acquisition and (B) deliver any certificates representing such pledged Equity Interests, together with appropriate stock powers, to the Collateral Agent,
in each case as specified by, and in form and substance satisfactory to the Collateral Agent, securing payment of all of the obligations of the Loan Parties under the Loan Documents; provided that if the Material Target of such Material
Acquisition is a CFC, only 65% of such Equity Interests shall be pledged in favor of the Secured Parties; 
 (v) Within 30
days after any Material Acquisition of any new Domestic Subsidiary, cause the Material Target of such Material Acquisition to (A) duly execute and deliver to the Collateral Agent mortgages, pledges, assignments, security agreement supplements,
intellectual property security agreement supplements and other security agreements with respect to all tangible and intangible assets of such Material Target, as specified by, and in form and substance satisfactory to the Collateral Agent, securing
payment of all of the obligations of the Loan Parties under the Loan Documents and (B) take, whatever action (including, without limitation, the recording of mortgages, the filing of Uniform Commercial Code financing statements, the giving of
notices and the endorsement of notices on title documents) may be necessary or advisable in the opinion of the Collateral Agent to vest in the Collateral Agent (or in any representative of the Collateral Agent designated by it) valid and subsisting
Liens on the properties purported 

  

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to be subject to the mortgages, pledges, assignments, security agreement supplements, intellectual property security agreement supplements and security
agreements delivered pursuant to this Section 5.01(j), enforceable against all third parties in accordance with their terms; 
 (vi) Within 30 days after any Material Acquisition or the formation or acquisition of any new direct or indirect Domestic Subsidiaries by any Loan Party, deliver to the Collateral Agent, upon the request of the Collateral Agent in its sole
discretion, a signed copy of a favorable opinion, addressed to the Collateral Agent and the other Secured Parties, of counsel for the Loan Parties acceptable to the Collateral Agent as to (1) the matters contained in clauses (i), (iii),
(iv) and (v) above, (2) such guaranties, guaranty supplements, mortgages, pledges, assignments, security agreement supplements, intellectual property security agreement supplements and security agreements being legal, valid and
binding obligations of each Loan Party party thereto enforceable in accordance with their terms, (3) such recordings, filings, notices, endorsements and other actions being sufficient to create valid perfected Liens on such properties, and
(4) such other matters as the Collateral Agent may reasonably request; and 
 (vii) At any time and from time to time,
promptly execute and deliver, and cause each Loan Party to execute and deliver, any and all further instruments and documents and take, and cause each Loan Party to take, all such other action as the Collateral Agent may deem reasonably necessary or
desirable in obtaining the full benefits of, or in perfecting and preserving the Liens of, such guaranties, mortgages, pledges, assignments, security agreement supplements, intellectual property security agreement supplements and security
agreements. 
 (k) Further Assurances. (i) Promptly upon request by any Agent, or any Lender Party through the
Administrative Agent, correct, and cause each of its Subsidiaries promptly to correct, any material defect or error that may be discovered in any Loan Document or in the execution, acknowledgment, filing or recordation thereof, and 
 (ii) Promptly upon request by any Agent, or any Lender Party through the Administrative Agent, do, execute, acknowledge, deliver, record,
re-record, file, re-file, register and re-register any and all such further acts, deeds, conveyances, pledge agreements, mortgages (to the extent required), deeds of trust (to the extent required), trust deeds (to the extent required), assignments,
financing statements and continuations thereof, termination statements, notices of assignment, transfers, certificates, assurances and other instruments as any Agent, or any Lender Party through the Administrative Agent, may reasonably require from
time to time in order to (A) carry out more effectively the purposes of the Loan Documents, (B) to the fullest extent permitted by applicable law, subject any Loan Party’s or any of its Subsidiaries’ properties, assets, rights or
interests to the Liens now or hereafter intended to be covered by any of the Collateral Documents, (C) perfect and maintain the validity, effectiveness and priority of any of the Collateral Documents and any of the Liens intended to be created
thereunder and (D) assure, convey, grant, assign, transfer, preserve, protect and confirm more effectively unto the Secured Parties the rights granted or now or hereafter intended to be granted to the Secured Parties under any Loan Document or
under any other instrument executed in connection with any Loan Document to which any Loan Party or any of its Subsidiaries is or is to be a party, and cause each of its Subsidiaries to do so. 
  

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 (l) Performance of Acquisition Documents. Perform and observe, and cause each of
its Subsidiaries to perform and observe, all of the terms and provisions of each Acquisition Document to be performed or observed by it, maintain each such Acquisition Document in full force and effect, enforce such Acquisition Document in
accordance with its terms, take all such action to such end as may be from time to time reasonably requested by the Administrative Agent and, upon request of the Administrative Agent, make to each other party to each such Acquisition Document such
demands and requests for information and reports or for action as any Loan Party or any of its Subsidiaries is entitled to make under such Acquisition Document. 
 (m) Compliance with Terms of Leaseholds. Make all payments and otherwise perform all obligations in respect of all leases of real
property to which the Borrower or any of its Subsidiaries is a party, keep such leases in full force and effect and not allow such leases to lapse or be terminated or any rights to renew such leases to be forfeited or cancelled, notify the
Administrative Agent of any default by any party with respect to such leases and cooperate with the Administrative Agent in all respects to cure any such default, and cause each of its Subsidiaries to do so, except, in any case, where the failure to
do so, either individually or in the aggregate, could not be reasonably likely to have a Material Adverse Effect. 
 (n)
Cash Concentration Accounts. Within three months of the date hereof, maintain, and cause each of its Subsidiaries to maintain, main cash concentration accounts with a Lender Party. 
 (o) Performance of Material Contracts. Perform and observe all the terms and provisions of each Material Contract to be performed
or observed by it, maintain each such Material Contract in full force and effect, enforce each such Material Contract in accordance with its terms, take all such action to such end as may be from time to time requested by the Administrative Agent
and, upon request of the Administrative Agent, make to each other party to each such Material Contract such demands and requests for information and reports or for action as any Loan Party or any of its Subsidiaries is entitled to make under such
Material Contract, and cause each of its Subsidiaries to do so, except, in any case, where the failure to do so, either individually or in the aggregate, could not be reasonably likely to have a Material Adverse Effect. 
 SECTION 5.02. Negative Covenants. So long as any Advance or any other Obligation of any Loan Party under any Loan Document shall remain unpaid,
any Letter of Credit shall be outstanding or any Lender Party shall have any Commitment hereunder, the Borrower will not, at any time: 
 (a) Liens, Etc. Create, incur, assume or suffer to exist, or permit any of its Subsidiaries to create, incur, assume or suffer to exist, any Lien on or with respect to any of its properties of any character
(including, without limitation, accounts) whether now owned or hereafter acquired, or sign or file or suffer to exist, or permit any of its Subsidiaries to sign or file or suffer to exist, under the Uniform Commercial Code of any jurisdiction, a
financing statement that names the Borrower or any of its Subsidiaries as debtor, or sign or suffer to exist, or permit any of its Subsidiaries to sign or suffer to exist, any security agreement authorizing any secured party thereunder to file such
financing statement, or assign, or permit any of its Subsidiaries to assign, any accounts or other right to receive income, except: 
 (i) Liens created under the Loan Documents; 
 (ii) Permitted Liens; 
  

 62 

 (iii) Liens existing on the date hereof and described on Schedule 4.01(u) hereto
and, with respect to any Liens described on Schedule 4.01(u) that secure Surviving Debt, any extensions, renewals or replacements of such Liens in connection with refinancing or replacement of Surviving Debt permitted under
Section 5.02(b)(iii)(D) provided that no such Lien shall extend to or cover any additional property; 
 (iv)
purchase money Liens upon or in real property or equipment acquired or held by the Borrower or any of its Subsidiaries in the ordinary course of business to secure the purchase price of such property or equipment or to secure Debt incurred solely
for the purpose of financing the acquisition, construction or improvement of any such property or equipment to be subject to such Liens, or Liens existing on any such property or equipment at the time of acquisition (other than any such Liens
created in contemplation of such acquisition that do not secure the purchase price), or extensions, renewals or replacements of any of the foregoing for the same or a lesser amount; provided, however, that no such Lien shall extend to
or cover any property other than the property or equipment (and, to the extent segregated and identifiable, the proceeds thereof) being acquired, constructed or improved, and no such extension, renewal or replacement shall extend to or cover
any property not theretofore subject to the Lien being extended, renewed or replaced; and provided further that the aggregate principal amount of the Debt secured by Liens permitted by this clause (iv) shall not exceed the amount
permitted under Section 5.02(b)(iii)(B) at any time outstanding; 
 (v) Liens arising in connection with Capitalized
Leases of the Borrower permitted under Section 5.02(b)(iii)(C); provided that no such Lien shall extend to or cover any Collateral or assets other than the assets subject to such Capitalized Leases; and 
 (vi) Liens on the assets of any Person that becomes a Subsidiary of the Borrower securing Debt permitted under Section 5.02
(b)(iii)(E) (other than Liens incurred solely in contemplation of such Person becoming a Subsidiary of the Borrower). 
 (b)
Debt. Create, incur, assume or suffer to exist, or permit any of its Subsidiaries to create, incur, assume or suffer to exist, any Debt, except: 
 (i) in the case of the Borrower, 
 (A) Debt in respect of Hedge Agreements designed to hedge
against fluctuations in interest rates or foreign exchange rates, and not for speculative purposes, incurred in the ordinary course of business and consistent with prudent business practice, and 
 (B) Debt owed to a wholly owned Subsidiary of the Borrower, which Debt (x) shall be on subordinated terms reasonably acceptable to
the Administrative Agent and (y) shall be evidenced by promissory notes in form and substance reasonably satisfactory to the Administrative Agent. 
 (ii) in the case of any Subsidiary of the Borrower, Debt owed to the Borrower or to a wholly owned Subsidiary of the Borrower, provided that, in each case, such Debt (x) shall be on terms reasonably
acceptable to the Administrative Agent and (y) shall be evidenced by promissory notes in form and substance reasonably satisfactory to the Administrative Agent; and 
 (iii) in the case of the Borrower and its Subsidiaries, 
  

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 (A) Debt under the Loan Documents (which, in the case of Secured Hedge Agreements,
should be consistent with the terms of Section 5.02(b)(i)(A)), 
 (B) Debt secured by Liens permitted by
Section 5.02(a)(iv) not to exceed in the aggregate $30,000,000 at any time outstanding, 
 (C) (1) Debt arising under
the Korry Lease in an aggregate amount not to exceed $26,500,000 at any time outstanding and (2) other Capitalized Leases not to exceed in the aggregate $50,000,000 at any time outstanding, 
 (D) the Surviving Debt, and any Debt extending the maturity of, or refunding or refinancing, in whole or in part, any Surviving Debt and
any Debt in respect of the Senior Subordinated Notes or the 2007 Senior Notes, provided that the terms of any such extending, refunding or refinancing Debt, and of any agreement entered into and of any instrument issued in connection
therewith, are not otherwise prohibited by the Loan Documents, provided further that the principal amount of such Surviving Debt or Debt in respect of the Senior Subordinated Notes or the 2007 Senior Notes shall not be increased above the
principal amount thereof outstanding immediately prior to such extension, refunding or refinancing, and the direct and contingent obligors therefor shall not be changed, as a result of or in connection with such extension, refunding or refinancing,
provided still further that the terms relating to principal amount, amortization, maturity, collateral (if any) and subordination (if any), and other material terms taken as a whole, of any such extending, refunding or refinancing Debt, and
of any agreement entered into and of any instrument issued in connection therewith, are no less favorable in any material respect to the Loan Parties or the Lender Parties than the terms of any agreement or instrument governing the Debt being
extended, refunded or refinanced and the interest rate applicable to any such extending, refunding or refinancing Debt does not exceed the then applicable market interest rate, 
 (E) Debt of any Person that becomes a Subsidiary of the Borrower after the date hereof in accordance with the terms of
Section 5.02(f) which Debt does not exceed $10,000,000 in the aggregate and is existing at the time such Person becomes a Subsidiary of the Borrower (other than Debt incurred solely in contemplation of such Person becoming a Subsidiary of the
Borrower), 
 (F) Contingent Obligations in respect of Debt or other obligations of a Loan Party, 
 (G) unsecured Debt of any Subsidiary not otherwise permitted under this Section 5.02(b) not to exceed in the aggregate $50,000,000
at any time outstanding, 
 (H) Debt of the Borrower not to exceed $30,000,000 and secured by a Lien permitted pursuant to
clause (f) of the definition of Permitted Liens; provided that no Event of Default shall then exist or would exist after giving effect to the incurrence thereof on a pro forma basis, and 
  

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 (I) unsecured Debt of the Borrower not otherwise permitted under this
Section 5.02(b); provided that no Event of Default shall then exist or would exist after giving effect to the incurrence thereof on a pro forma basis. 
 (c) Change in Nature of Business. Make, or permit any of its Subsidiaries to make, any material change in the nature of its
business as carried on at the date hereof. 
 (d) Mergers, Etc. Merge into or consolidate with any Person or permit any
Person to merge into it, or permit any of its Subsidiaries to do so, except that: 
 (i) the Borrower may consummate the
Acquisition; 
 (ii) any Subsidiary of the Borrower may merge into or consolidate with any other Subsidiary of the Borrower,
provided that, in the case of any such merger or consolidation, the Person formed by such merger or consolidation shall be a wholly owned Subsidiary of the Borrower, provided further that, in the case of any such merger or
consolidation to which a Subsidiary Guarantor is a party, the Person formed by such merger or consolidation shall be a Subsidiary Guarantor; 
 (iii) in connection with any sale or other disposition permitted under Section 5.02(e)(v), any Subsidiary of the Borrower may merge into or consolidate with any other Person or permit any other Person to merge
into or consolidate with it; 
 (iv) any merger of a Subsidiary of the Borrower, pursuant to which the survivor is a
Subsidiary Guarantor, in order to consummate an Investment expressly permitted in Section 5.03(f)(viii) or (ix); 
 (v)
any merger of a Subsidiary Guarantor into the Borrower so long as the survivor is the Borrower; 
 provided, however, that in each
case, immediately before and after giving effect thereto, no Default shall have occurred and be continuing. 
 (e) Sales,
Etc., of Assets. Sell, lease, transfer or otherwise dispose of, or permit any of its Subsidiaries to sell, lease, transfer or otherwise dispose of, any assets, or grant any option or other right to purchase, lease or otherwise acquire any
assets, except: 
 (i) sales of Inventory in the ordinary course of its business and the granting of any option or other right
to purchase, lease or otherwise acquire Inventory in the ordinary course of its business; 
 (ii) in a transaction authorized
by Section 5.02(d)(ii); 
 (iii) sales, transfers or other dispositions of assets among the Borrower and Subsidiary
Guarantors or among a Subsidiary Guarantor and other Subsidiary Guarantors; 
 (iv) so long as no Default has occurred is
continuing, the sale of the stock or assets of W.A. Whitney Co., W.A. Whitney Italia Co. or Excellon Automation Co. and their respective direct and indirect Subsidiaries for fair market value; 
  

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 (v) the sale of any assets by the Borrower or any Subsidiary (other than a bulk sale of
Inventory and a sale of Receivables other than delinquent accounts for collection purposes only) pursuant to one asset sale or a series of related asset sales so long as (A) no Default has occurred and is continuing, (B) the purchase price
paid to the Borrower or such Subsidiary for such asset shall be no less than the fair market value of such asset at the time of such sale, (C) the purchase price for such asset shall be paid to the Borrower or such Subsidiary shall consist of
at least 40% cash (other than in connection with asset sales involving aggregate Investments not exceeding $10,000,000 in the aggregate at any time) and (D) the aggregate purchase price paid to the Borrower or any Subsidiary for any such assets
shall not exceed $75,000,000; 
 (vi) sales, transfers and dispositions of assets by any Subsidiary Guarantor to any
Subsidiary that is not a Subsidiary Guarantor (A) if the terms of such sale, transfer or disposition, and consideration therefor, are on an arm’s-length basis, would be fair and reasonable for non-Affiliated transactions and are for 100%
cash or (B) to the extent permitted by Section 5.02(f); and 
 (vii) so long as no Default shall occur and be
continuing, the grant of any option or other right to purchase any asset in a transaction that would be permitted under the provisions of clause (iv) or (v) above. 
 (f) Investments in Other Persons. Make or hold, or permit any of its Subsidiaries to make or hold, any Investment in any Person,
except: 
 (i) (A) equity Investments by the Borrower and its Subsidiaries in their Subsidiaries outstanding on the Amendment
No. 5 Effective Date (giving pro forma effect to the CMC Acquisition as of such date), (B) additional equity Investments in Loan Parties and equity Investments in newly-formed, wholly-owned Subsidiaries that become Subsidiary Guarantors
upon formation thereof, (C) additional equity Investments in wholly owned Subsidiaries that are not Loan Parties in an aggregate amount invested from the Amendment No. 5 Effective Date (giving pro forma effect to the CMC Acquisition as of
such date) not to exceed $50,000,000 and (D) equity Investments by Subsidiaries that are not Subsidiary Guarantors in Subsidiaries; 
 (ii) loans and advances to employees in the ordinary course of the business of the Borrower and its Subsidiaries as presently conducted in an aggregate principal amount not to exceed $1,000,000 at any time
outstanding; 
 (iii) Investments by the Borrower and its Subsidiaries in Cash Equivalents; 
 (iv) Investments existing on the Amendment No. 7 Effective Date and described on Schedule 4.01(x) hereto; 
 (v) Investments by the Borrower in Hedge Agreements permitted under Section 5.02(b); 
 (vi) Investments consisting of intercompany Debt permitted under Section 5.02(b); 
 (vii) Contingent Obligations permitted under Section 5.02(b)(iii)(F); 
  

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 (viii) the purchase or other acquisition of all of the Equity Interests in, or all or a
substantial portion of the property and assets of or line of business, division or product line of, any Person that, upon the consummation thereof, will be wholly owned directly by the Borrower or one or more of its wholly owned Subsidiaries
(including, without limitation, as a result of a merger or consolidation); provided that, with respect to each purchase or other acquisition made pursuant to this clause (viii): 
 (A) any such newly created or acquired Subsidiary shall comply with the requirements of Section 5.01(j); 
 (B) the lines of business of the Person to be (or the property and assets of which are to be) so purchased or otherwise acquired shall be
substantially the same or similar lines of business as one or more of the principal businesses of the Borrower and its Subsidiaries in the ordinary course; 
 (C) such purchase or other acquisition shall not include or result in any contingent liabilities that could reasonably be expected to be
material to the business, financial condition, operations or prospects of the Borrower and its Subsidiaries, taken as a whole (as determined in good faith by the board of directors (or the persons performing similar functions) of the Borrower or
such Subsidiary if the board of directors is otherwise approving such transaction and, in each other case, by a Responsible Officer); 
 (D) (1) immediately before and immediately after giving pro forma effect to any such purchase or other acquisition, no Default shall have occurred and be continuing and (2) (a) immediately after giving
effect to such purchase or other acquisition, the Borrower and its Subsidiaries shall be in pro forma compliance with all of the covenants set forth in Section 5.04, such compliance to be determined on the basis of the financial information
most recently delivered to the Administrative Agent pursuant to Section 5.03 as though such purchase or other acquisition had been consummated as of the first day of the fiscal period covered thereby and (b) the Administrative Agent shall
have received, with respect to any such purchase or other acquisition or series of related purchases or acquisitions, the total cash and noncash consideration (excluding Equity Interests of the Borrower) paid by or on behalf of the Borrower and its
Subsidiaries for which exceeds $75,000,000, (i) within 30 days after the consummation of such purchase or acquisition, a description of each Person so purchased or acquired, (ii) within 30 days after the consummation of such purchase or
acquisition, a copy of summary financial information and, to the extent available, audited financial statements of each Person so purchased or acquired for the quarter and year most recently ended and (iii) prior to the consummation of such
purchase or acquisition, a certificate from the Borrower certifying that immediately after giving effect to such purchase or other acquisition, the Borrower and its Subsidiaries shall be in pro forma compliance with all of the covenants set forth in
Section 5.04; and 
 (E) the Borrower shall have delivered to the Administrative Agent, on behalf of the Lender Parties,
at least five Business Days prior to the date on which any such purchase or other acquisition is to be consummated, a certificate of a Responsible Officer, in form and substance reasonably satisfactory to the Administrative Agent, certifying that
all of the requirements set forth in this clause (viii) have been satisfied or will be satisfied on or prior to the consummation of such purchase or other acquisition; and 
  

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 (ix) Investments by the Borrower and its Subsidiaries not otherwise permitted under this
Section 5.02(f) in an aggregate amount not to exceed $100,000,000 at any time outstanding; provided that, with respect to each Investment made pursuant to this clause (ix): 
 (A) such Investment shall not include or result in any contingent liabilities that could reasonably be expected to be material to the
business, financial condition, operations or prospects of the Borrower and its Subsidiaries, taken as a whole (as determined in good faith by the board of directors (or persons performing similar functions) of the Borrower or such Subsidiary if the
board of directors is otherwise approving such transaction and, in each other case, by a Responsible Officer); 
 (B) such
Investment shall be in property and assets which are part of, or in lines of business which are, substantially the same lines of business as one or more of the principal businesses of the Borrower and its Subsidiaries in the ordinary course;

 (C) any determination of the amount of such Investment shall include all cash and noncash consideration (including,
without limitation, the fair market value of all Equity Interests issued or transferred to the sellers thereof (excluding Equity Interests of the Borrower), all indemnities, earnouts and other contingent payment obligations to, and the aggregate
amounts paid or to be paid under noncompete, consulting and other affiliated agreements with, the sellers thereof, all write-downs of property and assets and reserves for liabilities with respect thereto and all assumptions of debt, liabilities and
other obligations in connection therewith) paid by or on behalf of the Borrower and its Subsidiaries in connection with such Investment; and 
 (D) immediately before and immediately after giving pro forma effect to any such purchase or other acquisition, no Default shall have occurred and be continuing. 
 (x) (A) The Borrower may equitize up to $24,000,000 of the principal amount owed to it by Esterline Technologies Denmark ApS under the
demand promissory note dated October 30, 2012, (B) Weston Aerospace may equitize up to £44,000,000 of the principal amount owed to it by Angelchance Limited under the demand promissory note dated the date hereof, (C) Esterline
Technologies Acquisition Limited may equitize up to £950,000 of the principal amount owed to it by Angelchance Limited under the demand promissory note dated the date hereof, each referred to in Schedule 4.01(x) hereto and
(D) additional equitization of intercompany Debt approved by the Administrative Agent, which approval shall not be unreasonably withheld. 
 (g) Restricted Payments. Declare or pay any dividends, purchase, redeem, retire, defease or otherwise acquire for value any of its Equity Interests now or hereafter outstanding, return any capital to its
stockholders, partners or members (or the equivalent Persons thereof) as such, make any distribution of assets, Equity Interests, obligations or securities to its stockholders, partners or members (or the equivalent Persons thereof) as such (each of
the foregoing a “Restricted 

  

 68 

 
Payment”), or permit any of its Subsidiaries to do any of the foregoing, or permit any of its Subsidiaries to purchase, redeem, retire, defease
or otherwise acquire for value any Equity Interests in the Borrower or to issue or sell any Equity Interests therein, except dividends payable to the Borrower, the other Loan Parties and their wholly-owned Subsidiaries; provided, that the
Borrower shall be permitted to make Restricted Payments in an aggregate amount not to exceed $20,000,000 in any 12-month period so long as no Default or Event of Default shall then exist or would exist after giving effect to such Restricted Payment.

 (h) Amendments of Constitutive Documents. Amend, or permit any of its Subsidiaries to amend, its certificate of
incorporation or bylaws or other constitutive or governing documents other than amendments that could not be reasonably expected to have a Material Adverse Effect or adversely affect the rights and interests of the Lender Parties. 
 (i) Accounting Changes. Make or permit, or permit any of its Subsidiaries to make or permit, any change in (i) accounting
policies or reporting practices, except as required by generally accepted accounting principles, or (ii) Fiscal Year. 
 (j) Prepayments, Etc., of Debt. (A) Prepay, redeem, purchase, defease or otherwise satisfy prior to the scheduled maturity thereof in any manner, or make any payment in violation of any subordination terms of, the Senior
Subordinated Notes, (B) prepay, redeem, purchase, defease or otherwise satisfy prior to the scheduled maturity thereof in any manner, the principal under the 2007 Senior Notes or (C) amend, modify or change in any manner any term or
condition of or relating to the 2007 Senior Notes, any Surviving Debt, the Senior Subordinated Indenture or, if the Bridge Loans are issued, the Bridge Loan Documentation in any manner that would (1) increase the interest rate or change (to
earlier dates) the dates upon which principal and interest are due thereon; (2) alter the redemption, prepayment or subordination provisions thereof; (3) alter the covenants or events of default in a manner that would make such provisions
more onerous or restrictive to the Borrower or any such Subsidiary; or (4) otherwise increase the obligations of the Borrower or any Subsidiary thereunder, or permit any of its Subsidiaries to do any of the foregoing, other than to prepay any
Debt payable to the Borrower or a Subsidiary Guarantor. Notwithstanding the foregoing, the Borrower shall be permitted to prepay, redeem, purchase, defease or otherwise satisfy prior to the scheduled maturity thereof in any manner, unsecured Debt;
provided that, after giving effect to such prepayment on a pro forma basis (I) the Senior Leverage Ratio (as determined by the Administrative Agent) of the Borrower and its Subsidiaries is less than 3.0:1.0 and (II) the Borrower shall
have at least $25,000,000 of borrowing availability under the Revolving Credit Facility. 
 (k) Amendment, Etc., of
Acquisition Documents. Cancel or terminate any Acquisition Document or consent to or accept any cancellation or termination thereof, amend, modify or change in any manner any term or condition of any Acquisition Document or give any consent,
waiver or approval thereunder, waive any default under or any breach of any term or condition of any Acquisition Document, agree in any manner to any other amendment, modification or change of any term or condition of any Acquisition Document or
take any other action in connection with any Acquisition Document that would materially impair the value of the interest or rights of any Loan Party thereunder or that would impair the rights or interests of any Agent or any Lender Party, or permit
any of its Subsidiaries to do any of the foregoing. 
 (l) Negative Pledge. Enter into or suffer to exist, or permit
any of its Subsidiaries to enter into or suffer to exist, any agreement prohibiting or conditioning the creation or assumption of any Lien upon any of its property or assets except (i) in favor of the Secured Parties, (ii) in connection
with (A) any Debt incurred under the Senior Subordinated Indenture, the Bridge Loan 

  

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Documentation or the 2007 Senior Notes (or any refinancing thereof permitted under Section 5.02(b)(iii)(D)), (B) any Surviving Debt as in effect on
the Effective Date (or any refinancing thereof permitted under Section 5.02(b)(iii)(D)), (C) any purchase money Debt permitted by Section 5.02(b)(iii)(B) solely to the extent that the agreement or instrument governing such Debt
prohibits a Lien on the property acquired with the proceeds of such Debt, (D) any Capitalized Lease permitted by Section 5.02(b)(iii)(C) solely to the extent that such Capitalized Lease prohibits a Lien on the property subject thereto, or
(E) any Debt outstanding on the date any Subsidiary of the Borrower becomes such a Subsidiary (so long as such agreement was not entered into solely in contemplation of such Subsidiary becoming a Subsidiary of the Borrower),
(iii) agreements relating to prohibitions on easements, rights of way or other encumbrances on title to real property and (iv) customary provisions in leases in the ordinary course of business. 
 (m) Partnerships, Etc. Become a general partner in any general or limited partnership or joint venture, or permit any of its
Subsidiaries to do so. 
 (n) Speculative Transactions. Engage, or permit any of its Subsidiaries to engage, in any
transaction involving commodity options or futures contracts or any similar speculative transactions. 
 (o) Formation of
Subsidiaries. Organize or invest, or permit any of its Subsidiaries to organize or invest, in any new Subsidiary except (i) as permitted under Section 5.02(f)(i), (viii) or (ix) or (ii) if the new Subsidiary is a
Subsidiary Guarantor and complies with the requirement of a Subsidiary Guarantor set forth herein. 
 (p) Payment
Restrictions Affecting Subsidiaries. Directly or indirectly, enter into or suffer to exist, or permit any of its Subsidiaries to enter into or suffer to exist, any agreement or arrangement limiting the ability of any of its Subsidiaries to
declare or pay dividends or other distributions in respect of its Equity Interests or repay or prepay any Debt owed to, make loans or advances to, or otherwise transfer assets to or invest in, the Borrower or any Subsidiary of the Borrower (whether
through a covenant restricting dividends, loans, asset transfers or investments, a financial covenant or otherwise), except (i) the Senior Subordinated Indenture, (ii) the Loan Documents, (iii) any agreement or instrument evidencing
Surviving Debt, (iv) the 2007 Note Indenture and (v) any agreement in effect at the time such Subsidiary becomes a Subsidiary of the Borrower, so long as such agreement was not entered into solely in contemplation of such Person becoming a
Subsidiary of the Borrower. 
 (q) Amendment, Etc., of Material Contracts. Cancel or terminate any Material Contract or
consent to or accept any cancellation or termination thereof, amend or otherwise modify any Material Contract or give any consent, waiver or approval thereunder, waive any default under or breach of any Material Contract, agree in any manner to any
other amendment, modification or change of any term or condition of any Material Contract or take any other action in connection with any Material Contract that would impair the value of the interest or rights of any Loan Party thereunder or that
would impair the interest or rights of any Agent or any Lender Party, or permit any of its Subsidiaries to do any of the foregoing, unless, so long as no Event of Default has occurred and is continuing, such cancellation, termination, consent,
acceptance, amendment, modification, waiver, approval, agreement or action could not reasonably be expected to result in a Material Adverse Effect. 
  

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 (r) Covenants Related to CMC Acquisition. Permit: 
 (i) the CMC Acquisition Parent to incur any Debt other than Debt owed to another Subsidiary of the Borrower (any such Subsidiary, a
“CMC Acquisition Parent Creditor”); 
 (ii) any CMC Acquisition Parent Creditor to incur any Debt other than
Debt owed to a Loan Party; 
 (iii) the CMC Acquisition Parent to hold any assets (other than the Equity Interests of CMC) or
conduct any business, operations or activities other than those directly related to payments on Debt owed to a CMC Acquisition Parent Creditor; 
 (iv) the CMC Acquisition Parent to fail to own 100% of the Equity Interests of CMC at any time, unless such interests are owned by the Borrower at such time; 
 (v) any CMC Acquisition Parent Creditor to hold any assets (other than the Debt owed by the CMC Acquisition Parent) or conduct any
business, operations or activities other than those directly related to payments on Debt owed to a Loan Party or Debt owed by the CMC Acquisition Parent; or 
 (vi) the Equity Interests of CMC Acquisition Parent to be held by any Person other than the Borrower or the Equity Interests of any CMC
Acquisition Parent Creditor to be held by any Person other than a Loan Party. 
 SECTION 5.03. Reporting Requirements. So long as any
Advance or any other Obligation of any Loan Party under any Loan Document shall remain unpaid, any Letter of Credit shall be outstanding or any Lender Party shall have any Commitment hereunder, the Borrower will furnish to the Agents and the Lender
Parties: 
 (a) Default Notice. As soon as possible and in any event within three Business Days after the occurrence of
each Default or any event, development or occurrence reasonably likely to have a Material Adverse Effect continuing on the date of such statement, a statement of the Chief Financial Officer setting forth details of such Default or such event,
development or occurrence and the action that the Borrower has taken and proposes to take with respect thereto. 
 (b)
Annual Financials. As soon as available and in any event within 90 days after the end of each Fiscal Year, a copy of the annual audit report for such year for the Borrower and its Subsidiaries, including therein a Consolidated balance sheet
of the Borrower and its Subsidiaries as of the end of such Fiscal Year and a Consolidated statement of income and a Consolidated statement of cash flows of the Borrower and its Subsidiaries for such Fiscal Year, in each case accompanied by an
opinion acceptable to the Required Lenders of Ernst & Young or other independent public accountants of recognized standing acceptable to the Required Lenders, together with (i) a certificate of such accounting firm to the Lender
Parties stating that in the course of the regular audit of the business of the Borrower and its Subsidiaries, which audit was conducted by such accounting firm in accordance with generally accepted auditing standards, such accounting firm has
obtained no knowledge that a Default has occurred and is continuing, or if, in the opinion of such accounting firm, a Default has occurred and is continuing, a statement as to the nature thereof, (ii) a schedule in form satisfactory to the
Administrative Agent of the computations used by such accountants in determining, as of the end of such Fiscal Year, compliance with the covenants contained in Section 5.04, provided that in the event of any change in GAAP used in the
preparation of such financial statements, the Borrower shall also provide, if necessary for the determination of compliance with Section 5.04, a statement of 

  

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reconciliation conforming such financial statements to GAAP and (iii) a certificate of the Chief Financial Officer stating that no Default has occurred
and is continuing or, if a Default has occurred and is continuing, a statement as to the nature thereof and the action that the Borrower has taken and proposes to take with respect thereto. 
 (c) Quarterly Financials. As soon as available and in any event within 45 days after the end of each of the first three quarters of
each Fiscal Year, Consolidated and consolidating balance sheets of the Borrower and its Subsidiaries as of the end of such quarter and Consolidated and consolidating statements of income and a Consolidated statement of cash flows of the Borrower and
its Subsidiaries for the period commencing at the end of the previous Fiscal Quarter and ending with the end of such Fiscal Quarter and Consolidated and consolidating statements of income and a Consolidated statement of cash flows of the Borrower
and its Subsidiaries for the period commencing at the end of the previous Fiscal Year and ending with the end of such quarter, setting forth in each case in comparative form the corresponding figures for the corresponding date or period of the
preceding Fiscal Year, all in reasonable detail and duly certified (subject to normal year-end audit adjustments) by the Chief Financial Officer as having been prepared in accordance with GAAP, together with (i) a certificate of said officer
stating that no Default has occurred and is continuing or, if a Default has occurred and is continuing, a statement as to the nature thereof and the action that the Borrower has taken and proposes to take with respect thereto and (ii) a
schedule in form satisfactory to the Administrative Agent of the computations used by the Borrower in determining compliance with the covenants contained in Section 5.04, provided that in the event of any change in GAAP used in the
preparation of such financial statements, the Borrower shall also provide, if necessary for the determination of compliance with Section 5.04, a statement of reconciliation conforming such financial statements to GAAP. 
 (d) Reserved. 
 (e) Litigation. Promptly after the commencement thereof, notice of all actions, suits, investigations, litigation and proceedings before any Governmental Authority affecting any Loan Party or any of its Subsidiaries of the type
described in Section 4.01(f). 
 (f) Securities Reports. Promptly after the sending or filing thereof, copies of
all proxy statements, financial statements and reports that any Loan Party or any of its Subsidiaries sends to its stockholders, and copies of all regular, periodic and special reports, and all registration statements, that any Loan Party or any of
its Subsidiaries files with the Securities and Exchange Commission or any governmental authority that may be substituted therefor, or with any national securities exchange. 
 (g) Creditor Reports. Promptly after the furnishing thereof, copies of any statement or report furnished to any holder of Debt
securities of any Loan Party or of any of its Subsidiaries pursuant to the terms of any indenture, loan or credit or similar agreement and not otherwise required to be furnished to the Lender Parties pursuant to any other clause of this
Section 5.03. 
 (h) Agreement Notices. Promptly upon receipt thereof, copies of all notices, requests and other
documents received by any Loan Party or any of its Subsidiaries under or pursuant to any Acquisition Document or Material Contract or instrument, indenture, loan or credit or similar agreement regarding or related to any breach or default by any
party thereto or any other event that could materially impair the value of the interests or the rights of any Loan Party or otherwise have a Material Adverse Effect and copies of any amendment, modification or waiver of any provision of any
Acquisition Document or Material Contract or instrument, indenture, loan or 

  

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credit or similar agreement and, from time to time upon request by the Administrative Agent, such information and reports regarding the Acquisition
Documents, the Material Contracts and such instruments, indentures and loan and credit and similar agreements as the Administrative Agent may reasonably request. 
 (i) Revenue Agent Reports. Within 10 days after receipt, copies of all Revenue Agent Reports (Internal Revenue Service
Form 886), or other written proposals of the Internal Revenue Service, that propose, determine or otherwise set forth positive adjustments to the Federal income tax liability of the affiliated group (within the meaning of
Section 1504(a)(1) of the Internal Revenue Code) of which the Borrower is a member aggregating $1,000,000 or more. 
 (j)
Notice as to Certain Tax Matters. Promptly after any such determination, notice of the Borrower’s determination to take any action inconsistent with the last two sentences of Section 8.10. 
 (k) Environmental Conditions. Promptly after the assertion or occurrence thereof, notice of any Environmental Action against or of
any noncompliance by any Loan Party or any of its Subsidiaries with any Environmental Law or Environmental Permit that could reasonably be expected to have a Material Adverse Effect. 
 (l) Insurance. As soon as available and in any event within 30 days after the end of each Fiscal Year, a certificate evidencing the
insurance coverage (specifying type, amount and carrier) in effect for each Loan Party and its Subsidiaries and containing such additional information as any Agent, or any Lender Party through the Administrative Agent, may reasonably specify.

 (m) Other Information. Such other information respecting the business, condition (financial or otherwise),
operations, performance, properties or prospects of any Loan Party or any of its Subsidiaries as any Agent, or any Lender Party through the Administrative Agent, may from time to time reasonably request. 
 (n) ERISA. (i) ERISA Events and ERISA Reports. (A) Promptly and in any event within 10 days after any Loan Party
or any ERISA Affiliate knows or has reason to know that any ERISA Event has occurred, a statement of the Chief Financial Officer of the Borrower describing such ERISA Event and the action, if any, that such Loan Party or such ERISA Affiliate has
taken and proposes to take with respect thereto and (B) on the date any records, documents or other information must be furnished to the PBGC with respect to any Plan pursuant to Section 4010 of ERISA, a copy of such records, documents and
information. 
 (ii) Plan Terminations. Promptly and in any event within three Business Days after receipt thereof by
any Loan Party or any ERISA Affiliate, copies of each notice from the PBGC stating its intention to terminate any Plan or to have a trustee appointed to administer any Plan. 
 (iii) Plan Annual Reports. Promptly and in any event within 30 days after the filing thereof with the Internal Revenue Service,
copies of each Schedule B (Actuarial Information) to the annual report (Form 5500 Series) with respect to each Plan. 
 (iv) Multiemployer Plan Notices. Promptly and in any event within ten Business Days after receipt thereof by any Loan Party or any ERISA Affiliate from the sponsor of a Multiemployer Plan, copies of each notice concerning
(A) the imposition of Withdrawal Liability by any such Multiemployer Plan, (B) the reorganization or termination, within the meaning of Title IV of ERISA, of any such Multiemployer Plan or (C) the amount of liability incurred, or
that may be incurred, by such Loan Party or any ERISA Affiliate in connection with any event described in clause (A) or (B). 
  

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 SECTION 5.04. Financial Covenants. So long as any Advance or any other Obligation of any Loan
Party under any Loan Document shall remain unpaid, any Letter of Credit shall be outstanding or any Lender Party shall have any Commitment hereunder, the Borrower will: 
 (a) Maximum Leverage Ratio. Maintain for each Measurement Period a maximum Leverage Ratio, as measured on the last day of each
Fiscal Quarter occurring during the periods indicated below, less than the following: 
  

			
	 Period
	  	Maximum Leverage
Ratio
	 Amendment No. 5 Effective Date through January 25, 2008
	  	5.00 to 1.00
	 January 26, 2008 through January 30, 2009
	  	4.75 to 1.00
	 January 31, 2009 through January 29, 2010
	  	4.50 to 1.00
	 January 30, 2010 and thereafter
	  	4.25 to 1.00

 (b) Interest Coverage Ratio. Maintain for each Measurement Period a minimum
Interest Coverage Ratio, as measured on the last day of each Fiscal Quarter occurring during the periods indicated below, greater than the following: 
  

			
	 Period
	  	Minimum Interest
Coverage Ratio
	 Amendment No. 5 Effective Date through January 25, 2008
	  	2.75 to 1.00
	 January 26, 2008 and thereafter
	  	3.00 to 1.00

 ARTICLE VI 
 EVENTS OF DEFAULT 
 SECTION 6.01. Events of Default. If any of the following events
(“Events of Default”) shall occur and be continuing: 
 (a) (i) the Borrower shall fail to pay any
principal of any Advance when the same shall become due and payable or (ii) the Borrower shall fail to pay any interest on any Advance, or any Loan Party shall fail to make any other payment under any Loan Document, in each case under this
clause (ii) within 3 Business Days after the same shall become due and payable; or 
 (b) any representation or warranty
made by any Loan Party (or any of its officers) under or in connection with any Loan Document shall prove to have been incorrect in any material respect when made; or 
 (c) the Borrower shall fail to perform or observe any term, covenant or agreement contained in Section 2.14, 5.01(e), (f),
(i) or (j), 5.02, 5.03 or 5.04; or 
  

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 (d) any Loan Party shall fail to perform or observe any other term, covenant or agreement
contained in any Loan Document on its part to be performed or observed if such failure shall remain unremedied for 30 days after the earlier of the date on which (i) a Responsible Officer of the Borrower becomes aware of such failure or
(ii) written notice thereof shall have been given to the Borrower by any Agent or any Lender Party; or 
 (e) any Loan
Party or any of its Subsidiaries shall fail to pay any principal of, premium or interest on or any other amount payable in respect of any Debt of such Loan Party or such Subsidiary (as the case may be) that is outstanding in a principal amount (or,
in the case of any Hedge Agreement, an Agreement Value) of at least $20,000,000 either individually or in the aggregate for all such Loan Parties and Subsidiaries (but excluding Debt outstanding hereunder), when the same becomes due and payable
(whether by scheduled maturity, required prepayment, acceleration, demand or otherwise), and such failure shall continue after the applicable grace period, if any, specified in the agreement or instrument relating to such Debt; or any other event
shall occur or condition shall exist under any agreement or instrument relating to any such Debt and shall continue after the applicable grace period, if any, specified in such agreement or instrument, if the effect of such event or condition is to
accelerate, or to permit the acceleration of, the maturity of such Debt or otherwise to cause, or to permit the holder thereof to cause, such Debt to mature; or any such Debt shall be declared to be due and payable or required to be prepaid or
redeemed (other than by a regularly scheduled required prepayment or redemption), purchased or defeased, or an offer to prepay, redeem, purchase or defease such Debt shall be required to be made, in each case prior to the stated maturity thereof; or

 (f) any Loan Party or any of its Subsidiaries 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 of its Subsidiaries seeking to adjudicate it a bankrupt or
insolvent, or seeking liquidation, winding up, reorganization, arrangement, adjustment, protection, relief, or composition of it or its debts under any 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 receiver, trustee or other similar official for it or for any substantial part of its property and, in the case of any such proceeding instituted against it (but not instituted by it) that is
being diligently contested by it in good faith, either such proceeding shall remain undismissed or unstayed for a period of 30 days or any of the actions sought in such proceeding (including, without limitation, the entry of an order for relief
against, or the appointment of a receiver, trustee, custodian or other similar official for, it or any substantial part of its property) shall occur; or any Loan Party or any of its Subsidiaries shall take any corporate action to authorize any of
the actions set forth above in this subsection (f); or 
 (g) any judgments or orders, either individually or in the
aggregate, for the payment of money in excess of $20,000,000 shall be rendered against any Loan Party or any of its Subsidiaries and either (i) enforcement proceedings shall have been commenced and not stayed or discontinued by any creditor
upon such judgment or order or (ii) there shall be any period of 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; provided,
however, that any such judgment or order shall not give rise to an Event of Default under this Section 6.01(g) if and for so long as (A) the amount of such judgment or order is covered by a valid and binding policy of insurance
between the defendant and the insurer, which shall be rated at least “A” by A.M. Best Company, covering full payment thereof and (B) such insurer has been notified, and has not disputed the claim made for payment, of the amount of
such judgment or order; or 
  

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 (h) any non-monetary judgment or order shall be rendered against any Loan Party or any of
its Subsidiaries that could be reasonably likely to have a Material Adverse Effect, and there shall be any period of 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 
 (i) any provision of any Loan Document after delivery thereof pursuant to Section 3.01 or 5.01(j)
shall for any reason cease to be valid and binding on or enforceable against any Loan Party party to it, or any such Loan Party shall so state in writing; or 
 (j) any Collateral Document or financing statement after delivery thereof pursuant to Section 3.01 or 5.01(j) shall for any reason
(other than any failure to act on the part of the Collateral Agent to the extent an action by the Collateral Agent would be required to perfect a security interest) cease to create a valid and perfected first priority lien (except to the extent any
liens permitted under Section 5.02(a)(ii) would be superior by application of law) on and security interest in the Collateral purported to be covered thereby; or 
 (k) any ERISA Event shall have occurred with respect to a Plan and the sum (determined as of the date of occurrence of such ERISA Event)
of the Insufficiency of such Plan and the Insufficiency of any and all other Plans with respect to which an ERISA Event shall have occurred and then exist (or the liability of the Loan Parties and the ERISA Affiliates related to such ERISA Event)
exceeds $5,000,000 unless any other agreement or instrument governing Material Debt sets forth a lower amount, then such amount; or 
 (l) any Loan Party or any ERISA Affiliate shall have been notified by the sponsor of a Multiemployer Plan that it has incurred Withdrawal Liability to such Multiemployer Plan in an amount that, when aggregated with all other amounts
required to be paid to Multiemployer Plans by the Loan Parties and the ERISA Affiliates as Withdrawal Liability (determined as of the date of such notification), exceeds $5,000,000 unless any other agreement or instrument governing Material Debt
sets forth a lower amount, then such lower amount or requires payments exceeding $1,000,000 per annum, unless any other agreement or instrument governing Material Debt sets forth a lower amount, then such lower amount; or 
 (m) any Loan Party or any ERISA Affiliate shall have been notified by the sponsor of a Multiemployer Plan that such Multiemployer Plan is
in reorganization or is being terminated, within the meaning of Title IV of ERISA, and as a result of such reorganization or termination the aggregate annual contributions of the Loan Parties and the ERISA Affiliates to all Multiemployer Plans
that are then in reorganization or being terminated have been or will be increased over the amounts contributed to such Multiemployer Plans for the plan years of such Multiemployer Plans immediately preceding the plan year in which such
reorganization or termination occurs by an amount exceeding $5,000,000 unless any other agreement or instrument governing Material Debt sets forth a lower amount, then such lower amount; or 
 (n) any default under, or an “Event of Default” as defined in, the Senior Subordinated Indenture shall have occurred and be
continuing under Senior Subordinated Indenture; 
 (o) any default under, or an “Event of Default” as defined in,
the 2007 Indenture shall have occurred and be continuing; or 
 (p) a Change of Control shall occur; 
  

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 then, and in any such event, the Administrative Agent (i) shall at the request, or may with the consent, of the
Required Lenders, by notice to the Borrower, declare all or any portion of the Commitments of each Lender Party and the obligation of each Lender Party to make Advances (other than Letter of Credit Advances by the Issuing Bank or a Revolving Credit
Lender pursuant to Section 2.03(c) and Swing Line Advances by a Revolving Credit Lender pursuant to Section 2.02(b)) and of the Issuing Bank to issue Letters of Credit to be terminated, whereupon the same shall forthwith terminate, and
(ii) shall at the request, or may with the consent, of the Required Lenders, by notice to the Borrower, declare all or any portion of the Notes, all interest thereon and all other amounts payable under this Agreement and the other Loan
Documents (other than Secured Hedge Agreements unless the applicable Hedge Bank otherwise agrees) to be forthwith due and payable, whereupon all or such portion, as applicable, of the Notes, all such interest and all such amounts shall become and be
forthwith due and payable, without presentment, demand, protest or further notice of any kind, all of which are hereby expressly waived by the Borrower; provided, however, that in the event of an actual or deemed entry of an order for relief
with respect to the Borrower under the Federal Bankruptcy Code, (x) the Commitments of each Lender Party and the obligation of each Lender Party to make Advances (other than Letter of Credit Advances by the Issuing Bank or a Revolving Credit
Lender pursuant to Section 2.03(c) and Swing Line Advances by a Revolving Credit Lender pursuant to Section 2.02(b)) and of the Issuing Bank to issue Letters of Credit shall automatically be terminated and (y) the Notes, all such
interest and all such amounts shall automatically become and be due and payable, without presentment, demand, protest or any notice of any kind, all of which are hereby expressly waived by the Borrower. 
 SECTION 6.02. Actions in Respect of the Letters of Credit upon Default. If any Event of Default shall have occurred and be continuing, the
Administrative Agent may, or shall at the request of the Required Lenders, irrespective of whether it is taking any of the actions described in Section 6.01 or otherwise, make demand upon the Borrower to, and forthwith upon such demand the
Borrower will, pay to the Collateral Agent on behalf of the Lender Parties in same day funds at the Collateral Agent’s office designated in such demand, for deposit in the Deposit Account, an amount equal to the aggregate Reserved Available
Amount of all Letters of Credit then outstanding. If at any time the Administrative Agent or the Collateral Agent determines that any funds held in the Deposit Account are subject to any right or claim of any Person other than the Agents and the
Lender Parties or that the total amount of such funds is less than the aggregate Reserved Available Amount of all Letters of Credit, the Borrower will, forthwith upon demand by the Administrative Agent or the Collateral Agent, pay to the Collateral
Agent, as additional funds to be deposited and held in the Deposit Account, an amount equal to the excess of (a) such aggregate Reserved Available Amount over (b) the total amount of funds, if any, then held in the Deposit Account that the
Administrative Agent or the Collateral Agent, as the case may be, determines to be free and clear of any such right and claim. Upon the drawing of any Letter of Credit for which funds are on deposit in the Deposit Account, such funds shall be
applied to reimburse the Issuing Bank or Revolving Credit Lenders, as applicable, to the extent permitted by applicable law. 
 ARTICLE VII

 THE AGENTS 
 SECTION 7.01. Authorization and Action. Each Lender Party (in its capacities as a Lender, the Swing Line Bank (if applicable), the Issuing Bank (if applicable) and on behalf of itself and its Affiliates as potential Hedge Banks)
hereby appoints and authorizes each Agent to take such action as agent on its behalf and to exercise such powers and discretion under this Agreement and the other Loan Documents as are delegated to such Agent by the terms hereof and thereof,
together with such powers and discretion as are reasonably incidental thereto. As to any matters not expressly provided for by the Loan Documents (including, without limitation, enforcement or collection of the Notes), no Agent shall be 

  

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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 Required Lenders (or, if required hereby, all Lenders), and such instructions shall be binding upon all Lender Parties and all holders of Notes; provided, however, that no Agent shall be
required to take any action that exposes such Agent to personal liability or that is contrary to this Agreement or applicable law. Each Agent agrees to give to each Lender Party prompt notice of each notice given to it by the Borrower pursuant to
the terms of this Agreement. 
 SECTION 7.02. Agents’ Reliance, Etc. Neither any Agent nor any of their respective directors,
officers, agents or employees shall be liable for any action taken or omitted to be taken by it or them under or in connection with the Loan Documents, except for its or their own gross negligence or willful misconduct. Without limitation of the
generality of the foregoing, each Agent: (a) may treat the payee of any Note as the holder thereof until, in the case of the Administrative Agent, the Administrative Agent receives and accepts an Assignment and Acceptance entered into by the
Lender that is the payee of such Note, as assignor, and an Eligible Assignee, as assignee, or, in the case of any other Agent, such Agent has received notice from the Administrative Agent that it has received and accepted such Assignment and
Acceptance, in each case as provided in Section 8.07; (b) may consult with legal counsel (including counsel for any Loan Party), independent public accountants and other experts selected by it and shall not be liable for any action taken
or omitted to be taken in good faith by it in accordance with the advice of such counsel, accountants or experts; (c) makes no warranty or representation to any Lender Party and shall not be responsible to any Lender Party for any statements,
warranties or representations (whether written or oral) made in or in connection with the Loan Documents; (d) shall not have any duty to ascertain or to inquire as to the performance, observance or satisfaction of any of the terms, covenants or
conditions of any Loan Document on the part of any Loan Party or the existence at any time of any Default under the Loan Documents or to inspect the property (including the books and records) of any Loan Party; (e) shall not be responsible to
any Lender Party for the due execution, legality, validity, enforceability, genuineness, sufficiency or value of, or the perfection or priority of any lien or security interest created or purported to be created under or in connection with, any Loan
Document or any other instrument or document furnished pursuant thereto; and (f) shall incur no liability under or in respect of any Loan Document by acting upon any notice, consent, certificate or other instrument or writing (which may be by
telegram, telecopy or telex) believed by it to be genuine and signed or sent by the proper party or parties. 
 SECTION 7.03. Wachovia and
Affiliates. With respect to its Commitments, the Advances made by it and the Notes issued to it, if any, Wachovia shall have the same rights and powers under the Loan Documents as any other Lender Party and may exercise the same as though it
were not an Agent; and the term “Lender Party” or “Lender Parties” shall, unless otherwise expressly indicated, include Wachovia in its individual capacity. Wachovia and its affiliates may accept deposits from, lend money to, act
as trustee under indentures of, accept investment banking engagements from and generally engage in any kind of business with, any Loan Party, any of its Subsidiaries and any Person that may do business with or own securities of any Loan Party or any
such Subsidiary, all as if Wachovia was not an Agent and without any duty to account therefor to the Lender Parties. No Agent shall have any duty to disclose any information obtained or received by it or any of its Affiliates relating to any Loan
Party or any of its Subsidiaries to the extent such information was obtained or received in any capacity other than as such Agent. 
 SECTION
7.04. Lender Party Credit Decision. Each Lender Party acknowledges that it has, independently and without reliance upon any Agent or any other Lender Party and based on the financial statements referred to in Section 4.01 and such other
documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each Lender Party also acknowledges that it will, independently and without reliance upon any Agent or any other Lender
Party 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. 
  

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 SECTION 7.05. Indemnification. (a) Each Lender Party severally agrees to indemnify each Agent
(to the extent not reimbursed by the Borrower) from and against such Lender Party’s ratable share (determined as provided below) of any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind or nature whatsoever that may be imposed on, incurred by, or asserted against such Agent in any way relating to or arising out of the Loan Documents or any action taken or omitted by such Agent under the Loan Documents
(collectively, the “Indemnified Costs”); provided, however, that no Lender Party shall be liable for any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements resulting from such Agent’s gross negligence or willful misconduct as found in a final, non-appealable judgment by a court of competent jurisdiction. Without limitation of the foregoing, each Lender Party agrees
to reimburse each Agent promptly upon demand for its ratable share of any costs and expenses (including, without limitation, fees and expenses of counsel) payable by the Borrower under Section 8.04, to the extent that such Agent is not promptly
reimbursed for such costs and expenses by the Borrower. In the case of any investigation, litigation or proceeding giving rise to any Indemnified Costs, this Section 7.05 applies whether any such investigation, litigation or proceeding is
brought by any Lender Party or any other Person. 
 (b) Each Lender Party severally agrees to indemnify the Issuing Bank (to
the extent not reimbursed by the Borrower) from and against such Lender Party’s ratable share (determined as provided below) of any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind or nature whatsoever that may be imposed on, incurred by, or asserted against the Issuing Bank in any way relating to or arising out of the Loan Documents or any action taken or omitted by the Issuing Bank under the Loan
Documents; provided, however, that no Lender Party shall be liable for any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements resulting from the Issuing
Bank’s gross negligence or willful misconduct as found in a final, non-appealable judgment by a court of competent jurisdiction. Without limitation of the foregoing, each Lender Party agrees to reimburse the Issuing Bank promptly upon demand
for its ratable share of any costs and expenses (including, without limitation, fees and expenses of counsel) payable by the Borrower under Section 8.04, to the extent that the Issuing Bank is not promptly reimbursed for such costs and expenses
by the Borrower. 
 (c) For purposes of this Section 7.05, the Lender Parties’ respective ratable shares of any
amount shall be determined, at any time, according to the sum of (i) the aggregate principal Dollar Amount of the Advances outstanding at such time and owing to the respective Lender Parties, (ii) their respective Pro Rata Shares of the
aggregate Available Amount of all Letters of Credit outstanding at such time and (iii) the aggregate unused portions of their respective Revolving Credit Commitments at such time; provided that the aggregate principal Dollar Amount of
Swing Line Advances owing to the Swing Line Bank and of Letter of Credit Advances owing to the Issuing Bank shall be considered to be owed to the Revolving Credit Lenders ratably in accordance with their respective Revolving Credit Commitments. The
failure of any Lender Party to reimburse any Agent or the Issuing Bank, as the case may be, promptly upon demand for its ratable share of any Dollar Amount required to be paid by the Lender Parties to such Agent or the Issuing Bank, as the case may
be, as provided herein shall not relieve any other Lender Party of its obligation hereunder to reimburse such Agent or the Issuing Bank, as the case may be, for its ratable share of such amount, but no Lender Party shall be responsible for the
failure of any other Lender Party to reimburse such Agent or the Issuing Bank, as the case may be, for such other Lender Party’s ratable share of such amount. Without prejudice to the survival of any other agreement of any Lender Party
hereunder, the agreement and obligations of each Lender Party contained in this Section 7.05 shall survive the payment in full of principal, interest and all other amounts payable hereunder and under the other Loan Documents. 
  

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 SECTION 7.06. Successor Agents. Any Agent
may resign at any time by giving written notice thereof to the Lender Parties and the Borrower and may be removed at any time with or without cause by the Required Lenders; provided, however, that any removal of the Administrative
Agent will not be effective until it has also been replaced as Collateral Agent, Swing Line Bank and Issuing Bank and released from all of its obligations in respect thereof. Upon any such resignation or removal, the Required Lenders shall have the
right to appoint a successor Agent. If no successor Agent shall have been so appointed by the Required Lenders, and shall have accepted such appointment, within 30 days after the retiring Agent’s giving of notice of resignation or the Required
Lenders’ removal of the retiring Agent, then the retiring Agent may, on behalf of the Lender Parties, appoint a successor Agent, which shall be a commercial bank organized under the laws of the United States or of any State thereof and having a
combined capital and surplus of at least $250,000,000. Upon the acceptance of any appointment as Agent hereunder by a successor Agent and, in the case of a successor Collateral Agent, upon the execution and filing or recording of such financing
statements, or amendments thereto, and such other instruments or notices, as may be necessary or desirable, or as the Required Lenders may request, in order to continue the perfection of the Liens granted or purported to be granted by the Collateral
Documents, such successor Agent shall succeed to and become vested with all the rights, powers, discretion, privileges and duties of the retiring Agent, and the retiring Agent shall be discharged from its duties and obligations under the Loan
Documents. If within 45 days after written notice is given of the retiring Agent’s resignation or removal under this Section 7.06 no successor Agent shall have been appointed and shall have accepted such appointment, then on such
45th day (a) the retiring Agent’s resignation or removal shall become effective, (b) the retiring Agent shall thereupon be discharged
from its duties and obligations under the Loan Documents and (c) the Required Lenders shall thereafter perform all duties of the retiring Agent under the Loan Documents until such time, if any, as the Required Lenders appoint a successor Agent
as provided above. After any retiring Agent’s resignation or removal hereunder as Agent shall have become effective, the provisions of this Article VII shall inure to its benefit as to any actions taken or omitted to be taken by it while
it was Agent under this Agreement. 
 SECTION 7.07. Bookrunner/ Co-Arranger, Co-Arranger, Syndication Agent and Documentation Agent Have
No Liability. It is understood and agreed that none of the Bookrunner/ Co-Arranger, the Co-Arranger, the Syndication Agent or the Documentation Agent have any duties, responsibilities or liabilities under this Agreement whatsoever. 

ARTICLE VIII 
 MISCELLANEOUS 

 SECTION 8.01. Amendments, Etc. No amendment or waiver of any provision of this Agreement or the Notes or any other Loan Document
(other than Secured Hedge Agreements), nor consent to any departure by the Borrower or any other Loan Party therefrom, shall in any event be effective unless the same shall be in writing and signed by the Required Lenders (or by the Administrative
Agent on their behalf upon its receipt of the consent thereof) and the Borrower or the applicable Loan Party, as the case may be, and acknowledged by the Administrative Agent, and then such waiver or consent shall be effective only in the specific
instance and for the specific purpose for which given; provided, however, that no such amendment, waiver or consent shall: 
 (a) waive any of the conditions, in the case of the Initial Extension of Credit, specified in Section 3.02, without the written consent of each Lender (other than any Lender that is, at such time, a Defaulting Lender); 
  

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 (b) extend or increase the Commitment of any Lender (or reinstate any Commitment
terminated pursuant to Article VI) without the written consent of such Lender; 
 (c) postpone any date scheduled for any
payment of principal or interest under Section 2.04 or 2.07, or any date fixed by the Administrative Agent for the payment of fees or other amounts due to the Lenders (or any of them) hereunder or under any other Loan Document, without the
written consent of each Lender directly affected thereby; 
 (d) reduce the principal of, or the rate of interest specified
herein on, any Advance, or (subject to clause (v) of the second proviso to this Section 8.01) any fees or other amounts payable hereunder or under any other Loan Document, or change the manner of computation of any financial ratio
(including any change in any applicable defined term) used in determining the Applicable Margin that would result in a reduction of any interest rate on any Loan or any fee payable hereunder without the written consent of each Lender directly
affected thereby; provided, however, that only the consent of the Required Lenders shall be necessary (i) to amend the definition of “Default Rate” or to waive any obligation of the Borrower to pay interest at the
Default Rate or (ii) to amend any financial covenant hereunder (or any defined term used therein) even if the effect of such amendment would be to reduce the rate of interest on any Advance or to reduce any fee payable hereunder; 
 (e) change the order of application of any prepayment of Loans between the Facilities from the application thereof set forth in the
applicable provisions of Section 2.06(a) and (b) respectively, in any manner that materially and adversely affects the Lenders under such Facilities; 
 (f) change any provision of this Section 8.01 without the written consent of each Lender, or change (i) the definition of
“Required Lenders” without the written consent of each Lender or (ii) any other provision hereof specifying the number or percentage of Lenders required to amend, waive or otherwise modify any rights hereunder or make any
determination or grant any consent hereunder, without the written consent of each Lender; 
 (g) release all or substantially
all of the Collateral in any transaction or series of related transactions, without the written consent of each Lender; or 
 (h) release all or substantially all of the Subsidiary Guarantors from the Subsidiary Guaranty, without the written consent of each Lender; 
 and,
provided further, that (i) no amendment, waiver or consent shall, unless in writing and signed by the Issuing Bank, in addition to the Lenders required above, affect the rights or duties of the Issuing Bank under this Agreement or any
Letter of Credit Application relating to any Letter of Credit issued or to be issued by it; (ii) no amendment, waiver or consent shall, unless in writing and signed by the Administrative Agent in addition to the Lenders required above, affect
the rights or duties of, or any fees or other amounts payable to, the Administrative Agent under this Agreement or any other Loan Document; (iii) no amendment, waiver or consent shall, unless in writing and signed by the Swing Line Bank in
addition to the Lenders required above, affect the rights or duties of the Swing Line Bank under this Agreement; (iv) [RESERVED]; and (v) the Fee Letter may be amended, or rights or privileges thereunder waived, in a writing executed only
by the parties thereto. Notwithstanding anything to the contrary herein, no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent hereunder, except that the Commitment of such Lender may not be increased or
extended without the consent of such Lender. 
  

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 SECTION 8.02. Notices, Etc.All notices and
other communications provided for hereunder shall be in writing (including fax or e-mail communication) and mailed, e-mailed, faxed or delivered, if to the Borrower, at its address at 500 108th
 Avenue NE, Bellevue, Washington 98004, Attention: Chief Financial Officer; if to any Initial Lender Party, at its Domestic Lending Office specified opposite its name on Schedule I hereto; if to any
other Lender Party, at its Domestic Lending Office specified in the Assignment and Acceptance pursuant to which it became a Lender Party; if to the Administrative Agent or the Collateral Agent, at its address at 201 South College Street, Charlotte
Plaza 8th Floor, Charlotte, North Carolina 28288, Attention: Agency Services; or, as to any party, at such other address as shall be designated by
such party in a written notice to the other parties. All such notices and other communications shall, when mailed, e-mailed or faxed, be effective when deposited in the mails or transmitted by fax or e-mail, except that notices and communications to
any Agent pursuant to Article II, III or VII shall not be effective until received by such Agent. Delivery by fax of an executed counterpart of a signature page to any amendment or waiver of any provision of this Agreement or the Notes or of
any Exhibit hereto to be executed and delivered hereunder shall be effective as delivery of an original executed counterpart thereof. Electronic mail and Internet and intranet websites may be used by the Administrative Agent and/or the Agents to
distribute communications, such as financial statements and other information as provided in Section 5.03, and to distribute Loan Documents for execution by the parties thereto, and the Administrative Agent and the Agents shall not be
responsible for any losses, costs, expenses and liabilities that may arise by reason of the use thereof, except for their own gross negligence or willful misconduct. The Administrative Agent and the Lenders shall be entitled to rely and act upon any
notices (including telephonic notices) purportedly given by or on behalf of the Borrower even if (a) such notices were not made in a manner specified herein, were incomplete or were not preceded or followed by any form of notice specified
herein, or (b) the terms thereof, as understood by the recipient, varied from any confirmation thereof. The Borrower shall indemnify each Agent and each Lender from all losses, costs, expenses and liabilities resulting from the reliance by such
Person on each notice purportedly given by or on behalf of the Borrower in accordance with this Agreement, other than, with respect to any Agent or Lender, the losses, costs, expenses and liabilities that result from the gross negligence or willful
misconduct of such Agent or Lender. All telephonic notices to and other communications with the Administrative Agent may be recorded by the Administrative Agent, and each of the parties hereto hereby consents to such recording. 
 SECTION 8.03. No Waiver; Remedies; Entire Agreement. No failure on the part of any Lender Party or any Agent to exercise, and no delay in
exercising, any right hereunder or under any Note or any other Loan Document 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. This Agreement and the other Loan Documents constitute the entire agreement of the parties with respect hereto. 
 SECTION 8.04. Costs and Expenses. (a) The Borrower agrees to pay on demand (i) all costs and expenses of each Agent in connection with
the preparation, execution, delivery, administration, modification and amendment of, or any consent or waiver under, the Loan Documents (including, without limitation, (A) all due diligence, collateral review, arrangement, syndication,
transportation, computer, duplication, appraisal, audit, insurance, consultant, search, filing and recording fees and expenses and (B) the reasonable fees and expenses of counsel for each Agent with respect thereto, with respect to advising
such Agent as to its rights and responsibilities, or the perfection, protection, interpretation or preservation of rights or interests, under the Loan Documents, with respect to negotiations with any Loan Party or with other creditors of any Loan
Party or any of its Subsidiaries arising out of any Default or any events or circumstances that may give rise to a Default and with respect to presenting claims in or otherwise participating in or monitoring any bankruptcy, insolvency or other
similar proceeding involving creditors’ rights generally and any proceeding ancillary thereto) and (ii) all costs and expenses of each 

  

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Agent and each Lender Party in connection with the enforcement of the Loan Documents, whether in any action, suit or litigation, or any bankruptcy,
insolvency or other similar proceeding affecting creditors’ rights generally (including, without limitation, the reasonable fees and expenses of counsel for the Administrative Agent and each Lender Party with respect thereto). The Borrower
further agrees to pay any stamp or other taxes that may be payable in connection with the execution or delivery of any Loan Document. 
 (b) The Borrower agrees to indemnify, defend and save and hold harmless each Agent, each Lender Party and each of their Affiliates and their respective officers, directors, employees, agents and advisors (each, an
“Indemnified Party”) from and against, and shall pay on demand, any and all claims, damages, losses, liabilities and expenses (including, without limitation, reasonable fees and expenses of counsel) that may be incurred by or
asserted or awarded against any Indemnified Party, in each case arising out of or in connection with or by reason of (including, without limitation, in connection with any investigation, litigation or proceeding or preparation of a defense in
connection therewith) (i) the Facilities, the actual or proposed use of the proceeds of the Advances or the Letters of Credit, the Loan Documents or any of the transactions contemplated thereby, including, without limitation, any
acquisition or proposed acquisition (including, without limitation, the Acquisition) by the Borrower or any of its Subsidiaries or Affiliates of all or any portion of the Equity Interests in or Debt securities or substantially all of the assets of
the Company or any of its Subsidiaries or (ii) the actual or alleged presence of Hazardous Materials on any property of any Loan Party or any of its Subsidiaries or any Environmental Action relating in any way to any Loan Party or any of its
Subsidiaries, except to the extent such claim, damage, loss, liability or expense is found in a final, non-appealable judgment by a court of competent jurisdiction to have resulted from such Indemnified Party’s gross negligence or willful
misconduct. In the case of an investigation, litigation or other proceeding to which the indemnity in this Section 8.04(b) applies, such indemnity shall be effective whether or not such investigation, litigation or proceeding is brought by any
Loan Party, its directors, shareholders or creditors or an Indemnified Party or any other Person, whether or not any Indemnified Party is otherwise a party thereto and whether or not the Acquisition or the transactions contemplated hereby are
consummated. The Borrower also agrees not to assert any claim against any Agent, any Lender Party or any of their Affiliates, or any of their respective officers, directors, employees, agents and advisors, on any theory of liability, for special,
indirect, consequential or punitive damages arising out of or otherwise relating to the Facilities, the actual or proposed use of the proceeds of the Advances or the Letters of Credit, the Loan Documents or any of the transactions contemplated by
the Loan Documents. 
 (c) If any payment of principal of, or Conversion of, any Eurodollar Rate Advance is made by the
Borrower to or for the account of a Lender Party other than on the last day of the Interest Period for such Advance, as a result of a payment or Conversion pursuant to Section 2.06, 2.09(b)(i) or 2.10(d), acceleration of the maturity of the
Notes pursuant to Section 6.01 or for any other reason, or by an Eligible Assignee to a Lender Party other than on the last day of the Interest Period for such Advance upon an assignment of rights and obligations under this Agreement pursuant
to Section 8.07 as a result of a demand by the Borrower pursuant to Section 8.07(a), or if the Borrower fails to make any payment or prepayment of an Advance for which a notice of prepayment has been given or that is otherwise required to
be made, whether pursuant to Section 2.04, 2.06 or 6.01 or otherwise, the Borrower shall, upon demand by such Lender Party (with a copy of such demand to the Administrative Agent), pay to the Administrative Agent for the account of such Lender
Party any amounts required to compensate such Lender Party for any additional losses, costs or expenses that it may reasonably incur as a result of such payment or Conversion or such failure to pay or prepay, as the case may be, including, without
limitation, any loss (including loss of anticipated profits), cost or expense incurred by reason of the liquidation or reemployment of deposits or other funds acquired by any Lender Party to fund or maintain such Advance. 
  

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 (d) If any Loan Party fails to pay when due any costs, expenses or other amounts payable
by it under any Loan Document, including, without limitation, fees and expenses of counsel and indemnities, such amount may be paid on behalf of such Loan Party by the Administrative Agent or any Lender Party, in its sole discretion. 
 (e) Without prejudice to the survival of any other agreement of any Loan Party hereunder or under any other Loan Document, the agreements
and obligations of the Borrower contained in Sections 2.10 and 2.12 and this Section 8.04 shall survive the payment in full of principal, interest and all other amounts payable hereunder and under any of the other Loan Documents.

 SECTION 8.05. Right of Set-off. Upon (a) the occurrence and during the continuance of any Event of Default and (b) the
making of the request or the granting of the consent specified by Section 6.01 to authorize the Administrative Agent to declare the Notes due and payable pursuant to the provisions of Section 6.01 or otherwise with the consent of the
Required Lenders, each Agent and each Lender Party and each of their respective Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and otherwise 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 Agent, such Lender Party or such Affiliate to or for the credit or the account of the Borrower against any and all of the Obligations
of the Borrower now or hereafter existing under the Loan Documents, irrespective of whether such Agent or such Lender Party shall have made any demand under this Agreement or such Note or Notes and although such Obligations may be unmatured. Each
Agent and each Lender Party agrees promptly to notify the Borrower after any such set-off and application; provided, however, that the failure to give such notice shall not affect the validity of such set-off and application. The rights of
each Agent and each Lender Party and their respective Affiliates under this Section are in addition to other rights and remedies (including, without limitation, other rights of set-off) that such Agent, such Lender Party and their respective
Affiliates may have. 
 SECTION 8.06. Binding Effect. This Agreement shall become effective when it shall have been executed by the
Borrower and each Agent and the Administrative Agent shall have been notified by each Initial Lender Party that such Initial Lender Party has executed it and thereafter shall be binding upon and inure to the benefit of the Borrower, each Agent and
each Lender Party and their respective successors and assigns, except that the Borrower shall not have the right to assign its rights hereunder or any interest herein without the prior written consent of the Lender Parties. 
 SECTION 8.07. Assignments and Participations. (a) Each Lender may and, so long as no Default shall have occurred and be continuing, if
demanded by the Borrower (following a demand by such Lender pursuant to Section 2.10 or 2.12) upon at least five Business Days’ notice to such Lender and the Administrative Agent will, assign to one or more Eligible Assignees all or a
portion of its rights and obligations under this Agreement and the other Loan Documents (including, without limitation, all or a portion of its Commitment or Commitments, the Advances owing to it and the Note or Notes held by it); provided,
however, that (i) except in the case of an assignment to a Person that, immediately prior to such assignment, was a Lender, an Affiliate of any Lender or an Approved Fund of any Lender or an assignment of all of a Lender’s rights
and obligations under this Agreement, the aggregate amount of the Commitments and Advances being assigned to such Eligible Assignee pursuant to such assignment (determined as of the date of the Assignment and Acceptance with respect to such
assignment) shall in no event be less than $1,000,000 (or, in each case, such lesser amount as shall be approved by the Administrative Agent and, so long as no Default shall have occurred and be continuing at the time of effectiveness of such
assignment, the Borrower) under each Facility for which a Commitment or Advance is being assigned, (ii) each such assignment shall be to an Eligible Assignee and (iii) the parties to each such assignment shall execute and deliver to the
Administrative Agent, for its acceptance and recording in the Register, an Assignment and Acceptance, together with any Note or Notes subject to such assignment and (except in the case of an assignment to a Person that, immediately prior to such
assignment, was an Affiliate or an Approved Fund of the assigning Lender) a processing and recordation fee of $3,500. 
  

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 (b) Upon such execution, delivery, acceptance and recording, from and after the effective
date specified in such Assignment and Acceptance, (i) the assignee thereunder shall be a party hereto and, to the extent that rights and obligations hereunder have been assigned to it pursuant to such Assignment and Acceptance, have the rights
and obligations of a Lender or the Issuing Bank, as the case may be, hereunder and (ii) the Lender or the Issuing Bank assignor thereunder shall, to the extent that rights and obligations hereunder have been assigned by it pursuant to such
Assignment and Acceptance, relinquish its rights (other than its rights under Sections 2.10, 2.12 and 8.04 to the extent any claim thereunder relates to an event arising prior to such assignment) and be released from its obligations under this
Agreement (and, in the case of an Assignment and Acceptance covering all of the remaining portion of an assigning Lender’s or the Issuing Bank’s rights and obligations under this Agreement, such Lender or the Issuing Bank shall cease to be
a party hereto). 
 (c) By executing and delivering an Assignment and Acceptance, each Lender Party assignor thereunder and
each assignee thereunder confirm to and agree with each other and the other parties thereto and hereto as follows: (i) other than as provided in such Assignment and Acceptance, such assigning Lender Party makes no representation or warranty and
assumes no responsibility with respect to any statements, warranties or representations made in or in connection with any Loan Document or the execution, legality, validity, enforceability, genuineness, sufficiency or value of, or the perfection or
priority of any lien or security interest created or purported to be created under or in connection with, any Loan Document or any other instrument or document furnished pursuant thereto; (ii) such assigning Lender Party makes no representation
or warranty and assumes no responsibility with respect to the financial condition of any Loan Party or the performance or observance by any Loan Party of any of its obligations under any Loan Document or any other instrument or document furnished
pursuant thereto; (iii) such assignee confirms that it has received a copy of this Agreement, together with copies of the financial statements referred to in Section 4.01 and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into such Assignment and Acceptance; (iv) such assignee will, independently and without reliance upon any Agent, such assigning Lender Party or any other Lender Party 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; (v) such assignee confirms that it is an Eligible Assignee;
(vi) such assignee appoints and authorizes each Agent to take such action as agent on its behalf and to exercise such powers and discretion under the Loan Documents as are delegated to such Agent by the terms hereof and thereof, together with
such powers and discretion as are reasonably incidental thereto; and (vii) such assignee agrees that it will perform in accordance with their terms all of the obligations that by the terms of this Agreement are required to be performed by it as
a Lender or the Issuing Bank, as the case may be. 
 (d) The Administrative Agent shall maintain at its address referred to in
Section 8.02 a copy of each Assignment and Acceptance delivered to and accepted by it and a register for the recordation of the names and addresses of the Lender Parties and the Commitment under each Facility of, and principal amount of the
Advances owing under each Facility to, each Lender Party from time to time (the “Register”). The entries in the Register shall be conclusive and binding for all purposes, absent manifest error, and the Borrower, the Agents
and the Lender Parties may treat each Person whose name is recorded in the Register as a Lender Party hereunder for all purposes of this Agreement. The Register shall be available for inspection by the Borrower or any Agent or any Lender Party at
any reasonable time and from time to time upon reasonable prior notice. 
  

 85 

 (e) Upon its receipt of an Assignment and Acceptance executed by an assigning Lender
Party and an assignee, together with any Note or Notes subject to such assignment, the Administrative Agent shall, if such Assignment and Acceptance has been completed and is in substantially the form of Exhibit C hereto, (i) accept such
Assignment and Acceptance, (ii) record the information contained therein in the Register and (iii) give prompt notice thereof to the Borrower and each other Agent. In the case of any assignment by a Lender, within five Business Days after
its receipt of such notice, the Borrower, at its own expense, shall execute and deliver to the Administrative Agent in exchange for the surrendered Note or Notes a new Note to the order of such Eligible Assignee in an amount equal to the Commitment
assumed by it under each Facility pursuant to such Assignment and Acceptance and, if any assigning Lender has retained a Commitment hereunder under such Facility, a new Note to the order of such assigning Lender in an amount equal to the Commitment
retained by it hereunder. Such new Note or Notes shall be in an aggregate principal amount equal to the aggregate principal amount of such surrendered Note or Notes, shall be dated the effective date of such Assignment and Acceptance and shall
otherwise be in substantially the form of Exhibit A-1, A-2 or A-3 hereto, as the case may be. 
 (f) The Issuing Bank may
assign to an Eligible Assignee all or a portion of its rights and obligations under the undrawn portion of its Letter of Credit Commitment at any time; provided, however, that (i) each such assignment shall be to an Eligible Assignee and
(ii) the parties to each such assignment shall execute and deliver to the Administrative Agent, for its acceptance and recording in the Register, an Assignment and Acceptance, together with a processing and recordation fee of $3,500.

 (g) Each Lender Party may sell participations to one or more Persons (other than any Loan Party or any of its Affiliates)
in or to all or a portion of its rights and obligations under this Agreement (including, without limitation, all or a portion of its Commitments, the Advances owing to it and the Note or Notes (if any) held by it); provided, however, that
(i) such Lender Party’s obligations under this Agreement (including, without limitation, its Commitments) shall remain unchanged, (ii) such Lender Party shall remain solely responsible to the other parties hereto for the performance
of such obligations, (iii) such Lender Party shall remain the holder of any such Note for all purposes of this Agreement, (iv) the Borrower, the Agents and the other Lender Parties shall continue to deal solely and directly with such
Lender Party in connection with such Lender Party’s rights and obligations under this Agreement and (v) no participant under any such participation shall have any right to approve any amendment or waiver of any provision of any Loan
Document, or any consent to any departure by any Loan Party therefrom, except to the extent that such amendment, waiver or consent would reduce the principal of, or interest on, the Notes or any fees or other amounts payable hereunder, in each case
to the extent subject to such participation, postpone any date fixed for any payment of principal of, or interest on, the Notes or any fees or other amounts payable hereunder, in each case to the extent subject to such participation, or release all
or substantially all of the Collateral. 
 (h) Any Lender Party may, in connection with any assignment or participation or
proposed assignment or participation pursuant to this Section 8.07, disclose to the assignee or participant or proposed assignee or participant any information relating to the Borrower furnished to such Lender Party by or on behalf of the
Borrower; provided, however, that, prior to any such disclosure, the assignee or participant or proposed assignee or participant shall agree to preserve the confidentiality of any Confidential Information received by it from such Lender
Party. 
 (i) Notwithstanding any other provision set forth in this Agreement, any Lender Party may at any time create a
security interest in all or any portion of its rights under this Agreement and the other Loan Documents (including, without limitation, the Advances owing to it and the Note or Notes held by it) in favor of any Federal Reserve Bank in accordance
with Regulation A of the Board of Governors of the Federal Reserve System. 
  

 86 

 (j) Notwithstanding anything to the contrary contained herein, any Lender that is a fund
that invests in bank loans may create a security interest in all or any portion of the Advances owing to it and the Note or Notes held by it to the trustee for holders of obligations owed, or securities issued, by such fund as security for such
obligations or securities, provided, that unless and until such trustee actually becomes a Lender in compliance with the other provisions of this Section 8.07, (i) no such pledge shall release the pledging Lender from any of its
obligations under the Loan Documents and (ii) such trustee shall not be entitled to exercise any of the rights of a Lender under the Loan Documents even though such trustee may have acquired ownership rights with respect to the pledged interest
through foreclosure or otherwise. 
 SECTION 8.08. Execution in 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 taken together shall constitute one and the same agreement. Delivery by fax of an executed
counterpart of a signature page to this Agreement shall be effective as delivery of an original executed counterpart of this Agreement. 
 SECTION 8.09. No Liability of the Issuing Bank. The Borrower assumes all risks of the acts or omissions of any beneficiary or transferee of any Letter of Credit with respect to its use of such Letter of Credit. Neither the Issuing
Bank nor any of its officers or directors shall be liable or responsible for: (a) the use that may be made of any Letter of Credit or any acts or omissions of any beneficiary or transferee in connection therewith; (b) the validity,
sufficiency or genuineness of documents, or of any endorsement thereon, even if such documents should prove to be in any or all respects invalid, insufficient, fraudulent or forged; (c) payment by the Issuing Bank against presentation of
documents that do not comply with the terms of a Letter of Credit, including failure of any documents to bear any reference or adequate reference to the Letter of Credit; or (d) any other circumstances whatsoever in making or failing to make
payment under any Letter of Credit, except that the Borrower shall have a claim against the Issuing Bank, and the Issuing Bank shall be liable to the Borrower, to the extent of any direct, but not consequential, damages suffered by the Borrower that
the Borrower proves were caused by (i) the Issuing Bank’s willful misconduct or gross negligence as determined in a final, non-appealable judgment by a court of competent jurisdiction in determining whether documents presented under any
Letter of Credit comply with the terms of the Letter of Credit or (ii) the Issuing Bank’s willful failure to make lawful payment under a Letter of Credit after the presentation to it of a draft and certificates strictly complying with the
terms and conditions of the Letter of Credit. In furtherance and not in limitation of the foregoing, the Issuing Bank 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. 
 SECTION 8.10. Confidentiality. Neither any Agent nor any Lender Party shall disclose any
Confidential Information to any Person without the consent of the Borrower, other than (a) to such Agent’s or such Lender Party’s Affiliates and their officers, directors, employees, agents and advisors and to actual or prospective
Eligible Assignees and participants, and then only on a confidential basis, (b) as required by any law, rule or regulation or judicial process, (c) as requested or required by any state, Federal or foreign authority or examiner (including
the National Association of Insurance Commissioners or any similar organization or quasi-regulatory authority) regulating such Lender Party, (d) to any rating agency when required by it, provided that, prior to any such disclosure, such
rating agency shall undertake to preserve the confidentiality of any Confidential Information relating to the Loan Parties received by it from such Lender Party, (e) in connection with any litigation or proceeding to which such Agent or such
Lender Party or any of its Affiliates may be a party or (f) in connection with the exercise of any right or remedy under this Agreement or any other Loan Document; provided, that, any Agent and any Lender Party (and each employee,
representative or other agent of such Agent or such Lender Party, as applicable) may disclose to any and all Persons, without limitation of any kind, the “tax treatment” and “tax structure” (in each case, within the meaning of
Treasury Regulation Section 1.6011-4) of the 

  

 87 

 
Acquisition and the transactions contemplated hereby and all materials of any kind (including opinions or other tax analyses) that are provided to the Agent
or such Lender Party relating to such tax treatment and tax structure, except that, with respect to any document or similar item that in either case contains information concerning the tax treatment or tax structure of the transaction as well as
other information, this proviso shall only apply to such portions of the document or similar item that relate to the tax treatment or tax structure of the Acquisition and the transactions contemplated hereby. The Borrower does not intend to treat
the Advances and related transactions as being a “reportable transaction” (within the meaning of Treasury Regulation Section 1.6011-4). Each Loan Party acknowledges that one or more of the Lender Parties may treat the Advances as part
of a transaction that is subject to Treasury Regulation Section 1.6011-4 or Section 301.6112-1, and the Administrative Agent and such Lender Party or Lender Parties, as applicable, may file such IRS forms or maintain such lists and other
records as they may determine is required by such Treasury Regulations. 
 SECTION 8.11. Judgment Currency. If, for the purposes of
obtaining judgment in any court, it is necessary to convert a sum due hereunder or under any other Loan Document in one currency into another currency, the rate of exchange used shall be that at which in accordance with normal banking procedures the
Administrative Agent could purchase the first currency with such other currency on the Business Day preceding that on which final judgment is given. The obligation of each of the Loan Parties in respect of any such sum due from it to the
Administrative Agent or any Lender hereunder or under the other Loan Documents shall, notwithstanding any judgment in a currency (the “Judgment Currency”) other than U.S. dollars, be discharged only to the extent that on the
Business Day following receipt by the Administrative Agent or such Lender of any sum adjudged to be so due in the Judgment Currency, the Administrative Agent or such Lender may in accordance with normal banking procedures purchase U.S. dollars with
the Judgment Currency. If the amount of U.S. dollars so purchased is less than the sum originally due to the Administrative Agent or such Lender in U.S. dollars, the Borrower agrees, as a separate obligation and notwithstanding any such judgment, to
indemnify the Administrative Agent or such Lender or the Person to whom such obligation was owing against such loss. If the amount of U.S. dollars so purchased is greater than the sum originally due to the Administrative Agent or such Lender in such
currency, the Administrative Agent and the Lenders agree to apply such excess to any Obligations hereunder then due and payable. 
 SECTION
8.12. Release of Collateral. Upon the sale, lease, transfer or other disposition of any item of Collateral of any Loan Party (including, without limitation, as a result of the sale, in accordance with the terms of the Loan Documents, of a
Subsidiary Guarantor that owns such Collateral) in accordance with the terms of the Loan Documents, the Collateral Agent will, at the Borrower’s expense, execute and deliver to such Loan Party such documents as such Loan Party may reasonably
request to evidence the release of such item of Collateral from the assignment and security interest granted under the Collateral Documents in accordance with the terms of the Loan Documents and, if applicable, the release of such Subsidiary
Guarantor from its obligations under the Subsidiary Guaranty. 
 SECTION 8.13. Jurisdiction, Etc. (a) EACH OF THE PARTIES HERETO
HEREBY IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF ANY NEW YORK STATE COURT OR FEDERAL COURT OF THE UNITED STATES OF AMERICA SITTING IN NEW YORK CITY, AND ANY APPELLATE COURT FROM
ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS TO WHICH IT IS A PARTY, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY AND
UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY LAW, 

  

 88 

 
IN SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN
OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT SHALL AFFECT ANY RIGHT THAT ANY PARTY MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OF THE OTHER
LOAN DOCUMENTS IN THE COURTS OF ANY JURISDICTION. 
 (b) EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY
WAIVES, TO THE FULLEST EXTENT IT MAY LEGALLY AND EFFECTIVELY DO SO, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OF THE OTHER LOAN
DOCUMENTS TO WHICH IT IS A PARTY IN ANY NEW YORK STATE OR FEDERAL COURT. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR
PROCEEDING IN ANY SUCH COURT. 
 SECTION 8.14. GOVERNING LAW. THIS AGREEMENT AND THE NOTES SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 
 SECTION 8.15. WAIVER OF JURY TRIAL. EACH OF THE BORROWER, THE
AGENTS AND THE LENDER PARTIES IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO ANY OF THE LOAN DOCUMENTS, THE ADVANCES, THE LETTERS
OF CREDIT OR THE ACTIONS OF ANY AGENT OR ANY LENDER PARTY IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE OR ENFORCEMENT THEREOF. 
 SECTION 8.16. PATRIOT ACT NOTICE. Each Lender subject to the USA Patriot Act, Title III of Pub. L. 107-56, signed into law October 26, 2001 (the “Patriot Act”), hereby notifies the Borrower that pursuant to the
requirements of the Patriot Act, it is required to obtain, verify and record information that identifies the Borrower, which information includes the name and address of the Borrower and other information that will allow such Lender to identify the
Borrower in accordance with the Patriot Act. 
 SECTION 8.17. NO ADVISORY OR FIDUCIARY RESPONSIBILITY. The Borrower hereby
acknowledges that: 
 (a) it has been advised by counsel in the negotiation, execution and delivery of each Loan Document;

 (b) neither the Administrative Agent nor any Lender has any fiduciary relationship with or duty to the Borrower or any
other Loan Party arising out of or in connection with this Agreement and the relationship between the Administrative Agent and the Lenders, on one hand, and the Borrower and the other Loan Parties, on the other hand, in connection herewith is solely
that of creditor and debtor; and 
 (c) no joint venture exists among the Lenders and the Administrative Agent or among the
Borrower, the Administrative Agent or the other Loan Parties and the Lenders. 
  

 89 

 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. 
  

					
	ESTERLINE TECHNOLOGIES CORPORATION
		
	By	 	/s/ Robert D. George
		 	Name:	 	Robert D. George
		 	Title:	 	Vice President, Chief Financial Officer, Secretary and Treasurer
	
	 WACHOVIA BANK, NATIONAL ASSOCIATION,
as Administrative Agent

		
	By	 	 
		 	Title:	 	
	
	 WACHOVIA BANK, NATIONAL ASSOCIATION,
as Collateral Agent

		
	By	 	 
		 	Title:	 	
	
	 WELLS FARGO BANK, N.A.,
as Syndication Agent

		
	By	 	 
		 	Title:	 	
	
	 KEYBANK NATIONAL ASSOCIATION,
as Co-Documentation Agent

		
	By	 	 
		 	Title:	 	
	
	 BANK OF AMERICA, N.A.,
as Co-Documentation Agent

		
	By	 	 
		 	Title:	 	

					
	 WACHOVIA CAPITAL MARKETS, LLC
 (f/k/a Wachovia Securities, LLC),
as Bookrunner/ Co-Lead Arranger

		
	By	 	 
		 	Title:	 	
	
	 WELLS FARGO BANK, N.A.,
as Co-Lead Arranger

		
	By	 	 
		 	Title:	 	

 Initial Lenders 
  

					
	 WACHOVIA BANK, NATIONAL ASSOCIATION,
as Initial Lender, Issuing Bank and Swing Line Bank

		
	By	 	 
		 	Title:	 	
	
	THE BANK OF NEW YORK MELLON
		
	By	 	 
		 	Title:	 	
	
	KEY BANK NATIONAL ASSOCIATION
		
	By	 	 
		 	Title:	 	
	
	U.S. BANK NATIONAL ASSOCIATION
		
	By	 	 
	
	WELLS FARGO BANK, N.A.
		
	By	 	 
		 	Title:Operating Agreement of KC Pinehurst Associates, LLC

 EXHIBIT 10.18 
 OPERATING AGREEMENT 
 OF 
 KC PINEHURST ASSOCIATES, LLC 
 THIS SECURITY HAS NOT BEEN REGISTERED WITH THE SECURITIES AND
EXCHANGE COMMISSION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “FEDERAL ACT”), IN RELIANCE UPON ONE (1) OR MORE EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE FEDERAL ACT. IN ADDITION, THE ISSUANCE OF THIS SECURITY
HAS NOT BEEN QUALIFIED UNDER THE DELAWARE SECURITIES ACT OR ANY OTHER STATE SECURITIES LAWS (COLLECTIVELY, THE “STATE ACTS”), IN RELIANCE UPON ONE (1) OR MORE EXEMPTIONS FROM THE REGISTRATION PROVISIONS OF THE STATE ACTS. IT IS
UNLAWFUL TO CONSUMMATE A SALE OR OTHER TRANSFER OF THIS SECURITY OR ANY INTEREST THEREIN TO, OR TO RECEIVE ANY CONSIDERATION THEREFOR FROM, ANY PERSON OR ENTITY WITHOUT THE OPINION OF COUNSEL FOR THE COMPANY THAT THE PROPOSED SALE OR OTHER TRANSFER
OF THIS SECURITY DOES NOT AFFECT THE AVAILABILITY TO THE COMPANY OF SUCH EXEMPTIONS FROM REGISTRATION AND QUALIFICATION, AND THAT SUCH PROPOSED SALE OR OTHER TRANSFER IS IN COMPLIANCE WITH ALL APPLICABLE STATE AND FEDERAL SECURITIES LAWS. THE
TRANSFER OF THIS SECURITY IS FURTHER RESTRICTED UNDER THE TERMS OF THE OPERATING AGREEMENT GOVERNING THE COMPANY, A COPY OF WHICH IS ON FILE WITH THE OPERATING MEMBER OF THE COMPANY. 

 OPERATING AGREEMENT 
 OF 
 KC PINEHURST ASSOCIATES, LLC 
 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	 ARTICLE 1     FORMATION
	  	1
			
	 1.01
	  	Formation	  	1
	 1.02
	  	Names and Addresses	  	1
	 1.03
	  	Nature of Business	  	2
	 1.04
	  	Term of the Company	  	2
		
	 ARTICLE 2     MANAGEMENT OF THE COMPANY
	  	2
			
	 2.01
	  	Management Committee	  	2
	 2.02
	  	Authority of the Management Committee	  	5
	 2.03
	  	Operating Member	  	8
	 2.04
	  	Annual Business Plan	  	10
	 2.05
	  	Operating Budget	  	10
	 2.06
	  	Removal of the Operating Member	  	11
	 2.07
	  	Liability and Indemnity	  	13
	 2.08
	  	Limited Liability	  	13
	 2.09
	  	Other Activities	  	14
	 2.10
	  	Brokers Indemnity	  	14
	 2.11
	  	Reimbursement; Compensation	  	14
	 2.12
	  	Property Management	  	15
		
	 ARTICLE 3     MEMBERS’ CAPITAL CONTRIBUTIONS
	  	15
			
	 3.01
	  	Initial Contributions of the Members	  	15
	 3.02
	  	Additional Contributions	  	16
	 3.03
	  	Remedy For Failure to Contribute Capital	  	16
	 3.04
	  	Debt Financing	  	19
	 3.05
	  	Loans from Members	  	20
	 3.06
	  	Capital Contributions in General	  	20
		
	 ARTICLE 4     ALLOCATION OF PROFITS AND LOSSES
	  	20
			
	 4.01
	  	Allocation of Net Profits and Net Losses	  	20
	 4.02
	  	Regulatory Allocations	  	22
	 4.03
	  	Special Allocation	  	23
	 4.04
	  	Other Allocation Rules	  	23
		
	 ARTICLE 5     DISTRIBUTIONS
	  	24
			
	 5.01
	  	Distribution of Ordinary Cash Flow	  	24
	 5.02
	  	Distribution of Extraordinary Cash Flow	  	24
	 5.03
	  	Limitations on Distributions	  	25
	 5.04
	  	In-Kind Distribution	  	25

					
	 5.05
	    	Right to Withhold	  	25
		
	 ARTICLE 6     RESTRICTIONS ON TRANSFERS OF COMPANY INTERESTS
	  	26
			
	 6.01
	    	Limitations on Transfer	  	26
	 6.02
	    	Permitted Transfers	  	26
	 6.03
	    	Admission of Substitute Members	  	27
	 6.04
	    	Additional Restrictions on Transfer	  	27
	 6.05
	    	Paladin Purchase Option	  	28
	 6.06
	    	Election; Allocations Between Transferor and Transferee	  	29
	 6.07
	    	Partition	  	29
	 6.08
	    	Waiver of Withdrawal	  	29
		
	ARTICLE 7     DEFAULT BUY-SELL AGREEMENT	  	30
			
	 7.01
	    	Default Buy-Sell Events	  	30
	 7.02
	    	Rights Arising From a Default Buy-Sell Event	  	31
	 7.03
	    	Determination of Purchase Price	  	32
	 7.04
	    	Member’s Option	  	34
	 7.05
	    	Closing of Purchase and Sale	  	34
	 7.06
	    	Payment of Purchase Price	  	35
	 7.07
	    	Release and Indemnity	  	35
	 7.08
	    	Repayment of Member Loans	  	35
	 7.09
	    	Voting Rights Following Default Buy-Sell Event	  	36
	 7.10
	    	Withdrawal of the Selling Member	  	36
		
	ARTICLE 8     DISSOLUTION AND WINDING UP OF THE COMPANY	  	36
			
	 8.01
	    	Events Causing Dissolution of the Company	  	36
	 8.02
	    	Winding Up of the Company	  	37
	 8.03
	    	No Negative Capital Account Restoration	  	37
		
	ARTICLE 9     BOOKS AND RECORDS; ACCOUNTING; TAX ELECTIONS	  	37
			
	 9.01
	    	Company Books	  	37
	 9.02
	    	Delivery of Records; Inspection	  	38
	 9.03
	    	Reports and Tax Information	  	38
	 9.04
	    	Company Tax Elections; Tax Controversies	  	40
	 9.05
	    	Accounting and Fiscal Year	  	40
	 9.06
	    	Confidentiality of Information	  	40
		
	ARTICLE 10     MISCELLANEOUS	  	41
			
	 10.01
	    	Subscription Agreement	  	41
	 10.02
	    	Investment Interest; Nature of Investment	  	41
	 10.03
	    	Appointment of Attorney-in-Fact	  	41
	 10.04
	    	Waiver of Conflict of Interest	  	42
	 10.05
	    	Amendment	  	42
	 10.06
	    	No Assignments; Binding Effect	  	43
	 10.07
	    	Further Assurances	  	43
	 10.08
	    	Notices	  	43
	 10.09
	    	Waivers	  	44

					
	 10.10
	    	Preservation of Intent	  	44
	 10.11
	    	Entire Agreement	  	45
	 10.12
	    	Certain Rules of Construction	  	45
	 10.13
	    	Counterparts	  	45
	 10.14
	    	Governing Law	  	45
	 10.15
	    	Assurances	  	45
	 10.16
	    	Time is of the Essence	  	46
	 10.17
	    	Other Matters	  	46
	 10.18
	    	Ownership of the Lippert Members and Property Manager	  	46
		
	 ARTICLE 11     DEFINITIONS
	  	46
			
	 11.01
	    	12% IRR Amount	  	46
	 11.02
	    	Additional Contribution	  	47
	 11.03
	    	Additional Member	  	47
	 11.04
	    	Adjusted Capital Account	  	47
	 11.05
	    	Affiliate	  	47
	 11.06
	    	Agreement	  	47
	 11.07
	    	Annual Business Plan	  	47
	 11.08
	    	Appraised Value	  	47
	 11.09
	    	Business Day	  	48
	 11.10
	    	Buyout Purchase Price	  	48
	 11.11
	    	Buy-Sell Notice	  	48
	 11.12
	    	Capital Account	  	48
	 11.13
	    	Capital Contribution	  	48
	 11.14
	    	Capital Event	  	48
	 11.15
	    	Cash Flow	  	49
	 11.16
	    	Cash Flow Bonus Forfeiture Event	  	49
	 11.17
	    	Code	  	49
	 11.18
	    	Company	  	49
	 11.19
	    	Company Minimum Gain	  	49
	 11.20
	    	Contributing Member	  	49
	 11.21
	    	Contribution Date	  	49
	 11.22
	    	Contribution Notice	  	50
	 11.23
	    	Contribution Percentage	  	50
	 11.24
	    	Default Buy-Sell Event	  	50
	 11.25
	    	Default Notice	  	50
	 11.26
	    	Defaulting Member	  	50
	 11.27
	    	Default Purchase Price	  	50
	 11.28
	    	Deferred Management Fees	  	50
	 11.29
	    	Deferred Management Fee Account	  	50
	 11.30
	    	Delaware Act	  	50
	 11.31
	    	Delinquent Contribution	  	50
	 11.32
	    	Dilution Percentage	  	51
	 11.33
	    	Effective Date	  	51
	 11.34
	    	Extraordinary Cash Flow	  	51
	 11.35
	    	Fiscal Year	  	51
	 11.36
	    	Gross Asset Value	  	52

					
	 11.37
	    	Immediate Family	  	52
	 11.38
	    	Indemnified Party	  	53
	 11.39
	    	Interest	  	53
	 11.40
	    	IRR	  	53
	 11.41
	    	Lippert Holdings	  	53
	 11.42
	    	Lippert Management	  	53
	 11.43
	    	Lippert Member(s)	  	53
	 11.44
	    	Liquidation	  	53
	 11.45
	    	Majority of Representatives	  	54
	 11.46
	    	Management Committee	  	54
	 11.47
	    	Material Breach	  	54
	 11.48
	    	Member Loan	  	54
	 11.49
	    	Member Minimum Gain	  	54
	 11.50
	    	Member Nonrecourse Debt	  	54
	 11.51
	    	Member Nonrecourse Deductions	  	55
	 11.52
	    	Member(s)	  	55
	 11.53
	    	Net Profits and Net Losses	  	55
	 11.54
	    	Non-Contributing Member	  	56
	 11.55
	    	Nonrecourse Deductions	  	56
	 11.56
	    	Operating Account	  	56
	 11.57
	    	Operating Budget	  	56
	 11.58
	    	Operating Member	  	56
	 11.59
	    	Option Notice	  	56
	 11.60
	    	Option Price	  	56
	 11.61
	    	Ordinary Cash Flow	  	56
	 11.62
	    	Paladin	  	57
	 11.63
	    	Paladin REIT	  	57
	 11.64
	    	Percentage Interest	  	57
	 11.65
	    	Permitted Transferees	  	57
	 11.66
	    	Person	  	57
	 11.67
	    	Price Determination Notice	  	57
	 11.68
	    	Preferred Return	  	58
	 11.69
	    	Project	  	58
	 11.70
	    	Project Shortfall	  	58
	 11.71
	    	Property Management Agreement	  	58
	 11.72
	    	Property Manager	  	58
	 11.73
	    	Purchase Option	  	58
	 11.74
	    	Purchasing Member	  	58
	 11.75
	    	Qualified Appraiser	  	58
	 11.76
	    	Regulatory Allocations	  	59
	 11.77
	    	REIT	  	59
	 11.78
	    	Removal Event	  	59
	 11.79
	    	Removal Notice	  	59
	 11.80
	    	Securities Act	  	59
	 11.81
	    	Seller Loan	  	59
	 11.82
	    	Selling Member	  	59

					
	 11.83
	    	Tax Matters Partner	  	59
	 11.84
	    	Threshold Return	  	59
	 11.85
	    	Third-Party Purchase Price	  	59
	 11.86
	    	Transfer	  	59
	 11.87
	    	Treasury Regulation	  	60
	 11.88
	    	Unanimous Written Consent	  	60
	 11.89
	    	Unpaid Preferred Return	  	60
	 11.90
	    	Unrecovered Contribution Account	  	60

 EXECUTION COPY 
 OPERATING AGREEMENT 
 OF 
 KC PINEHURST ASSOCIATES, LLC 
 THIS OPERATING AGREEMENT OF KC PINEHURST
ASSOCIATES, LLC (the “Company”), is entered into effective as of September 13, 2007, by and between PRIP 500, LLC, a Delaware limited liability company (“Paladin”), and JTL HOLDINGS, LLC, a
Missouri limited liability company (“Lippert Holdings”), and JTL ASSET MANAGEMENT, INC., a Missouri limited liability company (“Lippert Management”). The capitalized terms used herein and not otherwise
defined shall have the respective meanings assigned to such terms in Article 11. 
 ARTICLE 1 
 FORMATION 
 1.01
Formation 
 The Company has been formed as a Delaware limited liability company pursuant to the provisions of the Delaware Act.
The Company shall be operated in accordance with, and the Members shall be governed by, the terms and conditions of this Agreement. If any terms of this Agreement are inconsistent with any terms of the Act that are not mandatory, then the terms of
this Agreement shall control. In connection with the formation of the Company, a duly authorized representative of the Company has caused to be filed with the office of the Delaware Secretary of State a duly executed Certificate of Formation for the
Company in accordance with the Delaware Act. A duly authorized representative also shall execute, acknowledge and verify such other documents or instruments as may be necessary or appropriate in order to form the Company under the Delaware Act or to
continue its existence in accordance with the provisions of the Delaware Act or to register, qualify to do business or operate its business as a foreign limited liability company in any other state in which the Company conducts business. 

1.02 Names and Addresses 
 The name of the Company is KC Pinehurst Associates, LLC. The registered office of the Company in the State of Delaware shall be at c/o The Corporation Trust Company, 1209 Orange Street, Wilmington, Delaware 19801 and the name of the
registered agent for the Company at such registered office is The Corporation Trust Company. For so long as Lippert Management is the Operating Member, the principal office for the Company shall be maintained at Two Pershing Square, 2300 Main
Street, Suite 910, Kansas City, Missouri 64108, or such other location at which Lippert Management maintains an office and thereafter at such other place as the Management 

  

 1 

 
Committee may designate from time to time. Copies of any material notices or other matters received by the Company shall be promptly delivered by the
Operating Member to the Members. 
 1.03 Nature of Business 
 The purpose for which the Company is to exist is (i) to acquire, own, manage, operate,
maintain, finance, hold for investment, and sell that certain real property more particularly described on Exhibit B attached hereto, together with existing improvements consisting of an approximately 146 unit apartment complex and related
amenities and improvements located thereto located at 500 NW 63rd Street in Kansas City, Missouri (the “Project”); (ii) to
conduct such other activities with respect to, and otherwise realize and optimize the economic internal rates of return from, the Project and any and all other related assets the Company may hereinafter acquire as are appropriate to carrying out the
foregoing purposes; and (iii) to do all things incidental to or in furtherance of the above enumerated purposes. 
 1.04 Term of
the Company 
 The term of the Company commenced on the date the Certificate of Formation for the Company was filed with the Delaware
Secretary of State and shall continue until December 31, 2047, unless otherwise dissolved pursuant to Article 8 or unless extended by the unanimous agreement of the Members. The existence of the Company as a separate legal entity shall
continue until the cancellation of the Certificate of Formation of the Company in accordance with the provisions of the Delaware Act. 
 ARTICLE 2 
 MANAGEMENT OF THE COMPANY 
 2.01 Management Committee 
 (a)
Management by Management Committee. Except as otherwise provided in this Agreement, all aspects of the business and affairs of the Company shall be managed, and all decisions affecting the business and affairs of the Company (including,
without limitation, investment and Project related decisions) shall be made, by the Members acting through a management committee (the “Management Committee”) composed of five (5) representatives in accordance with the
provisions contained below. The Members, exclusively through the Management Committee, shall have the right, power and authority to take any and all actions consistent with the purpose of the Company that is permitted hereunder and under applicable
law. No Member shall have any right, power or authority to act (as agent or otherwise) for, or to bind, the Company in any manner (other than as expressly provided herein) except through the Management Committee. 
 (b) Representatives. Paladin shall be entitled to select three (3) representatives of the Management Committee, and Lippert Management shall
be entitled to select two (2) representatives of the Management Committee. Lippert Holdings shall 

  

 2 

 
not be entitled to appoint any representatives to the Management Committee. Paladin hereby designates James R. Worms, William K. Dunbar, and Whitney A.
Greaves as its initial representatives on the Management Committee, and Lippert Management hereby designates James E. Lippert and Teresa Lippert as its initial representatives of the Management Committee. Paladin may appoint a replacement
representative at any time and from time to time for any one or more of the representatives it designated by giving written notice of such replacement to the Lippert Members, which replacement shall be effective upon the giving of such notice. Any
change in the designation of Lippert Management’s representatives shall be subject to Paladin’s approval, which approval shall not be unreasonably withheld. The Members acting through the Management Committee shall have the authority to
make all decisions affecting the business and affairs of the Company as fully and completely as if the Members were themselves making such decisions. Each Member recognizes and agrees, however, that the representatives on the Management Committee
are acting exclusively on behalf of the Member they represent, respectively, and that such representatives shall not, therefore, have any personal liability by reason of serving as a representative of such Member. 
 (c) Decisions. Except as otherwise set forth in this Agreement, any actions required or permitted to be taken by the Management Committee shall be
so taken only either (i) with the approval of a Majority of Representatives at a meeting of the Management Committee or (ii) by Unanimous Written Consent without a meeting pursuant to Section 2.01(i). The Management Committee
may, but shall not be required to, memorialize its actions in the form of minutes, which minutes, when signed by at least one representative on the Management Committee appointed by each of Paladin and Lippert Management, shall be conclusive
evidence of such action and shall be incorporated into the books and records of the Company. Notwithstanding anything contained herein to the contrary, each Member hereby agrees and covenants that it shall direct its representatives on the
Management Committee to execute any minutes relating to actions that were taken in accordance with this Section 2.01(c) regardless of whether such Member voted in favor of the action. 
 (d) Meetings. Regular meetings of the Management Committee shall be held at the principal office of the Company (or at such other place(s) as are
designated by the Management Committee) at such times as shall be designated from time to time by the Management Committee. 
 (e) Special
Meetings. Special meetings of the Management Committee may be called by or at the request of any representative and shall be held at the principal office of the Company (or at such other place(s) as may be designated by the Management
Committee). The representative calling any special meeting of the Management Committee may designate any reasonable time for the holding of the special meeting. 
 (f) Telephonic Participation. Representatives of the Management Committee may participate in any regularly scheduled or special meetings of the Management Committee telephonically or through other similar
communications equipment, as long as all of the representatives participating in the meeting can hear one another. Participation in a meeting pursuant to the preceding sentence shall constitute presence in person at such meeting for all purposes of
this Agreement. 
  

 3 

 (g) Notice and Attendance. Notice of any meeting of, or of any action taken without a meeting
pursuant to Section 2.01(i) by, the Management Committee shall be given as far in advance of the meeting as is reasonably practicable. Representatives, absent exigent circumstances, shall use their best efforts to give any such notice at
least forty-eight (48) hours prior to such meeting, unless otherwise agreed by the representatives, and to attend all meetings of the Management Committee. 
 (h) Quorum. A quorum shall be required to conduct any business at any meeting of the Management Committee, and shall be deemed present at any such meeting so long as at least one representative of each Member
is in attendance (whether in person or otherwise); provided, however, that if written notice of any such meeting has been given at least five (5) days prior to such meeting, then a quorum shall be deemed present at any such meeting so long as a
Majority of Representatives of the Management Committee are present at such meeting. 
 (i) Actions Without Meetings. Any action
required or permitted to be taken at a meeting of the Management Committee may be taken without a meeting with Unanimous Written Consent, which consent shall set forth the actions to be so taken. Any such Unanimous Written Consent shall have the
same effect as an act of a Majority of Representatives at a properly called and constituted meeting of the Management Committee. Copies of any such written consent shall be delivered promptly to all representatives. 
 (j) Execution of Documents. Except as provided in Section 2.03 below, all contracts, agreements and other documents or instruments affecting
or relating to the business and affairs of the Company may be executed on the Company’s behalf only by the Members, or such other person(s) as may be designated by the Management Committee and without execution by any other Member. 

(k) Unauthorized Actions. None of the Members or officers of the Company, without the prior consent of the Management Committee, shall take any
action on behalf of or in the name of the Company, or enter into any commitment or obligation binding upon the Company, except for (i) actions expressly authorized by this Agreement, (ii) actions by any Member (or officer) within the scope
of such Member’s (or officer’s) authority expressly granted hereunder, and (iii) actions authorized by the Management Committee in the manner set forth herein. Each Member hereby indemnifies, defends, protects and holds wholly
harmless the other Members and each such other Member’s Affiliates, shareholders, officers, directors, constituent members, Members, employees, agents, and representatives (including the representative(s) to the Management Committee appointed
by such Member) from and against any and all losses, liability, damages, costs and expenses (including attorneys’ fees) arising out of the breach of any of the foregoing provisions by such indemnifying Member, any representative of the
Management Committee selected by such Member or such Member’s Affiliates, shareholders, officers, directors, constituent members, Members, employees, agents, or representatives. 
  

 4 

 2.02 Authority of the Management Committee 
 Without limiting the generality of Section 2.01, and except as otherwise provided by this Agreement, the consent of the Management Committee
shall be required for the Company to undertake, and the Management Committee shall have the right, power and authority to approve and cause the Company to undertake, all of the following actions (which actions shall be approved by a Majority of
Representatives unless otherwise expressly provided below): 
 (a) Issuance of Additional Interests. The issuance of
any additional Interests in the Company or the admission of any Additional Member into the Company; provided, however, that such a decision shall require the approval of all of the representatives present at a meeting of the Management
Committee at which a quorum is present or Unanimous Written Consent; 
 (b) Sale or Other Transfer. Except as provided
in accordance with the provisions of Article 7, the sale, lease, exchange, transfer or other disposition of all or any portion of the Project or any other assets of the Company; 
 (c) Financing or Refinancing. Any and all financing or refinancing for the Company or the Project, the terms and conditions
thereof, or any modifications or amendments thereto; provided, however, that such a decision shall require the approval of all of the representatives present at a meeting of the Management Committee at which a quorum is present or Unanimous
Written Consent; 
 (d) Material Company Transactions. The entry into by the Company and the taking by the Company of
any and all actions permitted or required by the Company in connection with any acquisition, disposition, merger, “roll-up” consolidation, reorganization, recapitalization, restructuring, joint venture, partnership, limited liability
company, or any other material business transaction involving the Company or its assets, including, without limitation, any and all actions required or permitted in connection with any initial public offering of ownership interests in the Company
(or in connection with the merger or the transfer of the assets of the Company to any corporation or other entity that is the successor to the Company that intends to conduct an initial public offering) or any transfer of all or any portion of the
assets of the Company to a public or private market vehicle that intends to qualify as a real estate investment trust (“REIT”) under Section 856 et. seq. of the Code or to a partnership, limited liability company or
other entity whose general partner, managing member or other owner, intends to qualify as a REIT or to a comparable public or private REIT vehicle; provided, however, that such a decision shall require the approval of all of the
representatives present at a meeting of the Management Committee at which a quorum is present or Unanimous Written Consent; 
  

 5 

 (e) Plans and Budgets. The approval of each Annual Business Plan and Operating
Budget for the Company prepared by the Operating Member, and any modifications or amendments thereof; 
 (f) Expenditures
Outside of Plans or Budgets. The making of any expenditure by the Company that is not specifically included or contemplated under any applicable Annual Business Plan and Operating Budget, other than as permitted within any parameters agreed to
by the Management Committee and specified in any such plan or budget (e.g., application of line item cost savings, contingency line amounts, budget variances, etc.); 
 (g) Additional Capital Contributions. The making of any Additional Contributions to the capital of the Company pursuant to
Section 3.02; 
 (h) Unrelated Businesses. The entry into by the Company of any business that is not
related to the purpose of the Company set forth in Section 1.03; provided, however, that such a decision shall require the approval of all of the representatives present at a meeting of the Management Committee at which a quorum
is present or Unanimous Written Consent; 
 (i) Liquidation of the Company. Except to the extent dissolution of the
Company is permitted or required by this Agreement or any nonwaivable provision of applicable law, the dissolution and winding up of the Company; 
 (j) Contracts with Affiliates. Except as otherwise expressly permitted under this Agreement, the entry by the Company into any contract with, or the making of any payment to, any Member or any Affiliate of any
Member and with respect to any such contract, the making of any amendment, modification, waiver, termination, extension or rescission thereof; the declaration of any default thereunder or the exercise of any remedy thereunder; the institution,
settlement or compromise of any claim with respect thereto; the waiver of any rights of the Company against the other party(ies) thereto; or the consent to the assignment of any rights or the delegation of any duties by the other party(ies) thereto.
The Members further acknowledge and agree that, except as otherwise expressly permitted under this Agreement or as otherwise approved by the Management Committee, the fees paid in connection with any such contracts, payments, etc., made with or to
any Member or any Affiliate thereof shall in all events be commensurate with fees negotiated at arm’s length and paid to independent third parties for providing similar services to projects similar in size, nature and location to the Project;

 (k) Cash Flow and Reserves. Subject to the provisions of Section 5.03, the determination of any
policies or procedures for making Cash Flow distributions by the Company including, without limitation, the establishment of any reserves with respect thereto; 
  

 6 

 (l) Material Agreements. The execution by the Company of any material agreement in
order to acquire, develop, redevelop, renovate, operate, manage, maintain, market, lease, sell, transfer, convey, pledge or otherwise dispose of all or any portion of the Project or any other asset of the Company and any undertaking by the Company
to implement the terms of any such agreement, including the granting or withholding of approvals and consents thereunder, and any amendment or termination of any such material agreement (including, without limitation, the Property Management
Agreement); 
 (m) Consultants. The employment and engagement of any agents, brokers, appraisers, architects,
contractors, subcontractors, attorneys, accountants, bookkeepers, engineers, environmental consultants, real property and mortgage brokers and analysts, underwriters, escrow agents, depositories, agents for collection, banks, builders, building
managers and operators, marketing agents, property managers and any other service providers other than as permitted by the applicable Annual Business Plan or Operating Budget; 
 (n) Legal Proceedings. The institution or defense of any legal proceedings (including arbitration) in the name of the Company, the
settlement of any such legal proceedings against the Company and the confession of any judgment against the Company, or any property thereof; 
 (o) Bankruptcy. Any of the following: (i) the filing of any voluntary petition in bankruptcy on behalf of the Company; (ii) the consenting to the filing of any involuntary petition and bankruptcy
against the Company; (iii) the filing on behalf of the Company of any petition seeking, or consenting to, the reorganization or relief under any applicable federal or state law relating to bankruptcy or insolvency; (iv) the consenting to
the appointment of a receiver, liquidator, assignee, trustee, sequestrator (or other similar official) of the Company or a substantial part of its property; (v) the making on behalf of the Company of any assignment for the benefit of creditors;
(vi) the admission in writing of the Company’s inability to pay its debts generally as they become due; or (vii) the taking of any action by the Company in furtherance of any such action; provided, however, that such a decision
shall require the approval of all of the representatives present at a meeting of the Management Committee at which a quorum is present or Unanimous Written Consent; provided, further, however, that if Lippert Management is removed as
Operating Member of the Company pursuant to Section 2.06 (and as a result no longer has a representative on the Management Committee) and the then current mortgage lender for the Project fails or refuses to release any guaranty of James
E. Lippert for which he would have liability upon the occurrence of one or more of the events specified in clauses (i)—(vii) immediately above, then for so long as Lippert Management remains a Member of the Company the approval of Lippert
Management shall continue to be required for the Company to take any such action specified in clauses (i)—(vii) immediately above until such guaranty is released or such mortgage loan is paid in full; 
  

 7 

 (p) Insurance. The entry into by the Company of any and all contracts of insurance
for the Company that the Management Committee deems necessary or proper for the protection of the Company or the Project, either for the conservation of the Company’s assets or for any purpose convenient or beneficial to the Company;

 (q) Tax and Accounting Elections. Any and all tax or accounting elections permitted or required to be made by the
Company; 
 (r) Actions pertaining to Paladin REIT Status. The undertaking of any action that deemed necessary, in the
sole and but reasonable discretion of the Tax Matters Partner, to maintain the status of Paladin REIT as a REIT under the Code. 
 (s) Transfers from Operating Account. The drawing of any single check on, or the making of any single transfer or expenditure of funds from, the Operating Account in excess of $25,000, or drawing of any multiple number of checks on,
or the making of any multiple number of transfers or expenditures of funds from, any Operating Account which collectively total more than $25,000 to any one Person, unless such single check or transfer, or multiple checks or transfers, are drawn or
made, as the case maybe, pursuant to the directive of the Management Committee as contained in the Operating Budget, and the Operating Member has confirmed, for the benefit of the Company, that any such check or transfer is in proper order for
payment; and 
 (t) Other Actions. Any and all other actions required or permitted to be taken by the Management
Committee under this Agreement and any and all other actions relating to the business and affairs of the Company or necessary to carry out the intentions and purposes of the Company. 
 The provisions of this Section 2.02 shall not be construed as exclusive or so as to bar the Management Committee from delegating
responsibility for any of the Management Committee’s management decisions to any Member, officer, or other representative or agent of the Company. The Members also acknowledge that signatory authority for any of the foregoing items may be
delegated by the Management Committee to any Member, officer, or other representative or agent of the Company. 
 2.03 Operating
Member 
 (a) Designation of Operating Member. Lippert Management is hereby designated as the “Operating Member” of
the Company (the “Operating Member”). Lippert Management shall serve in such capacity unless and until Lippert Management is removed by the Management Committee in accordance with the provisions of Section 2.06.
Following any removal of Lippert Management as the Operating Member, the Person (who may be, but need not be, a Member of the Company) selected by the Management Committee in accordance with the provisions of Section 2.06 shall serve as
the replacement Operating Member or manager of the Company. 
  

 8 

 (b) Responsibilities of Operating Member. The Operating Member shall be responsible for
implementing the decisions of the Management Committee and for regularly reporting to the Management Committee as to the status of the business and affairs of the Company. The Operating Member also shall be responsible for (i) procuring any and
all financing required for the Project as approved by the Management Committee, (ii) supervising the management, leasing and operation of the Project in accordance with a Property Management Agreement approved by the Management Committee and
entered into, by and between the Company, as owner, and either the Property Manager or such other manager as may be designated by the Management Committee, as manager, (iii) undertaking such other matters as are determined by the Management
Committee, (iv) coordinating, supervising and otherwise overseeing any sale of the Project, (v) preparing and, as and when reasonably requested by the Management Committee, updating any applicable Annual Business Plan or Operating Budget
for the Company and the Project (provided, that, for the avoidance of any doubt, the foregoing provisions are not intended to permit the Operating Member to amend, modify or deviate from any of the foregoing documents, plans or budgets
without the prior consent of the Management Committee (except as otherwise expressly provided therein), (vi) advising the Management Committee on day-to-day matters affecting the business and affairs of the Company, (vii) diligently
conducting the day-to-day operations of the Company in accordance with the Annual Business Plan and Operating Budget, (viii) performing the duties assigned to such Member under this Agreement or by the Management Committee, and
(ix) diligently endeavoring to carry out all decisions and resolutions of the Management Committee. 
 (c) Authority of Operating
Member. The Operating Member shall at all times be subject to the direction and control of the Management Committee, and shall conform to the policies and procedures established and approved by the Management Committee in conformity with this
Agreement, and the scope of the Operating Member’s authority shall be limited solely to the matters set forth above in this Section 2.03. The Operating Member shall keep the Management Committee and the Members informed as to all
matters of concern to the Management Committee, the Company and the Members. The Operating Member shall not be authorized to bind the Company without the prior written approval of the Management Committee, except for matters delegated in writing to
the Operating Member by the Management Committee or any nonmaterial agreements, contracts or other documents or instruments affecting or relating to the day-to-day business and affairs of the Company provided that any such agreement, contract
or other document is within the parameters established in the applicable Annual Business Plan or Operating Budget. 
 (d)
Expenditures. The Operating Member shall have the authority to incur costs and expenditures and only the costs and expenditures set forth in an approved Operating Budget (subject to the ability to apply line item cost savings; contingency
line item amounts; budget variances, etc., if any, contained in such Operating Budget) without any further approval of the Management Committee (or the Members). 
 (e) Indemnification. The Operating Member shall indemnify and hold harmless the Company and the other Member(s), their Affiliates, subsidiaries, officers, 

  

 9 

 
directors, employees, partners, members, shareholders, agents and representatives to the full extent permitted by law from and against any and all losses,
claims, costs, damages and expenses (including attorneys’ fees) arising from or in connection with any act or failure to act of the Operating Member which was not in good faith, within the scope of its authority, or in accordance with the
directives of the Management Committee, and (ii) or constituted fraud, willful misconduct, gross negligence, or a Material Breach. 
 2.04 Annual Business Plan 
 On or before October 31 of each Fiscal Year of the Company, commencing on
October 31, 2007, the Operating Member shall submit a new annual business plan for the ensuing Fiscal Year for the review and approval of the Management Committee (the initial and each new business plan, as approved, being the “Annual
Business Plan”). Each Annual Business Plan shall include, without limitation: (i) a narrative description of the proposed objectives and goals for the Company, which shall include for such Fiscal Year (without limitation), any proposed
sale or refinancing of the Project; (ii) the status of the Project; (iii) a property management and leasing plan for the Project for such Fiscal Year; and (iv) such other items as are requested by any representative of the Management
Committee or as otherwise reasonably necessary to keep the Management Committee informed as to the business and affairs of the Company and the Project. 
 2.05 Operating Budget 
 Attached hereto as Exhibit C is the annual operating budget for
the Company for the remainder of the 2007 Fiscal Year. On October 31 of each Fiscal Year of the Company commencing on October 31, 2007, the Operating Member shall submit a new annual operating budget for the Company for the ensuing Fiscal
Year for the review and approval of the Management Committee (the initial and each new annual operating budget, as approved, being the “Operating Budget”). Each Operating Budget shall set forth on a detailed itemized basis:
(i) all receipts projected for the period of such Operating Budget and all expenses, by category, for the Company (including, without limitation, all repairs and capital expenditures projected to be incurred during such period), (ii) the
anticipated operating reserves and working capital projected to be required for such period, (iii) a schedule setting forth the timing and amount of any Additional Contributions projected to be required by the Members for such Fiscal Year (or
other period); and (iv) a five (5)-year projection setting forth the estimated revenues, expenses and net operating income (or loss) expected to be incurred for the next five (5) years for the Company which shall be updated to compare
the actual results to the projected results set forth in the prior Operating Budget. The Operating Budget shall also include a detailed description of such other information, contracts, agreements and other matters reasonably necessary to inform the
Management Committee of all matters relevant to the ownership, operation, management, maintenance, leasing and sale of the Project (or any portion thereof) or as may be reasonably requested by any representative of the Management Committee. Except
as otherwise expressly set forth herein, the Operating Member shall only have the authority to incur the costs and expenditures set forth in an approved Operating Budget (subject to the ability to apply line item cost 

  

 10 

 
savings, contingency line item amounts, budget variances, etc., if any, contained in such Operating Budget, as and if so permitted by the parameters of such
Operating Budget), without any further approval of the Management Committee (or the Members). Except as otherwise provided within any Operating Budget, the Operating Budget may not be increased without the prior approval of the Management Committee.

 2.06 Removal of the Operating Member 
 (a) Upon Removal Event. Upon the occurrence of a Removal Event, the Management Committee shall have the right to remove Lippert Management as the Operating Member of the Company by delivering written notice
(“Removal Notice”) thereof at any time following the occurrence of a Removal Event in accordance with the provisions of this Section 2.06. As used herein, the term “Removal Event” means the occurrence of
any of the Buy-Sell Events set forth in Section 7.01 with respect to which the Operating Member is the Defaulting Member (regardless of whether Paladin, as the Non-Defaulting Member, exercises any of its rights under Article 7 in
connection therewith). Any removal of Lippert Management as the Operating Member shall be effective upon the Effective Date of the Removal Notice relating to any Removal Event (or such later time as may be provided in the Removal Notice).

 (b) Effect of Removal Upon Removal Event. If Lippert Management is removed as the Operating Member of the Company pursuant to
Section 2.06(a), then (i) a Cash Flow Bonus Forfeiture Event shall exist for purposes of Sections 5.01(d) and 5.02(h), (ii) the Lippert Members shall retain the remaining portions of their respective Interests in the
Company (unless Paladin purchases such Interests as a result of the exercise of the Buy-Sell provisions set forth in Article 7), (iii) neither the Lippert Members nor their respective Affiliates shall be entitled to receive any further
fees to which they would otherwise be entitled pursuant to Section 2.12; and (iv) the Management Committee may, in its sole and absolute discretion, designate any person or entity as a replacement Operating Member or as a manager
who shall fulfill the duties and obligations of the Operating Member, that may be (but need not be) a Member of the Company (including, without limitation, Paladin (or any Affiliate thereof). From and after any such removal: (1) the replacement
Operating Member (and not Lippert Management or its Affiliates) shall be entitled to exercise all the rights, duties and obligations, and to receive any and all fees of the Operating Member under this Agreement, (2) Lippert Management shall
have no further obligations under Sections 2.03, 2.04 or 2.05, and (3) Lippert Management shall no longer have any right to appoint any representative to the Management Committee and any previously appointed representatives of Lippert
Management shall be replaced by one (1) or more representatives to be appointed by the Management Committee. In the event there is a dispute as to whether a Removal Event occurred, then Lippert Management shall cease to be the Operating Member
and shall no longer have any right to appoint any representative to the Management Committee, and, if it shall be later determined by a court of competent jurisdiction that a Removal Event did not occur, then Lippert Management shall be deemed to
have been terminated pursuant to Section 2.06(c). 
  

 11 

 (c) Other Removal. For any reason, the Management Committee may elect (in its sole and absolute
discretion) at any time, without cause and for any or no reason, to remove Lippert Management as the Operating Member and to designate any Person as a replacement Operating Member or as a manager who shall fulfill the duties and obligations of the
Operating Member, which election may be made by written notice to Lippert Management not less than fifteen (15) days prior to the effective date of such removal, provided that, the Management Committee agrees to meet and confer with
Lippert Management during such fifteen (15) day period, at the request of Lippert Management, in connection with such removal. In such event, Lippert Management (or its Affiliates, as applicable) shall: (i) have no further obligations
under Sections 2.03, 2.04 or 2.05, and (ii) otherwise retain its Interest in the Company, including its interests in the Net Income and Net Losses or similar items of, and to receive distributions from, the Company as provided in
Articles 4 and 5 of this Agreement. If Lippert Management is removed as Operating Member pursuant to this Section 2.06(c), then (A) any such replacement Operating Member shall not receive any additional fees or “carried
interest” or other profits interest in the Company unless such interest is paid from Paladin’s Interest in the Company and (B) Lippert Management may elect, by written notice to Paladin within thirty (30) days after the effective
date of such removal, to require Paladin to purchase 100% of the Lippert Members’ Interests in accordance with the procedures set forth in the last two sentences of Section 7.02, and in Section 7.03(a), (b) and
(d) and Section 7.05, Section 7.06, Section 7.07, Section 7.08 and Section 7.10 as if a Lippert Member were a Defaulting Member as a result of one of the Buy-Sell Events referenced in
Section 7.01(e)-(g) and the Lippert Members were the Selling Member and Paladin the Purchasing Member under such provisions of this Agreement (but in such case the provisions of clause (iv) of Section 7.03(a) shall not
apply). If Lippert Management fails to make such election by written notice to Paladin at or before the end of such thirty (30) day period, then Lippert Management shall be deemed to have waived its rights under clause (B) immediately
above. In addition, if Lippert Management is removed as Operating Member pursuant to this Section 2.06(c), then Paladin shall use its reasonable efforts to obtain written releases of the Lippert Members (and their respective Affiliates)
from all guarantees of liabilities of the Company previously executed by the Lippert Members (and its Affiliates). To the extent such releases cannot be obtained by Paladin, Paladin shall indemnify, defend, protect and hold the Lippert Members (and
such Affiliates) wholly free and harmless from and against any and all claims, liabilities, causes of action, liens, charges, and all other matters arising from such liabilities or guarantees, arising subsequent to the Effective Date of such
removal. 
 (d) Contracts. If Lippert Management is removed as the Operating Member (whether pursuant to either Section 2.06(a)
or Section 2.06(c)), then Paladin (acting alone and outside of the Management Committee), on behalf of the Company, shall also have the right to terminate Lippert Management’s right to provide the services provided for in
Section 2.12 and to terminate any other agreement between the Company and Lippert Management or any Affiliate of either the Lippert Members (including, without limitation, the Property Management Agreement described in
Section 2.12), without penalty. If Lippert Management is removed as the Operating Member pursuant to Section 2.06(c) and Paladin elects to terminate Lippert Management’s (or its Affiliate’s) right to provide the
services provided for in Section 2.12 or to terminate any 

  

 12 

 
contract between the Company and Lippert or an Affiliate of either of the Lippert Members, then the Company shall be obligated to engage a third party other
than an Affiliate of Paladin to undertake the services previously provided by Lippert Management or the Affiliate of Lippert Members and which were terminated. If Lippert Management is removed as the Operating Member pursuant to
Section 2.06(a) as a result of the occurrence of a Removal Event, then the Company may engage either an Affiliate of Paladin or a third party to complete the services that were being provided under the terminated contract or other
arrangement. 
 2.07 Liability and Indemnity 
 (a) Indemnification. Except as otherwise expressly provided in this Agreement, no Member, officer of the Company, representative on the Management Committee or other authorized representative of the Company
(each, an “Indemnified Party”) shall be liable or accountable in damages or otherwise to the Company or to the other Members for any error of judgment or any mistake of fact or law or for anything that such Indemnified Party may do
or refrain from doing hereafter, except in the case of fraud, willful misconduct or gross negligence in performing or failing to perform such Indemnified Party’s duties for the Company. To the maximum extent permitted by law, the Company hereby
indemnifies, defends, protects and agrees to hold each Indemnified Party wholly harmless from and against any and all loss, expense or damage suffered by such Indemnified Party by reason of anything which such Indemnified Party may do or refrain
from doing hereafter for and on behalf of the Company and in furtherance of its interest; provided, however, (i) no Indemnified Party shall be indemnified, defended, protected or held harmless from any loss, cost, expense or damage which
such Indemnified Party may suffer as a result of such Indemnified Party’s fraud, willful misconduct or gross negligence in performing or in failing to perform such Indemnified Party’s duties for the Company, and (ii) any such
indemnity shall be recoverable only from the assets of the Company. The provisions of this Agreement, to the extent that they restrict the duties and liabilities of a Member (or representative thereof) otherwise existing at law or in equity, are
agreed by the Members to replace such duties and liabilities of such Member (or such representative). 
 (b) No Third Party
Beneficiaries. The provisions of this Section 2.07 are for the benefit of the Indemnified Parties and shall not be deemed to create any rights for the benefit of any other Person. 
 (c) Survival. The provisions of this Section 2.07 shall survive the termination of this Agreement. 
 2.08 Limited Liability 
 Except
as otherwise required hereunder or pursuant to any non-waivable provision of the Delaware Act, the debts, obligations and liabilities of the Company, whether arising in contract, tort or otherwise, shall be solely the debts, obligations and
liabilities of the Company, and the Members shall not be obligated personally for any such debt, obligation or liability of the Company solely by reason of being a Member of the Company. 
  

 13 

 2.09 Other Activities 
 Lippert Management, as the Operating Member, agrees to carry out the business and affairs of the Company in accordance with the terms and conditions of
this Agreement and shall devote all such time to the Company as is necessary for the efficient operation of the business and affairs of the Company. Except as otherwise provided in Section 2.11 of this Agreement or any Operating Budget,
or as otherwise approved by the Management Committee, the Operating Member shall not be paid any compensation by the Company for providing such services to the Company. No Member shall have any obligations (fiduciary or otherwise) with respect to
the Company or to the other Member insofar as making other investment opportunities available to the Company or to the other Members. Each Member may engage in whatever activity such Member may choose without having or incurring any obligation to
offer any interest in such activity to the Company or to the other Members. 
 2.10 Brokers Indemnity 
 Each Member represents and warrants that it has not dealt with any broker or agent in connection with this Agreement or the relationship contemplated
hereby, and each Member hereby agrees to indemnify, defend, protect and hold the other Member and the Company wholly harmless from and against any and all liability, loss, cost, damage and expense (including without limitation, attorneys’ fees
and costs) which the other Member or the Company may suffer or incur by reason of any claim by any broker or agent for any compensation with respect to such indemnifying Member’s dealings in connection with this Agreement or the transactions
described herein. 
 2.11 Reimbursement; Compensation 
 (a) Compensation. Except as otherwise expressly provided in this Agreement or as provided in any applicable Operating Budget, no Member or any
constituent partner, member, shareholder, officer, director, employee, agent, representative or Affiliate thereof shall receive any remuneration for services rendered to or in connection with the Company or be reimbursed for general administrative
and overhead expenses. 
 (b) Reimbursement of Expenses. Notwithstanding the foregoing: (i) each Member shall be reimbursed from
the initial contributions made by the Members pursuant to Section 3.01 for any and all costs (including legal fees) reasonably and actually incurred by such Member in connection with the transactions contemplated herein (including the
formation of the Company, and the negotiation and documentation of this Agreement), and (ii) each Member and its representatives shall be reimbursed for any out-of-pocket travel and other costs and expenses reasonably and actually incurred in
connection with the business and affairs of the Company, but such reimbursement shall not include any costs or charges for time expended by any Member’s employees or other representatives or overhead costs of any Member. 
  

 14 

 2.12 Property Management 
 C.R.E.S. Management, L.L.C., a Missouri limited liability company, which is an Affiliate of Lippert Management, initially shall be the Property Manager of
the Project and shall manage and operate the Project in accordance with a Property Management Agreement between the Company and such Property Manager in the form approved by the Management Committee (the “Property Management
Agreement”). The Property Management Agreement shall provide for (i) an initial one year term with automatic one year renewals, (ii) termination by either the Company or the Property Manager upon not less than thirty
(30) days prior written notice or upon a sale of the Project, and (iii) a management fee payable monthly, in arrears, to the Property Manager with respect to the Project equal to five percent (5%) of the monthly gross revenues from
the Project; provided, however, that if during any month for which such management fee is due and payable, there is insufficient Cash Flow to fund payment to Paladin of its Unpaid Preferred Return accrued and owing through the end of such
month, then a portion of the management fees payable to the Property Manager for such month up to, but not exceeding, two and one half percent (2.5%) of the monthly gross revenues of the Project for such month shall be deferred by the Property
Manager and paid to Paladin to the extent (but only to the extent) of its Unpaid Preferred Return (collectively, the “Deferred Management Fees”) and shall be paid to the Property Manager only from available Cash Flow pursuant to
Section 5.01(b) and Section 5.02(a). All amounts paid to the Property Manager as management fees (including Deferred Management Fees) shall be treated as amounts paid to a person other than a Member as described in
Section 707(a) of the Code. In addition to the fees payable as provided above in this Section 2.12, upon the execution of this Agreement, the Company shall pay to Lippert Management or its Affiliate a one-time due diligence
fee in the amount of $20,000. 
 ARTICLE 3 
 MEMBERS’ CAPITAL CONTRIBUTIONS 
 3.01 Initial Contributions of the Members 

 (a) Initial Capital Contributions. Simultaneously with the execution of this Agreement, the Members have contributed to the Company
in cash their respective Initial Capital Contributions in the amounts shown on Exhibit A hereto. 
 (b) Credit to Capital
Accounts. Any and all Capital Contributions made by each Member pursuant to this Section 3.01 and Sections 3.02 and 3.03 shall be credited to the Capital Account and Unrecovered Contribution Account of each such Member as of
the date any such Capital Contribution is made. 
  

 15 

 3.02 Additional Contributions 
 (a) Need for Contributions. Except as otherwise required by law or pursuant to this Section 3.02 or Section 3.03, no Member
shall be required or permitted to make any additional capital contributions to the Company. 
 (b) Required Additional Contributions.
From time to time, the Management Committee may require the Members to make Additional Contributions to the capital of the Company pursuant to this Section 3.02(b) in connection with the Project to fund Project Shortfalls by delivering
written notice (“Contribution Notice”) of such Additional Contribution to the Members, which Contribution Notice shall include a contribution date (“Contribution Date”) (which date shall not be less than fifteen
(15) Business Days following the Effective Date of such notice), upon which Contribution Date each Member shall be obligated to contribute to the capital of the Company its pro rata share of such Additional Contribution (measured by such
Member’s Contribution Percentage). 
 3.03 Remedy For Failure to Contribute Capital 
 (a) Failure to Contribute. If any Member (the “Non-Contributing Member”) fails timely to make all or any portion of any Additional
Contribution such Member is required to contribute pursuant to Section 3.02 (the “Delinquent Contribution”) and such failure continues for five (5) days following the Effective Date of notice thereof from the other
Member, such other Member (the “Contributing Member”), in addition to any and all other remedies available to the Contributing Member under this Agreement or otherwise at law or in equity (including, without limitation, instituting
a legal proceeding to collect the Delinquent Contribution), shall have the right, but not the obligation, to proceed in accordance with the terms and conditions set forth below in this Section 3.03 and, in addition, if either of the
Lippert Members is the Non-Contributing Member, a Cash Flow Bonus Forfeiture Event shall exist for purposes of Sections 5.01(d) and 5.02(h). For purposes of this Section 3.03, the Lippert Members shall be treated collectively as
one party and shall act as one Member (and shall be either the Contributing Member or the Non-Contributing Member, as the case may be) and any increases or decreases in their Percentage Interests shall be allocated between them pro rata, in
proportion to their Percentage Interests at such time. 
 (b) Default Loan. The Contributing Member may advance to the Company, in
cash, within thirty (30) days following the Contribution Date, an amount equal to the Delinquent Contribution, and such advance by the Contributing Member shall be treated as a non-recourse loan by the Contributing Member to the
Non-Contributing Member (a “Member Loan”), bearing interest at a rate equal to the lesser of the then current prime rate as most recently reported by the Western Edition of the Wall Street Journal, plus five percentage
points, adjusted and compounded concurrently with any adjustments to such prime rate, or the maximum, nonusurious rate then permitted by applicable law for such loans. Each Member Loan shall be due and payable upon the earlier of six
(6) months from the date such Member Loan is advanced or the dissolution of the Company. If Paladin is the Contributing Member, then both Members shall take 

  

 16 

 
all actions and execute all documents (including a written promissory note evidencing the obligation of the Non-Contributing Member) necessary to ensure that
the obligation meets the “straight debt safe harbor” described in Section 856(m) of the Code. 
 As of the Effective Date of
any advance of a Member Loan, the Non-Contributing Member shall be deemed to have contributed an amount equal to the principal amount of such Member Loan to the capital of the Company, and the Capital Account and Unrecovered Contribution Account of
the Non-Contributing Member shall be credited with a like amount. Notwithstanding the provisions of Articles 5 and 8, until any and all Member Loans are repaid in full, the Non-Contributing Member shall draw no further distributions from the
Company, and all cash or property otherwise distributable with respect to the Non-Contributing Member’s Interest (or fees payable to the Non-Contributing Member or any of its Affiliates, excluding, however, any fees payable under
Section 2.12) shall be distributed to the Contributing Member in repayment of the outstanding balance of the Member Loan, with such funds being applied first to reduce any and all interest accrued on such Member Loan and then to reduce
the principal amount thereof. Any amounts so applied shall be treated, for all purposes under this Agreement, as having actually been distributed to the Non-Contributing Member and applied by the Non-Contributing Member to repay the outstanding
Member Loan. 
 If, upon the maturity of a Member Loan (taking into account any agreed upon extensions thereof), any principal thereof or
accrued interest thereon remains outstanding, the Contributing Member shall elect one of the following options: (i) to renew such Member Loan (or portion thereof) pursuant to the terms and provisions of this Section 3.03(b) for an
additional term of six (6) months; (ii) to contribute all or any portion of such outstanding principal of and accrued, unpaid interest on such Member Loan (or portion thereof) to the capital of the Company and dilute the Percentage
Interest of the Non-Contributing Member in accordance with the provisions of Section 3.03(c); or (iii) elect to exercise the buy-sell provisions contained in Article 7 in accordance with the provisions of Sections
3.03(c) and (d), in which event the Member Loan shall remain in effect until the closing of the buy-sell transaction contemplated under Article 7. The Contributing Member may elect any of the options set forth in the immediately preceding
sentence by giving written notice of such election to the Non-Contributing Member within thirty (30) days prior to such maturity date of the Member Loan. Failure of the Contributing Member to timely give such written notice to the
Non-Contributing Member shall be deemed to constitute an election to renew such Member Loan for an additional term of six (6) months on the terms set forth herein. 
 (c) Dilution. The Contributing Member may contribute to the capital of the Company, in cash, within thirty (30) days following the Contribution Date, an amount equal to the Delinquent Contribution, and the
Capital Account and Unrecovered Contribution Account of the Contributing Member shall be credited with the amount so contributed. In the alternative, if the Contributing Member elected to make a Member Loan, then upon the maturity of a Member Loan
that is not fully repaid on or before the maturity date thereof, the Contributing Member also may contribute to the capital of the Company, in accordance with the provisions of Section 3.03(b) above, all or any portion of the outstanding
principal of and accrued, unpaid interest on such Member Loan (or 

  

 17 

 
portion thereof) and (i) the amount of such outstanding principal and interest so contributed shall be deemed repaid and satisfied, (ii) the amount
of such outstanding principal and interest shall be deemed to have been distributed to the Non-Contributing Member, and debited from the Capital Account and Unrecovered Contribution Account of the Non-Contributing Member, and (iii) the Capital
Account and Unrecovered Contribution Account of the Contributing Member shall be increased by the amount of such outstanding principal and interest so contributed. 
 Upon the contribution of any Delinquent Contribution (or the contribution of the principal and interest of any Member Loan by the Contributing Member pursuant to this Section 3.03(c)), the Percentage
Interest (but not the Contribution Percentage) of the Non-Contributing Member shall be decreased by the Dilution Percentage. The “Dilution Percentage” shall equal the amount expressed in percentage points (rounded to the nearest
one-hundredth of a percentage point) calculated based upon the following formula: 
  

					
		    		    	Delinquent Contribution (or the outstanding balance of any Member Loan (including interest)) contributed by the Contributing Member
	Dilution Percentage = 200%	    	x	    	  

		    		    	Aggregate amount of the balances standing in all of the Members’ respective Unrecovered Contribution Accounts (including the Additional Contribution contributed by the Contributing
Member(s) and the Delinquent Contribution or the outstanding balance of any Member Loan (including interest) contributed by the Contributing Member)

 The Percentage Interest, but not the Contribution Percentage, of the Contributing Member shall be
increased by the amount of the reduction in the Percentage Interest of the Non-Contributing Member. 
 The application of the provisions of
this Section 3.03(c) is illustrated by the following example: Assume that (i) the Unrecovered Contribution Amount of the Members was equal to $4,000,000, (ii) an Additional Contribution of $200,000 was required to be
contributed by the Members to the capital of the Company, (iii) the Non-Contributing Member whose aggregate Percentage Interest is 2.5% failed to contribute its share of such contribution of $5,000 (i.e., 2.5% x $200,000), and
(iv) pursuant to this Section 3.03(c), the Contributing Member whose Percentage Interest is 97.5% made the Delinquent Contribution of $5,000 to the capital of the Company on behalf of such Non-Contributing Member pursuant to this
Section 3.03(c). 
 The Dilution Percentage applicable to the Non-Contributing Member would be equal to 0.24 percentage points as
calculated in accordance with the following formula: 
  

												
		  		  		  	$	5,000	  		  	
		  		  		  	 	 	  		  	
		  	 0.24% = 200%
	  	x	  	$	4,200,000	  		  	

  

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 The Percentage Interest of the Non-Contributing Member therefore would be reduced by 0.24 percentage points from 2.5% to
2.26%, and the Percentage Interest of the Contributing Member would be increased by a like amount of percentage points from 97.5% to 97.74%. 
 The Contribution Percentages of the Members would not be adjusted as a result of the foregoing dilution. 
 (d) Implementation of
Buy-Sell. In addition to the options set forth in Sections 3.03(b) and 3.03(c) above, the Contributing Member may elect to implement the buy-sell provisions contained in Article 7 for a Default Buy-Sell Event by delivery of
written notice of such election to the Non-Contributing Member in accordance with the provisions thereof (and in which case the Non-Contributing Member shall be deemed to be the Defaulting Member and the Contributing Member shall be deemed to be the
Non-Defaulting Member for purposes of Article 7); provided, however, that if the Contributing Member so elects to implement the buy-sell provisions contained in Article 7 and the Contributing Member also exercises its rights
under Section 3.03(c), then in computing the Dilution Percentage in Section 3.03(c) in connection with the contribution of the Delinquent Contribution or any portion of the outstanding principal of and/or accrued, unpaid interest on
any Member Loan that is the subject of the Default Buy-Sell Event, the 200% number used in the dilution formula in Section 3.03(c) above shall be 100%. 
 (e) Application of Provisions. Any and all adjustments to the Non-Contributing Member’s Percentage Interest shall be rounded to the nearest .01% and (except as provided otherwise in the first paragraph of
Section 3.03(b)) the Contributing Member shall not succeed to all or any portion of the Capital Account or Unrecovered Contribution Account of the Non-Contributing Member as the result of any such adjustment. In addition, notwithstanding
any provision contained in this Article 3, the Non-Contributing Member’s Percentage Interests shall in no event be reduced below .01% by operation of Section 3.03(d). As a result of any contribution to the capital of the
Company pursuant to this Section 3.03, the Contributing Member shall have the right, but not the obligation, to cause the Capital Accounts of the Members to be booked-up or booked-down in accordance with the provisions of Treasury
Regulation Section l.704-l(b)(2)(iv)(f) to reflect the fair market value of the Company’s assets (as reasonably determined by the Contributing Member) at the time of such contribution. 
 3.04 Debt Financing 
 The
Members acknowledge that the Management Committee may cause the Company to obtain debt financing from one or more third-party lenders in order to fund all or any portion of any actual or projected financial requirements of the Company or in
connection with other costs that may be incurred by the Company. Any such financing shall be obtained on the best available market rates and terms, all as determined in the sole and absolute discretion of the Management Committee. In connection with
obtaining any financing, it is expected that the Lippert Members and their respective 

  

 19 

 
Affiliates shall provide such repayment and “carve-out” guarantees that are customarily requested, and on such terms and conditions as are
customarily requested, by lenders with respect to similar projects of similar size, type and location. Paladin shall not be required to personally guarantee any financing obtained by the Company. 
 3.05 Loans from Members 
 The
Management Committee may elect, in its discretion, to cause the Members to fund Project Shortfalls and other financial requirements of the Company as loans to the Company in lieu of making Additional Contributions to the Company, on such terms and
conditions as it shall determine from time to time. 
 3.06 Capital Contributions in General 
 Except as otherwise expressly provided in this Agreement, (i) no part of the contributions of any Member to the capital of the Company may be
withdrawn by such Member, (ii) no Member shall be entitled to receive interest on such Member’s contributions to the capital of the Company, (iii) no Member shall have the right to demand or receive property other than cash in return
for such Member’s contributions to the Company, and (iv) no Member shall be required or be entitled to contribute additional capital to the Company other than as permitted or required by this Article 3. 
 ARTICLE 4  
 ALLOCATION OF
PROFITS AND LOSSES 
 4.01 Allocation of Net Profits and Net Losses 
 (a) Net Profits. After application of Sections 4.02 and 4.03, Net Profits for each Fiscal Year shall be allocated among the Members in the
following order and priority: 
 (i) first, to the Members, in proportion to and to the extent of the amounts necessary to
cause the cumulative allocations of Net Profits to each Member under this Section 4.01(a)(i) for the current and all prior Fiscal Years to equal the cumulative allocations of Net Losses to such Member pursuant to
Section 4.01(b)(iv) hereof; 
 (ii) second, to Paladin, until the balance of Paladin’s Capital Account (as of
the last day of such Fiscal Year, but adjusted to reflect any Net Profits for such Fiscal Year allocated to Paladin pursuant to Section 4.01(a)(i) and Section 4.02 and 4.03 hereof) equals Paladin’s 12% IRR Amount (as of
the last day of such Fiscal Year); 
 (iii) third, to the Lippert Members, in proportion to and to the extent of the amounts
that would cause the balances of each of the Lippert 

  

 20 

 
Members’ Capital Accounts (as of the last day of such Fiscal Year, but adjusted to reflect any Net Profits for such Fiscal Year allocated to such
Lippert Member pursuant to Section 4.01(a)(i) and Section 4.02 and 4.03 hereof) to equal such Lippert Member’s 12% IRR Amount (as of the last day of such Fiscal Year); 
 (iv) fourth, subject to Section 4.03(b), 50% to Paladin, and 50% to the Lippert Members, pro rata, in proportion to their
respective Percentage Interests. 
 For purposes of determining the amount of Net Profits to be allocated pursuant to Section 4.01(a)(ii)
and (iii) for any Fiscal Year, the Capital Account of each Member shall be increased by such Member’s share of “partnership minimum gain” as of the last day of such Fiscal Year, determined pursuant to Section 1.704-2(g)(1)
of the Regulations, and by such Member’s share of “partner nonrecourse debt minimum gain” as of the last day of such Fiscal Year, determined pursuant to Section 1.704-2(i)(5) of the Regulations.  
 (b) Net Losses. After application of Sections 4.02 and 4.03, Net Losses for each Fiscal Year shall be allocated among the Members in the
following order and priority: 
 (i) first, 50% to Paladin, and 50% to the Lippert Members, pro rata, in proportion to their
respective Percentage Interests, until the cumulative Net Losses allocated to each Member under this Section 4.01(b)(i) for the current and all prior Fiscal Years equal the excess, if any, of (A) the cumulative Net Profits allocated
to such Member pursuant to Section 4.01(a)(iii) for all prior Fiscal Years, over (B) the cumulative distributions to such Member pursuant to Section 5.02(h); 
 (ii) second, to the Lippert Members, in proportion to and to the extent of the amounts that would cause the Capital Accounts of each
Lippert Member to equal zero; 
 (iii) third, to Paladin, until Paladin’s Capital Account equals zero; 
 (iv) fourth, to the Members, in proportion to their Percentage Interests. 
 For purposes of determining the amount of Net Losses to be allocated pursuant to Section 4.01(b)(ii) and (iii) for any Fiscal Year, the Capital Account of each Member shall be increased by such
Member’s share of “partnership minimum gain” as of the last day of such Fiscal Year, determined pursuant to Section 1.704-2(g)(1) of the Regulations, and by such Member’s share of “partner nonrecourse debt minimum
gain” as of the last day of such Fiscal Year, determined pursuant to Section 1.704-2(i)(5) of the Regulations.  
 (c)
Net Loss Limitation. Notwithstanding anything in this Agreement to the contrary, no Member shall be allocated Net Losses under Section 4.01(b) to the 

  

 21 

 
extent such allocation would cause or increase an Adjusted Capital Account deficit for such Member as of the last day of the Fiscal Year to which such
allocation relates. Any amounts not allocated to a Member pursuant to the limitation set forth in the preceding sentence shall be allocated to the other Members in proportion to and to the extent that such allocations would not cause them to have,
or increase their, Adjusted Capital Account deficits. Any remaining Net Losses shall be allocated among the Members in proportion to their then-current respective Percentage Interests. This provision is intended to ensure that allocations of Net
Losses have economic effect pursuant to Treas. Reg. §1.704-1(b)(2)(ii)(d) and shall be interpreted consistently therewith. 
 4.02
Regulatory Allocations 
 Prior to making any allocations pursuant to Sections 4.01 or 4.03 hereof, the following special
allocations shall be made each Fiscal Year, to the extent required, in the following order: 
 (a) Minimum Gain
Chargebacks. Items of Company income and gain shall be allocated for any Fiscal Year to the extent, and in an amount sufficient to satisfy the “minimum gain chargeback” requirements of Treasury Regulation Sections 1.704-2(f) and
(i)(4). 
 (b) Qualified Income Offset. Items of Company income and gain shall be allocated any Fiscal Year to the
extent, and in an amount sufficient to satisfy the “qualified income offset” requirements of Treasury Regulation Section 1.704-1(b)(2)(ii)(d)(3). 
 (c) Member Nonrecourse Deductions. Member Nonrecourse Deductions shall be allocated to the Member who bears the economic risk of
loss associated with such deductions, in accordance with Treasury Regulations Section 1.704-2(i). 
 (d) Nonrecourse
Deductions. Nonrecourse Deductions for any Fiscal Year shall be allocated among the Members in accordance with their Percentage Interests. 
 (e) Section 754 Adjustments. To the extent an adjustment to the adjusted tax basis of any Company asset pursuant to Sections 734(b) or 743(b) of the Code is required, pursuant to Treasury Regulation
Section 1.704-1(b)(2)(iv)(m) to be taken into account in determining Capital Accounts, the amount of such adjustment to the Capital Accounts shall be treated as an item of gain (if the adjustment increases the basis of the asset) or loss (if
the adjustment decreases such basis) and such gain or loss shall be specially allocated to the Members in accordance with the requirements of Treasury Regulation Section 1.704-1(b)(2)(iv)(m). 
 (f) Curative Allocations. The allocations set forth in Section 4.01(c) and 4.02(a) through (e) (the “Regulatory
Allocations”) are intended to comply 

  

 22 

 
with certain requirements of Treasury Regulation Sections 1.704-1(b) and 1.704-2. The Regulatory Allocations may affect results which would be inconsistent
with the manner in which the Members intend to divide Company distributions. Accordingly, Paladin authorized to specially allocate items of income, gain, loss or deduction which otherwise would be included in the computation of Net Profits and Net
Losses and other items among the Members, to the extent that they exist, so that, to the extent possible, the cumulative net amount of allocations of Company items under Sections 4.01, 4.02, and 4.03 hereof shall be equal to the net amount
that would have been allocated to each Member if the Regulatory Allocations had not occurred. Paladin will have discretion to accomplish this result in any reasonable manner that is consistent with Section 704 of the Code and the related
Regulations. 
 4.03 Special Allocation 
 (a) After giving effect to the allocations provided for in Section 4.02 hereof, items of gross income or gain shall be specially allocated for each Fiscal Year to the Members in proportion to and to the
extent of the excess of (A) the cumulative amounts distributed to each Member pursuant to Sections 5.01(a), (c), and (d) for the current and all prior Fiscal Years, over (B) the cumulative amounts allocated to each Members
pursuant to this Section 4.03(a) for all prior Fiscal Years; and 
 (b) Appropriate adjustments shall be made to the allocations
provided for in Section 4.01 hereof if a Cash Flow Bonus Forfeiture Event has existed at any time during the life of the Company, or if the Percentage Interests of the Members change pursuant to Section 3.03(c). 

4.04 Other Allocation Rules 
 (a) Tax/Book Differences. In the event that any Company property has a book value which differs from the adjusted tax basis of such property, then allocations with respect to such property for income tax purposes shall be made in a
manner which takes into consideration differences between such book value and such adjusted tax basis in accordance with Section 704(c) of the Code, the Treasury Regulations promulgated thereunder and Treasury Regulation
Section 1.704-1(b)(2)(iv)(f)(4). Such allocations for income tax purposes shall be made using the traditional method or such other method as may be agreed to by the Members. Such tax allocations shall neither affect, nor in any way be taken
into account in computing, any Member’s Capital Account or share of Net Profits, Net Losses, other items, or distributions pursuant to any provision of this Agreement. 
 (b) Variations in Interests During any Fiscal Year. For purposes of determining the Net Profits, Net Losses, or any other items allocable to any
period, Net Profits, Net Losses, and any such other items shall be determined on a daily, monthly, interim closing of the books or other basis, as determined by the Management Committee using any permissible method under Section 706 of the Code
and the regulations promulgated thereunder. 
  

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 (c) Allocations of Items. Any allocation to a Member of Net Profit or Net Loss shall be treated as
an allocation to such Member of the same share of each item of income, gain, loss or deduction that is taken into account in computing Net Profit or Net Loss. Unless otherwise specified herein to the contrary, any allocation to a Member of items of
Company income, gain, loss, deduction or credit (or item thereof) shall be treated as an allocation of a pro rata portion of each item of Company income, gain, loss, deduction or credit (or item thereof). 
 ARTICLE 5  
 DISTRIBUTIONS

 5.01 Distribution of Ordinary Cash Flow 
 Subject to the provisions of Sections 5.03, 7.04 and 8.02, Ordinary Cash Flow realized by the Company shall be distributed to the Members as soon
as practicable following the Company’s receipt thereof in the following order of priority: 
 (a) First, to Paladin until
Paladin’s Unpaid Preferred Return has been reduced to zero; 
 (b) Second, unless a Cash Flow Bonus Forfeiture Event
exists, to the Property Manager until the Deferred Management Fee Account has been reduced to zero; 
 (c) Third, to the
Lippert Members, in proportion to and to the extent of the amounts necessary to cause each of the Lippert Member’s Unpaid Preferred Return to be reduced to zero; and 
 (d) Thereafter, seventy-five percent (75%) to Paladin and twenty-five percent (25%) to the Lippert Members, or if a Cash Flow
Bonus Forfeiture Event exists, to the Members pro rata in accordance with their respective Percentage Interests. 
 5.02 Distribution
of Extraordinary Cash Flow 
 Subject to the provisions of Sections 5.03, 7.04 and 8.02, Extraordinary Cash Flow realized by
the Company shall be distributed to the Members as soon as practicable following the Company’s receipt thereof in the following order of priority: 
 (a) First, unless a Cash Flow Bonus Forfeiture Event exists, to the Property Manager until the Deferred Management Fee Account has been reduced to zero; 
 (b) Second, to Paladin until Paladin’s Unpaid Preferred Return is reduced to zero; 
  

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 (c) Third, to Paladin until Paladin’s Unrecovered Contribution Account is reduced to
zero; 
 (d) Fourth, to Paladin until Paladin has received distributions under Section 5.01 and this
Section 5.02 in an amount equal to Paladin’s Threshold Return; 
 (e) Fifth, to the Lippert Members, in
proportion to and to the extent of the amounts necessary to cause each of the Lippert Member’s Unpaid Preferred Return to be reduced to zero; 
 (f) Sixth, to the Lippert Members, in proportion to and to the extent of the amounts necessary to cause each of the Lippert Member’s Unrecovered Contribution Account to be reduced to zero; 
 (g) Seventh, to the Lippert Members, in proportion to and to the extent of the amounts necessary to cause each of the Lippert Members to
have received distributions under Section 5.01 and this Section 5.02 in an amount equal to such Lippert’s Member’s Threshold Return; and 
 (h) Thereafter, fifty percent (50%) to Paladin and fifty percent (50%) to the Lippert Members, pro rata in accordance with their
respective Percentage Interests, or if a Cash Flow Bonus Forfeiture Event exists, to the Members pro rata in accordance with their respective Percentage Interests. 
 5.03 Limitations on Distributions 
 Notwithstanding any other provision contained in this
Agreement, the Company shall not make a distribution of Cash Flow (or other proceeds) to any Member if such distribution would violate any applicable provision of the Delaware Act or other applicable law. 
 5.04 In-Kind Distribution 
 Assets of the Company (other than cash) shall not be distributed in kind to the Members without the prior written approval of the Members. 
 5.05 Right to Withhold 
 The Management Committee, on behalf of the Company, shall withhold from any distribution such
amounts as are required to be withheld by the laws of any taxing jurisdiction (as determined in the sole and absolute discretion of the Management Committee). In addition, the Management Committee, on behalf of the Company shall withhold from any
distribution to any Member any amounts for which such Member (or any Affiliate thereof) may be liable or responsible to the Company, and shall apply such withheld amount to such liability or responsibility. All amounts so withheld shall be treated
as amounts distributed to the respective Member(s) on whose account the withholding was imposed. 
  

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 ARTICLE 6  
 RESTRICTIONS ON TRANSFERS OF COMPANY INTERESTS 
 6.01 Limitations on Transfer 

 Except as permitted pursuant to Section 6.02 below, no Member or assignee of a Member shall be entitled to sell, exchange,
assign, transfer, convey or otherwise dispose of, pledge, hypothecate, encumber or otherwise grant a security interest in, directly or indirectly, for value or no value, whether voluntary or involuntary (including by operation of law or other legal
or equitable proceedings) (collectively, “Transfer”), all or any part of such Member’s or assignee’s Interest, including, without limitation, Transfers of any economic interest, without the prior written consent of the
other Members, which consent may be granted or withheld in each such other Member’s sole discretion. Any attempted Transfer, or withdrawal by a Member in violation of the restrictions set forth in this Article 6 shall, unless this
provision is waived by the other Members (each acting in its sole and absolute discretion), be null and void ab initio and of no force or effect and, in addition to the other rights and remedies at law and in equity, any of the other Members shall
be entitled to injunctive relief enjoining the prohibited action. The Members expressly agree that damages at law would be an inadequate remedy for a breach or threatened breach of the Transfer restrictions set forth in this Agreement. 

6.02 Permitted Transfers 
 Notwithstanding the foregoing, any Member may Transfer all or any portion of such Member’s Interest to any of the following (collectively, “Permitted Transferees”) without complying with the provisions of
Section 6.01: 
 (a) In the case of Transfers by Paladin, (i) any Transfer of any direct or indirect Interest
in Paladin to any Affiliate of Paladin and (ii) any Transfer of a direct or indirect interest in Paladin Realty Income Properties, L.P. or the Paladin REIT to any Person; and 
 (b) In the case of Transfers by any Lippert Member, any Transfer of an interest in Lippert Management or Lippert Holdings to any Immediate
Family Member of James Lippert or Teresa Lippert upon the death or disability of James Lippert or Theresa Lippert. 
 Upon receipt by the
Management Committee of notice of such Transfer (along with a copy of the instrument(s) of transfer), any such Permitted Transferees shall receive and hold such Interest or portion thereof, subject to the terms of this Agreement (including
Article 4) and to the obligations hereunder of the transferor, and there shall be no further Transfer of such Interest (or economic interest) or portion thereof except to a Person to whom such Permitted Transferee could have transferred such
Interest (or economic interest) or portion thereof in accordance with this Section 6.02 had such Permitted Transferee originally been a Member or otherwise in accordance with the terms 

  

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of this Agreement. Notwithstanding any other provision contained herein, any Transfer described in this Section 6.02 shall be null and void ab
initio and of no force or effect if such Transfer would otherwise violate the provisions of Section 6.04. 
 6.03 Admission
of Substitute Members 
 If any Member Transfers such Member’s Interest to a transferee in accordance with Sections 6.01
or 6.02, then such transferee shall only be entitled to be admitted into the Company as a substitute Member if (i) the books and records of the Company are amended to reflect such admission; (ii) the Management Committee approves the
admission of such transferee (but only in the event of a transfer in accordance with Section 6.01) and approves the form and content of the instrument of transfer; (iii) the transferor and transferee named therein execute and
acknowledge such other instruments as the Management Committee may deem reasonably necessary to effectuate such admission; (iv) the transferee in writing accepts and adopts all of the terms and conditions of this Agreement, as the same may have
been amended; and (v) the transferor pays, as the Management Committee may reasonably determine, all reasonable expenses incurred in connection with such admission, including, without limitation, legal fees and costs. In the event of a Transfer
in part of a Member’s Interest under Section 6.02 and the admission of the transferee into the Company as a member, such transferee member shall be required to act together as one Person with the Person(s) holding the remainder of
the entire Interest as of the date of this Agreement from whence such transferee member’s interest originally derived. To the fullest extent permitted by law, any transferee of an Interest who does not become a substituted Member shall have no
right to require any information or account of the Company’s transactions, to inspect the Company books, or to vote on any of the matters as to which a Member would be entitled to vote under this Agreement. Any such transferee shall only be
entitled to share, as an assignee, in such Net Profits and Net Losses, to receive such distributions, and to receive such allocations of income, gain, loss, deduction or credit or similar items to which the transferor was entitled, to the extent
assigned. A Member that Transfers its Interest shall not cease to be a member of the Company until the admission of the transferee as a substituted member of the Company and, except as provided in the preceding sentence, shall continue to be
entitled to exercise, and shall continue to be subject to, all of the rights, duties and obligations of such Member under this Agreement. 
 6.04 Additional Restrictions on Transfer 
 Notwithstanding any other provision contained herein, unless the Management
Committee waives any applicable restriction set forth in this Section 6.04, any Transfer described in this Article 6 shall be null and void ab initio and of no force or effect if: (i) such Transfer requires the registration
of such Interest pursuant to, or otherwise directly or indirectly violates, any applicable federal or state securities laws; (ii) such transfer causes or will cause the Company to become a “Publicly Traded Partnership” as such term is
defined in Section 7704(b) of the Code; (iii) such Transfer results in a violation of applicable laws; (iv) such Transfer would, in the opinion of the Company’s counsel, cause the Company to cease to be classified as a
partnership for state and federal income tax purposes; (v) such Transfer is made to any Person lacking the legal power or capacity to own any Interest; or (vi) such Transfer causes an acceleration of any loan or debt instrument to which
the Company is a party. 
  

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 6.05 Paladin Purchase Option 
 (a) Grant of Option. The Lippert Members hereby grant to Paladin the right and option to purchase all of the Interests of the Lippert Members (the
“Purchase Option”) for the purchase price determined in accordance with Section 6.05(b) (the “Option Price”) and otherwise upon and subject to the following terms and conditions of this
Section 6.05. The Purchase Option may be exercised at any time and from time to time after the first anniversary of the date of this Agreement by written notice from Paladin to the Lippert Members (the “Option Notice”).

 (b) Option Price. For a period of thirty (30) days following the Effective Date of the Option Notice, the Members shall
attempt to agree upon the Option Price. If the Members are unable to agree on the Option Price within such thirty (30) day period, then the Option Purchase Price shall be determined in accordance with the provisions of the following provisions
of this Section 6.05. Within fifteen (15) days after the expiration of such thirty (30) day period, Paladin shall select one (1) Qualified Appraiser and shall notify the Lippert Members in writing of such selection. Within
fifteen (15) days following the Effective Date of such notice from Paladin, the Lippert Members (acting together as one Person) shall either agree to the Qualified Appraiser selected by Paladin or select a second (2nd) Qualified Appraiser
and give written notice to Paladin of the Person so selected. If either Paladin or the Lippert Members fail to appoint a Qualified Appraiser within the time period specified above and after the expiration of five (5) days following the
Effective Date of written demand that a Qualified Appraiser be appointed, the Qualified Appraiser duly appointed by the Member making such demand to appoint such Qualified Appraiser shall proceed to make the appraisal as herein set forth, and the
determination thereof shall be conclusive on all the Members. Thereafter the Qualified Appraiser or two (2) Qualified Appraisers shall determine the Appraised Value in accordance with the provisions of Section 7.03(b)(1)-(3). Within
thirty (30) days after such determination of the Appraised Value of the Company, the accountants regularly employed by the Company shall determine the Option Price, which shall be an amount equal to the amount of cash which would be distributed
to the Lippert Members pursuant to Section 5.02 if (i) the Company (including all of its assets) were sold (as applicable) for the Appraised Value thereof as of the Effective Date of the Option Notice (after deducting therefrom an
amount equal to reasonable and customary closing costs); (ii) the remaining liabilities of the Company were liquidated pursuant to Section 8.02(a); (iii) reasonable reserves were established for any contingent, conditional or
unmatured liabilities or obligations of the Company pursuant to Section 8.02(b); and (iv) the Company distributed any remaining amounts to the Lippert Members in accordance with the provisions of Section 5.02. Upon such
determination, the accountants regularly employed by the Company shall give each Member a notice thereof. 
 (c) Closing. The closing
of the purchase by Paladin of the Interests of the Lippert Members shall occur on or before the date that is thirty (30) days after the determination of the Option Price. Paladin shall pay the Option Price to the Lippert 

  

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Members, in cash, on the closing date, and at the closing, the Lippert Members shall execute such instruments of conveyance and make such representations and
warranties as Paladin shall reasonably request to deliver good title to all of the Interests of the Lippert Members, free and clear of all liens, pledges, encumbrances, security interests or restrictions of any kind whatsoever (other than
restrictions on transfer arising under federal and state securities laws). 
 6.06 Election; Allocations Between Transferor and
Transferee 
 Upon the Transfer of the Interest of any Member or the distribution of any property of the Company to a Member, the
Company may file, with the approval of the Management Committee, in its sole and absolute discretion, an election in accordance with applicable Treasury Regulations, to cause the basis of the Company property to be adjusted for federal income tax
purposes as provided by Sections 734 and 743 of the Code. 
 6.07 Partition 
 No Member shall have the right to partition any assets of the Company or any interest therein, nor shall a Member make an application or proceeding for a
partition thereto and, upon any breach of the provisions of this Section 6.07 by any Member, the other Member (in addition to all rights and remedies afforded by law or equity) shall be entitled to a decree or order restraining or
enjoining such application, action or proceeding. Upon the Transfer of all or any part of the Interest of a Member as hereinabove provided, Net Profits and Net Losses shall be allocated between the transferor and transferee on the basis of the
computation method which with the approval of the Management Committee, in its sole and absolute discretion, is in the best interests of the Company, provided such method is in conformity with the methods prescribed by Section 706 of the Code
and Treasury Regulation Section 1.706-1(c)(2)(ii). 
 6.08 Waiver of Withdrawal 
 No Member may voluntarily withdraw, resign or retire from the Company without the prior written consent of the Members, which consent may be granted or
withheld in each such Member’s sole and absolute discretion. Each Member hereby waives any and all rights such Member may have to withdraw or resign from the Company pursuant to the Delaware Act or otherwise and hereby waives any and all rights
such Member may have to receive the fair value of such Member’s Interest in the Company upon such withdrawal, resignation or retirement pursuant to the Delaware Act. No admission or withdrawal of a Member, whether in accordance with this
Agreement or otherwise, shall cause the dissolution of the Company except as otherwise provided in Section 8.01. Any purported admission, withdrawal or removal which is not in accordance with this Agreement shall be null and void and, in
addition to other rights and remedies at law and in equity, the other Member(s) shall be entitled to injunctive relief enjoining the prohibited action. The Members expressly acknowledge that damages at law would be an inadequate remedy for a breach
or threatened breach of the foregoing restrictions. 
  

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 ARTICLE 7  
 DEFAULT BUY-SELL AGREEMENT 
 7.01 Default Buy-Sell Events 
 For purposes of this Article 7, the following shall constitute “Default Buy-Sell Events”: 
 (a) Prohibited Withdrawal or Retirement. The withdrawal, retirement, or other cessation to serve as a Member of the Company by any
Member in violation of the terms of this Agreement; 
 (b) Default by the Operating Member. The fraud, willful
misconduct, gross negligence or Material Breach (which shall include the notice and cure provisions to the extent provided in the definition of Material Breach) by the Operating Member (or its representatives) in performing or failing to perform the
Operating Member’s duties and obligations under this Agreement; 
 (c) Prohibited Transfer or Encumbrance. Any
Transfer or encumbrance or attempted Transfer or encumbrance by any Member of such Member’s Interest contrary to the provisions of Article 6; 
 (d) Breach of Agreement. Any Material Breach (which shall include the notice and cure provisions to the extent provided in the definition of Material Breach) by any Member (except for the failure of any Member
to make an Additional Contribution required hereunder); 
 (e) Bankruptcy or Insolvency. The rendering, by a court with
appropriate jurisdiction, of a decree or order (i) adjudging a Member bankrupt or insolvent; or (ii) approving as properly filed a petition seeking reorganization, readjustment, arrangement, composition, or similar relief for a Member
under the federal bankruptcy laws or any other similar applicable law or practice, and if such decree or order referred to in this Section 7.01(e) shall have continued undischarged and unstayed for a period of sixty (60) days;

 (f) Appointment of Receiver. The rendering, by a court with appropriate jurisdiction, of a decree or order
(i) for the appointment of a receiver, a liquidator, or a trustee or assignee in bankruptcy or insolvency of a Member, or for the winding up and liquidation of a Member’s affairs, provided that such decree or order shall have remained in
force undischarged and unstayed for a period of ninety (90) days, or (ii) for the sequestration or attachment of any property of a Member without its return to the possession of such Member or its release from such sequestration or
attachment within ninety (90) days thereafter; and 
  

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 (g) Bankruptcy Proceedings. A Member (i) institutes proceedings to be
adjudicated a voluntary bankrupt or an insolvent, (ii) consents to the filing of a bankruptcy proceeding against such Member, (iii) is unable to or admits in writing such Member’s inability to pay such Member’s debts generally as
they become due, or (iv) files a petition or answer or consent seeking reorganization, readjustment, arrangement, composition, or similar relief for such Member under the federal bankruptcy laws or any other similar applicable law or practice,
(iv) consents to the filing of any such petition, or to the appointment of a receiver, a liquidator, or a trustee or assignee in bankruptcy or insolvency for such Member or a substantial part of such Member’s property, (v) makes an
assignment for the benefit of such Member’s creditors, or (vi) takes any action in furtherance of any of the aforesaid purposes. 
 For the purposes of implementing the provisions contained in this Article 7 and otherwise for purposes of this Agreement, (A) each of the events set forth in Sections 7.01(a)-(g) shall constitute a “Default
Buy-Sell Event”; (B) the “Defaulting Member” shall be (i) in the case of the occurrence of the event referenced in Section 7.01(a), the Member that has withdrawn, retired or ceased to serve as a Member
of the Company in violation of the terms of this Agreement; (ii) in the case of the occurrence of the event referenced in Section 7.01(b), the Operating Member; (iii) in the case of the occurrence of the event referenced in
Section 7.01(c), the Member that purports to undertake a Transfer of such Member’s rights or interests contrary to the provisions of Article 6; (iv) in the case of the occurrence of the event referenced in
Section 7.01(d), the Member that has breached any material covenant, duty or obligation under this Agreement; and (v) in the case of any of the events referenced in Section 7.01(e), (f), or (g), the Member who is the
subject of such court decree or order or has instituted such proceedings or filed such petitions or who is insolvent, etc; and (C) the “Non-Defaulting Member” is the Member that is not the Defaulting Member. In addition, for
purposes of implementing the provisions of this Article VII, a Default Buy/Sell Event with respect one of the Lippert Members shall constitute a Default Buy/Sell Event with respect to all of the Lippert Members, and with respect to any
Default Buy/Sell Event, the Lippert Members shall be treated and act collectively as one Member (and shall be either the Defaulting Member or the Non-Defaulting Member, as the case may be). 
 7.02 Rights Arising From a Default Buy-Sell Event 
 At any time following the occurrence of a Default Buy-Sell Event, the Non-Defaulting Member shall have the right (but shall not be obligated to) either to (i) cause the sale of the Company or its assets to any
unaffiliated third party for a purchase price based upon the sole and absolute judgment of the Non-Defaulting Member (“Third-Party Purchase Price,” as further set forth in Section 7.03(c)), and such other terms and conditions
as are determined in the sole discretion of the Non-Defaulting Member or (ii) purchase the Interest of the Defaulting Member in accordance with the terms and conditions set forth in this Article 7, in either case, by delivering written
notice (“Default Notice”) thereof to the Defaulting Member, or (iii) exercise any other rights or remedies available to the Non-Defaulting Member under this Agreement or at law or in equity as a result of such Default Buy-Sell
Event; provided, however, that the failure of 

  

 31 

 
the Non-Defaulting Member to exercise any of the foregoing rights shall not be deemed to constitute a waiver of any Default Buy-Sell Event or any rights and
remedies (and the provisions of Section 7.09 shall apply to the Defaulting Member). For a period of fifteen (15) days following the Effective Date of any Default Notice, the Members shall attempt to agree upon a purchase price for
the Defaulting Member’s Interest (the “Buyout Purchase Price”) in the event the Non-Defaulting Member desires to purchase the Interest of the Defaulting Member. If the Members are unable to agree on a Buyout Purchase Price,
then the Default Purchase Price shall be determined in accordance with the provisions of Section 7.03(a) based on the Appraised Value as determined pursuant to Section 7.03(b). 
 7.03 Determination of Purchase Price 
 (a) Member Buyout. Within thirty (30) days after the determination of the Buyout Purchase Price or, in the absence thereof, the determination of the Appraised Value of the Company pursuant to Section 7.03(b), the
accountants regularly employed by the Company shall determine the amount of cash which would be distributed to each Member pursuant to Section 5.02 if (i) the Company (including all of its assets) were sold (as applicable) for the
Buyout Purchase Price or Appraised Value thereof (as applicable) as of the Effective Date of the Default Notice (after deducting therefrom an amount equal to reasonable and customary closing costs); (ii) the remaining liabilities of the Company
were liquidated pursuant to Section 8.02(a); (iii) reasonable reserves were established for any contingent, conditional or unmatured liabilities or obligations of the Company pursuant to Section 8.02(b); (iv) if
(and only if) the Defaulting Member is a Lippert Member, a Cash Flow Bonus Forfeiture Event existed for purposes of Sections 5.01(d) and 5.02(h); and (v) the Company distributed any remaining amounts to the Members in accordance with the
provisions of Section 5.02. Upon such determination, the accountants regularly employed by the Company shall give each Member a notice thereof (the “Price Determination Notice”). The determination by the accountants of
such amounts, including all components thereof, shall be deemed conclusive absent any material computational error. If the Non-Defaulting Member purchases the Interest of the Defaulting Member, ninety percent (90%) of the amount that would be
distributed to the Defaulting Member pursuant to clause (v) above shall be deemed to be the “Default Purchase Price” for purposes of this Article 7; provided, however, that if the Buy-Sell Event applicable to the
Defaulting Member is not one of the Buy-Sell Events referenced in Sections 7.01(a), (b), (c) or (d), then one hundred percent (100%) of the amount that would be distributed to the Defaulting Member pursuant to clause (v) above
shall be deemed to be the “Default Purchase Price” for purposes of this Article 7. 
 (b) Determination of
Appraised Value. For purposes of this Article 7 and Section 6.05, the appraised value (“Appraised Value”) of the assets of the Company shall be determined by one (1) or more independent Qualified
Appraisers. The Non-Defaulting Member shall select one (1) Qualified Appraiser and shall include such selection in the Default Notice. Within fifteen (15) days following the Effective Date of the Default Notice, the Defaulting Member shall
either agree to the Qualified Appraiser selected by the Non-Defaulting Member or select a second (2nd) Qualified Appraiser and give written notice to the Non-Defaulting Member of the person so selected. If either the 

  

 32 

 
Non-Defaulting Member or the Defaulting Member fails to appoint a Qualified Appraiser within the time period specified and after the expiration of five
(5) days following the Effective Date of written demand that a Qualified Appraiser be appointed, the Qualified Appraiser duly appointed by the Member making such demand to appoint such Qualified Appraiser shall proceed to make the appraisal as
herein set forth, and the determination thereof shall be conclusive on all the Members. 
 (1) The Qualified Appraiser or two
(2) Qualified Appraisers, as the case may be, shall promptly fix a time for the completion of the appraisal, which shall not be later than thirty (30) days from the Effective Date of the appointment of the last Qualified Appraiser.

 (2) The Qualified Appraiser(s) shall determine the Appraised Value by determining the fair market value of the assets of
the Company, such being the fairest price estimated in the terms of money which the Company could obtain if the assets of the Company were sold, for all cash, in the open market allowing a reasonable time to find a purchaser. 
 (3) Upon submission of the appraisals setting forth the opinions as to the Appraised Value of the assets of the Company, the average of
the two (2) appraisals shall constitute the Appraised Value of the assets of the Company for purposes of this Article 7. 
 (c)
Sale to Third Party. Within ten (10) days after the closing of any sale of the Company or its assets to any third party pursuant to clause (i) of Section 7.02, the accountants regularly employed by the Company shall
determine the amount of cash which would be distributed to each Member pursuant to Section 5.02 after (i) the sale of the Company (including all of its assets) to the third party for the Third-Party Purchase Price as of the closing
of the sale of the Company or its assets (after deducting therefrom an amount equal to reasonable and customary closing costs and any prepayment fees on any indebtedness that would be payable in connection with any such sale); (ii) the
liquidation of the remaining liabilities of the Company pursuant to Section 8.02(a); (iii) the establishment of reserves in an amount reasonably determined by the Non-Defaulting Member for any contingent, conditional or unmatured
liabilities or obligations of the Company pursuant to Section 8.02(b); (iv) if a Lippert Member is the Defaulting Member, the existence of a Cash Flow Bonus Forfeiture Event for purposes of Sections 5.01(d) and 5.02(h); and
(v) the distribution by the Company of any remaining amounts to the Members in accordance with the provisions of Section 5.02. Upon such determination, the accountants regularly employed by the Company shall give each Member a Price
Determination Notice thereof. The determination by the accountants of such amounts, including all components thereof, shall be deemed conclusive absent any material computational error. In the event of any such third party sale, ninety percent
(90%) of the amount that would be distributed to the Defaulting Member pursuant to clause (v) above shall be deemed to be the “Default Purchase Price” for purposes of this Article 7. 
  

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 (d) Payment of Costs. The Non-Defaulting
Member shall pay for the services of the Qualified Appraiser appointed by such Member, and the Defaulting Member shall pay for the services of the Qualified Appraiser appointed by such Member. The cost of the services of the third
(3rd) Qualified Appraiser, if any, shall be paid one-half ( 1/2) by the Non-Defaulting Member and one-half ( 1/2) by the Defaulting Member. The costs of the services of the accountants and, in the event only one (1) Qualified Appraiser is
required, the cost of the services of such Qualified Appraiser, shall be paid one-half ( 1/2) by the Non-Defaulting Member and
one-half ( 1/2) by the Defaulting Member. 
 7.04 Member’s Option 
 For
a period of ninety (90) days following the determination of the Default Purchase Price pursuant to Section 7.03(a), the Non-Defaulting Member shall have the right, but not the obligation, to (i) purchase the entire Defaulting
Member’s Interest for the Default Purchase Price thereof (as determined pursuant to Section 7.03(a)), and on the terms and conditions set forth in this Article 7, (ii) elect to sell the Company or cause the Company to
sell its assets to a third party in accordance with the provisions set forth above in this Article 7 or (iii) waive the right to purchase the Defaulting Member’s Interest or cause such third party sale with respect to the particular
Default Buy-Sell Event, in each case by delivering written notice thereof to the Defaulting Member within such thirty (30)-day period. The failure of the Non-Defaulting Member to timely give any such written notice pursuant to this
Section 7.04 shall be deemed an election by such Member to waive such rights with respect to the particular Buy-Sell Event that resulted in the implementation of the provisions of this Article 7. If the Non-Defaulting Member
elects to sell the Company or cause the Company to sell its assets to a third party in accordance with the provisions set forth above in this Article 7, then, in lieu of electing to purchase the Defaulting Member’s Interest, at the
Non-Defaulting Member’s option, the Non-Defaulting Member may cause the sale to such third party to occur. If the Non-Defaulting Member causes the sale to such third party to occur, then, notwithstanding the provisions of Articles 5 and
8 (and any other provision contained in this Agreement), the aggregate amount of Cash Flow to be distributed to the Defaulting Member from such sale shall be equal to the Default Purchase Price for the Defaulting Member’s Interest
determined in accordance with the provisions of Section 7.03(c) and the balance of such proceeds shall be distributed to the Non-Defaulting Member. 
 7.05 Closing of Purchase and Sale 
 The closing of any purchase and sale of the Interest of any
Member selling its Interest (the “Selling Member”) pursuant to this Article 7 shall be held at the principal office of the Member that is purchasing the Interest of the Selling Member (the “Purchasing
Member”) Member (or its counsel) on or before the forty-fifth (45th) day after the expiration of the applicable thirty (30)-day period set forth in Section 7.04 (if applicable), or, if earlier, the forty-fifth
(45th) day after the Effective Date of the Default Notice or Buy-Sell Notice, as applicable). The Selling Member shall transfer to the Purchasing Member (or such Member’s nominee(s)) the entire Interest of the Selling Member free and clear
of all liens, security interests, and competing claims and shall 

  

 34 

 
deliver to the Purchasing Member (or such Member’s nominee(s)) such instruments of transfer and such evidence of due authorization, execution, and
delivery, and of the absence of any such liens, security interests, or competing claims as such Purchasing Member (or such Member’s nominee(s)) shall reasonably request. 
 7.06 Payment of Purchase Price 
 The Purchase Price for the purchase of the Selling Member’s Interest shall be paid by the Purchasing Member (or such Member’s nominee(s)) at the closing, in cash or one (1) or more certified or bank cashier’s checks
drawn and made payable to the order of the Selling Member. If the Company or its assets are sold to a third party pursuant to this Article 7, then the entire Third Party Purchase Price shall be paid concurrently with such closing. 

7.07 Release and Indemnity 
 On or before the closing of a purchase held pursuant to this Article 7, the Purchasing Member shall use such Member’s reasonable efforts to obtain written releases of the Selling Member (and such Member’s Affiliates) from
all liabilities of the Company and from all guarantees of such liabilities of the Company previously executed by the Selling Member (and its Affiliates). To the extent such releases cannot be obtained by the Purchasing Member, the Purchasing Member
shall indemnify, defend, protect and hold the Selling Member (and such Affiliates) wholly free and harmless from and against any and all claims, liabilities, causes of action, liens, charges, and all other matters arising from such liabilities or
guarantees, arising subsequent to the Effective Date of such closing. 
 7.08 Repayment of Member Loans 
 The Purchase Price to be paid by the Purchasing Member for the Interest of the Selling Member shall be offset at the closing of such purchase by the then
outstanding principal balance (together with all accrued, unpaid interest thereon) of any and all (i) Member Loans made by the Purchasing Member to the Selling Member and (ii) loans or advances of funds made by the Company to the Selling
Member (each a “Seller Loan”). Such Member Loans and Seller Loans (together with all accrued, unpaid interest thereon) shall be deemed paid to the extent of such offset, with such deemed payment to be applied first to the accrued
interest thereon and thereafter to the payment of the outstanding principal amount thereof. If the Purchase Price for the Defaulting Member’s Interest is insufficient to fully offset the then unpaid principal balance of any and all Member Loans
and Seller Loans (together with all accrued, unpaid interest thereon), then the portion of any such Member Loans and Seller Loans (and accrued, unpaid interest thereon) that remains outstanding following such offset shall be due and payable in full
at the closing of the purchase of the Selling Member’s Interest pursuant to this Article 7. Also, notwithstanding any other provision contained in this Agreement, the unpaid principal balance of any and all Member Loans and Seller Loans
(together with all accrued, unpaid interest thereon) shall be due and payable in full at the closing of the purchase of the Selling Member’s Interest pursuant to this Article 7. 
  

 35 

 7.09 Voting Rights Following Default Buy-Sell Event 
 From and after the occurrence of a Default Buy-Sell Event (unless and until the Non-Defaulting Member waives in writing any Default Buy-Sell Event or
fails to timely consummate the closing of any applicable transaction described in this Article 7 pursuant to Section 7.05), (i) the Defaulting Member shall not be entitled to participate in the management of, or otherwise
vote upon, any matter affecting the business and affairs of, the Company or any matter that such Member is entitled to vote upon under this Agreement, (ii) the Defaulting Member shall no longer have any right to appoint any representative to
the Management Committee and any previously appointed representatives of the Defaulting Member shall be replaced by one (1) or more representatives to be appointed by the Non-Defaulting Member, and (iii) the rights of the Defaulting Member
shall be limited solely to those of an assignee. 
 7.10 Withdrawal of the Selling Member 
 If the Interest of the Selling Member is purchased by the Purchasing Member pursuant to this Article 7, then, effective as of the closing for such
purchase, (i) the Selling Member shall withdraw as a Member of the Company, and (ii) if the Selling Member is the Lippert Members, then Lippert Management shall be automatically removed as the Operating Member of the Company. In connection
with any such withdrawal of the Selling Member, the Purchasing Member may cause any nominee designated in the sole and absolute discretion of the Purchasing Member to be admitted as a substitute partner of the Company. 
 ARTICLE 8  
 DISSOLUTION
AND WINDING UP OF THE COMPANY 
 8.01 Events Causing Dissolution of the Company 
 Upon any Member’s bankruptcy, retirement, resignation, expulsion or other cessation to serve, or the admission or substitution of a new Member, the
Company shall not be dissolved but its business shall continue without interruption or break in continuity. Upon the bankruptcy, retirement, resignation, expulsion or other cessation to serve of any Member, the other Member shall continue to serve
as a Member of the Company in accordance with the provisions of this Agreement. The Company shall be dissolved upon the first to occur of: (a) the expiration of the term of the Company, unless such term has been extended by the unanimous
agreement of the Members; (b) the sale, transfer or other disposition by the Company of all or substantially all of its assets and the collection by the Company of its distributive share of any and all cash proceeds delivered therefrom; or
(c) the affirmative election of the Management Committee to dissolve the 

  

 36 

 
Company. Except as may be permitted in accordance with this Section 8.01 or other terms of this Agreement, no Member shall have the right to, and
each Member hereby agrees that it shall not, seek to dissolve or cause the dissolution of the Company or seek to cause a partial or whole distribution or sale of Company assets whether by court action or otherwise, it being agreed that any actual or
attempted dissolution, distribution or sale would cause a substantial hardship to the Company and the remaining Members. 
 8.02
Winding Up of the Company 
 Upon the Liquidation of the Company caused by other than the termination of the Company under
Section 708(b)(1)(B) of the Code (in which latter case the Company shall remain in existence in accordance with the provisions of such Section of the Code), the Members shall proceed to the winding up of the affairs of the Company. During such
winding up process, the Net Profits, Net Losses and Cash Flow distributions shall continue to be shared by the Members in accordance with this Agreement. The assets shall be liquidated as promptly as consistent with obtaining a fair value therefor,
and the proceeds therefrom, to the extent available, shall be applied and distributed by the Company on or before the end of the taxable year of such Liquidation or, if later, within ninety (90) days after such Liquidation, in the following
order: (a) first, to creditors of the Company (including Members who are creditors), in the order of priority as provided by law, (b) second, to the setting up of any reasonable reserves which the Management Committee deems reasonably
necessary for any contingent, conditional or unmatured liabilities or obligations of the Company (which shall be distributed as soon as reasonably practicable to the Members in proportion to their respective positive Capital Account balances), and
(c) thereafter, to the Members in accordance with Section 5.02 hereof. 
 8.03 No Negative Capital Account
Restoration 
 No Member shall have any obligation whatsoever upon the Liquidation of such Member’s Interest, the Liquidation of
the Company or in any other event, to contribute all or any portion of any negative balance standing in such Member’s Capital Account to the Company, to any other Member or to any other Person. 
 ARTICLE 9 
 BOOKS AND RECORDS; 

 ACCOUNTING; TAX ELECTIONS 
 9.01 Company Books 
 The Operating Member shall cause to be kept, at the principal office of
the Company, or at such other location as the Management Committee shall reasonably deem appropriate, full and proper ledgers, other books of account, and records of all receipts and disbursements, other financial activities, and the internal
affairs of the Company for at least the current and past four (4) Fiscal Years. 
  

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 9.02 Delivery of Records; Inspection 
 The Operating Member, subject to such reasonable standards as may be established from time to time by the Management Committee, shall deliver to any
Member (or, to the extent so directed, to its agent or attorney) a copy of the following information at any time if requested in writing: 
 (a) Financial Reports. True and full information regarding the status of the business and financial condition of the Company (including, without limitation, the annual financial reports and all supporting
calculations and information for such reports), including (without limitation,) the information required by Section 9.03(c); 
 (b) Tax Returns. Promptly after becoming available, copies of the Company’s federal, state and local income or information tax returns for the year; 
 (c) Names and Addresses. A current list of the name and last known-business, residence or mailing address of each Member and the
date on which each became a Member; 
 (d) Formation Documents. A copy of this Agreement, as amended, and any other
formation documents for the Company, together with executed copies of any written powers of attorney pursuant to which this Agreement, as amended, and any other formation documents have been executed; and 
 (e) Contribution Information. True and full information regarding the amount of cash and a description and statement of the agreed
value of any other property or services contributed by each Member and which each Member has agreed to contribute in the future. 
 Any
Member (personally or through an authorized representative) may, for any purpose reasonably related to such Member’s Interest, inspect and copy (at its own cost and expense) the books and records of the Company at all reasonable business hours.

 9.03 Reports and Tax Information 
 (a) General. The Operating Member shall cause to be prepared, at the cost and expense of the Company, and delivered to each Member at such times as are determined by the Management Committee (or otherwise in
accordance with the terms of this Agreement), the Annual Business Plans, the Operating Budgets, any and all periodic operating reports, and any and all other financial statements or reports requested from time to time by any representative of the
Management Committee. In addition, the Operating Member shall cause to be prepared, at the cost and expense of the Company, and delivered to each Member, within ninety (90) days after the end of each tax year, the information necessary for such
Member to complete its federal, state and local income tax or information returns. 
  

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 (b) Tax Returns. The Operating Member shall cause to be prepared by a reputable accounting firm
approved by the Management Committee and delivered to each Member, within ninety (90) days from and after the final day of each tax year, the Company’s federal, state and local income or information tax returns for the year, as well as any
additional information necessary for such Member to complete its federal, state and local income tax or information returns. In addition, upon the request of any Member, the Operating Member shall prepare estimates of the projected federal, state
and local taxable income of the Company, and the portion thereof allocable to each Member, within a reasonable time period specified by the Member prior to the end of each tax year. 
 (c) Periodic Financial Statements. The Operating Member shall furnish quarterly financial statements, including a balance sheet, income statement,
statement of Members’ capital, statement of cash flows and notes thereon, that are prepared on a historical cost basis in accordance with generally accepted accounting principles within fifteen (15) calendar days following the close of a
given quarter. 
 (d) Audited Financial Statements. The Operating Member shall prepare, at the expense of the Company, and furnish the
following information to each Member within sixty (60) calendar days after the end of each Fiscal Year (with a final reviewable draft thereof to be furnished to each Member within forty-five (45) days after the end of each Fiscal Year):
(i) an audited balance sheet of the Company dated as of the end of such Fiscal Year, (ii) an audited related income statement of the Company for such Fiscal Year, (iii) an audited statement of cash flows for such Fiscal Year,
(iv) an audited statement of each Member’s Capital Account for such Fiscal Year, and (v) notes thereon, prepared on a historical cost basis in accordance with generally accepted accounting principles, all of which shall be certified
by the Operating Member as being, to the best of its knowledge, true and correct and all of which shall be certified in the customary manner by a reputable accounting firm approved by the Management Committee (which firm shall provide such balance
sheet, income statement and statement of Capital Account in draft form within forty (40) calendar days after the end of each Fiscal Year, to the Members for review prior to finalization and certification thereof). 
 (e) Securities Exchange Act. The Operating Member acknowledges that the financial statements of the Company will be consolidated with those of the
Paladin REIT and that the Paladin REIT is subject to the reporting requirements of the Securities Exchange Act of 1934, as amended. The Operating Member shall permit the officers, agents and representatives of the Paladin REIT (including its
attorneys and accountants) to have unfettered access to such financial and other information for the Company at such times as such officer, agent or representatives may reasonably request to enable the Paladin REIT to obtain the information required
in order to timely comply with such reporting requirements. The Operating Member, at its expense, shall employ, or contract with, such individuals and implement such accounting practices and procedures as are necessary for the provision of a
reasonably professional level of accounting, reporting and internal controls for the Company, including (without limitation) the provision of the following: (i) documentation of property level and corporate accounting and financial reporting
policies and procedures; (ii) documentation 

  

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of Information Technology (IT) policies and procedures, and disaster recovery plan; (iii) “sign off” by Lippert Management’s property,
accounting and supervisory/review personnel after their preparation, review and/or approval of accounting transactions and workpapers, and (iv) preparation of written variance analysis of significant accounts quarterly and year-to-date, as
compared to the prior year period. In addition, the Operating Member shall institute such additional reasonable internal accounting controls as may be requested by the Paladin REIT, including, without limitation, those which are necessitated
for compliance with the Sarbanes-Oxley Act of 2002, as amended. 
 9.04 Company Tax Elections; Tax Controversies 
 The Management Committee shall have the right in its sole and absolute discretion to make elections for the Company provided for in the Code including,
without limitation, the elections provided for in Section 754 of the Code. Additionally, the Management Committee shall have the right to seek to revoke any such election (including without limitation, any election under Section 754 of the
Code) upon the Management Committee’s determination that such revocation is in the best interests of the Company or its Members. Paladin is hereby designated as the “Tax Matters Partner” pursuant to the requirements of
Section 6231(a)(7) of the Code, and in such capacity shall represent the Company in any disputes, controversies or proceedings with the Internal Revenue Service. 
 9.05 Accounting and Fiscal Year 
 Subject to Section 448 of the Code, the books of the
Company shall be kept on such method of accounting for tax and financial reporting purposes as may be determined by the Management Committee. The Fiscal Year of the Company shall be the calendar year. 
 9.06 Confidentiality of Information 
 Each party hereto agrees that the provisions of this Agreement, all understandings, agreements and other arrangements between and among the parties, and all other non-public information received from or otherwise relating to the Company,
shall be confidential and shall not be disclosed or otherwise released to any other person or entity (other than another party hereto) without the written consent of the Management Committee. Notwithstanding the foregoing, confidential information
may be disclosed by a party if such party is required to do so: (i) by operation of law, rule or regulation; (ii) pursuant to applicable legal process; (iii) by the commercial lenders to the Company; (iv) by the title insurer to
the Company or Project lender; (v) to any proposed transferee of an Interest; or (vi) to prosecute any claim or defend any action between the Members relating to the Company, without the written consent of the Management Committee.
Accordingly, each party hereto shall, and shall cause its agents and attorneys to, hold in confidence all such information. 
  

 40 

 ARTICLE 10  
 MISCELLANEOUS 
 10.01 Subscription Agreement 
 As a condition to its admission to the Company, each Member may be required by the Management Committee to execute a subscription agreement in a form
satisfactory to the Management Committee, which subscription agreement shall contain certain representations made by each such Member. 
 10.02 Investment Interest; Nature of Investment 
 Each Member hereby represents and warrants to the Company and to
each other Member that such Member is acquiring its Interest in the Company for its own account and not with a view to, or for resale in connection with, any distribution thereof in violation of the Securities Act of 1933, as amended (the
“Securities Act”), or any applicable state securities laws. Such Member possesses experience and sophistication as an investor adequate for the evaluation of the merits and risks of such Member’s investment in the Company, has
investigated the Company and its business, and the Company has made available to such Member all information necessary for such Member to make an informed decision to acquire an Interest in the Company. Such Member also understands that its Company
Interest may not be transferred absent compliance with the registration requirements of the Securities Act and applicable state securities laws or pursuant to an exemption therefrom and otherwise in compliance with the terms of this Agreement. Each
Member understands the meaning and consequences of the representations, warranties and covenants made by such Member set forth herein and that the Company has relied upon such representations, warranties and covenants. Each Member hereby
indemnifies, defends, protects and holds wholly free and harmless the Company from and against any and all losses, damages, expenses or liabilities arising out of the breach or inaccuracy of any such representation, warranty or covenant. All
representations, warranties and covenants contained herein shall survive the execution of this Agreement, the formation of the Company, and the liquidation of the Company. 
 10.03 Appointment of Attorney-in-Fact 
 Each of the Members by its execution of this Agreement, irrevocably constitutes and appoints any Member(s), agent or other representative as is designated by the Management Committee as such Member’s true and lawful attorney-in-fact
with full power and authority in its name, place and stead to execute, acknowledge, deliver, swear to, file and record at the appropriate public offices such documents as may be necessary or appropriate to carry out the provisions of this Agreement
including, without limitation: 
 (a) Formation Documents. All formation documents and other instruments (including
counterparts of this Agreement), and all amendments thereto, which the Management Committee deems appropriate to form, qualify, continue or otherwise operate the Company as a limited liability company, in the jurisdictions in which the Company may
conduct business. 
  

 41 

 (b) Amendments. All amendments to this Agreement adopted in accordance with the
terms of this Agreement, and all instruments which the Management Committee deems appropriate to reflect a change or modification of the Company in accordance with the terms of this Agreement. 
 (c) Conveyance Documents. All conveyances of Company assets in accordance with the terms of this Agreement, and other instruments
which the Management Committee reasonably deems necessary in order to complete a dissolution and liquidation of the Company in accordance with the terms of this Agreement. 
 The foregoing appointment shall be deemed to be a power coupled with an interest, in recognition that each of the Members under this Agreement will be
relying upon the power of the Management Committee to act as contemplated by this Agreement in any filing and other action by it on behalf of the Company, shall survive the bankruptcy or other incapacity of any Member hereby giving such power, and
the transfer or assignment of all or any portion of the Interest of such Member in the Company, and shall not be affected by the subsequent bankruptcy or other incapacity of such Member. If any Member assigns all or any portion of its Interest in
the Company, then the foregoing power of attorney shall survive such assignment. 
 10.04 Waiver of Conflict of Interest

 The Company and each Member are not represented by separate counsel; provided, however, in connection with the formation of the
Company and the drafting and negotiation of this Agreement, (i) Paladin (and not the Company or any Lippert Member) has been represented separately by King & Spalding LLP and (ii) the Lippert Members (and not the Company or
Paladin) has been represented separately by White Goss Bowers March Schulte & Weisenfels, a Professional Corporation. The attorneys, accountants and other experts who perform services for any Member may also perform services for the
Company. To the extent that the foregoing representation constitutes a conflict of interest, the Company and each Member hereby expressly waive any such conflict of interest. 
 10.05 Amendment 
 The written
consent of each Member shall be required to amend any provision of this Agreement, which consent may be given, withheld or made subject to such conditions as are determined by each such Member in such Member’s sole and absolute discretion. No
provision of this Agreement may be amended except in a writing signed by all Members and expressly stating (i) that it is an amendment of this Agreement and (ii) the provisions of this Agreement being amended and how it is being amended.
Notwithstanding the foregoing provisions of this Section 10.05 to the contrary, this Agreement may be amended by Paladin, by executing an instrument of amendment and giving each Member notice thereof, without the consent of any of the
other Members, to effect or implement actions approved by the Management Committee if the Operating Member fails to take action to effect or implement such actions. 
  

 42 

 10.06 No Assignments; Binding Effect 
 This Agreement shall not be assigned or otherwise transferred (by operation of law or otherwise) by any Member except as is otherwise permitted hereby.
This Agreement shall be binding upon and inure to the benefit of the parties hereto and their heirs, executors, administrators, successors, legal representatives and assigns permitted in accordance with this Agreement and the Delaware Act.

 10.07 Further Assurances 
 Each of the parties hereto hereby covenants and agrees on behalf of itself, its successors, and its assigns, without further consideration, to prepare, execute, acknowledge, verify, file, record, publish and deliver
such other instruments, documents and statements, and to take such other action as may be required by law or reasonably necessary to effectively carry out the purposes of this Agreement. 
 10.08 Notices 
 Any notice,
approval, consent, payment, demand or communication required or permitted to be given to any Member under this Agreement shall be in writing and shall be deemed to have been duly given or made as of the date (the “Effective Date”)
set forth below: (i) if delivered personally by courier or otherwise, then as of the date delivered or if delivery is refused, then as of the date presented; (ii) if sent or mailed by Federal Express, Express Mail, or other nationally
recognized overnight mail service which maintains evidence of delivery and receipt, to the Company at its principal office and to each Member at its address appearing in the current records of the Company, then as of the date received; (iii) if
sent or mailed by certified U.S. Mail, return receipt requested, to the Company at its principal office and to each Member at its address appearing in the current records of the Company, then as of the third Business Day after the date so mailed; or
(iv) if sent by facsimile to the Company at its facsimile telephone number or to any Member at its facsimile telephone appearing in the current records of the Company, then either (A) as of the date on which the appropriate electronic
confirmation of receipt is received by the sending party at or before 5:00 p.m. (receiver’s time) on any Business Day, or (B) as of the next Business Day if the time of the appropriate electronic confirmation of receipt is received by the
sending party after 5:00 p.m. (receiver’s time). Notices to each Member shall be addressed as follows (which address(es) may be changed by the Member from time to time by written notice to the Members). 
  

					
		 	To Paladin:	  	 c/o Paladin Realty Partners, LLC
 10880 Wilshire
Boulevard, Suite 1400
 Los Angeles, California 90024
 Attention:
William K. Dunbar
 Fax: (310) 996-8708
 Telephone:
(310) 996-8754

  

 43 

					
		 		  	 King & Spalding LLP
 1180 Peachtree Street, N.E.

 Atlanta, Georgia 30309
 Attention: Scott J. Arnold,
Esq.
 Fax: (404) 572-5131
 Telephone: (404) 572-4600

			
		 	 To either of the
 Lippert Members:
	  	 c/o CRES Management Co.
 Two Pershing Square

2300 Main Street, Suite 910
 Kansas City, Missouri 64108
 Attention: James Lippert
 Fax: (816) 756-1881
 Telephone: (816) 268-1498

			
		 	 With a copy to:
	  	 White Goss Bowers March Schulte & Weisenfels, a Professional Corporation
 4510 Belleview, Suite 300
 Kansas City, Missouri 64111
 Attention: John R. Weisenfels, Esq.
 Fax: (816) 753-9200
 Telephone: (816) 753-9201

 10.09 Waivers 
 No waiver by any Member of any default with respect to any provision, condition or requirement hereof shall be deemed to be a waiver of any other
provision, condition or requirement hereof; nor shall any delay or omission of any Member to exercise any right hereunder in any manner impair the exercise of any such right accruing to it hereafter. 
 10.10 Preservation of Intent 
 If any provision of this Agreement is determined by an arbitrator or any court having jurisdiction to be illegal or in conflict with any laws of any state or jurisdiction, then the Members agree that such provision shall be modified to the
extent legally possible so that the intent of this Agreement may be legally carried out. If any one (1) or more of the provisions contained herein, or the application thereof in any circumstances, is held invalid, illegal or unenforceable in
any respect or for any reason, then the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions hereof shall not be in any way impaired or affected, it being intended that all of the
Members’ rights and privileges shall be enforceable to the fullest extent permitted by law. 
  

 44 

 10.11 Entire Agreement 
 This Agreement constitutes the entire agreement between the parties hereto pertaining to the subject matter hereto and fully supersedes any and all prior
or contemporaneous agreements or understandings between the parties thereto pertaining to the subject matter hereof. 
 10.12 Certain
Rules of Construction 
 Any ambiguities shall be resolved without reference to which party may have drafted this Agreement. All
Article or Section titles or other captions in this Agreement are for convenience only, and they shall not be deemed part of this Agreement and in no way define, limit, extend or describe the scope or intent of any provisions hereof. Unless the
context otherwise requires: (i) a term has the meaning assigned to it; (ii) an accounting term not otherwise defined has the meaning assigned to it in accordance with generally accepted accounting principles; (iii) “or” is
not exclusive; (iv) words in the singular include the plural, and words in the plural include the singular; (v) provisions apply to successive events and transactions; (vi) “herein,” “hereof” and other words of
similar import refer to this Agreement as a whole and not to any particular Article, Section or other subdivision; (vii) all references to “clauses,” “Sections” or “Articles” refer to clauses, Sections or Articles
of this Agreement; and (viii) any pronoun used in this Agreement shall include the corresponding masculine, feminine or neuter forms. 
 10.13 Counterparts 
 This Agreement may be executed in any number of counterparts, each of which shall be deemed an
original, but all of which, taken together, shall constitute one (1) and the same instrument. 
 10.14 Governing Law

 This Agreement, including its existence, validity, construction, and operating effect, and the rights of each of the Members hereto,
shall be governed by and construed in accordance with the laws of the State of Delaware without regard to any otherwise governing principles of conflicts of law. 
 10.15 Assurances 
 Each of the Members shall hereafter execute and deliver such further
instruments and do such further acts and things as may be reasonably required or useful to carry out the intent and purpose of this Agreement and as are not inconsistent with the terms hereof. 
  

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 10.16 Time is of the Essence 
 Time is of the essence hereof in connection with all obligations of the parties hereunder. 
 10.17 Other Matters 
 If any
proceeding is brought by any Member or the Company against any other Member or the Company that arises out of, or is connected with, this Agreement, then the prevailing party in such proceeding shall be entitled to recover reasonable attorneys’
fees and costs. Any agreement to pay any amount and any assumption of liability herein contained, express or implied, shall be only for the benefit of the Members and their respective successors and assigns, and such agreements and assumptions shall
not inure to the benefit of the obligees of any indebtedness or any other party, whomsoever, deemed to be a third-party beneficiary of this Agreement. 
 10.18 Ownership of the Lippert Members and Property Manager 
 The Lippert Members represent and
warrant that Lippert Holdings is a limited liability company duly organized under the laws of the State of Missouri, that Lippert Management is a corporation duly organized under the laws of the State of Missouri, and that the Property Manager is a
limited liability company duly organized under the laws of the State of Missouri, and that Exhibit D sets forth the following information with respect to the ownership and structure of the Lippert Members and the Property Manager and each
Person that owns any direct or indirect interest therein: 
 (a) The name, type and percentage ownership interest of each such
Person; and 
 (b) The name of each officer, if any, and the title thereof, in any corporate entity, the name of each partner
in any partnership entity, and the name of each member and the name of each manager in any limited liability company. 
 The Lippert Members
represent that there are no commitments, options, warrants or rights of any kind which evidence a right to acquire or receive any ownership interest in the Lippert Members or the Property Manager. 
 ARTICLE 11  
 DEFINITIONS

 11.01 12% IRR Amount 
 The term “12% IRR Amount” means, as of any date, the amount which would have to be received by a Member on such date in order for such Member to receive an IRR of twelve percent (12%). 
  

 46 

 11.02 Additional Contribution 
 The term “Additional Contribution” means any and all additional contributions approved in writing by the Management Committee and made by
any Member to the capital of the Company pursuant to Section 3.02. 
 11.03 Additional Member 
 The term “Additional Member” means any Person that has been admitted to the Company as a Member pursuant to this Agreement by virtue of
such Person receiving its Interest in the Company from the Company and not from another Member or an assignee. 
 11.04 Adjusted
Capital Account 
 The term “Adjusted Capital Account” means, with respect to any Member, the deficit balance, if
any, in such Member’s Capital Account (a) increased for any amount which the Member is deemed to be obligated to restore with respect to any negative balance in the Member’s Capital Account pursuant to Treasury Regulation
Section 1.704-1(b)(2)(ii)(c) or pursuant to the penultimate sentence of Treasury Regulation Section 1.704-2(g)(1) or 1.704-2(i)(5); and (b) decreased by any items described in Treasury Regulation Sections 1.704-1(b)(2)(d)(4),
(5) or (6). 
 11.05 Affiliate 
 The term “Affiliate” means, with reference to a specified Person, any other Person that, directly or indirectly through one or more intermediaries or otherwise, controls, is controlled by or is under
common control with the specified Person. As used in this definition, “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person (whether through
ownership of securities of that Person, by contract, relationship or otherwise) and includes, in any event, the ownership of twenty-five percent (25%) or more of the outstanding voting interests of such Person. 
 11.06 Agreement 
 The term
“Agreement” means this Operating Agreement of KC Pinehurst Associates, LLC, as it may be further amended. 
 11.07
Annual Business Plan 
 The term “Annual Business Plan” is defined in Section 2.04. 
 11.08 Appraised Value 
 The
term “Appraised Value” is defined in Section 7.03(b). 
  

 47 

 11.09 Business Day 
 The term “Business Day” means any weekday excluding any legal holiday observed pursuant to United States federal law or California state
law or regulation. 
 11.10 Buyout Purchase Price 
 The term “Buyout Purchase Price” is defined in Section 7.02. 
 11.11
Buy-Sell Notice 
 The term “Buy-Sell Notice” is defined in Section 7.02. 
 11.12 Capital Account 
 The
term “Capital Account” means with respect to each Member the amount of money contributed by such Member to the capital of the Company, increased by the aggregate Gross Asset Value at the time of contribution (as determined by
the Members) of all property contributed by such Member to the capital of the Company (net of liabilities secured by such contributed property that the Company is considered to assume or take subject to under Section 752 of the Code), the
aggregate amount of all Net Profits allocated to such Member, and any and all items of gross income or gain specially allocated to such Member pursuant to Sections 4.02 and 4.03, and decreased by the amount of money distributed to such
Member by the Company (exclusive of any guaranteed payment within the meaning of Section 707(c) of the Code paid to such Member), the aggregate fair market value at the time of distribution (as determined by the Members) of all property
distributed to such Member by the Company (net of liabilities secured by such distributed property that such Member is considered to assume or take subject to under Section 752 of the Code), the amount of any Net Losses charged to such Member,
and any items of loss or deduction specially allocated to such Member pursuant to Sections 4.02 and 4.03. The provisions hereof governing the maintenance of Capital Accounts are intended to satisfy the requirements of Treasury Regulation
Section 1.704-1(b)(2)(iv) and shall be interpreted and applied in a manner consistent therewith. 
 11.13 Capital Contribution

 The term “Capital Contribution” means with respect to each Member, the aggregate amount of any and all amounts
credited to such Member’s Unrecovered Contribution Account in accordance with the terms of this Agreement. Any Capital Contributions made at any time during throughout the term hereof shall be deemed made on the date contributed. 
 11.14 Capital Event 
 The term
“Capital Event” means and includes: (i) any transaction involving the sale, exchange or other disposition of the Project or the Company (but 

  

 48 

 
excluding any incidental sales or exchanges of tangible personal property and fixtures), (ii) any financing, refinancing or borrowing secured by the
Project or the Company, and (iii) any condemnation or recovery of damage awards and property insurance proceeds (excluding proceeds from any rent or business interruption insurance). 
 11.15 Cash Flow 
 The term
“Cash Flow” means the sum of any and all Ordinary Cash Flow and Extraordinary Cash Flow. 
 11.16 Cash Flow Bonus
Forfeiture Event 
 The term “Cash Flow Bonus Forfeiture Event” shall mean any of the following: (i) the failure
of any Lippert Member to make all or any portion of any Additional Contribution such Lippert Member is required to contribute pursuant to Section 3.02, (ii) the removal of Lippert Management as Operating Member pursuant to
Section 2.06(a) or (iii) the existence of Default Buy-Sell Event and a Lippert Member is the Defaulting Member. 
 11.17
Code 
 The term “Code” means the Internal Revenue Code of 1986, as heretofore and hereafter amended from time to
time (or any corresponding provision of any superseding revenue law). 
 11.18 Company 
 The term “Company” means the limited liability company governed by this Agreement and created upon the filing of the Certificate of
Formation with the Delaware Secretary of State in accordance with the provisions of the Delaware Act, which limited liability company is referenced in the first paragraph of this Agreement. 
 11.19 Company Minimum Gain 
 The term “Company Minimum Gain” has the meaning set forth in Treasury Regulation Sections 1.704-2(b)(2) and 1.704-2(d)(1) for the phrase “partnership minimum gain.” 
 11.20 Contributing Member 
 The
term “Contributing Member” is defined in Section 3.03(a). 
 11.21 Contribution Date 

The term “Contribution Date” is defined in Section 3.02(b). 
  

 49 

 11.22 Contribution Notice 
 The term “Contribution Notice” is defined in Section 3.02(b). 
 11.23 Contribution Percentage 
 The term “Contribution Percentage” means, with respect to each Member, the percentage set forth opposite such Member’s name on Exhibit A attached hereto under the column labeled “Contribution
Percentage.” 
 11.24 Default Buy-Sell Event 
 The term “Default Buy-Sell Event” is defined in Section 7.01. 
 11.25
Default Notice 
 The term “Default Notice” is defined in Section 7.02. 
 11.26 Defaulting Member 
 The
term “Defaulting Member” is defined in Section 7.01. 
 11.27 Default Purchase Price 
 The term “Default Purchase Price” is defined in Section 7.03(a). 
 11.28 Deferred Management Fees 
 The term “Deferred Management Fees” is defined in Section 2.12. 
 11.29 Deferred Management Fee
Account  
 The term “Deferred Management Fee Account” means, as to the Property Manager and as
of any relevant date, the excess, if any, of the aggregate amount of the Deferred Management Fees, over the aggregate amount of payments made to the Property Manager prior to such relevant date pursuant to Section 5.01(b) and
Section 5.02(a). 
 11.30 Delaware Act 
 The term “Delaware Act” means the Delaware Limited Liability Company Act (6 Del.C. § 17-101, et seq.), as hereafter amended from time to time. 
 11.31 Delinquent Contribution 
 The term “Delinquent Contribution” is defined in Section 3.03(a). 
  

 50 

 11.32 Dilution Percentage 
 The term “Dilution Percentage” is defined in Section 3.03(c). 
 11.33 Effective Date 
 The term
“Effective Date” is defined in Section 10.08. 
 11.34 Extraordinary Cash Flow 
 The term “Extraordinary Cash Flow” means the cash proceeds (including, without limitation, any insurance proceeds, recoveries, damages
and awards, but excluding the proceeds of any rent insurance or business interruption insurance) realized by the Company, directly or indirectly, as a result of the occurrence of a Capital Event, plus cash interest payments received with respect to
such proceeds, decreased by the sum of (i) the amount of such proceeds applied by the Company to pay debts and liabilities of the Company which are then due and payable (inclusive of any guaranteed payment within the meaning of
Section 707(c) of the Code paid to any Member); (ii) the amount of such proceeds used, set aside or committed by the Company or required to be used by any secured lender for the Project for restoration and repair of any property in the
event of damage or destruction to the Project; (iii) any incidental or ancillary expenses, costs or liabilities incurred by the Company in effecting or obtaining any such Capital Event, or the proceeds thereof (including, without limitation,
attorneys’ fees, expert witness’ fees, accountants’ fees, court costs, recording fees, transfer taxes and fees, appraisal costs and the like) all of which expenses, costs and liabilities shall be paid from the gross amount of such
cash proceeds to the extent thereof; (iv) the payment of such other Company debts and liabilities as are determined in the reasonable discretion of the Management Committee; and (v) a reserve, established in the reasonable discretion of
the Management Committee, for anticipated cash disbursements that will have to be made before additional cash receipts from third parties will provide funds therefore. 
 11.35 Fiscal Year 
 The term “Fiscal Year” means, except as otherwise provided
in this definition, the twelve (12) month period commencing on January 1 of each calendar year and ending on December 31 of each calendar year, with the first Fiscal Year commencing on the date hereof and ending on December 31,
2007 and the last Fiscal Year being the period beginning on January 1 of the year in which the final liquidation and termination of the Company is completed and ending on the date such final liquidation and termination is completed. To the
extent any computation or other provision hereof provides for an action to be taken on the basis of a Fiscal Year, an appropriate proration or other adjustment shall be made in respect of the initial and final Fiscal Years to reflect that such
periods are less than 12 month periods. 
  

 51 

 11.36 Gross Asset Value 
 The term “Gross Asset Value” shall mean, except as set forth below, such asset’s adjusted basis for federal income tax purposes:

 (i) The initial Gross Asset Value of any asset contributed by a Member to the Company shall be the gross fair market value
of such asset, as determined by the contributing Member and the Company. 
 (ii) The Gross Asset Value of all Company assets
shall be adjusted to equal their respective gross fair market values, as determined by the Members as of the following times: (A) the acquisition of an additional interest in the Company by any new or existing Members in exchange for more than
a de minimis Capital Contribution if the Members reasonably determine that such adjustment is necessary or appropriate to reflect the relative economic interests of the Members in the Company; (B) the distribution by the Company to a
Member of more than a de minimis amount of Company property as consideration for an interest in the Company if the Members reasonably determine that such adjustment is necessary or appropriate to reflect the relative economic interests of the
Members in the Company; and (C) the liquidation of the Company within the meaning of Treasury Regulations Section 1.704-1(b)(2)(ii)(g). 
 (iii) The Gross Asset Value of any Company asset distributed to any Member shall be the gross fair market value of such asset on the date of distribution; and 
 (iv) The Gross Asset Values of Company assets shall be increased or decreased to reflect any adjustments to the adjusted basis of such
assets pursuant to Code Section 734(b) or Code Section 743(b), but only to the extent that such adjustments are taken into account in determining Capital Accounts pursuant to Section 1.704-1(b)(2)(iv)(m) of the Treasury Regulations;
provided, however, that Gross Asset Values shall not be adjusted pursuant to this subparagraph (iv) to the extent the Members determine that an adjustment pursuant to subparagraph (ii) hereof is necessary or appropriate in
connection with a transaction that would otherwise result in an adjustment pursuant to this subparagraph (iv). 
 If the Gross Asset Value of
an asset has been determined or adjusted pursuant to subparagraphs (i), (ii) or (iv) of this provision, such Gross Asset Value shall thereafter be computed in accordance with Section 1.704-1(b)(2)(iv)(g) of the Treasury Regulations.

 11.37 Immediate Family 
 The term “Immediate Family” means an individual Person’s current spouse, parents, grandparents, siblings, children, children’s spouses, grandchildren or grandchildren’s spouses or any trusts or estates (or
other estate-planning vehicles) for the exclusive benefit of any one or more of the foregoing that is controlled by such individual Person. 
  

 52 

 11.38 Indemnified Party 
 The term “Indemnified Party” is defined in Section 2.07(a). 
 11.39 Interest 
 The term
“Interest” means in respect to any Member, all of such Member’s right, title and interest in and to the Net Profits, Net Losses, Cash Flow, distributions and capital of the Company, and any and all other interests therein in
accordance with the provisions of this Agreement and the Delaware Act. 
 11.40 IRR 
 The term “IRR” means, with respect to any Member, the annual discount rate, determined by iterative process, which results in a net
present value approximating zero (0) when such discount rate is applied to the Capital Contributions made by such Member from time to time and distributions made to such Member from time to time (except for Section 707(c) payments), and
calculated using Microsoft Office Excel, xIRR function in accordance with the formula attached hereto as Exhibit E. 
 11.41
Lippert Holdings  
 The term “Lippert Holdings” means JTL Holdings, LLC, a Missouri limited liability company.

 11.42 Lippert Management  
 The term “Lippert Management” means JTL Management, Inc., a Missouri corporation. 
 11.43 Lippert Member(s)  
 The term “Lippert Members” means Lippert Management and Lippert Holdings,
collectively; the term “Lippert Member” means any one of the Lippert Members. 
 11.44 Liquidation 

The term “Liquidation” means, (i) in respect to the Company, the earlier of the date upon which the Company is terminated under
Section 708(b)(1) (except for any deemed liquidation under Section 708(b)(1)(B) of the Code) or the date upon which the Company ceases to be a going concern (even though it may continue in existence for the purpose of winding up its
affairs, paying its debts and distributing any remaining balance to its Members), and (ii) in respect to a Member wherein the Company is not in Liquidation, the liquidation of a Member’s interest in the Company under Treasury Regulation
Section 1.761-1(d). 
  

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 11.45 Majority of Representatives 
 The term “Majority of Representatives” means a majority (in number) of the representatives on the Management Committee, provided
that, at any meeting of the Management Committee, all of the representatives collectively shall have a number of votes equal to the representatives that Paladin or Lippert Management, as the case may be, is entitled to elect, and such votes
shall be cast (whether by one or more of such representatives) as a block, with a majority of such votes constituting a “Majority of Representatives.” 
 11.46 Management Committee 
 The term “Management Committee” is defined in
Section 2.01(a). 
 11.47 Material Breach 
 The term “Material Breach” means any material breach or default by a Member of any material covenant, duty or obligation under this
Agreement or any Exhibits hereto (including, without limitation, the failure of any Member to contribute any Additional Contribution to the extent required to be made pursuant to Section 3.02 and Section 3.03), provided
that in any such instance: (i) such Member shall have received written notice from the other Member of such breach or default, and (ii) if curable, such Member shall have failed to cure or remedy such breach or default within ten
(10) days following the Effective Date of such notice (except that no such notice shall be required in the case of the failure of any Member to contribute any Additional Contribution pursuant to Section 3.02 and
Section 3.03) or, if such breach or default is not curable within such 10-day period, such Member shall have failed to diligently and continuously pursue such a cure or remedy and in any event fully cure or remedy such breach or default
within thirty (30) days of the Effective Date of such notice. 
 11.48 Member Loan 
 The term “Member Loan” is defined in Section. 3.03(b). 
 11.49 Member Minimum Gain 
 The
term “Member Minimum Gain” means minimum gain attributable to a Member Nonrecourse Debt determined in accordance with Treasury Regulation Section 1.704-2(i) for the phrase “partner minimum gain.” 
 11.50 Member Nonrecourse Debt 
 The term “Member Nonrecourse Debt” has the meaning set forth in Treasury Regulation Section 1.704-2(b)(4) for the phrase “partner nonrecourse debt.” 
  

 54 

 11.51 Member Nonrecourse Deductions 
 “Member Nonrecourse Deductions” has the meaning set forth in Treasury Regulation Section 1.704-2(i) for the phrase “partner
nonrecourse deductions.” 
 11.52 Member(s) 
 The term “Members” means Paladin, Lippert Management and Lippert Holdings, collectively; the term “Member” means any one of the Members. 
 11.53 Net Profits and Net Losses 
 The term “Net Profits” or “Net Losses” shall mean, for each Fiscal Year or other period, an amount equal to the Company’s taxable income or loss for such year or period, determined in accordance with
Code Section 703(a) (for this purpose, all items of income, gain, loss or deduction required to be stated separately pursuant to Code Section 703(a)(1) shall be included in taxable income or loss), with the following adjustments:

 (i) Any income of the Company that is exempt from federal income tax and not otherwise taken into account in computing Net
Profits and Net Losses pursuant to this subparagraph (i) shall be added to such taxable income or loss; 
 (ii) Any
expenditures of the Company described in Code Section 705(a)(2)(B) or treated as Code Section 705(a)(2)(B) expenditures pursuant to Treasury Regulation Section 1.704-1(b)(2)(iv)(1), and not otherwise taken into account in computing
Net Profits or Net Losses pursuant to this provision shall be subtracted from such taxable income or loss; 
 (iii) In the
event of the Gross Asset Value of any Company property is adjusted pursuant to subparagraphs (ii) or (iii) of the definition of Gross Asset Value, the amount of such adjustment shall be taken into account as gain or loss from the
disposition of such asset for purposes of computing Net Profits or Net Losses; 
 (iv) Gain or loss resulting from any
disposition of Company property with respect to which gain or loss is recognized for federal income tax purposes shall be computed by reference to the Gross Asset Value of the property disposed of, notwithstanding that the adjusted tax basis of such
property differs from its Gross Asset Value; 
 (v) In lieu of the depreciation, amortization and other cost recovery
deductions taken into account in computing such taxable income or loss, there shall be taken into account depreciation computed in accordance with Section 1.704-1(b)(2)(iv)(2) of the Treasury Regulations for such Fiscal Year or other period;
and 
  

 55 

 (vi) Notwithstanding anything contained herein to the contrary, any items which are
specially allocated pursuant to Article 4 hereof shall not be taken into account in computing Net Profits or Net Losses. 
 11.54
Non-Contributing Member 
 The term “Non-Contributing Member” is defined in Section 3.03(a).

 11.55 Nonrecourse Deductions 
 The term “Nonrecourse Deductions” means deductions as described in Treasury Regulation Section 1.704-2(b)(l). 
 11.56 Operating Account 
 The term “Operating Account” means an account of the
Company at a financial institution approved by the Management Committee and into which all Capital Contributions and other funds for and from the ownership and operation of the Project by the Company shall be deposited and held until properly
disbursed and on which at least one of the representatives of Paladin on the Management Committee shall be a signatory. 
 11.57
Operating Budget 
 The term “Operating Budget” is defined in Section 2.05. 
 11.58 Operating Member 
 The
term “Operating Member” is defined in Section 2.03(a). 
 11.59 Option Notice 
 The term “Option Notice” is defined in Section 6.05(a). 
 11.60 Option Price 
 The term
“Option Price” is defined in Section 6.05(a). 
 11.61 Ordinary Cash Flow 
 The term “Ordinary Cash Flow” means the amount, if any, of all cash receipts of the Company as of any applicable determination date
(including, without limitation, any cash receipts realized from operations of the Company but excluding any cash receipts or proceeds from a Capital Event), in excess of the sum of (i) all cash disbursements (inclusive of any reimbursements and
guaranteed payments made to any Member, but exclusive of disbursements made from the proceeds of a Capital Event and distributions to the Members in their capacities as such) of the Company prior to that date, plus (ii) any reserve, determined
in the sole and absolute discretion of the Management Committee, 

  

 56 

 
for anticipated cash disbursements that will have to be made before additional cash receipts from third parties will provide the funds therefore. Ordinary
Cash Flow shall be determined and distributed no more frequently than monthly and no less frequently than on a quarterly basis or at such other times as the Management Committee determines that funds are available therefore, taking into account the
reasonable business needs of the Company. 
 11.62 Paladin 
 The term “Paladin” means PRIP 500, LCC, a Delaware limited liability company. 
 11.63 Paladin REIT 
 The term
“Paladin REIT” means Paladin Realty Income Properties, Inc., a Maryland corporation, or any successor thereto. 
 11.64
Percentage Interest 
 The term “Percentage Interest” means, with respect to each Member, the percentage set forth
opposite such Member’s name on Exhibit A attached hereto under the column labeled “Percentage Interest,” as such percentage shall be modified from time to time in accordance with this Agreement. The initial Percentage Interests
of the Members shall be as follows: 
  

				
	 Paladin:
	  	97.5	%
	 Lippert Holdings:
	  	1.5	%
	 Lippert Management:
	  	1.0	%

 11.65 Permitted Transferees 
 The term “Permitted Transferees” is defined in Section 6.02. 
 11.66 Person 
 The term
“Person” means and includes an individual, a corporation, a partnership, a limited liability company, a joint venture, a trust, an unincorporated organization and a government or any department or agency thereof, or any entity
similar to any of the foregoing. 
 11.67 Price Determination Notice 
 The term “Price Determination Notice” is defined in Section 7.03(a). 
  

 57 

 11.68 Preferred Return 
 The term “Preferred Return” means, with respect to each Member, an amount calculated like interest and accrued on the balance standing
from time to time in such Member’s Unrecovered Contribution Account at a simple interest rate equal to nine percent (9%) per annum, non-compounded, and determined on a cumulative basis. For financial and income tax reporting purposes,
neither accrual nor payment of the Preferred Return shall be an expense of the Company nor be treated as a guaranteed payment under Section 707(c) of the Code. 
 11.69 Project 
 The term
“Project” is defined in Section 1.03. 
 11.70 Project Shortfall 
 The term “Project Shortfall” means any means any and all cash required to satisfy any actual or projected financial requirements of the
Company (not including, however, payment of Unpaid Preferred Return or any other obligations of the Company to the Members), as determined by the Management Committee. 
 11.71 Property Management Agreement 
 The term “Property Management Agreement”
is defined in Section 2.12. 
 11.72 Property Manager 
 The term “Property Manager” means the Person engaged or designated by the Company from time to time to manage and operate the Project.

 11.73 Purchase Option 
 The term “Purchase Option” is defined in Section 6.05(a). 
 11.74 Purchasing Member 

 The term “Purchasing Member” is defined in Section 7.05. 
 11.75 Qualified Appraiser 
 The
term “Qualified Appraiser” means an appraiser who is not an Affiliate or Related Party of any Member and has not been an employee of any Member or any Affiliate or Related Party of the Member at any time, who is qualified to
appraise assets of the same type owned by the Company and is a member of the Appraisal Institute (or any successor association or body of comparable standing if such Institute is not then in existence), and who has held his or her certificate as an
M.A.I. or its equivalent for a period of not fewer than ten (10) years, and has been actively engaged in the appraisal of such projects immediately preceding his or her appointment under this Agreement. 
  

 58 

 11.76 Regulatory Allocations 
 The term “Regulatory Allocations” is defined in Section 4.02(f). 
 11.77 REIT 
 The term
“REIT” is defined in Section 2.02(d). 
 11.78 Removal Event 
 The term “Removal Event” is defined in Section 2.06(a). 
 11.79 Removal Notice 
 The term
“Removal Notice” is defined in Section 2.06(a). 
 11.80 Securities Act 
 The term “Securities Act” is defined in Section 10.02. 
 11.81 Seller Loan 
 The term
“Seller Loan” is defined in Section 7.08. 
 11.82 Selling Member 
 The term “Selling Member” is defined in Section 7.05 
 11.83 Tax Matters Partner 
 The
term “Tax Matters Partner” is defined in Section 9.04. 
 11.84 Threshold Return 
 The term “Threshold Return” means, with respect to each Member, aggregate cash distributions pursuant to Sections 5.01 and 5.02
which would produce a 12% IRR to such Member on all Capital Contributions made by such Member. 
 11.85 Third-Party Purchase Price

 The term “Third-Party Purchase Price” is defined in Section 7.02. 
 11.86 Transfer 
 The term
“Transfer” is defined in Section 6.01. 
  

 59 

 11.87 Treasury Regulation 
 The term “Treasury Regulation” means any proposed, temporary, or final federal income tax regulation promulgated by the United States
Department of the Treasury as heretofore and hereafter amended from time to time (or any corresponding provisions of any superseding revenue law or regulation). 
 11.88 Unanimous Written Consent 
 The term “Unanimous Written Consent” means a
written consent executed by at least one representative of each Member. 
 11.89 Unpaid Preferred Return 
 The term “Unpaid Preferred Return” means, (i) with respect to Paladin and as of any specified date, the Preferred Return accrued
through such date, decreased by the amount of money and the agreed upon net fair market value of any property distributed by the Company to Paladin pursuant to Sections 5.01(a) and 5.02(a) and (ii) with respect to each of the Lippert
Members and as of any specified date, the Preferred Return accrued through such date, decreased by the amount of money and the agreed upon net fair market value of any property distributed by the Company to such Lippert Member pursuant to
Sections 5.01(c) and 5.02(e). 
 11.90 Unrecovered Contribution Account 
 The term “Unrecovered Contribution Account” means, (i) with respect to Paladin, the amount of money or the agreed upon fair market
value of any property contributed (or deemed contributed) by Paladin to the capital of the Company pursuant to Section 3.01, Section 3.02 and Section 3.03, as the case may be (net of liabilities secured by such
contributed property that the Company is considered to assume or take subject to pursuant to Section 752 of the Code), and decreased by the amount of money and the agreed upon fair market value of any property (net of liabilities secured
by such distributed property that Paladin is considered to assume or take subject to under Section 752 of the Code) distributed by the Company to Paladin pursuant to Section 5.02(c) and (ii) with respect to each Lippert Member,
the amount of money or the agreed upon fair market value of any property contributed (or deemed contributed) by such Lippert Member to the capital of the Company pursuant to Section 3.01, Section 3.02 and
Section 3.03, as the case may be (net of liabilities secured by such contributed property that the Company is considered to assume or take subject to pursuant to Section 752 of the Code), and decreased by the amount of money
and the agreed upon fair market value of any property (net of liabilities secured by such distributed property that such Lippert Member is considered to assume or take subject to under Section 752 of the Code) distributed (or deemed
distributed) by the Company to such Lippert Member pursuant to Section 5.02(f). 
 [Signatures Commence on Next Page] 

 

 60 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective as of the day and
year first above written. 
  

							
	“Paladin”
	
	PRIP 500, LLC, a Delaware limited liability company
		
	By:	 	Paladin Realty Income Properties, L.P., a Delaware limited partnership
			
		 	By:	 	Paladin Realty Income Properties, Inc., a Maryland corporation, its general partner
				
		 		 	By:	 	 /s/ William K. Dunbar

		 		 	Name:	 	 William K. Dunbar

		 		 	Title:	 	 Chief Investment Officer

 [Signatures Continue on Next Page] 
  

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 [Signatures Continued From Previous Page] 
  

			
	“Lippert Holdings”
	
	 JTL HOLDINGS, LLC,
 a Missouri limited
liability company

		
	By:	 	 /s/ James E. Lippert

	Name:	 	 James E. Lippert

	Title:	 	 Managing Member

  

			
	“Lippert Management”
	
	 JTL ASSET MANAGEMENT, INC.,
 a
Missouri corporation

		
	By:	 	 /s/ James E. Lippert

	Name:	 	 James E. Lippert

	Title:	 	 President

  

 62

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